INTRODUCTIONINTRODUCTION

Jerry Mechling

Harvard UniversityOctober 25, 2010

AgendaAgenda

1. LNW goals and process

2. Status now: Tough times priorities

– The problem: tough times ++

– Major moves

– Preliminary assessments

3. Next steps

Learning Goals: Learning Goals: •Value via IT-enabled innovation•Briefing papers for practitioners•Career options/networking

Process: reading, writing, dialog, decisions…Process: reading, writing, dialog, decisions…•Start with the Tough Times analysis•Extend to key stakeholders/groups•Add info from class, online, and others•Analyze further within DC workshop•Revise by January 21, 2011

480 Goals and Process480 Goals and Process

AgendaAgenda

1. LNW goals and process

2. Status now: Tough times priorities

– The problem: tough times ++

– Major moves

– Preliminary assessments

3. Next steps

• Defense… China Prepares to Hunker Down for Three Years to Weather the Global Economic CrisisChinaMatters

• But not only defense?…

““You never want a serious crisis to go to waste. What I You never want a serious crisis to go to waste. What I mean by that is it's an opportunity to do things that you mean by that is it's an opportunity to do things that you

think you could not do before. This is an opportunity.”think you could not do before. This is an opportunity.” Rahm Emanuel, Obama Chief of StaffRahm Emanuel, Obama Chief of Staff

Responses to tough times…Responses to tough times…

Will today’s tough times lead to major moves?Will today’s tough times lead to major moves?

Yes, Yes, if and whereif and where pressure meets pressure meets possibility…possibility…

Pressure --• Economics – worst pain since the Great Depression• Citizen demands – to DO something (but worried it will be

wrong)• Demographics – as boomers retire, demand up and supply

down

Possibility --• Technology – Web 2.0 ++ new: data, processing, and

communications (peer-to-peer)• Organization – from hierarchical routine to networked

innovation• Politics – new administrations, mandates for change

So, beyond hunkering down, WHAT SHOULD WE DO?...So, beyond hunkering down, WHAT SHOULD WE DO?...

An exercise in applied, collaborative An exercise in applied, collaborative research…research…

PK Agarwal, State of CaliforniaReg Alcock, University of ManitobaMichael Armstrong, Corpus ChristiPhil Bertolini, Oakland County, MichiganGeorge Burgess, Miami Dade CountyAneesh Chopra, U.S. CTOSharon Dawes, SUNY AlbanyKaren Evans, former U.S. OMBStephen Fletcher, UtahMaryantonett Flumian, Univ. of OttawaSteven W. Jennings, Harris County, Texas

Randy Johnson, Hennepin County, MNGopal Kapur, Center for Project MgtGopal Khanna, MinnesotaLarry Koskinen, U.S. Dept. of TreasuryTimothy Loewenstein, Buffalo County, NEAnne Margulies, MassachusettsJerry Mechling, Harvard UniversityJane Smith Patterson, e-NC, North Carolina Lisa Schlosser, U.S. EPAMarlin Schneider, State of WisconsinTeri Takai, State of California

AgendaAgenda

1. LNW goals and overview

2. Status now: Tough times priorities

– The problem: tough times ++

– Major moves

– Preliminary assessments

3. Next steps

GOVERNANCE:GOVERNANCE:feedbackfeedback + + authorityauthority

PROCESS:PROCESS:specializationspecialization and and scalescale

rules rules rules rules rules rules rules rules rules rules rules rules

hierarchyhierarchy

VALUE:VALUE:productivityproductivity

equityequity

legitimacy/transparencylegitimacy/transparency

lower risk/uncertaintylower risk/uncertainty

MOVES: Process + Governance MOVES: Process + Governance Value Value

Given Given better informationbetter information,, w what changes?hat changes?

Often, not much. Often, not much. LeadershipLeadership problems… problems…

• Head in the sand– IT “not strategic”

– “Don’t bother me”

• Silver bullet– IT as “the solution”

– “Don’t bother me”

• Boiled frog– Gov’t ignores, if not a crisis

– Can’t respond in time

What progress so far? What’s next?What progress so far? What’s next?

Eight Major Moves Eight Major Moves .. Val.Val. Feas.Feas.

1. Delivery: online/civic engagement1. Delivery: online/civic engagement

2. Production:integrated/shared services2. Production:integrated/shared services

3. Value Chain: industry reconfiguration3. Value Chain: industry reconfiguration

4. Infrastructure extension4. Infrastructure extension

5. Feedback/transparency5. Feedback/transparency

6. Massive collaboration6. Massive collaboration

7. New and open standards7. New and open standards

8. New patterns of authority8. New patterns of authority

Assessing value and feasibility…Assessing value and feasibility…p

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Will new moves ‘out there’ work ‘Will new moves ‘out there’ work ‘here’here’??

• broadband (video/emotions) and wireless (anywhere)• two-way interaction (lower the engagement barriers)

Examples: Obama campaign + administration

1. Delivery: Online/Civic Engagement1. Delivery: Online/Civic EngagementPROCESS MOVES – PROCESS MOVES –

““online, online, not in line”not in line”

• Process redesign for scale economies and responsiveness (Eligibility, IT, HR, Finance, Procurement, etc.)

Examples: Michigan (over many years); Nova Scotia (province-wide ERP)

2. Production: Integrated/Shared Services2. Production: Integrated/Shared Services

BPRBPR

PROCESS MOVES – PROCESS MOVES –

• reform entire industries: trade, health care, education, counter-terrorism, integrated transportation, development, etc.

3. Value Chain: Industry Reconfiguration3. Value Chain: Industry Reconfiguration

Example:Example: Health Health Care – needs Care – needs

EMRs EMRs andand better better incentivesincentives

XBTXBT

PROCESS MOVES – PROCESS MOVES –

• broadband, wireless, and data investmentsExamples: Stimulus bill broadband, Netherlands data standards

for financial regulation

4. Infrastructure Extension4. Infrastructure Extension

inter-inter-operabilityoperability

PROCESS MOVES – PROCESS MOVES –

5. Feedback/Transparency5. Feedback/Transparency

• Make gov’t data accessible to all (for transparency and accountability)

Examples: D.C. “democratizing data” initiative; federal initiatives with data.gov and itusaspending.gov

GOVERNANCE MOVES – GOVERNANCE MOVES –

6. Massive Collaboration6. Massive Collaboration

• Use Web 2.0 tools to engage more stakeholders in planning and implementation

Examples: Intellipedia, Diplopedia, Peer-to-Patent, etc.

GOVERNANCE MOVES – GOVERNANCE MOVES –

7. New and Open Standards7. New and Open Standards

• Promote collaboration via open standards (avoid the dependency and delays of case-by-case decisions)

Examples: cloud computing; Canada identity standards

GOVERNANCE MOVES – GOVERNANCE MOVES –

8. New Patterns of Authority8. New Patterns of Authority

• Establish authority as needed for ongoing coordination of new patterns of interaction

Examples: budgeting authority for long-term cross-boundary innovation

GOVERNANCE MOVES – GOVERNANCE MOVES –

AgendaAgenda

1. LNW goals and overview

2. Status now: Tough times priorities

– The problem: tough times ++

– Major moves

– Preliminary assessments

3. Next steps

4. Infrastructure extension4. Infrastructure extension

Eight Major Moves Eight Major Moves .. Val.Val. Feas.Feas.

1. Delivery: online/civic engagement 1. Delivery: online/civic engagement 22

2. Production:integration/shared services2. Production:integration/shared services 33

3. Value Chain: Industry reconfiguration3. Value Chain: Industry reconfiguration 11

5. Feedback/transparency5. Feedback/transparency

6. Massive collaboration6. Massive collaboration

7. New and open standards7. New and open standards

8. New patterns of authority8. New patterns of authority

44

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Analysis: What’s valuable Analysis: What’s valuable andand feasible?... feasible?...p

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““Take what the defense gives” + “the bomb” + “both”…Take what the defense gives” + “the bomb” + “both”…

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22

11

33

55

44

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Major ThemesMajor Themes

1. 21st century service model. Bundle infrastructure, shared services, and delivery (for productivity, equity – hi value and feasibility):

– Especially support services, health care, education, police, transport, economic development

– Small locals to consume services while keeping customer relationships; states and private sector to develop and host (via cloud); feds to provide venture capital for development/evaluation/standards

2. 21st century open government model. Bundle data and collaboration (for transparency, competitive efficiency – potentially high but uncertain value and feasibility)

3. 21st century “business” model. Use self-service, volunteers, capital funds, user fees, and a redesigned tax base.

AgendaAgenda

1. LNW goals and overview

2. Status now: Tough times priorities

– The problem: tough times ++

– Major moves

– Preliminary assessments

3. Next steps

How to learn from early movers?…How to learn from early movers?…

Economies of standardizationEconomies of standardization

Ado

ptio

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dopt

ion

Invention by “first movers”Invention by “first movers”

Economies of innovationEconomies of innovation

Extension by “fast followers”Extension by “fast followers”

The GAP –The GAP –a HUGE a HUGE problemproblem

TimeTime

1.1. More effective CXO + CIO relationshipsMore effective CXO + CIO relationships

2.2. Easier/deeper access to exemplary tools for action: scorecards, budgets, Easier/deeper access to exemplary tools for action: scorecards, budgets, project proposals, RFPs, contracts, job descriptions, press releases, project proposals, RFPs, contracts, job descriptions, press releases, evaluations, articles, etc.evaluations, articles, etc.

3.3. Virtual communities of practiceVirtual communities of practice

Build bridges via deeper, trusted communicationsBuild bridges via deeper, trusted communications

Parting Thoughts…Parting Thoughts…

1. IT-enabled innovation – it’s what the Information Age is all about. Leadership issues, NOT just technology.

2. The goal is maximizing public value, NOT minimizing technology costs.

3. Change is clearly risky, but failing to adapt is the biggest risk.

4. Web 2.0 and social networking offer new and potentially powerful possibilities.

INTRODUCTIONINTRODUCTION

Jerry Mechling

Harvard UniversityOctober 25, 2010