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eGovernment’s eGovernment’s New ImperativesNew Imperatives
Governor Jim GeringerGovernor Jim GeringerMay 29, 2002May 29, 2002
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This Presentation is about…
• Tight Budgets
• Big expectations
• State $ have decreased
• But Fed $ in high cost areas have increased
• Don’t forget local government
• Resource problems that may be only allocation problems
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eGov: Who really “gets it?”
Have we properly defined Digital Gov?• Centered mostly on transactions• eGov increases productivity, but does it
affect service results?• Value added services• Performance based budgeting• Enterprise approach• Functional integration• Investment model
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Bringing it on home
• The New Economy is about productivity and innovation
• eGov must do likewise to meet citizens expectations about access and quality
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Great Expectations
• States and locals are in difficult financial straits• Reduced revenues• Medicaid costs up 14% this year, 9% next;
employee health insurance is up another 30%• Increases expected by P-16 Education• Public assistance costs could increase with
reduced employment • Big buildup in Homeland Security
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Fiscal Outlook for the States
• Fiscal 2002 enacted budgets were reduced in thirty-nine states by approximately $15 billion— 20 states more than in FY2001
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States' Year-end Balances
$39.5
$24.5$18.3
7.84.8 3.5
$-
$10.0
$20.0
$30.0
$40.0
$50.0
Billions $39.5 $24.5 $18.3
% of Expenditures 7.8 4.8 3.5
FY 2001 FY 2002 FY 2003
-$15B
-$6.2B
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Federal Increases in Education
• Reading First $ 1.0B
• Teacher Quality $ 9.0B
• Accountability $ 0.4B
• IDEA $ 1.3B
• Title 1 $ 1.8B
TOTAL $14.5B
Source: www.whitehouse.gov, www.nochildleftbehind.gov
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BioTerrorism
• $4.3B in Budget Request
• Much of the focus of the BioTerrorism grants is on building capacity through Public Health, hospitals, labs, surveillance
• Medicaid and other health services are enhanced as a result
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Homeland Security
• $10.6B in FY02, $18.2B in FY03
• Some of the Possibles that states might consider to leverage other program benefits– SmartCards: Benefits transfer to clients– Public Safety Networks: First responders, lower
costs to local governments– Integrated data bases– Security against cyber terrorism helps all security– GIS (more than maps – Interrelationships)
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• Education
• Homeland Security
• Medicaid
• Increased federal dollars allocated for each of the above exceed the $15B reduction incurred by the states in 2002
More Obligations, Less Money?
or is it an allocation problem?
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What happens to IT Budgets?
• 50 States, 3200 counties, 19,000 municipalities
• Could IT be a ready target for % reduction?
• Is IT integral or an add-on?
• How do you calculate IT costs? Benefit?
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Challenge of ChangeHow well informed are government executives on IT issues?
CIO’s
CEO’s
AgencyDirectors
Executive Oversight and Budget Personnel
Legislative Bodies
0 50 100
86%
45%
36%
28%
7%
Source: JFK School of Government, Harvard University
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How Does Digital Government or eGov Mature?
• Web presence– Passive displays, agency specific
• Interactive web– Hot links, still mostly gov by agency
• Transactions on the Web– Highly interactive, prompts, function portals
• Imbedded technology and Interactive Web– Enterprise interactivity– Service enhancement– Data driven results focused; not just process– Economic and business partnerships
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Much of Government is Transaction Centered
Price ofGovernmentServiceTransactions
Legal &Regulatory
InformationSeeking &Gathering Inventory
Payments
Logistics&Procurement
Benefits and grants
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Cost of Teller Transaction
$1.50
$0.30
$0.01
1985(Bank)
1995(ATM)
2000(Internet)
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Length of Time to Execute a Long-Term Gas Contract
9 months
2 weeks
< 1 second
2-3 years
1981 1989 1997 2000
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eGovernment: Business Transactions
• Business and tax Forms on line– Downloadable, mail in– Web interactive, real time
• Electronic Payment– License, permit, registration, taxes, utilities– EFT or credit card
• Records storage and retrievalSource: Digital States 2001 Progress and Freedom Foundation
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Social Services Transactions
• Benefit application forms on-line, preferable web-interactive
• Client history and contact available through email or web
• Job Search and application• Smart cards for benefit distribution and
client history• Child support payment and enforcement
Source: Digital States 2001
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Public Safety TransactionsLaw Enforcement and Corrections
• Digital wireless statewide network– Interoperable communications
• Data entry and retrieval– Traffic queries, reports– Crime investigations
• Tele-– Health– Depositions
Source: Digital States 2001
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Judicial Transactions
• Integrated data systems with law enforcement, social services
• Court decisions on line
Source: Digital States 2001
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Legislative and Elections
• Bill Status, text, amendments, history
• Election – Requirements– Returns
• Contacts
Source: Digital States 2001
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Technology Enables Productivity
BarterEconomy
Creation of Money
Industrialization,Transportation &Communication
Internet &InfoTech
1300’s
1800’s
2000’s
Specialization& Firms
Integrated, HierarchicalFirm
“VirtuallyIntegrated” FirmOr Government
InteractionCosts
Time
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Transactions can be reduced or eliminated – that saves $
butHave you added value to the
service or only saved $?
24/7 has shifted the responsibility for transactions from government to the client or customer. Value through convenience
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What Value does your agency add?
• Value time divided by elapsed time• Value time is the amount of productive
work time• Elapsed time is from the time work starts
until the time it’s finished• Ideal ratio of VT/ET = 1• In a typical organization, value added is less
than five percent
Source: (Dr. Michael Hammer to NGA Aug 2001)
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Reallocating Resources
• The solution lies in eliminating non-value added work, which only adds costs, errors, delays, and inflexibility.
• Current employees can be moved to higher skill and value areas
• Processes can be redesigned or eliminated• Embedded Technology is the enabler, data
is essential
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A Technology Solution must deliver value or benefit
•Technology by itself does NOT deliver benefit•Technology enables process transformation which may deliver benefit at lower cost or better quality
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Understanding IT is as hard as Understanding Performance
• 26 states resorted to across-the-board cuts to balance their current year budgets
• Only 10 states chose to make program changes
• Why aren’t performance budgeting and enterprise management used more effectively?
• Standard Budget: Resources needed to – Perform the same work or– Deliver the same services
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Managing for ResultsFifteen years later
• Performance Based Budgeting was widely popular, then pushed into the background when state revenues were flush
• Agencies now are being asked to justify increases or even to take less money
• Agencies often don’t know a program’s full cost, how to integrate annual performance plans with budget justifications or even how to measure or evaluate performance
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Enterprise approach to managing state government
• Data-driven evaluation of results is essential to performance evaluation but impossible without technology
• How should states apply technology to collect data – real-time and over time ?
• We are overwhelmed with data. What we need is data that can enable or inform decisions, especially in budgets
• How will you justify substantial increases without measurement of results?
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Local Government to Feds, States:
No More Mandates
• Tell us what you want to achieve, not how to do it
• Give us flexibility, we’ll give you accountability
• Who sets performance criteria?
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• Mayors, governors, CIO’s, legislators, agency folk all have to understand the value of shared responsibility and functional management
• Functional areas don’t follow agency boundaries• Enterprise management is essential• Continuous improvement is a necessity• Frequent “reinventing of government” is a sign of
poor strategic thinking and a route to mediocrity
Dr. Michael Porter, Harvard Business Review
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Technology is the easy part
You have to change an entire culture
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Who Moved My Cheese?
• Change Happens– They keep moving my cheese
• Anticipate Change– Get ready for the cheese to move
• Monitor Change– Smell the cheese often so you’ll know if it’s
getting old
Spencer Johnson, M.D.
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“The best way to predict the future is to create it.” -- Peter Drucker