Best Practices Exchange 2014 Conference Montgomery, Alabama

November 19, 2014

Doug Robinson, Executive DirectorNational Association of State Chief Information Officers (NASCIO)

Under the Digital Dome: State IT Priorities, Trends and

Perspectives

National association representing state chief information officers and information technology executives from the states, territories and D.C.

Founded in 1969 – we’re a legacy system

NASCIO's mission is to foster government excellence through quality business practices, information management, and technology policy.

About NASCIO

Today’s State IT Landscape

Fiscal recovery and IT budgets: CIOs still seeking IT operational cost savings, consolidation, innovations

Cybersecurity threats! New risks, governance is hard, funding inadequate

Transition: systems-centric to technology as a service

Project management, alternative sourcing options

Continuing IT workforce retirements, skills gap, recruiting challenges

Focus on SMAC stack: social, mobile, analytics, cloud

5. How would you characterize your IT budget this fiscal year? (State Government Only)

20%

16%

40%

24% A. Increased by 10% or moreB. FlatC. Reduced by up to 10% or lessD. What budget?

What percentage of your state IT workforce is eligible for retirement in the next year? (State Government Only)

25%

8%

17%

33%

17% A. 10%

B. 20%

C. 30%

D. 40%

E. More than 40%

9. How do you most often fill your skill gaps in your IT workforce? (State Government Only)

19%

0%

16%

60%

5% A. Hire using competitive salaries/benefitsB. Contract outC. Train from withinD. Use volunteersE. We simply can’t fill the gaps

View from the State CIOs

Charting the Course

Driving the Enterprise Imperative

Balancing Legacy and Innovation

1. Security2. Cloud Services3. Consolidation/Optimization4. Broadband/Wireless Connectivity5. Budget and Cost Control6. Human Resources/Talent Management7. Strategic IT Planning8. Mobile Services/Mobility/Enterprise Mobility9. Disaster Recovery/Business Continuity 10. Customer Relationship Management

Top Ten: State CIO Priorities for 2015

Priority Technologies, Applications and Tools for 2015

1. Cloud Solutions: software as a service 2. Legacy Application Modernization/Renovation 3. Mobile Workforce: technologies and solutions 4. Business Intelligence (BI) and Business Analytics (BA) 5. Disaster Recovery / Business Continuity 6. Security Enhancement Tools: continuous diagnostic monitoring (CDM)7. Virtualization: servers, desktop, storage, applications, data center 8. Data Management: Master Client Index / Master Data Management9. Enterprise Resource Planning (ERP) 10. Networking (voice and data communications, unified)

© Grant Thornton LLP. All rights reserved.

CIOs seeking enterprise approaches and solutions - governance

Outsourcing and the use of shared services models increasing

Cybersecurity requires governance and investment

Consolidation and cloud services growing

Dissatisfied with IT procurement

© Grant Thornton LLP. All rights reserved.

Planning and Oversight of Large, Critical ProjectsSourcingManaging Data as a Strategic AssetConsolidationMobilityCloud ServicesPublic Safety BroadbandCybersecurityDronesInnovation

2014 State CIO Survey

Planning and Oversight of Large, Critical Projects

Source: Charting the Course, 2014 State CIO Survey

Source: Charting the Course, 2014 State CIO Survey

NASCIO Recommendations for Improving IT Project Management

Develop governance framework, enterprise policies, processes and thresholds for project initiation and approval

Establish an enterprise project management office (PMO)

Institute project status ratings and scorecard to monitor and assess health of major projects: transparency

Require quality assurance oversight and independent verification and validation (IV&V) services for major projects

Design (or source) and deliver IT project management training

Are CIO’s satisfied? What are CIO’s doing to improve IT procurement?

• Partnering and collaborating with the state procurement office• Leveraging consortium procurements & enterprise agreements• Changing approval limits for more expedited purchases• Moving the IT procurement function to the CIO’s office

Source: 2013 State CIO Survey NASCIO/TechAmerica/Grant Thornton

State CIOs and IT Procurement

11%

40%43%

6%

Very dissatisfied

Somewhat dissatisfied

Satisfied

Very satisfied

Charting the Course: Business Models and Sourcing are Changing

What business models and sourcing strategies does your state CIO organization currently use?

2014 2013

Owns and operates all state IT assets and operations 37% 29%

Owns and operates multiple data centers 58% 65%

Owns and operates a consolidated data center 65% 57%

Outsources some of its IT infrastructure operations 46% 51%

Outsources some of its IT application and services 81% 69%

Uses a managed services model for some or all IT operations 60% 65%

Uses an IT shared services model for some or all IT operations 70% 73%

Source: Charting the Course, 2014 State CIO Survey

Sourcing in Next Three Years?

Source: Charting the Course, NASCIO State CIO Survey, September 2014

NASCIO Recommendations for Improving IT Procurement

If permissible, remove unlimited liability clauses in state terms and conditions

Recognizing the forces of change, introduce more flexible terms and conditions

Don’t require performance bonds from vendors

Leverage enterprise architecture for improved IT procurement

Implement rules for using competitive negotiations to facilitate “give-and-take” between buyer and seller

Adopt a “license” rather than a acquisition approach to vendor’s intellectual property (IP) and work product

State Governments at Risk! States are attractive targets – data!

More aggressive threats – organized crime, unorganized crime, hacktivism

Data and critical infrastructure protection

Lack of broad executive support

Governance and authority lacking

Emerging IT - data on the move

Need more training, awareness

October 2014

State Governments at Risk: Time to move forward

23

Key Themes from the 2014 Study

Maturing role of the CISO

Budget-strategy disconnect

Cyber complexity challenge

Talent crisis

2014 Deloitte-NASCIO Cybersecurity Study

Consolidation: A Key Strategy for Years To address budget issues and control operational costs

Facilities: reducing data centers, equipment, operational costs

Enterprise services: networks, email, telecommunications, imaging, wireless

Server consolidation: reducing footprint, operations, security impact, backup/recovery

Applications: enterprise, similar business functions

IT personnel and staffing

What is the Status of IT Consolidation?

Source: Charting the Course, 2014 State CIO Survey

The Forces of Change: Cloud Services

Cost savings and efficiency Flexibility and scalability Rapid provisioning Measured service Better data security

Cloud services as an example Move from systems-centric to services-centric Shift spend from O&M to new services Support collaboration, transparency, insight

Forces of Change: Technology as a Service

This trend is disrupting the traditional notions of state IT. It has serious implications for state budgeting, procurement, business processes, project and portfolio management.

Cloud Services

What is your state's status regarding cloud services?

2013 2014

The state is already highly invested in cloud services 6% 20%

The state has some applications in the cloud and is considering others 68% 73%

The state is still investigating cloud services 22% 6%

The state has considered cloud services but has rejected it 2% 0%

Other 2% 2%

Source: 2013 and 2014 State CIO Survey

What categories of services have you migrated ordo you plan to migrate to the Cloud? (select all that apply)E-mail and collaboration 64%Storage 48%Geographic Information Systems 48%Disaster recovery 44%

Program/business applications (e.g., licensing, unemployment insurance, workers' comp, etc.) 42%

Office productivity software (e.g., word processing) 37%Digital archives/electronic records 31%Citizen relationship management 25%Open data 25%Enterprise Resource Planning 23%Imaging 15%Other 15%

Source: 2013 State CIO Survey NASCIO/TechAmerica/Grant Thornton

8. In the next 1-2 years do you plan to move any of your core systems to the cloud (State Government Only)

39%37%11%2%11% A. No, can’t get past security concerns

B. No, can’t get past the human resources implicationsC. No, can’t get past procurement terms and conditionsD. Yes, assuming the budget and ROI get approvedE. Yes, no turning back now

Mobility

Source: 2014 State CIO Survey, NASCIO/TechAmerica/Grant Thornton

Source: 2014 State CIO Survey, NASCIO/TechAmerica/Grant Thornton

Government Data LandscapeData stored across multiple systems from multiple agencies in multiple formats

Data quality issues: dirty and messy

Lack of standards, consistency

Data sharing is difficult – format, language, access, culture, myths

Security concerns and privacy issues

Little insightful, usable data on “customers”

Major Changes in State Data

Structured

Unstructured

Semi-structured

Sources and Format Changing Dramatically

Managing Data as a Strategic Asset

How would you characterize your data management function in terms of importance and maturity?

We have a long way to go to develop an enterprise view of data and governance of that data as a state asset. 26.9%

We have made some progress in developing an operating discipline for managing data.

53.9%

We have a formal data management discipline that includes governance, roles and responsibilities, and tools. 9.6%

We have a formal data management discipline that includes governance, roles and responsibilities, and tools. We are now moving toward data as an enterprise asset.

9.6%

Source: Charting the Course, 2014 State CIO Survey

Source: Charting the Course, 2014 State CIO Survey

Big Data

Volume

Velocity

VarietyComplexity

Variability

Characteristics of Big Data

Status of Big Data in the States

State Open Data: Museum to Marketplace

Source: Charting the Course, 2014 State CIO Survey

1. My department/agency uses open data to provide quality services for external customers (i.e. citizens, business, etc.). Government Only

5%25%38%18%13% A. We are totally there!

B. We are on the road and there is not a speed limit…C. We are on the road but the speed limit is 5 MPHD. We found the road but haven’t started the journey…E. We can’t find the road, even with GPS…

4. Which one of the following is the best possible outcome as a result of Open Data? (All – choose only one)

15%26%26%28%1%1%3% A. Contribute to new mobile apps

B. News media consumptionC. Balanced scorecardsD. Improved data-driven decisionsE. Ultimately improve government effectivenessF. Leads to improved citizen engagementG. Improves trust among citizens

Source: Charting the Course, 2014 State CIO Survey

Enterprise Data Management

Ask the Magic 8-Ball…

Continued cybersecurity threats, data

breaches

More SMAC,

Public and multi-tenant cloud

Focus on project and

portfolio management

discipline

Innovation in IT workforce

strategies

Data governance,

managing data as an

asset

Progress on digital identity

Evolving funding

models for state IT

drobinson@nascio.org@NASCIO

Questions?