Under the Digital Dome: State IT Priorities, Trends and Perspectives
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1 Under the Digital Dome: State IT Priorities, Trends and Perspectives Best Practices Exchange 2014 Conference Montgomery, Alabama November 19, 2014 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 we re a legacy system NASCIO's mission is to foster government excellence through quality business practices, information management, and technology policy.
3 Today s State IT Landscape
4 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 Project management, alternative sourcing options Continuing IT workforce retirements, skills gap, recruiting challenges Focus on SMAC stack: social, mobile, analytics, cloud
5 5. How would you characterize your IT budget this fiscal year? (State Government Only) 24% A. Increased by 10% or more 40% 16% 20% B. Flat C. Reduced by up to 10% or less D. What budget?
6 What percentage of your state IT workforce is eligible for retirement in the next year? (State Government Only) 17% A. 10% 33% 17% 8% 25% B. 20% C. 30% D. 40% E. More than 40%
7 9. How do you most often fill your skill gaps in your IT workforce? (State Government Only) 5% A. Hire using competitive salaries/benefits 60% 16% 0% 19% B. Contract out C. Train from within D. Use volunteers E. We simply can t fill the gaps
8 View from the State CIOs Charting the Course Driving the Enterprise Imperative Balancing Legacy and Innovation
9 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
10 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)
11
12 CIOs seeking enterprise approaches and solutions - governance Outsourcing and the use of shared services models increasing Cybersecurity requires governance and investment Consolidation and cloud services growing Dissatisfied with IT procurement Grant Thornton LLP. All rights reserved.
13 Planning and Oversight of Large, Critical Projects Sourcing Managing Data as a Strategic Asset Consolidation Mobility Cloud Services Public Safety Broadband Cybersecurity Drones Innovation 2014 State CIO Survey Grant Thornton LLP. All rights reserved.
14 Planning and Oversight of Large, Critical Projects Source: Charting the Course, 2014 State CIO Survey
15 Source: Charting the Course, 2014 State CIO Survey
16 NASCIO Recommendations for Improving IT Project Management Develop governance framework, enterprise policies, processes and thresholds for project initiation and approval Establish an enterprise project management office (PMO) Institute project status ratings and scorecard to monitor and assess health of major projects: transparency Require quality assurance oversight and independent verification and validation (IV&V) services for major projects Design (or source) and deliver IT project management training
17 State CIOs and IT Procurement Are CIO s satisfied? What are CIO s doing to improve IT procurement? 43% 6% 11% 40% Very dissatisfied Somewhat dissatisfied Satisfied Very satisfied Partnering and collaborating with the state procurement office Leveraging consortium procurements & enterprise agreements Changing approval limits for more expedited purchases Moving the IT procurement function to the CIO s office Source: 2013 State CIO Survey NASCIO/TechAmerica/Grant Thornton
18 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 58% 65% Owns and operates a consolidated data center 65% 57% Outsources some of its IT infrastructure operations 46% 51% Outsources some of its IT application and services 81% 69% Uses a managed services model for some or all IT operations 60% 65% Uses an IT shared services model for some or all IT operations 70% 73% Source: Charting the Course, 2014 State CIO Survey
19 Sourcing in Next Three Years? Source: Charting the Course, NASCIO State CIO Survey, September 2014
20 NASCIO Recommendations for Improving IT Procurement If permissible, remove unlimited liability clauses in state terms and conditions Recognizing the forces of change, introduce more flexible terms and conditions Don t require performance bonds from vendors Leverage enterprise architecture for improved IT procurement Implement rules for using competitive negotiations to facilitate give-and-take between buyer and seller Adopt a license rather than a acquisition approach to vendor s intellectual property (IP) and work product
21 State Governments at Risk! States are attractive targets data! More aggressive threats organized crime, unorganized crime, hacktivism Data and critical infrastructure protection Lack of broad executive support Governance and authority lacking Emerging IT - data on the move Need more training, awareness
22 State Governments at Risk: Time to move forward October 2014
23 Key Themes from the 2014 Study Maturing role of the CISO Budget-strategy disconnect Cyber complexity challenge Talent crisis Deloitte-NASCIO Cybersecurity Study
24 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
25 What is the Status of IT Consolidation? Source: Charting the Course, 2014 State CIO Survey
26 The Forces of Change: Cloud Services
27 Forces of Change: Technology as a Service Cost savings and efficiency Flexibility and scalability Rapid provisioning Measured service Better data security Cloud services as an example Move from systems-centric to services-centric Shift spend from O&M to new services Support collaboration, transparency, insight This trend is disrupting the traditional notions of state IT. It has serious implications for state budgeting, procurement, business processes, project and portfolio management.
28 Cloud Services What is your state's status regarding cloud services? The state is already highly invested in cloud services 6% 20% The state has some applications in the cloud and is considering others 68% 73% 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
29 What categories of services have you migrated or do you plan to migrate to the Cloud? (select all that apply) and collaboration 64% Storage 48% Geographic Information Systems 48% Disaster recovery 44% Program/business applications (e.g., licensing, unemployment insurance, workers' comp, etc.) 42% Office productivity software (e.g., word processing) 37% Digital archives/electronic records 31% Citizen relationship management 25% Open data 25% Enterprise Resource Planning 23% Imaging 15% Other 15% Source: 2013 State CIO Survey NASCIO/TechAmerica/Grant Thornton
30 8. In the next 1-2 years do you plan to move any of your core systems to the cloud (State Government Only) 11% A. No, can t get past security concerns 2% 11% 37% 39% B. No, can t get past the human resources implications C. No, can t get past procurement terms and conditions D. Yes, assuming the budget and ROI get approved E. Yes, no turning back now
31 Mobility
32 Source: 2014 State CIO Survey, NASCIO/TechAmerica/Grant Thornton
33 Source: 2014 State CIO Survey, NASCIO/TechAmerica/Grant Thornton
34
35 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
36 Major Changes in State Data Structured Semi-structured Unstructured Sources and Format Changing Dramatically
37 Managing Data as a Strategic Asset How would you characterize your data management function in terms of importance and maturity? We have a long way to go to develop an enterprise view of data and governance of that data as a state asset. 26.9% We have made some progress in developing an operating discipline for managing data. 53.9% We have a formal data management discipline that includes governance, roles and responsibilities, and tools. 9.6% We have a formal data management discipline that includes governance, roles and responsibilities, and tools. We are now moving toward data as an enterprise asset. 9.6% Source: Charting the Course, 2014 State CIO Survey
38 Source: Charting the Course, 2014 State CIO Survey
39 Characteristics of Big Data Volume Variability Big Data Velocity Complexity Variety
40 Status of Big Data in the States
41 State Open Data: Museum to Marketplace Source: Charting the Course, 2014 State CIO Survey
42 1. My department/agency uses open data to provide quality services for external customers (i.e. citizens, business, etc.). Government Only 13% A. We are totally there! 18% B. We are on the road and there is not a speed limit 38% C. We are on the road but the speed limit is 5 MPH 25% D. We found the road but haven t started the journey 5% E. We can t find the road, even with GPS
43 4. Which one of the following is the best possible outcome as a result of Open Data? (All choose only one) 3% A. Contribute to new mobile apps 1% 1% 28% 26% 26% 15% B. News media consumption C. Balanced scorecards D. Improved data-driven decisions E. Ultimately improve government effectiveness F. Leads to improved citizen engagement G. Improves trust among citizens
44 Enterprise Data Management Source: Charting the Course, 2014 State CIO Survey
45 Ask the Magic 8-Ball Continued cybersecurity threats, data breaches Focus on project and portfolio management discipline Data governance, managing data as an asset Evolving funding models for state IT More SMAC, Public and multitenant cloud Innovation in IT workforce strategies Progress on digital identity
46 @NASCIO Questions?
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