What it will take for startups to succeed in the public sector

The Covid-19 pandemic saw governments all over the world contend with one of the biggest global health crises in living memory. What’s more, policymakers had to keep public services running while operating virtually.

This prompted government organizations to transform how they deliver their services by using technology. For example, the Ministry of Economy, Trade and Industry in Japan used Amazon Web Services (AWS) to slash response times for searches on its corporate data search service from 48 seconds to 0.1 seconds.

But while progress has been promising so far, the overall innovation in and development of public sector service technology remains slow. According to the World Bank, governments of 155 countries still haven’t fully adopted technologies such as cloud computing, enterprise architecture, and integrated financial management information systems.

This has given startups ample opportunity to help transform and bring disruptive innovation to the public sector and bridge the tech divide.

Bringing innovation to the public sector

In the public sector, a number of opportunities for innovation lie in accelerating the transformation of social, environmental, and economic services, says Samuel Harris, regional public sector startup lead for Asia Pacific and Japan at AWS.

One key advantage that startups have over governments is that young companies are not as constrained by traditional government practices or red tape. This allows startups to apply technology to create new ways to access services and business models.

Photo credit: imtmphoto / 123RF

Through these technologies, startups can create scalable public sector services that are digitally native, and citizens can benefit in the process.

For example, New Zealand-based Horizon State uses blockchain to allow citizens to vote through their smartphones, with the technology serving as a way to create transparency and accountability in the voting process. In doing so, it helps governments encourage more rural citizens to cast their vote, encouraging active participation in the policymaking process.

No need for unicorns, just uniqueness

However, tapping into these opportunities is another matter, as startups that engage with the government face several challenges different from those in the private sector.

For one, a startup’s solution must promise to deliver unique value, since government agencies usually focus more on the outcome of a solution. The private sector, on the other hand, tends to stress on other factors such as how a startup controls its costs.

“It doesn’t have to be a big thing with huge outcomes, but it has to be unique: something agencies would want to partner for rather than develop themselves,” says Justin Tan, co-founder of TwinLogic, a Singapore-based digital twin platform that creates virtual copies of buildings. The company works with agencies like the city-state’s Urban Redevelopment Authority, Housing and Development Board and National Heritage Board to streamline building management processes in a digital environment.

Justin Tan, co-founder of TwinLogic / Photo credit: AWS

While he acknowledges that it would be “quite impossible” to come up with a solution that is entirely unique, he says one possible route for startups would be to organize their solutions in a way that is tailor-made for specific use cases.

To achieve this, programs like AWS’s Public Sector Startup Ramp could prove useful: The program offers important resources such as investment, technical, and marketing support, which startups can leverage to refine their solutions for the public sector.

Using AWS’s Promotional Credits offered through the AWS Startup Ramp, TwinLogic developed working prototypes of actual buildings in Singapore. It then demonstrated those virtual copies to potential users, helping it to secure its partnerships.

Through the program, the company was also able to get technical expertise and advice from AWS for its solution, which is hosted on the latter’s infrastructure. This helped TwinLogic overcome the technical difficulties it had when building its prototypes for demonstration, says Tan.

The skepticism hurdle

Another challenge that startups serving the public sector face is that government agencies rely on public funding, unlike much of the private sector. Because of this, these agencies have very strict rules in terms of the types of solutions that can be used and are generally more skeptical of new ones.

For startups working with the public sector, it’s extremely important to approach potential customers the right way. Having the support of experienced collaborators and using their support to introduce new solutions could help put to rest the fears of potential customers.

AWS’s Startup Ramp program can help startups with this by providing networking opportunities and brand-name backing.

Photo credit: AWS

“[The program] helped us to skip a lot of the ‘Are you sure you can do it?’ attitude from customers,” Tan adds. “It lent us some credibility and showed that a conversation with us is something worth having.”

For TwinLogic, this took the form of a webinar from CapitaLand, a real estate group in Singapore that counts state investor Temasek Holdings as its majority shareholder. During the webinar, a speaker from CapitaLand spoke about how the real estate group was deploying digital twin solutions using AWS technologies.

Through AWS, TwinLogic had the opportunity to show CapitaLand a working demo of its product, which was eventually presented at the webinar. Further, it gave TwinLogic additional exposure, which drew inquiries from customers who saw promise in TwinLogic’s solution.

Closing the gap with familiar tech

AWS’s Harris believes that startups will be able to improve the way they can capitalize on opportunities in the public sector with the help of resources from the likes of the AWS Startup Ramp program.

In this respect, Tan notes that the adoption of AWS cloud infrastructure by governments in the coming years could further benefit firms that are part of the Startup Ramp. For example, the Singapore government’s use of AWS as a cloud vendor will help shorten the time frame of getting a solution approved by public sector agencies, as they would already be familiar with the cloud technology these startups use.

“All these developments and support packaged together is something that will encourage government agencies to say: ‘Let’s try something’,” says Tan.

The AWS Startup Ramp is a global program that helps early-stage public sector-focused technology startups build innovative solutions on AWS for public sector customers, including customers in government, space, defense, agri-tech, and healthcare.

To find out more and apply for the program, visit its website.

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.