Few advances have had such a profound effect on society as the advent of the digital age. Today, as the first generation of digital natives become adults, government entities at all levels are faced with the challenge of delivering digital citizen experiences that are seamless, secure, informed and intuitive.

Already many Australians rely on technology to do everything from banking to dating, accessing support or seeing a doctor. Increasingly, citizens expect streamlined, efficient and user-friendly interactions with public institutions–just like they experience in the private sector.

The Australian Government’s Digital Experience Policy officially recognises there is “an opportunity to use data and digital technologies to improve our service delivery and decision-making, with a goal of better outcomes for all people and business.”

To achieve this, the policy itself:

• Sets standards for high-quality digital engagement
• Integrates data-driven insights based on actual use
• Standardises the design and delivery of digital government services
• Measures performance so that services can be continuously improved

The e-Estonia experience

Estonia is an exemplar of a digital-first government. As a country the same size as the Netherlands – albeit with a population of 1.2 million compared with 80 million, Estonia faced the challenge of working out how to deliver citizen services in a cost-effective way when they first gained independence from the USSR. (With our dispersed population and vast country, Australia faces much the same challenge, albeit without the luxury of building a unified national system from scratch.)

Understanding that analogue, in-person delivery would soon send them bankrupt, Estonia recognised early that digital would be the answer. But without the resources to buy existing systems, they knew they would have to build their own. Their first prophetic step was to establish a universal digital ID in 2002.

Only once the digital ID was firmly established were government services linked in. The platform for data exchange is known as X-road today, and it is the backbone that links each citizen and their unique digital ID with services such as the tax office.

Today, an astounding 100% of interactions with government are digital, from online tax to registering the birth of a baby, voting, registering a change of address or setting up a business (estimated time is a mere 15 minutes). Even the ability to file for divorce online was rolled out in December 2024 (albeit with a few safeguards against impetuous decisions!).

While Estonia had the advantage of starting from scratch, the path forward for countries like Australia is more complex—requiring updates to legacy systems, coordination across large institutions, and alignment with established regulations.

Challenges in achieving digital transformation

Bringing government operations into the digital age is anything but simple. From legacy systems and skill shortages to cultural resistance and systemic barriers, the path to transformation is strewn with challenges.

Legacy systems: an anchor slowing progress

One of the most significant obstacles government entities face is the reliance on outdated computer systems and software. These legacy systems, often decades old, are difficult – and sometimes impossible – to modernise without a complete overhaul.

Many of these systems were not designed to integrate with today’s digital solutions, let alone future technologies. Their incompatibility with modern tools makes it difficult to introduce automation, artificial intelligence or cloud computing into workflows. As a result, public sector agencies are often stuck maintaining ageing infrastructure rather than building innovative new citizen services.

Skills gaps: a shortage of digital talent

Even if governments manage to upgrade their technology, they frequently lack the people needed to use it effectively. There is a growing digital skills gap across the public sector, with many agencies struggling to attract and retain qualified IT professionals.

This problem is compounded by a shortage of personnel who can bridge the gap between technology and business needs. Governments need people who not only understand IT or cybersecurity, but also how to apply those skills to improve public services. Without this hybrid expertise, even the best tools can fall flat.

Cultural resistance: change isn’t easy

Cultural resistance is another major hurdle. Public sector employees may be wary of new technologies – especially if they believe these tools will complicate rather than simplify their work. If the benefits of digital solutions aren’t clearly communicated or if employees aren’t involved in the transformation process, pushback is all but inevitable.

Moreover, government organisations often operate within deeply rooted frameworks, where policies and procedures are hardwired into daily operations. Changing these long-established practices can be slow, difficult and full of internal friction.

Other barriers: funding, silos, security and compliance

Beyond systems, skills, and culture, governments must also confront several practical challenges:

• Insufficient funding: Digital transformation requires sustained investment, but budgets are often tight and subject to political fluctuations.
• Siloed decision-making: Departments may work in isolation, leading to fragmented strategies and duplicated efforts rather than integrated digital ecosystems.
• Data security and privacy: With increasing digitisation comes the responsibility to protect sensitive data. Balancing innovation with privacy and cybersecurity is a high-stakes game.
• Regulatory compliance and transparency: Governments must ensure that new digital processes remain transparent and adhere to strict regulations. This adds a layer of complexity that private companies don’t always face.

Moving forward: a collaborative approach

Despite these challenges, digital transformation in government is not only possible–it’s essential. As we’ve seen at Riverbed, meeting today’s challenges—strengthening IT security, advancing digital transformation, improving user experiences, supporting hybrid workforces–demands networks and applications that offer actionable insights, seamlessly and at scale. Today, at all levels of government, Riverbed’s unified observability and acceleration solutions are helping organisations thrive and become more resilient. Riverbed’s deep experience and proven solutions help public sector organisations meet these challenges, solve pain points and achieve outcomes that allow for continued mission success.

Change may be slow, but with the right strategy, it can be meaningful and lasting. After all, the goal isn’t just modernisation—it’s building a government that better serves its citizens in a digital age. At Riverbed, we’re helping government agencies overcome these barriers.

Contact us to learn how we can support your digital transformation journey.