5 Key Digital Transformation Challenges Government CIOs Must Tackle

Digital transformations are happening everywhere, across all sectors. The global digital transformation market is expected to grow at a 21.2 % CAGR between 2022-2027. Government agencies aren’t to be left behind, with these organizations applying the latest technologies to improve performance and save costs. From process automation to using digital signage, there are endless opportunities to apply the latest technology.

Digital transformation in government is at all levels, from local to national. Additionally, it’s across healthcare, public transport, and other sectors managed by the government. Successful digital transformation initiatives in government agencies require the right resources, including the right people. And at the center of the human resource front for digital transformation is the chief information officer.

The Role of a Chief Information Officer

The chief information officer (CIO) is one of the highest-ranking executives in any government organization. Actually, the fundamental role of the holder of the CIO position is in the implementation and management of computer systems and information technology.

Some organizations will have a CIO and a chief technology officer (CTO) if they don’t use outsourced CTO services. This is because some responsibilities formerly under the mandate of CIOs have been transferred to CTOs, chief digital officers (CDOs), and other C-suite executives.

Even then, CIOs remain responsible for maintaining and improving the internal technology processes of governmental organizations. The ultimate goal is to ensure the organization’s technology function and processes are optimized for maximum productivity. Furthermore, it should be in alignment with the organization’s goals and objectives. 

In summary, the breakdown of the role of the CIO is as follows:

• Monitoring the IT management department’s budget and working with the CFO and procurement team to purchase needed information technology equipment. Also, the executive maintains close relationships and establishes partnerships with IT providers or vendors.
• Strategizing and overseeing the creation of solutions specific to the needs of the gov organization and business strategy. This includes software development to drive digital transformation.
• Project management and overseeing the implementation of all new system and network installations and integrations, such as cybersecurity protocols and information security systems.
• Day-to-day management of the organization’s IT department staff and coming up with initiatives such as automation to drive productivity.
• Staying updated on new information systems technologies, big data, and industry trends. The CIO keeps up with what other IT professionals are doing and the best practices.

The Top Digital Transformation Challenges for Gov CIOs

Many government organizations are yet to realize their full potential in scaling digital solutions. This has been largely due to a number of challenges that CIOs in these organizations face on a day-to-day basis. The greatest of these challenges are as outlined.

1. Gap in Digital Skills

A successful digital transformation program requires competencies in core areas such as digital experience design, cloud computing, and enterprise architecture. Unfortunately, there is an undeniable gap in these skills across various government organizations, which will always impact the degree of change readiness of the organization. 

To bridge this gap, the organization can, through training and providing on-the-job learning experiences, build the expertise of the staff. Government organizations can greatly benefit from managed services. The managed services model is definitely the faster and more effective way to achieve digital transformation, including digital content and signage. Indeed, there are many digital signage applications in government.

Partnering up with the right team for managed services lessens the burden on your in-house IT team. While the CIO and other high-level executives will always be in the loop regarding strategic planning, other team members will not have to worry about constant education on emerging trends, daily maintenance, or project management. 

Additionally, managed services make financial sense and create a budgetary win for your organization. You will benefit from reduced operating expenses with a third party managing your digital transformation. For instance, consider the fixed cost structure and the fact that it remains the same regardless of what issues may arise. This is great for an organization with a fixed budget.

Furthermore, it’s great for government organizations, which typically plan for long-term expenditures. You can pay for several years upfront, especially if you are paying via one-time grant money and be set for a long time. 

2. Siloed Strategies and Decision Making

Organizational silos impact every step of the digital transformation process. Every executive holding the CIO job recognizes that it takes various sections, departments, and executives to plan and implement a successful digital strategy.

No matter the certifications and years of experience the CIO may have, they cannot act in isolation. Indeed, the CIO will have to collaborate closely with the chief operating officer (COO), chief financial officer (CFO), and other executives.

However, to overcome this challenge, ensure you clarify roles and all dependencies from the very start. Establishing the principles for decision-making throughout every step of the mapped-out digital transformation journey is critical.

3. Aversion to Risk

All organizations require digital agility. In the face of constantly evolving technology and industry standards and regulations that keep changing, no organization, governmental or private, can afford to neglect digital transformation. 

Unfortunately, many government organizations stick to the tested and tried, shying away from the new for their perceived risk. To counter this, it’s crucial to see the payoff in the bigger picture. This calls for the CIO to muster their leadership skills and rally other leaders behind the journey to digital transformation.

What’s more, the CIO can outline what value-add the transformation will have for the organization, how it ties to the business functions, and alleviate any concerns regarding risk. The CIO must clearly outline that with such a transformation, the organization may be able to keep pace with others and will more than likely get left behind.

4. Insufficient and Inconsistent Funding

For various reasons, government organizations may not always have a budget for digital transformation. The biggest of these is the organizational silos and risk aversion, as already outlined. 

In fact, it’s seldom a matter of lack of resources as it’s about getting these resources allocated towards digital transformation. The CIO can use soft skills such as persuasive communication and negotiation to get a budget approved. Even more important is being able to demonstrate the value of the digital strategies and that the team has the financial management skills to manage all resources allocated to the process.

5. Lack of Digital Leadership

As outlined, the CIO job title is an involving one, and to be successful in this career path requires that one be equipped with expert skills and work experience. You may not need a technical degree such as Computer Science to become a CIO, but you will need an understanding and appreciation of how to leverage technology and the many opportunities it presents to be a good CIO.

For some government organizations, not having the right person in the office of the CIO is the very thing that continues to stand in the way of adopting and scaling transformative digital strategies. For this reason, the human resources department must be intentional and conduct due diligence to ensure they hire the right chief information officer.

An expert CIO with not just the skills to execute their mandate but also business acumen, business administration skills, and a great vision will lead their team and organization in the right direction.

Stay Ahead with Digital Strategies in 2023

Interestingly, 70% of organizations have or are working on a digital transformation strategy. These numbers are no surprise, given the expected improvements in operational efficiency that come with this transformation. To keep up and stay ahead, every government agency must have a strategy and overcome the common challenges to achieve a successful digital transformation.