State CIOs, Emerging Trends and the Forces of Change

Transcription

1 State CIOs, Emerging Trends and the Forces of Change xchange SLED Conference May 25, 2016 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. 2

3 States fiscally stable; budgets to grow slowly at roughly 4% in CIOs still seeking IT operational cost savings, driving consolidation Cybersecurity risks! New threats, organizing for success, funding not commensurate with risk, talent crisis Ongoing Transition: Changing the owner-operator business model - systems-centric to technology as a service. Continuing IT workforce retirements, skills gap, recruiting challenges, talent management Investments in cloud services, mobile, data analytics Alternative sourcing options, IT procurement challenges, agile approaches State CIO transitions: 24 in 2015; 14 elections in

4 State Fiscal Overview Fiscal 2016 marks the 6 th consecutive annual increase in general fund spending and revenues Budget environment for most states indicates continued stability and modest growth States vary in their fiscal health Some states are facing difficult fiscal challenges, notably energy states Fiscal improvements over the last several years have not yet returned many states to pre-recession spending and revenue levels Source: NASBO, May 2016 Fly-In Briefing

5 Slow Budget Growth Continues 12 General Fund Expenditure Growth (%) % *Average *38-year historical average annual rate of growth is 5.5 percent Source: NASBO Fall 2015 Fiscal Survey of States Fiscal 2016 numbers are enacted

6 Fiscal 2016 Spending Projected to Increase by 4.1% General Fund Spending: FY 2008 FY 2016 $800 $789* $790 $750 $726 $759 * $700 $687 $695 (in billions) $650 $661 $623 $645 $667 $600 $550 $500 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Source: NASBO Fall 2015 Fiscal Survey of States; Fiscal 2016 figure is based on enacted budgets. *Aggregate spending levels would need to total $789 billion in fiscal 2015 to be equivalent with real 2008 spending levels.

7 Total State Expenditures by Function Estimated Fiscal Medicaid 27.4% Elementary & Secondary Education 19.3% Higher Education 10.3% Transportation 7.7% Public Assistance 1.3% Corrections 3.1% Source: NASBO State Expenditure Report All Other 30.9%

8 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

9 B. Top Ten: Priority Technologies, Applications and Tools for Security Enhancement Tools: continuous diagnostic monitoring (CDM), digital forensics 2. Cloud Solutions: software as a service 3. Legacy Application Modernization/Renovation 4. Data Management: master client index/master data management, information exchanges 5. Business Intelligence (BI), Business Analytics (BA): applications, big data 6. Identity and Access Management: technologies and solutions 7. Mobile Workforce: technologies and solutions 8. Virtualization: servers, desktop, storage, applications, data center 9. Networking: voice and data communications, unified 10. Document/Content/Records/ Management Source: NASCIO State CIO Ballot, November

10 11. Which technology initiative does your organization find most important? (ALL) 57% A. Cybersecurity 21% 3% 18% B. Cloud services C. Collaboration / Video D. Mobility

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

12 How are State CIOs Organized to Meet Demands? Complete decentralization Decentralization with consolidated infrastructure Decentralized with centralized planning Federated agency decision making State IT Authority full consolidation States approach IT governance with different strategies, business drivers and models. There are variations on these themes depending on state finances, political will and the ability to absorb change.

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 13

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 14

15 7. Which business model will drive your investments in the next 5 years? (state members only) 29% A. On-Premise, Centralized/Enterprise Model 17% 43% 10% B. On-Premise, Distributed/Federated Model C. Off-Premise, Centralized/Enterprise Model D. Off-Premise, Distributed/Federated Model dfgdf

16 Source: The Value Equation, 2015 State CIO Survey 16

17 Agile and Incremental Software Delivery Source: The Value Equation, 2015 State CIO Survey

18 Source: The Value Equation, 2015 State CIO Survey 18

19 NASCIO Call to Action: Recommendations for Improved State IT Procurement Remove unlimited liability clauses in state terms and conditions Introduce more flexible terms and conditions Don t require performance bonds from vendors Leverage enterprise architecture for improved IT procurement Improve the negotiations process Source: NASCIO Call to Action, Feb 25,

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

21 6. Which technology will drive your investments in the next 5 years? (state members only) 0% A. Virtualization 15% 52% 21% 6% 6% B. Software defined data center C. Cloud D. Hybrid IT E. Hyperconverged infrastructure F. Other dfgdf

22 Forces of Change: State IT Workforce Retirement Recruitment Retention Reform Source: NASCIO State IT Workforce: Facing Reality with Innovation, April

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

24 Engaging with State CIOs Be prepared Anticipate and understand states problems Know the best methods for securing and having meetings Be a partner educate the state develop trust Help build the case for IT investment Know how and when to use lobbyists If a vendor wants to be successful selling to the state, then vendors should spend more time listening and understanding the client s issues, then talk about solutions you have to help rather than products. -State CIO 24

25 Looking Forward Sourcing of public cloud, X-as-a-Service Digital government a new experience for citizens Growth in mobile services, apps, devices Cross-agency applications, service integration Data governance, data as enterprise asset, power of analytics Risk management, enterprise IT portfolio Growing crossjurisdictional services for local governments Emerging IT, policy and data: IoT, UAS, BWCs, What s next?

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