Public sector efficiency: With a new government in place, many people in the UK will be hoping that the public sector can be elevated into the technological 21st Century when it comes to modern systems investment
Currently, institutions like the NHS, HMRC and DWP are at least a generation behind when it comes to using and benefiting from technology.
Across all other sectors, technology is being used to improve efficiency, meet customer expectations and boost productivity, but according to figures released by the Office for National Statistics, public service productivity was estimated to be 0.6% lower in Q1 2024 than the same quarter a year ago, and 6.4% below its pre-COVID peak in Q4 2019.
The failure to invest enough in digital transformation solutions has significantly impacted the quality of citizen services, management of ever-growing customer inquiries and the efficiency of procurement processes. In the NHS, a lack of modern equipment and technology means patient care is being put at risk.
Barriers to modernisation: Public sector efficiency
At the core of the issue lies the continuous prevalence of legacy systems. Many government departments are still relying on outdated IT infrastructure, making integration with modern technologies both challenging and costly. This problem has been exacerbated by persistent budget constraints, which have often forced decision-makers to prioritise maintaining existing systems over investing in new technologies.
A critical shortage of digital expertise within the public sector compounds these challenges. The lack of in-house skills makes it difficult to implement and manage advanced technologies effectively, creating a cycle of technological stagnation.
Of course, underlining all this, bureaucracy and complex organisational structures across public services have contributed to the slow pace of digital transformation. Ironically, the lengthy procurement processes and multi-layered decision-making hierarchies that are significantly delaying progress could be solved so easily by new technologies. The benefits are clear but the steps towards adoption are proving steep to climb.
Managing data at scale
One area of our public services that is in dire need of technology investment is improving data management. Currently, too much information is siloed, making it challenging to derive useful insights that could drive improvements in efficiency and productivity. Privacy concerns and strict data protection regulations can add layers of complexity to technology projects which can be off-putting for IT managers, but without appropriate data management, there is an even greater risk that departments will fail to meet regulatory requirements.
Of course, as well as information being siloed, one of the biggest difficulties for the public sector is managing the sheer scale of data. As well as administrative documents, official texts, public surveys, reports, regional, personal and company data, real-time data, such as the availability of beds in hospitals, staff rosters, financial information related to benefits and state pensions, and even number plate recognition systems need to be constantly updated to remain relevant.
Airtel – taking a leaf out of another book
The time has come for the public sector to look to other markets to implement the lessons learnt. A good example of how technology can consolidate data and deliver insights that turn services around can be found in India’s leading telecom provider, Airtel. As a global telecommunications organisation that offers a range of services including Prepaid, Postpaid, Broadband, DTH, Payment banks and business solutions, the scale was an equally huge challenge.
In Airtel’s case, with 2.3 billion customers in India alone, there was a need to process between 100 and 200 billion records every day. Like our own public sector services, they needed to leave behind their dated technology approach, and they chose to develop an in-house common platform that could unify their siloed business systems.
Airtel began using a single repository to look at stored data and real-time information and apply AI and machine learning that could anticipate the next customer interaction. This could be a complaint or sales enquiry and was also irrespective of which communications channel that customer chose to use, however, it enabled Airtel to deliver an appropriate, personalised experience. Aerospike provides a common database layer that sits across Airtel’s technology to support high transaction rates and a data store to process 350 million customer records. Everything is in real-time, and the organisation can automate the analysis of trillions of records to understand customer activity and meet their needs.
Cut complexity and costs.
Airtel was initially daunted by the task it faced, but quickly found that its modernisation programme reaped rewards:
- Daily calls; down 35%
- Average Handling Time; down 14%
- Repeat calls; down 10%
As public sector organisations and departments implement real-time data platforms, they will also find that they can instantly reduce their server footprint, cutting costs by 50-70% and lowering carbon emissions as a result. Reducing hardware also means reducing complexity, allowing team members to work on more valuable projects.
The human element is an important part of the digital transformation process. Traditional organisational cultures within the public sector can be resistant to change, creating an environment where transformation efforts struggle to gain traction. This cultural inertia can be one of the most challenging barriers to overcome, but if teams can immediately see an advantage in allowing technology to assist them, there will be a greater degree of acceptance.
Addressing these interconnected challenges is crucial for the UK public sector to harness the benefits of real-time databases. Successfully navigating these obstacles could lead to significant improvements in citizen services, streamlined operations, and enhanced overall efficiency in government functions. The path forward requires a comprehensive strategy that addresses technological, financial, cultural, and skills-related barriers simultaneously.
By Martin James, Vice President EMEA at Aerospike
