Emerging Opportunities For Public Sector Organizations To Deploy Industry Processes In The Cloud 2018 FORRESTER. REPRODUCTION PROHIBITED.
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1 Emerging Opportunities For Public Sector Organizations To Deploy Industry Processes In The Cloud 1
2 Executive Summary Evolving digital transformation demands are shaping the future of public sector organizations strategic priorities to generate new services, transform citizen experiences, and automate processes. These digital transformation initiatives increasingly include end-to-end business processes and operations such as digital government, citizen engagement, future cities, and data-driven government. Forrester found that innovative* public sector organizations are more interested than their peers in addressing digital demands with end-to-end processes in the cloud for greater speed and responsiveness, lower cost, increased flexibility and efficiency, and intelligence. 97% of cloud decision makers at public sector organizations believe in the importance of software that integrates across an end-to-end value chain in an industry cloud. *Please refer to the methodology to find out how Forrester qualified innovators vs. others. 2
3 Innovative public sector organizations are well on their way to becoming digital businesses Innovators focus more on digital priorities than others: Digital government Citizen engagement 95% 72% 92% 80% 78% of public sector organizations have started or have completed their digital transformation. Innovators are further ahead than the rest. Future cities Data-driven government Innovators Others 63% 67% 88% 86% To support digital innovation, innovative public sector organizations are investing in business processes like risk management, finance, and supply chain. 3
4 Public sector organizations view cloud as a foundational component of digital business Innovators see cloud as a key enabler for their key digital priorities and are investing more in business processes in the cloud to support digital transformation such as citizen engagement, risk management, and infrastructure and asset management. Innovators see benefits of moving business processes to the cloud more clearly than others. Top benefits include: 51% of public sector organizations have moved a large or very large percentage of their business processes to the cloud. Improved ability to innovate Innovators Others Improved service delivery Reduced total cost of ownership in IT 4
5 Innovative public sector organizations see the importance of innovation technologies to meet digital transformation goals Innovators believe intelligent technologies are important in achieving digital transformation goals. By using intelligent technologies in the cloud, innovators see more benefits than other public sector organizations. 96% Big data/real-time analytics Compared to 80% of other public sector organizations 61% Reduced operating costs 93% 93% Blockchain Compared to 71% of other public sector organizations 93% Internet of Things 73% 71% Improved service delivery Simplified software landscape 93% 93% Compared to 76% of other public sector organizations Innovators Others 5
6 Public sector organizations show high interest in industry cloud Industry cloud is a platform and software solution that enables cloud adoption for a particular industry. This includes industry end-to end processes, innovation platform, and industry-specific business insights all delivered in the cloud. 96% of public sector organizations believe moving end-to-end processes or business processes to industry cloud would have notable improvement on their ability to digitally transform their whole ecosystem. Innovators are more interested than the rest in an industry cloud, particularly due to: the cloud platform (84%) the user experience (74%) the digital foundation (60%) 6
7 But the journey has just started Moving end-to-end processes to an industry cloud is in the early stages of market adoption. This results in different understandings, requirements and challenges around topics like security, the need for differentiation, and customization. Everybody has their own perspective and no one will agree on perspectives. This would be one of the issues with industry cloud." IT director, US State Public sector organizations see the benefits but need better understanding of the priority use cases, the elements that make up an industry cloud, and how to get started. 7
8 Key Recommendations Identify ongoing digital transformation opportunities. Put processes in place to identify and prioritize digital transformation initiatives. To start, find a trusted partner to help you plan moving end-to-end processes to the cloud. Doing so can help support innovation initiatives related to your strategy, technology, people, process, and culture. Assess innovation technologies to deliver next-generation processes in the cloud. To transform end-to-end processes, leverage innovation technologies like internet of things, blockchain networks, or machine learning. Embedding these technologies in end-to-end industry processes in the cloud can also accelerate benefits. Ensure your business cases support end-to-end industry processes in the cloud. Include both near- and long-term benefits in your business cases: from process automation efficiencies and embedded insights, to the implementation of next-generation processes. 8
9 Methodology In this study, Forrester conducted 153 online surveys and two qualitative interviews with public sector organizations in the US, the UK, France, Germany, Mexico, Brazil, Australia, New Zealand, and Japan to evaluate interest in industry cloud. Survey participants included decision makers responsible for cloud computing strategy. Questions provided to the participants asked about cloud adoption and interest and expected benefits of industry cloud. Respondents in this study were bucketed into two groups: innovators and others. Those that consider themselves to be innovative rated themselves highly across the board for innovation in strategy, technology, people, process, and culture. Respondents were offered incentives as a thank you for time spent on the survey. The study began and was completed in April The data in this deliverable is a subset of a larger study with a custom survey of 800 professionals and 10 interviews with cloud decision makers from banking, insurance, consumer products, discrete manufacturing, public sector, and retail companies. Click here to access the full study. ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/consulting. 2018, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, TechRankings, Forrester Wave, RoleView, TechRadar, Total Economic Impact, and the CX logo are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to forrester.com. [1-1672J9V] Project Director: Andia Tonner, Market Impact Consultant Contributing Research: Forrester s Infrastructure & Operations research group 9
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