How to improve public sector productivity and innovation? Bring in the SMEs
Summary
SMEs offer a unique combination of flexibility, innovation, and community-focused values that large corporations can struggle to match. The contributions of the SME sector go beyond service delivery; they represent a transformative force, driving the evolution of the public sector towards more efficient, inclusive, and adaptable services. The partnership between SMEs and the public sector is beneficial and essential to navigate the challenges of the 21st century, ensuring that public services remain at the forefront of innovation and can deliver value to citizens in meaningful and impactful ways.
SMEs can help to do more with less
The Public Sector is constantly being pushed to improve productivity and do more with less. SMEs can offer creative, flexible, and groundbreaking solutions to typical public sector challenges and drive transformation across the sector. This needs a shift from the tendency to navigate towards the safety of well-trodden, slow, and expensive routes; and instead towards the agility and innovation that is found in the SME data and technology sector. There are more benefits of working with SMEs than I can discuss here, but some of the main ones are creativity, productivity, and social value.
Unlock Creativity
The attitude of doing what’s always been done or working only with large organisations can feel like it delivers safe decisions. But it can lead to stale thinking and slow progress. SMEs might not be as proven as some of their larger competitors, but they possess an agility and innovative spirit that allows them to adapt quickly to new technologies and methodologies. They can offer creative solutions to public sector challenges that can bring unique value and accelerate digital transformation. For public sector organisations who want to become more data driven, SMEs can implement innovative solutions faster than their larger counterparts, who have complex bureaucratic processes. By focusing on specialised areas of expertise, SMEs bring knowledge and innovation to public service delivery, often pioneering approaches that are often later adopted on a larger scale.
Approaches that drive productivity
The Chancellor has recently announced the drive for improving productivity in the public sector, and this can’t be achieved by just doing more of the same. A productivity shake-up needs a fresh approach, and looking to the SME sector can produce the solutions needed. Larger organisations will take more traditional approaches, with lengthy discovery projects and overhauling systems and processes that can take years to implement. The SME sector is full of different approaches to delivering solutions, many of which can be achieved at a more rapid pace.
Because of their size, SMEs working with the public sector need to help them to become independent and self-sufficient to avoid the long-term, co-dependency relationships often accompanying service tendering. By championing such collaboration, SMEs help break down the traditional barriers to innovation, speeding up the process in the short term, whilst simultaneously upskilling the public sector. I’d personally love to help build a public sector proficient in digital technology and capable of continuously improving and adapting to meet the changing needs of society.
Inherent Social Value
We might not have big teams dedicated solely to creating social value, but SMEs can bring a genuine value through their close ties with local communities and their commitment to local development. As SMEs are often part of a local economy, they understand and care about the unique needs of their community they serve. Increasing apprenticeships offers a way for SMEs to access and nurture talent from within their local community, promoting social mobility and equal opportunities as they offer jobs and training that reduces economic disparity. SMEs are not just service providers; they actively contribute to building resilient and inclusive communities, highlighting their transformative impact on public services.
Shaping a better future for the public sector
SMEs play a vital role in driving innovation in the public sector. They bring agility, community integration, and open collaboration, which can enhance the quality and delivery of public services. By focusing on social value and inclusivity, SMEs are critical players in shaping a future where public services are more efficient, effective, and aligned with communities' needs. Fostering an environment that supports SMEs in public service delivery is crucial to achieving transformative outcomes and ensuring that public sector offerings remain responsive, equitable, and forward-thinking.
About Modular Data
Modular Data are the Data Product People – an innovative UK SME that is revolutionising the public sector with a fresh approach. Their mission is to empower public sector teams with actionable insights and the capability to create them, applying data product thinking to data transformation to prioritise business goals and deliver immediate and scalable value
Heather Cover-Kus
Heather is Head of Central Government Programme at techUK, working to represent the supplier community of tech products and services to Central Government.
Ellie Huckle
Ellie joined techUK in March 2018 as a Programme Assistant to the Public Sector team and now works as a Programme Manager for the Central Government Programme.
Annie Collings
Annie joined techUK as the Programme Manager for Cyber Security and Central Government in September 2023. In this role, she supports the Cyber Security SME Forum, engaging regularly with key government and industry stakeholders to advance the growth and development of SMEs in the cyber sector.
Ella Gago-Brookes
Ella joined techUK in November 2023 as a Markets Team Assistant, supporting the Justice and Emergency Services, Central Government and Financial Services Programmes.