Digital public services and innovation Jane Morgan, Scottish Government

Objectives for today Offer a view of how digital enablement of public services is part of innovation system and can contribute to both societal wellbeing and economic growth Discuss how we ensure that businesses, including SMEs in our areas , are well placed to act as suppliers for transformation of public services Discuss how we can engage effectively with business on industry trends so as to future proof service delivery and make services as cost effective as possible

Smart specialisation as a context for digital growth Smart Specialisation is embedded in Scotland’s approach to economic growth Government Economic Strategy (2007 and refreshed 2011) addresses need for innovation and identifies priority economic sectors: life sciences, energy, financial services, creative industries (including digital) food and drink, sustainable tourism and universities enabling technologies eg digital Scotland’s Digital Future published in 2011 is aligned with EU Digital Agenda. Innovation and Entrepreneurship Framework- 2013

Scotland’s Digital Future Digital Connectivity Public Service Delivery Scotland is well positioned to take full advantage of all the opportunities of the digital age. Digital Participation Digital Economy Scotland’s digital future sets out 4 key strands of work where Government has a key role in delivering change. BROADBAND CONNECTIVITY INFRASTRUCTURE IS ENABLING INFRASTRUCTURE FOR OTHER THREE STRANDS OF DIGITAL STRATEGY AND KEY MINISTERIAL PRIORITY – HAVE TO GET THIS RIGHT IF WE ARE TO DELIVER AMBITION OF NEXT GENERATION BROADBAND INFRASTRUCTURE TO ALL BY 2020 WITH SIGNIFICANT PROGRESS BY 2015. HUGE EXPECTATION NOW AMONGST ALL AGE AND SOCIAL GROUPS THAT IT SHOULD BE POSSIBLE TO HAVE FAST, RELIABLE ACCESS TO THE INTERNET WHETHER YOU ARE ON THE MOVE OR IN YOUR HOME OR PLACE OF BUSINESS. DELIVERING ON THIS AMBITION AND EXPECTATION IS GOING TO BE A BIG ASK IN A TIME OF CONSTRAINED RESOURCES AND WE ARE GOING TO HAVE TO CONSIDER NEW AND INNOVATIVE WAYS OF DELIVERING AND TO FORGE NEW RELATIONSHIPS WITH INDUSTRY TO ENSURE THAT EVERYONE GETS A FAIR RETURN ON INVESTMENT. AS PUBLIC EXPECTATION OF AVAILABILITY OF BROADBAND ACCESS INCREASES SO TOO DOES THE DEMAND FOR ACCESS TO PUBLIC SERVICES ON-LINE. GOVERNMENT COMMITTED TO DELIVERING INCREASING PROPORTION OF SERVICES ON –LINE AS THERE IS THESE CAN BE DELIVERED MORE CHEAPLY AND CAN IMPROVE OUTCOMES. (ESTIMATED AVERAGE COST OF ON-LINE TRANSACTION 8P COMPARED WITH £10.53 FOR FACE-TO-FACE, £3.39 FOR TELEPHONE AND £12.10 FOR POSTAL). SOME POLICY CHOICES TO BE MADE AROUND DIGITAL PUBLIC SERVICES (DIGITAL BY DEFAULT – SHITTING OFF OTHER CHANNELS) WHICH COULD BE A LEVER TO DRIVE UP DIGITAL PARTICIPATION AMONGST GROUPS WHERE THERE IS NO INCENTIVE OR INCLINATION TO GO DIGITAL. SIMILARLY THE MORE PEOPLE ARE ACTIVE ON-LINE THE MORE WE STIMULATE GROWTH IN THE DIGITAL ECONOMY THROUGH INCREASING DEMAND FOR SERVICES AND ACCESS TO INFRASTRUCTURE. WE KNOW THAT DIGITAL PARTICIPATION IS GOOD FOR PEOPLE BUT THAT TO PARTICIPATE THEY NEED THE SKILLS, THE NEED THE INCENTIVE AND THEY NEED THE ACCESS. NEED TO REACH OUT TO PEOPLE ACROSS SCOTLAND TO ENSURE THAT WE ARE MEETING THIS NEED. WILL REQUIRE DEDICATED ACTION ACROSS ALL DIRECTORATES NOT JUST A PARTICIPATION CHALLENGE WITH THE GENERAL POPULATION BUT WITH INDUSTRY TOO. A RECENT REPORT PUBLISHED BY SG SURVEYED 1,000 SCOTTISH SMES AND FOUND THAT 25% OF THOSE BUSINESSES SURVEYED DO NOT USE THE INTERNET AT ALL, WITH MOST OF THIS 25% SHOWING NO INTENTION OF DOINGS SO IN THE NEXT 3 YEARS BELIEVING THE INTERNET TO HAVE LITTLE RELEVANCE TO THEIR BUSINESS. INTERNET USED BY 75% OF SCOTTISH SMES IN 2010 BUT ONLY FOR BASIC EMAIL AND WEB SEARCHING. ENSURING THAT BUSINESSES ACROSS SCOTLAND HAVE THE SKILLS AND ASPIRATION TO ENABLE THEM TO INNOVATE AND COMPETE IN THE GLOBAL DIGITAL ECONOMY IS A KEY COMMITMENT WITHIN SCOTLAND’S DIGITAL FUTURE. UPLIFTS IN PARTICIPATION FROM CITIZENS AND BUSINESSES WILL DRIVE GREATER DEMAND FOR INFRASTRUCTURE AND SUPPORT WIDER ROLL OUT OF BROADBAND INFRASTRUCTURE. SELF SUPPORTING DIGITAL ECO-SYSTEM UNDERPINNING ALL OF THIS IS OUR OWN CAPACITY TO DELIVER, AND TO DRIVE CHANGE WITHIN OUR OWN DIRECTORATE , ACROSS THE SCOTTISH GOVERNMENT AND PUBLIC SECTOR AS WELL AS WITHIN SCOTLAND

EU and Scottish Digital Frameworks EU Digital Agenda Pillars Scotland’s Strategic Actions Digital Single Market Interoperability & Standards Trust & Security Fast and Ultra-fast Internet Access Research & Innovation Enhancing digital literacy, skills and inclusion ICT enabled benefits for EU society Delivery of Public Services Growing a Digital Economy Digital Participation Building Digital Connectivity for the Future

Digital economy- Scotland Digital sector strengths and opportunities: Digital health and care, Sensor systems, Smart mobility, Big data analytics Being exploited through new publicly funded Innovation centres bringing together industry and researchers- includes centre on Data Science Digital as enabler: Strategy identifies need to increase support for Scottish companies of all sizes to use digital technology effectively And need to strengthen skills base: Skills Development Scotland plan for sector to be published shortly Why is it important? The S3 concept relies on the strengths of a region and its capability to build unique competitive advantages. This synthesis exercise will make it easier for your peers at the workshop to focus on the main features and critical issues faced by your region, both in terms of the current and future situation. This does not mean one should ignore other influencing elements or factors. It only implies that one has to make an effort to identify the most important conditions that influence your region’s competitive performance. It is equally important to specify the competitive advantages/challenges of the region and the process you went through to identify these elements. Please note that the focus here is on the process you went through with all its successes and mistakes. Other regions at the workshop will be there to learn from your experiences. See RIS3 Guide: Part 3 Annex 1 (Step 1) Please specify the following elements (as identified in your region’s policy/strategy): Strengths and main competitive advantages Weaknesses and main current challenges Opportunities for future regional development Threats the region is facing

Public Services Public sector is part of innovation system- with business, universities and citizens – quadruple helix Digital enablement of public services: meets user needs through engagement and personalisation = higher quality services enables savings through “channel shift” = release resources for other public services or wider government spend creates demand for knowledge, goods and services from other parts of innovation system creates flows of knowledge between parts of system includes making more data open and available for re-use by business = new products and services

Delivery of Public Services Four key strands to Scottish strategy User focus (citizen and business): delivery on-line; easy access through mygovscot portal; common approach to sign-in/passwords to make access simple Effective management of data: using data to target services while respecting privacy; making non-personal data open so others can use it A skilled and empowered workforce: specialist skills and skills of wider workforce including leadership for digital world Collaboration and value for money: to save money and provide interoperability: common standards; collaborative procurement; re-use before buy before build – including data hosting

Digital Future: Governance A Cabinet sub-committee oversees overall direction and delivery. Each strand of strategy has its own formal governance depending on the nature of objectives and deliverables. For public services: Strategy developed with and for the public sector as a whole Strategy Assurance Board now oversees implementation with cross sector (eg health, local government, universities and colleges) and industry membership Ensures alignment of national level actions and action at sector level Each sector has its own strategy, aligned with national strategy, and governance board An Industry Board provides advice from the ICT sector linking to a wider Industry Forum Why is it important? A strategy can be successfully implemented only if stakeholders share the ownership. In other words, achievement of the goals of the digital growth strategy will effectively require that all stakeholders share the same vision and are willing to commit their time and efforts. This requires a clear leadership/coordination and a driving force that involves the stakeholders and allows for creative processes. How to achieve this? Undertaking a wide consultation of all regional stakeholders (including mainly regional government/regional agencies, ICT companies, research institutes, universities but also other/new stakeholders with the potential for innovative contributions (relevant citizen and consumer groups as well as business associations, and the national regulatory agencies for telecommunications). To do this, it is worth considering the creation of dedicated interest groups and the publication of a road map, the submission of surveys and papers to open consultations, the organisation of workshops, etc. The digital growth strategy needs collective effort by public and private bodies to adapt a lot of framework conditions as well as public support to match the needs of enterprises. Please see the RIS3 Guide: Annex 1 (Step 2)

Implementation and budget Public services National initiatives funded from Scottish Government budget: Portal, verification and sign-in Some national initiatives involve putting procurement frameworks in place that support collaboration and reduced spend, but not invovle central spend Many national actions are about agreeing policy and objectives with implementation by others Sector initiatives funded from organisation budgets Complementary initiatives have dedicated and substantial budgets: eg Broadband Potential role of Structural funds to enhance existing approach Businesses’ digital capacity and skills Smart city management Connectivity in remote rural areas Objectives should be somewhere between the vision – which is too generic, and outputs (e.g. to create more broadband infrastructure in the region)

How we ensure that businesses, including SMEs in our region, are well placed to act as suppliers In Scotland we Have dialogue with industry bodies on policy and delivery approach National Economic Forum Industry Board for Digital Public Services Board links to wider ICT Industry Forum Ensure procurement approach is SME friendly; measure results What makes these work? Other approaches?

How we engage effectively with business on industry trends so as to future proof service delivery and make services as cost effective as possible In Scotland we Improve digital awareness of public sector leaders- Digital Champions development programme Ask Industry body to provide technology briefings for public sector Use expertise of research and consultancy companies who focus on digital Dialogue with individual companies Other approaches?

How we will promote “data innovation” - businesses using public sector data to develop new products and services In Scotland we: Need to agree and implement an open data policy; agree priority data sets for release and for quality improvement Are exploiting and building on analytical capacity in universities Will bring together those (public and private sector) who own data and need solutions with those (business and universities) who have analytical capacity Promote a “team Scotland” approach – not separate projects Your views on this?

Looking beyond our boundaries Dialogue with UK Government Digital Service - gov.uk and their plans for identity assurance International review of on-line services- Estonia,…. Digital health: part of European partnership on Active and Healthy Living Part of S3 Vanguard initiative Does the strategy take into account the competitive position of the country/region and the potential areas of specialisation with regard to other countries/regions in the EU and beyond, as well as its position within global value chains?   Are sufficient efforts being made in the analysis to avoid imitation, duplication and fragmentation in identifying regional specialisations, in particular with regard to what is happening in neighbouring regions? See RIS3 Guide: Part 3 Annex 1 (Step 1)

Measuring progress Developing overarching framework for Digital Future Measurement and Benefits Framework for Digital Public Services: four benefit quadrants with measures on each Does the strategy foresee the measurement of progress in the relevant areas which are aligned with existing relevant sectoral EU, national or regional DAE-relevant priorities? Does it entail measurements of the progress of ICT use and its impact (e.g. productivity gains) at national or regional level? Does it use the same indicators as those used by the DAE Scoreboard? Does it contain additional country/region specific indicators to track progress of the implementation measures? If the strategy is part of a national or regional RIS3, its monitoring should be carried out as part of the monitoring of this framework. Why is it important? A strategy is not only an obligation of means, it also is about obligation of results which can be measured through output and result indicators. How to achieve this? Draft a roadmap with a list of concrete deliverables and milestones as well as the bodies responsible for the implementation of the foreseen actions. Put in place a sound monitoring system and a process of continuous policy learning and adaptation. See RIS3 Guide: Part 3 Annex 1 (step 6)

Summary and next steps High profile in Scotland for public service reform and role of digital enablement of that Good contact with industry but needs to continue and follow through to benefit economy and public services Awareness of potential of data innovation is growing but more to be done to achieve collaboration behind a Scottish strategy and plan Next steps: Continue to implement digital public service strategy Work with stakeholders (business, universities, public sector and citizens) on Data Management Strategy Can this strategy address digital growth to stimulate affordable, good quality and interoperable ICT-enabled private and public services and increase uptake by citizens, including vulnerable groups, businesses and public administrations including cross border initiatives?

For more information www.scotland.gov.uk/Topics/Economy/digital/ digitalservices