todd hager vice president, macro solutions...development, modernization and enhancement source: gao...
TRANSCRIPT
Federal System Modernization10.30.2017
Todd Hager Vice President, Macro Solutions
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The Modernization Push
1 Congress.gov2 GAO – Federal Agencies’ Need to Address Aging Legacy Systems
“…should a lot of these agencies be maintaining their own data centers? For many
of them, I think the answer is no.” - Dave Powner, GAO IT Director
Action in Congress1
Connected Government
Act
MGT Act
FITARA Enhancement
Act
SECRET Act
Hack the DHS Act
Customer experience needs improving
Costs too much to maintain
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Regulations and Funding Enabling Modernization
Vulnerability to cyberattacks
Key Drivers2
GAO Outlook 2016
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GAO2 Reports on Known Trends
42 GAO – Federal Agencies’ Need to Address Aging Legacy Systems
Missing 3 and 4
average system outage4
44hrs
needed to bring back on line12.5 FTEs
of nearly 300 government websites failed mobile test 3
92%42%
22%
41%
33% security
speedaccessibility
mobile friendliness
agencies not planning to meet goals by end of fiscal 2018
77% unable to measure server use
82% savings not realized in data center optimization plan
$2.7B$
The yellow line indicates the advent of modern systems (network-connected, graphically-enabled, data-driven, etc.) and signifies the obsolescence of many critical enterprise systems
Source: http://wwww/gao.gov/assets/680/677454.pdf
Replacement in development Replacement not in development
Age of Federal Enterprise Systems
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Treasury Individual Master File
Treasury Business Master File
DoD, Strat. Auto CC
VA. PAID
VA, Benefits Delivery Network
DOJ, Sentry SSA, Title
II Systems60
50
40
30
20
10
0
31355153535656
System Age in Years
The Modernization Triangle
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Modernization Playbook
Change Management Plan
Budget Management Plan
People
Technology Budget
bringing technology and people together (Efficiency)
bringing people and funding together (Business Value)
bringing technology and budget together, roadmap for implementation (Quality)
Modernization Playbook
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security
cloud
governance
Modernization Change Management
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Design Thinking
Agile Tools and Techniques
PaaS and SaaS
Repurpose and Reuse
IT Shop Upheaval
of senior agency personnel surveyed who considered skills and experience to be primary factors for their agencies’ inability to move to the cloud1
39%
of all security incidents had human error as a contributing factor3
95%
Projects initiated using agile jumped from 50% in 2016 to 80% in 20172
Agile Use
Federal Spending on IT O&M and Development, Modernization and Enhancement
Source: GAO analysis of Office of Management and Budget’s Information Technology Dashboard I GAO-16-696T
Operations and Maintenance
Development, Modernization, and
Enhancement
$19.2B$61.2B
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Federal Spending on IT O&M and Development, Modernization and Enhancement
Source: GAO analysis of Office of Management and Budget’s Information Technology Dashboard I GAO-16-696T
77% Imbalance
Operations and Maintenance
Development, Modernization, and
Enhancement
$19.2B$61.2B
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Source: GAO analysis of agency data I GAO-16-696T
% of IT Spending on O&M From FY 10 to FY 17
$80
$60
$40
$20
020172016201520142013201220112010
Total Federal IT Spending
$80.7$75.4 $75.7 $73.2 $75.6
$80.4 $81.5 $81.6
77%68%
$55.0 $53.0 $56.1 $56.8 $58.1 $61.2 $61.7 $63.1
Spen
ding
in B
illio
ns
Total Operations and Maintenance Spending
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Source: GAO analysis of agency data
Development, Modernization, and Enhancement20172016201520142013201220112010
Total Federal IT Spending by Type (in Billions)
60
50
40
30
20
10
0
$7.3 billion decline since
2010
Operations and Maintenance
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Baseline services and spend
Cost reduction planning DME vs
O&M
CapEx to OpEx
Recognize risk
Outcome-based engagement
Modernization Budget Management“Innovation can be driven from resource-scarce environments.” - Harvard Business Review
of the $90+B IT budget on operating and maintaining legacy systems1
77% 50%of agencies lack a permanent CIO4
$7.5BFederal IT systems contain
in technical debt2
of Federal CIOs said the majority of applications in their agencies are legacy systems3
72%
1GAO2GAO3Professional Services Council 2017 survey 4GAO 5US Congress – Promoting Value Based Procurement ACT 2017
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Modernization Business ValueImproved performanceImproved customer satisfactionReduced cost of ownership
Modernization Playbook
Change Management
Plan
Budget Management Plan
People
Technology Budget
Modernization Checklist
Get familiar with Management Act
Use Modernization Triangle to build case
Convert to Agile
Keep focus on efficiency and ROI
Align staff to new realities
Seek advice on roadmap
Incorporate PaaS or SaaS
Bake in security (DevSecOps)
Identify savings through consolidation, simplification and standardization
Baseline performance and track actuals to efficiency and ROI targets
F o r t u n e f a v o r s t h e b r a v e
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Give us a call at202.618.8144
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Thank youFor listening today
Todd Hager Vice President, Macro Solutions
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