Digital Transformation in the Public and Private Sectors
The processes of digital transformation in the private and public sectors are largely similar and consist in the gradual transition of digital technologies from the tool to the main driver of strategic development. However, unlike private companies, the digitalization of public sector must meet a number of key conditions:
- Universal nature of public services
- Wider range of applications
- More criteria for assessing the success of digitalization
- Higher requirements for reliability and safety
Moreover, the process of digital transformation of public authorities almost always faces a number of the most characteristic challenges:
- Limited budgets
- Strict
- cybersecurity
- Impossibility of successful digitalization
- "generation gap"
Thus, the implementation of key components of the digital transformation of state structures strongly depends on the political will of the leadership, expressed in national strategic and program documents.
The private sector markets and tailors its products and services to the specific needs of different customer groups. In turn, public services are intended for use by all citizens without exception and must meet the needs of the entire population, as well as be user-friendly.
Key Components of the Government Transition to Digital Technologies
The government is able to compensate the lack of competition as a driver of innovation, by the ability to independently set standards for reforms. For example, the World Bank estimates that in large emerging economies, the digital transformation of the public sector far outpaces that of the private sector.