Trends in Information Technology and Egovernment.
concurrent session #8
Brandy Manek – State of Oklahoma
Thomas Shack – Commonwealth of Massachusetts
Bob Sabo – Oracle Public Sector
August 24, 2015
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Program Agenda
1
Modernization and eGovernment – an overview
2
State of Oklahoma Examples
3
Commonwealth of Massachusetts Examples
4
Questions
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2
Program Agenda
1
Modernization and eGovernment – an overview
2
State of Oklahoma Examples
3
Commonwealth of Massachusetts Examples
4
Questions
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
3
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.
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4
“The future ain't what it used to
be”
“It’s tough to make predictions,
especially about the future”
Noted philosopher and baseball great Yogi Berra
In the world of CorporateSpeak we would use the terms “Paradigm Shift” or Inflection Point”
Neither one of which are as funny or even insightful as Yogi’s.
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Change
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Changing NASCIO Priorities
Priority Technologies, Applications & Tools
2010
2011
2012
2013
2014
2015
Virtualization (storage, computing, data center
etc.)
1
1
1
3
5
7
Networking, voice and data communications
2
3
5
8
10
8/10
Document/Content/Records/E-mail management
3
6
9
10
Cloud computing, software as a service
4
2
3
1
1
1
Security enhancement tools
5
7
8
2
6
Enterprise Resource Planning (ERP) /
Legacy application modernization-renovation
6
9/4*
6/2
6/4
4/6
2/9****
Geospatial analysis and GIS
7
**
**
**
**
Business Intelligence (BI) and Business Analytics
8
8
8
9
7
Identity and access management
9
5
7
5
9
Social Media and Networking
10
10
**
**
**
10 (PS)
**
8 (DR)
5***
4
2
3
3
Public Safety Radio Network/Disaster Recovery
(2014)
Mobile Workforce Technologies
*Topic
4
was split in 2011 - ** Dropped fromCopyright
list ***
****
9, Modernization
is 2
© 2014DR
Oracleonly
and/or its
affiliates.ERP
All rightsis
reserved.
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NASCIO – Making Sense of the Priority Applications and
Technologies
Major Shift in Emphasis – Changing role of Technology and CIO role!
Top four are business process/business applications related
1. Cloud Computing/Software as a service
2. Legacy application modernization-renovation
3. Mobile Workforce Technologies
4. Business Intelligence (BI) and Business Analytics
Remaining six are technology/infrastructure related
Security, Disaster Recovery, Virtualization, Networking etc.
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What Does This Mean for State Finance Professionals?
Key technologies and trends that impact you and High Performance Government
•
Modernization – Improve efficiency, effectiveness and lowers costs
•
Mobile – Work anywhere on any device. Better employee and citizen service
•
Cloud – Reduce deployment time, stay current, impact staffing issues
•
Business Intelligence/Analytics – Use information to drive change
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What is Modernization?
Replace Old
Systems
Upgrade/
Modernize
Supplement
Existing
Applications
Alternate
Deployment/
Support Methods
Adopt Completely
New Technologies
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Modernization
Action
Description
Example
Replace Old System
Scrap Legacy Systems with modern
versions
Wisconsin – Implementing new
Statewide ERP
Upgrade/Modernize
Adopt latest versions of Finance
systems
New York, Oklahoma, Massachusetts,
North Dakota, Pennsylvania Treasury
Alternate Deployment Methods
Outsource or deploy Cloud
applications
Ohio, Michigan, Georgia
Supplement Existing Applications
Add new or enhanced functionality to Georgia, Montana
existing applications
Adopt Completely new technologies
Adopt Cloud, Social, Mobile capable
business processes
Oklahoma, Massachusetts
What about Shadow Systems?
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Shallow vs. Shadow
State and local technology leaders walk a tightrope between managing risk and
encouraging innovations. ….. Here are some ways to separate good “shallow IT”
from the bad “Shadow IT.”*
SHALLOW
SHADOW
Central IT understands what you are doing
Central IT does not know what you are doing
Offers new tools and innovative approaches
Duplicates existing enterprise capabilities
Involves low risk data
Involves sensitive or highly regulated data
Involves non critical systems
Involves core systems and functions
*Government Technology Magazine – June 2015 – Innovation vs. Control by David Raths
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Better Citizen Service
Challenges:
Solution:
• Improve taxpayer self-service capabilities
to reduce the contact center’s workload
• Provided taxpayers with web access to
IDOR’s knowledge base through an
intuitive interface that makes it easy for
site visitors to identify specific tax-related
topics
• Enable revenue agencies to respond to
taxpayer questions in an accurate,
consistent, and timely manner, despite an
ever-changing tax code
• Improve customer-service performance
and response quality to address everincreasing inbound e-mail and call
volumes
http://www.oracle.com/us/corporate/customers/customersearch/illinois-dept-1-service-cloudss-2355093.html
• Decreased customer hold times via
improved self-service and decreased callprocessing-cycle times
• Produced reports flagging aspects of the
tax code that are giving the general public
trouble, enabling IDOR to take corrective
action
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Better and More Actionable Information
STARS (State Analytical Reporting System)
Challenges:
Solution:
• Connecticut continues to face significant
budget challenges and must find ways to
more effectively manage resources.
• Integrate CORE (PeopleSoft ERP) and nonCORE data into BI warehouse for more indepth analysis and reporting
• Need to provide the State with the ability
to analyze big data and make better and
more informed decisions
• More reliable data with best performance
available
• Position the State with a strategic
analytical and reporting tool for the long
term
• STARS will become the statewide data
repository for human resources and
financial data
• Provide managers and executives with a
Mobile Application for analytic reporting
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And Now, a Little About the Cloud
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Significant challenges with the traditional ERP
delivery model are forcing a paradigm shift
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DIFFICULT TO USE
COSTLY CUSTOMIZATIONS
EXPENSIVE UPGRADES
INEFFICIENT PROCESSES
LIMITED ACCESS/VISBILITY TO KEY OPERATIONAL & FINANCIAL DATA
EXPENSIVE TO MAINTAIN
LIMITED INNOVATION
REDUCED IT BUDGETS
DIFFICULTY ATTRACTING QUALIFIED IT PERSONNEL
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As a Result, Orgs are Looking Towards Cloud Delivery Models
Leading
Edge
Traditional
On-Premise
Public Cloud
Private Cloud
vs.
vs.
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FINANCE EXECUTIVES ARE READY
Complete
Implementation
of Cloud
Technology
64%
76%
81%
REDUCE
OPERATIONAL
COSTS BY 20%
KEY FOR SUCCESS
IN NEXT 12-18
MONTHS
IMPROVE
EMPLOYEE
PRODUCITIVY
Source: CFO Research, The Business Value of Cloud Computing, A Survey of Senior Finance Executives, June 2012.
20
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Private vs. Public (i.e. SaaS) Cloud
Private Cloud
Public Cloud (SaaS)
• Traditional ERP apps hosted by 3rd party
• Next-generation applications built from
the group up for the Cloud
• 3rd party provides infrastructure &
possibly application support services
• Single code lines
• Providers can provide SaaS-like pricing –
“synthetic SaaS”
• Usually multi-tenancy model
• Customize applications
• Rapid release cycles – rapid innovation
• Funded through CapEx and OpEx
• Model only reduces some of the pain of
supporting the traditional model
• Configuration vs. customizations
• SaaS vendors apply updates
• OpEx funded
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Value of SaaS ERP Applications is Changing the Conversation
Easier to
Use
Lower TCO
Quicker
access to
innovation
Improved
Service
Levels
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SaaS Redefines the ERP Cost Model
On-Premise
Visible
Apps
SaaS
• No databases,
database mgmt
software or DBAs
Apps License
Support or
Subscription Fees
• No hardware or
associated
infrastructure support
labor
Apps Support Labor
(Business Analysts,
Developers)
Underlying
DB License Support Fees
Database
DB Support Labor (DBAs)
Hardware
HW License Support Fees,
DC Staff & DC Land,
Plumbing & Pipe
Savings
• No expensive major
upgrades ever again
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Different Multi-Tenancy Approaches
Legacy Multi-Tenancy
(Co-mingled)
Isolated Tenancy
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Comprehensive Set of Cloud Solutions on the Market
Talent
Management
HCM
Customer Service
Social
Relationship
Management
Planning &
Budgeting
Applications as a Service
ERP
Platform as a Service
Policy Automation
Infrastructure as a Service
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Not Just SaaS - Complete Portfolio of Cloud Platform Services
Business
Intelligence
Cloud
Documents
Cloud
Social
Cloud
CONTENT AND
COLLABORATION
Process
Cloud
Internet
of Things
Cloud
Big Data
Cloud
DATA
MANAGEMENT
Database
Backup
Cloud
ENTERPRISE
MANAGEMENT
IT
Analytics
Cloud
Log
Analytics
Cloud
Integration
Cloud
Java Cloud
Exadata
Cloud
Big Data
SQL Cloud
MOBILE
Big Data
Discovery
Cloud
Big Data
Preparation
Cloud
Sites
Cloud
Big Data
Preparation
Cloud
BUSINESS
ANALYTICS
Mobile Cloud
Application
Performance
Monitoring Cloud
Database
Cloud
NoSQL
Database
Cloud
Developer
Cloud
Mobile
Cloud
APPLICATION
DEVELOPMENT
Application
Builder Cloud
Node Cloud
Internet
of Things INTEGRATION
Cloud
SOA
Cloud
GoldenGate
Cloud
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Program Agenda
1
Modernization and eGovernment – an overview
2
State of Oklahoma Examples
3
Commonwealth of Massachusetts Examples
4
Questions
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27
Technology Supporting Budget
Innovation
State of Oklahoma
Brandy Manek
Director of Budget, Policy, Legislative
Affairs and Gaming Compliance
Where we were
• Three non-integrated systems for the budget cycle
• Incremental budgeting with a zero-based budgeting mandate
29
Where we are going
• One single integrated system for the entire budget cycle
• Performance Informed Budgeting in both substance and form
30
How we are getting there
• Implemented Hyperion PSPB and OSSM
• Specific functionalities of Hyperion that support our innovation
• Overview of implementation process and current status of
system
31
The Cloud
• Hyperion
• Other Systems
32
Program Agenda
1
Modernization and eGovernment – an overview
2
State of Oklahoma Examples
3
Commonwealth of Massachusetts Examples
4
Questions
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
33
Commonwealth of Massachusetts
Tom Shack, Esq.
Comptroller of the Commonwealth
thomas.shack@state.ma.us
A Measured Approach to Innovation
• Recommended Reading:
• Citizenville: Gavin Newsome (Lt. Gov. Calif.)
Key points:
A plea for more tech-enabled government and
examples of how some governments have
begun using technology to better effect;
If leaders don’t reshape government for the better,
business and taxpayers will.
35
“Citizenville” continued
•
Government is stuck in the last century while everything else
has changed; government appears increasingly irrelevant and
out of touch;
•
If we don’t innovate – citizens will take matters into their own
hands to dissolve political gridlock and produce tangible, real
world changes;
•
“Gamification” appealing to tech savvy taxpayers’ competitive
side;
•
Twenty-first-century problems are too big and too expensive for
the government simply to buy solutions; Internal innovation and
technology combined is the way out;
•
Modern digital governments house the needs, concerns,
information, and collaboration of an enlightened digital
citizenry;
•
A vision for better government; that achieves the goal of
“commonwealth.”
36
Why don’t governments keep pace with private sector
advancements?
• Resources – scarce and limited with competing needs;
• Bureaucracy – Lack of creativity and ownership (“it’s not my job” –
RMV example);
• Broad Priorities -- social, infrastructure, political;
• Risk Aversion – Not for profit (profitability drives efficiency in
private sector);
• Security – PII, sensitive and protected information;
• Transparency – public entities must be transparent to taxpayers.
37
Massachusetts’ Mandates
• Be more transparent; efficient, and responsive; break down
bureaucratic roadblocks for departmental innovation (let
departments conduct their business – with proper oversight
and QA).
• Comptroller has dual constituencies:
– Agency heads and CFOs of 150+ agencies and departments
overseeing $60B annually in expenditures – equivalent to a Fortune
50 company.
– Public – protecting assets and integrity in Commonwealth fiscal and
administrative operations.
38
Last 5 Years
• 2010 – U.S. PIRG Grade of “F” for
transparency
– In December 2011 the Commonwealth
of Massachusetts released “Open
Checkbook” website.
• A proactive approach to civic engagement.
• A proactive rather than reactive approach to
public records requests – basic financial
information subject to the public records
law will be provided to the general public
without a formal request.
39
2012-2015
U.S. PIRG Grade = “A-”
• The Open Checkbook included at launch:
– Search for spending by Vendor, across all
Departments, and see details for those
vendors, down to the date the payment
was made
– Review Department spending by Vendor
– Review state spending by Spending
Category
– Search for State Employee Payroll and
Salary information
– Search for State and Teacher Retiree
Pension information
• Enhancements since go live:
– Tax credits
– Summary transactions
– Quasi-Public Authorities
40
The Next Five Years
• Examining dozens of systemic opportunities for shared
services, cloud-based, and SaaS solutions;
– Greatest Concerns: Data breach and/or fraudulent transactions
due to security and loss of internal controls
– Recent and Ongoing Examples: IRS, Office of Personnel
Management
• Solution – Agency collaboration combined with Independent
Verification and Validation (IV&V) must be utilized in system
design and implementation – also compensates for
competing obligations and political pressure – buy in needs
to come from all sectors.
– Example: Procurement and Payment end-to-end solution.
Procurement risk is much lower than payments (like opening a
drive-up window at a bank’s safe).
41
Takeaways
Don’t reinvent the wheel
Breakdown Silos
Work with other states -- examine efficiencies of
scale.
42
Program Agenda
1
Modernization and eGovernment – an overview
2
State of Oklahoma Examples
3
Commonwealth of Massachusetts Examples
4
Questions
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
43