(And Why It Will Be More Expensive to Do
It Any Other Way)
Richard J. H. Varn
Senior Fellow
© 2005 Center for Digital Government. All Rights Reserved. Quote with Attribution Only
Concierge Government:
Personalized Agents At Your
Service
The Era of Digital Government
Where We Are in the
Digital Revolution
E-Government 1990-2005: P.I.T. I.T.
•
•
•
•
•
•
•
Publish
Interact
We are
hung
up
in
Transact
the middle
Integrate
of here
Transform
Technical challenges are mostly gone
Now the if you have the money, the
will, and the need, you can do it
Optimizing Resources
Consolidate, Simplify, and Unify
Kinds of Solutions
1 2 3 5 50 500 5000 ?
1
Number of
Instances or
Deployments
of the
Solutions
2
3
5
50
1 Ea Agency
1 Ea Bureau
?
Cross the Streams
“Traditional” organization of back office
administration
Finance
Public
Safety &
Justice
Social
Services
Fiscal
policies
Police
Family
Budget
Courts
Shared Services
Finance
Public
Safety &
Justice
Social
Services
Accounting
Fiscal
policies
Police
Family
Budget
Courts
Disabled
Debt mgmt
Jails
Elderly
Center of
Excellence
Disabled
Taxation
Jails
Elderly
Procuremen
t
Accounting
Accounting
Accounting
IT
Procurement
Procurement
Procurement
IT
IT
IT
Source: IDC
Been There, Proved That
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Pool all IT funding
Consolidation
Shared services
E-Forms
E-Intake and workflow
Case, print, and desktop
management
• Enterprise security
• Converged networks and
VOIP
• Enterprise security
• Collaborative tools
• Channel migration
• Quality methodologies
(CMM, ITIL, etc.)
• Data warehouses/marts
• ECM/Compliance
• XML Gateways
• Business intelligence
tools and dashboards
• Identity security and ID
management
What Done Looks Like for
This Phase
Layers of Trust and Technology in
Intergovernmental Collaboration
GOVERNANCE:
Incentives for Collaboration
MULTI ENTERPRISE - HORIZONTAL
MULTI ENTERPRISE - VERTICAL
Build IT Once
TAX & REVENUE
CITIZENS, TRADING
PARTNERS &
PUBLIC ENTITIES
TRANSPORTATION
COMMON
INTERFACE,
INFORMATION &
TRANSACTIONS
EMPLOYEMENT
APPLICATIONS
BUSINESS PROCESSES
SECURITY/ IDENTITY
INFRASTRUCTURE
PLATFORM
ARCHITECTURE
PUBLIC HEALTH
Tying Multiple Enterprises Together at the Edges
PUBLIC SAFETY
COMMON TECHNOLOGY
COMMON NETWORK:
HUMAN SERVICES
CONSOLIDATION:
ENVIRONMENT
FUNDING:
Respecting Data Sovereignty
GLOBAL
NATIONAL
REGIONAL
STATE
COUNTY
CITY
TRIBAL
The Pace of Change Is Accelerating
100 years happens in 20 at the current rate*
*Ray Kurzweil
http://en.wikipedia.org/wiki/Image:PPTParadigmShiftsFrr15Events.jpg
Deconstruction Destruction
• Humanity’s Great Quest: Being
able to observe, identify, model,
manipulate, create, form, and
combine the parts of anything
• Cosmos, atoms, elements,
chemicals, genes, cells, brains,
bodies, ecosystems, knowledge,
work, processes, markets, and
institutions
Computer Power
• Power and performance of
computers continue to double
every 12 months
• Information doubles now every 3
years and in 10 years will double
every 11 seconds1
1. Hossein Eslambolchi, CIO AT&T
Doubling Computer Power
• 20 quadrillion instructions per second
(20 petahertz/petaflops) is the speed of
1 human brain
• Super-computer at brain speed: 2010
• Laptop at brain speed: 2020
• Super-computer at speed of ALL
human brains: 2040
• Laptop at speed of all human brains:
2050 1
1. Ray Kurzweil
Looking Inward: From Galileo
to Hubble in a Generation
• Non-invasive brain scanning
capabilities are growing
exponentially
• Reverse engineering of the
brain and other software
techniques make machines
more than human in many ways
• “Will I dream, Doctor?”
©RJHV Consulting
HRI robots:
- mimic all muscles of the face (over 62 muscles)
- have cameras embedded in the realistic eyes, for AI-vision software
- utilize AI software to “see” human faces and make eye contact
- use AI-driven conversations, with speech recognition & real-time lipsync
- run using a standard notebook computer, even with all AI software
running
What and Where Is Work and Who or What
Does It?
Machine Race
Human Race
Workplace Workers
Distributed Workers
Computers and Robots
Work
Neither and Both
Workplace Machines
Distributed Machines
Play
Outsourced Workers
Outsourced Machines
Crowd Sourced
Workers
Distributed
Processing
©RJHV Consulting
Centers Are Shifting
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•
•
Center of Proximity and Concentration
Center of Culture
Center of Production
Past
(Settled)
Center of Application
Center of Global Scale
Future (Frontier)
Center of Excellence
Center of Integration
Center of Creativity
Center of Discovery
Center of Brokering
Center of Service (Concierge At Large)
Modeling Government: Easy
• Modeling complex systems:
–Data
–Rules
–Processes
–Outcomes
• Weather, oceans, markets, seismic
events, genomes, diseases, and
the cosmos are hard
• Government is easy
Convergence Is Here
• The coming together or merging of:
– Jurisdictions
– Industries
– Companies
– Tools and technologies
– Products and devices
– Professions and skills
– Jobs
• The viral spread of IT across and
within industries and elements of life
Analog: Standardization
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Nut, screws and bolts
Rails
Electricity
Auto tires
Paper
Plumbing and lumber
Drove the greatest expansion of
human productive capacity in
history
Digital: Standardization
• Data (XML bodies are active in
every industry)
• Networks (IP everything)
• Software interface (Web Services
and SOA)
• Storage (the one file holy grail)
• Processing (grids and virtualization)
• And the effect will be as large…
Concierge Government
Step On the GAAS, This Is
Where We Are Going
Government As A Service
Public Developers
Private Developers
Domestic, Global, and
Open Source
Domestic, Global, and
Open Source
Object Market
Functional and Software Lego Bricks
Concierge Layer
Customer
Agents
Government
Integrated Into
Other Software
Personalized and Automated Human, Software, and Hardware Services and Services
Web Services
Bit
Niche
Function Industry
One
Stop
Gove
rnme
nt
Cross-Industry
Subject Matter Expert Layer
Subject and Industry Specific Human, Software, and Hardware Services
Public Entities
Both
Public Only
Both
Private Only
For-Profit Entities
Public
Only
Both
Public
Only
Non-Profit Entities and Associations
Private
Only
Domestic and Global Economy of Scale Layer
Common, Interchangeable, and Customizable Software and Hardware Services
Objects: The Force Is With Them
• They surround us, support us, and
bind the universe together…
• The number of producers is
growing dramatically
• The tools of production are being
democratized
• The interface is moving up another
level of abstraction (WYSIWYG
Programming)
Layer One: Scale
• If it is what most everyone needs
• You will use it or broker it but not run
it
• The primary change is with the
provider (CTO gets an A—
Acquisition)
• The near term management
challenge is getting out of providing
and into brokering
Layer Two: Subject Matter
• SME Layer lies in between the
layer that does something for most
everyone and the layer that does
everything for you.
• Comprised of expert people and
expert software, hardware and
systems that are unique to
government in their kind or
methods.
Layer Two: Subject Matter
• Can be very narrow or wide — from a
bit or niche on one hand to cover an
entire subject like heath care or cross
boundary functions like benefits, case
management, training, and business
intelligence and analysis on the other.
• Environmental compliance, public
safety, justice, zoning, taxes, and
Medicaid management and myriad
other governmental functions, services
and processes all occupy this layer.
Layer Three: Concierge Service
• Historical definition:
–Concierge n. The hotel staff member
who assists guests by providing
information and specialized services.
• A concierge listens to your needs,
interprets how to meet them,
interfaces with others for you and
delivers a result
• They make life simple
Layer Three: Concierge Service
• If the concierge knows you, then your
needs can be anticipated and results
delivered without having to ask
• What is envisioned here is exactly that:
personalized and automated human,
software and hardware services that
– Deliver government to its citizens and
customers
– Without having to be asked (in most
cases)
Layer Three: Concierge Service
• Government has a limited, reasonably
sized universe of laws, rules,
interactions, data and processes that
can be mastered by machine
intelligence and managed by caring
people who deal with exceptions as
needed.
• This makes the work of having a onestop concierge take care of all your
interactions with government feasible.
Layer Three: Concierge Service
• Automated and invisible service
• Will that be cheaper?
• Is that a trick question?
Customer Agents: You Know Them
• Any function of government not requiring
the physical presence of the citizen
can/is/will be done by a customer agent
• Government customer agents are people,
professionals, software, and services that
do government for us
• Accountants and lawyers are old school
• Turbo Tax, Kelly, NAIC (Insurance
Commissioners), permitting agents, and
many others are working
Customer Agents
We are the first company in the world to
successfully convert disparate data from
multiple states and put it into a
seamlessly integrated web-based
application. Through this web site
regulated businesses and individuals
can complete a multitude of compliance
activities with one... two... twenty... or
more states in only a fraction of the time
they used to spend filling out and
mailing paper forms...at a fraction of the
cost.
http://www.kellysolutions.com
Customer Agents
With today’s tools, Intuit, H&R
Block and others have reverse
engineered one of the most arcane
and artful areas of government — the
tax code — and turned it into
an automated service.
Customer Agents
You’ll find everything you need to make sales and use
tax compliance as painless as possible, from the
latest, most accurate tax information and tax forms
through integrated software tools that optimize how
quickly and easily you put that data to work. Our sales
and use tax research team has acknowledged
industry experts. They’re spending all day, every day,
making calls and combing through regulations to
ensure the CCH sales and use tax data bases are the
most accurate, the most comprehensive, and the most
up to date. We’re doing it so you don’t have to.
Customer Agents
“…to meet the regulatory requirements of
medical device, pharmaceutical, biotechnology
and similar FDA-regulated manufacturers. Our
customer list includes some of the best-known
healthcare companies in the world. NetRegulus
professionals understand the complexities of
FDA regulated industries. NetRegulus can help
you turn regulatory data management into a
strategic advantage.”
Customer Agents
OpenPages develops enterprise compliance
management solutions that streamline knowledgeintensive processes to improve corporate
accountability and reduce disclosure process cost.
They have over 170 major corporate clients. The
company’s portfolio of applications includes SOX
Express, which automates the corporate financial
reporting and disclosure compliance requirements of
Sections 404 and 302 of the 2002 Sarbanes-Oxley
Act.
Customer Agents
Trusted by more than 4,000 clients,
Bridger Insight is the most widely used
PATRIOT Act*, BSA and OFAC**
compliance software for comprehensive
watch list screening, identity verification
and due diligence research.
Customer Agents
Compliance-25 ProVersion 3.0 will increase your Gross Profit on every
inspection because it takes care of many of the laborious tasks associated
with inspections. There will be no more time consuming preparation of
inspection forms, Compliance-25 generates the forms for you. The forms
that are ready to be completed are then downloaded to an easy-to-use
Palm™ handheld computer. Your inspectors can quickly complete the forms,
using a set of standard answers, and move to their next inspection. Palm™
handheld computers can store forms for multiple properties so your
inspectors do not have to return to the office until they have completed their
assigned inspections. Compliance-25 ProVersion 3.0 is a state-of-the-art
forms generation program that contains the NFPA-25 and NFPA-72 code
standards for Inspection, Testing, and Maintenance of Fire Suppression and
Alarm Systems. Compliance-25 is not restricted to the NFPA 25 & 72 codes.
Virtually any code standard can be added to Compliance-25.
Customer Agents
What’s required is a compliance case management server that accepts all
suspect transactions, incorporates data from other sources, quickly
incorporates process changes or new business logic, automates the
handling of the routine suspect transactions, facilitates manual processes
and provides overall case management.
The technology platform is the TigerLogic XML Data Management Server
(XDMS), which interfaces to all data sources and handles multiple data
schemas that can either be defined upfront or in real time. Data with new
schemas are always accepted and mapped into the data model. TigerLogic
XDMS is built on the Pick Universal Data Model (Pick UDM), a flexible selfdefining data model and high performance streaming and indexing engine
that is 10x to 150x faster than RDBMS for XML data.
Customer Agents
GIFTSWEB products include the world's most comprehensive
anti-money laundering & OFAC, e-banking, and customer
relationship management solutions. Our various products have
extensive functionality to meet the regulatory requirements of
the U.S. Department of the Treasury, Office of Foreign Asset &
Control (OFAC), The Federal Reserve Bank, and The USA
Patriot Act of 2001.
The GIFTS family of products are regularly enhanced to meet
the changing regulatory, operational and business needs of our
clients. These financial institutions provide much of the impetus
for improvements to the various GIFTS products. Our staff has
both the financial background and technical expertise that
allows us to understand our client's total environment. We
provide the highest level of support, including 24 hour
coverage.
Customer Agent Hybrids
LexisNexis® Teams with Compliance 360 to Offer
Total Compliance Solution
World’s leading compliance content aggregator will
market solution to corporate legal departments
“Every business is governed by thousands of rules
and regulations that are changing constantly and
every one of those changes has the ability to
negatively impact the corporate compliance program.
Not only do managers have to stay on top of all the
data, they also have to take action to keep changes
from creating noncompliance,” says Steve McGraw,
Compliance 360 chief executive officer. “Having the
ability to track those changes through LexisNexis and
then easily integrate updates into their enterprise
governance, risk and compliance management
solution for immediate action can improve compliance
and reduce risk of fines and other liabilities.”
Surplus Property: Chain of Custody
• On the Surface…Property Room—Today’s law
enforcement agencies have property rooms full of
stolen or forfeited goods. The rightful owners are
not easily identified, and once property is no longer
needed as evidence, it must be disposed of
properly.
• Founded and managed by former police officers,
Property Room harnesses the power of the Internet
to quickly move items out of police property rooms,
reduce personnel costs and generate revenue well
beyond traditional police auction methods. and
there is no cost to the participating police or sheriffs
department.
Surplus Property: Chain of Custody
• Under the covers…Truition—an
eCommerce platform for enterprises
and high-volume auction sellers,
from inventory management,
marketplace launching and order
management, to customer checkout
and returns management. Includes
own branded web store and auction
marketplace.
Customer Agent Helpers
HCCA exists to champion
ethical practice and
compliance standards and
to provide the necessary
resources for ethics and
compliance professionals
and others who share
these principles.
Government Examples
•
•
•
•
•
FDIC
Comptroller of the Currency
Federal Reserve
EPA
San Diego County
Customer Agents Future Shock
My Prediction
• Data that flows to government is being
standardized and within 10 years all data flows to
government will be standardized or will be easily
transformed to the government accepted format
• Government modules are becoming standard parts
of software
• The transaction side of government will be
eliminated within 20 years and replaced by
customer agents in the form of software and
private sector services and systems
Steps to GAAS UP
• Consolidate (across boundaries
and industries)
• Broker (think “Plastics…”)
• Standardize (what and how)
• Automate (no human can…)
• Innovate (no machine used
to…)
Steps to GAAS UP
• Document rules (rules are
made to be coded)
• Virtualize (it happens
somewhere…)
• Eliminate processes and
systems (clean your plate!)
• Re-deploy resources
(harvest)
7 X 7 of Government
1. Economic, Business, Community, and Workforce Development
2. Environment & Natural Resources
3. Education, Training, Arts & Culture
4. Finance
5. Transportation & Infrastructure
6. Public Safety (Corrections, Prevention, Emergency Management, Defense)
7. Health (Health, Medicaid, Medicare, Workers Compensation, etc.) and Human
Services (Agencies, Institutions, Unemployment, and Non-Health Benefits)
1. Law Enforcement (Civil, Criminal, Corrections, Inspections, Regulation,
Appeals, Revocations)
2. Licensing (Licenses, Permits, and Permissions)
3. Disbursement (Benefits, Grants, Payments, and Loans)
4. Revenue (Taxes, Fees, Debts, and Financing)
5. Customer Service (Call Centers, Information, Intake, Help, etc.)
6. Administrative Services (IT, Facilities, Personnel, Contracts, etc)
7. Service Delivery & Consulting
What We Name It Now
• Health, Human, and Social Services
• (Unemployment, Workers Compensation,
Workforce, Job, and Training Services
• Public Works, Transportation, and
Infrastructure
• Education
• Judicial Branch, Courts, Magistrates, Judges,
and Clerks of Courts
• Corrections, Jails, Parole, Probation, Prisons,
Community and Juvenile Corrections
• Police, Fire, Sheriff, Constable, State Patrol,
Crime Labs, Dispatch/911, and State Criminal
Investigation
• Prosecutors and State, County, District, City
Attorney, and Attorney General
What We Name It Now
• Tax, Revenue, Assessor, and Treasurer
• Consumer Protection, Ombudsman, Advocate,
Inspections, Fraud, Audit, Comptroller,
Controller and Oversight
• Zoning, Permitting, Community Development,
Planning, and Land Use
• Recorder, Registrar of Deeds, Register of
Corporations and Names, and Lien Filings
• Administration, General Services, Purchasing,
Human Resources, and Information
Technology Economic or Community
Development
• Natural Resources, Environment, Agriculture,
Forestry, Parks, and Recreation
• Arts, Culture, Museums, Events, and History
Government Sub-functions
• Example: Law Enforcement
– Investigation
– Prosecution
– Criminal Cases
– Corrections
– Parole or probation
– Rehabilitation and Treatment
– Civil Cases
– Regulation
– Monitoring (e.g. OSHA)
– Audits
Abstracted
Government
Components
and Functions
Investigation X
Prosecution
Criminal Cases
Corrections
Parole or probation
Rehabilitation and Treatment X
Civil Cases
Regulation X
Monitoring (e.g. OSHA) X
Audits X
Professional Licensure X
Activity Licenses (driving,
hunting, etc.)
Permits X
Registration of things
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Mapping What Government Does
Functional Area
Law Enforcement
X
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Licensing, Registration,
and Recording
X
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Two Branches of the New Government
• Both the Executive and Legislative
must change
• They need to align money and
governance with functions and
outcomes, not old line department
and committee names and turf
• This is the hardest of all to grasp,
accept, and implement—and the
fastest way to better government
Realizing Value: The Obvious
High Value
New Process
Leap and
Reap
Rapidly
Current Process
Low Value
High Cost
Low Cost
Government Failure to Precipitate
High Value
New Process
Creep and Weep
Over a Much
Longer Time
Keep the Old
Process But Do
Less of It
Current Process
Current Process
Low Value
High Cost
Low Cost
Leveraging Technological and
Political Power
Select
Industry or
Government
Function
Scope
Industry
Segment or
Government
Function
Work With:
• Business and Industry Associations
• Industry Solutions Vendors
• Federal, State, and Local Governments
• Customer Agents
• Industry XML and Data Standards
Bodies
Customer Agents
Private Industry Solutions,
Systems, Services, and
Software Modules
Identify
Forms and
Paperwork
Processes
Within
Segment or
Function
Harmonize and Reduce
Determine Core Data Elements
and Business Rules
Select Forms
and
Processes to
Be Addressed
Harmonize Data Elements and
Business Rules; Coordinate With
Industry Standards
Finalize and Publish XML
Schema for Data Elements,
Business Rules, and Presentation
Formats
Publish Data
Routing
Processes
Create
Harmonized
Forms
Agency Processing,
Applications,
Databases, and Legacy
Systems
Conclusions and Lessons
Learned
Leading Change Is Not for
Wimps—You Have to Ask and
Answer Some Tough
Questions
Excellence Accelerators
• Success depends on more than
running an efficient, optimized IT shop
• Business process change, a change
methodology, and resources (Six
Sigma, etc.)
• WIIFM answers
• External pressures, internal needs
• Leadership, leadership, leadership
• Borrowing shamelessly
• Follow the technology and the money
4 Show Me’s About Resistance
• Show me the law
• Show me the rule
• Show me the policy
• Show me the court case
• Then show yourself out while
I get to work…
4 Questions, Different Answers
• To whom do I report?
• With whom do I work?
• Where, if at all, do I sit?
• What needs to be done
today?
5 Process Improvement Truths
• The process is broken—really
• Process exceptions, not
expectations
• Subscribe, present, presume, and
get permission to give personal
service
• Let the consumer of the service
own the PII data for service
purposes
• Always give choices and their cost
The Concierge and Real Control
• Resources are limited
• The public wants results and real
customer service at a bargain price
The Concierge and Real Control
• Sovereignty and local control are
NOT about data, machines, and
software
• Outstanding citizen service,
satisfaction, quality of life, and
productivity mean control of what
really matters
• Are you the concierge?
Richard J. H. Varn | Senior Fellow
CENTER
FOR
DIGITAL
GOVERNMENT
rjmvarn@msn.com
515.255-3650
www.centerdigitalgov.com
100 Blue Ravine Road
Folsom, CA 95630
© 2005 Center for Digital Government. All Rights Reserved. Quote with Attribution Only
Questions and Answers