Harvard Case - U.S. Digital Service
"U.S. Digital Service" Harvard business case study is written by Mitchell B. Weiss, Nick Sinai, Michael Norris. It deals with the challenges in the field of Entrepreneurship. The case study is 23 page(s) long and it was first published on : Dec 19, 2016
At Fern Fort University, we recommend that the U.S. Digital Service (USDS) adopt a hybrid model for its future operations. This model will leverage the strengths of its current structure ? agility, innovation, and talent ? while addressing the limitations of its current framework. This hybrid model will involve a strategic partnership with a private sector entity, allowing USDS to access resources, expertise, and scale while maintaining its core mission and values.
2. Background
The case study focuses on the U.S. Digital Service (USDS), a government agency established in 2014 to improve the delivery of digital services to citizens. USDS has achieved significant success in improving government websites and applications, showcasing its ability to deliver innovative solutions. However, the agency faces challenges in scaling its operations and securing long-term funding. The case explores the options available to USDS, including becoming a fully independent entity, merging with another government agency, or partnering with a private sector entity.
The main protagonists are:
- Mikey Dickerson: The founder and former director of USDS, who advocates for a more independent and agile structure.
- The White House: The ultimate decision-maker regarding USDS?s future, balancing political considerations with the need for effective digital service delivery.
- Private sector entities: Potential partners for USDS, offering resources and expertise in exchange for access to government contracts and data.
3. Analysis of the Case Study
The case study can be analyzed through the lens of strategic management, considering the following frameworks:
- Porter?s Five Forces: This framework helps assess the competitive landscape for USDS, considering the threat of new entrants (e.g., other government agencies or private sector firms), the bargaining power of suppliers (e.g., technology vendors), the bargaining power of buyers (e.g., citizens), the threat of substitute products (e.g., alternative service delivery channels), and the rivalry among existing competitors (e.g., other government agencies).
- SWOT Analysis: This framework helps identify USDS?s strengths (e.g., agility, talent, innovation), weaknesses (e.g., limited resources, dependence on government funding), opportunities (e.g., growing demand for digital services, potential for partnerships), and threats (e.g., political instability, budget cuts).
- Resource-Based View: This framework focuses on USDS?s core competencies, particularly its ability to attract and retain top talent, its agile development methodologies, and its focus on user-centered design. These competencies are valuable, rare, inimitable, and non-substitutable, giving USDS a competitive advantage.
4. Recommendations
We recommend that USDS adopt a hybrid model that combines its existing strengths with the resources and expertise of a private sector partner. This model would involve:
- Strategic Partnership: Establish a long-term partnership with a private sector entity that aligns with USDS?s mission and values. This partner should have expertise in digital service delivery, technology, and financial management.
- Joint Venture: Create a joint venture entity with the private sector partner, allowing for shared resources, risk, and rewards. This entity would be responsible for delivering digital services to the government and potentially to other clients.
- Governance Structure: Establish a clear governance structure for the joint venture, ensuring that USDS maintains control over its core mission and values while benefiting from the private sector partner?s expertise.
5. Basis of Recommendations
This recommendation considers the following factors:
- Core Competencies and Consistency with Mission: The hybrid model leverages USDS?s core competencies in innovation, talent, and agility while providing access to additional resources and expertise. It also ensures that USDS remains focused on its mission of improving digital service delivery to citizens.
- External Customers and Internal Clients: The hybrid model benefits both external customers (citizens) and internal clients (government agencies) by providing access to improved digital services and ensuring continued innovation.
- Competitors: The partnership with a private sector entity allows USDS to compete effectively with other government agencies and private sector firms in the digital service delivery market.
- Attractiveness ? Quantitative Measures: The hybrid model offers several potential benefits, including:
- Increased funding: Access to private sector capital and investment.
- Improved efficiency: Leverage private sector expertise in operations and financial management.
- Enhanced scalability: Ability to expand operations and reach more citizens.
- Reduced risk: Sharing risk with the private sector partner.
6. Conclusion
The hybrid model offers a balanced approach to USDS?s future, allowing it to leverage its strengths while addressing its limitations. This model ensures continued innovation, scalability, and financial sustainability, ultimately benefiting both USDS and the citizens it serves.
7. Discussion
Other alternatives not selected include:
- Full Independence: This option would require USDS to secure its own funding and operate independently, potentially limiting its resources and scalability.
- Merger with Another Agency: This option could lead to bureaucratic inefficiencies and a loss of USDS?s unique culture and agility.
The key risks of the hybrid model include:
- Loss of Control: USDS may lose control over its mission and values if the private sector partner prioritizes profit over public service.
- Conflicts of Interest: The partnership may create conflicts of interest between USDS and the private sector partner.
- Data Security: Sharing data with a private sector partner raises concerns about data security and privacy.
These risks can be mitigated through careful selection of the private sector partner, establishing clear governance structures, and implementing robust data security measures.
8. Next Steps
To implement the hybrid model, USDS should:
- Identify Potential Partners: Conduct a thorough assessment of potential private sector partners, considering their expertise, values, and commitment to public service.
- Negotiate Partnership Agreement: Negotiate a comprehensive partnership agreement that outlines the roles and responsibilities of both parties, governance structures, and data security measures.
- Establish Joint Venture: Create a joint venture entity with the selected partner, ensuring clear ownership and control.
- Pilot Project: Launch a pilot project to test the hybrid model and gather feedback from stakeholders.
- Scale Operations: Based on the success of the pilot project, gradually scale operations and expand the reach of digital services.
This timeline should be flexible and adjusted based on the specific circumstances and needs of USDS. By implementing these steps, USDS can successfully transition to a hybrid model that ensures its long-term sustainability and continued success in delivering innovative digital services to citizens.
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Case Description
Mikey Dickerson and Haley Van Dyck found themselves far from home and far from certainty about where to take the U.S. Digital Service (USDS) next. In the summer of 2015, they had landed in London to meet with Mike Bracken, director of the United Kingdom's Government Digital Service (GDS). In 2014, President Barack Obama had given USDS a monumental task: transform how the federal government worked for the American people, digitally. The seeds of USDS had grown out of the rescue of HealthCare.gov, the federal website meant to allow consumers to shop for private health insurance. Its launch and crash in October 2013 had threatened one of Obama's signature policy achievements. Dickerson and a small team had been drafted to help fix HealthCare.gov and had successfully done so in a matter of months. While in London, Dickerson and Van Dyck wondered, of the other areas that most cried out for new technology approaches, which should be tackled next? Moreover, GDS had embedded satellite teams into the U.K.'s government agencies to guide, assist, and in some cases control, each agency's digital presence. Did London hold lessons for if, and how, these teams could be successful in the U.S. government? USDS had begun to experiment with this model too, embedding teams in a handful of departments in the U.S federal government. How could USDS best work with the dozens of agencies that were actually doing the work of government?
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