The document discusses innovation in the public sector and identifies three key lessons from innovation masters - public organizations that are leading in innovation. The three lessons are: 1) Embracing ambitious change by anticipating disruption and rising citizen demands. 2) Investing wisely by balancing new initiatives with essential services. 3) Prioritizing collaboration through partnerships that fuel innovation. Innovation masters differentiate themselves through these practices to better serve citizens.

1. 1Masters of Innovation
LESSONS FROM
THE MASTERS
PUBLIC SERVICE INNOVATION:

2. 2Masters of Innovation
The majority of public sector organisations expect
to be disrupted over the next 3 years.
There are several drivers, including increasing
citizen expectations, technology advancements
and changing regulations.
Meanwhile, >80% believe they have sufficient
investment capacity for transformation.
Now more than
ever, public sector
organisations
recognise the need
for innovation.
2Masters of Innovation

3. 3Masters of Innovation
67.5% of all
respondents agree or strongly
agree that “we have pockets
of successful innovation, but
innovation is not pervasive
throughout the organisation.”
Government organisations
that resist transformation—
or who fail to pursue it
thoughtfully—are becoming
less equipped to deliver
economic and social value
to citizens.
Yet for the majority of public sector
organisations, innovation is far from
prevalent.
3Masters of Innovation

4. 4Masters of Innovation
On the other hand, the leading 4.2% of
public sector organisations are
delivering and embracing
transformation.Accenture surveyed 2,030 C-level leaders of public sector organisations
across the world to find out what distinguishes the best from the rest.
We call them INNOVATION MASTERS.
4Masters of Innovation

5. 5Masters of Innovation
Over the past three years, innovation masters were
approximately:
• 2x more likely to have greatly improved KPIs
• 1.5x more likely to have greatly improved
the volume of citizens served or important
projects completed
• 1.5x more likely to have greatly improved
positive social and economic outcomes
INNOVATION MATTERS

6. 6Masters of Innovation
EMBRACE
AMBITIOUS
CHANGE
01
LESSON
INVEST
WISELY02
LESSON
PRIORITISE
COLLABORATION03
LESSON
What do
Innovation
Masters do
differently that
enable them to
succeed more
than others?

7. 7Masters of Innovation
01
LESSON
EMBRACE
AMBITIOUS
CHANGE
INNOVATION MASTERS
DEMONSTRATE A
STRONG ABILITY TO
SENSE, REACT, AND
ADAPT TO DISRUPTION
AND RISING DEMAND
FOR SERVICES.
On average, they are nearly 20%
more likely to anticipate and
prepare for disruption.
“We expect our organisation to be
disrupted to a large or very large
extent by the following in the next
3 years…”
FIGURE 1:

8. 8Masters of Innovation
To embrace ambitious change…
MOVE beyond traditional strategic planning. Instead, reimagine
your organisation’s relevance when faced with disruptive forces.
DEPLOYanalytics and other advanced techniques to
proactively model and respond to these forces.
IDENTIFY bold change priorities—such as creating nimble
workforces that are better equipped to move from one challenge
to the next.
BECOME more citizen-centric by offering tailored and
personalised services that anticipate citizen preferences and even
allow at times for co-creation alongside citizens.
PILOT organisational models that take inspiration from, among
others, Government as a Platform, the sharing economy, and
digital innovation-as-a-service.
RESHAPE procurement policies to make contracting easier,
more transparent and responsive to evolving needs.
BECOME AN
INNOVATION
MASTER

9. 9Masters of Innovation
LESSON
INNOVATION MASTERS STRIKE THE RIGHT BALANCE BETWEEN
DELIVERING ESSENTIAL SERVICES, WHILE INNOVATING IN
PROMISING NEW DIRECTIONS.
This thoughtful and measured approach is in contrast to peers who are more likely to jump
at full speed into new models and systems—an eggs-in-one-basket approach that makes it harder
to be agile and may mean forging ahead without the necessary support and resources in place.
Which best describes your organisation’s typical approach to making investments?
INVEST
WISELY
02
FIGURE 2:

10. 10Masters of Innovation
BECOME AN
INNOVATION
MASTER
To invest wisely…
PACE change initiatives at a speed appropriate to ensure
necessary funding, commitments and talent.
STRATEGICALLY BALANCE investments in new and
old models and systems.
CONFIDENTLY SHED low-value services and assets.
MOVEaway from “incremental budgeting” where programs
are automatically renewed without evaluation.

11. 11Masters of Innovation
LESSON
PRIORITISE
COLLABORATION
INNOVATION MASTERS ARE SAVVY AT TAPPING INTO ECOSYSTEMS,
TO FUEL THEIR INNOVATION PIPELINES.
They collaborate with other Public and Private Sector Organisations, tapping into successful new
models and ideas. They are more likely than their peers to prioritise: research and development
with partners (+14%); innovation centres (+22%); and promoting ideas on external platforms
(+20%).
The National Health Service (United Kingdom) is developing
an artificial intelligence (AI) lab—one that will host academics
and technology firms to collaborate on promising healthcare
opportunities, such as early cancer detection and dementia
treatment. Previous NHS-led collaboration around AI led to
big breakthroughs. Among them: traffic lights that adjust
their signals to allow ambulances to pass quickly and
healthcare products designed for people with disabilities.
https://healthtech.blog.gov.uk/2019/08/08/introducing-nhsxs-new-national-
artificial-intelligence-laboratory/
Invest Ottawa (Canada) established a connected and
autonomous vehicle (CAV) testing environment to drive
investment, business growth and innovation. The facilities
provide a testing ground for autonomous vehicle and connected
city technologies. It’s the first of its kind in North America to
accelerate the safe deployment of driverless vehicles.
https://www.investottawa.ca/blog/invest-ottawa-and-strategic-partners-launch-the-first-cav-testing-
ground-of-its-kind-in-north-america/
03

12. 12Masters of Innovation
BECOME AN
INNOVATION
MASTER
To prioritise collaboration…
DEVELOP ecosystem partnerships to drive innovation forward,
including through the use of accelerators and incubators.
DEVELOP in-house innovation labs and studios to test and
scale innovations.
EXPLORE public-private partnerships and other cost-sharing
structures to fund innovation.
HIRE AND PROMOTE individuals with diverse perspectives,
skills, and backgrounds—including those who demonstrate an
aptitude for innovative ideas.
CREATE an internal ecosystem with a flexible workforce,
leveraging crowdsourcing and on-demand skills, to improve
access to talent.

13. 13Masters of Innovation
The innovation masters in our analysis have differentiated
themselves in at least three areas:
EMBRACE AMBITIOUS CHANGE
INVEST WISELY
PRIORITISE COLLABORATION
Whether they’re national governments, municipal agencies or universities, these
innovative public sector organisations never pursue innovation for innovation’s sake.
They continue taking a human-first approach to service delivery to stay relevant and
continuously serve citizens, businesses and their communities.
What will tomorrow’s
Innovation Masters achieve?
01
02
03
13Masters of Innovation

14. 14Masters of Innovation
Achieving More, Delivering Better with Innovation
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TELLME
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Author
Bernard le Masson
Senior Managing Director – Strategy & Consulting
bernard.le.masson@accenture.com
Acknowledgements
The author would like to thank Meghan Yurchisin, Mark Lyons, Louise
May, Bill Kilmartin, Gabriel Bellenger and Jenny Halvorson for their
work and contributions to this report.