keynote address: changing public sector through ict-innovation

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e-Government and modernization in advanced states

Christian Wernberg-Tougaard,

Director, Government, Education & Health

EMEA


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Overview

E-government – now and in the future

Modernization – what’s happening?

Short overview: some of the more advanced countries


eGovernment – still valid?

Government with/out “e”?

• It is often debated whether or not “e” is relevant – or whether or not it should be replaced with “m” (mobile)?

• But: every Government needs to embrace ICT as a fundamental part of their operation regardless of its form throughout all levels of administration.

• So increased service-enablement and digita-lization is still very valid.

Huge differences

• But there are huge differences between the most advanced and the less advanced on “e”.

• There seems to be a good number of examples of how advanced governments have coped with transformation from immature to mature – but the big question is:

• How to LEAPFROG?

Leapfrogging(1)

• Less advanced should use their effort (time and money) on “shortcutting” by

• Discarding “NIH” (not invented here) and

• Adopting “good practice” from more advanced countries.

• Identify “key structures” required for transformation.

• Countries to look out for is:

• Australia, Nordics (DK, SE, NO) and the UK.

(1) http://www.ictregulationtoolkit.org/en/Section.1829.html

http://www.ictregulationtoolkit.org/en/Section.1829.html


Trends in Modernization

Paradigm shift Technology shift


Centralized vs Decentralized

More and more Governments realize that they need to control the digital agenda and centralize decision making, as decentralization

– cause incommensurable solutions (data models) and higher costs

– cause “rule of law” issues for citizens and companies

– cause lower efficiency and effectiveness

Advanced states looks at:

– Centralizing Social Benefits and Tax Credits determination in a unified model.

– Unified Health Care service in coordination with Social / Local Care / GP.

– Centralized administration of Pension, Unemployment, Tax Adm. ao.

– “Forced” best practice on local government to achieve uniformity.


Disintegrated vs. Integrated

Fragmentation is a major issue for Governments that try to “leapfrog”.

– A survey by the World Bank indicated that fundamental core (infra)structures needs to be in place in order to cash-in on ICT innovations.

Fundamental components for Government Agencies in achieving long-term success with digitalization are:

– Consistent Master and Meta-data.

– Separation of processes and policies.

– Reuse of data between different stakeholders – including fixing the “sow/harvest” challenge through Governance models.

Advanced states looks at:

– Centralizing / homogenizing Master Data and Governance.

– Enabling “Law/rules/policies” enablement lifecycle model

– Integrated Health care and social care/social services.


Legacy vs CEFA

Governments are battling “burning platforms” caused by multiple

elements:

– Lack of skills among ICT staff (eg. COBOLT) to maintain source code.

– Life end of maintenance components (ie. eBay shopping for parts).

– Hand-on expertise is retiring.

CEFA = Componentized Enterprise Functional Architecture


Build vs Buy

There are quite a large number of Governmental organizations that

believe that “Build is better than Buy” because they get things exactly

as they want it – and cheaper. This is a myth:

– Green-field build is never a good option, unless you are very unique.

– Public Sector Organizations are NOT unique. Your next door neighbor is

doing the same as you – from a process point of view. What really differs is

the POLICIES.

– A number of Governments have adopted “BUY” paradigms in order to

cash-in on the high degree of maturity of COTS (Commercial-of-the-shelf).

CEFA = Componentized Enterprise Functional Architecture


Impact on “Modernized Government”

Increased Direct ICT Impact Indirect ICT Impact

Centralization •Consolidated Data Centers

•Cloud and Shared Service

•Unified Service Platforms

•Organizational Change

•Process and Policy Optimization

•Budgeting and Planning

•Collaborative and Social Empowerment

•Knowledge Sharing

Integration/Interoperability •Cross Public Sector Data Sharing

•Common Solutions and Gateways

•Citizen Access to Own Data.

•Utilization of Public Sector Data in Society

Legacy Modernization/CEFA •Introduce the “least sticky stack”.

• Enable “best of breed”

functionality

• More agile service enablement in all sectors

• Can maintain existing investments (no

“Rip’n’replace”)

Buy •Reduced cost – as buy is cheaper

than build

• More flexibility and lower risk in

solution provisioning.

• Increased international standardization on

both technical and vertical areas.

• Relatively more investment in innovation on

product level and solution level.

Note: Governments should carefully evaluate functionality and a high number of other attributes, if addressing Open Source vs. COTS.

Please review this paper: http://www.igi-global.com/chapter/evaluating-open-source-government/27812 , which I wrote back in 2006.

http://www.igi-global.com/chapter/evaluating-open-source-government/27812










Complex Solution Strategy Why Componentized Enterprise Functional Architecture?


Componentized Enterprise Functional Architecture

Front-end – Portal – Citizen Interface Auth

entic

atio

n o

f Citiz

ens a

nd

Case W

ork

ers

Ma

ste

r Da

ta M

an

ag

em

en

t

Case Management Policy Automation Business & Social

Intelligence Contribution and

Collection Disbursement

Data Integration / Interoperability + Data Quality

Database and optimized HW foundation

Document Handling and Producing

Ente

rprise S

ecurity

GR

C, E

FC

(*)

and V

ault/A

udit

(*) EFC = Error, Fraud and Corruption


Componentized Enterprise Functional Architecture

Focus on the CRM – Citizens Relationship Management

Front-end – Portal – Citizen Interface Auth

entic

atio

n o

f Citiz

ens a

nd

Case W

ork

ers

Ma

ste

r Da

ta M

an

ag

em

en

t

Case Management Policy Automation Business

Intelligence Contribution and

Collection Disbursement

Data Integration / Interoperability + Data Quality

Database and optimized HW foundation

Document Handling and Producing

Ente

rprise S

ecurity

GR

C, E

FC

(*)

and V

ault/A

udit

(*) EFC = Error, Fraud and Corruption

Citizens (Case) Management component:

• Public Sector / Social Service data model

• Embedded business processes

• Rules and processes separated

• Integrated with other components

• Modern, mobile flexible (HTML 5) UI

• Innovation Packs add functionality without re-implementation

• High-number of additional “Citizens Relationship Management” functionality.

• Integrate with SRM – Social Relationship Management.


Examples of modernization in advanced states

Innovation

Paradigm Change

ICT Transformation Vision


Case: Denmark

Denmark introduced a wide number of key registers in the mid-60’s. These registers are the foundation of digitalization today, as the identity of every citizen, company and building is know.

– For 99% of all births, the child is granted a unique identifier with 15 min, and within 2 hours the child is in (around) 37 sub-systems, from child nurse to payment of child benefit (to the mother).

– Aggregated property data allow any citizen to access information on any property with more than 400 data points (construction year, roof type etc).

Modernization:

– Centralized “gateways” (NEM = Easy) + Citizens Portal (Borger.dk)

– Digital-ready legislation -> laws to be ready for digitalization in an integrated life-cycle approach.

– Consolidation of “social benefit” payments into a single organization.

– Rethinking coordination and data sharing across Health Care and Social Care (Digital Welfare).

– Free access to all Government’s accumulated core data.

– Centralizing Payment Administration (from municipalities); expert centers on Tax Law interpretation.

– Centralized core data access service (called “Datafordeleren”) now tendering.


Case: UK

With the “Universal Credit” reform, the Government is changing the Social Welfare layout recommended by Beveridge in the 1940’s.

– The Government is centralizing determination (eligibility) and administration of a number of social welfare benefits and tax credits.

– The disintegrated existing solutions for administration and determination of eligibility caused a number of examples of excessive pay-out’s in Social Benefits – as well as that the dis-joint systems were unable to (easily) detect Error, Fraud and Corruption (EFC).

– The Universal Credit system will be in operation in late 2013.

New Strategy for “Digital by Default” –> focusing on how to homogenize the governance of Government eServices (ie. how to move from idea to implementation).


Case: Australia / New Zealand

Australia has for years been first-mover in separating processes and policies. The product “OPA” (Oracle Policy Automation) was originally developed in Australia and used in a number of Government Agencies.

New Zealand is among the leaders in “holistic rules life-cycle” – from validating impact of proposed legislation to actually implementing this in their systems(1).

But also in other areas they are innovating:

– PVP -> Public-Volunteer-Partnership – centrally procured case management solution mandatory for Voluntary organizations to use.

– Mandatory Reporter Guide (regional centralized child at risk reporting).

(1) http://www.ird.govt.nz/calculators/keyword/incometax/calculator-pts-calculator-2012.html

http://www.ird.govt.nz/calculators/keyword/incometax/calculator-pts-calculator-2012.html








Case: Netherlands

Netherlands have been advancing on their cross-ministerial coordination and e-services offerings/enablement.

– SVB (Sociale Verzekeringsbank) is responsible for determining eligibility and paying several social welfare benefits, inc. child benefit and old age pension.

The existing legacy suffered from lack of maintainability, lack of skilled resources and “future-durability” even though it operated with >95% STP (Straight Through Processing).

Investing in a complete re-modernized event-driven architecture supported by an Oracle CEFA (“Full red stack”) they are prepared to meet the future.

By aggregating 3rd party information they want to construct the most accurate “citizen data profile”, so that determination becomes as correct as possible.

– UWV (Social Security + Unemployment) is considering next generation of data integration service to provide them with streamlined data around citizens, companies and partners.

– Belastningdinst (Tax Agency) is streamlining utilizing a COTS approach.


A few observations from advanced states

keynote address: changing public sector through ict-innovation

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