government 2020 leadership in the public sector gerry mooney general manager ibm global government...
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Government 2020Leadership in the Public Sector
Gerry MooneyGeneral ManagerIBM Global Government and Education22 September, 2008
2 IBM Global Public Sector © 2008 IBM Corporation
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
4 IBM Global Public Sector © 2008 IBM Corporation
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
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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.
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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
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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
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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:
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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
Init
iati
ves
En
ab
ler
Tools
Measuring and Tracking
THE GREEN AGENDA
Renewable Energy
Green Buildings
Green Transportation
GreenProcurement
Init
iati
ves
En
ab
ler
Tools
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
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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?
52.4%
42.9%
33.3%
28.6%
23.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Interoperability and Cross-agency collaboration
Fragment Funding Policies / Approaches
Other
Collaboration with private sector
Organization exceeding requests and issues
(n=21)
Source: IBM Business Consulting Services, The Global CEO Study 2007
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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:
35
5
10
15
20
25
30
%
Eu
rop
ean
U
nio
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U.S
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ana
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Ja
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Ch
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Au
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alia
/N
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Ind
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an
La
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Eu
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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
1
2
3
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53%
22%
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
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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*
13%
22%
65%
No/limited Success
Moderate Success
Successful
Past Change Success
Past ChangeSuccess
12%
31%
57%
Past Change Success
Past ChangeSuccess
19%
20%
61%
Past Change Success
Change NeededChange Needed
Change Needed
2008
6%
11%
83%
Change Needed
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Change Needed Past ChangeSuccess
5%10%
85%
17%
17%
66%
Change Needed Past ChangeSuccess
4%
13%
83%
24%
22%
54%
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
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DynamicIntegratedPoint
Integrated
Shared
Independent
Technology Infrastructure
Bu
sin
ess
Pro
cess
es
Cu
ltu
re C
han
ge
Successful transformations set a strategic vision to balance and manage change in three important dimensions
Innovating in focus – Energy and Environment
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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
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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
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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
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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
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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
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
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
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Medium Volta
ge Line
Comm node
Comm node
Meter Cell relay
COMM
UNICATIO
NS
LINK
Utility
IBM
IBM
IBM
IBM
IBM
IBM
“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
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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
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• 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
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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
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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
Uses
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Cities like Albuquerque use business intelligence analysis and reporting to let citizens see their “scorecards”
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)
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
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
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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
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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?
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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
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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
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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
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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
End
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Serving Constituents
Delivering Value through Integration
Addressing Societal Challenges
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“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
40 IBM Global Public Sector © 2008 IBM Corporation
UK Land Registry
A Closer Look….
FEMA
China Intellectual Property Office