Online government services and the offline older generation.

Executive Summary

shaping tomorrow with you

2

Contents

Foreword 03

■by Fujitsu

■by AgeUK

Introduction 05

Executive Summary 06

1 Get the basics right: broadband access, accessible IT, support and training 10

2 A digital government is a perfectly enabled government: input and output services 10

3 An enabled government is joined up: seamless data and shared data 11

4 Put services into people’s hands: embrace new technologies 11

5 Embrace multi-channel services: citizen-centric must work for all citizens 12

3

With 99% of the population interacting with one of our systems every day, Fujitsu has amassed a considerable amount of experience in providing technology and services that simplify and enhance people’s daily lives. This report is important to me as I am convinced that a deep understanding of a changing citizen landscape, and an insight into new trends and their impact on people, will help government and their suppliers use technology to its fullest potential in the future.

As one of the country’s two largest IT suppliers to the public sector, it would be easy to think that Fujitsu is advocating a push online in this report. Instead, Fujitsu is recommending that government takes a more considered approach.

We know that increasing access to broadband for families and businesses across the UK, particularly in rural areas, is a key policy focus for the government. As one of the world’s leading technology companies, Fujitsu is excited by the potential this offers, and has already announced its intention to work in collaboration with the industry to bring superfast broadband to around 9 million homes and businesses in rural Britain. However, delivering the infrastructure is only the first step.

We are all getting older and this demographic merits attention. Older people are one of the groups who are most likely to find technological change challenging. You will read in the report that many of them embrace these changes, but as a society we have a duty to help them with this process. This report indicates a number of ways that this could be achieved. Education and training is one strand of this activity, but I would argue that we can be more proactive. The government has already accepted that receiving information from customers in a digital format will be cheaper to process, and help public finances significantly. To move directly to a “digital by default” solution runs the risk of alienating much of today’s population. Instead, there are ways to get the same end result without risking disenfranchising a small, but significant group. This could take the form of using retail channels – such as the Post Office – to capture data directly from the citizen into their systems, or alternatively using today’s technology to scan and digitise paper forms completed by citizens in modern, efficient central processing departments. Both solutions would ensure that the data that gets to the relevant government department is digital, and hence cheaper to process, but both mean that those customers who are unable to move to “digital by default” are still able to access the services that they need and require.

It makes sense for the private sector to be as involved as possible with the customers we ultimately serve. We are able to invest in initiatives and our 11,700 employees expect us to. We promote an effective Corporate Responsibility strategy throughout the UK and Ireland, and we are proud of our involvement and investments in various charities and associations. Collaboration with the voluntary sector and research reports like this one keep us grounded and close to the beating heart of people, trends, business and government.

I would like to thank ComRes through which we commissioned the research and Age UK who have offered valuable support along the way. In particular, a final word of thanks goes to all the local authority councillors, officers and the older people from around the country who participated and gave up their valuable time in this research.

Duncan Tait, Chief Executive Officer Fujitsu UK and Ireland

Foreword By Fujitsu

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We are living in a world where the pace of technological progress has and is profoundly changing the world. It’s changed the way we live, work and play. For many, having the confidence and ability to go online is an inherent part of everyday life that many of us take for granted. We need to be mindful that a significant portion of people living in later life are still missing out on the full benefits of online technology. Being digitally included has many benefits including improving the quality of later life by utilising social networks to combat loneliness and isolation, empowering individuals as consumers and enabling greater civil participation.

Our previous research has shown that digital inequalities tend to replicate and compound existing inequalities by gender, age, race, educational background, geography and disability. Age UK’s The Golden Economy – The Consumer Marketplace in an Ageing Society research report highlights that markets are failing to meet the needs of older people with digital exclusion being held up as a particular example. Whilst increasing online government service delivery poses many hidden challenges for people in later life, Age UK is pleased that the government’s e-Accessibility Action plan published last year emphasizes workstreams designed to improve the accessibility of websites and computer hardware and software. However, more can and needs to be done to promote inclusive design, accessibility and usability. Governments can play a role by demanding that the products and services they procure, particularly when sourced primarily for people in later life utilise these features.

Since 1998, Age UK has been tirelessly promoting digital inclusion in later life. We work in partnership with more than 200 local community partners, which make up our Digital Inclusion Network, and run Connect with IT, a comprehensive digital inclusion campaign involving itea and biscuits week, myfriends online week, Age UK Internet Champion of the Year competition and IT Volunteering. We have been able to help more than 200,000 people living in later take their first steps online.

Our activity on the ground has repeatedly shown that partnerships between government, industry and the community/voluntary sector are key to creating social changes and digital equality. It is to this end we are delighted to be working in partnership with Fujitsu who share our commitment to ensure digital inclusion in later life.

Tom Wright, Chief Executive Age UK

Foreword By AgeUK

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‘Manifesto for a Networked Nation’ (July 2010), a report by the UK’s digital champion Martha Lane Fox, outlined the economic and social case for getting all citizens online. On 23rd July 2010, Francis Maud, Minister for the Cabinet Office reinforced the theme: “Getting more people and public services online is essential if we’re going to cut the cost of public services while maintaining standards”.

More research has since followed and a strategic review of Directgov also authored by Martha Lane Fox, ‘Directgov 2010 and Beyond: Revolution Not Evolution’, detailed how information and communications technology (ICT) is well placed to provide higher quality and more convenient services to the public on a 24-hours-a-day, seven-days-a week basis. The report noted that if just 30% of services were provided online savings of £1.3 billion a year could be achieved. The report proposed a push towards more (exclusive, in some cases) online transactions for consumers. However, while welcomed by many, the report does acknowledge that more analysis is required to ensure no segment is alienated by such a decision.

In this context and following the subsequent Home Office communication in November 2010, ‘Digital by default proposed for government services’, Fujitsu chose to undertake key research into how a large segment of the population – the over 60s – manage certain internet-based transactions today and how this will develop into the future. It was also important that the research was counter-balanced with a local authority perspective, based on interviews with councillors and officers around the country, to understand the changing landscape of online government services.

This has also coincided with the publication by Age UK of ‘The Golden Economy – The Consumer Marketplace in an Ageing Society’. This was a review of existing research on older consumers to establish whether they could be characterised or differentiated from other consumer groups. The report found there is no such thing as an older consumer. Older people are not a homogenous market group and are as disparate and varied as the broader population. However, the research did find the markets were failing to meet the needs of older people, with digital exclusion being held up as a particular example. Essentially barriers arise due to age discrimination and stereotyping and the lack of use of inclusive design principles.

It is also worth noting that the government’s E accessibility Action plan published last year puts a lot of emphasis on work streams designed to improve the accessibility of websites and computer hardware and software. This should be helped by the publication in December 2010 of a new British Standard Code of Practice on web accessibility (BS 8878). However, government could play a more significant role as, despite the recession, central and local government still has considerable spending power. They should use this to promote inclusive design, accessibility and usability by demanding these features in the products and services they procure, particularly when they are primarily for people in later life. This is specifically allowed in the EU Public Procurement Directives.

With all of this in mind, the aim of this research report is to highlight some of the hidden challenges that will result from increasing online service delivery within government and how to solve them.

Introduction

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Internet usage has increased dramatically over the last five years among UK adults – rising from 16.5 million people in 2006 to 30.1 million people in 2010 going online daily. There can also be little doubt that the internet will continue to play an ever-increasing role in the future as the adoption of new technology races ahead at breakneck speed.

No one is more aware of this relentless drive towards an online society than people in an older age group, where 60% of people aged over 65 do not currently use the internet – rising to 80% of people over the age of 80. While they accept that modern life is going online, by their own admission, they feel in danger of being left behind or isolated. Ironically, while there may be pockets of resistance and some who drag their heels, many older people actually say they are keen to keep up with the times and get online – but feel unable to for a variety of reasons. However, the reality is that many of these perceived barriers to internet usage are not insurmountable.

Of course, at first glance, this looks like good news for central and local government organisations that must now respond to the government’s initiative to increase online service delivery, as outlined by Martha Lane Fox in her report ‘Manifesto for a Networked Nation’. And, based on the research conducted by Fujitsu and Age UK, the direction of travel within government is definitively to move online:

■ At least three quarters of local government officers and local councillors think the use of the council website will increase over the next year.

■ Councillors are overwhelmingly of the opinion that their council is encouraging more people to use the council website for information on local service.

■ 86% of councillors agree that having more people using the internet to access services saves their council money.

■ On the whole, councillors and officers alike think that local services provided through the council website are fairly accessible for different groups in their communities, including older people and the disabled.

These results also show how unaware local authorities are that over 60s in their constituencies are not advocates of their online channels, and would be unwilling to switch in the future. In fact, more than 70% of older people say that if more services were provided on the internet, they would still visit or phone their local council to receive services. So not surprisingly, a similar percentage also disagree with the notion that, ‘if more council services were provided online I would use the internet more’.

And herein lies the problem – the fundamental disconnect that currently exists between government expectations and older people’s behaviour. But what are the underlying views of older people and is there scope for change?

“Promoting digital inclusion is essential for a dynamic modern economy and can help to make government more efficient and effective.”

David CameronPrime Minister

Executive Summary

Executive Summary

The internet: “unstoppable” and “inevitable”

86%

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65%of older people say: “it would be difficult for me if local council services were only provided on the internet”.

86%of councillors agree that more people using the internet to access services saves their council money.

55%

15%

of councillors do not believe accessing services by internet is difficult.

only a small percentage of older people have used a local council website to find information.

94%of councillors say: “ my council is encouraging more people to use local council website for information on local services”.

73%of older people would still visit or phone the local council to receive services even if more services were online.

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Where there’s a will...

As mentioned previously, despite what most people might assume, a lack of will is not a huge barrier preventing the over 60s from going online. Many of those who do not use the internet say they would like to start, and those who already do would like to learn more.

However, many older people are not aware of the full range uses of the internet. For them, the speed of communications, the sheer volume of information and the diversity of material available online are simply staggering – and confusing. So, while most people are aware of websites such as Google and Facebook, many are not familiar with their local council website, and many have not heard of Directgov.

Others have a fair idea of what the internet has to offer, but believe that they lack the skills to access online content. However, this is probably more to do with a lack of familiarity with the internet and a basic inability to operate any digital technology, whether it is television remote controls, mobile phones, or personal computers. So, unless you can bridge this knowledge gap, the internet will remain frustratingly and tantalisingly unattainable, provoking many older people to become increasingly isolated and marginalised.

Another major barrier to internet use among older people is fear of the unknown. They are scared that they will break the computer, scared they will lose information or simply overwhelmed by the volume of information at their finger-tips.

This lack of confidence in using the internet is further exacerbated by their concerns about security. Even older people who use the internet on a daily basis are wary of using the internet for banking or shopping online. Through the media they hear stories of internet fraud and are worried that the same will happen to them. There is a general feeling that having spent their lives working and saving up for their retirement they don’t want to risk losing it all, so it’s simply not worth shopping and banking online.

There is also a wider social dimension to consider. Many older people like the social aspect of activities such as going shopping or meeting a friend, and they are worried that the internet is gradually eating away at the need and, by extension, the ability to interact on a face-to-face basis. In the same way, older people are particularly concerned about how the growth in internet usage will affect younger generations by denying them the opportunity to learn vital interpersonal and practical life skills. Indeed many older people say that their grandchildren spend all their time glued to their computer screens and do not go outside and play anymore.

“We will use digital technology to drive better services and lower costs... This does not mean we will abandon groups that are less likely to access the internet: we recognise that we cannot leave anyone behind. Every single government service must be available to everyone – no matter if they are online or not.”

Francis MaudeMinister for the Cabinet Office

Executive Summary

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A final, less prominent finding is that cost is a factor that limits older people from using the internet. This is especially the case given the current economic climate - with older people being one group that is likely to be hit hardest by the public sector cuts.

Taking all of this into account, encouraging older people to go online and access council services in order to meet government objectives for cost reduction and performance improvements will be a significant challenge. Especially as older people are very likely to continue accessing many services offline as long as that option remains available – which the government has committed to do. For example, the most common services that councils provide online are information about local services and application forms of various kinds. And yet older people are most likely to use council services for refuse collection, local transport and libraries. So, while they may occasionally use the council website for information such as dustbin collection times, very few older people will use it as a means of problem solving. Instead, when they have a problem, they much prefer personal contact, either by telephone or in person.

...there may be a way

Given all of the obstacles that older people believe are stopping them from going online, what are the potential solutions? How can government organisations encourage them to embrace the changes that they are so relentlessly driving towards? In short, how can government achieve the savings and increased efficiencies that more web-based services bring, without alienating non-internet users?

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1 Get the basics right: broadband access, accessible IT, support and training

Many things could be done better today to give citizens the best chance in the online world: a focus on training; technical support, advice and guidance. While these initiatives do exist and include public bodies, private and third sector players, some basic rules are still not adhered to, and these on our doorstep: analysis by Fujitsu Accessibility teams showed how, out of an analysis of 100 county council website home pages, 72 had accessibility errors, 26 listed accessibility warnings and only two had a clean bill of health.

If the government’s vision for a Big Society is one in which individual citizens are empowered in terms of being supported and enabled, having real and regular influence and being capable of creating change, then it is everyone’s responsibility and in everyone’s best interest to adhere properly to the basics:

■ Understanding and working to web accessibility guidelines so that online services can be used by anyone regardless of their age and physical characteristics – this has to be standard practice.

■ Knowing that a considered and specific environment for learning and support and training can go a long way to removing barriers.

Our research asked, ‘What stops older people using the internet?’ and over 70% cited having no access to internet in their homes. Layers of reason underlie this answer, but poor access and connectivity (often in rural areas) will play a significant role. If the will to connect exists we must press ahead with a national broadband network, remove a major barrier between the ‘haves’ and ‘have nots’ and give everyone access to fast broadband, no matter where they live or work.

2 A digital government is a perfectly enabled government: input and output services

Until citizens use online services to their full potential, government can prepare by digitising more data and automating more processes.

Managing the flow of the vast number of documents exchanged with citizens is an immensely complex and costly process for government. This critical task is normally handled by disparate units who manage the input services, receiving, sorting, scanning and storing incoming documents. Quite often they will also manage the output services, including the design, composition, and production of documents for physical and electronic distribution.

Consequently, the management of large-scale input/output services is a hidden source of future value and cost savings. The requirements for such services are usually very similar across government organisations, so they could potentially be securely shared by multiple government departments or agencies. As well as removing the duplication of resources and avoiding many of the overhead and capital expenditure costs associated with running these processes this shared approach also invariably increases productivity and improves customer service as documentation is far more easily accessible when serving the needs of citizens.

Executive Summary

74%

8% Only

Our research report says...

Our research report says...

of older people do not have access to the internet in their house

of older people might consider using internet to pay council tax

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3 An enabled government is joined up: seamless data and shared data

The aim of all technology within government must be to help deliver efficient, innovative and cost-effective public services focused on improving everyday life for the citizen. However, as part of its drive to increase online services the government has recognised that it will be hampered by existing legacy systems and contracts that are too costly or inflexible.

If the government is to achieve its aims of moving more services online then existing IT infrastructures will need to be updated. A more harmonised government vision for IT will drive better outcomes for those systems to be designed around. Fluidity of information and seamless data interaction will go some way in eliminating disparate and costly systems that fail to talk to each other. A greater emphasis on shared or joined up services that involve the integration of administration and the sharing of best practice can realise significant back-office benefits, including efficiencies between and across organisations.

4 Put services into people’s hands: embrace new technologies

Devices and infrastructures are becoming ‘smarter’ and this new wave of technology, in some shape or form, must be seriously considered by government in its delivery of public services. The Economist’s special report on smart systems (November 6th 2010) states: “The real and the digital worlds are converging, thanks to a proliferation of connected sensors and cameras, ubiquitous wireless networks, communications standards and the activities of humans themselves”, and in that context, understanding our fastest growing demographic, older people, is well worth the investment.

It used to be mainframes, workstations, PCs and laptops but today mobile technology is fast becoming common place. Given the intuitiveness of smartphones and tablets, the removal of commands, keyboards and even operating systems, it suggests that these devices could ‘leapfrog’ the technology fears of older people or apparent lack of skills, and, given the clear need of older citizens for simplified access to services, government would do well to lead the way.

Decent government applications and interfaces designed for citizens and their tablets is one thing. Yet another is to embrace mobile business processes to transport government services to the people they serve. True mobility will transform productivity for staff working in the field particularly when these processes are true silent enablers integrating data collected ‘on the move’ with departments’ back office systems.

Government departments that utilise these advances effectively will be the prime movers of today’s government (not just tomorrow’s), achieving significant benefits for themselves, including lower costs and greater operational efficiency and effectiveness, and for citizens, by providing simpler and faster access to public services anytime, anywhere.

93% of older people are unlikely to apply for pension credits online

18%Only

of older people have ever used Directgov websiite

Our research report says...

Our research report says...

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5 Embrace multi-channel services: citizen-centric must work for all citizens

Given the government’s commitment to maintain offline services it will be essential that these are delivered as efficiently as possible, so that they also contribute to the government’s overall aims for cost reduction. However, they must also retain the level of personal contact so valued by the older age groups. A well-designed approach to multi-channel services beckons. Whether services are managed face-to-face, by phone, letter, kiosk or through web channels (web services designed with a full range of devices in mind, of course!) this level of choice has come to be expected. The question is how to provide each as efficiently as possible. Some new innovations in technology have a key role to play in improving the performance and efficiency of what can be done.

■ For older persons who do use the internet but are not keen to embrace online government services, the use of low cost, interactive technologies such as Skype or some form of video link or streaming could be employed to deliver simplified and personalised services. Skype was specifically mentioned in our focus groups.

■ Customer Relationship Management (CRM) systems, with intuitive interfaces designed for government that offer an “at a glance view” of customers can reduce the time taken to deal with people and also proactively monitor and respond to their requirements.

While it is clear that government organisations, as their counterparts in many retail sectors do today, can offer customers a choice of how to engage with the services required, it is about using the right technologies for the right channels and really understanding their citizen profiles; their abilities and inclinations or fears and inhibitions. Incentives to gently steer services into one interface over another (faster responses via internet, for example) can be carefully designed when user groups are understood and accounted for in government’s designs.

Executive Summary

Methods of finding local information used by older citizensWhich of the following, if any, do you use to find out about local information? Base: All older people

Types and frequency of contact from constituents received by councillorsBased on research conducted by ComRes on behalf of Fujitsu

20406080

Local paper Libraries and local council

offices

Telephone TV or radio The local council‘s website

7861

57 50

15

100

People aged under 65 People aged over 65

Most frequent Telephone calls Telephone calls

Email In-person meetings

In-person meetings Letters in the post

Least frequent Letters in the post Email

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The overall conclusion that can be drawn from Fujitsu and Age UK’s research is that there is a large percentage of the population – a potentially vulnerable group and one that is already recognised as a low internet user group – that could be alienated by a push towards online-only channels (‘digital by default’) for government services unless there is careful consideration.

To promote digital inclusion, there must be support for people over state pension age to help them access services online. Central and local government should use the powers provided by the EU Procurement Directives to demand inclusive design is addressed in tendering for goods and services, particularly when these are primarily for people in later life. In addition, consumer protection against internet fraud needs to be strengthened in order to allay the fears that older people have about going online.

Government can be a champion of new technologies by designing services for use across multiple web-based channels. It can start by ensuring its own internal processes and data are digitised. However, government must also continue to provide alternative methods other than the internet for the delivery of public and other essential services. The good news is that there are parallel service channels or alternative ways of delivering services to citizens that would still save the public sector significant money compared to the way services are delivered today – and these must be considered, at least until such time as the digital gap is narrowed and traditional or legacy service channels can finally be ‘switched off’.

By striking the right balance between the delivery of online and offline services, government organisations will not risk disenfranchising a large sector of the population in the name of

“efficiency”. Instead they will be recognised as being champions for the rights of their citizens, some of whom, such as the over 60s, may simply be late comers to the digital (and perhaps government service) revolution.

Summary recommendations

Frequency of internet use amongst older peopleHow often, if at all, do you use the internet? Base: All older people

Local councillors’ opinions regarding access to council internet servicesDo you agree or disagree with each of the following statements? Base: All councillors

102030405060

Every day At least once a week Less often than weekly I don’t use the internet

1525

55

5

20406080

100

My council is encouraging more people to use the

council website for information on local services

More people using the internet to access services saves my

council money

Accessing services by the internet is difficult for

many people in my area

Agree Disagree Don’t Know

94 86

37

55

4 2 86 8

Ref: 3299

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