Young people that look for help online.
Young people that seek help from community institutions.
Digital Technology Opportunities in the Social Sector
In the aftermath of COVID-19 social purpose organisations have an ever-growing role in
supporting the community. But now that they are needed more, they must work with
less.
As sponsors feel the pinch of record-high debt, the social sector faces an uncertain
future. A recent study in Australia suggests that one in seven charities are at risk of
becoming insolvent due to the pandemic, putting their beneficiaries and 170,000
employees at risk1.
This economic uncertainty is likely to continue for years and it intensifies
the pressure to attract new and younger supporters.
These Millennial and Generation Z stakeholders do not believe or belong in the same ways
as older generations. The majority of young people in Australia have no religious
identity and their experiences are often mediated by what they learn on the
internet2.
Hyper-aware and socially conscious, they are eager to make the
world better – but they also seek organisations that can build relationships
online.
Increasingly, young people are turning to the internet for advice and support. While
friends and family remain common sources of help, young people are five times more
likely to seek answers on the internet than through brick-and-mortar community
institutions3.
But a simple website is not enough for these ‘digital natives’.
Young people that look for help online.
Young people that seek help from community institutions.
Young people are far more likely to engage with organisations that provide
personalised
and connected experiences – their expectations shaped by the likes of Amazon, Netflix
and Uber. Eight in ten would like the ability to seamlessly switch between channels;
seven in ten demand communication in real-time; six in ten expect to find what they want
in three clicks or less4.
Digital technology is becoming essential for social sector organisations to stay
relevant.
In the face of a challenging economic environment and evolving stakeholder expectations,
social sector organisations must:
Over the last years, the threat of disruption has accelerated digitisation in large
companies. However, the capital needed to acquire modern technology has held back its
adoption in the social sector - until recently.
The cloud and open-source revolutions are allowing unprecedented access to digital
capability. In 2019, GitHub, the global leader in open source software hosting, had more
than 2.5 million
open source contributors - more than a five-fold increase since 20145.
Standing on the shoulders of giants, the social sector has an opportunity to
repurpose proven and cost-effective solutions to serve the community.
The applications of digital technology include:
Digital Technology Opportunities in the Social Sector
Technology change begins with people. In addition to getting sponsors onboard, social sector organisations who are embarking on a digital program should build a foundation of skills and ways of working that are fit for the digital age, including partnerships. Examples of open-source frameworks that may be of value are:
With a core team in place, the priority is to reimagine the value proposition for customers. A common thread running through organisations that provide world-class experiences is their use of behavioural data to deeply understand the needs of stakeholders. Best practices include:
Building the platform to deliver, scale and measure interventions is a significant component of digital transformation. A platform should also provide a foundation of data and technology to test ideas cheaply and quickly. The platform workstream of a digital program should include the following initiatives:
Social sector organisations should consider investing in digital technology, with a focus on developing modern skills and ways of working; reimagining their customer experiences; and building a foundation of data and technology. These capabilities will enable them to scale their impact and protect revenue streams in a challenging economic environment. In the long-term, digital capability is essential for the social sector to meet the expectations of younger generations.
At Cognis, we are passionate about protecting the future of community-oriented organisations by enabling them to effectively engage with stakeholders in the digital economy.
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