**4. Digitalization and innovation in public administration**

In line with the international framework, Italy is undergoing a process of transformation and innovation of the services to citizens and enterprises in a view of simplification, also through the use of digital technologies and of cooperation among all operators of the system.

The explosive and transversal effect of the new technologies will lead not only to a more efficient system but most of all to a shortening of the distance between public administration and users (either citizens or enterprises), to ease the access to service and to relaunch the economy, particularly in some strategic productive sectors such as tourism, culture, and agriculture.

In this context, the Italian government is at the forefront to reach the country's digital growth objectives and to accompany public administrations and users in a journey toward modernization and transformation.

The 2014–2020 Strategy for Digital Growth document defines precisely the planning for the transformation of the country. Consistently with this strategy, the Italian government has identified the main objectives, such as to guarantee to citizens and enterprises a secure and protected access to digital services, to centralize the civil registries, to develop the electronic payment systems in Pas, and to have enabling platforms for the provision of digital services to citizens in a *mobile first* framework.

The organizations that have reached the highest degree of digital development have users as their primary interest.

Italy also recognizes that if citizens and enterprises are put first, digital innovation will become a public investment tool with an immediate impact on the improvement of the services already provided as well as the improvement of the quality of life.

The lack of *digital skills* represents one of the main obstacles to digital transformation. Italy is aware that these profiles are crucial and also it is aware of the importance of the diffusion of a *digital mind-set* to the purpose of success in the realization of the digital strategy. One direct expression of such commitment is represented by the reorganization of the Agency for Digital Italy, which will lead to the development and to the implementation of digital skills meant to respond in an efficient way to its mission.

business figures related to the IoT, mobile, and cloud area, whereas, in other professions, the incidence is growing and linked to both changes in the areas of automation in processes that are stimulated by Industry 4.0 (63.6%) and in the digital relation with the customer in service

In total, 85% of the interviewed PAs, instead, need digital skills in order to face the digitalization of services to citizens and enterprises, linked, for example, to SPID, PagoPA, and Fascicolo Sanitario Elettronico (Electronic Health Dossier). Unfortunately, it is difficult to find these skills externally because of the ongoing hiring freeze, and it is also difficult to train exist-

But if we look at the jobs for the future, the scenario changes. The new professions will be called change manager, agile coach, technology innovation manager, chief digital officer, IT process and tools architect and will be formed by an articulate mix of skills meant to strategically manage the change imposed by the big data, cloud, mobile, social, IoT, and security areas. The new figures will be especially composed by technological, managerial, and soft skills such as leadership, emotional intelligence, creative thought, and change management.

In line with the international framework, Italy is undergoing a process of transformation and innovation of the services to citizens and enterprises in a view of simplification, also through

The explosive and transversal effect of the new technologies will lead not only to a more efficient system but most of all to a shortening of the distance between public administration and users (either citizens or enterprises), to ease the access to service and to relaunch the economy, particularly in some strategic productive sectors such as tourism, culture, and agriculture.

In this context, the Italian government is at the forefront to reach the country's digital growth objectives and to accompany public administrations and users in a journey toward modern-

The 2014–2020 Strategy for Digital Growth document defines precisely the planning for the transformation of the country. Consistently with this strategy, the Italian government has identified the main objectives, such as to guarantee to citizens and enterprises a secure and protected access to digital services, to centralize the civil registries, to develop the electronic payment systems in Pas, and to have enabling platforms for the provision of digital services

The organizations that have reached the highest degree of digital development have users as

Italy also recognizes that if citizens and enterprises are put first, digital innovation will become a public investment tool with an immediate impact on the improvement of the ser-

vices already provided as well as the improvement of the quality of life.

the use of digital technologies and of cooperation among all operators of the system.

ing resources because of the difficulties in diverting them from their core activities.

**4. Digitalization and innovation in public administration**

and business areas (54.6%).

64 Public Management and Administration

ization and transformation.

their primary interest.

to citizens in a *mobile first* framework.

On an international level, the situation that emerges seems to be even more undeveloped on the procurement side, which is spoiled by an excessive level of regulation and the lack of flexibility. The redesign of the Italian procurement model is certainly at the center of a government strategy which implies the simplification of the procedures and the identification of agile solutions that will be able to support all levels of public administrations, like, for example, the *pre-commercial procurement*.

In order to really transform the public sector by taking advantage of digital technologies, the public administrations will have to face a real journey, a "digital journey."

Governments and administrations find themselves in very different phases of this "journey." While a small percentage might be considered as going through a "phase of maturation," governments and administrations, for the most part, are still in the beginning or developing phases of the digital course. What differentiates the leaders of digital technology from the others is a clear strategy for digital technology, as well as a leadership and a culture that are ready to sustain transformation. This should not surprise, as the history of technological progress abounds with examples of companies that have focused on technology without investing in the organizing skills that are needed to guarantee its impact.

Public administrations have shown to be particularly prone to fall in this trap. Particularly, the first attempts to introduce computers in schools have not determined an improvement in performance, since they were not accompanied by essential modifications of the teaching methods that would allow them to be adjusted to the new technology.

The failure to employ corporate resources within public entities is a classic example of unmet expectations due to the incapability to modify processes or to develop change-favoring cultures.

The digital development of an organization is influenced for the most part by its digital strategy. The "lack of a strategy" is the main barrier that prevents organizations in their beginning phase to fully take advantage of the digital trends.

However, it does not seem to be among the five main barriers for entities in a phase of digital development.

As organizations go from the initial phase to the more advanced one, the problem represented by the lack of strategy seems to withdraw and the barriers move toward the portfolio management, financing, and data and systems security management. The organizations that find themselves in a developmental phase have a clear strategy that moves toward a radical transformation. The potential impact of a digital strategy is broadly determined by the purpose and the reach of it. Also, the importance that organizations ascribe to the use of digital technology in order to improve the innovation degree and the decisional process varies according to the level of digital development reached.

when it comes to innovating and collaborating using new digital technologies, which could derive from the fact that they have favored risk-averse cultures, which make it more difficult

The Digital Culture within Enterprises and Public Administration: Legal Aspects and Repercussions…

http://dx.doi.org/10.5772/intechopen.77606

67

Personnel digital development is weak in some sectors providing professional services, particularly the higher education, health, and social service sectors. These are sectors in which the service provision to the public is assigned to professionals with a proper training, who base their activity on their own judgment and who operate with a certain level of autonomy. These sectors are slower to invest in the personnel skills that are needed in order to implement a digital strategy, maybe because those are areas have always given more importance to professional judgment, subject knowledge, and interpersonal skills rather than to organizational, digital, or transformational skills. The user's attention levels are higher in sectors in which the public service is represented by the provision of knowledge to clients/citizens. This is particularly true in the information technology (IT), education, and higher education sectors. The data are not surprising; it is indeed very likely that the requests from these users evolve and change frequently, which makes the ability to put the user's needs first a crucial factor for

The main barriers preventing digital transformation are: insufficient financing and too many

Many public entities are already facing difficulties financing basic services to citizens, not to mention investing in digital initiatives, despite digital transformation is largely recognized as

The managers who attempt to stimulate change always face competing priorities; particularly, many struggle to find a balance between transformation and "guarantee a, however, low level of service." Public entities that manage to successfully pursue their objectives tend to have strategies that are realistic and coherent and very well understood business cases.

Aside from insufficient financing and too many competing priorities, the organizations that are in a developmental phase indicate security as an important barrier. For the entities in their initial transformation phase, the absence of a general strategy—together with a poor understanding of the new tendencies of the digital world—represents a considerable barrier. The public sector has the need to enhance the digital skills of both the employees appointed

Employing people who have the skills needed or properly train the existing employees may naturally contribute to fill the specific ability gaps. It is essential for the people directly involved in the digital transformation activity to work side by side with the recruiting special-

Digital transformation is a phenomenon that goes farther beyond technologic implementation. As a matter of fact, it requires the ability to look at "old" problems and processes with new eyes. To have a digital mentality means to have an approach toward reality that is different from the one that is adopted by most organizations, especially in the public sector. It implies a different way to consider stakeholders, a different way to launch products

with realizing the digital transformation and those in charge of guiding it.

ists in order to guarantee that the acquired digital skills be the right ones.

to pursue innovation and experimentation.

the entities operating in such sectors.

a way to reach a substantial cost reduction.

competing priorities.

In the same way, the public sector managers expect that the human resources sector adjust to digital solutions and accept them in order to face the challenges linked to personnel management.

The unrestrained changes that stimulate digital transformation question consolidated leadership and governance models. Before digital technology, the new projects could be evaluated through deep analysis, the investment decisions could be based on cost/efficiency ratios, and the final objective of most plans consisted of a fixed target.

In the new digital era, leaders are asked to make decision more rapidly in the face of a constant evolution of the possible scenarios.

In public entities, the whole world of hierarchies and the government structures are often firmer and more marked than in the private sector. Government entities in a phase of digital development are characterized by a culture that favors digital transformation: they promote innovation, favor collaborative work environments, and adopt a positive attitude toward risk propensity. Furthermore, not always innovation and collaboration are the byproduct of digital technology, rather they can be promoted toward management methods that favor digital technology.

Risk propensity is becoming a cultural norm for organizations undergoing a phase of digital development.

Public entities in a phase of digital development are more capable of taking risks, that is, more prone to experiment agile approaches, such as: "make a mistake in a hurry, fix a mistake in a hurry." They are five times more prepared to modify their attitude toward risks taking compared to entities undergoing an initial transformation phase.

Furthermore, the organizations that are only beginning their transformation allude to "lack of entrepreneurial spirit" and "willingness to take risks" among the most crucial barriers to the exploitation of the digital trends. Innovation and collaboration abound in those organizations undergoing a phase of digital development.

The entities undergoing a phase of digital development find themselves in a better position to benefit from collaboration. Almost all of the entities in this phase (98%) declare that digital technologies and digital skills allow employees to work better together.

Public entities in a phase of digital development face a remarkable change in their innovative and collaborative culture determined by the digital trends: they have a probability to notice an improvement in their innovative and collaborative culture that is three times higher than what entities in their initial phases are likely to experience.

Digital culture is weaker in the defense, energy, and justice sectors. These are sectors that focus on public services that have a crucial importance, characterized by a very low errortolerance, and in which very small operational faults could have long-term negative consequences. These sectors are less willing to experiment new approaches and are the slowest when it comes to innovating and collaborating using new digital technologies, which could derive from the fact that they have favored risk-averse cultures, which make it more difficult to pursue innovation and experimentation.

digital technology in order to improve the innovation degree and the decisional process varies

In the same way, the public sector managers expect that the human resources sector adjust to digital solutions and accept them in order to face the challenges linked to personnel

The unrestrained changes that stimulate digital transformation question consolidated leadership and governance models. Before digital technology, the new projects could be evaluated through deep analysis, the investment decisions could be based on cost/efficiency ratios, and

In the new digital era, leaders are asked to make decision more rapidly in the face of a con-

In public entities, the whole world of hierarchies and the government structures are often firmer and more marked than in the private sector. Government entities in a phase of digital development are characterized by a culture that favors digital transformation: they promote innovation, favor collaborative work environments, and adopt a positive attitude toward risk propensity. Furthermore, not always innovation and collaboration are the byproduct of digital technology, rather they can be promoted toward management methods that favor digital

Risk propensity is becoming a cultural norm for organizations undergoing a phase of digital

Public entities in a phase of digital development are more capable of taking risks, that is, more prone to experiment agile approaches, such as: "make a mistake in a hurry, fix a mistake in a hurry." They are five times more prepared to modify their attitude toward risks taking

Furthermore, the organizations that are only beginning their transformation allude to "lack of entrepreneurial spirit" and "willingness to take risks" among the most crucial barriers to the exploitation of the digital trends. Innovation and collaboration abound in those organizations

The entities undergoing a phase of digital development find themselves in a better position to benefit from collaboration. Almost all of the entities in this phase (98%) declare that digital

Public entities in a phase of digital development face a remarkable change in their innovative and collaborative culture determined by the digital trends: they have a probability to notice an improvement in their innovative and collaborative culture that is three times higher than

Digital culture is weaker in the defense, energy, and justice sectors. These are sectors that focus on public services that have a crucial importance, characterized by a very low errortolerance, and in which very small operational faults could have long-term negative consequences. These sectors are less willing to experiment new approaches and are the slowest

according to the level of digital development reached.

the final objective of most plans consisted of a fixed target.

compared to entities undergoing an initial transformation phase.

technologies and digital skills allow employees to work better together.

what entities in their initial phases are likely to experience.

undergoing a phase of digital development.

stant evolution of the possible scenarios.

management.

66 Public Management and Administration

technology.

development.

Personnel digital development is weak in some sectors providing professional services, particularly the higher education, health, and social service sectors. These are sectors in which the service provision to the public is assigned to professionals with a proper training, who base their activity on their own judgment and who operate with a certain level of autonomy. These sectors are slower to invest in the personnel skills that are needed in order to implement a digital strategy, maybe because those are areas have always given more importance to professional judgment, subject knowledge, and interpersonal skills rather than to organizational, digital, or transformational skills. The user's attention levels are higher in sectors in which the public service is represented by the provision of knowledge to clients/citizens. This is particularly true in the information technology (IT), education, and higher education sectors. The data are not surprising; it is indeed very likely that the requests from these users evolve and change frequently, which makes the ability to put the user's needs first a crucial factor for the entities operating in such sectors.

The main barriers preventing digital transformation are: insufficient financing and too many competing priorities.

Many public entities are already facing difficulties financing basic services to citizens, not to mention investing in digital initiatives, despite digital transformation is largely recognized as a way to reach a substantial cost reduction.

The managers who attempt to stimulate change always face competing priorities; particularly, many struggle to find a balance between transformation and "guarantee a, however, low level of service." Public entities that manage to successfully pursue their objectives tend to have strategies that are realistic and coherent and very well understood business cases.

Aside from insufficient financing and too many competing priorities, the organizations that are in a developmental phase indicate security as an important barrier. For the entities in their initial transformation phase, the absence of a general strategy—together with a poor understanding of the new tendencies of the digital world—represents a considerable barrier.

The public sector has the need to enhance the digital skills of both the employees appointed with realizing the digital transformation and those in charge of guiding it.

Employing people who have the skills needed or properly train the existing employees may naturally contribute to fill the specific ability gaps. It is essential for the people directly involved in the digital transformation activity to work side by side with the recruiting specialists in order to guarantee that the acquired digital skills be the right ones.

Digital transformation is a phenomenon that goes farther beyond technologic implementation. As a matter of fact, it requires the ability to look at "old" problems and processes with new eyes. To have a digital mentality means to have an approach toward reality that is different from the one that is adopted by most organizations, especially in the public sector. It implies a different way to consider stakeholders, a different way to launch products and services, and a different way to work. There is no shared definition of what makes a digital mentality, but the organizations that "become" digital tend to have some peculiarities in common: open functionalities, cocreation, special attention to users and clients, and an agile work method. Such peculiarities are not yet rooted in most public administration entities.

• production; and;

related to the products sold.

To make sure that digitalization proves really effective, it is necessary to involve these three dimensions in a logics and information exchange project between the three areas themselves. Digitalization of business models means sharing information regarding products and services offered by an enterprise. The aim of the digitalization of business models is essentially to increase the company's know-how through data sharing and offering additional services

The Digital Culture within Enterprises and Public Administration: Legal Aspects and Repercussions…

http://dx.doi.org/10.5772/intechopen.77606

69

The development of machinery that is technologically more efficient and effective, as well as their introduction in enterprises will allow them to grow by 25%, awarding them the possibility to face a rising and constantly evolving demand. Furthermore, the variety of machinery and equipment introduced will give the possibility to meet the needs of both the big enterprises and the smaller companies because of their applicability in both mass and niche production. Finally, the digitalization of the activities implies the development of digital knowledge, which may allow an enterprise to have a greater information flow than the other parties involved in the production chain and, consequently, a better resource management. The interweaving among various sectors contributes to make the enterprise agile and to make it more competitive, since it allows it to better understand the market requests. The activities mentioned above aim to introduce a series of innovations within companies that, in a market that is characterized by the domination of technology, they will not be able to overlook. The Industry 4.0 phenomenon articulates itself in processes that involve all the phases of the activities of the enterprise. The partner occupying the most relevant position in the digital innovation is SAP, a completely new management software that is used to lessen the bureaucratic-administrative

load of many company operations, as well as to manage the stock in the best way.

activities, that are very useful in order to face an ever-changing and evolving market.

**6. Digitalization and regulatory framework**

Another aspect that is considered to be very important in the digitalization of enterprises is the positioning, also called searching engine optimization (SEO).The creation of online contents that are interesting and attractive for customers is an essential pathway toward the reciprocal exchange of information and the creation of a collaborative relationship outside the enterprise. The evolution of the Internet, in this respect, is useful to the creation of promotional campaigns, to the improvement of link building, and to practice online marketing

In the past few years, public administrations have had to face a real digital revolution. In the same way, companies need to digitalize their processes. Truthfully, Article 40 of the Digital Administration Code has required public administrations to create their original documents electronically for quite a while. Such evidence has been reclaimed and confirmed by the legislator in 2016. It defined that public administrations create their original documents, including those related to bars, public registries, and lists by means of information technology. The

• activity.

The management of the cultural aspect is a challenge for the organizations that face digital transformation. The existing cultural limits often put to test the attempts to integrate the foundations of the digital world (attention to the user, open functionalities, and agile development) within public entities.

Most public organization face cultural issues linked to the migration toward digital culture.

For the provision of digital services, most public entities open source technology in moderation.

Public entities might not even need of an internal development team, but it is essential that they can count on procurement specialists, who must be able to effectively monitor the work carried out by the suppliers. Procurement and commercial strategies must change in a radical way in order to allow digital transformation.

The main changes that public entities want in the procurement process are: agile development, less strict terms and conditions, and a more decentralized model. Any modification of this process should consider such aspects.

The approaches of the public sector to procurement are conceived to guarantee that the public funds be spent efficiently, but the risks of a lack of public investments in the digital era are different than what they were before.

The cause of this is the growing speed of the change itself. Historically, the change was slower; it was based on assumptions that entailed that the work modalities would keep steady. The procurement routine within the whole public sector expected the provision of services at the lowest possible cost according to the set model. This favored the drafting of long-term supply contracts and low unit costs, as well as having as a side effect to freeze the business models to the moment of the process in which the organization invested in the IT sector, chose its suppliers, and defined its processes.

In the digital era, there is nothing less desirable than this. It is an era of unrestraint changes, in which 5-year-old business models are made rapidly obsolete by smartphones, big data, connected detectors, and by the innovations of the near future. The public procurement system must change in order to incentivize innovation and flexibility.
