Skip to main content Skip to Footer

LATEST THINKING


Move over Silicon Valley

Government in the platform economy

OVERVIEW

Platforms are not just a private sector phenomenon. Government as a platform models are emerging too. They are different from industry-specific business platforms that enable fairly straightforward supply and demand connections. Government is positioned to orchestrate much broader, multi-sided platforms that connect government, businesses, citizens and civil society to improve economic and social outcomes.

By investing in the core infrastructure, providing data and analytics, and managing incentives, governments can anchor self-sustaining platforms to drive productivity and efficiency—accelerating innovation and economic growth for their nations. The implications for the future of public value creation are far reaching.

VIEW THE REPORT [PDF]

91%

of public service leaders think that engaging in digital partner ecosystems is critical

KEY FINDINGS

To take advantage of government as a platform opportunities, agencies must make changes to policy, practice and partnerships—and even to the role of government in a market economy.

  • Platforms are foundational. Platforms are the new national infrastructure in the digital world. After all, digital investments are today’s economic growth multipliers.

  • Economic development is every agency’s business. Agencies must evolve from a compliance to an economic development focus. This goes for all government agencies, even operational ones.

  • A measured approach matters. While igniting ecosystems that foster innovation and growth, agencies must also continue to ensure fair competition, safeguard consumer interests and manage externalities in delivering public services.

Smarter investments in digital could generate $2 trillion in additional economic output by 2020.

80% of large companies say it is important to collaborate with government to drive innovation and growth in the 3 years.

RECOMMENDATIONS

Change starts by applying core digital platform principles internally first and then looking outward in several key areas:

Technology

Technology. Agencies need to open up government systems and create a scalable, cloud-based infrastructure with open APIs so that platform players can plug in.

Markets

Markets. Government must assess markets like venture capitalists do, understanding where the next big thing is coming from, identifying the sweet spots to disrupt value chains.

Digital trust

Digital trust. Government must strengthen public confidence in cyber security, data privacy and fraud protection.

Policymaking

Policymaking. Policies must be right and relevant to manage risk and compliance while shepherding growth opportunities.

DIGITAL FOR THE PEOPLE, BY THE PEOPLE


By Raymond Makhoul

A people-focused alternative for countries to unleash their full digital potential

Forward thinking leaders understand the role that national governments can and should play in driving digital transformation. National governments are in the best position to orchestrate multi-sector, whole-of-nation, and citizen-focused digital agendas for the global digital economy.

However, despite isolated successes, traditional national digital strategies have only partially delivered on their sectoral digital promise. There is a need for a different approach. Digital Nation harnesses technology and digital innovation to improve quality of life for citizens and diversify national economies. The strategies focus on outcomes, have top-of-government leadership, and are collaborative.

READ DIGITAL FOR THE PEOPLE, BY THE PEOPLE [PDF]
Digital for the People

Digital Nation strategies are grounded in three fundamentals:

  • Thinking like an investor. Setting the national digital agenda requires an investment portfolio approach. Like savvy investors, governments can use a value mindset to pinpoint investments for maximum return.

  • Getting clear on governance. The top executive should lead a ministerial or department head committee of sector leaders. The governance model should include a strategic advisory board to provide guidance.

  • Supporting co-creation. Governments need to establish a co-creation ecosystem and innovation management capability—in partnership with innovation labs, startups, research institutes, and multinational companies.

“Governments must invest like #VCs to balance supply and demand and win at national digitization.”

Tweet This >

GOVERNMENT IN THE PLATFORM ECONOMY

AUTHORS

CONTRIBUTOR

Lotte Frach       Connect with Lotte Frach's Profile on LinkedIn. This opens a new window.
Abir Habbal       Connect with Abir Habbal's Profile on LinkedIn. This opens a new window.
Ali Nehme       Connect with Ali Nehme's Profile on LinkedIn. This opens a new window.



SUGGESTED CONTENT