Blog Post - Digital transformation for state IT [Published July 2024]

Three ways state IT leaders can foster digital transformation

State leaders are acutely aware of the need for digital transformation in capturing critical information, driving cost efficiencies and promoting a more unique and personalized experience for their residents. But actually realizing digital transformation can seem like an insurmountable challenge for their IT directors.

A holistic approach can be much too ambitious. Budgetary shortfalls, operational silos and skeptical stakeholders all must be overcome, not to mention a general institutional inertia that often hobbles the public sector.

Gartner recommends state governments pursue digital acceleration programs by keying on “quick wins,” identifying select initiatives that “reprioritize ongoing and planned digital initiatives based on their use case and value.”

The incentive is clear: By identifying and implementing successful goal-driven initiatives that achieve immediate results, state IT managers can speed digitalization adoption and help invigorate public service.

Charting a path forward

For state governments, the success of digital solutions is measured in the ways they achieve focused, attainable goals. This in turn helps to lead the way to wholesale digital transformation.

Digital initiatives are already gaining traction with state governments in many ways.

State police training incorporates VR headsets to simulate emergency situations. Financial analysts use machine learning to project the impact of tax laws and code changes on a state’s economy. Sanitation specialists use IoT systems to more precisely monitor the effectiveness of waste management and recycling programs.

State government leaders are prioritizing digital tools that make a critical, tangible difference in people’s lives. They are less interested in the concept of digital government itself than how technology can accomplish identifiable goals and needs in a more tangible, cost-effective way. State IT visionaries are uncovering multiple ways to answer that call.

1.     Streamlining procurement procedures with AI: State governments are often hamstrung by their need to adhere to highly structured procurement policies when bidding out large contracts. This can trigger slowdowns and cost overruns. But in North Carolina, procurement timelines have been reduced from 360 days to 120 days since the state government incorporated generative AI into their procurement process.

By taking a closer look at what worked and what didn’t, and applying AI tools to reduce redundancies and streamline processes, state procurement leadership has found the AI-enhanced procurement process to be not only faster, but easier to access and refine as well.

AI is not a substitute for human oversight. But it can effectively augment procurement staff in a multitude of ways. It can help identify optimal bidders across a wider spectrum, prioritize safety standards and incorporate contract lifecycle management (CLM) tools to establish clear performance metrics and optimized workflows with contractors.

Transparency is also critical to any successful procurement. AI can facilitate accurate record-keeping through all phases of the bidding and contracting process, and establish checkpoints to ensure all key steps are being followed.

2.     Speeding service with digital DMVs: A critical need to satisfy the public need for smoother, faster processing of motor vehicle licenses and registration has driven some notable innovations. In Connecticut, for example, an array of online services are offered for changing operator addresses, requesting replacement license cards and even paying tickets. 

California has taken digitalization to another level with the creation of a mobile driver’s license, or mDL. While not a substitute for a driver’s license itself, it can be carried on a mobile phone for use at checking in at airports or other establishments that require such ID.

The California DMV website reports: “The mDL provides accurate, secure proof of identity to the businesses you interact with and lowers the potential for fraud and identity theft.” Other states are similarly investigating the advantage of using digitalization for enhanced resident experience at DMVs.

Digitalizing key DMV functions offers state governments many ways to improve service quality, build up revenue and better satisfy resident expectations. It also can inspire digitalization in other areas where state governments meet the public, such as tax collection and licensing.

3.     Fighting fires with digital cameras: Washington State’s Department of Natural Resources recently announced a pilot program to expedite responses to wildfire outbreaks by installing 21 digital cameras with 360-degree view capabilities at public lands along the Cascade Mountains.

These high-definition cameras, outfitted with AI software, are used to detect wilderness blazes early in order to prevent their spread and limit damage. Incorporated alongside other digital technologies like satellite data and drone surveillance, digital cameras can provide an early warning system that speeds reaction times and reduces damage to property and lives.

From fighting crime to closely analyzing traffic patterns, the use of digital cameras by state governments has enormous potential for improving public safety and helping state infrastructures run more efficiently.

In some states, this is being accompanied by activist policies to ensure such camera use is in strict accordance with all relevant legal and Constitutional protections. Finding the right balance between efficiency and privacy is a critical concern for state leaders to address.

The time to start is now

StateTech magazine notes the high uptake of digitalization in the private sector as an example worth following: “Technology is making it faster and easier than ever to deliver a quality customer experience, and government agencies must keep pace, implementing the digitized services their customers have grown to expect.”

Outside help is available. For example, state leaders today have access to resources like the Technology Modernization Fund and the State and Local Cybersecurity Grant Program to pursue critical fiscal support for their digital initiatives. 

Implementing the right strategy is challenging for any government organization; a managed services provider can help develop a plan for smoothing out learning curves and building support from relevant stakeholders, including elected officials and the public.

Spectrum Enterprise has worked for over 20 years helping state government IT leaders design, manage and implement customized solutions. Learn more about what an IT partner can do to help achieve incremental steps to achieving digital maturity.