Digital Transformation: Opportunities for innovation

Ramayya KrishnanCooper Professor of Information Systems

The Heinz SchoolCarnegie Mellon University

rk2x@cmu.edu

Agenda

Facilitating innovation through Government IT initiatives The case of E-government

Citizen Portals Access to the Net and IEEE 802.11

Interoperable access to confidential data Process innovation in implementation of interoperable PKI

M-government Use to e-911 initiative to jumpstart innovation in

commercial services

Technology

ProcessStrategy

An organizing framework

Public Policy

Competition

Spurring innovation through IT acquisition

Government has the potential to spark innovation through public private partnershipsE-government as context

Many potential ways of funding innovationNSF Digital Govt Initiative, SBIR, DARPA

Defining E-Government

The use of electronic systems to perform business and service-related transactions

Improve internal government operations

Intra-governmental transactions

Government as Buyer

Government as Seller

Enhance the delivery of services to citizens

Source: Temoshak, GSA

Digital transformation

The use of digital technologies – internet technologies, information and communication technologies – to drive fundamental performance improvement throughout the extended enterprise

What is the scope of digital transformation?Customer, supplier, partners (resellers and

affiliates) and employeesDigital transformation has policy and

technological implications

Phases of E-government

Source: cdt.org

G2C e-government potential

easily accessible, especially for elderly and disabled people

Transparency

Increased efficiencytime efficient cost efficient

FirstGov.gov

Access anywhere anytime to all

The benefits of access derive only to those who have internet access and increasingly to those who have broadband access

Emergence of access over wired and wireless networks

What is the opportunity for innovation?

Providing low cost access?

Providing high speed access?

Providing mobile access?

Understanding access structure

SwitchingNode

SwitchingNode

SwitchingNode

SwitchingNode

Terminals

AccessLines

Trunks

Dial up to DSL, Cable Modem-based accessMobile access to the Net

Contentprovider

Evolution of access networks

Telephone networkDial upDSL (digital subscriber line)

Cable networkCable modem-based access

WirelessMobile wireless over cellularWireless Application Protocol

Bearer service and device independent

New information appliances

Internet Industry Structure

1. Customer (CUS)2. Local Area Transport Provider (LAT)3. Internet Access Provider (IAP)4. Wide Area Transport Provider

(WAT)5. Internet Service Provider (ISP)

Visual Model of Industry Structure

IAP IAP

LAT

ISP Backbone Provider

ISP Backbone Provider

IAP

LAT

NAP

NAP

PrivatePeering

IAP

LAT

Internet Service Economics

Users typically pay flat rate to IAP based on access port speedIAPs are not restricted to published

tariffs; prices are often negotiableIAPs pay an ISP for transit to other ISPs

and their customersISPs peer with each other at public or

private Network Access Points (NAPs) and typically do not pay settlements to each other

Broadband Penetration (2001)

France  Germany 

U.K. U.S.

All Households 24.8m 37.7m 27.7m 105.0m

Internet Households 4.5m 10.3m 8.8m 63.0m

Broadband HH 0.5m 1.0m 0.2m 13.8m

Internet Penetration 18% 27% 34% 60%

Broadband Penetration 2% 3% 1% 13%

Broadband Penetration of Internet HH

8% 9% 2% 22%

Universal access to the Net

In the US, the work of Greenstein demonstrates significant geographic patterns to Internet access related to the presence of NAP’s on the backbone network

Most urban areas have competitive provisioned access while rural areas have less than ideal conditions

Policies for universal access have to take geography into consideration

Broadband adoption

Much of the debate is focused on DSL vs. CableUser choice of ISPIntellectual property protection

Equally important is the IEEE 802.11 vs. 2.5/3G technologies

Wireless LAN

Idea: just a LAN, but without wires Not as easy since signals are of limited range Uses unlicensed frequencies, low power 2.4 GHz

IEEE 802.11 (wireless ethernet) WaveLAN 2 Mbps moving to 11 Mbps

5.2 GHzOFDM (orthogonal FDMA) modem technology

(30 Mbps) IEEE 802.11HiperLAN from Europe and HiSWAN from JapanUpto 54Mbps

Distance depends on construction (100-200ft per access point)

GPRS

SOURCE: UWC

EXISTINGUPGRADED GSM

SGSN = SERVING GPRS SUPPORT NODEGGSN = GATEWAY GPRS SUPPORT NODEPLMN = PUBLIC LAND MOBILE NETWORK

Range vs. Data Rates

Substitute or Complement?

IEEE 802.11Much higher data rates

11Mbps to 144Kbps for 3GCost per base station is $500 compared to

$50,000 per base station for 3G

But distance limited100m vs. 2km

Higher consumption of power by WLAN chipsets makes them not viable with cell phone power supplies

WLAN/GSM Integration

“Data” strategy for cellular service providers? Invest in their own WLAN networks?

Unlikely given considerable investment in 3G networks

Partner with WISP’s (wireless ISP) that sell direct to the consumer such as Boingo and Mobilstar

Partner with WLAN infrastructure provider that can provide roaming services SIM card enabled

Should the government increase the size of the ISM spectrum?

User-centric portals

Access from multiple information sources

Depending on the app, read or update semantics will be required

Problem: Scattered Clinical Data

Current Visit Info:- Symptoms- History- Findings

Past Visit Info:- Paper chart(s)- Hand written notes- History/Physical/FHx- Problem lists- etc.

RadiologySystemPharmacy

System

LabSystem

TranscriptionSystem

Billing System- Stay / Visit / Cost- Dx / Rx

Mindscape (an electronic medical record system)

Web Browser

Internet orIntranet

Webpage

Cold FusionApplication

Server

WebServer

2

3

1

45

Client Network Server

HTTPRequest

CFPage

Webpage

Databases

Web Servers

COM/CORBA

File System

Directories

E-mail

Access to multiple back-end services

Source: Allaire

The Census Bureau

Issues with sensitive information

The problem of inferential disclosureData is collected under guarantees of

confidentialityData is released under the policy of

maximizing access while protecting confidentiality

General problem of relevance to all statistical agencies in government

Privacy and security challenges

Data Privacy and securityAuthentication: Knowing

who’s on the other endConfidentiality:

Protecting data in transitData integrity: ensuring

integrity in transit and storage

Source: Adapted from GSA

What is an Electronic Signature under E-SIGN (electronic signature act of 2000)?

“…means an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.”

PIN or Password

Biometric Profile

Click through on software program’s dialog box

Typed names

Digitized image of a handwritten signature

Digital Signature or other encrypted

authentication system

Knowledge-basedAuthentication

Electronic Signature requires some degree of authentication

The Federal PKI

DOD IECA

DOD PKI

GSA ACES

NFC PKI

Federal Bridge CA Available to all Federal agencies

Available to all Military personnel and dependents

Available to all Government vendors

and contractorsAvailable to all U.S. citizens, businesses, government agencies

The Solution: The Federal The Solution: The Federal Bridge CABridge CA

The Federal Bridge CA simplifies PKI interoperability:• Common and easy way to determine “Trusted” PKI domains and assurance levels (policy mapping);• Common and, relatively, easy way to validate certificate status through cross certification;• Standard Bi-lateral Agreement between the Bridge and Agency CA.

FBCA Operational AuthorityFPKI Policy Authority

From e-government to m-government

Wireless access to government services

Mobile portals

E-911 initiatives

Total US Commercial Wireless Subscribers: 1992 to 2001

0

30

60

90

120

150

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001E

Mil

lion

s of

Sub

scri

bers Mobile Telephone

Penetration of Cellular Worlwide

Increase in Wireless 911 Calls

0

5

10

15

20

25

30

35

40

45

50

1994 1999

Million Calls per Year

CTIA’s Year 1994 Wireless 9-1-1 and Distress Calls Statistics

NENA’s 2001 Report Card to the Nation, Statistics for Year Ending December 31, 1999

18 Million

50 Million

911 Calls: Wireless Vs. Wireline, YE 1999

Wireless Calls

Wireline Calls73.5%(140 Million)

26.5%(50 Million)

NENA’s 2001 Report Card to the Nation, Statistics for Year Ending December 31, 1999

Increase in Wireless Phone Use:The Good News for 911

Safety remains a principal reason for purchase of a wireless phone

Substantial increases in wireless subscribers means more people can contact public safety while mobile

Increase in Wireless Phone Use:The Bad News for 911

Wireless E911 calls more difficult to handle than wireline calls:

Wireline: System generally can identify the precise fixed location of call.

Wireless: Limited or no location information available.

Misrouting of 911 calls.

Takes time to obtain location of caller, even where caller knows and can communicate location information.

Many callers do not know or cannot communicate location.

Greater difficulty in determining when multiple calls report same incident.

Difficulty due to lack of ANI

FCC Mandate on e-911

Five years ago, wireless carriers required to develop and deploy technology to provide location information for 911 calls - based on consensus agreement:

Phase I E911: call back number and cell site location.

Phase II E911: location by latitude and longitude.

Accuracy standards

For Handset-Based Solutions: 50 meters for 67 percent of calls150 meters for 95 percent of calls

For Network-Based Solutions: 100 meters for 67 percent of calls300 meters for 95 percent of calls

Implications of policy

Location information, privacy and SMS spam In the US, location and telephone number may be

used in the event of an emergency

Service providers would like to leverage investment in location technology for commercial servicesSemantic web projects

Knowledge of location can also be used for location-based spamming of ads

However, policy is evolving on these issues

Summary

Government IT efforts across the whole spectrum of definition, acquisition and deployment can be an engine for innovation

Managing the process of acquisition is a critical success factor