Written evidence submitted by Professor Kirk Chang and Dr Alina Vaduva (DCG0009)
Report for the Establishment of the ‘Digital Centre of Government’
SUMMARY
The Digital Centres of Government (DCG), often referred to as “digital government” or “e-government”, represents the integration of digital technologies into public administration to enhance service delivery, improve efficiency, and foster citizen engagement. The DCG establishment is amplified by the public interests, community needs, as well as societal development.
In the current report, Dr. Alina Vaduva and Prof. Kirk Chang have outlined the design, development and implementation for the DCG establishment, in line with the empirical evidence, research-informed references and operational incentives. Criterions to measure and evaluate the success of the Digital Centres of Government are carefully crafted, along with six KPI-driven dimensions. These are: Service Efficiency & User Experience, Cost Savings & Operational Efficiency, Digital & AI Workforce Development, Cybersecurity & Digital Trust, Innovation & Scalability, as well as Impact on Public Sector Goals.
The report has underscored the significance and function of the proposed Digital Centres of Government. Operational strategies and suggestions to maximise the civil service and centre performance potential are also addressed.
Proposers:
Dr. Alina Maria Vaduva
And
Professor. Kirk Chang
ABOUT THE PROPOSERs
Dr. Alina Vaduva is a Senior Lecturer in Business Strategy and a thought leader in AI-driven digital transformation. With over 21 years of experience in academia, research, and industry consulting, she specialises in AI applications in business, workforce automation, and strategic innovation. Her research explores AI’s impact on global security, higher education, and sustainability, with publications in The Conversation and Open Access Government. She has led major projects and European Commission-funded initiatives on technological transfer and entrepreneurship.
Dr Vaduva assesses AI and innovation proposals for EIC Accelerator funding as an Expert Evaluator for the European Commission. She has also produced research into AI’s role in reshaping global supply chains, e-waste management, and smart governance. At the University of East London, she leads sustainable business pathways, fosters innovation in SMEs, and supports startups through training, workshops, and funding access. Recognised for her contributions, she has received awards for global engagement and community impact.Dr Vaduva continues to bridge academia and industry, advocating for ethical AI deployment and digital transformation strategies that drive sustainable economic growth.
Prof. Kirk Chang is a leading expert in AI-empowered management, along with three decades of experience in the academic and consulting fields. His research explores technology and its influence on employees, teamwork, group dynamics and organisational performance. Prof. Chang has held academic positions at top institutions, including the University of East London, Salford University, and Southampton University, and served as an examiner and PhD assessor. A Chartered Scientist (CSci) and Chartered Psychologist (CPsychol), he is also a Fellow of the Royal Society, CIPD, BPS, and HEA.
Prof. Chang has collaborated with organisations on employee training, managerial intervention programmes and AI-driven management solutions. He actively supports SMEs and MNEs across industries, from manufacturing to telecom. Recently, he has worked with the Chinese Telecom Industry and the Chinese Academy of Personnel Science to enhance recruitment efficacy and improve performance reward system through AI-driven packages. Committed to expanding education and human capital development, Prof. Chang continues to shape the future of HR and technology integration worldwide.
Jointly, Dr. Alina Vaduva and Prof. Kirk Chang have crafted the current report, aiming to support the establishment of the Digital Centre of Government (DCG), as well as its design, development, implementation and cognate policies. The foundational message is:
“DCG achieves more and makes the society better!”
The Digital Centres of Government, often referred to as “digital government” or “e-government”, represents the integration of digital technologies into public administration to enhance service delivery, improve efficiency, and foster citizen engagement.
In simple words, digital government is about “ better responding to the needs of everyone, either through service delivery or policy making “ (UNPD, 2022). “Digital government” is about constantly improving a better way for government to plan, operate and serve citizens and business, based on users’ needs (Smart Nation Singapore, 2023).
The establishment of the new digital centre within the UK's Department for Science, Innovation and Technology (DSIT) is an important and significant step forward for the UK Government to advance its digitalisation strategy. By uniting experts in data, digital services, and artificial intelligence (AI), it also aims to modernise public services and stimulate economic growth. Coincidentally, previous research has shown key contributions of Digital Government to the economy in various contexts (See table 1 below for details).
Table 1. The Impact of Digital Government on the Economy
Mutual growth | There is a strong positive reciprocal relationship between e-government development and the digital economy, meaning that the improvement of one could lead to the advancement of the other (Chang, 2020; Zhao et al., 2015). |
Increased productivity | Digital economy development positively impacts regional total factor productivity by stimulating innovation and promoting entrepreneurship, with active government, an effective market, and high-level judicial protection playing key roles (Chang, Carrim et al., 2024; Gupta Chen et al., 2023). |
High-quality economic development | The digital economy positively impacts high-quality economic development, with digital infrastructure, industry, and integration all having significant positive effects on regional total factor productivity, with technological progress acting as a mediating factor (Chang, Chang & Sandland, 2024; Chang et al., 2021) |
Massive Savings | The potential cost savings from introducing eGovernment is remarkable. In Denmark, electronic invoicing saves taxpayers €150 million a year and businesses €50 million a year, while in Italy e-procurement systems cut over €3 billion in costs (European Commission, 2025) |
Sustainable Growth | E-government enables the integration of policies and public services to support sustainable and inclusive economic growth, social progress, ethical standards, and environmental preservation. By enhancing resource management efficiency, it helps optimise the use of natural resources today, preventing depletion and ensuring their availability for the future (Chang, 2024; Castro & Lopes, 2021) |
Improved market performance | The digital government reduces market frictions, such as search and transaction costs, thereby improving market performance. Well-designed policies on competition, regulation, IP protection, and consumer privacy can improve market performance in the digital economy (Ali, Chang & Vaduva, 2023; Chen, 2020) |
Social Governance and Reforms | The digital economy also plays a role in rebuilding and maintaining social governance mechanisms, promoting social reforms, and supporting sustainable economic practices (Niu, 2022) |
Transition to Circular Economy | The digital government has the potential to enhance the transition toward circular economy (Medaglia et al., 2024). It supports the transition to a green economy by facilitating industrial upgrades and regional innovation, which are essential for sustainable urban development (Cheng, Chang & Tai, 2022; Liao, 2023). |
Job creation and skills enhancement | Government digital centres play a pivotal role in shaping the future of work by fostering job creation and skills development (Bhattacharya & Rakshit, 2024). While digitalization offers opportunities for high-skilled job growth, it also presents challenges in addressing skill gaps and ensuring that the workforce is equipped to thrive in a digital economy (Balsmeier & Woerter, 2019). Continued investment in digital skills and strategic partnerships between government and industry are essential for maximizing the benefits of digital transformation (Machiel Bouwmans et al., 2024) . |
In the case of the UK, the new Digital Centre for Government has the potential to bring multiple benefits to the citizens and the economy:
A new report by AWS (2025) reveals AI’s potential to “transform businesses and public sector organisations, empower citizens, and fuel economic growth” and it underscores the urgency to expand its adoption across the continent. Not having a clear strategy for AI adoption would mean falling behind agile global challengers who are already shaping the AI industry.
As mentioned above, an integrated approach to digital technologies across public services is expected to streamline operations, reduce bureaucracy, and offer improved and rapid service delivery. This modernisation has the potential to lead to substantial cost savings, as well as increased productivity (Chen et al., 2023).
The new digital centre would act as a national hub for digital transformation facilitating the cooperation between various stakeholders from both public and private sectors, thus generating more opportunities for growth (techUK, 2025).
The digital transformation of government services is expected to create new job opportunities in tech and related sectors (Hoe, 2024). Additionally, investing in digital skills and leadership within the public sector will enhance the UK's human capital, making the workforce more adaptable and competitive (Kumar & Hooda, 2024).
Communicating a vision for a Unified Centre for Digital Government requires a clear, compelling narrative that resonates with key stakeholders, including policymakers, civil servants, businesses, and citizens
The vision for bolstering the Department for Science, Innovation and Technology (DSIT) to better serve the British public through science and technology has been communicated through several key initiatives and strategic documents.
2. Publication of Foundational Documents: In January 2025, DSIT released two pivotal documents: "A Blueprint for Modern Digital Government" and the "State of Digital Government Review." The Blueprint outlines a long-term vision for digital public services, presenting a six-point plan for reform and detailing DSIT's role as the new digital centre of government. The State of Digital Government Review provides an assessment of technology and data in the public sector, highlighting successes, challenges, and root causes. These documents collectively articulate a clear and comprehensive strategy for modernising digital government services.
3. Strategic Vision and Framework: The UK Science and Technology Framework, published in March 2023, sets out a strategic vision to position the UK as a global science and technology superpower by 2030. This framework identifies critical technologies, such as AI, quantum technologies, and engineering biology, and outlines ten key actions to achieve this goal. The framework emphasizes the importance of innovation, investment, and collaboration across sectors to drive economic growth and improve public services (Gov.UK, 2024)
4. Initiatives to Enhance Civil Service Expertise: DSIT's commitment to building a pro-innovation culture within the public sector is evident through initiatives like joining the STEM Futures scheme in September 2023. This program provides civil servants with direct experience in cutting-edge technology and science sectors, fostering a deeper understanding of the issues facing science and technology leaders. Such initiatives aim to equip civil servants with the skills necessary to shape practical policies that benefit industry, academia, and the public (STEM Futures, 2023)
Through these concerted efforts, DSIT has effectively communicated its vision to harness science and technology to enhance public services and drive economic growth, positioning itself as a central hub for digital transformation within the UK government.
Based on our research discoveries, the UK Government’s digital transformation strategy should focus on the sectors with the highest potential for economic growth, public service efficiency, and global competitiveness.
Based on our professional experiences and research insights, we have analysed below three sectors would benefit from digital transformation.
The digital transformation of the NHS and the Social Care Sector in the UK is essential to improve healthcare delivery, enhance patient care, and ensure the system's sustainability. Despite being a global leader in healthcare, the NHS faces challenges in integrating digital technologies across its services.
Digitalization in healthcare has the potential to improve access, accessibility, and overall quality of care for patients and healthcare professionals (Jain et al., 2024). AI-powered diagnostics, electronic health records, and telemedicine can lower costs while ensuring better service delivery.AI could also be implemented for clinical decision support systems into healthcare (Golden et al., 2024). AI systems are also being implemented in various clinical areas, supporting diagnosis and triage (Magrabi et al., 2023).
The impact of digital transformation in this sector could impact in reducing the NHS backlog, cost savings and improved patient outcomes.
Over the past two decades, local governments have faced increasing challenges in responding effectively to rapid digital transformation, climate change, financial constraints, cybersecurity threats, and evolving community needs. Without strategic intervention, these challenges risk undermining essential services.
AI has emerged as a powerful tool for addressing these issues, with many local authorities worldwide already integrating AI-driven solutions. Examples include Derby City Council’s Darcie AI Helper for handling citizen inquiries, AI-powered security surveillance, and Slagelse Municipality’s use of AI to enhance public engagement in policymaking. While AI adoption presents opportunities for improved efficiency and service delivery, barriers such as knowledge gaps and privacy concerns must be addressed through training, partnerships, and regulatory frameworks.
Moving forward, local government should explore AI as a key resource for optimizing operations and enhancing public services (Vaduva & Chang, 2024).
The impact of digital transformation in local government could result in Increased efficiency, cost reductions, and better citizen engagement.
The rise of Generative AI is transforming education and skills development, presenting both challenges and opportunities. While concerns over AI-assisted cheating and job displacement persist, AI also enables personalized learning, enhances educational support, and prepares students for an evolving job market.
Instead of banning AI, the government and institutions should develop policies to guide its ethical use, fostering skills like critical thinking, adaptability, and innovation. Reports from UNESCO and the OECD emphasize the need for AI regulations that protect human agency while enhancing education. As AI continues to reshape higher education, proactive policies and informed integration will ensure its benefits outweigh its risks (Vaduva & Chang, 2024b)
The UK’s digital transformation in the public sector should focus on AI, automation, data analytics, and secure digital platforms to improve efficiency, reduce costs, and enhance service delivery. By implementing these strategies, the government can build a modern, citizen-centric digital ecosystem that strengthens the economy while improving public services.
DSIT’s five ‘kickstarter’ initiatives—focused on digital identity, health management, AI-powered services, workforce upskilling, and cybersecurity—are well-aligned with modernizing UK public services. However, their effectiveness depends on addressing broader digital transformation needs.
Evaluating DSIT’s Five ‘Kickstarter’ Areas for Public Service Digital Transformation
DSIT’s five ‘kickstarter’ initiatives—focused on digital identity, health management, AI-powered services, workforce upskilling, and cybersecurity—are well-aligned with modernizing UK public services. However, their effectiveness depends on addressing broader digital transformation needs.
Table 2. Analysis of the DSIT’s five ‘kickstarter’ initiatives
Strengths | Potential Gaps and Areas of improvement |
User-Centric Digital Services (GOV.UK App & Digital Wallet)
| Education & Workforce Digital Transformation Overlooked
|
Health & Social Care Support
| Lack of Focus on Local Government Digital Services
(Vaduva & Chang, 2024). |
AI Integration (GOV.UK Chat & AI Upskilling)
|
|
Cybersecurity (Vulnerability Scanning Service)
|
|
DSIT has chosen high-impact, foundational areas, but additional focus is needed on local government services, transport infrastructure, and digital education to ensure holistic public sector modernization.
Measuring and Evaluating the Success of DSIT’s Digital Centre
To ensure the effectiveness of DSIT’s Digital Centre, success should be measured through a combination of key performance indicators (KPIs), along with the existing user feedback, and long-term impact assessments.
In the current report, we focus on the KPIs, as these seem to be the new additions to the success assessment and, for the same reason, we suggest future assessors to consider the following evaluation criteria:
Service Efficiency & User Experience
Cost Savings & Operational Efficiency
Digital & AI Workforce Development
Cybersecurity & Digital Trust
Innovation & Scalability
Impact on Public Sector Goals
To better understand the KPI setting and assessment, we have summarised the key characteristics of KPI in the following table, aiming to improve the clarity of success assessment.
Table 3. Summary of the KPI-driven assessment
KPI dimension | Manifestation
| Focal point in assessment |
Service Efficiency & User Experience | Reduction in service processing times (e.g., digital ID verification, public service applications). User satisfaction scores (measured via surveys on ease of use and accessibility). Adoption rates of new digital services (e.g., number of active users of the GOV.UK App and Digital Wallet).
| A successful digital transformation should make government services faster, simpler, and more user-friendly. |
Cost Savings & Operational Efficiency | Cost reduction in public service delivery (e.g., savings from automation and AI-driven chat support). Reduction in administrative workload (e.g., number of manual processes replaced by digital services). Efficiency gains in inter-departmental collaboration (e.g., faster data sharing across agencies).
| The centre must demonstrate financial and operational improvements to justify public investment. |
Digital & AI Workforce Development | Number of public sector employees trained in AI and digital skills. Retention rates of digital talent within government departments. Success of AI-powered decision-making tools (e.g., impact of AI in policy formulation).
| Upskilling civil servants ensures sustainability and prevents reliance on external vendors.
|
Cybersecurity & Digital Trust | Number of vulnerabilities identified and resolved through the scanning service. Reduction in cybersecurity incidents and data breaches. Public trust in digital services (measured through sentiment analysis and surveys).
| Secure digital services are essential for maintaining public confidence and resilience against cyber threats.
|
Innovation & Scalability | Number of new AI-powered or digital government services launched. Replication of successful initiatives across different public sector departments. Engagement with tech startups and private sector partners for innovation.
| The Digital Centre must remain a hub for innovation and ensure its projects are scalable across the UK government.
|
Impact on Public Sector Goals | Contribution to Net Zero & Sustainability Goals (e.g., impact of digital transformation on reducing paper use, energy efficiency). Accessibility & Inclusion Metrics (e.g., how well digital services cater to diverse populations, including those with disabilities). Alignment with Government Digital Roadmap (2022-2025).
| Digital transformation should support broader government priorities beyond efficiency.
|
To sum up, a comprehensive performance framework can definitely help DSIT measure and evaluate the success of the digital centre. Following the same logic, we advise DSIT to implement a data-driven evaluation system that tracks the aforementioned KPIs in real-time, conduct annual public impact reports, and use independent audits to ensure accountability. Drawing on the literature review and analysis above, we are confident that, when properly designed and implemented, the ‘Digital Centre of Government (DCG)’ will achieve more and make the society better!
28 February 2025
References
Ali, M.M., Chang, K., & Vaduva, A. (2023). Does AI bring more benefits or threats to the workplace. Business Time, 30 (Winter), 66-67.
AWS. (2025). AWS 2025. AWS 2025. https://www.unlockingeuropesaipotential.com
Balsmeier, B., & Woerter, M. (2019). Is this time different? How digitalization influences job creation and destruction. Research Policy, 48(8), 103765.
Bhattacharya, Prof. S., & Rakshit, Dr. P. (2024). Digital Skill Development to Enhance Employability for Indian Workforce. MET Management Review, 11(02), 87-94.
Castro, C., & Lopes, C. (2021). Digital Government and Sustainable Development. Journal of the Knowledge Economy, 13(2), 880-903.
Chang, K. (2020). Artificial intelligence in personnel management: The development of APM model. Bottom Line, 33 (4), 377-388.
Chang, K. (2024). Ethical and operational challenges in AI-empowered employee recruitment: Insights and suggestions to the managers and managerial practitioners. Innovations in Business and Strategic Management, 2(1), 29-32.
Chang, K., Carrim, N.M.H., Gupta, M., Cheng, K.T., & Sandland, S. (2024). Digitalization of personnel recruitment and selection. In: T.A. Adisa. (Ed.). HRM 5.0: Unpacking the digitalisation of human resource management, Chapter Five, pp 87-111. London: Palgrave Macmillan.
Chang, K., Cheng, K.T., & Sandland, S. (2024). Artificial intelligence in people management – A critical review. In: T.A. Adisa. (Ed.). HRM 5.0: Unpacking the digitalisation of human resource management, Chapter Three, pp 35-56. London: Palgrave Macmillan.
Chen, W., Du, X., Lan, W., Wu, W., & Zhao, M. (2023). How can didgital economy development empower high-quality economic development. Technological and Economic Development of Economy, 29(4), 1168–1194.
Chen, Y. (2020). Improving market performance in the digital economy. China Economic Review, 62, 101482.
Cheng, K.T., Chang, K., & Tai, H.W. (2022). AI boosts performance but affects employees' emotion. Information Resources Management Journal, 35(1), 1-18.
Department for Science, Innovation & Technology. (2025, January 13). AI Opportunities Action Plan. GOV.UK. https://www.gov.uk/government/publications/ai-opportunities-action-plan/ai-opportunities-action-plan
DSIT. (2024, July 7). DSIT bolstered to better serve the British public through science and technology. GOV.UK. https://www.gov.uk/government/news/dsit-bolstered-to-better-serve-the-british-public-through-science-and-technology?utm_source=chatgpt.com
DSIT. (2025a, January 21). A blueprint for modern digital government. GOV.UK. https://www.gov.uk/government/publications/a-blueprint-for-modern-digital-government
DSIT. (2025b, January 21). State of digital government review. GOV.UK. https://www.gov.uk/government/publications/state-of-digital-government-review/state-of-digital-government-review
e-Estonia. (2025). e-Estonia. E-Estonia. https://e-estonia.com/
European Commission. (2025). eGovernment | Shaping Europe’s digital future. Digital-Strategy.ec.europa.eu. https://digital-strategy.ec.europa.eu/en/policies/egovernment
Golden, G., Popescu, C., Israel, S., Perlman, K., Armstrong, C., Fratila, R., Tanguay-Sela, M., & Benrimoh, D. (2024). Applying artificial intelligence to clinical decision support in mental health: What have we learned? Health Policy and Technology, 13(2), 100844.
GOV.uk. (2023, March 6). The UK Science and Technology Framework. GOV.UK. https://www.gov.uk/government/publications/uk-science-and-technology-framework/the-uk-science-and-technology-framework?utm_source=chatgpt.com
Gov.UK. (2024, February 9). The UK Science and Technology Framework. GOV.UK. https://www.gov.uk/government/publications/uk-science-and-technology-framework/the-uk-science-and-technology-framework
Hoe, S. L. (2024). Digital transformation and the future of work: closing the digital skills gap. Development in Learning Organizations an International Journal. https://doi.org/10.1108/dlo-06-2024-0167
Jain, A., Dipendra Kumar Ray, Suttu Sneh Ranjan, Kumar, A., & Yamini Jamwal. (2024). Impact of Digitalization on the Healthcare System. International Journal of Pharma Professional’s Research (IJPPR), 15(1), 41–56.
Janowski, T. (2015). Digital government evolution: From transformation to contextualization. Government Information Quarterly, 32(3), 221–236.
Kumar, J., & Hooda, G. (2024). Skill Development Programmes: Challenges and Employment Opportunities. Small Enterprises Development, Management and Extension Journal, 51(2), 161-175.
Liao, W. G. (2023). How does the digital economy affect the development of the green economy? Evidence from Chinese cities. PLOS ONE, 18(8), e0289826.
Local Government Association. (2024). Digital Centre of Government launch – LGA statement. Local.gov.uk; Local Government Association. https://www.local.gov.uk/about/news/digital-centre-government-launch-lga-statement
Machiel Bouwmans, Xander Lub, Orlowski, M., & Nguyen, T.-V. (2024). Developing the digital transformation skills framework: A systematic literature review approach. PloS One, 19(7), e0304127
Magrabi, F., Lyell, D., & Enrico Coiera. (2023). Automation in Contemporary Clinical Information Systems: a Survey of AI in Healthcare Settings. Yearbook of Medical Informatics, 32(01), 115–126.
Medaglia, R., Rukanova, B., & Zhang, Z. (2024). Digital government and the circular economy transition: An analytical framework and a research agenda. Government Information Quarterly, 41(1), 101904.
Niu, F. (2022). The Role of the Digital Economy in Rebuilding and Maintaining Social Governance Mechanisms. Frontiers in Public Health, 9, 20211
Smart Nation Singapore. (2023, September 7). Digital Government: What is it, exactly? YouTube. https://www.youtube.com/watch?v=nmupdl8svmI
STEM Futures. (2023, May 18). STEM Futures Programme. GOV.UK. https://www.gov.uk/government/news/stem-futures-programme
techUK. (2025). Digital centre for government sets out a blueprint for modern digital government. Techuk.org. https://www.techuk.org/resource/digital-centre-for-government-sets-out-a-blueprint-for-modern-digital-government.html?utm_source=chatgpt.com
UNPD. (2022). Introduction to digital government. https://www.undp.org/sites/g/files/zskgke326/files/2022-10/Module%201%20Introduction%20to%20digital%20government_presentation.pdf
Vaduva, A., & Chang, K. (2024a, May). AI-Empowerment: The potential uses for AI in local government. Open Access Government. https://www.openaccessgovernment.org/ai-empowerment-the-use-of-ai-in-local-government/176805/
Vaduva, A., & Chang, K. (2024b, June 21). AI-empowered higher education: Challenges and opportunities. Open Access Government. https://www.openaccessgovernment.org/ideas-for-ai-empowered-higher-education/178340/
Zhang, W., Zhao, S., Wan, X., & Yao, Y. (2021). Study on the effect of digital economy on high-quality economic development in China. PLOS ONE, 16(9), e0257365.
Zhao, F., Wallis, J., & Singh, M. (2015). E-government development and the digital economy: a reciprocal relationship. Internet Research, 25(5), 734–766.