OP ED by Jonathan Brabant, Workday New Zealand Director
The need for digital transformation is palpable in New Zealand’s public sector. At the end of last year, NZTech released its manifesto that stresses the importance of technology to our country’s future.
According to Graeme Muller, NZTech CEO, “The next Government must support the use of technology to transform the economy, lift the performance of New Zealand industries, and
create high-value jobs.”
Similar to many countries around the world, the public sector in New Zealand has a widespread influence over the population of the country, and is often under scrutiny as to where resources, supported by tax dollars, are being spent. Across the globe, the public sector also displays the incredible power of integrating technology solutions into systems and processes, especially when it comes to cloud and, increasingly, artificial intelligence (AI).
Cloud-based Software as a Service (SaaS) solutions are having a noticeable impact, with forward-thinking councils and organisations partnering with trusted vendors to bring about change. HR and finance departments are a clear example of this in action. The shift is not just about keeping pace with technological advancements but about fundamentally improving efficiency, security, and cost-effectiveness in public service operations.
The shift from legacy systems to cloud-based solutions
Historically, public sector organisations have relied on traditional systems based on legacy hardware that are fraught with difficulties. These systems often require extensive customisation, leading to prolonged deployment periods and high maintenance costs. Many councils continue to struggle with outdated systems that are costly to maintain and slow to adapt to new requirements.
Reports on Government IT systems published this year reveal that many agencies have ageing back-office infrastructure and overall digital costs are increasing. With a $12 billion digital and IT ‘wishlist,’ as reported by Radio New Zealand, $5 billion is said to be set for cloud-first technologies, with an overhaul of key systems – including finance, HR, and payroll – at the top of the list.
It has been proven that modern SaaS solutions provide a streamlined approach to these linchpins of any organisation. Platforms such as Workday are designed to be agile and easily configurable, reducing the need for extensive customisation. And demand is increasing.
According to a report by IDC, SaaS applications continue to be the largest source of public cloud services revenue, accounting for nearly 45% of the total in the first half of 2023.
Dave McCarthy, research vice president, Cloud and Edge Infrastructure Services at IDC, commented, “The cloud’s dynamic nature and the continuous evolution of cloud services make it an ideal platform for organisations to adopt new technologies. This creates a great opportunity for the cloud service providers to offer comprehensive support and management services, reducing the burden on IT teams and accelerating the deployment and integration of new technologies.”
A word for security, compliance, and real-time analytics
If we consider what matters to public sector organisations and departments, we quickly think of security and compliance, and the enhanced capabilities the cloud offers, including real-time analytics.
One of the standout benefits of SaaS solutions is their advanced analytics capabilities. Cloud-based platforms offer real-time insights from a centralised data source, enabling more informed decision-making. Additionally, SaaS solutions that are able to integrate external data with core HR and finance information allows departments to analyse data comprehensively and make decisions without needing extensive IT support. From here teams can drive forward strategies and initiatives with a broader, more informed picture.
Security remains a top concern for public sector organisations, given the sensitivity of the data they handle. Traditional systems often fall short in providing robust security measures, leading to vulnerabilities and compliance issues. Top tier cloud-based SaaS providers have stepped up with advanced security protocols and compliance certifications. These certifications reassure public sector organisations of stringent security standards, ensuring data remains protected against potential threats.
Future-proofing with AI
As we move deeper into the era of AI, SaaS platforms are positioned to enhance new opportunities available to public sector teams and organisations. Cloud-native platforms continuously integrate new AI features, which allows for seamless integration of the continuously evolving features and functionality AI offers.
New AI capabilities can enhance employee experience by automating routine tasks, providing predictive insights into areas such as payroll and forecasting, or supporting customer service teams by fielding queries quickly and efficiently. These capabilities not only improve overall productivity but also helps the public sector adapt and understand new technologies impacting the globe first-hand.
Embracing the future of public sector technology
For New Zealand’s public sector leaders, the message is clear: the time to embrace SaaS solutions is now. The move away from outdated, inefficient systems towards agile, cloud based platforms presents a significant opportunity for transformation.
To consider the value presented to the public sector, in the United Kingdom, government purchasing organisation Crown Commercial Service deployed Workday to replace separate systems for HR, finance, learning, and multiple manual offline processes.
Benefits of the deployment include the ability of senior management to access data directly and look at it live in meetings; reduce administration workloads by consolidating headcount and people cost reporting; and streamlining supplier invoice settlement and eradicating debt aged 91+ days.
Furthermore, in the United States, organisations such as the City and County of Denver and Clark County, Washington, are achieving significant, measurable benefits with Workday.
Through the auto-generation of asset accounting, Denver has saved up to 20 hours per month, allowing more time for the analysis of new assets. Using Workday, Clark County completes payroll 60% faster than previously and saves US$1.6 million per year, with 9,600 fewer general ledgers managed.
As we advance through 2024, the potential for digital transformation in New Zealand’s public sector is vast. Seizing this opportunity to modernise and innovate will not only address current challenges but also set the stage for a more dynamic and efficient future in public service.
