Exploring the Challenges of Digital Transformation in Iran's Public Sector: The Structural Interpretive Modeling Approach

Today, digital transformation in the public sector has become an essential and strategic imperative for governments worldwide. In the digital age, citizens' needs and expectations have evolved, necessitating that government organizations undertake digital transformation in alignment with citizens' demands. However, the public sector sometimes struggles to fulfill this role, facing challenges that stem from its perceived inefficacy in the eyes of society. Based on this, the main goal of this research is to analyze the challenges of digital transformation in Iran's government organizations; fulfilling this goal requires answering the following two questions: 1) What are the challenges of digital transformation in Iran's government organizations? 2) What is the interpretive structural model and internal relations of digital transformation challenges in Iran's government organizations?

THEORETICAL FRAMEWORK:

Many definitions have been presented for digital transformation, some of which have been considered more suitable for the public sector. Digital transformation in the public sector is based on three aspects: 1) changing priorities to meet the expectations of the new generation, 2) using new technologies such as big data, deep learning, decision-making systems, and other technologies, and 3) expanding the scope of using technologies to innovate in social processes. Digital transformation in the public sector does not only lead to online services and digitization; Rather, it has broader consequences, including creating new value for citizens through providing quality services and listening to the voices of citizens and other institutions to ensure a just society. However, given the paucity of studies on the challenges of digital transformation within Iran's public sector, the present study aims to analyze its challenges in this sector.

The methodology comprises a two-step process. First, digital transformation challenges were extracted from the literature and interviews with experts. Several semi-structured interviews were conducted in this research mostly by phone, and a few in person due to the Coronavirus pandemic. The participants of this research were digital transformation experts and IT specialists, whose number should be between 12 and 25 people based on Warfield's theory. Second, interpretive structural modeling was utilized to prioritize and mitigate the challenges. The structural-interpretive model, due to its ability to identify causal and complex relationships between a set of factors, analyze their effects on each other, and determine the ranking of system elements helps managers to make better decisions about implementing the designed model.

The results of the research were that challenge 10 (legal restrictions) at the first level, challenges 2 (consecutive management changes) and 3 (the presence of old generations in management positions) at the second level, challenge 4 (lack of recognition of digital transformation), 7 (risk aversion of government managers) and 8 (lack of knowledge and training in the field of digital transformation) at the third level, challenges 1 (lack of support from the senior manager), 6 (managers' inattention to change management), 9 (weakness in re-engineering operational processes), 11 (lack of digital strategy) and 12 (lack of strong digital transformation culture in government organizations) at the fourth level, and challenge 5 (dispersion of data) was placed at the fifth level. According to the findings of the research, "legal restrictions", "old generations in management positions" and "consecutive management changes" are considered the most influential challenges of digital transformation in the public sector and indicate their high impact on other challenges. As a result, they act as the cornerstone of the model that should be emphasized in the first place.

CONCLUSIONS & SUGGESTIONS:

The findings can inform future digital transformation programs/policies and provide insights for policymakers and government managers to determine priorities and overcome digital transformation challenges. According to the research findings, the most important challenge that originates from other challenges and many factors involved in its creation is the dispersion and non-integration of data. Data is considered the core of the digital government. But currently, Iran's government departments are not coordinated with each other and the competitive thinking between organizations has caused non-cooperation and as a result data silo. This is a fundamental obstacle to digital transformation in Iran's government organizations. Therefore, the successful implementation of digital transformation requires integrated information systems and increased cooperation at the national and international levels. As a result, considering the current conditions of Iran's administrative system and the importance of digital transformation in the public sector, the implementation of digital transformation in the public sector requires a comprehensive and coordinated organizational approach that includes creating a digital strategy, formulating appropriate policies, training and developing human resources, developing digital culture, improving information systems, and designing change management teams.