Digital Transformation of Municipal Services in Finland

Digitalization has been widely adopted by private organizations of all sizes. As customers we are starting to expect a certain level of digital services from businesses and these expectations are evolving to consider the public sector services as well. Moreover, the Finnish municipalities are under pressure to cut costs and make their operation more efficient. This research aims in exploring the field of municipal digitalization in Finland with three main questions to answer: what are the motivations for municipalities for digital service transformation, what the main benefits of this transformation are and what are the challenges for the transformation. The research starts with examining the characteristics of municipal operation and reviewing some of the relevant digital service opportunities. In the empirical part of the research, 11 professionals related to the municipal field were interviewed using a semi-structured interview design. These interviewees were chosen from three important groups for the change: the service provider, municipal administration and municipal employees. The data gained from the interviews was first summarized according to the main topics chosen from the literature and then reflected on the digital services opportunities presented in the research. The motivations discovered in both the service provider and the city of Porvoo interviews were: tightening resources combined with increasing expectations, transparent structuring of information, supporting the shift into mobile and providing new channels for customers to participate. The benefits discovered in all groups were: efficiency, customer experience, transparent structuring of information, reducing manual input and responding to customer needs in service development. The challenges perceived by multiple groups were: change resistance, innovating new with no best practices and defining the scope and new operation model. The results of this research suggest that even with some challenges along the way, digitalization is a likely future for the Finnish public sector. The business case for the transformation is becoming increasingly evident on both municipal- and governmental levels.

Deviations of Governance In IT Multi-Sourcing: A Case Study

IT outsourcing (ITO) refers to the shift of IT/IS activities from internal to external of an organization. In prior research, the governance of ITO is recognized with persistent strategic importance for practice, because it is tightly related to ITO success. Under the rapid transformation of global market, the evolving practice of ITO requires updated knowledge on effective governance. However, research on ITO governance is still under developed due to the lack of integrated theoretical frameworks and the variety of empirical settings besides dyadic client-vendor relationships. Especially, as multi-sourcing has become an increasingly common practice in ITO, its new governance challenges must be attended by both ITO researchers and practitioners. To address this research gap, this study aims to understand multi-sourcing governance with an integrated theoretical framework incorporating both governance structure and governance mechanisms. The focus is on the emerging deviations among formal, perceived and practiced governance. With an interpretive perspective, a single case study is conducted with mixed methods of Social Network Analysis (SNA) and qualitative inquiries. The empirical setting embraces one client firm and its two IT suppliers for IT infrastructure services. The empirical material is analyzed at three levels: within one supplier firm, between the client and one supplier, and among all three firms. Empirical evidences, at all levels, illustrate various deviations in governance mechanisms, with which emerging governance structures are shaped. This dissertation contributes to the understanding of ITO governance in three domains: the governance of ITO in general, the governance of multi-sourcing in particular, and research methodology. For ITO governance in general, this study has identified two research strands of governance structure and governance mechanisms, and integrated both concepts under a unified framework. The composition of four research papers contributes to multi-sourcing research by illustrating the benefits of zooming in and out across the multilateral relationships with different aspects and scopes. Methodologically, the viability and benefit of mixed-method is illustrated and confirmed for both researchers and practitioners.