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Table of Contents
Introduction....................................................................................................................................3

Business Strategy and Digital Innovations..................................................................................3

Digital Innovations as Catalysts for Business Strategy..............................................................4

Socio-Technical and Soft Aspects of Business Analytics............................................................6

Conclusion and Recommendations..............................................................................................8

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Introduction
Government Digital Data and Strategy is mainly focused on the development and delivery of
connected and accessible services by using advanced technologies which will be easy to use,
fully integrated and personalized according to the needs of users in an innovated manner. This
strategy is fully focused on the development of such kind of services by using digital innovation
which will improve user experience. Government business strategies are highly essential for
guiding companies to work accordingly in the accomplishment of their goals and objectives.
When governments aligns some business strategies then companies are also needed to follow
them and keep their goals and objectives align with the government business strategy. Business
strategies helps organizations and governments to accomplish their goals and objectives by
following a certain roadmap to make decisions, allocate resources and adoption according to the
changed circumstances. In this report, it will be analyzed that how business strategies and digital
innovation can reshape business profits and revenues and why is it necessary to work on digital
innovations.

Business Strategy and Digital Innovations

Business strategy can be defined as the framework followed by any organization or country to
achieving their goal. The data and digital government business strategy was mainly evolving
around the delivery of connected and easily accessible services by using data and digital
innovation for all the people by using scalable and secure architectures, adopting to emerging
technologies and modernizing the existing investment approaches, building and maintaining
trust, connecting with data, digital and cyber security and following legislation (Dawes,
Vidiasova, & Parkhimovich, 2016). There are variety of digital initiatives taken by the
government discussed in the selected case study like the implementation of digital ID system for
keeping information of people safe, easy identity verification on the whole state, government,
territory and private sector services, the foundation of myGov as a primary digital front door to
do content and account management, adoption to advanced AI technologies in a safer, ethical
and responsible manner, using stronger frameworks for improving networks, systems and
hardware from cybercriminal attacks.

There is strong relationship between business strategy and digital innovation. Business strategy
and digital innovation are closely related and mutually independent (Di Vaio, Palladino, Pezzi, &
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Kalisz, 2021). Digital innovation has changed the ways according to which companies operate
for completing their goals and creating value. Digital innovation is one of key element to be
considered in the formulation and execution of business strategies because it can help them to
innovate, differentiate themselves from others and adopt to more advanced, easier and useful
methods for getting success in the competitive and dynamic environment (Ciriello, Richter, &
Schwabe, 2018). Business strategies allows governments to form a key framework according to
which they will accomplish their goals and objectives and if digital innovation will not be
incorporated then it is hard to fulfil goals and objectives timely and efficiently because digital
innovation can allow to complete a task in an easier and creative manner.

The government data and digital strategy is aiming to reform Australian Public Service and there
is a lot of work required to be completed for the accomplishment of its goal. It is aiming to
utilize advanced technologies for maintaining data and staying connected with digital world.
However, it is already providing good quality of service to people and business but it is still
aiming to reshape it by expanding to myGov and Digital ID systems. It is aimed that it will play
integral role in improving service delivery, decision making, policy and programs evaluation and
public trust on the government. Moreover, huge time will be saved in collecting same
information again and again and easy services delivery and designing will be possible. It will
replace outdated technologies for improving productivity and functionality along with addressing
cyber security vulnerabilities. The aimed system will allow easy management, reduced risks and
threats because it will be fully updated with legislations, policies, standards.

The government data and digital strategy is aiming to work more efficiently for the benefit of its
people by integrating various types of advanced digital technologies like artificial intelligence
(Bertot, Estevez, & Janowski, 2016). For this purpose, it has reshaped the previous strategy
thoroughly and improved it by adding multiple new things for improving reliability and
efficiency. For this purpose, various types of initiatives have been taken by the government and
business strategy is altered for the convenience of its people. However, it also kept a strong eye
on cybercriminal attacks while integrating advanced digital innovations to maintain
confidentiality, integrity and accuracy of data of its people.
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Digital Innovations as Catalysts for Business Strategy

Digital innovations works as enablers to do implementation of business strategy along with the
use of technological advancement to accomplish goals. It also gives competitive advantage
because when an organization use digital innovation it differentiates itself from others in the
market. In the case of government it will allow the government to provide more good services to
its people as compared to other governments. The strategic adoption of various kinds of
technologies like artificial intelligence, big data analytics and machine learning can allow
government to offer more quality of services according to the needs of their people and in an
easy and cost friendly manner. In this way, the implementation of business strategy becomes
easier with differentiation. Digital innovations also streamlines business operations, plays major
role in reducing cost and improving efficiency. Many technologies like cloud computing, internet
of Things, robotic process automation plays major role in optimizing procedures, minimizing
manual interactions and automating repetitive tasks (Bleicher & Stanley, 2017). In this way, it
supports the successful implementation of business strategy by staying focused on growth and
expansion.

Digital innovations mainly improves experience of users which is the main focus of the strategy
of the government to make convenience for the people of its country. Government is utilizing
multiple types of technologies like social media platforms, mobile applications and personalized
marketing for staying connected with its people and is delivering personalized products,
communications and services for strengthening loyalty and intention of its people. However,
agility and adaptability is also highly essential for success and digital innovation allows to
respond quickly to the changes, and emerging trends. In this way, government can also make
data driven decisions by using big data analytics, business intelligence and predictive modeling
to gain more valuable insights so that it can utilize all the available opportunities and optimize
resource allocation.

However, there is also major influence of business strategies on the adoption of digital
innovations like business strategy helps in the selection and adoption of required digital
innovation which will be aligned with their goals and aims so that technologies can be prioritized
for supporting their initiatives and achieve efficiency. Business strategies also puts impact on the
good quality resource allocation decisions like talent acquisition, investment in technology
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infrastructure and R&D (Research and Development). When successful digital innovations are
adopted then it also require effective change management strategies so that they can align with
the culture, structure and strategic objectives of the country government. In this situation,
business strategies works as the framework for change management, fostering innovation
culture, and communication goals and objectives.

Business strategies also works for driving partnerships and collaborations for effective resource,
capabilities and external expertise utilization to accelerate digital innovation. For this purpose,
technology vendors, research institutions and industry partners can collaborate with the
government to share best practices, and co-create innovation solutions to achieve strategic
objectives (Holotiuk, 2017). Digital innovation and business strategies can influence and
catalyze each other in implementation. Business strategy puts impact on the risk appetite and
tolerance to adopt advanced technologies for working on innovation so that more informed
decisions can be formed based on the priorities.

Socio-Technical and Soft Aspects of Business Analytics

To analyze socio-technical and soft aspects of the relationship among digital innovation and
business strategy, it is highly important to understand how these factors makes interaction for
shaping culture, results and dynamics. The following are the socio-technical aspects of business
analytics.

Organizational Culture and Change Management

Digital innovations can only work efficiently by making significant changes in the existing
procedures, behaviors and structures. However, only technical capabilities do not play integral
role in the successful integration of new technologies in the business strategies but there is also a
major role played by the effective change management and cultural readiness (Maamari &
Saheb, 2018). For example, the implementation of digital ID system by the government, there
will be need for providing training to employees to use the system, workflows will be redesigned
and a culture of data-driven decisions making will be fostered.

Human Factors and User Experience

There are variety of factors involved in the acceptance and usability of digital innovation like
accessibility, perceived usefulness and user experience design. When human centered design
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principles are ignored then people hesitate in the adoption and technology implementation is
negatively affected (Stanton, et al., 2017). For example, the poor designing of myGov can
frustrate people to use it and people will try to keep using the older methods for accomplishing
their tasks or to find some alternative easy methods.

Ethical and Social Implications

The implementation of digital innovations can also raise various types of ethical concerns
regarding data privacy maintenance, security, job displacement and algorithmic bias. Business
strategies may need to consider these ethical implications as well in the utilization of digital
innovation so that potential risks can be avoided and mitigated to protect from negative
consequences (Mikalef, Pappas, Krogstie, & Pavlou, 2020). For example, any type of security
vulnerability can leak personal data of hundreds of hundreds of citizens saved at myGov or
digital ID systems can make people at difficulty if their ID cards details is shared with any third
party due to any external breach.

Soft (non-digital) Aspects

Leadership and Vision

There is major role played by strong leadership, effective communication and clear vision on the
successful adoption of the digital innovation because leaders can motivate, encourage and
engage people. Leaders can only play major role in the attraction of making technology
investment, driving change and fostering innovation (Chhotray, Sivertsson, & Tell, 2018). For
example, the head of IT department can inspire other departments to embrace new advanced
technologies for meeting with changing market conditions in an easy and effective manner.

Collaboration and Stakeholder Engagement

Digital innovations can only work efficiently when they are collaborated with external
stakeholders as well like suppliers, customers, industry partners and regulators. It is highly
essential to keep stakeholders involved, engaged and maintain stronger relationships with them
throughout the process of innovation because it can enhance trust and drive more successful
outcomes (Shackleton, et al., 2019). For example, if government is aiming to launch a
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sustainability initiative then it will be useful for it to make collaboration with NGOs, supply
chain partners and other companies for obtaining meaningful impact.

Learning and Adaptability

When digital innovations are adopted then it required a culture in which continuous learning,
adoptability and experimentation is promoted. Individuals and government is willing to take risk,
iterate on their strategies for getting competitive advantage in the rapidly changing environment
and to do learning from their mistakes (Collie, Holliman, & Martin, 2017). For example,
Amazon and Google encourage their employees to keep doing experiments by using new ideas
from various initiatives like “Day One”, “20% Time: etc. which fosters the culture of agility and
innovation in the company.

Broader Implications and Societal Impact

Digital innovations are very stronger and they have potential for creating various types of
opportunities and plays major role in improving profits, satisfaction, efficiency and reduce costs
and saves time but they also risks exacerbating existing inequalities. There is digital divide
which is related to the disputes in the technology access, connectivity with internet,
unavailability of digital skills etc. which can increase socio-economic gap. For example, the
areas which do not have good quality of internet service may face difficulties in accessing
myGov portal to perform variety of tasks and can face delays and problems in the completion.

However, traditional jobs can also highly negatively influenced by increased automation and
digitization which may lead to job displacement and reskilling of workforce. Hence, these kinds
of problems should be addressed by the business strategies so that these challenges can be
overcome by making investment in employee training, fostering job transitions and promoting
lifelong learning (Whitehead, 2017). For example, many leading companies like IBM and
Microsoft offer various types of online training certifications and programs which helps
individuals to improve their knowledge set, skills and capabilities to stay fit with the changing
requirements of job positions of future. Moreover, the use of ethical artificial intelligence and
performing responsible innovation is also highly important to keep following digital innovation.
Hence, it is highly essential to prioritize ethical considerations, transparency and accountability
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in business strategies for ensuring that aimed technology developments may be beneficial for all
the society.

Conclusion and Recommendations

The data and digital government strategy is aiming to make alternations in its existing business
strategy to improve the experience of its people and adopt digital innovations. For this purpose,
the selected case study showed that the Australian government started some new initiatives like
the use myGov for management of data and advanced ID systems. However, it also had updated
its business strategies for making all the services for all the people easily available, making every
service to be easy, simple and seamless, adopting to advanced digital technologies, and
considering cyber security attacks for the protection of data privacy and confidentiality. There is
strong relationship between business strategies and digital innovation which is also influenced by
various factors. There is high significance of strategic alignment between goals and technology
investment for successful adoption of digital innovation.

However, it is recommended that government should be focused on the development of such

kind of digital strategy which will be fully aligned with its goals and business objectives and it
should prioritize change management techniques for facilitating users in the adoption of digital
innovation by involving all the stakeholders in the process. Government should also establish
guidelines and frameworks for responsible and ethical digital innovation along with recognition
and addressing societal challenges relevant to digital innovation.
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