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Digital state: new business models brought by total digitalization

5 September 2019
Цифровое государство: Новые бизнес-модели на волне тотальной цифровизации


Digitalization of the state is inevitable

«I am looking at these words, ‘digital state’. I would put a colon and write: ‘either digital or none’. That is how the alternative looks like today. <...> If you do not have a balanced data model, if you cannot create instant one-click services knowing everything that is needed about a person, it means that this service will be provided by someone else, and it will become not a state, but a part of something else. <...> We have no time to ponder over some parts of data that we do not have in order to provide a service,» Maxim Akimov, Deputy Prime Minister of the Russian Federation.

«Nobody is now denying the need in digitalization. I guess everyone understands that it should be automated, available, fast, convenient, with less delays and with a higher level of satisfaction,» Yermolai Solzhenitsyn, Senior Partner, McKinsey & Company.

Executive and legislative powers are actively contributing in digitalization

«We are preparing four so-called superservices. They will be put in operation in the future, and each of them is in its own stage of development. As for services in labour, it has to deal with the pension system reform. I believe that we have made a great progress here <...> A legislative package, three draft laws that were approved by the government this July, were sent to the State Duma. These are the questions of gradual abolishment of paper employment record books,» Maxim Topilin, Minister of Labour and Social Protection of the Russian Federation.

«Working on superservices, we get four cross-cutting results. The first one is regulation, that is changing legislation <...> The second one is common business processes that are inevitably transforming when we talk about complex services. The third one is technologies, that is requirements for information systems that also must be designed in a cross-cutting manner <...> The fourth one is data. What data do we need? And also there is a question, who has the right to provide access to these data?» Maxim Parshin, Deputy Minister of Digital Development, Communications and Mass Media of the Russian Federation.

«In our country, on a federal level, informatization is being developed on a large scale. A number of state programmes for informatization and development of digital economy have been adopted and are now being implemented, legal framework is being improved, and administrative barriers obstructing digital development are being identified and eliminated <...> The leadership of the Federation Council pays special attention to ensuring favourable conditions for informational and digital development of our country,» Alexander Pronyushkin, Member of the Federation Council.


Lack of staff, technologies and legal framework

«We need to address three main issues, three blocks. The first one is the technological block. It is more or less clear. We need to be online, be secure, be cloud native. These are mature decisions; they are not disputable <...> The second block is the most serious — the employment issue. These are the people who are ready for these changes and will promote them <...> The third challenge is management. How can we change business processes?» Maxim Akimov, Deputy Prime Minister of the Russian Federation.

«We now talk a lot about the speed of change. Can we change rapidly? Many things depend on this. We need to answer the question, how do we change, because our procurement system <...> clearly is not in line with the challenges we are facing. There is another problem of how legislation is changing; we can develop any services, but as long as legal framework is in place, we cannot implement them,» Savva Shipov, Deputy Minister of Economic Development of the Russian Federation.

Uneven digital development of regions

«Here most people live in small towns of several hundred residents <...> Thinking about the future of digital products, I would like to emphasize that we need to pay more attention to this part of our population that is less advanced, that is older, that does not have much user experience. Our services and products should also be designed for them,» Mikhail Oseevskiy, President, Chairman of the Management Board, Rostelecom.


Proactive provision of state services to people

«Proactive format that we build into social services is, mainly, information, provision of advance information on social benefits. It means that if a family has a child, they need to learn about different kinds of support, but it does not mean — the government does not have such plans — that the family will automatically receive certain benefits,» Maxim Topilin, Minister of Labour and Social Protection of the Russian Federation.

«Proactive provision of social services is what people expect from us. Let’s take child allowance. In order to get it, one has to collect so many papers. <...> In our republic, we would like to implement a project to provide these services proactively. It means that when a child is born, parents do not need to do anything, the state collects all electronic documents, and money is sent to their account,» Aysen Nikolaev, Head of Sakha Republic (Yakutia).

«The problem is that the state treats people as citizens. Just imagine that a person is a state’s client: it implies a dramatic shift in perception. You will see that we all compete for the same people, state’s clients, bank’s clients, telecom clients. In our bank, we provide instant, proactive services, we give recommendations to clients, and they get used to it. And then they expect the same from the state,» Alexander Vedyakhin, First Deputy Chairman of the Executive Board, Sberbank.

Creating infrastructure to provide universal access to digital services

«When we talk about the digital state, digital services, infrastructure is much more important than the services, because they are secondary. The primary thing is the infrastructural development. <...> I believe that setting up infrastructure is a key factor that will undoubtedly increase effectiveness and create opportunities for the state, for the digital state and its economy,» Alexey Kornya, President, MTS.

«We see our role in building a digital state as very important; we need to combine digital and physical worlds; to provide access to all digitalization benefits to all citizens, even in the most remote parts of the country. I think that the state needs to use us as the main tool in order to accelerate this process,» Nikolai Podguzov, General Director, Russian Post.

Engaging business in finding digital solutions for public administration

«We would like to support the idea of engaging private business <...> There are two sides of the same coin. First, competition improves quality of platform solutions that the public administration system needs. Second, private business builds more focus on clients and final results etc. within the public administration system. If we look at this problem this way, we definitely need to develop competition between public and private sectors and embed platform solutions that private business has already built in the public administration system,» Alexander Shokhin, President, Russian Union of Industrialists and Entrepreneurs (RSPP).

Drawing up international agreements in digital sphere

«In order to maximize digital economy, it needs to become global. It requires data flows and aggregation of these data. It refers, first of all, to the international level of each particular economy. How can we do that? How can we convince all states that as a result they do not lose their independence? It is crucial. We need a new form of international agreements, because the existing ones were made for physical products rather than data or digital services,» Tharman Shanmugaratnam, Senior Minister, Coordinating Minister for Social Policies of the Republic of Singapore.

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