Emerging Trends in Information. Impacting the States
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1 Emerging Trends in Information Technology and Policies Impacting the States Doug Robinson, Executive Director National Association of State Chief Information Officers
2 About NASCIO National association representing state chief information officers and information technology executives from the states, territories and D.C. NASCIO's mission is to foster government excellence through quality business practices, information management, and technology policy. Founded in 1969 we re a legacy system
3 Fiscal recovery: budgets are better, slow revenue growth, federal spending will decline. Impact on state CIOs? CIOs seeking IT operational cost savings and alternative IT sourcing strategies Opportunities for change and innovation Still living with the past modernizing the legacy IT security and risk! Game has changed IT workforce: retirement wave, skills gap, recruiting challenges State CIO transition major churn btt l th State IT Landscape Today
4 States Only: Will your state IT budget grow or shrink and by how much? 9% a. Flat 47% b. Increase 25% c. Reduce by up to 10 percent 6% d. Reduce by up to 20 percent 13% e. What budget?
5 GU State CIO Transitions WA MT OR ID WY NV UT CA CO AZ NM January 2011 August 1, 2012 VT ND MN SD WI NY MI IA PA NE OH IL IN WV VA KS MO KY NC TN OK AR SC MS AL GA TX LA NH ME MA RI NJ CT DE MD DC AS HI AK New CIO (31) Acting/Interim t i CIO FL PR
6 View from the States: Priorities and Trends
7 State CIO Priorities for Consolidation / Optimization: consolidating infrastructure and services, centralizing 2. Budget and Cost Control: managing budget reduction, strategies for savings 3. Governance: improving IT governance, authority, data governance, partnering, collaboration 4. Health Care: Affordable Care Act, health information and insurance exchanges, architecture, partnering, implementation, technology solutions, Medicaid systems 5. Cloud Computing: governance, service management, service catalogs, platform, infrastructure, security, privacy, data ownership, legal issues, vendor management 6. Security: risk assessment, governance, budget and resource requirements; security frameworks, data protection, training and awareness, insider threats, third party security 7. Broadband and Connectivity: strengthening statewide connectivity, public safety wireless network/interoperability, implementing BTOP grant 8. Shared Services: business models, sharing resources, services, infrastructure, independent of organizational structure, service portfolio management 9. Portal: maturing state portal, e government, single view of the customer/citizen, emphasis on citizen interactive self service, mobile apps, accessibility 10. Mobile Services/Mobility: devices, applications, workforce, security, policy issues, support, ownership, communications, wireless infrastructure Source: NASCIO State CIO Survey, October 2011
8 State CIO Priorities for 2012 IT Applications and Tools 1. Virtualization: servers, desktop, storage, applications, data center 2. Legacy application modernization/renovation 3. Cloud computing: software as a service, infrastructure, platform, storage 4. Mobile workforce technologies 5. Networking: voice and data communications, unified 6. Enterprise Resource Planning (ERP) 7. Identityand access management: digital credentials, federation, standards 8. Business Intelligence (BI) and Business Analytics (BA) applications 9. Document/Content/Records/E mail t t/r /E management: active, digital it archiving 10. Public Safety Radio Network Source: NASCIO State CIO Survey, October 2011
9 CIO Focus: Words that end in tion Standardization: IT costs driven by complexity and diversity seek commodity solutions, encourage reuse Rationalization: IT architecture blueprint; application portfolio analysis, software licenses, assess and cancel projects Collaboration: shared services, agency and multi state collaboration for sharing infrastructure, applications, code, services and data Innovation: alternate operational models; enterprise services, not systems; business process improvement
10 CIO Challenges, Concerns, Pain Points IT Governance: what works? Lack of shared enterprise vision for technology Supporting a legacy environment Recruit and retain IT staff Managing mobile devices, BYOD Inadequate funding and budget constraints Information sharing/data exchanges IT procurement modernization Impact of reduced federal funding?
11 2011 State CIO Survey Highlights Budgets continue to drive action CIO roles are changing Consolidation has broad appeal Health care cannot be ignored Mobility on the move Source: NASCIO-TechAmerica Grant Thornton LLP 2011 State CIO Survey, October 2011
12 IT Consolidation: A Key Strategy for Years To address budget issues and control operational costs Facilities: reducing data centers, equipment, operational costs Enterprise services: networks, , telecommunications, imaging, wireless Server consolidation: reducing footprint, operations, security impact, backup/recovery Applications: enterprise, similar business functions IT personnel and staffing
13 Status: Consolidation & Shared Services Targets Considering Completed 1. Telecom 98% 65% % 38% More than 3. Data centers 98% 32% 90% of CIOs 4. Security 94% 43% say 7 of the 5. Backup/disaster recovery 92% 29% top 12 key services are 6. Servers 91% 21% targets 7. Storage 90% 26% 8. Content management 78% 25% 9. Desktop support 73% 26% 10. Business applications 71% 8% 11. Staff 69% 23% 12. Imaging 69% 17% Source: NASCIO-TechAmerica Grant Thornton LLP 2011 State CIO Survey, October 2011
14 Challenges to IT Consolidation CIOs' opinions on challenges to IT consolidations ranked in order of mention by respondents Governance issues 51% Obtaining up front capital to fund consolidation 45% Establishing baseline measurements for comparison to understand how effective the consolidation was 43% Making a business case for consolidation & measuring subsequent results & savings 41% Redesigning/re engineering engineering business processes 25% Insufficient in house IT experience to manage the process 24% Reaching agreement on fee structures 22% Source: NASCIO-TechAmerica Grant Thornton LLP 2011 State CIO Survey, October 2011
15 Moving to the cloud continues slowly Change in cloud status State Status Highly invested 5% 14% Some applications 34% 35% Still investigating 54% 47% None/other 8% 4% Source: NASCIO-TechAmerica Grant Thornton LLP 2011 State CIO Survey, October 2011
16 What is the primary reason for adoption of cloud services? 0% a. Software updates 24% b. Scalability on demand 47% c. Increase business agility/quicker service delivery 2% d. Risk mitigation 2% e. Storage capacity 18% f. Reduced IT staffing and administration cost g. Not using and do not intend to use cloud 7%
17 Business objectives Governance Acquisition strategy Jurisdictional issues Security and privacy concerns Policy and legal issues Exit strategy
18 Mobility = CIO Strategic Priority Not a priority, 2% Low, 6% Essential, 27% Medium, 33% High, 31% Source: NASCIO-TechAmerica Grant Thornton LLP 2011 State CIO Survey, October 2011
19 CIOs readiness to deploy & support mobile devices & apps CIOs opinion of their states' level of engagement with citizen facing apps 35% 33% 30% 25% 20% 15% 10% 5% 0% 6% 31% Unprepareded ral Neutra Ready Source: NASCIO-TechAmerica Grant Thornton LLP 2011 State CIO Survey, October 2011
20 States Only: What is driving your organization s mobile strategy and surrounding investments in mobile solutions? 20% a. Agency heads 20% b. State CIO (or corresponding IT executive) 20% c. Consultants 20% d. Citizen demand manyloosely 20% e. Distributed across the organization; coordinated efforts
21 Enterprise direction: i strategic or ad hoc? Policy? Standards? Managing mobile devices? BYOD? Security and privacy Managing business and enduser expectation Lack of technical expertise: architecture and apps Architecture Native apps, web or both? Legal Issues? Terms of Service from apps stores? State Views: Common Themes on Mobile
22 Tracking State Trends Alternative sourcing/hosting: moving to the cloud Multi state collaboration: sharing infrastructure, solutions, applications Cybersecurity threats Legacy modernization Health care implementation Procurement reforms
23 Congressional Action and Federal Policies: Impact on the States Administrative flexibility for states: A 87 reform Program integrity, improper payments Proposed cyber security legislation Government transparency: DATA Act (HR 2146) Spectrum Act: nationwide public safety broadband network Revised policy on.gov domains FedRAMP and cloud services Pi Privacy (online, Bill of Rights, mobile)
24 Looking Ahead What to Watch in 2012 Looking Ahead Continuing pressure for operational efficiency More IT consolidation, shared services More IT consolidation, shared services, cloud adoption Outsourcing: more steering, less rowing IT implications of healthcare reform Restructuring of IT organizations Push for data harmonization Demand for performance, results Extending the enterprise: locals? Extending the enterprise: locals Public Safety Broadband Network More risk, creative solutions Massive collaboration Web 2.0
25 A Shared Agenda: Budget Director and State CIO Project State CIOs need allies to advance the shared IT agenda for better government. Our joint project involves a diagnostic survey examining the feasibility and value of several approaches. The CIOs have completed the survey. This is my shameless plea for you to participate in the project and complete the survey.
26 Connect with... nascio.org facebook.com linkedin.com youtube.com/nasciomedia twitter.com/nascio
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