How much is government using and benefiting from ‘digital’, such as social, mobile, analytics and Big Data?

To assess the impact of digital, Capgemini Consulting and the MIT Center for Digital Business carried out a three-year research program with over 400 organizations worldwide. This reveals that those organizations enabled by digital technologies demonstrate significantly better financial performance than their peers. We’ve labelled these digitally mature organizations the ‘digirati’.

There are lessons to be learned from these digirati, particularly for tax and welfare agencies where customer-interaction is a significant driver.

Our research shows that some firms are using digital to open new opportunities for engaging directly with consumers. In turn, the digital tax or welfare agency will be simpler and more convenient for the customer, offering relevant timely services, designed around life event needs.

In retail, luxury brand Burberry has used digital as a transformative tool to unify back-end processes with integrated data across the globe. For the digital tax and welfare agency, taking a different approach to data will be a similar game-changer. As an example, by leveraging new data sources and analytical techniques and matching tax, welfare benefit and private sector data on fraud, the digital agency will be better equipped to tackle non-compliance.

We’re already seeing a level of digital maturity in a number of government agencies. In the Netherlands, UWV wants to move towards at least 90% of all unemployment claimants using digital channels for benefit applications or changes of circumstance. This is just one example of the way digital is having (and will have) profound implications for the way in which governments and citizens interact.

I’d like to hear your thoughts on this – or learn about any other examples of best practice – so please get in touch.