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IT Modernization & Digital TransformationA Guide for State & Local Government Agencies
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environment. Digital transformation often involves the implementation of “modern” technologies that drive productivity and operational efficiencies. But while the two initiatives have overlapping effects, they have different goals that require different approaches.
IT modernization is typically initiated by middle managers with direct involvement in operational processes. They see how IT is used in their departments, and where legacy systems are creating bottlenecks and security and compliance concerns. As a result, IT modernization is a bottom-up approach aimed at reducing costs, increasing performance, enabling flexibility and improving operational outcomes. It may involve automating processes, moving workloads to the cloud and updating application portfolios.
Digital transformation is driven by upper management with a goal of optimizing organizational outcomes. It is a top-down approach that starts with a high-level objective and then considers how that objective might be reached. It isn’t simply a matter of automation — operational processes and even organizational directives may be overhauled to take full advantage of the latest technological advances.
For many state and local government agencies, IT modernization is a necessary first step toward digital transformation. These agencies must update their IT environment to ensure an adequate foundation for new technologies.
Introduction
Government agencies at the state and local level are under tremendous pressure to reduce costs and improve the delivery of services to constituents. However, these agencies are often saddled with legacy systems that hamper productivity and create risk. As a result, there is a growing impetus to undertake IT modernization and digital transformation initiatives.
Problem is, IT modernization can seem like an overwhelming prospect for agencies struggling to maintain a legacy environment. Due to the rapid pace of technology change, systems and applications implemented even a few years ago are already outdated. Yet few agencies have the budget or staff to undertake a wholesale overhaul of the IT environment.
Digital transformation is even more daunting given that it often involves the implementation of new, disruptive technologies. It also requires a rethinking of agency processes and a vision for new and innovative services that can improve the lives of citizens.
The right strategy can help agencies overcome these challenges and accelerate IT modernization and digital transformation. This whitepaper offers a framework for prioritizing technology upgrades and implementing solutions that have the greatest impact on the agency’s mission.
IT Modernization vs. Digital Transformation
Many organizations think IT modernization and digital transformation are the same thing. After all, modernization initiatives have the effect “transforming” the IT infrastructure into a more agile, cost-efficient
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A Framework for IT Modernization
Agencies should begin with a vision for complete IT modernization, but break down the process into a series of manageable projects. This enables agencies to make measurable progress toward the ultimate goal and take advantage of lessons learned along the way.
When breaking down the IT modernization journey, it can be useful to start with these four broad areas:
Applications: In many agencies, legacy applications create significant risk due to a lack of skills needed to support them. Software-as-a-Service alternatives should be evaluated, and
application development platforms modernized. The entire application portfolio should be “rightsized” by eliminating unused or redundant applications and cloud-based tools.
Infrastructure: Agencies should assess the IT environment to identify underutilized systems that can be consolidated. Workloads running on aging infrastructure should be moved to the cloud where
possible. Hyper-converged infrastructure and other software-defined solutions should be emphasized for workloads that must be maintained on-premises. Public and private cloud and on-premises infrastructure should be combined into a unified operational design.
Security: An agency-wide security assessment can reveal gaps, enabling IT leaders to prioritize enhancements using a risk-based approach. Security platforms and processes should be
evaluated in light of increasingly stringent privacy regulations. Security should also be considered at the outset of new IT initiatives.
End-user computing: Agencies should develop a plan for transitioning from the traditional device-centric approach to a user-centric model. Individual workers should be empowered to take
full advantage of mobile devices to enhance productivity. Self-service and automation can improve support for remote and mobile workers.
It’s important, however, to consider critical dependencies down to the data level to ensure that no loss of functionality occurs and operational processes aren’t impacted. IT operations must also evolve from the siloed model based on IT functions to a cross-functional approach that fully leverages automation.
The Central Role of the Network in IT Modernization
Network upgrades are critical to any IT modernization effort. Agencies will likely need to rearchitect their networks to support cloud-based workloads and reduce the distance between applications and users. A software-defined approach that enables centralized management will provide the agility needed to keep up with rapidly changing requirements. The network will also need to provide the scalability and interoperability needed to support growing numbers of users and devices.
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The Drivers of Digital Transformation
If IT modernization is daunting, digital transformation is disruptive. It represents a new way of thinking about how an agency uses technology to meet its operational objectives. It involves not only the implementation of new technology tools but a fundamentally new approach in the way the agency utilizes people, processes and technology.
In the private sector, digital transformation initiatives are often undertaken due to changes in customer demands or disruptions caused by the introduction of new business models in the industry. Concerned about losing competitive advantages, businesses experiment with new technologies in order to launch new products and services or move into related markets.
Although state and local governments don’t face competitive pressures, they still must innovate to keep pace with the expectations of their constituents. Digital transformation initiatives can help agencies become more agile and efficient, which allows faster delivery of services. More importantly, digital transformation enables agencies to deliver innovative new services and attract businesses through “smart” and “connected” technologies.
In fact, digital transformation in state and local government frequently dovetails with Internet of Things (IoT) and data analytics initiatives. By implementing smart devices capable of gathering information and automating systems, agencies can improve the lives of citizens in a number of ways. Examples include:
• IP-based video cameras and analytics solutions can help law enforcement respond faster, improving the safety of both officers and citizens.
• Sensors can analyze traffic patterns to optimize city planning and public transportation routes, and automatically adjust traffic signals to reduce congestion.
• Smart parking solutions can guide motorists to the optimal parking space based upon distance, cost and other criteria, reducing fuel consumption and emissions.
• Telehealth, telemedicine and telecare services can improve access to health services for elderly, disabled and rural patients.
In addition, the IoT enables agencies to save money and better manage resources. For example, smart building technologies and connected lighting can reduce energy consumption while connected water meters can monitor usage and detect leaks. Predictive maintenance solutions enable agencies to monitor vehicles and infrastructure for signs of potential failure so that repairs can be performed proactively.
Operational Efficiency Drives Tech Investments in Government
In a recent study conducted by IDG, 73 percent of state and local government agencies said that the need to improve operational efficiency was the primary driver for investments in IoT, business intelligence and data analytics solutions. These disruptive technologies enable agencies to enhance their service offerings and respond more quickly to constituents’ requests.
Most public sector agencies spend roughly 80 percent of their IT budget on operations, with only 20 percent available for innovation. IT modernization and digital transformation free up human resources and operational budget to invest in innovative services.
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Putting It All Together
Agencies should resist the temptation to dive right into new technologies and instead focus on how digital transformation can most benefit their constituents. This helps agencies to prioritize technology investments that will have the greatest impact, and enables early successes that generate momentum. It will also help overcome employees’ natural resistance to change and create a vision for how technology can improve citizens’ lives.
A cross-functional team should be formed comprising agency leadership, mid-level managers and IT specialists. Team members should be encouraged to think as boldly as possible in identifying opportunities for transformation. The initial emphasis should be on big changes, and then on drilling down toward ways to optimize costs.
The team should then establish clear objectives and an aggressive but achievable timeline for meeting them. The initiative should be viewed holistically across people, processes and technology, and not simply as a technology project. Agencies should embrace the principles of Agile software development, with monthly or even weekly milestones that enable adjustments to the project. Employees implementing the project should be allowed to make decisions, take risks, and report their failures and any lessons learned.
Any legacy systems that hold back digital transformation should be identified and upgraded quickly. Agencies should utilize the cloud as much as possible, and provide staff with the tools they need to fully leverage automation and data. Partnerships with trusted vendors enable agencies to tap expertise in network architecture and IoT technologies.
Conclusion
In order to accelerate IT modernization and digital transformation, state and local government agencies should think creatively about the application of technology to improve the lives of citizens. The vision should be as broad as possible, but the implementation effort must be broken down into manageable chunks and fine-tuned along the way. Incremental successes will prove that technology investments can enable the delivery of new services while optimizing operational efficiency.
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