Digital Transformation in Towns
Isobel Vernon-Avery
During the Towns Fund programme, there has been a focus on digital technologies within Towns, for example through connectivity projects. As Towns deliver projects, they need to address internal and inter-organisational digital change. This blog discusses digital transformation within local authorities to better match resources to local need.
Digital transformation is the integration of digital technology into all areas of a town’s activities, fundamentally changing operations and delivery. There is also a need for a cultural change to challenge business-as-usual assumptions, and support experimentation, to better achieve human outcomes such as care, safety and sustainability.
Digital transformation has been gathering momentum globally, accelerating dramatically during the pandemic. It is no longer a choice for local authorities, it is now an imperative for survival in the increasingly hybrid physical-digital world. Towns need to navigate rapid change, using digital technologies to process complexity and uncertainty post pandemic, particularly in the face of climate change effects. There is a need for investment in how we, as people, significantly change our behaviour together to create sustainable, people-centred solutions whilst simultaneously plotting a path to digital maturity and appropriate digital platforms to deliver local services.
We need digital to support other areas of transformation, such as net zero. For example, Greenwich set ambitious targets for the next decade, including reducing car use by 45%.
The potential value towns can create from digital transformation is massive – research by the Centre for Economics and Business Research shows that continuing investment in digital within local and central UK government could add £32 billion to the national economy per year through efficiency savings and improved value for people by focusing resources more appropriately on their needs.
Through the Towns Fund Delivery Partner work to date, we have seen several critical areas for digital transformation within towns.
1. There is an imperative for overall strategic vision and commitment to transformation (digital and organisational) whilst delivering value creating projects to time and budget
Local authorities will need to continue their clear strategic visions as to the type of community they envisage in the future. The path to digital maturity is in service delivery and organisational behaviour to meet a local vision. This requires effective governance that directs resources to the changes required, in collaboration with stakeholders.
A study of social care in Sweden indicated that in a town of 90,000 residents, yearly savings of €2.5 million were possible when 10% of home care recipients used digital services.
2. There is a shift to user-centred design in the delivery of town services
Towns are moving from traditional silos towards integrated, citizen/stakeholder led design and delivery, enabled by open data platforms and policies. Figure 1 sets out a new integrated operating model for towns and cities, with the citizen/stakeholder as the key focus.
Figure 1: Integrated Operating Model (source: Chris Cooper, Global Future Cities)
During the pandemic, chatbots took pressure off customer service teams by dealing with enquiry surges. It enabled those who needed personalised, human support to get the services required.
3. Data and trust are fundamental for driving insight-led change
Data is foundational to digital transformation, however, concerns over security and trust have been a major barrier to digital adoption. Trust is vital when developing new digital services, where data sharing is required. Local authorities must do as much as possible to build trust and create interoperable, open, secure data ecosystems.
4. Digital and innovation capacity building (skills and awareness) internally to local authorities, and in the wider town ecosystems, is vital
Digital is now a core leadership competency; it is not just the responsibility of the IT Department or the Chief Technology Officer. Councils need people from a range of professional backgrounds with digital skills who can inspire others. Everyone must become a digital champion as part of creating a more conducive environment for digital transformation. It requires significant effort and will pose many questions about openness, experimentation, innovation and risk.
We hope that you are able to incorporate some of the ideas raised here as your town organisation and community digitally develop to deliver effective local services within available resources.