Digitalization of Public Sector: How to LeapFrog with ICT - global best practice

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Keynote Address: Changing Public Sector through ICT Innovation

Christian Wernberg-Tougaard,

Director, Government, Education & Health

EMEA


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Some Key Trends Impacting Public Sector

Paradigm shift Technology shift


Mobility

Everybody wants mobility and access to everything.

It is accumulative – so more and more requirements.

5.7 billion mobile subscriptions by end of 2010 – including 940 million 3G connected.

Mobile access is possible for 90% of worlds population.

Internet access (in per cent of population):

– Nordics: 95-98%

– Europe: 60%

– Africa: 9.2%


Innovation

Invented in

1809

Invented

around

? 1859


Innovation

But when you strike gold, dig.

Characteristic: Same Business Problem (Open Can) solved with a variation of the product (Can Opener).

Game-changing innovation ...

– The PC, Skype, iPhone, ICT Appliances (in-a-box solutions).

So called

”canned

solution” ...


ICT Innovation

ICT innovation takes many forms:

– User Interfaces and ease of use.

– Interconnectivity across different platforms (ex. Netflix)

– Hardware optimization and specialization

– Product specialization – functional and industry-specific

– etc etc etc

The complexity of the choices of which ICT innovations to include, is overwhelming for Governments and Agencies.

So how to choose the “right” innovations at the right time?


Prerequisites for innovation to be utilized

The World Bank: Impact of new technology (5% market penetration).

– 28 innovations in developed world -> 23 got penetration over 50%.

– 67 innovations in developing world –> 6 got penetration over 50%.

Conclusion:

– Technology innovation in developed world have higher acceptance rate

and faster uptake.

– This can be explained by the fact that core infrastructure in developed

countries exists and are available for most citizens / companies.


Prerequisites for innovation to be utilized (II)

So Governments should initially care about enabling core infrastructure services – rather than deploy advanced eServices to citizens. What is the point of a good service than no-one can access or authenticate?

– Master Data: Governments needs to know who are who and what is what. Who are you, where do you live, what is your job, how many kids do you have, what is your school record, what is your health record etc. All of this is meta-data that can be connected to the MASTER DATA (or core registration data), the data that describes individuals, companies, property etc. Denmark can do “real-time” census and organizing a general election can be done in 17 days, all due to extensive and digital master data.

– Authentication: In order to secure the rightfulness of users, citizens and companies to the services, one needs to validate identity. A unified PKI-infrastructure as a back-bone service could establish this.

– Communication: Access to internet is a key requirement in order to offer services or demand digital service usage. As companies often have better options to be “mandated” to use digital services, G2B is the obvious choice to start with. And that might provide a better competitive marked for broad-band connectivity.


Focus on Three Key Innovation Areas

ICT Consolidation

Efficiency and Effectiveness

Skills and Labor

A complex set of influences drives focus on transformation


ICT Consolidation

Governments need to be:

– Aware of the costs that can be saved on ICT consolidation.

Datacenter consolidation and Centralized Licenses Agreements for whole Government / Public Sector is a low-hanging fruit.

– Examining Cloud/Virtualization and Shared Service as future operation model

Governments are investigation how local and “Safe Harbor” cloud services can meet their privacy protection requirements.

– Collaborating around information and data sharing

Programs (like Schengen, Europol, EESSI, HccH’s iSupport System) will be more globally focused – cloud would save costs, improve deployment and reduce risks on implementation/maintenance.


Efficiency and Effectiveness


– Ready to utilize technology innovations

Innovations in ICT has slow adoption in PS. Eradicate the “Not-Invented-Here Syndrome”.

– Ensure cross-Agency collaboration

Collaboration and data sharing across agencies is good for saving costs and for citizens

– Streamlined processes

Digitalization ready laws are together with STP (Straight Through Processing) key words for Public Sector Transformation.

From “save millions” to “save billions”


Citizens and Employees


– Aware of the Citizen’s Experience

The citizen expects a comfortable journey – through health systems, through citizens services, through the legal system.

– Ready for the demographic changes

Governments face a triple challenge:

– Young people growing reluctance to join Public Sector,

– Most senior employees will retire and

– The aging population will increase the wage-gap between Public and Private Sector.

– Willing to develop new service models

This will change the operational set up of ICT. Consider data centers, cloud and XaaS


Utilizing a step-wise approach is wise.

Step 1 • Get data electronically – go from paper to digital

Step 2 • Strengthen the master data and meta-data operation.

Step 3 • Establish a national unified secure log-in – trusted PKI

Step 4

• Establish other key core infrastructures – unified “Payment Engine”, citizens “public” clearing bank account, citizens DocBox.

Step 5

• Enable automation / transparency through policy digitalizaiton execution based on trusted meta-data

Depends on existing ICT, maturity and starting point which way to go!


Recommandations

#1: How to eat an Elephant without a “Silver Knife”?

#2: Build a Business Case.

#3: You are NOT unique

#4: 80/20 Rule still apply

#5: Carefully consider Technology Innovations as an option.

#6: Technologies exists (Don’t have to be invented) and mature


#1: The “right” path steered by maturity and existing investments

It’s complicated to eat an Elephant. Where to start?

Different starting points makes every agency “individual”. So from that point of view, you are unique.

ICT investments should be respectful of existing investments (“ex ante” / sunk cost). Easier when you start from scratch / green field.

There is NO SILVER BULLET (KNIFE?) on how to eat an Elephant – but there is best practice and experience from others.

Oracle help agencies with drafting business cases and share roadmap experiences through an INSIGHT engagement.


#2: Build a business case

As investment €/$/£ budgets are tight, you need to justify

investments – and buying, implementing and running an

ICT solution is not free.

A holistic Business Case also quantify the areas with most

potential – need to balance investments with results.

Remember to do “as-is” and “to-be” evaluations, so that

KPI’s of transformation can be followed and documented.


#3: You are NOT unique.

Remember: Public Sector Agencies are NOT unique from a PROCESS point of view.

Separate “What you do?” and “How you do it?”.

PROCESSES are very similar globally, what differs are the POLICIES / RULES.

Separating PROCESSES from POLICIES also a must when addressing high-performance / efficiency and how to enable STP – Straight Through Processing.

Hence almost all requirements can be dealt with using Commercial-of-the-shelf Software and Hardware (so-called COTS).


#4: 20% Technology, 80% Organizations

Implementing change is always a challenge. Enforcing collection and benefit control requires the organization to change, the citizen to change and the ICT to change.

But the 80/20 rule do apply. – Draft the holistic area that you think you have

(impact analysis).

– 2 streams – one on change of people, one on change of ICT.

– Ensure that the cultural change is clearly understood by citizens, companies and employees – through awareness raising and ambassadors.


#5: Carefully consider new options

New technologies and approaches innovate the ICT ecosystem day-by-day.

You should NOT wait for “tomorrows” technology – harvest now.

Governments need to do an impact assessments on technology:

Privacy Protection

Big Data

Social Media

Cloud / Shared Service Deployment


#6: Technologies exist and are mature Big Data

Advanced Analytics

Endeca

Data Quality

Gov., Risk and Compliance Real-time Detection

Case Management


Transforming Government

Governments have to:

– Become more agile on their execution – no more ”we need 2-3 years to implement this supporting system”.

– Reuse their data cross agencies with an undelying enablement infrastrcuture

– Focus on building and operating core infrastructures (if there isn’t a market doing that).

– Enable efficiency and insight through use of Big Data. Become more targeted, knowledgable and segmented in policy execution

– Ensure a strong platform independence for the way that Citizens access information (multi-channels). Enable mobility for case workers.

– Improved Citizen’s experience (digital and physical journey through Public Sector).

– Involve external industry experts (other countries and ICT expertise) to navigate best practice and implementation of innovations through an advisory committee.



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Digitalization of Public Sector: How to LeapFrog with ICT - global best practice