Top 2019 Forecasts: Digital Transformation, Blockchain, IoT, Cybersecurity and Analytics

As we get ready to turn the page on 2018, it’s a good idea to take a closer look at a few of the biggest trends likely to shape the government technology sector in 2019 and beyond.

In many organizations, digital transformation is one trend that’s definitely picking up steam. The concept of applying digital technologies to improve nearly all operational processes and consumer interactions has grown into an undeniable driver behind current modernization efforts. According to research from Gartner Inc., digital transformation reached a tipping point in 2018, as more organizations expanded their digital capabilities. Gartner analysts reported in October that a third of all organizations will refine and scale up their digital transformation initiatives in 2019. This is nearly twice as many as the 17 percent of organizations Gartner cited in 2018.

At Conduent, we're among those organizations working hard to meet evolving digital transformation goals, modernizing our operations and many of our offerings to increase agility and keep pace with growing consumer-driven digital demands.

For state government agencies, digital transformation often requires exceptional juggling skills, as executives must find ways to keep up with constituent demands, while simultaneously working within strict budgetary constraints. Despite their challenges, however, state government executives do see the potential for significant operational improvements if they can streamline and/or ease the complexity of traditional, formerly manual, paper-based processes. This is why so many states are evaluating every conceivable method to help meet constituent demands for online, digital access to government forms and applications. This also explains why digital transformation ranked in the top ten of the National Association of State Chief Information Officers (NASCIO) annual tech trends survey report.

In addition to digital transformation, a few additional technology trends that state government leaders should keep an eye on include:

• Blockchain is poised to make big gains, especially in use cases that require strong identity management, and/or extensive coordination across multiple state programs, or in operations that require a payment disbursement method that doesn’t rely on mailing paper checks.
• Internet of Things (IoT) presents another key ‘connected state government’ opportunity. IDC forecasts IoT spending will grow 13.6% per year from 2018 to 2022, reaching $1.2 trillion in 2022. NASCIO has highlighted several ways states are already using IoT sensors to detect patterns or monitor structures or areas -- to improve efficiency and safety for their constituents.
• Mobility and cloud services will continue to surge across all levels of government, as they have across private sector enterprise operations.
• Cybersecurity and privacy issues may also take center stage, as the risk of breaches and other potential data losses remains high, and is unlikely to subside.
• Advanced analytics (including all types of tools) can help state agencies measure more of the data that flows through daily operations to help state leaders determine how best to optimize mission-critical processes.

Early in 2018, Gartner VP Rick Howard laid out the unique situation that government executives face. “Government CIOs have conflicting priorities — to bring transformative change to their organizations, while pursuing compliance-oriented priorities. They will need to work constructively with other business leaders to agree how to balance risk and innovation to support digital transformation,” he explained.

This is why we will continue working to help our state government partners overcome their biggest organizational, technological and regulatory difficulties, so they can keep up with the pace of change and achieve their most coveted goals.