NLIT Conference Presentation Public Private Sector IT Trends

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NLIT Conference PresentationPublic / Private
Sector IT Trends
Stephen V. Wade President, The Kemtah Group
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IT Transformation

• Role of the CIO
• Challenges in Public Sector / Private Sector IT
• Meeting those challenges
• Case Studies Two Stories
• Summary

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Role of the CIO

• Few areas of business are more challenged than
  Information Technology
• The role of the CIO is also undergoing
  significant change
• In both the public and private sector we are
  seeing the CIO as the 3rd point in the leadership
  triangle

CEO
CIO
CFO
SourceTransforming IT Infrastructure Report -
IBM Global Technology Services
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Changing Role of the CIO
Managing the Legacy of the Past
IT Alignment With Business Requirements
Constrained Resources
CIO
Source Transforming IT Infrastructure Report -
IBM Global Technology Services
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Issues/Challenges for Public / Private Sector
CIOs
AgingWorkforce
Budget Pressure
Enterprise Data Sharing Integration
Push for Standardization/ Common Engineering
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The Aging Workforce Challenge
Retirement of Baby Boomers
GrowingSkills Gap
TalentShortage
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Difficulty of Recruiting
Difficulty of Recruiting vs. Last Year
60
50
40
31
Percentage of Respondents
20
10
9
0.0
0.0
Somewhat More Difficult
Much More Difficult
Much Easier
Somewhat Easier
About The Same
Source Computer Economics 2006
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The Knowledge Drain

• Skilled government Workforce shrinkage forced
  adoption of new technology
• 60 new jobs will require skills of 20 of the
  current workforce
• Seventh largest economy in the world (State of
  California) predicts 50 loss of State IT staff
  in 5-7 years

We anticipate that 20 to 40 of our workforce
will be eligible to retire in the next few
yearsMost of those anticipated retirements will
occur among workers with hard to replace skills
such as COBOL. - KY CIO, Mike Inman (IT a
Slam-Dunk in Kentucky State Government, Tod
NewcombeMarch 23, 2005, Government Technologys
Public CIO Magazine.)
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Budget Constraints
Growth of IT Operational Budgets 3-year Trend
IT Operational Budgets - of Revenue 3-year Trend
2.0
1.9
1.7
4.1
Percentage of Revenue
Percentage change from prior year
2.5
0.00
2004
2005
2006
2004
2005
2006
Source Computer Economics 2006
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Standards and Common Engineering

• Urgent need to implement best practices, common
  engineering, and standardization with large
  disparate environments
• Budget pressure
• Too many IT choices
• Home-grown tools
• Security

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Enterprise Data Sharing and Integration

• The need for enterprise integration and data
  sharing amongst agencies is crucial
• Budget Constraints
• Failures in case management
• IT Security
• Homeland Security
• Etc.
• Justice and Public Safety
• Health Human Services

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Solutions

• Aging Workforce
• Some shared service
• Retention training plans
• Focus on stream-lining
• Limited outsourcing
• Focus on building IT workforce
• Process documentation
• Enhanced training
• Restructuring and Cross-Training

• Budget Constraints
• Stream-lining and cost cutting measures
• Pushing out legacy transformation
• Do-it-yourself
• Tactical out-sourcing
• Restructuring
• Standardization / Common Engineering
• Push for process change
• Global vendor agreements
• Shared Service

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Data Sharing - Justice and Public Safety

• How are States Progressing on Justice Information
  Systems Integration?

25 20 15 10 5 0
Completed Engaged Planning
Initiation(includinggovernancestructure)
ImprovingAgencyApps
Planning
AnalyzingInformationExchanges
DevelopingStandards
DevelopingInfrastructure
Source National Association of State CIOs
(NASCIO)
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Data Sharing - Justice and Public Safety

• Initiatives Occurring at All Levels of Government
• Federal Government Funding
• Global XML Data Model
• New Technologies Enabling Sharing Between
  Application Systems

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Data Sharing - Health Human Services

• Federal mandate caused paradigm shift
• Programs shifted from entitlement to a service
  and self-sufficiency model
• Includes self-directed activities
• Resulted in need to integrate re-think systems,
  data, organizational charters, and business
  functions

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Data Sharing - HHS Models

• Technology Rich/Major BPR/Self-Service
• Integrated web based eligibility systems
• IVR, call center, telephony, EBT, KIOSK, etc. to
  reduce staff make programs more directly
  accessible
• Major BPR (including combining agencies)

• Technology Sufficient/Minimal BPR/Human Support
• Integration of multiple eligibility systems
• Limited Use of Technology to Reduce Workforce
• Minimal BPR

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Data Sharing Between the Traditional Government
Divides

• Example Data sharing is occurring between the
  Justice and Public Safety Agencies and the HHS
  agencies.

JuvenileCircuit Courts
Dept of Healthand Senior Services
Dept ofSocial Services
Dept of Elementaryand SecondaryEducation
Dept of Mental Health
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Case Studies

• 2 stories public private
• Their solution to the challenges
• Cutting Edge
• Big and Bold
• Risky
• Predicted significant savings and improved
  performance

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Large Mid-Western State

• Overview
• 19 state agencies
• 1700 IT staff
• 55,000 end users
• 800 critical business applications
• Dozens of data-centers
• Disparate Telecom

• Challenges
• Significant budget cuts
• Need for enterprise data sharing between
  departments and agencies
• Security issues
• IT project failures
• Need to leverage technical skills and spending
• Central policy decisions
• Common practices

Source Government Technology
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Solution / Goal
IT Consolidation
Contract Consolidation

• Renegotiated Contracts
• Leveraged across depts agencies
• Predictable Spending

• Desktop/Server Managed Services
• Data Center Consolidation

IT Consolidation Centralization
Telecom Consolidation
Organizational Consolidation

• Standard Phone Systems
• VOIP

• Agency CIOs report to DIT CIO
• No co-location

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What Happened?

• What Went Wrong?
• Underestimated employee and agency and
  legislative resistance
• Underestimated need for formal processes
• Proceeded without adequate funding model
• Centralized technical staff too quickly
• Inexperienced executive team
• Resources were cut too quickly
• Fire, aim, ready

• What Went Right?
• Control of IT Spending
• Control of Projects
• Made Service Delivery a priority
• Focused on employee morale
• Focused on financials
• Cultivated agency relationships
• Developed an IT strategic plan
• Never gave in

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Summary

• Results
• 100M in savings so far
• 34 Reduction in IT staff
• Things you need in Place
• Money
• Reporting structure for employees
• Assessment of culture, employee and agency impact
• Executive Support
• Phased approach
• Solid funding model
• Strong governance model
• Strong leadership been there, done that

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Fortune 15 Hardware Manufacturer

• Overview
• 97.1 Billion / annual revenue
• 170 Countries / 6 continents
• 1,200 locations
• 156,000 Employees
• 4,600 IT staff
• 151,400 end users
• 3,500 critical business applications
• 300 data-centers
• Disparate Telecom

• Challenges
• Significant budget cuts in order to be
  competitive
• Extensive merger and acquisition activity
• Need for enterprise data sharing between
  acquisitions, divisions, countries
• Security issues
• IT project failures
• Need to leverage technical skills and spending
• Central policy decisions
• Common engineering

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Solution / Goal
Achieve World Class IT Cost Structure by FY08
1.7
Consolidate and transform Data Center Footprint
Simplify and globally standardize end-user and
core infrastructure services
Establish disciplined business operations and
management processes
Build an information security conscious and
accountable culture
Fortune 15 IT Strategic Objectives
Showcase best-in-class implementations of
enterprise-class solutions
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What Happened

• From
• Data Center Consolidation
• 185 Data Centers
• 21,000 Servers
• Industry Standard KPI
• 20 Servers / FTE
• 50TB / FTE in storage
• 10 in Business Continuity
• Sporadic Disaster Recovery
• Deskside
• 56 Vendors
• Dozens of SOWs
• Varied Processes and Technologies
• Enterprise Data Warehouse
• 762 Datamarts
• Applications
• 5,000
• IT Sites
• 100

• To
• Data Center Consolidation
• 6 Data Centers
• 12,000 Servers
• 200 Servers / FTE
• Industry Standard KPI
• 200 TB / FTE in storage
• 70 in Business Continuity
• 100 Disaster Recovery
• Deskside
• 2 Vendors World-wide
• 1 SOW World-wide
• Global Standards / Global Technology
• Enterprise Data Warehouse
• 1 Enterprise Warehouse
• Applications
• 1,500
• IT Sites
• 29 Core Sites

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Summary

• Questions?
• Stephen V. Wade
• 703.673.8533
• swade_at_kemtah.com