3 Examples of Public Sector Digital Transformation
There is a strong global interest in digital transformation worldwide. Many countries and institutions are selecting digital transformation metrics to measure the extent of their digital transformation efforts. Digital transformation has many societal implications, including the convergence of industries, the emergence of new industries, and the structural transformation of existing industries.
Many private companies have already made digital transformation a top priority and are actively implementing it. The importance of digital transformation in government and public institutions is being emphasized, and as a result, digital transformation initiatives in public organizations are gradually being implemented. Given the diverse areas involved in digital transformation, it cannot be achieved solely through the efforts of private companies. Therefore, it is crucial for countries to keep up with the pace of change at a national level.
Currently, the government aims to implement a digital platform government by introducing digital technology into the public sector to foster innovation. To implement a digital platform government, swift digital transformation within the government and public institutions is necessary. Indeed, the Ministry of Administration and Security has announced the full integration of 19,000 information systems operated by government agencies and public institutions into the cloud by 2025. This change is expected to enable rapid and flexible provision of government services for various administrative needs.
Digital transformation refers to the process of fundamentally changing organizations by applying digital technologies across all business areas. It is also known as DT or DX. Many companies have already realized the importance of digital transformation and are trying to change their business by utilizing core digital technologies and data such as cloud, artificial intelligence, IoT, and blockchain. Indeed, in today’s corporate management, digitalization and data have become indispensable metrics. These metrics are being utilized to drive substantial digital transformation across various sectors such as the service industry, manufacturing, and public institutions.
So why is it so important for public organizations to adopt digital transformation quickly? Here are three reasons:
The first reason why digital transformation of public institutions is important is that it enables faster and more organic work. Korea has advocated for a digital government and has been digitizing a significant amount of administrative work data into digital formats for some time now. If these manual tasks are carried out using digital technology, work efficiency can be greatly improved. Additionally, public institutions often need to collaborate seamlessly to achieve shared objectives across multiple organizations. If DX is adopted in the process of work sharing, such as the introduction of the cloud, it is possible to work quickly and flexibly even in urgent situations. During the process of sharing tasks, the implementation of Digital Transformation (DX), including cloud adoption, enables swift and flexible operations even in urgent situations. Moreover, improving citizens’ accessibility to public data creates a foundation for innovative services, allowing valuable utilization and fostering the birth of groundbreaking services.
The next reason why digital transformation of public institutions is important is that it can enhance the transparency of information. By implementing Digital Transformation (DX) through initiatives like cloud adoption, governments, and public institutions can securely store massive amounts of public data in the cloud. Objective data analysis ensures transparency in administrative processes, guaranteeing the integrity of data and enhancing governance. Transparency in information is directly linked to fairness. Due to its direct connection to fairness, this kind of fairness is a crucial element that public institutions must possess. Therefore, the digital transformation of public institutions is even more important than that of private enterprises. Moreover, securely establishing digital infrastructure is a fundamental component of digital technology. By building a national-level digital infrastructure, transparently providing data to various businesses, and utilizing it, the economic and social utility value of public data can be significantly enhanced.
Public sector digital technology adoption and digital government is also effective in reducing costs. Introducing digital transformation allows businesses to automate tasks that were previously done manually, leading to time and cost savings. In addition, the cloud can help you store and secure documents at a fraction of the cost of the management costs that used to be used to store, process, and secure large amounts of documents. Therefore, digital transformation in public institutions is extremely important for society as a whole and can be considered not just an option but a necessity.
Let’s take a look at some real-world examples of public sector digital transformation.
Digital transformation in public institutions is already taking place in many countries around the world. The U. S. Department of Transportation is also making significant strides toward a digital government by leveraging digital technology. Unlike Korea, each state in the U. S. operates on its own, which means that information is managed separately. That’s why it was previously difficult to organize dozens of projects with contractors and municipalities in distant regions. It was also difficult to provide and share the information that everyone needed. However, recently, the Federal Highway Administration has introduced a new model called “Every Day Counts,” a nationwide program, that has been driving the digital transformation efforts of the U. S. Department of Transportation. This serves as a great example of improving agility in tasks, as mentioned earlier.
‘Every Day Counts’ has established a digital transportation platform that allows each state and local area to implement suitable transportation processes. With the adoption of the cloud, all states can integrate and share transportation-related data to improve traffic conditions and efficiently manage roads.
There are examples in South Korean public institutions where efficiency has been increased through digital transformation. In 2019, the Ministry of Administration and Security showcased a digital government initiative, enabling one-stop processing of tasks such as information requests, reporting, and employee consultations at the National Pension Service. This initiative resulted in a reduction of 28 minutes per person in counter service time and an approximate cost saving of 2,000 Korean Won on average per transaction. In 2021, cloud technology was introduced, and digital counters were installed in various locations, allowing the use of electronic forms instead of paper documents. Touchscreen interfaces were also implemented for customers, enabling quick and easy issuance of various certificates.
As a result, the annual cost of storing and processing paper documents was reduced by approximately 2. 4 billion Korean Won on average. Additionally, the time taken for visitors to fill out declaration forms at the counters was shortened by 4 minutes per transaction. These savings can be used for other public benefits, making the digital transformation of public institutions essential.
The Forest Service has recently utilized digital technology to manage and forecast forests, providing a great example of public sector digital transformation. Efforts are being made not only to utilize digital technology within business processes but also to go beyond internal digital transformation, leading to changes in the business model. These efforts aim to connect with the digital ecosystem.
Especially, the Korea Forest Service is making multidimensional efforts to introduce digital transformation in forest management. They are utilizing technologies such as big data, AI, robotic process automation, digital twins, and cloud computing to integrate digital transformation into various aspects of their operations. For example, they are utilizing drones to efficiently collect data from deep forests, which is then used for landslide prevention efforts. Furthermore, they are showcasing examples where technology and forestry are integrated, such as introducing metaverse platforms. These initiatives aim to raise awareness about the importance of forests and encourage people to participate in environmental conservation efforts. Through these efforts, we can expect efficient and effective forest conservation activities in the future.
So far, we have examined the reasons why digital transformation is crucial in digital government and public institutions, along with three examples of digital transformation in public institutions. Digital transformation is no longer an option, but a necessity! However, digital transformation inherently leads to changes in a company’s overall management structure and workflow. Therefore, sufficient education and training are necessary during the adoption and implementation process to effectively navigate these changes. Moreover, it is essential that employees across all departments within a company, not just a few select departments, understand the necessity of digital transformation. There should be seamless information sharing among departments, enabling the application of relevant technologies throughout the organization. Furthermore, digital transformation education for employees should not be a one-time event but an ongoing process. To achieve the ultimate goal of a digital government, all employees need to receive systematic and continuous digital transformation training.
If you recognize the importance of digital transformation and feel the need for suitable DX education for your company, consider exploring Elice, which has successfully facilitated DX in numerous businesses and public institutions through systematic training programs.
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