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Dynamic Technologies for Smarter Government

KPMG INTERNATIONAL

GOVERNMENT AND IT ADVISORY

Unlocking Knowledge in the Web 2.0 Age

Foreword

In today’s complex global environment, governments are being asked to formulate and implement policy with unprecedented speed and authority. At the same time, the general public increasingly expects greater transparency and accountability from its leaders. To respond appropriately, governments can implement plans to effectively use today’s collaboration

tools, generally referred to as Web 2.0 or Gov 2.0, to improve their quality, speed and responsiveness.

This report offers direction for government in applying Web 2.0 tools using a holistic framework to improve decision-making and increase efficiency and effectiveness. It is aimed at government executives and managers who recognize that these tools can provide the capabilities they need. The material in this report is based on experience gained by KPMG member firm professionals globally who serve government clients and have assisted them in overcoming these challenges.

The objective of Dynamic Technologies for Smarter Government is to provide a starting point for public sector leaders as they evaluate and begin to embrace the new world of social networking, and online interaction and collaboration, that makes up the foundation of Web 2.0. The environment in which governments function continues to change, making dynamic technology an important element of the evolution and future of the public sector.

Mark Forman Services Practice Leader Americas Government IT Advisory KPMG in the US

Keith BannisterUK Head of ITA for Government KPMG in the UK

John Herhalt Global Head of Government Sector KPMG in Canada

Paul Bahnisch Partner in Charge Asia Pacific IT Advisory for Government KPMG in Malaysia

2 DynAMIC TeCHnoLoGIeS For SMArTer GovernMenT

The demands being placed on government in the 21st century are being driven by forces of change that are in many cases beyond its control. ‘Dynamic technologies’ associated with the internet are driving the evolution of information exchange and service delivery and, arguably, may have one of the greatest impacts on government operations.

The business of government relies on information from many sources. Indeed, the public sector’s effectiveness relies on decision-makers having access to real-time information on issues, as well as high-quality insights. While sharing data is a growing trend for today’s government entities, in order to significantly improve government operations, changes should be coupled with new approaches for collaboration about solutions. Information and insights come from the combined activities of multiple agencies, so collaboration can be difficult. The structure, which may not be fully coordinated is often complex with a number of different stakeholders, missions and mandates.

The landscape is changing. Government has the opportunity to embrace these developments and experience the benefits that come from new communications and sharing methods. Web 2.0 or Gov 2.0 technologies, based on social networking and online interaction and collaboration, have the potential to break-down information silos, improve decision-making processes and encourage collaboration.

Based on KPMG’s experience and our assessment of global trends, we believe governments can take advantage of dynamic technologies to:

• Providebetterservicetocitizens

• Improveaccesstoandqualityofdataandinformation

• Understandandmanagerisksbetter

• Improveworkforceknowledgeandcollaboration

• Streamlineorganizationalstructures

• Improveoperatingefficiencyandgovernance

• Addressemergingpolicyneedsmoreeffectively.

This report• Highlightsthechallenges,trendsandbenefitsthesetoolscanprovide

• ProposesaholisticmodelforgovernmenttoimplementWeb2.0to improve quality, speed and responsiveness

• IsbasedontheexperienceandassessmentoftrendsofKPMG’spartnersworldwide

• Providesastartingpointforpublicsectorleadersastheyevaluateandembracethe new world of social networking, and online interaction and collaboration, that make up the foundation of Web 2.0.

executive summary

exeCUTIve SUMMAry 3

6

14

30

10

20

Forces of change

Power to the people

Conclusion

Dynamic technologies — a driving force of change for government

A framework for responding to forces of change

Contents

Forces of change1


History has shown that crises often fuel transformational changes. And never before have governments faced the myriad of challenges occurring today. organizations, both public and private, are becoming increasingly interconnected. Societies have been linked together globally, not only via the internet, but also through transportation,

banking, international trade and communications media. As a result, the impact of events thousands of miles away is felt swiftly and deeply around the world. These developments, many of which are underpinned by IT, are necessitating transformational changes in government.

The global economyWith the globalization of capital markets, economic impacts are often widespread, as the current global economic downturn and liquidity crisis has illustrated. economies, governments and industries are connected around the world and challenges or changes in one area can have far reaching effects.

Government interventionMany governments worldwide have had to respond to economic challenges, through such actions as financial stimulus, more rapidly than ever before. The recent financial markets crisis rocked long-standing public and private sector institutions, leading to calls for dramatic reforms of some industry regulatory regimes.

Push for transparencyGovernment officials are under increasing pressure to provide transparency on operations and decision-making, and be more accountable for how funds are allocated and spent. In the United States, transparency is a centerpiece of the recent US$787 billion economic stimulus package1 and the US administration’s ‘open Government’ initiative.2

The recent

financial markets crisis rocked long-standing public and private sector institutions, leading to calls for dramatic reforms of some industry regulatory regimes.

1 Signing Stimulus, obama Doesn’t rule out More, nyTimes.com, 17 February 20102 White House opens Doors on Major open Government Initiative, Techpresident.com, 21 May 2009

ForCeS oF CHAnGe 7

Citizen-centric governmentThe economic crisis and changing political agendas are pressuring government agencies to be more agile so they can provide more efficient and effective services under tight fiscal constraints. Citizens are demanding a level of customer service that is comparable to what they receive in their commercial interactions. As the most complex enterprises in the world, governments are embracing innovations such as web enablement and Web 2.0 for greater dissemination of information and transparency.

Government workforce demographicsThe generation of citizens and employees now entering the public sector workforce are requesting greater flexibility and tools for doing their jobs. This generation — which has been using social computing platforms for years — expects information to be available immediately and assimilated effectively. It believes in expressing its views through social computing platforms and expects government to provide the medium to enable this collaboration.

SecurityThe events of 9/11 in the US, and subsequent terrorist attacks in Bali, London, Mumbai, Madrid and other cities, made clear some stark realities for national governments. Among these, the critical need for new and better forms of intelligence-gathering and processes to acquire and integrate data from multiple sources and agencies in real-time.

The events of

9/11 in the US, and subsequent terrorist attacks in

Bali, London, Mumbai, Madrid and other cities, made clear some stark realities for national governments. Among these, the critical need for new and better forms of intelligence-gathering and processes to acquire and integrate data from multiple sources and agencies in real-time.


new and emerging crises In the aftermath of earthquakes in Chile, China and Haiti, with traditional communication networks challenged, people used online communities to stay connected. online services have become increasingly prominent as tools to get the news out faster than traditional media, providing timely information sources as well as to reconnect people affected directly or indirectly as the events unfold.3 In the recent mayhem caused by the volcanic eruption in Iceland, where thousands of people were left looking for assistance, social networking sites were used to find alternative travel and accommodations. British Airways posted the latest flight information on Twitter, and a Facebook group called ‘When volcanoes erupt’ worked towards helping stranded passengers.4, 5 The ongoing and increased threat of pandemics (e.g. swine flu) has created a greater need to track, monitor and react to these life-threatening and often time-critical demands for information, knowledge and informed decision-making. The ability of government, researchers and the general public to watch oil flowing via the internet from the British Petroleum (BP) oil well in the Gulf of Mexico enabled unprecedented discussion and helped spur rapid modification of government flow estimates. Transparency and debate will surely occur regularly as crises can now be examined over the internet.

Increased manpower and skills alone are likely to be insufficient to handle these forces effectively. Governments are realizing they need to harness new technology tools to address them, and are evaluating just how to do that.

The ongoing and

increased threat of pandemics (e.g. swine flu) has created a greater need to track, monitor and react to these life-threatening and often time-critical demands for information, knowledge and informed decision-making.

3 Social networking Sites Could Solve Many Communication Problems When Disaster Strikes, Innovationtoronto,com, 18 February 20104 #getmehome: Social media and stranded travellers, bbc.co.uk, 18 April 20105 volcano-stranded travelers seek help in social networks, en.rian.ru, 19 April 2010

ForCeS oF CHAnGe 9

Dynamic technologies—a driving force of change for government2


Technology is integrated into almost every aspect of government. Although increased IT spending is often needed to improve operational performance, governments historically have tended to consider it a discretionary cost and have typically cut IT budgets to address fiscal constraints.

This is no longer the case, and many governments are finding that new technologies are more affordable, enabling greater productivity and efficiency gains. This is why IT spending is now such a significant portion of worldwide government expenditure.6 Indeed, IT is a key component in the administration of nearly every government program. According to the global market intelligence firm, IDC, the total government spending for hardware, software, and IT services in Western europe is expected to increase from US$56.6 billion in 2008 to US$68.5 billion in 2013. Despite the economic recession, spending on IT by the government sector remains relatively stable.7

The impact of Web 2.0 is converging with other long-term societal trends, such as demographic changes, empowered customers, the rise of creative knowledge workers, the importance of informal learning, user-driven innovation, the move from hierarchy to network-based forms of organizations, and the ‘consumerization’ of IT.8

The importance of IT to government will continue to grow in line with spending. IDC projects that global IT and telecommunication spend will increase from US$2.9 trillion in 2008 to US$3.4 trillion in 2012, a rise of more than 18 percent. The objective of IT investments has been to enable government to become more efficient, resulting in lower overall operating costs and greater capacity compared to manual or more traditional operations. Today’s technology investments can also provide governments with new ways to leverage information and address emerging needs.

The objective of

IT investmentshas been to enable government to become more efficient, resulting in lower overall operating costs and greater capacity compared to manual or more traditional operations. Today’s technology investments can also provide governments with new ways to leverage information and address emerging needs.

6 IDC Government Insights Says Government IT Spending in Western europe Will reach $68.6 Billion by 2013, IDC.com, 5 February 20107 IDC Government Insights Says Government IT Spending in Western europe Will reach $68.6 Billion by 2013, IDC.com, 5 February 20108 David osimo, Web 2.0 in Government: Why and How, european Commission Joint research Centre, Institute for Prospective Technological

Studies, 2008, ftp://ftp.jrc.es/pub/eUrdoc/JrC45269.pdf

DynAMIC TeCHnoLoGIeS — A DrIvInG ForCe oF CHAnGe For GovernMenT 11

In the past, IT initiatives focused on automation to reduce costs or increase productivity. Today, technology is no longer being used merely to automate or replicate manual processes and transactions; IT is now playing a key role in driving new operating models, giving rise to a technology-enabled knowledge economy.

A significant change is occurring as a result of Facebook, youTube, Twitter and other social media technologies that people are using to engage in interactions such as sharing data, pictures, insights, problems and solutions. For example, www.GovLoop.com was established by a government employee in 2008 to provide a forum for collaboration on improving government. By 2010, it had grown to a global membership of more than 30,000 people sharing ideas on improving government at all levels.9

9 GovLoop – A nest For Public Sector Workers, Socialmediajam.com, 18 June 2010


Organizational Discontinuity

Technological Discontinuity

Information SocietySense and Respond

1960 1970 1980 1990 2000

Ent

erpr

ise

Perf

orm

ance

2010

PCsOffice automationSingle purpose applications

Micro Era

WAN /LAN/Web 1.0Email/ebusinessClient/ServerSingle purpose applications

Network Era

Industrial SocietyMake and Sell

Society Discontinuity

MainframesFinancial and administrationSpecialized applications

Data Processing Era

Web 2.0, 3.0, +Mass collaborationKnowledge process engineering

Knowledge Tools Trend

SOASaaSCloud computingProcess Automation Focus

Process Integration Trend

Figure 1: IT as a strategic innovation factor

Source: KPMG International, based on an original by nolan norton, 2008

Figure 1 illustrates how the long-term IT trend towards automation has split into the following two distinct branches:

• Continuedautomationandimprovementoftransactionsprocessingthroughprocess integration.

• Collaborativeengagementofindividualswithacombinationofknowledge tools and communications to improve problem-solving and innovation.

DynAMIC TeCHnoLoGIeS — A DrIvInG ForCe oF CHAnGe For GovernMenT 13

Power to the people3


In the 20th century, public sector agencies operated under the specialized ‘expertise’ model of the industrial era. Agencies were often self-contained groups managing business processes and mission activity in a silo. over the past 10 – 15 years, however, the silos have been slowly dissolving as governments increasingly require a shift towards multi-dimensional analysis

and solutions.

The technologies of today’s ‘Knowledge Trend’ will continue to breakdown silos to improve government’s responsiveness and effectiveness. For example, e-Government was initially enabled with Web 1.0 technologies, which allowed citizens access to information and enabled them to perform real-time transactions online. Web 1.0 still remains a key initiative for many governments globally, but now Web 2.0 is rapidly enabling interactions to occur with citizens, as well as interactions and collaboration between government organizations. This is a more comprehensive and cost-effective use of technology-enabled channels and services.

Public interaction is quickly moving to center stage on the public governance agenda and is increasingly recognized as a primary driver for innovation and value creation in both the private and public sectors. Meanwhile, the nature of public service offerings to the business community and the population at large is changing. A good example of this is the emphasis on knowledge-based services, which require a higher degree of interaction and involvement of end-users as active collaborators, rather than passive beneficiaries. Co-design and delivery of policies, programs and services with citizens, businesses and civil society provides the potential to tap a broader reservoir of ideas and innovative solutions.11

10 FreeBalance details how Web 2.0 technologies and social networking improve governments, enterprise innovation, 11 March 201011 Mind the Gap: Fostering open and Inclusive Policy Making, An issues paper, oeCD, 25 January 2008

Government 2.0 is driving transformation in transparency, participation and collaboration.

—Doug Hadden, vice President of Products, FreeBalance10

PoWer To THe PeoPLe 15

Web 2.0 — the collective term for social networking, wikis, blogs and related online environments — along with open-source, mobile technologies and the continued growth in raw computing power, is creating a transformational shift in how people interact with one another. Until recently, content and distribution channels were largely proprietary in nature and under institutional control. With the emergence of Web 2.0 technology, individuals can create, customize and distribute specific information to anyone anywhere. People are engaging in

Power diffused: Power is continuing to be shifted from the organization to the individual; from mass-marketing to mass-customization; from hierarchy-based decisions to ‘expertise’-based problem-solving.

Economic basis fundamentally changed: Traditional business models use an economic model in which information is proprietary. The new economic model of this knowledge era recognizes that information is abundant, open and largely non-proprietary. Information is not scarce. What is scarce is the ability to interpret the information and turn it into insight and new innovative ideas. The rapid pace of consolidation and improvement in tools as well as agile development methods have made traditional periods (2 years from requirements definition to build and implementation) of waiting for implementation obsolete or at least unacceptable.

Transparency and accountability: organizations have traditionally managed risk by controling the content and flow of the information. Today’s environment has displaced that control, and extended it outward, beyond institutional walls, and without boundaries. At the same time, results are transparent for public scrutiny, creating accountability and incentives for good performance.

End-user benefits:

• Greater access — on demand information, when you need it, where you need it and how you need it.

• Greater empowerment — The user can directly mash together or customize applications, information, products and services to meet their requirements.

• Lower costs — With crowdsourcing, open-source and virtualized technology, individuals and groups can experiment quickly and efficiently, and obtain real-time feedback.

What the knowledge trend brings


discussions and collaborating on public policy issues, with better access to information and insights than existed 10 years ago. Although governments and other organizations are at various stages in development and maturity, the growing momentum behind such technologies is a key driving force to empower individuals to share information and communicate with many more people having similar interests.

The societal shift in the way we share information was driven mainly outside of government, but is fast becoming a catalyst for government agencies to reexamine how they interact with citizens and how they manage information. regardless, it can be expected that the shift to Web 2.0 will not occur without some resistance. Macon Phillips, new Media Director at the White House, speaking at the Web 2.0 Summit [September 2009], addressed the challenges and opportunities of Web 2.0 technologies, stating that he was, “Developing directives that deal with a lot of the blanket resistance to new technologies.” He further explained that, “resistance is often rationalized by security concerns that actually stem from long-standing cultural practices of controlling information.”12

Participative web tools are a means to an endSocial networking and collaborative tools — the essence of Web 2.0 — can enable workers to take advantage of the ‘knowledge of the masses’ to solve problems rapidly and effectively.14 And, as governments and other organizations take advantage of collaborative tools to harness the knowledge and productivity of staff, overhead costs can be reduced. Many of these ‘crowd-sourcing’ and ‘collaboration tools’ are also easier and quicker to deploy, cheaper to purchase (or free if open-source) and require little or no training. In addition, they need fewer resources to operate. For example, tools can allow constituents in both the public and private sectors to ‘self-serve,’ choosing and often customizing the information content, presentation format and services that they are interested in. In this environment, users expect to locate and navigate content easily and to complete tasks on their own, such as identifying and comparing government programs.

12 Wyatt Kash, FCW, 10 September 200913 How Web 2.0 has changed the business of government, Federalnewsradio.com, 15 September 2009 14 Knowledge of the Masses? The Weird Priorities of Wikipedia or why Knuckles is Seemingly more Important than God, Blogcampaigning.com,

5 July 2008

Web 2.0 and social networking tools are changing the way the federal government does business.

— Dorothy Ramienski, Federal news radio13


These trends are changing the cost structure around IT development, deployment and operations. not surprisingly, organizations that are heavily invested in yesterday’s single-purpose applications of the micro and network eras are dealing with varying complexities, which may lead to barriers to being able to rapidly take advantage of knowledge and process integration tools.

Today’s automation is about process integrationThe advances in automation are providing many organizations with greater flexibility and agility to leverage data and enable business process integration. Government agencies see this as an opportunity to reduce the costs surrounding IT through switching from buying and maintaining hardware and software to acquiring IT as a virtual service, using new sourcing approaches such as software as a service (SaaS) and cloud computing.15 In october 2009, europe’s first SaaS and cloud services business community was launched to share industry best practices and help in the expansion of business.16 In fact, the US federal government has recently announced a cloud computing initiative that offers

We are movingfrom an ‘Information Era’ to a ‘Knowledge Era’ that is creating new forms of collaboration and operating models.

15 Government agencies implement cloud computing and SaaS IT solutions, edlconsulting.com, 19 February 201016 Mimecast part of establishing eurocloud UK — first ever SaaS and cloud services community, Mimecast.com, 22 october 2009


secure enterprise applications, IT hosting and other IT services at a fraction of the cost of today’s approaches.17 Many government organizations are using outsourcing, commercial off-the-shelf solutions and shared services models instead of mandating each agency to build and maintain often old and redundant applications and solutions. organizations are working to develop Service oriented Architectures (SoA) that can take advantage of shared services and integrate legacy applications and data. This has led to the continuing automation, rationalization, and integration of related transaction processes, such as procurement and finance, which were previously operating as separate business processes. yesterday’s client-server software caused silos that could be replaced by cloud computing platforms (e.g., SaaS solutions) that automate and integrate business processes.

17 White House unveils cloud computing initiative, Cnetnews.com, 15 September 2009


A framework for responding to forces of change4


Given these developments, how can government agencies best take advantage of the new global information environment to address emerging policy and regulatory issues, respond to critical world events and continue to improve operational performance? Many governments are poised to undertake pilot initiatives leveraging

collaboration and new approaches. Whereas government agencies in the past may have been able to address policies and programs in an individual manner, this is no longer the case.18

Instead, government leaders are seeking ways to:

• Obtainbetterandmoretimelyinformationtomakemoreinformeddecisions

• Locateandapplythebestpeopleintheirorganizationstoaddresscriticalissues

• Breakdowntraditionalsilostocreatemoreagileand‘open’organizationstobetter provide services to citizens

• Createsocialnetworksthatinterconnectindividualswithintheorganizationbased on common interests, expertise and experience, and allow government to interact in a more meaningful way with citizens

• Providetransparencyaroundspending,managementdecisionsand performance.

To help fulfill these aims, it is critical not to focus solely on the technology, but on how the people in the organization collaborate and interact with each other and use information to help solve problems and make decisions.

Many governments are

poised to undertake pilot initiatives leveraging collaboration and new approaches. Whereas government agencies in the past may have been able to address policies and programs in an individual manner, this is no longer the case.

18 Behind the Curtain by Andrew noyes, [email protected], Government executive 1 April 2009

A FrAMeWorK For reSPonDInG To ForCeS oF CHAnGe 21

Getting the framework rightIn october 2009, the Secretary-General for the organisation for economic Co-operation and Development (oeCD), Angel Gurría, highlighted the need to move forward with a new approach which combines data and analysis to address emerging policy needs and citizen expectations. Speaking on the opening day of the oeCD’s Third World Forum on Statistics, Knowledge and Policy in Busan, Korea, Mr. Gurría said, “We need tools to measure what is transpiring in our society. The gap between macroeconomic evidence and people’s perception does not result from low quality of official statistics, but from their inappropriate use. This can lead to biased analysis and wrong policy targets. We need to go beyond the current measurement system, based on metrics of production, to a system that genuinely focuses on societal well-being and progress.”19

The following framework may be helpful to entities seeking to transition to Gov 2.0.

Develop information governance policy

Leverage and enhance robust infrastructure

Automate and integrate transactional processes

Identify outdated systems

Focus on organizational change management

Pilot solutions iteratively

Find data sources acrossorganizational boundaries

Develop new operational andtechnical support models

Identify transactional and knowledge-based processes Select knowledge processing

tools

Identify end-to-end business processes

Develop common data model

Create Collaboration

Operating Model

ArrangeInfrastructure

RationalizeApplications

Leverage and Adapt

(Culture)

InformationAccess and Use

Figure 2: Framework for transitioning to Gov 2.0

19 Charting progress, building visions, improving life, oeCD.com, 27 october 2009


The framework addresses the challenges faced by governments attempting to apply emerging technologies. It can be used to guide analysis, find the right tools and make the appropriate changes in the organization to help improve processes and decision-making.

The four main components are:

• Creatingacollaborativeoperatingmodel

• Rationalizingapplications

• Arranginginfrastructure

• Leveragingpeopleandculture.

Step 1: Create a collaborative operating modelIdentify the mission critical, broad-ranging business processes that support the vision and strategy of the organization. To take advantage of the collaborative and process integration tools available today, governments should first identify how they are using information across agencies and portfolios.

Within each end-to-end process, identify and extract the transactional and knowledge-based components. Many government processes are transactional and operational, often governed by policy or legislation. And many business processes have, or are in the process of being, automated by breaking them down into sequenced steps or workflows. The traditional role of IT has been to automate these transactions and policy requirements via controls and supposedly improve the cost-effectiveness of any repetitive task. KPMG believes transactional activities, such as bill payment, raising purchase orders and applying for a license, can be re-engineered using methods such as Lean Six Sigma and other controls optimization techniques.

Intellipedia is a wikipedia-style application which provides professionals working across 16 US government intelligence agencies with an aggregated, easily-accessible information source. The breakthrough came when lower-level employees created Intellipedia out of the need to find a rapid, effective way to work together. According to the CIA, on a typical workday, Intellipedia now receives about 5,000 contributions. Former US Director of national Intelligence, Michael McConnell, has described Intellipedia as a tool which, “enable[s] experts from different disciplines to pool their knowledge, form virtual teams, and quickly make complete intelligence assessments.”20

Enter Intellipedia

20 Intellipedia Celebrates Third Anniversary with a Successful Challenge, CIA.gov, 29 April 2009


Decide

Characteristics

Assess options

Identify options

Investigate, gather

information, find experts

Identify and characterize

problems or issues

May involve customer interface

Supports judgment-based decision-making

Requires specialized education or experience

Involves multiple systems or organizations

Structured and unstructured data

Loosely defined flexible process

Cyclical process

Many governments use dashboards or near-real-time reports that provide an operation status by aggregating transactional data and historical data. The recent move towards government transparency, such as the US Federal Funding Accountability and Transparency Act, has made transactional data available via the internet. Internal dashboards and public-facing websites are only as valuable as the data, which must be timely, accurate, relevant and trustworthy.

Beyond transparency and efficiency, government effectiveness today relies on the problem-solving capabilities of its employees. Governments can start to focus on knowledge era tools for improving a broad range of functions, including problem analysis, policy-making, oversight, and decision-making processes. When applying knowledge trend tools, governments have an opportunity to more rapidly and effectively operate if they improve staff use of structured and unstructured data, analytical tools, personal insights and judgment. This will often include adoption of a new government operational model that reflects improved collaboration.

Figure 3: Knowledge processes underlying new government operational model


Examine the knowledge processes to develop new operational and technical models. Moving toward an operational model that better supports knowledge processes will require government organizations to rethink how they currently solve problems and make decisions.

The success of initiatives like this can be traced to the fact that they are supporting knowledge processes with tools that are not transaction based. They are information repositories and collaboration tools that have developed, based on the needs and requirements of the users to solve problems. It is this same evolutionary process that has driven much of the success of internet applications such as Wikipedia, Facebook, Google and Flickr.

The users decide how they want to use the tools, and drive the expansion of the content by adding their data and knowledge to it. This process creates transparency not only of the data, but of the process used to gather and create that data.

An example of citizens using nimble Web 2.0 tools is in the UK where citizens are tapping into social networks to prompt local governments to fix problems. one site, called FixMyStreet.com, lets local residents across the country post digital photos of streets that need repair.

Another example is the HealthMap.org Global Disease Alert Map. HealthMap brings together disparate data sources to achieve a unified and comprehensive view of the current global state of infectious diseases and their effect on human and animal health. This freely-available website integrates disease outbreak data of varying reliability, ranging from news sources (such as Google news) to personal accounts (such as ProMeD) to validated official alerts (such as the World Health organization). Through an automated text processing system, the data is aggregated by disease and displayed by location for user-friendly access to the original alert. HealthMap provides a summary of real-time information on emerging infectious diseases, and is particularly useful for public health officials and international travelers.

A recent european Commission report, Web 2.0 in Government: Why and How concluded that, “To experiment and engage with these applications is not only potentially beneficial, but probably the safest option for government.”21

Citizens embrace Web 2.0

21 Web 2.0 in Government: Why and How?, european Commission, 2008


Step 2: rationalize applicationsIdentify outdated systems and automate/integrate transactional processes, including yesterday’s client-server solutions, segmented business processes, and administrative organizations (such as finance and procurement) that function as operational silos.

In a fast-changing world with ongoing changes in government policies and programs, the ability to modify existing systems in a timely and cost-effective manner is critical. Many long-used systems are not flexible or scalable, and support old operational business models that do not reflect the modern environment of collaboration, information sharing and near-real-time data needs. A key enabler of adaptability and agility is an integrated systems environment that links strategy to budget, budget to capabilities, and capabilities to performance. Integrated business and financial management systems are needed to support this new working environment. We find many agencies managing this change by creating business transformation offices.

Additionally, technologies and design methods like web services and service-oriented architecture (SoA) are reducing the complexity of applications by altering the definition of an application from a package of features or automated business capabilities to a ‘single’ feature or ‘atomic’ business capability.22 With these approaches, it becomes possible to combine several requirements into a single application, flexible enough to meet today’s business needs — and adaptable enough, by easily creating different combinations, to meet the needs of the future.

Select a set of tools to support the knowledge processes. In recent years, business intelligence tools, such as dashboards and decision support systems, have become a valuable resource for organizations trying to address some of governments’ most pressing information challenges, especially transparency and reporting. For example, one challenge is giving a user the ability to find key data at a moment’s notice, without having to wait until a monthly report is issued.

Similarly, Web 2.0 tools have become popular and hold promise for fulfilling knowledge processing needs. However, information overload may result from the provision of real-time data, access to information repositories, search tools and ‘mash-ups.’ People with experience and expertise can help assimilate data, sort out what is important and what is not, find and point to new information sources and interact with other experts. But how do you find the right people?

22 Hon. Danny Werfel, The office of Financial Innovation and Transformation, MeMorAnDUM For CHIeF FInAnCIAL oFFICerS, 30 March 2010


Many of these tools are designed to connect people based on their profile of common purpose, interest and knowledge. Collectively, the tools create a network linking people to information. The content expands as people interact by adding insights and information. These tools create the most value for government when people with relevant knowledge are invited and encouraged to engage, while people with interests and ideas that could be helpful are also encouraged to participate and share ideas and knowledge. To be successful, people within the organization must participate, but these tools are most effective when people outside the organization are also invited into the network.23

Develop enterprise architecture with a common data classification model. enterprise architecture is a key component for long-term benefits in cross-program or cross-agency collaboration. once the services being delivered are well understood within the business structure, organizations can examine new techniques to enhance the automation of those services such as service-oriented architecture (SoA). SoA leverages web services to enable the computer systems of program managers, service providers and clients to talk to each other to support program management and integrated service delivery. Collaborative tools allow virtual organizations to be established that address policy issues and include experts and stakeholders from across the government and outside of it. An enterprise architecture program assists governments in leveraging Web 2.0 tools and technologies to create a greater level of collaboration, facilitate effective and efficient policy development, and help to transform or re-engineer program management and service delivery processes.

Business transformation offices are charged with optimizing end-to-end business processes under an enterprise-wide governance structure. Such initiatives seek to remove redundancies within the existing financial and business systems, harmonize financial and business data, and establish integrated processes. often these business transformation offices initiate a sourcing project to acquire a modern integrated business systems environment. Where governments are using a federated enterprise architecture, business transformation initiatives take advantage of shared services models and government certified configurations of commercial off-the-shelf software packages to automate transactional processes.

Business transformation offices

23 Collaboration Project Advisory Panel, enabling Collaboration: Three Priorities for the new Administration, nATIonAL ACADeMy oF PUBLIC ADMInISTrATIon, 2009.


Step 3: Arrange infrastructureTake advantage of the infrastructure that is in place to support the expanding information needs of demanding users. Web 2.0 tools cannot function without the underlying infrastructure of the internet and intranets. Many governments now have the networking infrastructure in place not only to improve applications and services, but also to reduce costs and improve scalability and reliability. However, many governments have infrastructures built around proprietary and siloed applications and databases. IT as a service, SaaS, virtualization, and cloud computing are becoming popular alternatives.

Develop identity and access management, privacy, and security policies and practices linked to the business strategy. Cyber-security has become a significant issue for governments. While people expect access to information and services, and transparent government activities, they also demand that private data is handled properly. Identity and access management, coupled with privacy and security policies, is vital. The issue today is not just how to restrict access, but also how to ensure the information and people within the organization are trusted and protected from external threats like hackers — and more importantly, ensure that appropriate policies internally are in place around information protection and data loss (i.e. USB keys, CDs, DvDs).

In some cases, public sector organizations favor risk avoidance altogether by refusing to engage in issues of data-sharing, rather than approaching it from the perspective of risk mitigation. However, the pressure on them to provide these capabilities and the associated services will continue to increase.

The oeCD and American Institute of Certified Public Accountants’ frameworks for information security provide a good basis for incorporating privacy into Government 2.0 initiatives.24

24 The major frameworks used for establishing IT controls, Unifiedcompliance.com


Step 4: Leverage cultureOrganizational change management is a key component of implementing any of these innovations. These changes represent a shift in the attitudes of people and how they interact and share information in the internet-enabled world. They imply a willingness to accept some risk in order to collaborate and interact. The future generation of government workers is much more comfortable with collaborative online problem-solving than previous generations, who are often today’s C-level and Managing Director-level employees. Therefore, a mixture of leadership and training activities are often required for success in knowledge era initiatives.

Look across organizational boundaries to find the best sources of data and the best people to support decisions. The decisions made in one silo can impact the processes in another. People may change jobs, but that does not mean they forget what they know or are no longer interested in or do not have access to relevant topics to provide assistance if required.

Implement solutions in an iterative manner using pilots whenever possible. Successful organizations typically plan and implement IT projects by building upon business process improvements that take advantage of technology. They analyze processes, identify improvements and then select technology to implement the change. The business process improvement requirement drives the application of technology, and the organization needs to align with the functionality to achieve the business transformation desired. The technology will drive the development of new processes. With the relatively low cost of most Web 2.0 technologies, setting up pilot projects and testing, which work best for the environment, is a recognized method of choosing the most desirable solution.

In government, there is often resistance to sharing information across organizational boundaries. Web 2.0 tools enable users to control how and when data and information moves through the organization, without disrupting traditional hierarchies. The perceived loss of control may be one of the greatest barriers to transformation.

But in reality, collaboration already occurs. People communicate with colleagues that have moved on. They make new contacts with people who can help them. They share information across organizational boundaries through informal means such as email and phone conversations. The difference is that Web 2.0 tools can provide everyone with more contacts and information to help judge whether they are the right people to help. This change is not a loss of control, but represents the ability to provide more insights into problems and solutions through greater information sharing.

It’s not about losing control


Conclusion

As the world changes, governments will need to improve information management and innovation in problem-solving. otherwise, they will be challenged to find the depth and breadth of knowledge needed to make decisions regarding policy and compliance in tougher, fast-paced and emerging conditions. Many of today’s

public sector agencies have been established on legacy systems that require civil servants to ‘hunt and gather’ the data they need and hope that their search yields information that is accurate, relevant and reliable.

Dynamic technologies can help the public sector improve performance. The integration of information and ideas enhances policy decision-making and can provide significant benefits by enabling organizations to find ways to work better and smarter.

5


Public sector employees are spending time reconciling information and performing transactions that could be performed more cost-effectively and efficiently by today’s IT tools and solutions. In contrast, dynamic technologies such as Web 2.0 collaboration, social networking and business intelligence tools are enabling governments to rapidly deploy new and more efficient operating models.

By employing dynamic technologies to support decisions, government organizations can begin to harness the power of their collective knowledge, and in so doing, lower costs, improve transparency, efficiency, quality of service, and better protect the interests of their citizens.

ConCLUSIon 31

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Designed by evalueserve.

Publication name: Dynamic Technologies for Smarter Government

Publication number: 100610

Publication date: July 2010

Global Head of Government PracticeJohn HerhaltTel +1 416 777 8778 [email protected]

Australia Mick Allworth Tel +61 (2) 6248 1201 [email protected]

CanadaJeff Smith Tel +1 416 777 8409 [email protected]

GermanyUlrich MaasTel +49 30 2068-4888 [email protected]

MalaysiaPaul BahnischTel +60(3) 7721 3388 [email protected]

KPMG Contacts:

NetherlandsGaston VankanTel +3170338 2503 [email protected]

SpainElena Pisonero RuizTel + 34 914563847 [email protected]

United KingdomKeith BannisterTel + 44 20 73116681 [email protected]

United StatesMark FormanTel +1 703 286 8510 [email protected]

Brian A. Smith Tel +1 703 286 8737 [email protected]

Developed with the support of the Government Institutes founded and supported by KPMG.

Public Governance Institute, Germany Public Governance Institute, UK KPMG Government Institute, US

visit the KPMG Government Institute at: http://www.kpmginstitutes.com/government-institute/

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