Forces of Change: Perspectives and Trends on State Information Technology 2015 Annual NAJIS Conference October 6, 2015

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1 Forces of Change: Perspectives and Trends on State Information Technology 2015 Annual NAJIS Conference October 6, 2015 Doug Robinson, Executive Director National Association of State Chief Information Officers (NASCIO)

2 About NASCIO National association representing state chief information officers and information technology executives from the states, territories and D.C. Founded in 1969 NASCIO's mission is to foster government excellence through quality business practices, information management, and technology policy.

3 Fiscal recovery and IT budgets: CIOs still seeking IT operational cost savings, consolidation, innovations Cybersecurity threats! New risks, governance is hard, funding inadequate Transition: systems-centric to technology as a service Alternative sourcing options, agile approaches Continuing IT workforce retirements, skills gap, recruiting challenges, talent management Focus on SMAC stack: social, mobile, analytics, cloud

4 View from the State CIOs Charting the Course Driving the Enterprise Imperative Balancing Legacy and Innovation

5 View from the State CIOs The Value Equation Charting the Course Driving the Enterprise Imperative Balancing Legacy and Innovation

6 Top Ten: State CIO Priorities for Security 2. Cloud Services 3. Consolidation/Optimization 4. Broadband/Wireless Connectivity 5. Budget and Cost Control 6. Human Resources/Talent Management 7. Strategic IT Planning 8. Mobile Services/Mobility/Enterprise Mobility 9. Disaster Recovery/Business Continuity 10. Customer Relationship Management Source: NASCIO State CIO Ballot, November 2014

7 B. Top Ten: Priority Technologies, Applications and Tools for Cloud Solutions; Software-as-a-Service 2. Legacy Application Modernization/Renovation 3. Mobile Workforce: technologies and solutions 4. Business Intelligence (BI) and Business Analytics (BA) 5. Disaster Recovery / Business Continuity 6. Security Enhancement Tools: continuous diagnostic & monitoring (CDM) 7. Virtualization: servers, desktop, storage, applications, data center 8. Data Management: Master Client Index / Master Data Management 9. Enterprise Resource Planning (ERP) 10. Networking (voice and data communications, unified) Source: NASCIO State CIO Ballot, November 2014

8 State CIOs: A Focus on Current IT Initiatives 1. Cybersecurity 2. IT, or System Consolidation 3. Cloud Projects 4. ERP Implementation/Replacement 5. Broadband Expansion 6. Health Care Projects 7. Data Management/Open Data 8. Eligibility/Human Services Modernization 9. Legacy System Modernization 10. Data Center/Network Outsourcing Source: NASCIO State CIO Initiatives, October 2014

9 State Governments at Risk: Time to move forward Maturing role of the CISO Budget-strategy disconnect Cyber complexity challenge Talent crisis : Source

10 Budget-Strategy Disconnect While budgets are seeing some increases, lack of funding is the top challenge

11 Cyber complexity challenge Sophistication and sheer range of cyber threats continue to evolve Regulatory complexity is growing Complex and mostly federated state government environment poses governing challenges CISOs and business leaders are not on the same page regarding the states abilities to protect against an attack Deloitte-NASCIO Cybersecurity Study

12 State CIOs and Cybersecurity Source: The Value Equation, 2015 State CIO Survey

13 Coming Soon State Cyber Resources

14 The Forces of Change

15 Charting the Course: Business Models and Sourcing are Changing What business models and sourcing strategies does your state CIO organization currently use? Owns and operates all state IT assets and operations % 37% 29% Owns and operates multiple data centers 53% 58% 65% Owns and operates a consolidated data center 64% 65% 57% Outsources some of its IT infrastructure operations 57% 46% 51% Outsources some of its IT application and services 79% 81% 69% Uses a managed services model for some or all IT operations Uses an IT shared services model for some or all IT operations 55% 60% 65% 83% 70% 73% Source: Charting the Course, 2014 State CIO Survey

16 Service Delivery in the Next Three Years? Source: Charting the Course, 2014 State CIO Survey

17 Forces of Change: Why Cloud? Cost savings and efficiency Flexibility and scalability Rapid provisioning Measured service Better data security Shift from capital spend to operating spend Reduced IT staffing and administration costs This transition is disruptive to the traditional notions of state IT. It has serious implications for state budgeting, procurement, legal, business processes, project and portfolio management.

18 State of the States: Cloud Services What is your state's status regarding cloud services? The state is already highly invested in cloud services The state has some applications in the cloud and is considering others % 20% 68% 73% 83% The state is still investigating cloud services 22% 6% The state has considered cloud services but has rejected it 2% 0% Other 2% 2% Source: 2013 and 2014 State CIO Survey

19 What changes driven by technology create the most challenges to statewide policies in your state? (State CIOs) 17% A. Big Data B. Internet of Things 2% 17% 41% 4% 11% 7% C. Mobility D. Public Cloud - XaaS E. Private Cloud F. Hybrid Cloud G. Other

20 Source: The Value Equation, 2015 State CIO Survey Mobility

21 Government Data Landscape Data stored across multiple systems from multiple agencies in multiple formats Data quality issues: dirty and messy Lack of standards, consistency Data sharing is difficult format, language, access, culture, myths Security concerns and privacy issues Little insightful, usable data on customers

22 Managing Data as a Strategic Asset Source: The Value Equation, 2015 State CIO Survey

23 Major Changes in State Data Structured Semi-structured Unstructured Government 2020: Sources and Format Changing Dramatically

24 An explosion in the amount of data generated, driven in part, from web-based transactions, social media and sensors. IDC projects that the digital universe will reach 40 zettabytes (ZB) by 2020, an amount that exceeds previous forecasts by 5 ZBs, resulting in a 50-fold growth from the beginning of 2010.

25 Source: Charting the Course, 2014 State CIO Survey

26 State governments are turning to unmanned aerial systems (UAS) for a variety of applications. The increasing use of UAS means big data sensors are airborne, versatile, and inexpensive. States will be generating incredible amounts of data in the form of digital video, photos, GPS coordinates, and sound. A UAS, using a standard camera to capture video and photos, can produce half a terabyte of data an hour.

27 Source: The Value Equation, 2015 State CIO Survey

28 Forces of Change: IT Workforce One quarter of respondents noted that 21-30% of their state IT employees will be eligible for retirement in the next year Source: NASCIO State IT Workforce: Facing Reality with Innovation, April 2015

29 92% of states say salary rates and pay grade structures present a challenge in attracting and retaining IT talent

30 86% of states are having difficulty recruiting new employees to fill vacant IT positions.

31 Source: NASCIO State IT Workforce: Facing Reality with Innovation, April 2015 What skills and disciplines present the greatest challenges in attracting and retaining IT employees?

32 Do you think a shortage of qualified candidates for achievetoability stateshinderingpositionsitstate strategic IT initiatives? (all) 80% A. Yes 15% 6% B. No C. Unknown

33 Looking Forward The Agile Agenda Forces of change: sourcing, public cloud, X-as-a-Service Digital government a new experience for citizens Growth in mobile services, apps, devices Organizing for success, flexible, agile Data governance, data as enterprise asset, power of analytics Risk management, enterprise IT portfolio State IT workforce: talent management, reform, innovation Emerging IT, policy and data: IoT, UAS, BWCs, LPR, Next?

34

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