14: Channel Transformation
Develop a Channel Transformation Strategy that sets out the vision and roadmap for developing a new channel management approach. Other Information:
The Channel Management Framework requires a TGF program not only to undertake Channel Mapping of existing channel usage and
channel costs, but also to develop a Channel Transformation Strategy that sets out the vision and roadmap for developing a
new channel management approach centered around the needs and behavior of citizens and businesses. Government can learn a
lot from the best of private sector approaches to channel management, but also needs to recognize unique challenges and opportunities
that apply to channel management in the public sector. Once a full Channel Mapping has captured the current channel mix and
cost base, it is important to map out a strategy for the future desired channel mix, and the future customer experience over
different channels. Successful private-sector businesses tend to be more effective at this than government. They understand
that each channel opens up different ways to create value for customers, so they differentiate services across channels. They
also take a hard-nosed approach to channel management, with customers being encouraged to use the channels that are most efficient
from a business point of view. They also realize that channel shift is a complicated process, which needs planning over a
multi-year period. Transformational Government programs adopt a similar approach, setting out clear strategies for channel
transformation. Typically though they recognize two distinct differences between the public and private sector: * First, government
has an obligation to provide services on a universal basis, so is not able to pick and choose which customers it will engage
with through different channels. "Directed choice" towards cheaper channels is therefore the strategy selected for most citizen-facing
services (although a number of governments are increasingly looking to make Internet-only services the norm for businesses).
* Second, in terms of the online channel, government is in a unique position compared with any other online service provider.
Whereas an online bank or retailer is limited by the size of the online population in the market, a government can take action
significantly to increase that online population. "Digital inclusion" policies, aimed at increasing the proportion of potential
customers who have access to and confidence in using online channels, are therefore an important part of government channel
strategies which would not normally be seen in their private-sector counterparts. In addressing these issues, it is important
to recognize that government service delivery cannot be divorced from what is happening in the broader market: the expectations
of citizens and businesses are shaped by their experiences of other services. Demand for e-services across society will continue
to grow while other market players (in the private, voluntary and community sectors) will have a significant influence on
the attitudes and behavior of public service customers. The Channel Transformation Strategy must be informed by [13] Channel
Mapping, and must address how to shift customers into lower-cost channels while maintaining and reinforcing [10] Customer
Empowerment. The mixed economy of delivery of government services is developed with private and voluntary sector intermediaries
and SHOULD be addressed using the [7] Franchise Marketplace pattern. A significant effort is needed to include all stakeholders
in the governance of the Transformational Government program at an appropriate and effective level: see [3] Engagement with
Stakeholders. The key milestones and accountabilities for delivery of the Channel Transformation Strategy should be embedded
within the [8] Roadmap for Transformation.
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