Chapter 1- Introduction To Public Sector Innovation .pdf

Chapter 1- Introduction To Public Sector Innovation .pdf

1. Public Sector Innovation in Digital
Era
Introduction To Public Sector Innovation

2. TPAD 5313 –Public Sector Innovation in Digital Era
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Lesson 1 –Introduction to Public Sector Innovation
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Learning outcomes
•Analyse the evolution of public sector innovation, considering historical
perspectives and key milestones.
•Evaluate factors influencing public sector innovation, including political,
social, and economic considerations.
•Examine the components and dynamics of the innovation ecosystem in the
public sector.

3. TPAD 5313 –Public Sector Innovation in Digital Era
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Chapter outline
•• Evolution Of Public Sector Innovation
• Factor Influencing Public Sector Innovation
• Innovation Ecosystem In Public Sector

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Public sector innovation
•The term “innovation” can be defined most generally as changes in
behaviour. Efforts to produce more specific definitions of the term have
resulted in many good, but no single authoritative definition.
•Early definitions of innovation, like Schumpeter’s (1934), restricted
themselves to novel products and processes finding a commercial
application in the private sector.
•Later definitions have broadened their scope, also including social
innovations (e.g. organizational, institutional and political innovations),
innovations in services, and innovations in the public sector as well.

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Dimensions Associated with a Broad Definition of Innovation
Innovations involving changes in characteristics and design of service products and production processes
•including development, use and adaptation of relevant technologies
delivery innovations
•involving new or altered ways of solving tasks, delivering services or otherwise interacting with clients for the purpose of
supplying specific services
administrative and organizational innovations
•involving new or altered ways of organizing activities within the supplier organization
conceptual innovations
•in the sense of introducing new missions, new worldviews, objectives, strategies and rationales.
system interaction innovation
•new or improved ways of interacting with other organisations and knowledge bases.

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How are innovations generated in or introduced into the public sector?
•Technology procurement
•Technology development
•Bureaucratic and organizational reform
•New policies

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Evolution Of Public Sector Innovation
Practice
Organisations are now explicitly increasing the ability to
innovateInnovation must be a natural discipline in government
Barriers
The bureaucracy Organisation refuse innovationReduction of uncertainty and
instability
Cases and practices
What it looks and feel like. Uses of Information TechnologyGrowing awards in innovation
Awareness
1970s and 1980s - study by academics1990s - awareness that government must 'reinvent'
itself to adopt new challenge and opportunities

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A typology of innovations in the public sector
Public
Sector
Innovation
a new or
improved
service
process
innovation
administrative
innovation
system
innovation
conceptual
innovation
radical change
of rationality

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Factors in Public Sector Innovation
Push for innovations
•Policies and political targets
•Popular opinion
•International agreements, laws,
regulations and standards
•Technological and scientific
developments
•Other societal developments
Pull for innovation
•User needs and preferences
•Organizational overstretch or
frustration with status quo
•Lobbyism
•Technological interdependencies

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Barriers to innovation
•The public sector is often described as “bureaucratic” – in a negative
sense.
•The political party or parties in power might have other perspectives on
what is the best way to organize the public sector than the minority.
•Politicians and policy makers do not have perfect knowledge of the issues
at hand.
•These decisions are almost always influenced by competition for funding
and a lack of resources

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Public sector innovation vs the private sector innovation
Incentive-structures
public sector /Individuals
o Prestige
o Self-fulfilment
o Professional recognition
o Potential for spin-off business o Idealism
o Career
o Power
o Money (salary)
private sector /Individuals
o Prestige
o Self-fulfilment
o Idealism
o Career
o Power
o Money (salary, profits, bonuses)
o Job security via enhanced company
competitiveness and profitability o Imposed
requirement
public sector /Organisations
o Problem solving (in order to reach objectives)
o Increased funding
o The propagation of a policy, idea or
rationality o More staff
o Public relations
Private sector /Organisations
o Problem solving (in order to reach objectives)
o Profits
o Market-shares
o Pre-empt competition o Growth (in size)
o Public relations

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Innovation Ecosystem In Public Sector
•Four interrelated dimensions
•Mutually dependent and cannot flourish without each other
•Proposes an integrated way of looking at public organisations’ innovation
efforts that includes the key mutually dependent structures, process, and
leadership roles that can drive or impede change within and beyond the
public sector.

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Innovation Ecosystem In Public Sector

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Co-creating for a better society
• A creation process where new solutions are designed with people, not for
them.
•This challenges how public managers think about their roles in policy
development, going far beyond committee meetings, traditional
stakeholder hearings and customer research.
•Co-creation is strongly connected to notions of ‘participatory design, ‘co-
design’, ‘design attitude’ and ‘design thinking’.
•Bring different creative process, a different involvement of people and a
different mode of knowledge to the forefront of public sector innovation and
decision making.

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Consciousness: the innovation landscape
•The Consciousness section of this book offers components, models and
frameworks that can help to embed a common understanding and
awareness of what innovation means and why it is important, It explores
the character of problems facing public organisations and discusses the
relevance of the language of innovation to the public sector.
•It provides an overview over the innovation landscape: some of the key
triggers of creativity and change in public organisations, and analytical
perspectives of what innovation is and the types of value it can create

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Consciousness: the innovation landscape
CONSCIOUSNESS(Awareness)
Barriers >>Key Factors<< Potential
-Not understanding
The nature of public
problems
-No awareness of
innovation as a concept
-No recognition of what
innovation means In
practice to the
organisation
-No reflection
Over own practices
The innovation landscape-Recognise wicked' and
complex problems
-Educate in innovation
terminology
-Communicate examples
or own innovations and
Innovators
-Establish dialogue and
reflection about the value
of own practices

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Capacity: building innovation potential
•Innovative capacity in public organisations is a function not just of
organisational characteristics, but also of internal culture, external
environment and institutional framework.
•Capacity is thus concerned with the structure of the ecosystem, and how it
can evolve or even be (re)designed.
•Capacity can be thought of as pyramid with the overall structural,
institutional and political contextual conditions at the top and day-to-day
practices.

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Capacity: building innovation potential
Context
Strategy
Organisation
Innovation labs
People and culture

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Capacity: building innovation potential
CAPACITY(Structure)
Barriers >>Key Factors<< Potential
-Inflexible regulation
-Lack of competition
-No risk capital
-Political climate
Context-Establish innovation
legislation
-Create innovation incubators
-Make risk capital available
-Explore the innovation
envelope
-Task oriented, no overall
strategy
-No strategy for what
innovation means to the
organisation
-Strategic planning
Strategy-Establish overall strategy for
the organisation
-Innovation strategy
-Strategic innovation
-Organisational silos
-Random e-gov efforts
-Lack of network thinking
Organisation-Organise to power
collaborative innovation
-Create innovation labs
-Build new digital business
models

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Capacity: building innovation potential (cont..)
CAPACITY(Structure)
Barriers >>Key Factors<< Potential
-No place for innovation
-Lack of specialised
competencies
-No challenge to the system
Innovation labs-Establishing innovation labs
-Creating specialised teams
inside and outside labs
-Innovation stewardship
-Top-management driven
-Zero-error culture
-Mono professional skill
profiles
-No strategic competence
development
-Lack of incentives
People and
culture
-Active employee
involvement
-Innovation culture
-Increased diversity
-Strategic competence
development
-Innovation incentives

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Co-creation: designing and learning
CO
-CREATION(Process)
Barriers >>Key Factors<< Potential
-No recognition of design
thinking as approach
-Lack of design skills
Design thinking-Educate in design thinking
-Institutionalise design
principles
-Recruit and source design
skills
-No involvement of citizens
or businesses
-Few experiences and
methods for involvement
Citizen
involvement
-Involving citizens and
businesses in the innovation
process
-New tools and methods for
citizen-centred innovation
-No knowledge or tools
-Lack of platforms
Orchestrating
co-creation
-Methods and tools to drive
innovation
-Innovation labs as platforms
-Lack of feedback from
innovation processes
-No data on value creation
Measuring and
learning
-Measure four bottom lines
-Driving organisational
performance

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Courage: leading the public sector of tomorrow
COURAGE(Leadership)
Barriers >>Key Factors<< Potential
-Internal recruitment
-Diffuse relationship with
political level
-No tolerance for divergence
Innovation labs-Visionary leadership
-Clarifying the innovation
space
Encouraging and managing
divergence
-Four leadership roles
-Emphasis on analysis as
basis for decisions
-Decision focus
People and
culture
-Emphasis on designing new
options for decision making
-Future focus

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Courage: leading the public sector of tomorrow
•The leadership roles are tied in different ways to the innovation ecosystem.
•The visionary is the political leader, who must formulate the vision and set the level of ambition, while overcoming the temptation to interfere with ongoing experimentation and development.
•The enabler is the top manager, who must be both protector and the number one champion of the organisation’s innovation ability.
•The 360 degree innovator is the mid-level manager; potentially the largest barrier to fresh thinking and change inside government, but also, at best, a 360-degree facilitator of innovation.
•The knowledge engineer is the head of institutions that deliver services and enforce regulation, and that ultimately determine how the public sector serves citizens and businesses –every day