Digital transformation has emerged as a term that describes the departure from digitization efforts to a full stack revision of the policies, processes and services in order to create simpler user experiences for citizens and frontline workers. While previous waves of digitization focused on the transition from analog to (parallel) digital services to increase efficiency and effectiveness of government services, digital transformation aims to redesign and reengineer government services from the ground up to fulfill changing user needs. At the center of these efforts are users -both internal and external users -of digital services who are included in the digital transformation efforts. This panel therefore brings together four aspects of digital transformation: a) dynamic capabilities as a precondition for digital transformation; b) co-design of digital services with users; c) digital co-production and co-creation to increase legitimacy of digital services; and d) co-creation with open data to improve digital service delivery While there is a venerable research tradition discussing dynamic capabilities in the private sector there is nothing comparable in the case of the public sector (see, e.g., [1][2][3]). At the same time, there are ample of examples of public organisations and sometimes whole countries behaving dynamically, that is creating change that significantly alters what government does (see, e.g., [4][5][6]). Digital transformation offers a good case to study how such capabilities are formed and maintained in the public sector as many countries are attempting to use digital technologies to rethink public organisations and services [7]. This article argues that there are two ideal-typical models of digital transformation -Estonia's country-as-a-service and UK's country-as-a-platform approaches, respectively -that can be studied as different yet parallel cases of not just digital transformation but also of how dynamic capabilities are created and maintained in the public sector. The article is based on interviews with key actors in Estonia and the UK, and traces history and evolution of both concepts (country-as-a-service and country-as-a-platform) and their context specific implementation processes, and successes and failures. This comparison allows to tease out some of the key aspects of dynamic capabilities in the public sector.
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