Big Data in the Public Sector

The public sector is becoming increasingly aware of the potential value to be gained from big data, as governments generate and collect vast quantities of data through their everyday activities.

The benefits of big data in the public sector can be grouped into three major areas, based on a classification of the types of benefits: advanced analytics, through automated algorithms; improvements in effectiveness, providing greater internal transparency; improvements in efficiency, where better services can be provided based on the personalization of services; and learning from the performance of such services.

The chapter examined several drivers and constraints that have been identified, which can boost or stop the development of big data in the sector depending on how they are addressed. The findings, after analysing the requirements and the technologies currently available, show that there are open research questions to be addressed in order to develop such technologies so competitive and effective solutions can be built. The main developments are required in the fields of scalability of data analysis, pattern discovery, and real-time applications. Also required are improvements in provenance for the sharing and integration of data from the public sector. It is also extremely important to provide integrated security and privacy mechanisms in big data applications, as public sector collects vast amounts of sensitive data. Finally, respecting the privacy of citizens is a mandatory obligation in the European Union.

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1 Introduction

The public sector is becoming increasingly aware of the potential value to be gained from big data. Governments generate and collect vast quantities of data through their everyday activities, such as managing pensions and allowance payments, tax collection, national health systems, recording traffic data, and issuing official documents. This chapter takes into account current socio-economic and technological trends, including boosting productivity in an environment with significant budgetary constraints, the increasing demand for medical and social services, and standardization and interoperability as important requirements for public sector technologies and applications. Some examples of potential benefits are as follows:

1.1 Big Data for the Public Sector

As of today, there are no broad implementations of big data in the public sector. Compared to other sectors, the public sector has not been traditionally using data mining technologies intensively. However, there is a growing interest in the public sector on the potentials of big data for improvement in the current financial environment.

Some examples of the global growing awareness are the Joint Industry/Government Task Force to drive development of big data in Ireland, announced by the Irish Minister for Jobs, Enterprise and Innovation in June 2013 (Government of Ireland 2013), or the announcement made by the Obama administration (The White House 2012), on the “Big Data Research and Development Initiative” where six Federal departments and agencies announce more than $200 million in new commitments to greatly improve the tools and techniques needed to access, organize, and glean discoveries from huge volumes of digital data.

1.2 Market Impact of Big Data

There is no direct market impact nor competition, as the public sector is not a productive sector, although its expenditure represented 49.3 % of GDP in 2012 of the EU28. The major part of the sector’s income is collected through taxes and social contributions. Hence, the impact of big data technologies is in terms of efficiency : the more efficient the public sector is, the better off are citizens, as less resources (taxes) are needed to provide the same level of service. Therefore, the more effective the public sector is, the more positive the impact on the economy, by transition for the rest of productive sectors, and more positive impact on society. Additionally, the quality of services provided, for example, education, health, social services, active policies, and security, can also be improved by making use of big data technologies.

2 Analysis of Industrial Needs in the Public Sector

The benefits of big data in the public sector can be grouped into three major areas, based on a classification of the types of benefits:

Big Data Analytics

This area covers applications that can only be performed through automated algorithms for advanced analytics to analyse large datasets for problem solving that can reveal data-driven insights. Such abilities can be used to detect and recognize patterns or to produce forecasts.

Applications in this area include fraud detection (McKinsey Global Institute 2011); supervision of private sector regulated activities; sentiment analysis of Internet content for the prioritization of public services (Oracle 2012); threat detection from external and internal data sources for the prevention of crime, intelligence, and security (Oracle 2012); and prediction for planning purposes of public services (Yiu 2012).

Improvements in Effectiveness

Covers the application of big data to provide greater internal transparency. Citizens and businesses can take better decisions and be more effective, and even create new products and services thanks to the information provided. Some examples of applications in this area include data availability across organizational silos (McKinsey Global Institute 2011); sharing information through public sector organizations [e.g. avoiding problems from the lack of a single identity database (e.g. in the UK) (Yiu 2012)]; open government and open data facilitating the free flow of information from public organizations to citizens and businesses, reusing data to provide new and innovative services to citizens (McKinsey Global Institute 2011; Ojo et al. 2015).

Improvements in Efficiency

This area covers the applications that provide better services and continuous improvement based on the personalization of services and learnings from the performance of such services. Some examples of applications in this area are personalization of public services to adapt to citizen needs and improving public services through internal analytics based on the analysis of performance indicators.

3 Potential Big Data Applications for the Public Sector

Four potential applications for the public sector were described and developed in Zillner et al. (2013, 2014) for demonstrating the use of big data technologies in the public sector (Table 11.1).

7.1 Pattern Discovery