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Digitalisation of finance activities:
challenges and opportunities
Edwin Lau
Head of Division, Budgeting and Public Expenditure,
Public Governance Directorate
40th Senior Budget Officials Meeting,
Tallinn, Estonia, 5-6 June 2019
Overview of digitalisation at
the OECD
The OECD’s work on the
digitalisation of society
The Going Digital project
gives policy makers the tools
to help societies prosper in a
digital and data driven world
2019 Ministerial Meeting
focused on the opportunities
and challenges in harnessing
digital transition for
sustainable development.
Digital governments for digital economies and societies
OECD Recommendation on Digital Government Strategies
Analogue
Government
Closed operations
and internal focus,
analogue procedures
E-Government
Greater transparency and
user-centred approaches,
ICT-enabled procedures
Digital Government
Open and user-driven
approaches, process and
operational transformations
Digital Transformation of the Public Sector
OECD Recommendation on
Digital Government Strategies
Openness and
Engagement
Governance and
Coordination
Capacities to Support
Implementation
1) Openness, transparency
and inclusiveness
2) Engagement and
participation in a multi-
actor context in policy
making and service
delivery
3) Creation of a data-
driven culture
4) Protecting privacy and
ensuring security
5) Leadership and political
commitment
6) Coherent use of digital
technology across policy
areas
7) Effective organizational
and governance
frameworks to coordinate
8) Strengthen
international cooperation
with other governments
9) Development of clear
business cases
10) Reinforced
institutional capacities
11) Procurement of digital
technologies
12) Legal and regulatory
framework
Creating Value Through the Use of ICT
Non-OECD members: Argentina, Brazil, Colombia, Costa Rica, Egypt, Kazakhstan, Morocco, Panama,
Peru, Russia
10 non-
OECD
countries
adopted
Open Data is today a very trendy issue
Governance
Data-driven
public sector
Open Data
What are the main characteristics of a
Digital Government?
© OECD
OECD Concept Note “Digital Government Framework (forthcoming) and OECD Digital
Government Indicators (2019)
Emerging and disruptive technologies
offer new opportunities for governments
Predictive Analytics
Blockchain
Transform policymaking to be more effective and experimental
Agile in delivering personalised and efficient services
Artificial Intelligence
Data
Data analytics
A data-driven public sector….
 starts with recognizing data as a key asset for governments
 connects data-sharing efforts to open data and data
analytics
 transforms the design, delivery and monitoring of public
policies and services
 removes barriers to managing, sharing and re-using data
 recognises the importance of publishing data openly and
considering how it is used internally
Public sector core resources: money,
people, and…data!
Anticipatory
governance
• Forecasting to
proactively identify
developments and future
need
• Foresight to prepare for
multiple plausible
alternative outcomes
Design and
delivery
• Better predicting policy
solutions
• Engaging with citizens
as co-value creators
• Responding better to
citizen needs
Performance
• More efficient use of
resources
• Increase in resources
• Higher quality monitoring
and evaluation
• Continuous improvement
Applying data to create public value
11
Data underlies NZ approach to social investment
Using data to understand customer needs from a person centric and long-term
perspective.
Proposing innovative solutions that meet citizens’ needs and deliver financial
savings.
Delivering, managing and monitoring services using the organization most able to deliver
the service, whether that be government or non-government providers.
Using performance data to adjust, add or drop programmes.
Evaluating programmes to identifying what works and what doesn’t, publishing
these results openly and feeding findings into the next set of decisions.
Social investment is an evolving approach to thinking long-term and
making informed choices on how best to improve people’s
wellbeing. At its core, it involves five key features:
12
New legal instruments from the OECD
Forthcoming
Recommendation on
Enhanced Access to and
Sharing of Data
2019 Recommendation
of the Council on
Artificial Intelligence
OECD resources for follow up
A Data-driven Public Sector: oe.cd/il/ddps-wp
Open Government Data Report: oe.cd/2pq
OECD Digital government website: oe.cd/dig-gov
Possible future work ?

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  • 1. Digitalisation of finance activities: challenges and opportunities Edwin Lau Head of Division, Budgeting and Public Expenditure, Public Governance Directorate 40th Senior Budget Officials Meeting, Tallinn, Estonia, 5-6 June 2019
  • 3. The OECD’s work on the digitalisation of society The Going Digital project gives policy makers the tools to help societies prosper in a digital and data driven world 2019 Ministerial Meeting focused on the opportunities and challenges in harnessing digital transition for sustainable development.
  • 4. Digital governments for digital economies and societies OECD Recommendation on Digital Government Strategies Analogue Government Closed operations and internal focus, analogue procedures E-Government Greater transparency and user-centred approaches, ICT-enabled procedures Digital Government Open and user-driven approaches, process and operational transformations Digital Transformation of the Public Sector
  • 5. OECD Recommendation on Digital Government Strategies Openness and Engagement Governance and Coordination Capacities to Support Implementation 1) Openness, transparency and inclusiveness 2) Engagement and participation in a multi- actor context in policy making and service delivery 3) Creation of a data- driven culture 4) Protecting privacy and ensuring security 5) Leadership and political commitment 6) Coherent use of digital technology across policy areas 7) Effective organizational and governance frameworks to coordinate 8) Strengthen international cooperation with other governments 9) Development of clear business cases 10) Reinforced institutional capacities 11) Procurement of digital technologies 12) Legal and regulatory framework Creating Value Through the Use of ICT Non-OECD members: Argentina, Brazil, Colombia, Costa Rica, Egypt, Kazakhstan, Morocco, Panama, Peru, Russia 10 non- OECD countries adopted
  • 6. Open Data is today a very trendy issue Governance Data-driven public sector Open Data What are the main characteristics of a Digital Government? © OECD OECD Concept Note “Digital Government Framework (forthcoming) and OECD Digital Government Indicators (2019)
  • 7. Emerging and disruptive technologies offer new opportunities for governments Predictive Analytics Blockchain Transform policymaking to be more effective and experimental Agile in delivering personalised and efficient services Artificial Intelligence Data
  • 9. A data-driven public sector….  starts with recognizing data as a key asset for governments  connects data-sharing efforts to open data and data analytics  transforms the design, delivery and monitoring of public policies and services  removes barriers to managing, sharing and re-using data  recognises the importance of publishing data openly and considering how it is used internally Public sector core resources: money, people, and…data!
  • 10. Anticipatory governance • Forecasting to proactively identify developments and future need • Foresight to prepare for multiple plausible alternative outcomes Design and delivery • Better predicting policy solutions • Engaging with citizens as co-value creators • Responding better to citizen needs Performance • More efficient use of resources • Increase in resources • Higher quality monitoring and evaluation • Continuous improvement Applying data to create public value
  • 11. 11 Data underlies NZ approach to social investment Using data to understand customer needs from a person centric and long-term perspective. Proposing innovative solutions that meet citizens’ needs and deliver financial savings. Delivering, managing and monitoring services using the organization most able to deliver the service, whether that be government or non-government providers. Using performance data to adjust, add or drop programmes. Evaluating programmes to identifying what works and what doesn’t, publishing these results openly and feeding findings into the next set of decisions. Social investment is an evolving approach to thinking long-term and making informed choices on how best to improve people’s wellbeing. At its core, it involves five key features:
  • 12. 12 New legal instruments from the OECD Forthcoming Recommendation on Enhanced Access to and Sharing of Data 2019 Recommendation of the Council on Artificial Intelligence
  • 13. OECD resources for follow up A Data-driven Public Sector: oe.cd/il/ddps-wp Open Government Data Report: oe.cd/2pq OECD Digital government website: oe.cd/dig-gov