State of the States: Priorities, Trends and Issues NCSL Fall Forum December 6, 2013
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1 State of the States: Priorities, Trends and Issues NCSL Fall Forum December 6, 2013 Mitch Herckis Director of Government Affairs National Association of State Chief Information Officers
2 Today s State IT Landscape Fiscal recovery - CIOs still seeking IT operational cost savings, alternative IT sourcing strategies and collaboration State CIO Balancing Act: living with the past while seeking innovation and business transformation Cybersecurity threats! New technologies, new risks Open government gaining traction CIO transitions, IT workforce retirements, skills gap, recruiting challenges
3 5) How would you characterize your IT budget this fiscal year? (State Government Only) 18% A. Increased by 10% or more 45% 21% 8% 9% B. Flat C. Reduced by up to 10% or less D. Reduced more than 10% E. What budget?
4 View from the State CIOs Driving the Enterprise Imperative Balancing Legacy and Innovation
5 State CIO Priorities for Security 2. Consolidation/ Optimization 3. Cloud Services 4. Project & Portfolio Management 5. Strategic IT Planning 6. Budget and Cost Control 7. Mobile Services/ Mobility 8. Shared Services 9. Nationwide Public Safety Broadband Network 10. Health Care Source: NASCIO State CIO Survey, November 2013
6 CIOs seeking enterprise approaches and solutions Cybersecurity requires governance and investment Outsourcing of IT applications and the use of shared services models increasing Consolidation and cloud services growing Dissatisfied with IT procurement Grant Thornton LLP. All rights reserved.
7 2013 Survey Topics IT Project and Portfolio Management IT Procurement Sourcing Cybersecurity Identity and Access Management Disaster Recovery/Business Continuity Cross-Jurisdictional Collaboration Business Intelligence/Business Analytics Mobility Social Media Cloud Services Consolidation Grant Thornton LLP. All rights reserved.
8 Survey Highlights Issues affecting cloud adoption often do not become apparent until CIOs undertake a particular project CIOs are divided on whether states are equitably sharing risk with vendors Many CIOs no longer believe there are major barriers to adopting different types of sourcing Issues of governance and turf continue to be the biggest barrier to cross-jurisdictional collaboration In many states, the most significant social media activity last year has been to establish statewide policy on its use Grant Thornton LLP. All rights reserved.
9 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
10 What is the Status of IT Consolidation? Source: NASCIO-TechAmerica Grant Thornton LLP 2013 State CIO Survey
11 2.0% 9.0% 42.0% 47.0% Project has been cancelled Planning stage Project is ongoing Project is done Enterprise consolidation a top priority Source: NASCIO-NASTD Joint Survey, April 2013
12 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 % 15 68% 56 The state is still investigating cloud services 22% 19 The state has considered cloud services but has rejected it 2% 0 Other 2% 10 Don t know/does not apply 0% 0 Grant Thornton LLP. All rights reserved.
13 Why is the state government forecast cloudy? Cost savings and efficiency Flexibility and scalability Reduced data center issues Rapid application development Better data security Cloud can enable innovation Move from systems-centric to services-centric Shift spend from O&M to new services Support collaboration, transparency, insight
14 Cloud Services Are your state laws, regulations, orders, or policies regarding data privacy and access consistent with the growing interest in and demand for cloud solutions? (Example: state laws that restrict sensitive data from being stored outside the state's boundaries) About half of CIOs believe their current legal and regulatory environment is not consistent with the delivery of cloud solutions Grant Thornton LLP. All rights reserved.
15 Government Data and Decision Making Too much data, not enough intelligence 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
16 Business Intelligence (BI) /Business Analytics (BA) What is the current utilization and deployment of BI/BA within your state government? Although almost one-third of CIOs consider BI/BA essential today, the majority believe that states are not yet ready to derive full value from BI/BA technology. Grant Thornton LLP. All rights reserved.
17 Business Intelligence (BI) /Business Analytics (BA) Where within state government is BI/BA being used effectively with positive outcomes? Please check all that apply. Percent Human Services 61% Health Care Services 59% Finance and Administration/Procurement 52% Revenue 52% Transportation 41% K- 12 education 39% Labor/Unemployment 36% Justice-Law Enforcement, Courts, Corrections 34% Economic Development 30% Higher Education 25% Grant Thornton LLP. All rights reserved.
18 IT Project and Portfolio Management Do you use a formal IT enterprise portfolio management process to support decisions regarding planned initiatives, projects, or ongoing IT services such as application support? How effective are your state's practices for oversight of large IT projects? Grant Thornton LLP. All rights reserved.
19 IT Project and Portfolio Management How effectively do your IT portfolio management practices help drive IT investment decisions? Please rate this effectiveness on the scale below. Percent Percent Do not use portfolio management 23% Use portfolio management 77% Not at all effective 7% Somewhat ineffective 56% Effective 32% Very effective 5% Grant Thornton LLP. All rights reserved.
20 Mobility Within the state CIO s strategic agenda and IT operational plans, how would you characterize mobile devices and applications? Essential High Priority Low Priority Not a Priority Don't Know
21 Mobility How is your state managing mobility? Totally fragmented and uncoordinated 12% 10% A few coordinated government-wide projects and initiatives, but mostly fragmented efforts 46% 49% Mostly coordinated government-wide projects and initiatives, a few fragmented efforts 32% 37% All mobility projects well-coordinated government-wide 6% 0% Don t know/does not apply 4% 4% Grant Thornton LLP. All rights reserved.
22 Cybersecurity Grant Thornton LLP. All rights reserved.
23 Act and Adjust: A Call to Action for Governors for Cybersecurity National Governors Association, September 26, 2013 Establish a governance and authority structure for cybersecurity Conduct risk assessments and allocate resources accordingly Implement continuous vulnerability assessments and threat mitigation practices Ensure that the state complies with current security methodologies and business disciplines in cybersecurity Create a culture of risk awareness.
24 Trending in 2014 What to Watch Cybersecurity and risk management Addressing health care: ACA, policy, exchanges, scope and complexity More social and mobile, collaboration Digital identity management: federated architecture More IT consolidation, optimization, shared services, cloud
25 State of the States: Priorities, Trends and Issues Follow us
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