William Eichler 28 March 2018

Digital business models could save public sector £46bn, think tank argues

A reduction of duplicated administrative processes and the adoption of new digital business models could help save the public sector billions per year, think tank claims.

A new report from the Institute for Government has recommended the public sector and its suppliers should move to open book accounting — publishing all current operational data, roles, functions, processes, systems and costs

Its report, entitled Manifesto for Better Public Services, argued such a move would help the public to identify duplication and inefficiencies within and between organisations.

The think tank also recommended that public sector organisations learn from online businesses, such as Amazon and Netflix, and develop a ‘Lego block’ approach to services.

This would allow organisations such as local authorities to adopt a set of standard ‘plug and play’ parts, helping them to reduce duplication.

Overall, the think tank claimed that the adoption of these new digital practices, as well as a 40% phased reduction in duplicated administrative and managerial processes, functions, roles and systems in public services, could save the public sector £46bn a year.

‘Digital technology has been a game-changer for many modern organisations,’ said Dr Mark Thompson, senior lecturer at Cambridge Judge Business School.

‘They have dramatically improved their frontline services by completely rethinking and redesigning the way they operate.

‘In contrast, much of our public sector still looks and feels very old fashioned: technology is often used simply to paper over the cracks of their existing processes and services rather than to rethink, redesign and improve them.

‘The opportunity is colossal: the £46bn saving we could achieve by eradicating wasteful administration and duplication is enough to fund an expansion to our frontline workforce of doctors, nurses, police and other key service staff equivalent to the entire population of Birmingham.’

SIGN UP
For your free daily news bulletin
Highways jobs

Deputy Head of Pensions

London Borough of Richmond upon Thames and London Borough of Wandsworth
£48,873 - £62,451 dependents on experience
The Pensions Finance team has a variety of work shared in a small team giving the opportunity to get involved in every area. The team provides financial and investment support to Wandsworth Council’s £3bn pension fund, the Southwest Middlesex Cremato Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Adults Social Worker - Forensic Mental Health

Essex County Council
£37185 - £50081 per annum + Flexible Working
This position is open to Newly Qualified Social Worker's (NQSW) with relevant experience in Mental Health. The starting salary for NQSW's is £34,902 England, Essex, Wickford
Recuriter: Essex County Council

Policy and Procedure Coordinator

Durham County Council
Grade 9 - £35,412 - £39,152
Policy and procedure coordinator 18.5 hours ( working pattern to be agreed)   Are you a qualified Social Worker with experience of working with childr Spennymoor
Recuriter: Durham County Council

Accountancy Assistant

Durham County Council
£26,403 to £28,598 p.a. (Grade 5)
We are looking to appoint an Accountancy Assistant on a permanent basis within the Pension Fund. This post is to provide dedicated direct financial s Durham
Recuriter: Durham County Council

Workshop Supervisor - Street Lighting

Durham County Council
£24,790
Salary Craft Pay (for Building Labourer category) Basic salary £24,790 p.a. Plus 50% IOA on basic salary £12,395 p.a. Also paid tool allowance £37.93 Durham
Recuriter: Durham County Council
Linkedin Banner