The public sector is faced with increasing pressure to evolve and to offer more “customer-centric” services but constraints on the public sector can slow this transformation. As governments strive to balance priorities and the allocation of scarce resources, new approaches are needed. The public sector needs to be increasingly innovative to effectively respond to the complex challenges facing society now and into the future.

For many western governments, costs are rising due to aging populations. Citizens become dissatisfied due to services being curtailed or cut. In addition, trust in government is deteriorating in many OECD countries. Lack of trust compromises the willingness of citizens and business to respond to public policies and contribute to a sustainable economic recovery (OECD, Trust in Government).

"Innovation in government is about finding new ways to impact the lives of citizens, and new approaches to activating them as partners to shape the future together.” OECD, 2017

Innovations in mobile, social, cloud and analytics are fuelling societal change and transformation. Technologies such as augmented and virtual reality, the internet of things, industrialised analytics, and autonomic platforms have the power to potentially reshape and transform every corner of the public sector. New disruptive technologies also present challenges to governments in relation to regulation.

Deloitte GovLab strives to create connections between future trends and the public sector. At GovLab we have developed a unique understanding of an increasingly complex and dynamic world. To stay relevant in future it’s our belief that public sector organisations need to innovate regardless of whether they operate in healthcare, justice, education, central or local government. Innovation is necessary in areas where conventional approaches do not currently work. We believe that adopting an innovation mind-set can help to achieve transformational change.

"The potential of innovation in government is immense; however, the challenges governments face are significant." Shane Mohan OECD, 2017

Solving new, complex societal challenges, and responding to the citizen of the future, requires new ways of doing things. Deloitte GovLab brings together the knowledge, capabilities and people to help public sector organisations to innovate. We know that innovation is critical for the public sector – and that building blocks are required to be successful in your innovation journey. We hope this publication inspires you to start your own journey.