Government Business Model

Every organization has a value or business model that describes what it does. Although governments aren’t in “business,” they have implicit models that explain what business they are in. Typical government “business models” reflect their mission value: regulatory, legislative, law enforcement, citizen services, economic stabilization or industry support. For example, a local government may issue grants to housing developers to support low-income housing. The capability of issuing, paying and overseeing those grants provides different value propositions to construction companies and citizens, who will pay for that service through some combination of fees and taxes.

Business models consist of customer (or citizen), value proposition, capabilities and financial model (or funding model for government). When two or more of these areas are impacted, Gartner says the organization is going through a transformation. In government, this can happen when agencies, ministries or departments are restructured (combined, divided, created) or when new services are added. Transforming the citizen’s journey by orchestrating activity across agencies, and adding a platform capability to the ecosystem, are examples of government transformation. 

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