Government

Global industry agenda


Citizens and businesses today expect more from their governments. Are you ready?

Governments need to digitally transform to deliver services citizens want and need. The public expects the agility and efficiency found in the private sector, and governments must embrace new technology, processes, ideas and workforce skills to thrive.

Disruptive forces

Powerful global forces outside the control of any one company are compelling rapid change for government organizers and providers.


Digital technologies

Redefining possibilities in the government industry, digital technologies will compound disruption and have hyper-exponential impact.


AI icon

Artificial intelligence
and analytics

AI icon

Artificial intelligence and analytics

  • Serves as engine for learning, decision making and customization

Mobile icon

Mobile

Moble icon

Mobile

  • Connects people with insights where they are

API icon

APIs/Microservices

API icon

APIs/Microservices

  • Enables ecosystem partners to collectively innovate

Cloud icon

Cloud computing

Cloud icon

Cloud computing

  • Enables the ecosystem to move beyond legacy

Blockchain icon

Blockchain

Blockchain icon

Blockchain

  • Increases confidence in the system to enable new business models

IoT icon

Internet of Things

IoT icon

Internet of Things

  • Equips physical assets with digital data to optimize operations

Cybersecurity icon

Cybersecurity

Cybersecurity icon

Cybersecurity

  • Embeds safeguards into systems and surfaces threats

Hyperlocal geolocation icon

Hyperlocal geolocation

Hyperlocal geolocation icon

Hyperlocal geolocation

  • Provides a lens into micro-moments in proximity that spurs action
Automation and advanced robotics icon

Automation and
advanced robotics

Automation and advanced robotics icon

Automation and advanced robotics

  • Executes routine physical and knowledge tasks

Emerging consequences

Each manifestation of disruptive forces has the ability to shape a new future, and affect government, the enterprise and the market.


Number 1 graphic

Constituent impacts

Constituents demand greater productivity and higher
quality services

Constituents demand greater productivity and higher quality services


  • Digital pervasiveness is growing; by 2020, e-commerce will reach USD 4 trillion, a 111% increase from 2016 24

  • Between 2017 and 2021, the global government deficit will exceed USD 3 trillion per year 25

Number 4 graphic

Government impacts

New ecosystem roles, cross-boundary alliances and business models grow in prevalence and impact

New ecosystem roles, cross-boundary alliances and business models grow in prevalence and impact


  • Yara Co., an organizing but non-controlling member of SAGCOT (a USD 3.4 billion collective impact ecosystem) saw sales grow >50% 30

  • More and more technocratic international governmental organizations are engaging in regulatory cooperation activity 31

Number 7 graphic

Society impacts

Frequency and severity of natural and man-made
shocks increases

Frequency and severity of natural and man-made shocks increases


  • In the last 30 years, damages from climate-related natural disasters were USD 2.1 trillion;
    but in the 10-year period between 2006 and 2016, USD 1.4 trillion in damages from disasters were incurred 37

Number 2 graphic

Demand goes up, but government’s ability to keep pace varies despite
efficiency gains

Demand goes up, but government’s ability to keep pace varies despite
efficiency gains


  • The nature of the increase varies in times of:
    • Growth, for infrastructure (such as transport, energy and water) and for more refined services
    • Slowdown or shock, for social support and protection and/or for crisis-related services
    • High inequality, for higher cost services
  • Globally, the estimated government productivity potential in 2017 was USD 3.5 trillion – equivalent to the global fiscal gap 26

  • Government budgets grew only 4% as a percentage of GDP between 2005 and 2015 27

Number 3 graphic

Public-private partnerships (PPPs) increasingly fund
systemic innovation

Public-private partnerships (PPPs) increasingly fund
systemic innovation


  • Outcome-based PPPs that are focused on urban infrastructure show much higher information and communication technologies intensity 32

  • The budget for the EU’s Horizon 2020 program is almost EUR 77 billion, including EUR 2.7 billion to kick-start a European Innovation Council 33

Number 8 graphic

Short-term preparation overtakes long-term planning
in some governments

Short-term preparation overtakes long-term planning
in some governments


2015 R&D spend as a percentage of GDP 38

  • Israel and South Korea led with >4%
  • USA was at 2.8%
  • China was at 2%
Number 3 graphic

Truth in
government declines

Truth in government declines


  • In 2017, 75% of governments were distrusted by citizens, consistently falling below media, business and NGOs 28

  • 97% of Harvard Business Review survey respondents expressed concern that businesses and government might misuse their data 29

Number 6 graphic

Talent is essential for government organizations to meet mission requirements and ensure
economic competitiveness

Talent is essential for government organizations to meet mission requirements and ensure economic competitiveness


  • 51% of global executives say that finding the right skills in local labor markets is one of their greatest skills-related challenges 34

  • 84% of government executives believe government should take significant or sole responsibility for worker skills 35

  • 61% of government executives struggle to keep workforce skills relevant in the face of rapid technological advancement 36

Number 9 graphic

Systemic physical and cyber
risks are increasing

Systemic physical and cyber risks are increasing


  • Government and/or military organizations were targeted in >13% of cyberattacks in October 2017 39

  • In 2017, more than 1,300 terrorist attacks resulted in more than 8,400 fatalities 40

Pressing challenges

Acknowledge and act upon industry challenges
in the near term to stay competitive.


Increasing the quality
of citizen services securely and
cost-effectively

Learn more

Increasing the quality of citizen services securely and cost-effectively


  • Citizens prefer mobile and voice interactions over screens
  • Public service workers demand near real-time access to contextual information and intuitive capabilities to handle complex interactions
  • Less digitally savvy segments demand interactions with real people in public service
  • Growing demand for identity protection spurs competition for blockchain-enabled identity standards and services
  • Constituents require greater transparency and proof of
    data responsibility

Partnering in new
ways to adapt and accelerate public
value creation

Learn more

Partnering in new ways to adapt and accelerate public value creation


  • Sub-national governments lead the way in adopting cloud-enabled ecosystems and platform models
  • Citizens and businesses increasingly interact in digital social spaces for collaborative self-governance
  • Governments deploy AI and cognitive systems to augment rational models with intuitive models
  • Government agencies increase participation and experimentation with new ecosystem models to leverage broader ecosystem competencies and better
    target interventions

Addressing physical and cyber threats
and vulnerabilities responsibly

Learn more

Addressing physical and cyber threats and vulnerabilities responsibly


  • More agencies outside of the intelligence domain see a need for expert systems and multi-disciplinary capabilities 41
  • Industry and government leaders identify cybersecurity as one of the biggest strategic risks for their nation’s economy in the next 5 years
  • Governments seek new models for systemic collaboration in ecosystems that can drive new insights on systemic risks
  • Need for resilience, flexibility and alternatives grows dramatically as legacy systems become
    increasingly unsustainable
  • New models leveraging cyber-physical technologies emerge, as does the need for broad engagement and meaningful dialogue on their ethical and responsible use

Transformational opportunities

Technology-enabled opportunities to empower your organization
to address pressing challenges and compete in the marketplace.


Go hyperlocal
to drive value
with communities
through data

Learn more

Go hyperlocal to drive value with communities through data


Leverage hyperlocal channels to improve citizen engagement

Drive value from public-private data while minimizing costs

Reduce trade-offs in trade through public-private cooperation

Learn more

Reduce trade-offs in trade through public-private cooperation


Securely enable trade flows through systemic collaboration

Advance positive sum gains through the trade community ecosystem

Scale and pace up
the intelligence advantage

Learn more

Scale and pace up the intelligence advantage


Securely fuse open source and closed data to augment intelligence at scale

Increase insight velocity while improving systemic learning

Start here to assess your readiness for
the future

Critical question 1

Relationships with constituents

  • Where can the “experience of government” be delivered to citizens and businesses as seamlessly as if government were invisible?
  • How can we “mash up” roles and levels of government with the private sector to fully yet responsibly leverage the possibilities of the
    new era?

Critical question 2

Ecosystem strategy, resources and policy

  • How can governments incent productivity improvements to offset higher medium- and long-term costs of largely insourced
    work arrangements?
  • How can we bring the voice of the people and businesses into policy and co-create healthier,
    happier environments?

Critical question 3

Institutional capacity to respond

  • Consider a future scenario where jobs lost far outweighed higher value jobs created– what can government do now?
  • What are the advantages, implications and ethical imperatives of adopting machine and artificial intelligence systems?

Take action

Explore government industry solutions


Discover how IBM’s digital solutions can help you provide the seamless government experience that constituients want with the improved efficiency you need.

Access more IBM Institute for Business Value government industry research

Read business insights and recommendations in our library of government industry thought leadership reports built on primary research and analysis.

Connect with industry experts

©2018 IBM Corporation
45022145USEN-00