Why only startups can propel the public sector forward

The public sector is too unwieldy, well-established and overly scrutinised to take risks in a way that a nimble startup can, writes Ritam Gandhi, founder and director, Studio Graphene.

When we think of organisations that are dynamic and innovative, the public sector is not typically the first-thing that springs to mind.

Here in the UK, the public sector finds itself having to deliver more and more services on ever-dwindling budgets. The challenge is effectively allocating existing resources to ensure maximum results.

In light of budgetary constraints, it makes sense for the government to begin looking to cost-efficiencies that can be arranged through existing technological solutions.

Of course, this is much easier said than done.  The public sector’s reputation for opaque bureaucracy and hierarchies means even the smallest of changes can pose a challenge. For this reason, what we are increasingly now seeing is government departments looking to dynamic startups to develop and implement technological solutions they simply don’t have the time or resources to create in-house.

In turn, this has propelled the rise of a new industry aptly termed ‘GovTech’. A portmanteau of government and technology, GovTech refers to apps, products and other innovations generated by private companies with the stated aim of improving the public sector.

While separate from government, these companies aim to work with the public sector to transform everything from how individuals pay their taxes to how they access the justice system.

What can startups offer the UK public sector?

Here in the UK, it’s an exciting time for GovTech startups as the government is increasingly casting a wide net in the pursuit of greater efficiency in the public sector.

This has been particularly true across the NHS, where the problems posed by an ageing population have forced the Department of Health to incorporate new technology and apps into the health service.

Babylon is probably the highest-profile example but let’s not forget that there are over 2,600 HealthTech companies in the UK, most of which are positioned to naturally partner with the NHS.

Startups clearly have potential but it’s reasonable to ask whether these innovative solutions could be generated from within the public sector itself.

Well, the current (and well-documented) challenges currently facing the UK government mean that the vast majority of attention and resources are spent trying to maintain the level of services it currently delivers.

This leaves little space for future planning or genuinely groundbreaking thinking about ways public bodies might be able to improve in the future. Moreover, public sector organisations are often too big and too risk-averse to develop new ideas and technologies.

There are a number of reasons for this, but perhaps the most significant is the legacy effect of being a long-established institution with well-worn processes and overly prescribed roles.

While this makes for easy performance evaluations, it leaves little space for creativity. Just as with large corporations, public sector bodies can be susceptible to complacency and in the worst cases might even be openly hostile towards new-thinking.

This is where startups undoubtedly have an edge. By leaving innovation to individuals or small teams, often without a preconceived idea of how a task should be completed, they give themselves the best possible chance of coming up with innovative solutions.

Luckily, Britain already has a thriving GovTech market ready to be leveraged by the public sector, should government officials take full advantage of the immense opportunity that a symbiotic relationship has to offer.

Online staffing marketplace Patchwork offers a practical example of how startups can supplement the public sector.

The company has transformed temporary staffing in the healthcare sector by connecting vacant shifts with available clinicians. By eliminating the need for agencies, the app helps trusts manage their temporary staffing requirements while saving them significant amounts of money.

However, the NHS isn’t the only government department looking to GovTech startups for ways of improving their operations. For example, the Department for International Development is using Artificial Intelligence (AI) and satellite technology to provide better population estimates. This can help to improve the planning and delivery of aid operations and vaccination projects.

Taking advantage of startups 

These examples show how new technologies and innovative startups can add value to the services offered by bureaucratic and unwieldy public sector bodies.

However, what exactly should the government be doing to better leverage the immense potential of UK GovTech?

Well, accelerator programmes are a great place to start.

The most notable in this space is GovStart UK, an accelerator run by venture fund PUBLIC.

The accelerator aims to help develop startups with the potential to solve persistent problems in the public sector.

Crucially, the fund doesn’t just provide companies with finance; it also connects them with key people in the public sector so that they can work in concert with officials to develop technology that’s tailored to the needs of UK public bodies.

Huckletree, for example, will soon be launching PUBLIC Hall – a GovTech focused workspace that will bring together startups, investors and innovators to address the challenges facing the public services.

The government also has its own accelerator, GovTech catalyst, which provides public sector bodies £20m with which to find technological solutions to operational challenges.

The public sector can’t neglect innovation

In recent years, new technologies have had a disruptive impact on every industry and the public sector is no exception. Indeed, demographic challenges like the one posed by an ageing population actually require public sector bodies to find creative solutions in order to improve their operational efficiency.

Moreover, I truly believe we have merely scratched the surface of what can be achieved when government departments truly start leveraging the untapped potential of the UK tech sector.

In my experience though, this innovation cannot come from within the public sector itself. Innovation means risk-taking, and public bodies are too unwieldy, well-established and overly scrutinised to take risks in a way that a nimble startup can.

That’s why an obvious solution in my eyes is for the government to partner with startups that are lean, flexible, and at the cutting edge of the latest technology.

As someone who has worked as part of large corporates before launching my own startup, I’m confident that a new generation of innovative GovTech startups could provide the solutions to many of the biggest challenges the public sector will face in the years ahead.

Photo Credit – Pixabay