government 2020 leadership in the public sector gerry mooney general manager ibm global government...

Government 2020Leadership in the Public Sector

Gerry MooneyGeneral ManagerIBM Global Government and Education22 September, 2008

Challenges: Government 2020, CEO Survey, Global Innovation Outlook

Need to improve collaboration and innovation

Innovating in focus - energy and environment

Innovating in other areas: security, healthcare, citizen access, technology…

Observations for technology leaders

Topics

Challenges

Government 2020 and the collaboration mandate*: Six significant forces demanding customized strategies

Changing demographics

Accelerating globalization

Rising environmental concerns

Evolving societal relationships

Growing threats to social stability and order

Expanding impact of technology*IBM Institute for Business Value Study

Governments will need to respond with new strategies and ways of conducting public administration

The environment in which governments operate is evolving rapidly -- in some cases producing turbulence and instability.

Six powerful forces outside the control of any single government are propelling this evolution and reshaping the world

The unique and specific effects that these drivers impart on individual societies will lead to individualized responses suited to a nation, region or locality.

Governments’ responses must change as rapidly as the drivers are moving them in order to fulfill their national objectives.

Many governments will have a clear understanding of these drivers and their effects and will align their strategies in response.

Although these strategies will be uniquely suited to each society governments should implement new ways of governing and collaborating internally and externally.

Many programs will need to be refurbished as strategies are aligned with existing realities. Integration and collaboration are critical enablers.

Economic VitalityFor AgingCitizens

Social/FinancialPrograms forPensioners

Workforce andSkills

Development

Research. Science and

Innovation

Water and Food Supplies

and Safety

CitizenshipInitiatives

Immigration Control

Focus on WellnessPrograms

ManagingUrbanization

Economic Competitiveness

and Policy

Transportationand Congestion

Management

EmergencyPreparedness and Response

Policing and Public

Security

Strategic Intelligence

Defense & security

Public technologyInfrastructureand access

Adoption of Open Standards

Direct access to Public

Information

Citizen interaction

and self service

Reduction of bureaucracy

Citizen SelfResponsibility

GovernmentOutsourcing

and out tasking

Relationships Stability

GlobalizationDemographics Environment

Technology

Outcomes andValue BasedHealthcare

Customs andBorder

Management

Primary Education

For Children

EnergySupply and

Consumption“Green Agenda”

Higher EducationTied to Economic

Strategies

High immigration with cultural diversity

Declining industrial base, job shifts, trade deficits

Leading carbon consumer

Target of global terrorism

Technology innovator and consumer

Low birth rate with emigrationFlat population & rapidly rising average ageHigh expectations of government by citizens – government budget 50% of GDP

High and rising median age (45.8 years)Rising immigration but limited experience with cultural diversity

High labor costs

Gender imbalance (1.14 males/female under age 15)

Rapid industrialization, impact on environment, urbanization

Minimal expectations of government by citizens -- government budget 18% of GDPLow median age (24.8 years)

Growing service economyMinimal expectations of government by citizens -- government budget 16% of GDP

Rising resource consumption with environmental impactsSignificant cultural diversity

Immigration and diversityModerate labor costsRising resource consumption

Minimal threat of global terrorism

The future of every society is being shaped by the unique and specific impacts of these drivers

Knowledge Creation and

Sharing

Personalized Interaction and

Services

Partnerships, Intermediaries and

Exchanges

Organization, Culture and Governance

Collaborative Government

While the drivers and strategies to address them are different for each country, there is a critical core of capability required:

For example - if you wanted the State to implement green buildings, transportation, procurement, with renewable energy, how would you do it?

THE GREEN AGENDA

Renewable Energy

Green Buildings

Green Transportation

GreenProcurement

Measuring and Tracking

THE GREEN AGENDA

Renewable Energy

Green Buildings

Green Transportation

GreenProcurement

Measuring and Tracking Knowledge Creation and

Sharing

Personalized Interaction and

Services

Partnerships, Intermediaries and

Exchanges

Organization, Culture and Governance

Collaborative Government

Need to improve collaboration and innovation

Government leaders see interoperability and collaboration as crucial to their operational success

Collaboration has emerged as a key issue and a required competency

Cross-agency collaboration or ‘joined up’ government has emerged as a key structural priority, as has the associated (fragmented) funding issues.

To make this a reality, Public Sector Leaders are improving collaboration processes and developing common output based measures to drive integration across departments.

Which of the following Government Structure Factors will have the greatest impact on your business in the next three years?

100.0%

Interoperability and Cross-agency collaboration

Fragment Funding Policies / Approaches

Collaboration with private sector

Organization exceeding requests and issues

(n=21)

Source: IBM Business Consulting Services, The Global CEO Study 2007

The need for innovation – the CEO survey…

We spoke to nearly 800 CEOs, among them 100 senior government leaders.

They told us what they saw as critical for success:

Innovate to enhance productivity

Transform structure and workflow

Collaborate and partner

Integrate business with technology

Create new business models

Actively engage constituents

Enhance existing organizational capabilities and business models to manage the anticipated scope of change

Increase depth and scope of collaboration with others (citizens, businesses, governments) to gain flexibility and drive innovation

For maximum impact it is imperative, though challenging, for public sector to more effectively integrate business and technology

15%Source: Mckinsey on IT, Number 5, Fall 2005

Ability to innovate

Ability to allocate the best talent

Ability to manage a global organization

Top 3 rated capabilities for growth

Source: The IBM Global CEO Study 2008, May 2008

CEOs/Government Leaders: Key Findings of 2008 Global CEO Study 8 out of 20 see significant change ahead

The majority view more demanding customers/constituents as an opportunity to adapt and serve them better

Two-thirds of CEOs/government leaders are implementing extensive innovations

Innovation is driving the leadership agenda

8 in 10 officials anticipate turbulent change, and plan bold moves in response

The Change Gap* Triples in Just Two Years

* Difference or ‘gap’ between expected level of change needed and past success in managing changeSource: IBM Global CEO Study 2008; n (2006) = 709, n (2008) = 1104

Change Needed

No/limited Change

Moderate Change

Substantial Change

20068%

CHANGE GAP* 22%

CHANGE GAP*

No/limited Success

Moderate Success

Successful

Past Change Success

Past ChangeSuccess

Past Change Success

Past ChangeSuccess

Past Change Success

Change NeededChange Needed

Change Needed

Change Needed Past ChangeSuccess

29%CHANGE GAP*

The capacity to change has a significant impact on overall performance

Change Needed

No/limited Change

Moderate Change

Substantial Change

No/limited Success

Moderate Success

Successful

Past Change Success

Outperformers*

19%CHANGE GAP*

Underperformers*

* Difference or ‘gap’ between expected level of change needed and past success in managing changeSource: IBM Global CEO Study 2008; n (underperformers) = 173, n (outperformers) = 164

** Performance based on industry comparisons within survey sample of revenue CAGR 2003 to 2006

DynamicIntegratedPoint

Integrated

Shared

Independent

Technology Infrastructure

Successful transformations set a strategic vision to balance and manage change in three important dimensions

Innovating in focus – Energy and Environment

Helping Government with Energy and Environmental Issues

Energy Efficient Technologies and Services

Infrastructure Efficiency Active Energy Management

Demand Management Monitoring & Verification

Green Infrastructure

Intelligent Transportation Sys Intelligent Utility Networks

Big Green Innovations

Carbon Management

Strategy Customer and Product Supply Chain Optimization

People Property Information

IBM Energy

and the

Environment

FINANCIAL

OPERATIONAL

ENVIRONMENTAL

IBM Green Initiatives for Energy & the Environment

Making Highways Safer, Less CongestedReducing Carbon Emissions…

Traffic congestion wastes 3.7 billion hours, 1.3 billion gallons of fuel…$63B annual cost in US per year

LOS ANGELES STOCKHOLM LONDON

Auto accidents - cost $230B in the US…160 Euros in Europe per year

Congestion increases dangerous carbon dioxide emissions

TRAFFIC CONGESTION CRISIS

Key success factors

Clearly Measurable Results

25% reduction in traffic entering cordon

15% reduction in CO2 emissions

$120M/yr in revenue to City of Stockholm; payback in 4 years

Congestion charges will fund transit improvements

Stockholm Congestion Tax Project (SCTP) - Results

Source: www.stockholmsforsoket.se

CHALLENGES

Each dollar of new servers cost $0.52 to power and cool today

The cost will increase 37% over the next four years - to $0.71

Green Data Centers

A Green Data Center saves up to 80% in power costs with: Virtualization BladeCenter Application-specific engines Energy management Cooling technologiesB

Reduced 80% of energy & facilities consumption

Consolidated 300 UNIX servers on 6 IBM System p5™ servers

Consolidated 3,900 servers onto 30 System z mainframes running Linux

Savings of 80% in power costs expected

85% reduction in floor space

Major savings in energy, SW, and system support costs over 5 years

SOLUTIONS

Advanced Water Management…THE BEACON INSTITUTEMonitoring the 315-mile Hudson River

Paraguay-Parana - River Basin, BrazilParaguay-Parana - River Basin, Brazil

Yangtze River, ChinaYangtze River, China

GREAT RIVERSData integration and visualization for and use

Located in the Netherlands, the Center will help IBM public sector clients worldwide to develop prediction… protection systems for coastal areas and river deltas

IBM GLOBAL CENTER OF EXCELLENCE FOR WATER MANAGEMENT

Medium Volta

ge Line

Comm node

Meter Cell relay

UNICATIO

Utility

“To get an idea of what the future electricity grid will look like, think of the Internet. Like the Internet today, the electricity network needs to be able to connect billions of devices and still operate reliably.” (John Wellinghoff, FERC Commissioner)

Digitization of “World’s Largest Machine”

Rich source of information Communications, IT

infrastructure to manage information across enterprise & with customers

Expanding Virally …

Billions of linked devices Highly complex energy flows Highly complex information flows Elevated role of consumer as

producer

The ‘Intelligent Network’ - a 21st Century Grid

What should ... the focus of our carbon reduction efforts be?

How do we … communicate our green credentials to our constituents?

How do we … engage with our employees on the green agenda?

How do we … reduce carbon in our

Buildings and offices?Production plants?Distribution centres?

How do we … measure and monitor information on carbon consistently and efficiently?

How do we … integrate carbon

management into our IT strategy?

How do we … make our end-to-end operations more carbon-friendly?

House of Carbon: Challenges for the Enterprise

Innovating in other areas

• Instant information to field:•Crime scenes

•Potential suspects

•Satellite images of the City precinct by precinct

• Data mining helps stop spikes in crime before they become trends

Innovating security and defenseNYPD REAL TIME CRIME CENTER

• First implementation in Europe of IBM’s Crime Information data model developed for NYPD

CRIME INFORMATION WAREHOUSE FOR SCOTLAND’S CHIEF POLICE OFFICERS

• New generation of passport system based on biometrics for three Russian ministries

• Advanced security

• Unified and automatic checking system

SWEDEN’S ARMED FORCES

• The 3rd contract in a row in the Nordics – 1st - Denmark… then Norway…now Sweden

• Innovation through integrated solutions

• IBM is the total supplier for implementing an SAP ERP system

RUSSIA’S BIOMETRIC PASSPORT SYSTEM

Sweden Armed Forces

PATIENT CENTRIC HEALTHCARE

Modeling Disease (Deep Computing)

Harnessing Patient data (Biomedical informatics)

Individualized Patient Care

Disease modeling with IBM’s Blue Gene supercomputer

Anticipate, manage and contain infectious diseases

Real Time Simulation of Virus Mutations

RESEARCH ON PANDEMIC VIRUSES

HEALTHCARE INFORMATION SYSTEMS (HIS)

Long term strategic planning

Implementation of the world’s most advanced healthcare information system

• On Demand Infrastructure

• Electronic Health Records

• Information-based medicine

• Co-develop innovative healthcare products/services

• Biosecurity

TRANSFORMING HEALTHCARE

AMERICAN HOSPITAL DUBAI

Innovating healthcare

MASTOR - Multilingual Automatic Speech-to-Speech Translator

Innovating technology: Speech to Speech Translator

Conversational Translation - Portable

Mandarin Chinese – English

Iraqi Arabic – English

Spanish - English

Speech Recognition

Speech Translation

Text to Speech

Healthcare

Disaster Response

Government

Travel

Integration

Cities like Albuquerque use business intelligence analysis and reporting to let citizens see their “scorecards”

Global environmental education through gaming – produced by IBM Research and 200 gaming “experts” (kids)

Most popular page on Miami Dade site lets citizens map county data as they wish - tax, zoning, police, census and other information

Innovating citizen access

Students

Teachers

Researchers

Pilot hosted on Blue Cloud computing infrastructure at

Almaden

VIP, powered by IBM Innovation Factory, provides a platform to foster collaborative innovation among major universities and research institutes.

VISTA Innovation Portal (VIP)

BlogsBlogs WikisWikis ForumsForums

ProfilesProfiles Social TaggingSocial Tagging

Information DiscoveryInformation Discovery

IBM Innovation Factory

Innovating economic development: Vietnam Ministry of Science and Technology collaboration platform

Observations and suggestions for technology leaders in government

How are we doing?

Do we have a strategy aligned with the real goals of the enterprise?

Are the organizations in the enterprise supportive?

Does our culture support transformation?

How are our constituents being involved?

Can our infrastructure support our strategy?

Do we have funding models that align with our strategy?

Is our strategy flexible and adaptable to changing political and social priorities?

Observations

Strategic central vision and leadership – often there at the top but not driven through

Integration is proving extremely hard and the reason is not (any more) technology

Some skills are rare and hard to acquire or share

Portfolio management approach to initiatives and spend – critical but not widespread

Business cases, metrics, benefits achievement and re-distribution – often immature

Culture change, workforce restructuring - hard

Strong senior executive leadership

– Establish vision, drive changes, maintain focus, and communicate success

– Lead by example with proactive involvement

– Clear accountability

Focused execution

– Strategic vision that reinforces goals in core mission areas: economic prosperity, rising standards of living, environmental wellness, a safe world

– Prioritized and well executed plans enabled by a dynamic infrastructure

– Citizen-centric, outcomes-based objectives and metrics to assess and reinforce directions

– Continuous improvement using feedback from constituents and other stakeholders

Collaborative and transparent approach

– Strong cross government program integration and data sharing

– Open communications to encourage informed and involved citizens

– New governance models that meet the collaboration challenge - to include partners, stakeholders and influencers

– Deliberate efforts to foster innovation and collaboration

Critical success factors

Suggestions

Leadership – at all levels – commit to the journey

Clarity – what is the vision? And answer “Why?”

Focus - what are the goals – budget and measure performance accordingly

Champions – find the innovators and support them with appropriate governance

Flexibility - be open to change and the “wisdom of crowds”

Obstacles – understand that the naysayers and roadblocks will show up

Celebrate – recognize progress, and communicate, communicate, communicate…

Failure – acknowledge and keep moving

Infrastructure – design and implement to support innovation

Persevere – success will come – and you’ll live to tell the story

Helpful resources

www.ibm.com/industries/education/doc/content/bin/Top_PS_Innovators_Jan07.pdf

www.ibm.com/services/us/gbs/bus/html/bcs_whatwethink.html

www.businessofgovernment.org

www.ibm.com/industries/government/ieg

Serving Constituents

Delivering Value through Integration

Addressing Societal Challenges

“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.”

Machiavelli

“I came to see, in my time at IBM, that culture isn’t just one aspect of the game – it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value”

Lou Gerstner, Jr

“Everything has changed, except our way of thinking.” Albert Einstein

“When you come to a fork in the road, take it” Yogi Berra

UK Land Registry

A Closer Look….

China Intellectual Property Office

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