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Click to edit Master title style Cambridge Judge Business School Dr Mark Thompson Senior Lecturer in Information Systems, Cambridge Judge Business School Strategy Director, Methods Group techUK Public Services 2030 Conference: 4 March 2015 What next for public services: evolution or revolution?

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Every revolution needs leaders

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but revolutions are fundamentally about PEOPLE!

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Click to edit Master title style GCLoud Shared service centres, Crown Hosting Service, PSN, Verify, Desktop Services, Open Standards Hub

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GDS 2.0

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https://github.com/alphagov/government-service-design- manual/blob/66b94919f1f33089eb3519a52955a5092823a41f/service- manual/technology/government-as-a-platform.md)

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Revisionism at GDS

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The ideas of the ruling class are in every epoch the ruling ideas, i.e., the class which is the ruling material force of society, is at the same time its ruling intellectual force. The class which has the means of material production at its disposal, has control at the same time over the means of mental production, so that thereby, generally speaking, the ideas of those who lack the means of mental production are subject to it. (Marx and Engels [1846] 1970, 64) False consciousness

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Click to edit Master title style A continued focus on the market

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Click to edit Master title style Debt and demography: we have no choice March 2012: $43 trillion Western government bonds in issue; $11 trillion in 2001 Old-age dependency ratio (>65s as proportion of 20-64s) set to rise from 28% to 58% by 2060 The state is still stuck in the era of vertical integration The internet has revolutionized everything that it has touched, from the newspaper business to retail. It would be odd if it did not also revolutionize the state Championing the cause of better management should be completely apolitical 2014, pp 15-20

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x

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Click to edit Master title style Digital politics Public sector Private sector

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Click to edit Master title style Digital politics Public sector Private sector Corporate beneficiaries: Managers, back office, Control apparatus Corporate beneficiaries: Managers, back office, Control apparatus Low-paid, demoralised workers Low-paid, demoralised workers Recipients of services

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Click to edit Master title style Recipients of services Providers of services Corporate beneficiaries: Managers, back office, Control apparatus Digital politics

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Click to edit Master title style De-verticalization The global economy is in the midst of a major business-process revolution as significant as the one that occurred a century ago. As a result of a substantial decline in interaction costs, the new revolution is leading to the widespread de-verticalization of corporate business structures. De-verticalization is the process of separating functions and services from a vertically integrated business. Companies are undergoing this change because they can operate more efficiently and achieve better results by relying on partners to perform certain functions, rather than by maintaining control of these processes themselves. As de-verticalization unfolds in a given industry, supply-chain partners focused on particular aspects of the value chain emerge. Frequently, these partners develop greater economies of scale and superior skill than their in-house counterparts. The development of these partners reduces redundancy of operations in an industry and lowers the barriers to entry. Raskin & Mellquist (2005): The New Industrial Revolution: De-verticalization on a global scale. Research on Strategic Change, August.

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Click to edit Master title style De-verticalization and commoditisation As organisations encourage deverticalisation to develop: more fulfillment partners emerge to seize the new business opportunity. Competition among fulfillment partners forces them to improve their skills even further; often, they become more skilled in their own domain than integrated players. Eventually, however, competition also tends to force down prices and lead to abundant capacity. Therefore, once the majority of the industry adopts a deverticalized operating model, pricing often falls to commodity-like levels. Raskin & Mellquist (2005): The New Industrial Revolution: De-verticalization on a global scale. Research on Strategic Change, August.

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Click to edit Master title style Stuckredundantindustrial agefailed To this day, most agencies continue to self-serve for most administrative services. Redundant shadow staffs remain scattered throughout most agencies. Inefficient legacy systems continue to operate despite faster, better, and cheaper shared service or cloud computing alternatives. Most government shared services currently operating are under-used and under-performing relative to the state-of-the-art in other sectors. The government remains stuck in an obsolete, industrial age organizational model with vast redundancies and inefficiencies. It has flat-out failed to transform with the times into a lean, high performance enterprise suitable for 21st century challenges. J. Marshall, Fall 2010

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Click to edit Master title style Agencies must be forced Enforcing acceptance of standardized systems throughout the government would be one of the toughest, but most critical challenges determined leaders must face. Like the tax code, government administration is rife with complexitythe byproduct of over-designed, agency-unique systems. Agencies must be forced to accept plain vanilla and give up fancy flavors with marginal business value. Moving agencies onto common platforms is fundamental to the streamlining and consolidation necessary to unlock potential savings. It would also open up the government like never before to transparency and performance management improvements. J. Marshall, Fall 2010

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So before we cut the code

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Click to edit Master title style Taking consumption seriously Share common capabilities Reduce number of technologies Consume technology over the internet Reduce costs Use interoperable & scalable technologies Allow any device, any where access Iterative development of apps for services Single view of a customer Share data & MI Collaborate on processes across the Council

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Click to edit Master title style Taking consumption seriously Core capabilities: Online booking Information publishing Automated notifications Case management Service catalogue Dashboards Application forms Citizen portal Document creation SLA management Reports Audit history Customer self-service Open data publishing Workflow management Inspections/assessments Performance management Integration

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So heres some revolutionary talk

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In the context of > GDP Demographics Rising citizen expectations Digital behaviours Spread of digital business models Need for interoperability False tax or cuts electoral choice

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Im thinking What else could we do with

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35bn Each year?

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1/ Renewal of multi-year outsourced contracts constitutes a failure of public leadership 2/ A national debate is needed about wholesale business model change of public services 3/ The analogue state is finished. This discussion is MISSING from the 2015 election

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