Technology Will Transform Government, Says Web Entrepreneur

“Don’t compete with startups; only compete with billion-dollar companies.” So suggested Kevin Ryan, the founder and chairman of several New York City-based businesses including Gilt, Business Insider, MongoDB, and Zola.

Speaking at SIPA on February 9, Ryan—who also helped build DoubleClick as president and later as CEO—argued that startups have the opportunity to be flexible and innovative, contrasting them with large companies that may face difficulties when trying to adapt to change.

The program, entitled “Disruptive Innovation and New York City,” also featured a conversation among Ryan, Jeff S. Merritt, director of innovation in the Mayor’s Office of Technology and Innovation here in New York, and Dean Merit E. Janow.

Walking and talking throughout his startup-style presentation, Ryan discussed how governments—including those in large cities like New York—can better utilize technology to deal with public policy challenges. He also suggested how New York, which has become the East Coast’s capital for both established and startup tech companies, can better support the sector.

Ryan argued that while technology has transformed many industries included media, shopping, and entertainment, it has not yet transformed government. He offered up many examples where technology could help improve life in New York, including making sure garbage trucks are on the right routes, creating the ability to pay parking tickets by cellphone, and texting people who are on jury duty.

In Ryan’s view, procurement and bad management remain two of the biggest hindrances in allowing startups to come in and take over roles traditionally held by large companies. He argued that requiring up to a decade’s worth of financial statements makes it impossible for startups to do business with the state.

Ryan discussed how technology roll-outs are now directly affecting administrations citing the Obamacare website failures, noting, for example, that New York State currently has 53 data centers when the best number would probably be three. However, he said he remains optimistic that the approach to government and technology will change.

“The good news is, these things will happen,” he said.

Merritt agreed with the challenges outlined by Ryan, underscoring that government can be changed. But, he added, it’s critical to ask, “What is the problem I am trying to solve?” Merritt argued that with 325,000 government employees in New York City, there is a large pool of people to draw ideas from. It is critical to create the right environment for new ideas to emerge, he said.

Ryan said mayors and governors need to pay attention to the people living and going to school in their cities and states. He argued that if he were Mayor Bill de Blasio, he would invest $100 million in technology education now to make New York City a true tech powerhouse in the future.