Virtual state, where are you? A literature review, framework and agenda for failed digital transformation

The users, sensors and networks of the Internet of Things generate huge amounts of data. Given the sophisticated (artificially intelligent) algorithms, computing power and software available, we would expect governments to have successfully completed their digital transformation into Jane Fountain's (2001) ‘Virtual State’. In practice, despite heavy investments, governments often fail to enact new digital technologies in an efficient, appropriate or fair way. This article provides an overview of techno-rational and socio-political failures and solutions at the macro-, meso- and micro-level to support digital transformation. The reviewed articles suggest a modest approach to digital transformation, with an emphasis on high-quality in-house IT infrastructure and expertise, but also better collaborative networks and strong leadership ensuring human oversight.