Copyright © 2018 Deloitte Development LLC. All rights reserved.

Agile GovernancePrinciples, tools and technologies for today’s government

William Eggers, Deloitte, @wdeggers

Copyright © 2018 Deloitte Development LLC. All rights reserved.

Artificial Intelligence

Machine learning

Big data analytics

Distributed ledger technology

Internet of Things

3D printing manufacturing

Sharing economy

Self-driving vehicles

Technological and business model advancements are creating a sea of change in today’s regulatory environment…

These developments create challenges for traditional policy, governance and regulatory models

Government trends

AI Augmented Government Government venturing Beta government

Thinking in 3D Sandboxes Crowdsourced innovation

TH

How do regulators regulate emerging technologies?

How do regulators deploy the toolkit to enforce regulations

Data Privacy

Drones

Autonomous vehicles

Stage #1Pre-regulatoryWhat do we have now?

Stage #2Testing and evaluation When to regulate?

Stage #3Regulatory approach How to regulate?

Stage #4 RevisitWhat has changed?

Artificial Ridesharing IntelligenceBlockchain

Minimum government regulation

Light precautionary regulation

Strong precautionary regulation

The regulatory spectrum

The Four Stages Encourage innovation and protect customers by addressing these four critical questions

FEW MANY

LIVE(action,

immersive, concrete)

LAB (simulated, abstract)

Sandboxes

Accelerators/Incubators

RCTs, A/B testing

Foresight

SurveysPolicy/RegSimulations

Co-creation

Workshops

Prototyping

Business models

Policy outcomes

EXPERIMENTATION

Pilots

Consultations

Crowdsourcing Policy

Challenges

Nudges

Design Thinking

Hackathons

Shared economy

Platforms

Two sided markets

Cloud- machine learning

platforms

Industry 4.0

AI/ Data driven

technologies

Value chains to ecosystems

Regulation High Government

Low Government

Strong precautionary

Legislations

Outcome based regulation

Risk based regulation

Collaborative regulation

Pre-certification

Public private partnerships

Collaborative governance ecosystem

Third party certification

Private standard setting

Guidelines

Best practice guidance

Good practices guidance

Self regulation

Codes of conduct

Permission for innovation

Advisory opinions

Sof

t la

ws

The Agile Model

Permissible innovation

Data Privacy

Drones

Autonomous vehicles

Stage #1Pre-regulatoryWhat do we have now?

Stage #2Testing and evaluation When to regulate?

Stage #3Regulatory approach How to regulate?

Stage #4 RevisitWhat has changed?

Artificial Ridesharing IntelligenceBlockchain

Minimum government regulation

Light precautionary regulation

Strong precautionary regulation

The regulatory spectrum

The Four Stages Encourage innovation and protect customers by addressing these four critical questions

UAS regulatory landscape for selected countries and US states

Seeming Regulatory

Regime Paradigms

Country National UAS Regulator

UAS Allowance

United States Federal Aviation Authority

Australia Civil Aviation Safety Authority

United Kingdom Civil Aviation Authority

UAS Restriction

Israel Civil Aviation Authority of Israel

India Directorate General of Civil Aviation

Nigeria Nigerian Civil Aviation Authority

Allowance Restriction

How can regulators address these challenges?Principles of the Future of Regulation

Adaptive regulationShift from “regulate and forget” to a responsive, iterative approach

3

12

45

3

12

45

Regulatory sandboxesPrototype and test new approaches by creating sandboxes and accelerators

Outcome-based regulationFocus on results and performance rather than form

Risk-weighted regulationShift from one-size-fits-all regulation to a data-driven, segmented approach

Collaborative regulationAlign regulation nationally and internationally by engaging a broader set of players across the ecosystem

Source: Deloitte analysis| Data updated as of May 28, 2018

Map of fintech

regulatory sandboxes

Consumer Financial Protection Bureau

As part of its Digital Health Innovation Action Plan, the FDA created a Pre-Cert pilot program for eligible digital health developers that demonstrate a culture of quality and organizational excellence.

FDA also intends to monitor the performance of these companies continuously, with real-world data.

For some digital health products, the FDA is using risk-based approaches that balance potential risks with patient benefits.

Source: Food and Drug Administration

H

How do regulators regulate emerging technologies?

How do regulators deploy the toolkit for delivery and operations?

Personnel shortages

Backlogs

Licensing and permitting demands

Reducing compliance costs

Rationalizing regulations

What are the challengesOperational challenges

1990s

Rise of outcome-based regulation

2000s

Use of basic data analytics to

detect customs and tax frauds

2004-05

The use of big data analytics to detect fraud and abuse in welfare programs

2010

Greater use of big data analytics

2015-16

Regulators begin to use

RPA to automate processes

2017-18

Launch of Behavioral

Insights Team (Nudge Unit) in

UK

Creation of first fintech

sandbox

Regulators begin to use AI and ML

in various applications

NZ pilots Legislation-as-

code

Use of online portal to interact with regulated entities (eGov)

2020 2025 and beyond

Regulators combine intelligent automation and AI

Tools, technologies and new regulatory approaches come

together

Many legislation transformed into digital

codes

Historical and future landscape of regulatory approaches and tools

Adaptive regulations

Major economies sign multilateral

agreement on free data flows across

borders

Launch of eRulemkaing

Program

Technology ToolsBusiness Tools

The Regulator’s toolkit

Artificial Intelligence

Big data & analytics

Robotic Process Automation

Augmented Reality

Nudges

Sandboxes Crowdsourcing

Customer experience toolkit

Blockchain

Unmanned air vehicles

Internet of Things

Increasing internal efficiency

Improving regulatory effectiveness

Reducing the compliance burden

Automating manual tasks

Optimizing inspection and enforcement efforts

Analyzing large volumes of public comments

Anticipating problems and sensing disruption

Fighting fraud

Rethinking outreach

Nudging compliance

Rationalizing and streamlining regulations

Reducing the reporting burden

Improving the government to business experience

What do regulators want to achieve?

17 Copyright © 2017 Deloitte Development LLC. All rights reserved.

Public Health Inspector

As regulators of tomorrow, Public Health Inspectors use the power of data, cognitive technologies and their public health expertise to protect the health and safety of citizens

Toolbox

Contact

William D. EggersExecutive Director, Deloitte Centerfor Government Insights+1 571 882 6585weggers@deloitte.comTwitter: @wdeggers

Copyright © 2018 Deloitte Development LLC. All rights reserved.

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