Proving the Value: The ROI of Modernizing Municipal Technology

When current processes work well enough, it’s easy to stick with the status quo. This is true of human nature, and it’s true in government agencies. You get comfortable with workarounds and outdated technology, and the price of modernization doesn’t seem worthwhile.

In reality, modern municipal software can provide an ROI that dwarfs the minor inconvenience of adopting a new solution. You might be surprised at how much money you can save. You might be surprised at how adaptable your employees are.

In 2019, a GAO study revealed that the US government spends approximately $80 billion every year maintaining legacy IT systems. While it may seem easier to maintain existing systems now, modernizing them can lead to big savings in the future.

According to a 2022 Federal Employee Viewpoint Survey of 550k government employees, 80% of respondents said their coworkers adapt well to changing priorities. The smaller the government, the higher the level of adaptability. Municipalities with 100–10k employees were considered more adaptable (87%).

In this article, we will discuss how local government software can improve efficiency, save money, and boost citizen satisfaction. We’ll explore the key metrics you need to track and provide some examples of good investments.

Why Modernization Matters

Increased Efficiency

Modern tech helps government agencies streamline operations and automate manual processes. For example, automated systems can handle routine tasks like data entry, document management and transaction processing. This accelerates workflows and frees up staff to focus on more complex activities.

Most modern solutions are cloud-based, which provides access to real-time data and collaboration tools so your staff can operate anytime, anywhere – in the field or across different departments. This flexibility improves response times and service delivery to the public.

Not only that, advanced analytics provide insights that help improve operations, predict service demands, and better allocate resources. By modernizing your technology, your agency can operate more efficiently and meet the needs of the public.

Cost Savings

By automating routine tasks like data processing and customer service inquiries, agencies can reduce staffing costs (i.e. overtime pay). Automation speeds up operations and minimizes human errors, which can be costly to fix.

Cloud computing also reduces the need for expensive physical infrastructure like servers and data centers. By transitioning to cloud services, agencies can cut down on hardware costs, maintenance and energy consumption. 

Additionally, cloud solutions are easily scalable. Resources can be adjusted based on demand without significant capital investment. And since most follow a subscription pricing model, it’s easy to budget for the future.

Citizen Satisfaction

Modern technology makes government services more accessible and responsive. Online platforms and mobile applications allow citizens to engage with government agencies from the comfort of their homes, providing a convenient way to access services, submit documents and make payments without the need to visit physical offices.

Automated systems and AI-driven chatbots can provide immediate answers to common questions, reducing response and wait times.

Lastly, modern tech lets you personalize communication and services. With the help of data insights (which all good software solutions should provide), you can tailor outreach and services to meet the specific needs of the community. Combined, all of these things improve overall satisfaction and trust in public services.

Calculating ROI: Metrics to Evaluate Success

ROI vs VOI

You may be more familiar with ROI, but VOI can also be used to assess the effectiveness of an investment.

ROI measures the financial return of an investment as a percentage. It compares the gains or losses from an investment to its cost. ROI is straightforward and focuses on financial outcomes, making it a common metric for evaluating the profitability of investments.

On the other hand, VOI is more subjective and encompasses both qualitative and quantitative aspects. VOI considers the broader impact of an investment, including intangible benefits like employee satisfaction, customer happiness, brand reputation and operational improvements.

Modern software solutions can provide both financial return and intangible value on the investment.

Cost Savings

How much have operational costs decreased since modernizing your technology? This includes savings on labor due to automation, lower maintenance expenses for IT systems, less overhead from downsizing physical infrastructure (i.e. data centers), and more.

Operational Efficiency

Operational efficiency includes metrics like time saved on tasks/processes, employee productivity, throughput rate, etc. Measure the time it takes to complete tasks before and after implementing the new system. Track your employees’ KPIs and see how the new software improves their productivity and quality of work.

Citizen Satisfaction

Modernizing your tech should increase satisfaction levels, which often translates to higher public trust and engagement. To measure citizen satisfaction, you can send out customer surveys and feedback forms, assess wait times, and track net promoter score (NPS). NPS measures how likely citizens are to recommend your services to others.

Service Delivery

Improved service metrics are key indicators of your technology’s impact. Track changes in metrics like response times to public inquiries, processing times for applications or payments, and the speed of service delivery. 

Examples of Profitable Technology Investments

CAD-to-CAD

CAD-to-CAD software provides seamless communication between public safety agencies across jurisdictions during emergencies. By integrating with each agency’s CAD system, it helps agencies across county lines coordinate and improve response times.

NG911 Call Handling

NG911 call handling solutions support multimedia communication like text messages, images, and videos. It gives dispatchers a complete picture of the emergency, creates a faster and more accurate response, and makes emergency calls more accessible to those with impairments.

False Alarm Management

False alarm technology reduces the time, money, and resources wasted on false alarms – allowing law enforcement and fire departments to prioritize real emergencies.

Field Training

Field training (FTO) software standardizes training, saves officers time on time-consuming paperwork, improves training outcomes and mitigates liability. 

Community Development

Community development software helps you manage and automate tasks like zoning, planning, permitting and code enforcement. It accelerates project timelines, improves regulatory adherence and improves community satisfaction.

Asset Management

Enterprise asset management (EAM) software helps track the use and maintenance of public assets, reducing unnecessary expenses and extending asset life spans. By ensuring efficient use and timely maintenance, agencies can save on replacement costs and minimize downtime

Finance Management

Finance technology simplifies and automates budgeting, payroll, and other financial processes, reducing administrative costs and improving accuracy. Plus, with robust financial data and analytics, your team can make more strategic decisions that save money and maintain compliance.

Citizen Engagement

Citizen engagement software improves public service quality by providing residents with easy access to services, information, and feedback mechanisms. As engagement increases, so does community trust and support.

Solutions that Provide ROI and VOI

Each of the solutions above provide value and return on investment. Some companies even offer comprehensive software suites that integrate multiple solutions into one.

CentralSquare offers a Public Safety Suite that combines solutions for 911, CAD, RMS, mobile and jail. We also have a software suite for public administrators called NaviLine that includes finance, utilities, community development, and workforce management solutions.

Schedule a discovery call today to learn how our modern software solutions can give your public sector agency a significant return on investment, as well as many long-term benefits.