By Martin James, Vice President EMEA at Aerospike
At London Tech Week in June, the Labour party outlined its plans if it came to power and said it would place technology at the heart of its missions, unblocking tech barriers to restart the engine of the economy. Several weeks into the new Labour government, the hope is that the commitment to technology holds strong and our struggling public sector might at long last benefit from 21st-century technology.
Institutions ranging from HMRC and the National Audit Office to local councils and the NHS are still grappling with outdated systems, lagging behind other sectors that have successfully leveraged technology to enhance efficiency, meet customer expectations, and drive productivity. According to the Institute for Fiscal Studies, the post-Covid recovery in public sector productivity, which rose by 6.4% in 2021 and 3.0% in 2022, ground to a halt between 2022 and 2023.
The lack of substantial investment in digital transformation has been detrimental in multiple ways: the quality of services that citizens are entitled to; the management of increasing customer inquiries; and the efficiency of procurement processes. For example, the NHS’s reliance on equipment and technology that is no longer fit for purpose and is increasingly putting patient care at risk.
Hurdles in the race to modernise
One of the most persistent and prevalent obstacles to modernisation is the continued use of outdated legacy systems. Many government departments still depend on old IT infrastructure, making the integration of modern technologies both difficult and expensive. This issue is compounded by ongoing budget constraints, which often compel decision-makers to maintain existing systems rather than invest in new technologies.
Additionally, the public sector faces a significant shortage of digital expertise. This skills gap makes it challenging to implement and manage advanced technologies, leading to a cycle of stagnation. Bureaucracy and complex organisational structures further delay the pace of digital transformation. Ironically, the same lengthy procurement processes and multi-layered decision-making hierarchies that restrict progress could be streamlined with the very technologies the sector resists adopting.
Improving data management at scale
One of the most pressing technological issues that needs attention is data management. The adherence to legacy systems has resulted in multi-generational and multi-platform complexity in which important data is all too often siloed in dated applications. This makes it difficult to derive actionable insights that could enhance efficiency and productivity. While privacy concerns and stringent data protection regulations can add further layers of complexity to technological projects, the failure to implement effective data management systems poses an even greater risk, potentially leading to non-compliance with regulatory requirements.
In addition to siloed information, managing the enormous volume of data in the public sector is a major challenge. From administrative documents and public surveys to real-time data such as hospital appointments and financial information related to tax or benefits, all need constant updates to remain relevant and useful.
Learning from Airtel: A model for modernisation at scale
The public sector can learn valuable lessons from other industries that have successfully tackled similar hurdles. A prime example is Airtel, India’s leading telecom provider. With a customer base of 2.3 billion in India alone, Airtel faced the daunting task of processing between 100 and 200 billion records daily. Similar to public sector organisations, Airtel needed to modernise its approach and opted to develop an in-house platform to unify its previously siloed business systems.
Airtel created a unified repository that integrates stored data with real-time information, applying AI and machine learning to anticipate customer interactions, whether it’s a complaint or a sales inquiry. This enabled Airtel to provide personalised customer experiences across various communication channels. Aerospike plays a critical role by providing a common database layer that supports high transaction rates and processes 350 million customer records in real time. This allows Airtel to automate the analysis of trillions of records, thereby enhancing customer understanding and service delivery.
Improving services by boosting efficiency
Although the scale of Airtel’s modernisation program was initially intimidating, the benefits were soon apparent:
- Daily calls decreased by 35%
- Average handling time was reduced by 14%
- Repeat calls dropped by 10%
If public sector organisations adopt real-time data platforms, they could see similar results, such as up to an 80% reduction in server footprint, leading to significant cost savings and lower carbon emissions. Furthermore, reducing hardware simplifies operations, allowing teams to focus on more valuable projects.
The human element is also crucial in the digital transformation journey. Traditional organisational cultures within the public sector can be resistant to change, creating an environment where transformation efforts struggle to take hold. Overcoming this cultural inertia is one of the most significant challenges, but if teams can immediately perceive the benefits of new technologies, acceptance and adoption will follow more readily.
To fully realise the benefits of real-time databases, the UK public sector must address these interconnected hurdles head-on. A comprehensive strategy that simultaneously tackles technological, financial, cultural, and skills-related barriers is essential for achieving substantial improvements in citizen services, streamlined operations, and enhanced overall efficiency in government functions.
