Author: Milda Beišytė, Innovation expert, GovTech Lab Lithuania

GovTech is a powerful tool for public sector institutions in their pursuit of digital government solutions through processes of collaboration and experimentation. It encourages the culture of innovation and risk taking, as well as collaborative interactions with multiple stakeholders while modernizing the public services.  Public institutions increasingly recognize the value of GovTech in improving service and operational efficiency, fostering transparency and complementing existing public sector capabilities to explore what is possible, experiment with new approaches, and develop scalable solutions in co-operation with private sector.

Such an opportunity for co-operative exploration and experimentation was also at the center of GovTech4All Startup Challenge pilot, where a local municipality in Lithuania had an opportunity to participate in the Open Innovation Process when looking for a digital solution to monitor energy use for greater consumption efficiency in several educational institutions under its auspices (see the challenge pitch). The experience and lessons learnt, which Municipality of Šiauliai in Lithuania shares with us after having gone through the process, provides valuable insights in how participating in such projects helps to identify the benefits of innovation at a local level beyond the integration of concrete GovTech solution.  

Initial expectations and broader impact to public sector efficiency

The Municipality of Šiauliai came to the Startup Challenge with high expectations, having previously experienced success in similar innovation projects. The primary goal was to test an advanced technological solution for a well-identified problem: improving data accuracy in public service management through real-time public utility services consumption monitoring. The municipality sought a reliable, data-driven approach to decision-making, which would enable better resource allocation and operational efficiency. A solution was sought by means of having an open call to potential providers and their participation in a Design Contest public procurement process for innovation. The winning solution for programming services related to monitoring systems and user software was contracted and piloted in three different municipal schools.

Upon launching the initiative, the municipality of Šiauliai anticipated robust solutions with proven efficiency. However, the feedback from the municipality was that, although the proposals received were detailed and offered alternative methods, some fell short of initial expectations. The municipality had hoped for a broader range of innovative solutions, including those from international companies. Despite this, the experience of participation in the Startup Challenge provided valuable insights into the innovation process and only strengthened the conviction for the need and value of GovTech integration.

One of the most notable innovations tested during the Startup Challenge was a new method of data collection. The adoption of the new method came about as a response to finding solutions to the regulatory constraints imposed on using the most optimal but rather invasive method while running the pilot project. As a result, sensors were used to indirectly measure water flow in three different institutions, which required data calibration work and constant monitoring of data validity. When faced with diverse metering service systems in different institutions, the solution was adapted so that the data was directly retrieved via an API from the national electricity provider (ESO), enabling real-time monitoring without invasive metering installations. 

Through the digitalization of the public utility services monitoring, the municipality explored numerous opportunities for improving energy efficiency across public institutions. Namely, the new system allowed real-time energy monitoring and historical data analysis over different periods of time (weeks, months, years). It allows to improve the temperature and the indoor climate in the school buildings, to make savings and to provide an optimally healthy learning environment. It also allows to adjust the strategic energy consumption planning for the coming year. The potential impact of the solution could be demonstrated to the wider community, such as school staff, children and their parents, who‘s experiences of public service management could also be affected positively. Moreover, a more accurate data analysis could help the municipality to identify inefficiencies and enable precise interventions to reduce energy waste.

In summary, the key broader benefits to public institution, stemming from the forementioned GovTech solution include:

• More accurate and transparent data: The digitalized system provides precise energy consumption data, ensuring more informed decision-making. Individual or comparative reports on energy consumption can be obtained in both absolute values ​​and derived values ​​(e.g. consumption per pupil or per m²). This allows the institution to analyze not only the overall situation, but also to make detailed comparisons and monitor changes over selected periods.
• Optimized resource management: Institutions can compare energy use across different buildings and time periods, enabling targeted energy-saving measures while providing an optimally comfortable learning environment.
• Financial savings: By identifying and addressing inefficiencies, municipalities could allocate budgets more effectively, reducing unnecessary energy expenditures.
• Improved public accountability: The availability of energy consumption data allows for better transparency, ensuring responsible energy use in public institutions. Individual users of services (school leaders, teachers, pupils and their parents) can consult the real-time data and compare it to that in the other schools while also learning about the benefits of sustainable energy use.

Challenges and lessons learned

Despite the promising results, the implementation process was not without obstacles. Some of the key challenges which the municipality was faced with during participation in the Startup Challenge included: 

• Resistance to change – the three municipal schools demonstrated a rather low initial interest in testing the new product, highlighting the challenge of securing stakeholder engagement in technological innovations and perhaps involving them already in very initial phases of the project.
• Data validation issues – Due to varying data reporting methods across schools and institutions, the validation of smart meter readings proved to be a challenge. The municipality had to calibrate and cross-check data continuously to ensure reliability.
• Regulatory and technical constraints – Because the project was in a pilot phase, certain optimal solutions, such as direct smart meter readings, could not be implemented due to regulatory restrictions.
• Limited supplier diversity – The municipality had hoped to receive innovative proposals from international GovTech firms, but most submissions were local, limiting exposure to global best practices.

Notwithstanding these difficulties, participation in the Startup Challenge provided municipality project team with valuable learning opportunities. While working in multidisciplinary team and collaborating across different departments the team had in effect created the possibility to experience the potential of fostering innovation culture in the organization, acquired competencies beyond standard professional duties and enhanced its institutional capacity for future innovations. 

Prospects for future GovTech innovation 

While the current and final iteration of the GovTech solution may have fallen somehow short of initial expectations, it nevertheless demonstrated GovTech’s potential in catalyzing change in public administration institutions. The municipality recognizes the need to either enhance the existing system of energy monitoring or seek further technological advancements if the process of digitalization is to be continued. But most importantly, it also identified potentially new paths for future innovation and potential GovTech applications, including:

• The use of artificial intelligence for predictive analytics: AI-driven models could forecast future energy consumption based on weather conditions, seasonal variations, and past usage trends.
• Automated infrastructure management: Smart sensors and automated control systems could optimize heating, lighting, and energy use in real-time based on occupancy and external conditions.
• Open data and public engagement: Making energy consumption data publicly available could encourage civic engagement and responsible energy use.

When asked what recommendations the municipality would give to other public institutions, who are still considering embarking on the journey of GovTech, it listed a few tips:

• Start with a clear vision – Define specific problems and desired outcomes before engaging with GovTech solutions.
• Encourage multi-stakeholder collaboration – Engage various departments, private sector partners, and the public to ensure holistic solutions.
• Remain open to experimentation – Not all solutions will work immediately; iterative testing and adaptation are crucial.
• Ensure strong leadership support – Institutional backing and executive buy-in can significantly enhance implementation success.
• Focus on scalability and integration – Consider how solutions can be expanded and integrated into broader digital transformation strategies.

GovTech innovation holds immense potential for transforming public administration, enhancing efficiency, and improving transparency. While challenges exist, the lessons learned from this study highlight the importance of continuous adaptation, stakeholder engagement, and the strategic use of technology. By embracing GovTech solutions, municipalities can not only improve their operations but also drive sustainable, data-driven governance for the future.