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Digitalization Helps Ensure Reliable Delivery of Service

Across the globe, public sector organizations face rising complexity and demand. From government administration to transportation, healthcare, education and utilities, agencies carry the weight of maintaining service delivery while navigating economic pressures, aging infrastructure and evolving risks.

To meet these demands, many invest in digitalization. These efforts aim to strengthen resilience, manage costs, reduce disruption and build more sustainable communities. At the heart of this transformation lies a fundamental need: the ability to access, understand and act on data.

Hexagon’s global research confirms the growing role of data in public service delivery. In a survey of 400 executives and senior leaders, 70% of respondents reported an increase in the number of digital tools they use. Despite this investment, many struggle to connect tools effectively, visualize key metrics and extract insights without added workload.

The challenge lies in how organizations structure, manage and act on data across their operations. The good news? Leaders who adopt a focused data strategy can overcome these barriers and improve both service reliability and operational agility. Explore the full Data Visibility & Operational Resilience in the Public Sector eBook to learn more.

Expectations Continue to Rise

Today’s public sector organizations operate under intense pressure to deliver more with fewer resources. For example, many agencies struggle with scalability and skill shortages. Hexagon’s survey found that 68% of leaders feel the inability to scale assets has a severe or strong negative impact on operations. 76% cited skills and knowledge gaps as another top concern.

Yet, citizens continue to expect fast, reliable and transparent services and project delivery. Digital innovation must support these goals. In the United States, EY’s 2025 analysis of state-level government policymakers now prioritize efficiency and responsiveness through data-driven decisions.

Digitalization also drives public trust. McKinsey research increase in citizen satisfaction translates to a two-point rise in trust.

However, better data integration offers a clear path forward. Public sector leaders who improve data visibility and automate manual workflows report stronger outcomes in both service delivery and citizen satisfaction.

Budget Pressures Demand Smarter Investments

Budget constraints represent a universal challenge. Agencies face growing costs while managing long-term infrastructure projects. For example, the Asian Transport Observatory estimates $2.7 trillion annually by 2035.

In Hexagon’s survey, 64% of respondents said project budget overruns significantly affect operations. Despite the push toward digital transformation, many public sector organizations feel their investments are not delivering expected value.

A 2024 study by KPMG and Forrester found that only 17% of public sector leaders in the United Kingdom felt that their transformation efforts were fully successful. A lack of technology strategy (49%) and budget constraints (44%) were the top-cited challenges.

Organizations see better financial outcomes when they align asset and project management through long-term capital planning. That is because these departments can then develop a clear view of which assets to prioritize and how to allocate resources with greater precision, leading to more effective decision-making and improved budget performance.

Visibility into Risk Supports Better Decisions

Risk management has become more urgent. Public sector leaders must protect infrastructure, data and community trust. To do so, they need visibility into risks across systems and supply chains.

Hexagon’s survey data shows that without data on performance, condition and outcomes, decisions become reactive. Effective risk management depends on this visibility. In fact, 63% of leaders cite cybersecurity as a major operational risk. Among organizations that expanded their toolsets last year, 66% now face greater cybersecurity challenges, compared with 53% of those that did not.

Gaps in third-party visibility also present challenges. Many government agencies lack real-time information on suppliers or infrastructure conditions, increasing the likelihood of disruption. Addressing these gaps requires better integration between data systems and strategic alignment with risk frameworks.

Why Strategy Drives Digital Value

Public sector organizations face ongoing pressure to do more with less, driving the need for smarter infrastructure investment, process automation and cost control. While digital tools like AI and automation can improve service delivery, their effectiveness depends on connected data and strategic deployment. Many agencies continue to struggle with fragmented systems and rising manual workloads, despite increased adoption of technology. According to Hexagon’s global survey, 56% of leaders reported that digital transformation has not delivered the expected returns, with 63% noting an increase in time spent on manual reporting.

To address these issues, organizations must pair digital investment with a robust asset and project management strategy and progress toward higher digital thread maturity. That means adopting a platform-based approach to data to preserve the context of information across systems and enable a continuous digital thread. This thread connects asset data from design through operation, enhancing traceability for smarter decisions and improved operational performance.

Taking the Next Step

Public sector organizations have an opportunity to modernize systems, reduce inefficiencies and build resilience into their operations. The path forward lies in connected insight, driven by strategy and purpose. Download Hexagon's Data Visibility & Operational Resilience in the Public Sector eBook .