23:57 19/2/25 Assignment 2 Copy

Assignment 2 - Individual Report

2023-HS1-INF10024-Business Digitalization

Topic - Should Services Australia (Centrelink) abandon the

physical branch model and transition all its services online,
making use private-sector digital service providers?

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Executive summary

The purpose of this report was to find oud out whether Services Australia (Centrelink) should
abandon the physical branch model and transition all its services online, making use private-sector
digital service providers. This was answered in the report with the use of three types of analysis, PEST
analysis, SWOT analysis and Porters Five Forces analysis. Based on the findings from the three analysis
it was concluded that Centrelink Should not completely abandon its physical branch model and
instead keep its current model of both a physical branch and online platform, as said before this was
concluded after using PEST, SWOT and Porters Five Forces, after which, each analysis showed that
centrelink should not completely abandon its physical branch model.

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Table of Contents
Executive summary ..................................................................................................................................................... 2
PEST Analysis............................................................................................................................................................... 4
SWOT Analysis ............................................................................................................................................................ 5
Porters Five Forces Analysis ....................................................................................................................................... 6
Recommendations ...................................................................................................................................................... 7
References................................................................................................................................................................... 8

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PEST Analysis

Political Economic
List of Political trends Impact List of Economic trends Impact
Government Policies and rules High The availability of funding and High
governing online service provision and resources for digital
digital transformation transformation.
Political pressure to use digital services medium The potential cost savings of Medium
to give citizens better access and moving services online.
convenience the effects of the digital divide on High
funding and support for digital initiatives Low online service accessibility
in light of shifting political priorities digital infrastructure's Medium
Government initiatives to increase High accessibility and affordability
cybersecurity and data privacy Economic downturns or other Low
measures. changes in the economy could
The potential impact of international Medium have an impact on how easily
relations and geopolitical factors on resources or funding are available
digital infrastructure and online services. for digital initiatives
Social Technological
List of Social Trends Impact List of Technological trends Impact
The shifting preferences and behaviors High the development and accessibility High
of consumers toward digital services of digital technologies like
The level of digital literacy among Medium machine learning and artificial
Centrelink's clients. intelligence
The impact of changing demographics High the state of the internet's High
on the demand for online services infrastructure and its accessibility
the potential effects of the digital divide
High The potential for technology High
on social inequality disruptions and obsolescence.
The impact of social trends and changes Medium how new technologies are Medium
in consumer behavior on online services. affecting the demand for online
services
Notes – the potential for data breaches, High
Political - (Australian Government [Australian cybersecurity risks, and other
Government], 2021) technologically related dangers
Technological - (Common Cyber Threats | Cyber.gov.au, n.d.)

Based on the PEST analysis, Centrelink should maintain its hybrid model of a physical branch and
online platform.

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SWOT Analysis
Strengths Weaknesses
•Legislative requirements for in-person
• Strong brand recognition and reputation. transactions.
• established online platform, MyGov, with a •the digital divide among customers who are
sizable user base. uneasy or untrained in using online platforms.
• extensive experience handling online •worries about data security and privacy.
transactions. • the limited accessibility of digital infrastructure in
• investment in digital services that offer some regions.
convenience and accessibility. •and the lack of assistance for customers who need
• skilled workforce with expertise in digital help with digital transactions.
technologies.
SWOT
Opportunities Threats

•Customer preferences for digital and contactless •Data breaches and potential cyber security threats.
interactions are evolving. • Fast-changing technology and changing consumer
•Potential cost reductions and improved effectiveness. expectations.
•enhanced customer convenience and accessibility. • rivalry with other governmental entities or suppliers
•increased responsiveness, accountability, and in the private sector.
openness. • Customers' resistance to change.
•Possibility of integrating with other government • Regulations and laws that restrict the capacity to
services to give users a more simplified experience. provide internet services.

Based on the SWOT analysis, it is concluded that centrelink should maintain its hybrid model of a
physical branch and online platform.

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Porters Five Forces Analysis

Supplier Power - medium

Threat of Substitute - Medium -Services Australia (Centrelink)
needs to maintain good
• Services Australia (Centrelink) relationships with suppliers and
must continually innovate and effectively manage their bargaining
improve its services to stay ahead power.
of potential substitutes.
• To mitigate this threat, Services -To reduce this power, Services
Australia (Centrelink) can leverage Australia (Centrelink) can diversify
its brand equity, invest in its supplier base, invest in building
technology and innovation, and in-house IT capabilities, and
focus on providing personalized negotiate long-term contracts with
and efficient service IT suppliers

Competitive Rivalry - Medium

-In order to stay competitive,
Services Australia (Centrelink)
can benefit from its
investments in staff
development, technology,
and innovation.
-To keep up with the
competition and hold onto its
market share, Services
Buyer Power - High Australia must continue to
enhance its services
• Services Australia (Centrelink) Threat of new Entrant - Low
needs to continuously focus on To keep its leading position in the
increasing customer satisfaction. market, Services Australia
• Services Australia (Centrelink) can (Centrelink) can rely on its
invest in improving the customer extensive network of service
experience, offer personalized centers, government service
services, and engage with delivery knowledge, and brand
customers through social media equity.
and other channels to mitigate this
power

Based on the Porters Five Forces analysis, centrelink should maintain its hybrid model of both
physical branch and online platform.

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Recommendations
Centrelink should not completely abandon its physical branch model and should instead maintain its
current hybrid model of a physical branch and online model. Based on the PEST analysis, Centrelink
should maintain its hybrid model of a physical branch and online platform. Based on the SWOT analysis,
it is concluded that centrelink should maintain its hybrid model of a physical branch and online
platform. Based on the Porters Five Forces analysis, centrelink should maintain its hybrid model of both
physical branch and online platform.

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References
Australian Government [Australian Government]. (2021). Digital Government Strategy. Accelerating

the Digital Future of Our Australian Public Service.

https://www.dta.gov.au/sites/default/files/2021-

12/Digital%20Government%20Strategy_web-ready_FA.pdf

Common cyber threats | Cyber.gov.au. (n.d.). https://www.cyber.gov.au/acsc/individuals-and-

families/threats

myGov Home. (n.d.). myGov. https://my.gov.au/

Organisational structure - Services Australia. (n.d.).

https://www.servicesaustralia.gov.au/organisational-structure?context=1

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