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Digital Transformation in Local Governments: A Comparative Study
Digital Transformation in Local Governments: A Comparative Study
Abstract
In recent years, digital transformation has been increasingly playing a role in shaping the field of public
administration. In order to meet the emerging demands and needs for social, economic, political, and
other areas, public administrations are more frequently resorting to innovative digital solutions. This
situation triggers a major digital transformation in public administration. Digital transformation in public
administration has gained momentum with the spread of the Internet, the rapid increase in mobile
devices, and the emergence of e-government activities that have been realized through web and
mobile applications. In this context, digital transformation reveals different issues and practices than in
the past, especially in the delivery of public service. Local governments, one of the leading actors in
public service delivery, are also deeply affected by digital transformation and make significant changes
in business and transaction processes. On the other hand, given that local governmental units are
considered more democratic because it provides a form of government suitable for citizen participation,
it is argued that digital transformation can also contribute significantly to the formation of more
democratic government. The opportunities offered by the digital transformation constitute increasingly
more attractive environments for democratic interactions between public service recipients and the
state. It can also be said that there is a close relationship between digital transformation and institutional
capacity development of local governments. The digital transformation experienced by local
governments has initiated a major change in citizen relations, internal and external stakeholders and
institutional level. Digital transformation makes the dynamic management of processes inevitably. In this
study, it is aimed to draw attention to how the digital transformation in the world has changed local
governments and to apply the comparisons within the framework of practices and to show how the
process works at practical level. In this context, it will be made several evaluations related to the issue by
examining the practices which were and will be made by the local governmental units in special to
Turkey.
To cite this article: Mustafa Kocaoğlu and Hikmet Salahaddin Gezici. (2021) Digital Transformation in Local Governments: A
Comparative Study. Review of International Geographical Education (RIGEO), 11(8), XXXX-XXXX. doi:
10.48047/rigeo.11.08.XXXX
Conceptual Framework
When evaluated from past to present in a historical process, it is seen that each of the social stages
is characterized by some developments that can be considered as turning points. Invention of the
steam engine in the industrial age reveals the first revolution; invention of the electricity, the
second revolution with mass manufacturing; the development of information, communication
technologies and automation, the third revolution; and the widespread use of digital and
autonomous systems, the fourth revolution (Xu, David, & Kim, 2018). In this context, it is seen that
the concepts of “digital”, “digitalization”, and “digital transformation” come to the fore in this
period when is expressed as ‘Industry 4’.
The concept of digital is of French origin according to the Dictionary of Turkish Language
Association (Иида, 2020)(www.sozluk.gov.tr, 2020) and it has three different meanings. The first of
these meanings is “numerical”. The second is “displaying data electronically on a screen”. The
© RIGEO ● Review of International Geographical Education 11(8), Spring 2021
third is “electronic display of data on a screen”. According to the Informatics Dictionary (Tat‐Kei
Ho, 2002) digital means “belonging to a data consisting of digits of numbers as well as processing
and functional units that use this data”. Digitalization is “the process of transition from analog to
digital form”. In addition, digitization means “using digital technologies to change a business
model and provide opportunities of new revenue and value generation”. On the other hand, it is
accepted as “using the information obtained to transform digital technologies and business
operations”(Yankin, 2019).
Considering the concepts of digital and digitalization and all these meanings of these concepts,
it is understood that the important issue is computerization. It is seen that computerization has
become widespread in a period of about fifty years and the main determinant of both social and
business life. In the next process, the development emerging more specifically and effectively in
the computerization process has been the invention of the internet technology and the worldwide
spread and intensive use of this invention in a short time. Thus, with the “world wide web” (www),
the digitization process has been used to describe not only a digitization but also social,
economic, cultural, etc. multifaceted transformation (Gil-Garcia & Dawes, 2007).
This new era, which is characterized by the fourth industrial revolution and can be expressed as
“digital transformation”, has also influenced the institutions in a versatile and intensive way. As a
matter of fact, digital transformation is defined as “the holistic transformation, realized by
institutions in human, business processes, and technology elements in line with the opportunities
offered by rapidly developing information and communication technologies and changing social
needs, in order to provide more effective and efficient service and to ensure beneficiary
satisfaction” (Yankin, 2019). In this respect, digital transformation is the exposure of institutions to
the multi-faceted change and transformation of information and communication technologies,
and in the most general sense it is “the use of digital technologies to change a business model
and provide new income and opportunities of value generation” (Gershenfeld & Vasseur, 2014).
Therefore, digital transformation is used to describe “the process of digitization in detail and the
holistic transformation of organizations in human, business processes, and technology elements in
order to provide more effective and efficient service and to ensure beneficiary satisfaction in line
with the rapidly developing information and communication technologies and changing social
needs of the digital transformation process” (Yankin, 2019).
However, it is not correct to limit this period to only smart and connected machines where the
internet is used in many ways. This emphasizes a process that involves more. All these technologies,
from gene sequencing to nanotechnology and from renewable resources to quantum
computing, are among the important characteristics of the process in mention. In addition, digital
transformation affects the whole world by intertwining and fusing in all physical, digital, and
biological fields, and it has a meaning different from the previous transformation parameters with
these aspects (Pittaway & Montazemi, 2020).
The holistic effects of information and communication technologies on the structures and business
processes of institutions in modern terms are also considered as digital transformation. The internet
in this process is actively involved in all business processes. This situation brings about the
establishment of virtual networks between social media and people and Internet of and objects
(ErdoĞAn, 2020; Gershenfeld & Vasseur, 2014) With the increase in internet use in business
processes, the internet is now becoming an indispensable element in the production, marketing,
and presentation of goods and services. In this new era, with the support of internet technology,
it decreases the costs on the one hand and increases the speed in terms of doing business,
designing, data production, storage, and sharing on the other hand. Another feature of the digital
transformation process is the formation of Big Data. Big data emerges as a result of the
development of Artificial a number of detection technologies, and the Internet of objects. This
situation brings along the frequent use of all these technologies in management and enables an
environment where almost the needs of people who are the target audience of the management
can be met very quickly and intensely
Finally, digital transformation applications are now frequently used not only in the private sector
(enterprises) but also in the public sector. Although the private sector is in a pioneering position to
implement digital transformation applications in all structural and functional processes, it is
understood that this transformation movement has also been noticed in the public sector over
time and application-based initiatives have been made to keep up with the transformation in
question. Moreover, it is seen that particularly local governments become at the center of digital
transformation practices at local and urban levels and digital transformation studies are carried
out with a competitive approach for citizen satisfaction.
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Mustafa Kocaoğlu and Hikmet Salahaddin Gezici. (2021) Digital Transformation in Local Governments: A
Comparative Study.
Public administrations change their face day by day, and the tend to gain organizational skills
which can respond to the demands and needs of the society quickly. Local governmental units
in many countries, especially in the developed countries, play a dominant role in this
transformation process. Local governments, as the units closest to the public, perform critical tasks.
They are obliged to closely follow current developments in order to quickly take decisions and
take action. At this point, it is understandable that local governments make serious efforts to
benefit from all the opportunities offered by digital transformation.
Local governments are the first authority to which individuals apply when they need something or
are faced with problems. There is a general assumption that the role of local governmental units
is to support the local community (Kreiss & Brennen, 2014). It is possible to define local
governments as units that effectively and efficiently offer local public goods and services. These
units make important contributions to the operation and development of local democracy as well
as providing services. Local governments form opportunities for non-governmental organizations
to take part in decision-making processes. In this framework, local governments are considered
to be the most appropriate actors in order to provide direct and fast local services (Mossberger,
Wu, & Crawford, 2013; Öztemel, 2018),
Local governments have all locally interrelated and articulated functions and services that are
locally offered. These functions and services often develop as a result of specific problems, events
or local conditions. Local governments are democratically responsible and understand the
importance of locality and place; they also have the ability to ensure a wide variety of services
and to establish partnerships with different institutions. It is envisaged that local governments focus
on providing locally generated funds in the future, especially when providing local services. It is
expected from local governments to mobilize digital opportunities to ensure citizens’ participation
in decision-making mechanisms. The use of web portals, kiosks, and phones to provide public
services stands in our way as an inevitable development (Mergel, Edelmann, & Haug, 2019;
Onursoy, Turan, Yeşilyurt, & Astam, 2020). All these developments necessitate a radical change in
the visions and roles of local governments.
Public administration units change their working-style with the objectives such as improving service
delivery, providing more efficient and effective operation of institutional processes, ensuring
effective participation, increasing transparency, improving relations with stakeholders, and
ensuring citizen satisfaction. Non-public digital transformation practices aimed at achieving all
these goals direct digital transformation in the public sector as important sources of inspiration.
Digital transformation in the public sector means new ways of collaborating with stakeholders,
reshaping public service delivery, and differentiating forms of relationships. However, there is not
much systematic empirical evidence on how public administrations currently define digital
transformation in their daily practice, how they approach digital transformation projects, and
what the expected results are. In this context, it is seen that such concepts as digitization or digital
transformation are used interchangeably in the literature (Kreiss & Brennen, 2014; Öztemel,
2018)(Mergel, Edelmann and Haug, 2019: 1).
Digital delivery of public services makes the daily lives of citizens easier, increases their satisfaction
with the fulfillment of their demands, and can enable their access to service providers. For just
these purposes, local governments resort to digital technologies in order to adapt their institutional
structures and public service production processes to the current conditions of the day. These
efforts and much more describe the process called “digital transformation”, which is now the main
agenda in the corporate roadmaps of most local governmental units. Local governments are in
an ideal position for the deliveries of digital public service by integrating the data of state, private
sector, and citizen. In order to integrate corporate processes within the framework of digital
transformation, it requires a fundamental fictional change. Many local governmental units in the
world cannot dare such radical transformations. It is observed that local governments generally
tend to apply new technologies without forming an integrated institutional system for process
management. The fact that corporate processes do not undergo a fundamental digital
transformation in an integrated manner and are directed to piecemeal digital solutions brings
some problems with it (Hüseyin, 2018; Karaca & ÖZtÜRk, 2019; Pittaway & Montazemi, 2020). As a
matter of fact, digital transformation occurs as a result of the combined effects of various digital
innovations that change the existing rules of the present order in the institutions and constitute
© RIGEO ● Review of International Geographical Education 11(8), Spring 2021
new actors, structures, practices, values, and beliefs (ErdoĞAn, 2020; Hinings, Gegenhuber, &
Greenwood, 2018).
It is possible to list the main issues that should be given importance regarding digital transformation
in local governments as follows (BİLbİL; ErdoĞAn, 2019).
• Digital local governments should be established within the framework of improving service
provision to citizens, establishing economic activity, and developing democracy.
• Digital local governments should be aimed at the citizens. It is essential to institutionalize e-
governance between units within the organization and between institutions outside the
organization in order to ensure that the citizen can receive the service in the most effective way.
• Digital local governments require the presence of digital citizens (e-citizens). In other words, it is
necessary to give opportunities for access to digital services not only for a limited number of
citizens having the necessary electronic infrastructure but for all citizens.
• Digital local governments could potentially build up an opportunity to restructure public service
processes. Digitizing the existing services alone may not produce the desired result. Because
digital transformation envisages changing all corporate processes in a radical and integrated
manner. The singularly digitization of these processes does not mean that it becomes negative.
• Digital local governments are responsible for providing electronic infrastructure (e-capacity)
where each party can gain competitive advantages. Establishing such a collaborative
environment can offer important opportunities for feasible and sustainable partnerships between
the private and public sector.
• It is essential that digital local governments develop ways and methods to eliminate the
concerns of private and legal persons regarding information security. Because the privacy of
personal information appears as one of the most important issues in today’s world. If it is sure that
the privacy of all stakeholders and individuals is maintained, they will be willing to use digital tools.
• The satisfaction of the public services to be provided will increase, when digital local
governments are aware of the cultural change coming with digitalization.
Since it is integrated with the MERNIS system, individuals living within the borders of another local
government unit are prevented from actively participating in this platform. Individuals aged 13
and over have the right to vote through this address ((ErdoĞAn, 2019).
Digital transformation practices in local governments are spreading rapidly all over the world. It
would be appropriate to say that the COVID-19 pandemic has served as a catalyst for local
governments and central governments to accelerate their digital transformation efforts in the last
year (Kreiss & Brennen, 2014). As long as the ability of individuals to use digital facilities increases,
the demand for digital applications of local governments will also increase. Conditions of both
local governmental units and individuals need to be matured in order for these digital applications
to be widely implemented.
Conclusion
The development of mankind in the period from primitive society to information society, together
with the development of technology, causes not only individuals but also institutions to be seriously
influenced in a faster, more versatile, and intense way than ever before. In time, especially the
development of internet technology and its usage in a very large geography and dense
population in the world transforms not only the social lives of individuals but also the structure and
business processes of institutions.
Nowadays, in almost all sectors, institutions become incapable of doing business without using
technological means; they cannot remain indifferent to the changes brought about by internet
usage. On the other hand, competition has increased more than ever in almost all sectoral areas
throughout the world. The increase of competition at the national and international level has also
strengthened the perception that an institution will gain a competitive advantage as much as it
uses technology. The efficient and effective use of technological possibilities and the widespread
use of information technologies in all managerial processes show that technology is an
indispensable resource to stand out in competition. Accordingly, institutions have understood the
importance of changing their business methods and started to see it as an obligation. This situation
leads to determine new policies for the target audience and to implement new ways of producing
goods and services by developing new interaction opportunities.
This state of change and transformation coming with technology institutionally in all processes is
called “digital transformation”. In general terms, digital transformation is regarded as the process
of “not only all segments of society but also especially organizations making technology a part of
their lives through concrete applications”. Institutions operating in both private and public sectors
have started to develop new managerial strategies to ensure the satisfaction of the target
audience (customers / citizens) by providing quality service in a knowledge-based and intense
competitive environment within a digital transformation-oriented way. In this context, the issues
which have now become an absolute necessity for organizations are “building new digital
business models in order to adapt to digital transformation”, “developing digital corporate
strategies”, and “adapting the corporate culture to digital transformation”.
The basic and final meaning of digital transformation for institutions is shown as sensitivity to the
target audience and ensuring their satisfaction. The meaning of this situation for “public”
institutions is the satisfaction of the citizens. At this point, the institutions that come first to us are
local governmental units. Local governments are the administrative units that need digital
transformation applications because they are the administrative units closest to the citizen,
involved in almost every process of the social and daily life of the citizen, and are in direct
communication and interaction with the citizens. Especially with the COVID-19 pandemic process,
it is seen that local governments take steps towards more digitalization and developed
applications.
Looking at the samples of digital transformation practices in local governments in different
countries and cities within the scope of the study, it is revealed that the above assumptions are
confirmed. E.g., the Molenlanden Municipality of the Netherlands has undertaken an important
initiative before years; it has provided local services in a completely digital environment, instead
of establishing a physical town hall. Again in the same municipality, the satisfaction of citizens has
been tried to achieve with digital transformation applications on the one hand, while attempts to
provide services with the least cost have been prioritized on the other hand. Another important
point is the care shown for the protection of personal data. Here, the applications have been
made reliable in the eyes of the citizens, using cyber security elements with great care. Another
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Mustafa Kocaoğlu and Hikmet Salahaddin Gezici. (2021) Digital Transformation in Local Governments: A
Comparative Study.
example; the results obtained with the great digital transformation in the city of Dubai within 15
years are an indication of its success. As in the USA, social media and other digital environments
offering other interaction opportunities come to the fore as platforms that local governments have
started to use extensively. Local governments gain significant advantages with block-chain
applications as an important part of digital transformation processes. The local governments in
Turkey is seen if they do not have enough knowledge about block-chain. Muratpaşa
Municipality’s application in Turkey, “Neighbor Assembly” offers an important contribution that
can be converted into a direct democracy in the county. This system in which residents of the
district can share their opinions by registering on the web page in line with MERNIS records has an
infrastructure that can prevent active participation of those residing outside the district. This
remarkable project provides a good example of how local governments can make a high added
value contribution to democracy with digital facilities.
As a result, it is obvious that local governments are a major actor to spread digital transformation
to general public. Additionally, local governments, as the closest and effective actors in the
delivery of public services to the society, are in great need of digital transformation in order to
provide fast and quality service. Digital possibilities of local governments also having important
responsibilities in the development of democracy will make high added value if they are used in
this manner.
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