Navigating the Public Sector’s digital transformation journey

Digital transformation is reshaping the public sector, offering opportunities to enhance efficiency, improve citizen services, and address complex challenges in innovative ways.

During Government Transformation Week, at a panel discussion hosted by Graham Etherington, Northern Cluster Solutions Sales Director, Kodak Alaris, leaders from the Greater London Authority (GLA), the Office for National Statistics (ONS), and the London Office for Scottish Local Government shared their experiences, challenges, and aspirations in driving transformation within their organisations.

The foundations of strategy

A successful digital transformation journey requires a clear understanding of an organisation’s current state. Without this foundation, efforts can become disjointed or misaligned with broader goals. 

Kinda Youssef Allamaa, Head of Delivery, Greater London Authority, highlighted the importance of using a maturity model as a diagnostic tool: "We’re currently conducting a digital and data maturity self-assessment to identify areas of excellence, weaknesses, and opportunities for growth. This will help us build a roadmap for our transformation strategy."

This approach enables organisations to evaluate not just technology and processes but also the culture, skills, and data management capabilities necessary to sustain meaningful change. For the GLA, this assessment is about identifying pockets of innovation that can be scaled up, while addressing gaps that hinder progress.

Peter Holroyd, Solutions Architect, Office for National Statistics, explained that maturity models also help focus resources where they are most needed: "We’ve restructured our digital services team and introduced an innovation team to explore new ways of working with emerging technologies like AI and data integration. But the transformation is ongoing - we’re not there yet."

The underlying issue is that many organisations begin their digital transformation without fully understanding the interdependencies of technology, culture, and people. By systematically assessing these elements, public sector organisations can ensure that their transformation efforts are both targeted and sustainable.

Culture as the catalyst for change

While technology often takes centre stage in digital transformation discussions, cultural transformation is the linchpin that determines success. 

Martyn Wallace, Chief Digital Officer, London Office for Scottish Local Government, articulated this clearly: "It’s not about the technology stack. It’s about hearts and minds, community, and starting with the public challenge you’re trying to solve. Transformation must be human by default and technology by design."

The resistance to change in established organisations is a significant barrier. Holroyd pointed to the difficulty in engaging senior leaders: "Cultural transformation is huge. Senior business leaders often don’t understand the nuance of what’s required. Budgets tend to follow outdated methods, and we need to break silos to create end-to-end solutions."

This challenge is amplified in environments where legacy systems and traditional hierarchies dominate. For Wallace, overcoming resistance means aligning transformation with the core mission of public service. "Nobody gets excited about AI or a server," he said, "but they do care about solving real public challenges. That’s where you start."

The panel also stressed the importance of service design. Wallace noted that understanding user needs is essential: "We use service design principles to map out the customer journey. It’s about inclusivity - ensuring services are appropriate for all users, regardless of race, gender, or disability."

The AI Opportunity and Challenge

Artificial intelligence holds immense potential to revolutionise public services, but it also introduces new complexities. Wallace framed AI as a tool for empowerment rather than displacement: "AI isn’t about taking jobs; it’s about changing jobs. It supports people in their roles, offering predictive analytics and insights that improve decision-making."

Allamaa underscored the challenge of keeping pace with rapid technological advancements: "Staying on top of rapidly changing technologies like AI, while ensuring compliance with cybersecurity standards, is a significant challenge. But the opportunities it brings to improve services are immense."

A recurring theme was the need to balance experimentation with ethical responsibility. Wallace observed: "AI can enhance efficiency, but only if we use it securely and transparently. The goal is to augment human decision-making, not to undermine trust in public services."

The broader issue here is trust - both within organisations and with the public. As AI and machine learning become more integrated into decision-making, public sector leaders must ensure that the systems they implement are explainable, fair, and aligned with citizens' expectations.

Budgets, legacy systems & skills

Public sector organisations face a trifecta of challenges: constrained budgets, outdated systems, and a shortage of skilled workers.

"We’re no longer in an era of doing more with less - we’re now doing more with nothing. This makes it difficult to plan long-term investments in technology," said Wallace, painting a stark picture of local government finances:

"Transitioning from siloed systems to a unified data platform requires rethinking security models and addressing resistance to change,” continued Holroyd, highlighting the limitations of legacy systems. “It’s transformational, but it’s also daunting."

This shift is necessary to unlock the potential of data integration, but it requires significant cultural and operational changes. 

Holroyd explained that the move to data lakes isn’t just a technical challenge; it’s a paradigm shift: "You can’t treat data lakes like a box of silos. The security models, processes, and governance all need to evolve."

On the skills front, Wallace pointed to an ageing workforce and the difficulty of attracting new talent: "How do you attract bright, young talent to local government? We need to position the public sector as a place where meaningful innovation happens."

Collaboration across organisations can amplify the impact of digital transformation. Wallace shared how Scotland has fostered a culture of shared learning: "We’ve worked with councils to create a collaborative culture. Some councils are innovating with Microsoft Dynamics for social care systems, while others are just moving from Lotus Notes. Sharing knowledge helps us maximise investments and replicate success."

Allamaa highlighted the GLA’s ‘Data for London’ initiative as a model for cross-sector collaboration: "This platform brings together data from across London to enable local government and civic organisations to collaborate for better outcomes."

The challenge is creating structures that facilitate knowledge sharing while respecting the unique needs of individual organisations. Collaboration is not just about technology; it’s about creating a shared vision and leveraging collective expertise.

Embracing change

Despite the challenges, the panellists shared an optimistic vision for the future. Wallace described the ultimate goal of digital transformation: "It’s about better outcomes - improving operations, customer service, and employee satisfaction. Public services should always be on, inclusive, and supported by the right technology."

Holroyd emphasised the importance of smarter decision-making: "We’re creating data platforms that allow predictive analytics and operational efficiencies. It’s about making better decisions, not just shuffling spreadsheets."

For Allamaa, success lies in continuous improvement: "Our aim is to create an agile, adaptable organisation that can respond to changing technologies and citizen needs."

The panel made it clear that digital transformation is a complex but necessary journey. As Wallace put it: "There will always be excuses - whether financial, cultural, or technological - but we can’t afford to stand still. Transformation requires us to embrace change, bring people along, and focus on solving real public challenges."

From maturity assessments to AI adoption and collaborative platforms, these leaders demonstrated that while the path may be difficult, the rewards of transformation - better services, greater efficiency, and wider inclusion - are worth the effort.