Innovating Government Through the Cloud. Kristin D. Russell Director Deloitte Digital
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1 Innovating Government Through the Cloud Kristin D. Russell Director Deloitte Digital
2 What?
3 What is cloud?
4 Characteristics of cloud Dynamic - One of the keys to cloud computing is on-demand provisioning Massively Scalable - The service must be elastic and react immediately to your needs Multi-Tenant - Cloud computing, by its nature, delivers shared services Self-Service - As a user, you can use the service as you require, assumes metered services Flexible Pricing - You should only ever pay for the amount of service you consume IP-Based Architecture - Cloud architectures are based on virtualised, internet based technologies 3 Joint Venture
5 Types of cloud 4 Joint Venture Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Public Cloud Available to the general public or large industry group and is owned by an organisation selling cloud services Community Cloud Shared by several organizations and supports a specific community that has shared concerns Private Cloud Operated solely for an organisation or company Hybrid Cloud Combination of two of the above, they remain unique entities but are bound together by standardised technologies
6 Cloud is not new 5 Joint Venture
7 Cloud is here to stay 80% of the Top 10 are Cloud or Cloud enabled technologies 6 Joint Venture
8 Why?
9 Case Study: State of Colorado 30,000 Executive Branch employees 5.18 million Population Growth in start ups, entrepreneurship & innovation, most highly educated state Every 72 hours a new start up is launched 8 Joint Venture 1,200 Mission Critical IT systems supporting 22 Agencies yr. olds #1 migratory spot in the nation
10 Where CO was... Uncoordinated and duplicative IT purchases Complex & aging IT architecture Lack of data sharing, analytics or integrated solutions Fragmented approach to system replacement Poor asset management Additionally: More than 1200 systems, 150+ of which are critical 319 primary applications 20+ phone switches More platforms, help desks and data centers than agencies! Inability to measure IT ROI Ineffective statewide procurement Lack of sustainability for IT 9 Joint Venture
11 A situation that deserves attention Legacy System Modernization It is becoming increasingly difficult to support existing legacy systems. Not only is it costly, the skills it takes to support outdated technologies makes it difficult to attract new IT professionals % are less than 7 yrs old 2009 Legacy Systems Assessment 33% are 7 yrs old Avg. system age = 10 years 58% are more than 7 yrs old 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years 11 years 12 years 13 years 14 years 15 years 17 years 18 years 20 years 22 years 23 years 25 years 27 years 30 years 40 years 10 Joint Venture
12 Current agency landscape Today s model demonstrates that despite similar, if not the same, core customer requirements, state agencies and departments continue to build and manage isolated, disintegrated systems 11 Joint Venture
13 Absence of citizen service let alone engagement 12 Joint Venture
14 Why government hasn t done this Governments have proven ineffective at developing cloud based, customer oriented solutions that can be implemented at scale across multiple entities WHY? Government lacks business mentality and constant push for innovation Technical resources are scarce and unqualified Government lack standards and interoperability requirements Governance between states is problematic at the program level Government doesn t really understand cloud and is worried about security & bad visibility Perception that government entities are uniquely different and complex 13 Joint Venture
15 Implications of inaction Lack of innovation Little or no mobile presence in government Reactive citizen engagement No competition, so no incentive to innovate Application fatigue Agency driven vs. citizen centric solutions Costs continue to rise Increasing cost to implement & maintain legacy IT Continual need for investment Money wasted on duplicative systems Little automation of backend processes causing inefficiency, security issues and human errors 14 Joint Venture Lack of Big Data in Gov Disparate government agencies silo customer information and outreach Customer information difficult to link <-> agencies/states Duplicate creation of customer information & preferences Lack of cross-agency analytics for proactive, service oriented engagement with citizens
16 F.U.D. We can t do this because: Federal funding rules won t let us. I am unique and different. We won t really save any more money. We are the first ones to try and do this. There is no funding. The cloud isn t secure. 15 Joint Venture
17 How?
18 Tomorrow s model Income Tax Unemployment Insurance Human Service Programs Public Safety Motor Vehicle Registration Parks & Recreation Medicaid Eligibility Health Insurance Licensing & Permits Student Loans Other 17 Joint Venture Tomorrow s model is predicated on the use of a common CRM PaaS solution specifically built for governments to provide holistic, comprehensive customer management services
19 The cloud first strategy Developed a Cloud First approach Determined how, when, and why the cloud would be used Determined the type of cloud used (private, public, and hybrid) X as a Service standards were established Measured IRR & market share on cloud services Established new resource/workforce model for support of cloud based services Documented cloud provider contractual language, requirements and SLAs 18 Joint Venture
20 The Star Model drives the behaviors of an organization which then translate to culture and performance. Strategy Cloud First People Structure Rewards Process 19 Joint Venture 19
21 Real Life Examples
22 WyCAN CONSORTIUM Nation s first ever Unemployment Insurance cloud service Shared IT services across states: Wyoming Colorado Arizona North Dakota Additional states are looking to join 21 Joint Venture INNOVATION
23 CO FEDERATED CLOUD Combining the Best of Breed IaaS 22 Joint Venture INNOVATION
24 GOOGLE APPS FOR GOVERNMENT Calendaring Docs 1.81M documents Hangouts Sites 311 sites created Tobaccofree.org ColoradoUnited.com Colorado.gov/Marijuana Communities & Groups 23 Joint Venture INNOVATION
25 COLORADO INFORMATION MARKETPLACE Increasing government transparency and building public trust data.colorado.gov Securely sharing data between agencies Easily accessed information Enable capability for crowd sourcing 24 Joint Venture INNOVATION
26 CDOT 25 Joint Venture INNOVATION
27 CCI 26 Joint Venture INNOVATION
28 PEAK 27 Joint Venture INNOVATION
29 COMMUNITY 28 Joint Venture INNOVATION
30 AWARDS 29 Joint Venture
31 Benefits of Cloud Build once, use many Innovation is built in. Maintenance is automatic, since upgrades are a part of the model Economies of scale Smoothing out of IT budgets Places the burden on the builder, not the buyer Proper architecture design allows for reuse among public entities Lowers risk 30 Joint Venture
32 Thank You
33 Copyright 2012 Deloitte Development LLC. All rights reserved. 32 Joint Venture
34 Bringing Capabilities to State Clients 3,500 state sector focused employees We ve added 1,000 people this FY to our consulting practice Accounts in 45 states Portfolio of $550 million annually Worked for 8 of the largest 10 cities in the last three years Served over 200 higher education clients in the past three years Collaboration with many of the country s largest not for profits 33 Joint Venture
35 Public Sector Service Areas Our capabilities Comprehensive portfolio of consulting, tax, financial advisory, and audit and enterprise risk services Deep and recognized government program knowledge through the Deloitte Center for Health Solutions, the Deloitte Center for Cyber Innovation, and Deloitte Research Innovative services, solutions and capabilities to help clients in their efforts to address emerging issues such as Cyber, Forensic/Fraud, Regulatory Reform, Transparency Human Services Offerings State Health Our Finance & Administration Offerings Integrated Eligibility Child Support Health Insurance Exchange State Health IT CXO Services Higher Education Labor Children Services Program Operations State Health Actuarial Pension Administration Transportation 34 Joint Venture
36 Deloitte in Digital Customer Solutions with salesforce.com #1 Worldwide in 2013 CRM Magic Quadrant #1 in Analyst Rankings Magic Quadrant for CRM Service Providers, Worldwide, 2013 #1 #1 #1 #1 #1 #1 Global Mgmt consultancy by revenue and strength of capability (Kennedy) CRM Magic Quadrant (Gartner) 2012 & 2013 Customer Transformation Sales, Channels, Marketing & Service (Kennedy & Gartner) Enterprise Mobility Services Leader (Forrester) Business Intelligence & Analytics (Kennedy & Gartner) Business Technology Transformation (Forrester) 500+ Salesforce.com implementations Largest # of consultants with advanced certifications 500+ practitioners globally SFDC professionals in 21 countries Competitive rates w/ robust offshore & onshore Salesforce.com capabilities 193,000 professionals; 150+ countries Leading Salesforce.com Practice BC Ministry Housing & Social Development 35 Joint Venture
37 The Cloud and State Governments Percentage of state CIOs reporting status of cloud computing Investigating the use of cloud computing, but as yet have not taken action Running an active project to move portions of our computing infrastructure to a cloud computing (incl. CO!) Undertaking a cloud computing pilot for a portion of our computing requirements 54% 21% 13% No formal plans to use cloud computing 5% Have been using cloud computing for years but under another name Other 3% 5% Source: The 2010 state CIO survey: Perspectives and trends from state government IT leaders 36 Joint Venture 36
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