A longstanding disconnect between IT teams and the wider organisation means that EMEA public services organisations are failing to adopt new technologies. Moreover, they are potentially putting their long-term response to the pandemic in jeopardy, research from Insight has revealed.
The research of education, government and healthcare organisations shows that 71 percent treat IT as a utility rather than a business enabler, and only a quarter (26 percent) give IT a seat on the board – despite IT’s importance for delivering organisations’ strategic objectives.
Emma de Sousa, president, Insight EMEA argued that IT cannot continue to operate at arm’s length from the board: it must be given a seat at the top table.
“The way IT is perceived and used within public services organisations has to fundamentally change,” she said. “It must be put front and centre, driving organisational change, ensuring good governance, and being made directly accountable for doing so. Giving IT a voice on the board to drive strategy; letting IT use that voice to support innovation; consulting IT on what approaches will best meet organisational objectives; and trusting IT to perform against strategic KPIs, will position organisations to face the challenges of 2021 and beyond.”
Not listening to IT
IT’s efforts have still produced returns during the pandemic – for instance, 52 percent of organisations invested in projects to create short-term cost savings. However, it could do more: 62 percent of public services organisations fail to take advantage of new technologies because they aren’t listening to IT.
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This disconnect has become especially pronounced during the pandemic. While 85 percent of senior IT decision makers believe ways of working have been permanently transformed, at least 63 percent of organisations are reluctant to invest in projects that could improve the employee experience or optimise the business because the wider organisation believes things will eventually return to a pre-COVID-19 ‘normal’.
Elsewhere, a recent report by the National Audit Office (NAO) said that the government continues to show a consistent pattern of underperformance when it comes to delivering digital business change.
Other findings from the research included:
- IT teams aren’t measured against their strategic impact: 61 percent of IT departments in public services organisations aren’t measured against business KPIs, yet 87 percent are engaged to support business projects and 81 percent have the freedom to invest in the skills they need. Measuring IT against its strategic impact could show the value of this engagement and freedom.
- More investment needed to address skills gaps: 58 percent of organisations need to invest more in the skills and technology needed to optimise the organisation, and the same percentage need to invest more in the skills and technology needed to support a remote workforce.
- Projects put at risk by IT and business disconnect: 53 percent of organisations are working on projects to optimise the organisation, and 66 percent on projects designed to improve the employee experience. Yet with the majority of organisations believing that things will return to “normal”, there is a risk that projects will fail because they don’t have the organisations’ full support.
- Failure to engage IT brings additional costs: Public services organisations spent an average of £4m / €4.4m from 2018-2020 on projects that either did not provide the full benefits, or failed. The disconnect between IT and the wider business, and the failure to listen to and engage with IT, almost certainly contributed to this.
“Public services organisations have transformed the way they operate in the last 12 months. Changing citizen needs and a drive for cost reduction mean these changes and more need to be made permanent. IT will be critical in delivering these new operating models for public services delivery, but first the way it is perceived has to change,” said de Sousa.
“Closing the gap between IT and the wider organisation must be an urgent priority. This will not only help to de-risk new investments in digital services but also ensure that digital transformation initiatives meet wider organisational goals.”
