This IDC Perspective is an introduction to the role of business models in public sector digital transformation (DX). It explains the role of business models in government and components of a business model, describes how business models can be transformed, provides advice on approaching creation or transformation of business models, and includes some government examples. Digital technologies garner much of the attention in digital transformation, but most DX initiatives derive their business impact from the business models that leverage those technologies. Business models define how businesses create and deliver value to customers and are core to both traditional and digitally fueled businesses.
"Governments are slowly beginning to understand the larger role that business models play in their organizations and how, for agencies saddled with legacy technology and process infrastructure, business models may offer the fastest way to modernization and transformation," says Thom Rubel, adjunct research advisor with IDC's IT Executive Programs (IEP). "Many government agencies are dipping into the same pool of technologies — but it's the business models that deliver the 'one-two punch' that can leapfrog government services into a completely new digital realm."