State Information Technology and the Forces of Change

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1 State Information Technology and the Forces of Change National Association of Regional Councils February 8, 2016 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. Founded in 1969 NASCIO's mission is to foster government excellence through quality business practices, information management, and technology policy.

3 Resources for States

4 Fiscal recovery and IT budgets: CIOs still seeking IT operational cost savings, consolidation, innovation Cybersecurity threats! New risks, organizing for success, funding inadequate, talent crisis Transition: systems-centric to technology as a service. Changing business models Continuing IT workforce retirements, skills gap, recruiting challenges, talent management Investments in cloud services, mobile, data analytics Alternative sourcing options, procurement challenges, agile approaches State CIO transitions: 24 in 2015

5 State CIO Transitions 2015 January 1 December 31, 2015 WA OR NV CA ID UT MT WY CO ND SD NE KS MN WI IA IL MO MI OH IN KY WV NH VT NY PA VA ME MA RI NJ CT DE MD GU AZ NM TX OK AR LA MS TN AL GA NC SC HI FL AK PR AS KEY: No Election No Change Transitions (24) VI New CIO (19)

6 Top Ten: State CIO Priorities for Security 2. Cloud Services 3. Consolidation/Optimization 4. Business Intelligence & Data Analytics 5. Legacy Modernization 6. Enterprise Vision and Roadmap for IT 7. Budget and Cost Control 8. Human Resources/Talent Management 9. Agile and Incremental Software Delivery 10. Disaster Recovery/Business Continuity Source: NASCIO State CIO Ballot, November 2015

7 State Governments at Risk! States are attractive targets data! More aggressive threats organized crime, ransomware, hacktivism Nation state attacks Critical infrastructure protection Insider threats employees, contractors Emerging IT and data on the move Need for continuous training, awareness

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

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

10 What Do We Know? Patterns of Success Enterprise Leadership and Governance Statewide Cybersecurity Framework & Controls Cybersecurity: A Team Sport Know the Risks, Assess the Risks, Measure Communicating the Risks: Training Invest: Deploy Security Technologies

11 The Forces of Change 1. Service models and sourcing options 2. Adoption of cloud services 3. Power of data analytics 4. Changing state IT workforce

12 2015 State CIO Survey Business Models, Sourcing and the CIO as Broker Agile and Incremental Software Delivery Procurement Critical Success Factors for the CIO Managing Data as a Strategic Asset Mobility Cloud Services Cybersecurity Broadband Disaster Recovery and Business Continuity Internet of Things Unmanned Aerial Systems #CIOValueEquation

13 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 Owns and operates multiple data centers Owns and operates a consolidated data center Outsources some of its IT infrastructure operations Outsources some of its IT applications and services Uses a managed services model for some or all IT operations Uses an IT shared services model for some or all IT operations 2010 Responses 2015 Responses 32% 30% 58% 53% 55% 64% 58% 58% 42% 79% 50% 55% 66% 83% Source: The Value Equation, 2015 State CIO Survey

14 Service Delivery in the Next Three Years? How does your state CIO organization plan to deliver or obtain IT services over the next three years? Percent Expand existing IT shared services model 62% Outsource business applications through a Software-as-a-Service model 55% Expand existing managed services model 53% Downsize state-owned-and-operated data center(s) 49% Expand outsourcing 43% Introduce a managed services model 26% In-source some operations that currently are outsourced 17% Introduce outsourcing as a new service model 15% Maintain the status quo 13% Introduce an IT shared services model 6% Build new data centers 2% Increase state IT staff 2% Source: The Value Equation, 2015 State CIO Survey

15 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.

16 Source: The Value Equation, 2015 State CIO Survey

17 State 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

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

19

20 Ninety percent of the world s data has been created in the last 2 years. 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.

21 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.

22 Source: The Value Equation, 2015 State CIO Survey

23 Source: The Value Equation, 2015 State CIO Survey

24 Looking Forward 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, What s next?

25

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