The OECD's new govtech policy framework

The OECD has just published its First Govtech Policy Framework, with the objective of guiding public institutions on how to establish the conditions for a successful, sustainable and effective govtech ecosystem. Gobe Studio has participated in the preparation of this report with the review and contributions of Idoia Ortiz de Artiñano, its CEO and founder.

In this article, we summarize the main components of this guide and we want to highlight 3 ideas that Gobe Studio considers relevant for those public sector teams that are starting their careers in the govtech field. If you're a startup, knowing this approach will also help you relate to the public sector. And whoever you are, if you have a little more time, we recommend that you read the entire report, you won't be disappointed.

The OECD team an outline of 4 fundamental pillars (or Building Blocks in English) and 3 facilitating elements for this govtech policy framework:

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The four fundamental pillars:

The success of a govtech program depends on four fundamental pillars that guarantee its effective, sustainable and scalable development:

1. Mature digital government infrastructure: a quality data system that guarantees access and use to different actors, as well as a flexible digital infrastructure provides the basis on which govtech solutions can be developed.
2. Capabilities to collaborate with different actors and experiment: knowledge and skills, processes, tools and methodologies, and a culture that favors innovation allow govtech programs and pilots to be carried out effectively.
3. Resources and support for implementation: specific funds and budgets, a public procurement system focused on govtech and a plan to scale up pilots guarantee the quality and sustainability of the projects.
4. Availability and maturity of the govtech solution offering: acceleration programs, available investment and open public procurement for emerging companies pave the way for the development of govtech solutions while minimizing risks.

Three facilitating elements:

Facilitating elements help to ensure that the entire govtech ecosystem is coordinated and moving in the same direction.

1. Strategic dimension: strategy and leadership are key elements in mobilizing support within the sector for govtech initiatives and ecosystems and demonstrating the importance of including this approach in an institution's digital transformation strategy.
2. Institutional dimension: refers to public teams responsible for implementing govtech programs, generally located in areas of digitalization or innovation, which must coordinate with various departments such as entrepreneurship and public procurement.
3. Network dimension: focuses on strengthening govtech strategies through international, intra-governmental and non-governmental communities, facilitating knowledge exchange and promoting the govtech agenda.

Now that we have the context clear, we want to share three key ideas from this report that, in our opinion, are essential to promote effective govtech public policy:

Buying innovation isn't the same as buying technology: what capabilities do we need?

To transform public administration, we need to innovate, and you already know that govtech is an opportunity to incorporate innovation into the process of digital transformation of public services.

However, testing, developing, acquiring and integrating innovative market solutions is not the same as buying technology. Today I don't want to talk to you about the importance of opening up the market to new emerging providers such as startups, scaleups and digital SMEs (which it is and you are already convinced), but about the capabilities required to innovate in collaboration with these suppliers.

In recent years of digital transformation, there has been a tendency to favor large technological projects with traditional suppliers in which the public sector plays a role of contract manager and the supplier focuses on meeting the requirements of the contract. However, if we want to buy innovation, this approach must change.

The OECD states that govtech takes a more disruptive approach in which To innovate, we must focus on experimentation, iteration and even the co-creation of solutions. To do this, the public sector must strengthen certain capacities: skills, processes, methodologies and culture that favor innovation.

There are several competence frameworks for innovation and digitalization in the public sector, but in this article I want to highlight the one defined by the OECD in its Framework for Digital Talent and Competencies (2020):

• Focus on users: Solve people's needs and involve them in the design, implementation and evaluation of projects, allowing public employees to better define the problem they are trying to solve and increase the quality of the solution developed.
• Curiosity: Look for new ideas and reframe existing problems with an open perspective.
• Iteration: Know how to carry out pilots with new technologies in an agile way, that is, through iterations that allow validation and development based on integration needs and requirements.
• Data Literacy: Be able to understand and analyze data to make decisions
• Narrative: Define govtech challenges in a way that attracts emerging companies.
• Insurgency: Question the usual ways of doing things, building alliances with alternative partners such as startups and entrepreneurs.

In addition, the report suggests that the management team of pilots or govtech projects should have Technical Experience and Knowledge of the expected challenge and impact, to effectively monitor collaboration and avoid total dependence on the supplier that detracts from the public sector's capabilities.

Of course, all these capabilities must be accompanied by a purchasing system that encourages experimentation and the piloting of innovative solutions and includes a scalability plan for successful pilots.

The quality of govtech solutions depends on the maturity of the digital infrastructure.

The OECD highlights that new digital services in the public sector are built on existing digital infrastructure (Legacy in English), so the quality of govtech solutions will depend on the maturity of said infrastructure. According to the report, this maturity is measured by three key factors: data quality, the information access and exchange system, and infrastructure flexibility. For example:

• Sin Quality databases, the potential of AI solutions that require the use of public data will be limited.
• Often, the challenge that a govtech solution solves affects more than one area or department and the solution requires combining data that belongs to different teams. Without a Agile system for access and exchange of data, the development and integration of new solutions will be delayed or limited.
• Una flexible government digital infrastructure can facilitate effective collaboration. In the govtech arena, cloud computing and open source policies can influence how solutions are developed, maintained and scaled.

In most of the govtech pilots we carry out at Gobe Studio, we recommend not integrating into existing infrastructure to maintain agility and avoid barriers that divert the pilot's objective. However, it is crucial to take advantage of this phase to identify scaling requirements linked to infrastructure and data.

The future of govtech in your institution depends on a consolidated strategy

The report states that the start of a govtech program may arise From Below, thanks to the initiative of entrepreneurial individuals in an institution or”From Above” because it has been included in the organization's digitalization strategy or plan. In either case, once the initial phase has been passed, it is advisable to consider its own govtech strategy to ensure that it receives the attention and resources necessary to become a priority and ensure its sustainability. In addition, this will make it possible to align concrete actions with relevant public policy objectives.

The OECD states that a good strategy is complemented by specific objectives and milestones, is supported by a specific budget and can even propose legislative changes if required. I also want to reinforce the idea that this govtech strategy should include a training plan for public teams, an innovation buying system and an ecosystem vision.

In addition to a strategy, it is important Have a leadership or management figure Such as a Chief Innovation Officer (director of innovation), that helps to provide coherence, mobilize resources and advocate for its importance in the institution and public debate. According to OECD, this is particularly relevant in the case of govtech because it is a relatively new and disruptive space, with a little more risk inherent to any innovative process and because it requires the participation of different areas (promotion of entrepreneurship, public purchase, technological infrastructure) and external actors.

So far 3 of the most relevant ideas we took from this report. We encourage you to read it carefully, we are sure that you will find more good ideas that will guide you on your govtech journey. Here's the link, in case you haven't opened it yet 🙂: The OECD's Govtech Policy Framework.