Public Sector Investment In Business Process Management And Why Is It Even More Important?

Digital disruptions in the private sector have been rampant long before the pandemic hit, but the public sector is still catching up with the transformative processes that enable growth and resilience in these unprecedented times. However, the pandemic has a monumental role to play in enabling various government organizations to make significant public sector investments in digital transformation, especially when it comes to business process management. The business process management market procurement research report shows that the market will experience a CAGR 7.96% growth during the next five years.

The public sector has to be more flexible to change because its services and processes are inextricably tied to what is best for citizens. There is greater pressure for governments need to implement these changes at a much faster pace, and during the pandemic, it led to more severe disruptions – which is counterproductive. Moreover, citizens are warier about the way they interact with their governments and their access to digital government tools.

Despite, its novelty, a stronger focus on digital transformation has become more common in the public sector, and for good reason. It has allowed governments to streamline the various processes that otherwise hinder growth and shift their attention to identifying areas of improvement with respect to saving time and resources. It has also enabled the recognition of efficiencies and the creation of new growth opportunities.

Why is it important for greater public sector investment in business process management?

Improved economic performance

For starters, the public sector forms the largest portion of the national economy and is also responsible for creating more jobs. When the public sector is reformed, the improved performance across the sectors is likely to boost the overall economic performance and facilitate better delivery of services.

Better overall outcomes

The urgency for the public sector to invest in digital transformation is greater because a large majority need to update their legacy systems and make them more cost-efficient and user-friendly.

Better organization of data will make operational procedures smoother and the exchange of data between various public sectors easier. Several public services are interconnected in more ways than one, for example, healthcare and social care provisions, taxes, and the allocation of resources to prisons, probation, education, and more.

By using and distributing the data strategically and with the right amount of governance, the responsible parties can ensure better outcomes that favor the key beneficiaries.

Improving long-term impact

While an increased revenue and lower costs are some of the outstanding benefits of business process management via digital transformation, the real benefits are intangible. The long-term impact of integrating digital processes allows public organizations to become more agile, and adapt to changes quickly.

It presents the stakeholders with tools to collaborate more effectively and speed up the decision-making process. It also ensures the processes are more dynamic and receptive to change so when the government needs to take swift action to respond to the new information coming in, such as during the pandemic, it can do so quickly.

What are the points of resistance to digital transformation?

Any organization is resistant to change, be it in the private sector or the public sector. It’s common for officials to stay married to old practices for the sake of tradition, or express concerns for the agility and adaptability of measures across all organizations. Most governments are hesitant when it comes to adopting technological changes because they fear that such initiatives substitute manpower, and put their employees’ jobs at risk.  

However, one of the most misunderstood aspects of digital transformation is that technology does not replace people but allows them to realize its potential. It is the people who devise the systems and the processes using the data.

When integrating digital transformation in the public sector, it is essential to consult and train the users so they know how to support the technology. It’s important to get everyone on board to create a widely supported network.

The next big point of resistance is with incentivizing data sharing so that datasets are easily discoverable by more than one organization. Better privacy and security technology that protects valuable data address ethical limitations of data sharing, without overcomplicating the process. Finding the right digital transformation technology partner— one with ample experience –makes it easier for implementing better practices.

Another major hindrance for public sector investment in digital transformation stems from concerns about its cost-effectiveness and whether it will be easier for new users. The cost-benefit analysis of implementing thoughtful technological processes within the organization has shown positive results in the private sector. With sufficient resources and consistent procedures, the public sector can achieve the same results. There is overwhelming research that shows that public sector organizations have had a more positive impact as compared to the private sector after investing in business process management.

How to ensure successful digital transformation in the public sector?

The key ingredients for successful business process management include identifying a process owner who ensures timely implementation of initiatives. Other indicators include a solid governance structure, visible leadership, and custom process methodology appropriate for the program. Business process management that uses the right digital transformation practices benefits the public sphere by aligning the policies with strategies that can be easily executed. It leads to better transparency, greater accountability, and quality of services, and equips organizations to respond to changes in policy and unprecedented events swiftly.

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