Is Ownership Obsolete? - Share Your Way to Government Innovation - Accenture
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Is Ownership Obsolete? Share Your Way to Government Innovation
2 Is Ownership Obsolete? Is Ownership Obsolete? 3
Governments need to purchase, The case for borrowing, not buying
manage and control all of the assets Digital technologies are empowering individuals and
companies to take a modern approach to an old-
they use to deliver public services. fashioned idea: sharing. Shared use platforms make it
Or do they? easy to connect those who need a particular asset or
service with those who have excess capacity. Shared use
Digitally enabled platforms are forging new operating
creates clear advantages in terms of cost efficiency—
models for transportation, lodging and a host of other
whether paying only for what you consume as a buyer or
services. Digital is also powering new avenues, including
generating a better return on investment as a seller.
crowdsourcing, for collecting, sharing and using data
to drive innovation and tackle some of society’s most Accenture research shows that both public service
complex problems. Pioneering organizations are seizing leaders and individual citizens recognize that having
these opportunities to make a difference and a profit by access to an asset or service does not require owning
operating as ecosystems, not just as individual corporate it. In the survey, 62 percent of citizens and 66 percent
entities. By mastering this shift from “me” to “we,” of leaders think government use of sharing economy
such enterprises are shaping a new economy—the “We services will improve overall citizen satisfaction with
Economy”. In fact, according to one estimate, the five government. What’s more, 62 percent of citizens and
main sharing economy sectors1 generated $15 billion in 76 percent of government leaders think shared use
revenue in 2013 and are poised to generate as much as will positively change citizen views of government as
$335 billion by 2025.2 innovative and forward thinking.
What does the “We Economy”—and its digitally enabled
One example is use of third-party car-sharing
platforms, models and tools—mean for government? In
platforms to dramatically reduce the size and improve
a word: plenty. While many are focused on regulatory
the utilization of government fleets, or maintaining
issues arising from these disruptive models, government
a common pool of vehicles for rent across agencies
innovators are embracing them as opportunities to drive
or municipalities. In communities with robust public
enhanced performance. Indeed, as “We Economy” models
transportation, third-party car sharing services, such as
continue gaining momentum, government can either
Lyft and Uber, may enable government to completely exit
get on board or be left behind.
the “business” of fleet management—cutting capital and
New research from Accenture confirms that citizens operating expenses, reducing risk and making a positive
support government use of sharing platforms and impact on the environment.
other “We Economy” models, pointing to opportunities
In the San Francisco Bay Area, local government
to enhance citizen perceptions, engagement and
employees are using Lyft to cover the first and last mile
satisfaction with government. The survey also shows
of public transportation. Similarly, the City of Chicago
that public service leaders recognize the value in
uses Zipcar to meet some of its fleet needs and has
using “We Economy” strategies—from shared use to
found that Zipcar costs $.25 less per mile versus owning
crowdsourcing—to enable government innovation,
and operating its own fleet.3
strengthen citizen engagement and improve outcomes.
And, secondary research has uncovered a number of
examples of how government is already tapping into
the potential for “We Economy” solutions.
All told, the research findings raise two crucial questions:
Why should government build what it can borrow? And,
why shouldn’t government use digitally enabled platforms
to get more from what it already owns?
4 Is Ownership Obsolete? Is Ownership Obsolete? 5
Car-sharing platforms can also help close gaps in public Digital: A direct line to citizens and their data
transportation services without requiring massive government
investment. Consider, for instance, Dallas Area Rapid Transit Widespread adoption of mobile devices is creating another
(DART), which has partnered with Uber. Using the GoPass Mobile set of opportunities for government innovation. Through
Ticketing Application, customers can purchase a ticket for DART third-party mobile apps, citizens are already providing
as well as order an Uber ride for transportation to and from the valuable information that can be used to shape and
station.4 Similarly, HART—the public transit system in Hillsborough deliver public services—without government bearing the
County, Florida—is talking to Uber and Lyft about a partnership to full burden of storing and managing the data. More than
Lifts for employees with connect customers to the bus system. The pilot project is helping three-quarters of citizens (76 percent) support the use of
less drag on budgets deliver door-to-door public transit for disabled riders and those crowdsourced data to inform service delivery.
who use paratransit services.5
By the end of 2020, New York Among the opportunities: Monitoring Yelp or similar
City plans to eliminate 10 apps to identify which restaurants and hotels are
Get more from what you already own most likely to be out of compliance with health and
percent of its light-duty vehicles, safety regulations. Using third-party sensor data to
replacing the fleet with car sharing. While ownership may not be obsolete, traditional models are monitor and respond to weather and/or public safety
The Department of Corrections will becoming less desirable. In Accenture’s survey, citizens are conditions. And mining driver-provided data to help
be the first City agency to roll out supportive of government sharing a wide range of assets. Indeed, guide highway and road infrastructure repairs and
87 percent of citizens support the idea of government sharing long-term planning. Already, the City of Detroit and
car sharing. In time, NYC will expand heavy equipment, which is often underutilized and very expensive other municipal governments are leveraging the mobile
car sharing and fleet sharing for for local governments. app SeeClickFix as a communications platform for
City workers and expects to save citizens to report non-emergency issues. Governments
Through MuniRent, six local governments in Michigan are already can use the SeeClickFix platform to track, manage and
$5,000 per year per reduced vehicle.6
renting equipment to and from each other. MuniRent empowers reply to citizen-reported issues.10
these organizations to get the gear they need at a lower rate than
To reduce the size of its fleet,
purchasing and maintaining their own equipment or renting it While there may never be a time that government can or
the General Services Administration from a private company.8 should depend fully on such sources, there’s little question
(GSA) has launched a car-sharing that these data sets can have a significant positive impact
Forward-thinking governments also are tapping into sharing
program with Enterprise CarShare. on how services are designed and delivered. In addition to
platforms to reduce the cost and risk associated with the real helping government reduce its infrastructure requirements,
Through a pilot in Washington, estate they own. In Accenture’s survey, fully eight in 10 citizens tapping into digital ecosystems also supports stronger
DC, New York City, Boston and agreed that government has excess resources—including citizen engagement. Call it “collaborative production,”
Chicago, government agencies facilities—that are currently underutilized. LiquidSpace, which lists with mobile devices making it far simpler and easier for
and their employees will have offerings in more than 500 cities across the U.S., Australia and citizens to step up as co-creators of public services.
Canada, offers a platform for renting workspaces and meeting
access to car-sharing services rooms by the day or hour. In California, the cities of Palo Alto, San
24/7 in these cities.7 Francisco and Santa Cruz have listed their unused space, including
areas in public libraries and other government buildings, for rent
via LiquidSpace.9
Digital and mobile technologies have combined with public
support to create a host of opportunities to transform the way
government manages the infrastructure it has already acquired.
Embracing new models can help drive government innovation,
trim costs, reduce waste and enhance risk management.
6 Is Ownership Obsolete? Is Ownership Obsolete? 7
Procuring change That needs to change. How and where should you start?
Accenture recommends the following:
Mitigating risk. Matching expenses with revenues.
Engaging with citizens. Improving services and
• Identify swift wins. Getting started with the “We Government doesn’t need to own every asset and control every
Economy” needn’t be a long, protracted project. To
outcomes. Every local and state government is working
to address those critical goals. And, every government
start, tap into existing platforms, such as Uber and resource in order to deliver public services. It does, however, need
should be exploring how “We Economy” opportunities
Lyft for first- and last-mile transport, Airbnb for
emergency shelter following natural disasters or
to let go of long-held assumptions in order to grab on to newly
can help. Yet, Accenture’s survey revealed that
across a range of such opportunities, half or fewer of
MuniRent to share heavy equipment. forming models that will allow it to fuel government innovation
government leaders will consider implementing them
in the next 10 years. At most, only one in five are
• Borrow before you buy. When contemplating the
purchase of almost any asset, ask first, “Can we
and succeed at delivering public services for the future.
considering implementation of the various opportunities borrow or rent?” The opportunities for sharing are
today. At the same time, half of leaders say their limited only by your willingness to try.
organizations are unprepared to meet the challenges
• Lend what you already own. Look at existing assets.
of engaging with or using the sharing economy to
Ask, “What do we have that’s underutilized?” Then
deliver services. About a quarter report evaluating
look for a “We Economy” approach that you can adopt
or discussing sharing economy impacts—but almost
to get more use, and more revenue, from what you
40 percent report no engagement with sharing
already own.
economy issues.
• Cut your residents in on the action. Apps like
NextDoor and SeeClickFix can quickly get your
residents connected and active with you in solving
problems and effectively delivering services.
For government, the path to participation in the “We
Economy” is not long. Nor are the barriers high.
Government doesn’t need to own every
For more information, About Accenture Resources
please contact: Accenture is a leading global 1
That report defines the five main sharing economy
sectors as peer-to-peer lending and crowdfunding,
professional services company, providing
online staffing, peer-to-peer accommodation, car
Peter C. Hutchinson a broad range of services and solutions sharing, and music and video streaming.
Managing Director, for government in strategy, consulting,
2
“The Sharing Economy – Sizing the Revenue
Accenture Public Services Strategy digital, technology and operations.
Opportunity.” Pwc. Available at: http://www-pwc-co-
Health & Public Service Combining unmatched experience and uk-dpe-staging.pwc.com/issues/megatrends/collisions/
peter.c.hutchinson@accenture.com specialized skills across more than sharingeconomy/the-sharing-economy-sizing-the-
40 industries and all organizational revenue-opportunity.html
functions—underpinned by the world’s
Pari Sabety 3
“How cities are saving big bucks with car sharing.”
largest delivery network—Accenture Government Executive, July 9, 2014. Available at:
Senior Manager,
works at the intersection of government http://www.govexec.com/state-local/2014/07/car-
Accenture Public Services Strategy
and technology to help clients sharing-chicago-zipcar-indianapolis-blueindy/88141/
Health & Public Service
improve their performance and create 4
Dallas Area Rapid Transit, Uber partner in effort to
j.p.sabety@accenture.com
sustainable value for their stakeholders. fill in riders’ ‘first-mile-last-mile’ Gap.” The Dallas
With more than 358,000 people serving Morning News, April 14, 2015. Available at: http://
clients in more than 120 countries, transportationblog.dallasnews.com/2015/04/dallas-
area-rapid-transit-uber-partner-in-an-effort-to-fill-in-
Accenture drives innovation to improve
riders-first-mile-last-mile-gap.html/
the way citizens work and live.
Connect with us to learn
5
HART pilot project could include partners with Lyft,
For more information visit
Uber.” The Tampa Tribune, August 17, 2015. Available
more on delivering public www.accenture.com/publicservice at: http://www.tbo.com/news/transportation/could-
service for the future on hart-partner-with-lyft-uber-20150817/
Twitter @AccenturePubSvc 6
“NYC Expands Car Sharing in Fleet Reduction Plan.”
Government Fleet, June 15, 2015. Available at: http://
www.government-fleet.com/channel/operations/news/
story/2015/06/nyc-expands-car-sharing-in-fleet-
reduction-plan.aspx
7
“GSA Begins Car Sharing Pilot Program.” Government
Fleet, October 3, 2014. Available at: http://www.
government-fleet.com/channel/safety-accident-
management/news/story/2014/10/gsa-begins-car-
sharing-pilot-program.aspx
8
“MuniRent brings the sharing economy to the
local government level.” L’Altelier, May 19, 2015.
Available at: http://www.atelier.net/en/trends/articles/
munirent-brings-sharing-economy-local-government-
level_435577
9
“LiquidSpace Used by California Cities to Rent Out
Public Workspace,” Government Technology, April
5, 2012. Available at: http://www.govtech.com/e-
government/LiquidSpace-Used-by-California-Cities-to-
Rent-Out-Public-Workspace.html
10
“How the ‘Improve Detroit’ Mobile App will Transform
the City.” SeeClickFix Blog, April 8, 2015. Available at:
http://blog.seeclickfix.com/how-the-improve-detroit-
mobile-app-will-transform-the-city
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