Transcript IBV Cloud Industry POV Template

Cloud Government
Point of View
IBM Institute for Business Value
Partner’s Name, Partner’s Title
DD Month YYYY
© 2014 IBM Corporation
Executive summary
 Cloud computing provides significant opportunity for Governments to address increasing
challenges in IT governance
 Governments are leveraging cloud’s capabilities to create diverse stakeholder ecosystems
and enable value realization by all
 Governments around the world are embracing cloud and realizing significant benefits
through innovative and enhanced citizen services, improved internal efficiencies and
reduced costs
 Security, privacy and compliance concerns are being managed through a set of processes
and controls thus making cloud computing a secure, compliant and cost effective IT
services delivery model
 Governments must adopt a structured approach to implementing cloud services to minimize
disruptions to ongoing citizen services and internal operations
2
IBM Institute for Business Value
© 2014 IBM Corporation
1
Cloud will
transform the
function of
governments
2
Cloud is enabling
changes in
governmental
model
3
IBM can help
3
IBM Institute for Business Value
© 2014 IBM Corporation
Transformative technologies are disrupting industries
Mobile revolution
Connectivity, access and
participation are growing
rapidly
Transformational cloud – Cloud’s attributes make it a
powerful delivery model delivering new business models,
cost benefits, flexibility and large on-demand capacity
Gmail, Facebook, Linkedin are pioneer
examples of cloud computing with
advertisement based revenue and cloud’s low
cost delivery model sustaining free services
Social media explosion
Quickly becoming the primary
communication &
collaboration format
Ecosystem of connected health and wellness
apps that delivers a consolidated view of users’
health. Strong & growing ecosystem with APIs
and Apps that cover all aspects of health care 1
Hyper digitization
Digital content is produced
and accessed more quickly
than ever before
The Xerox Mobile Print platform uses cloud to
convert and process print requests.
This removes complexity from end-users,
reduces costs & management of diverse
devices and print configurations
The power of analytics
Real time analysis, predictive
analytics and microsegmentation emerging
Source: Joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders
4
IBM Institute for Business Value
© 2014 IBM Corporation
Governments are being hit by multiple disruptive global shifts –
urbanization, aging populations and structure of the global economy
Number of Catastrophic Events, 1970 – 20131
High competition for residents
and businesses
Increase of dependency ratio
Change in citizen demands
2014 GDP Growth decline2
Increase in catastrophic events
Unstable economic conditions
Source: [1] Swiss Re. 2014. Natural catastrophes and man-made disasters in 2013: large
losses from floods and hail; Haiyan hits the Philippines. Sigma Study, No 1/2014.; [2]
http://www.imf.org/external/Pubs/ft/weo/2014/01/pdf/text.pdf
5
IBM Institute for Business Value
© 2014 IBM Corporation
Governments are struggling to maintain economic vitality – with
fiscal pressures, changing expectations and the need for resiliency
$973bil
projected US Federal
Budget deficit in 20141
20%
decrease in the UK
available funds for
social services
forecasted by 20202
35%
of the overall global
workforce was
considered mobile at
the end of 20133
$140bil
of economic loss
globally due to
disasters in 20134
Source: [1] http://www.usgovernmentrevenue.com/federal_budget_estimate_vs_actual_2013_XXbs1n_G0; [2] http://www.local.gov.uk/c/document_library/get_file?uuid=00468d7b-06304917-bebd-ed1336f102ad&groupId=10171; [3] http://www.telegraph.co.uk/health/nhs/10395138/Foreign-patients-cost-NHS-2bn-a-year.html; [4]
http://www.swissre.com/media/news_releases/nr_20140326_sigma_insured_losses_in_2013.html
6
IBM Institute for Business Value
© 2014 IBM Corporation
As they advance along their transformational journey, government
leaders focus on four key imperatives
Improve Government
Health and Social
Programs
Grow Sustainable
Economies
Strengthen National
Security & Public
Safety
Protect the
environment and
improve resilience
Support the public’s
health and welfare with
personalized services
Improve fiscal
management and
revenue collection
Optimize intelligence
and national defense
support functions,
protect borders and
create safer
communities
Improve performance
and resilience of
critical infrastructure
and ensure the
sustainability of vital
resources
Cloud technology provides the means to meet economic
challenges to drive towards new growth
Sources: http://www-935.ibm.com/industries/government/
7
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud computing accelerates the drivers of economic vitality for
governments
Talent and Business
 Stand as the two primary pillars of
economic development
 Developed through attraction,
creation, use, growth, and retention
 Enhanced and facilitated by the
innovation and adoption of technology
Long-term sustainable economic development is shaped by the value created by
both people and businesses
8
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud is a competitive asset that expands economic potential,
promoting agility, security, efficiency and cost control
Cloud computing is a pay-per-use
consumption and delivery model
that enables real-time delivery of
configurable computing resources
Cloud empowers 6 benefits for governments
Speed, agility, and scalability
Cloud’s essential
characteristics
Broad
Network
Access
Security rich and highly
available
Improved Efficiency
Rapid
Elasticity
Cost optimized
On-demand
self service
Measured
service
Masked complexity
Resource Pooling
Ecosystem connectivity
Source: NIST, IBM IBV Power of cloud study
9
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud offers governments three main services to leverage in their
transformations
Software as a service
(SaaS)
What it is:
Cloud-based applications run
on “computers in the cloud”
that are owned/operated by
others and connect to users
via Internet/web browser
Benefits:
 Eliminates need to purchase,
install, update, and maintain
software
 Ability to dynamically scale to
usage needs
 Faster to implement and
more flexible
 Includes benefits from PaaS
and Iaas as well
10
Platform as a service
(PaaS)
What it is:
Cloud-based environment
with everything required to
support the complete
lifecycle of building and
delivering web-based
applications
Benefits:
 Eliminates the cost and
complexity of buying and
managing the underlying
hardware, software,
provisioning and hosting
IBM Institute for Business Value
Infrastructure as a
service (IaaS)
What it is:
Provides organizations with
computing resources
including servers,
networking, storage and data
center space
Benefits:
 Eliminates the cost of
investing in hardware, its
maintenance and upgrades
 Enables an on demand, payas-you-go model
© 2014 IBM Corporation
Cloud redefines the possibilities for governments
Cloud allows governments to
control costs
German Pension Fund Baden-Württemberg
gained faster access to its pension records by
99% with no increase in costs1
Cloud improves efficiencies
for citizen-centric services
Spanish province reduces costs and frees
resources through IBM Cloud implementation.
Cost savings and assets were able to be
invested in other areas to benefit citizens2
Cloud provides opportunities
for governments to transform
themselves
An agency in India uses IBM Cloud and Spoken
Web technology to better reach rural areas and
match citizens with employers and training to
drive job growth3
Source:[1} http:// http://public.dhe.ibm.com/common/ssi/ecm/en/zsc03177wwen/ZSC03177WWEN.PDF [2] http://www.ibm.com/cloud-computing/files/Government_Cloud_Infographic.pdf
[3] https://w3-03.sso.ibm.com/sales/support/ShowDoc.wss?docid=0CRDD-8GLEMB&appname=w3skm#SolutionSynopsis
11
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud can drive significant transformation to create value and
promote sustainability
EFFICIENT
ORGANIZATION
 Simple and faster
processes drive internal
efficiency
 Cost savings through the
consolidation of back office
operations
 IT capacity can be readily
aligned to roadmap of
future
12
NEW REVENUE
STREAM
ECOSYSTEM
ENABLEMENT
 Agencies can provide
services to other
government entities or
local businesses
 Third-party services can be
extended into government
ecosystem and consume
API
 Regional clouds can
reduce need for
standalone systems
 Open collaboration and
sharing can be expanded
 Value-added services can
be introduced
IBM Institute for Business Value
 Innovation can be
introduced across
systemically
© 2014 IBM Corporation
A Government ecosystem allows organizations or individuals to
consume value created by others or deliver value to others
Government API in ProgrammableWeb
600
Citizen
Citizen
500
NGO
400
Employee
Business
Government
300
200
100
0
2005
Government
Employee
2006
2007
2008
2009
APIs Added
2010
2011
2012
2013
Cumulative
 An ecosystem enables interaction with numerous
varied entities through
• Information sharing
• Application Programming Interfaces (API)
exposing functionality from back-end systems
 In the Asia-Pacific region, one national postal
service created a citizen identity authentication
API which it allows other government agencies
to use as they create their own citizen-facing
applications
 Government agencies can collaborate around a
single integrated view of citizens to deliver social
programs or physical assets to more efficiently
manage transit systems
 IBM is helping a European environment and rural
affairs agency develop an ecosystem through
APIs that other agencies as well as citizens can
tap the value created
Source: [1] ProgrammableWeb website, accessed June 2014; http://www.programmableweb.com/apis/directory
13
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud can drive significant value creation and competitive
advantage
EFFICIENT
ORGANIZATION
72%
cost
reduction1
U.S. General Services
Administration optimizes cost
structure
Through adoption of a cloud based solution, fixed licensing
costs are eliminated and
scalability is improved while
downtime is reduced
NEW REVENUE
STREAM
Added a new method to
conduct business2
Australian Maritime Safety
Authority adds a new channel
Adding a cloud based system
allowed people to interact
with AMSA on mobile
devices, opening a new
revenue stream
ECOSYSTEM
ENABLEMENT
382
local authorities
collaborate3
Department for Work and
Pensions gains a platform to
communicate
Switching to a cloud based
enterprise system allows
information to be shared
among stakeholders quickly
and efficiently
Source: [1] “State of Public Sector Cloud Computing,” May 20, 2010, CIO Council;[2] http://www.communications.gov.au/digital_economy/cloud_computing ;
[3]https://ccs.cabinetoffice.gov.uk/sites/default/files/Department%20for%20Work%20and%20Pensions%20Case%20Study.pdf
14
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud can drive significant value creation and competitive
advantage
EFFICIENT
ORGANIZATION
£100k
in savings
annually1
NEW REVENUE
STREAM
Added ability to tap into
new revenue2
ECOSYSTEM
ENABLEMENT
1.1mn
students
linked3
UK Department of Energy &
Climate Change streamlines
organization
City of Wuxi in China built a
computing center with IBM
Cloud
New York City connects its
students, teachers and
parents
By integrating cloud-based
smart energy readers and
shared meeting spaces,
DECC eliminates waste and
increases productivity
New center in municipal
research campus allowed the
city to generate money from
providing low-cost enterprise
applications to small
companies
The Department of Education
chose a cloud-based solution
that links 1600 schools to
allow collaboration and
communication while still
saving $5 million dollars
annually
Source: See speaker notes
15
IBM Institute for Business Value
© 2014 IBM Corporation
1
Cloud will
transform the
function of
governments
2
Cloud is enabling
changes in
governmental
model
3
IBM can help
16
IBM Institute for Business Value
© 2014 IBM Corporation
Five key steps to advance cloud adoption
1
Create Cloud
strategy,
architecture
and plans
Determine the
organization goals,
platform requirements
& complexity
associated
Develop enterprise
cloud strategy, options
available and roadmap
Envision the cloud
architecture that will
support cloud initiatives
Update IT Strategy and
IT plans to align them
with cloud strategy
2
Identify and
prioritize
workloads
3
Determine
cloud
deployment
options
4
Develop Cloud
business case
Define business drivers
to prioritize use cases
for cloud
Define multi-sourcing
models and cloud
vendor selection criteria
Develop cloud cost
models including
transition
Implement a
CloudFirst strategy to
evaluate right blend of
cloud options for new
projects
Assess and determine
how to best leverage
the options of private,
public and hybrid
delivery models
Finalize a cloud
business case and
examine its ROI
including time required
for initial payback
Assess and evaluate
from the current
applications, the best
candidates for cloud
Develop Cloud Service
Catalog, SLAs and
KPIs
5
Prepare for
implementation
Prepare infrastructure
for cloud
Develop
 Cloud Risk
Management plan
and policies
 Security and
Compliance plan and
processes
 Transition plan
including workforce
transition
Assess impact on
operating model;
identify and plan
changes required
Determine the
applications to be
moved to cloud
Cloud planning should result in accelerated migration, quick wins and mitigated risks
Note: The above shows an overall plan and will include aspects of workload prioritization and migration discussed in other slides
17
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud strategy comprises four elements
Strategy
1
2
3
4
5
APPLICATION AND
DELIVERY PLATFORMS
BUSINESS MODELS
ENABLED BY CLOUD
Driving agility and productivity
for the enterprise; tested
strategies to improve life cycle
performance
Promoting highly competitive
initiatives at the enterprise
and Industry level
INFRASTRUCTURE
PLATFORMS
Enterprise
Cloud
Strategy
Instantiating well-integrated
business intelligence to
manage the enterprise
Delivering consumable,
secure and readily available
resources to enable agile
execution
18
DATA PLATFORMS
IBM Institute for Business Value
© 2014 IBM Corporation
Enterprise innovation is realized by integrating new technologies
with existing core systems
Strategy
1
2
3
4
5
Systems of insight
Advanced analytics and cognitive computing
systems that harness big data enabling competitive
advantage for organizations
Systems of
Insight
Enterprise
Innovation
Systems of
Record
Systems of
Engagement
Enabled by Cloud
Security
19
Systems of engagement
Leverage mobile and social to transform
relationships with customers, employees & citizens
Systems of record
The traditional core systems such as accounting
applications and product systems that record key
internal data
Pervasive Security Intelligence
A dynamic approach to threat reduction through a
life cycle of prevention, detection and response
Cloud enables leaders to take a systematic
approach to integrate these capabilities to drive
enterprise innovation
IBM Institute for Business Value
© 2014 IBM Corporation
Organizations should evaluate born-on-the-cloud solutions while assessing
existing applications for migration to cloud
Prioritization
Enterprise Cloud Adoption
1
2
3
4
Cloud First
5
New
project
New
project
Replace
existing
app / infra
BPaaS
PaaS
SaaS
IaaS
Business
case
Migrate existing
workloads
Select
Prioritize
Workload
analysis
20
Evaluate a blend of cloud options
that best suit the project
requirements
IBM Institute for Business Value
Quantify
Migrate
Migration Plan
Wave 1
Wave 2
Wave 3
© 2014 IBM Corporation
A decision framework with identified criteria helps in prioritizing migration to
cloud
Prioritization
2
3
4
5
High
1
Infrastructure
compute
Dev/Test
BUSINESS VALUE
Infrastructure
storage
Analytics
Collaboration
Industry
applications
Business
Services
Workload migration
categories
Migration
plan
MORE READY FOR
CLOUD
WAVE 1
MAY BE READY FOR
CLOUD
WAVE 2
NOT READY FOR
CLOUD
WAVE 3
Desktop/
devices
Security
Low
Managed
backup
DEPLOYMENT EASE
Low
High
Note: The above is an indicative prioritization shown for typical workloads
21
IBM Institute for Business Value
© 2014 IBM Corporation
A phased migration to cloud helps manage risks
Prioritization
1
2
3
4
5
Potential migration risks
 Incorrect analysis and identification of
workloads
Phased migration approach
Discovery Phase
Analysis Phase
 Inability to meet non-functional
requirements
Discover
Analyze
 Incorrect ROI analysis
 current assets
and usage
 cloud feature /
fit
 topologies &
dependencies
 cloud providers
 Inadequate preparation of infrastructure
/ apps for cloud
 Complex applications’ interoperability &
integration
 platforms and
licenses
 Failure to comply with security, privacy
& regulatory requirements
 SLA’s, security
& compliance
 Management complexity as resources
get distributed in a virtualized
environment
22
Migration &
Validation Phase
Establish the
Migration Toolkit
Cloud-enable
infrastructure &
applications
 contract
models
Migrate
 resource sizing
 Applications,
Platforms and
Data
 workloads
 Infrastructure
 Operations
Services
Validate
Migration
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud services and deployment options enable governments to
adopt cloud to align with drivers of economic vitality
Deployment
1
2
3
4
5
Private cloud
Hybrid cloud
Public cloud
Value drivers …
Customization, self service –
reduced IT expense, efficiency,
availability, resiliency, security
and privacy; can expand into a
"community" cloud bringing
private cloud benefits to groups
of organizations
Value drivers …
Leverage the benefits of
private and public cloud while
addressing data security,
governance, compliance and
budgetary challenges
Value drivers …
Standardization, capital
preservation, self service –
reduced IT expense, flexibility
and time to deploy
Real world example
Real world example
Real world example
 Asset ManagementVästerbotten County Council 1
 Coordinate job searchLatin American municipal
labor deptartment4
 Intelligent Transportation- New
Jersey Turnpike Authority 5
 Data Management- Chinese
Academy of Sciences²
 Citizen Interactions- State
government in Brazil³
23
 Disaster Management- City in
northeast Japan6
 Intelligent Operations CenterCity in Europe7
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud has the potential to transform U.S. Federal IT organizations,
making them more agile and better able to control costs
Business Case
1
2
3
4
5
Platform-as-a-Service could cut U.S.
Government application
development costs by $20.5B
Projected reduction in application
development time
3.5 years for
software
application
development
cycle
Reduce cycle time by
31% resulting in a total
cycle time of 2.4 years
After
Before
Cloud computing has potential to reduce
the federal IT budget by 25%
$24B
Cost for
legacy
systems
$56B
Current IT
spending
Total IT
budget
$60B
Cloud
Computing
Source: http://www.meritalk.com/PaaS-or-Play
24
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud provides financial benefits and positive returns over traditional
IT infrastructure across different organizations
Business Case
1
2
3
4
5
State of Wisconsin ‘s Department of Natural
Resources saw a return on their investment of
270% from implementing cloud solutions for
shared meeting and project spaces in the first
year of use1
U.S. Army Experience Center moves to a cloud
environment that permits a 360 degree
community outreach and relationship
management approach
90% reduction
State of Michigan’s Department of IT realized
savings of $228k when migrating only 10% of
enterprise systems to cloud and predicts to
save $1.4M after migrating 60% of systems1
33% gain
Before
Licensing costs
After
Productivity
Source: [1] http://www.workday.com/company/news/benefits_of_the_cloud.php; [2] http://cloud.cio.gov/case-study/dod-us-army-online-experience-center
25
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud allows organizations to shift cost structuring and provide
efficiency benefits
Business Case
1
2
3
4
5
88%
reduction in ownership
costs over 5 years
U.S. Federal Labor Relations Authority replaced its
outdated off the shelf case management software
for a cloud-based Software-as-a-Service solution.
Traditional IT infrastructure
26
…Migration to…
Cloud enabled organization
$273k up front licensing cost
$16.8k annual maintenance cost
$77k annual maintenance cost
No hardware acquisition costs
IBM Institute for Business Value
© 2014 IBM Corporation
Security, privacy and compliance issues can be readily addressed in
cloud
Implementation
1
2
3
4
5
Critical elements to address security, privacy and
compliance concerns
 Where is our data stored? What about data
sovereignty?
 How do we protect our citizens’ privacy?
 How does cloud affect our regulatory
compliance?
GOVERNMENT
ORGANIZATION
As governments start planning to adopt cloud,
key questions come up about their data &
applications:
IT Strategy
Risk
Management
Plan
Monitoring &
Auditing
CLOUD SERVICE
PROVIDER
 Is a business continuity plan available for
cloud?
27
Cloud
requirements
IBM Institute for Business Value
Cloud SLA
Risk & Security
Management
processes
Physical &
Logical controls
implementation
Audits & reports
© 2014 IBM Corporation
Cloud serves as a way strike a balance between security needs and
organizational goals, leading to its promotion by governments
Implementation
1
2
3
4
5
Governments are concerned with the
security of their information and data…
…while still promoting and easing the
implementation of cloud
United States- Federal Information
Security Management Act (FISMA)
United States - Cloud First Policy
Australia- Protective Security Policy
Framework (PSPF)
Australia - National Cloud Computing
Strategy
United Kingdom – HMG Security Policy
Framework
United Kingdom – CloudStore….. UK
Government’s approved cloud services
European Union- General Data
Protection Regulation
European Union - Cloud-for-Europe
(C4E)
Governments around the world are encouraging organizations to leverage cloud to
drive transformation and operational efficiency
Source: http://www.ibm.com/cloud-computing/social/us/en/security/
28
IBM Institute for Business Value
© 2014 IBM Corporation
Governments worldwide have their own unique requirements for
data residency and local content
Implementation
1
2
3
4
5
Governments have geographically-defined data residency requirements
Implies a thrust towards
private clouds
 Offers a complete yet selfcontained cloud ecosystem
 Allows governments to
choose where their
protected data and
information is stored
according to their
preferences
 Full spectrum of government
use cases, via vendor and
partner application catalog
Source: http://www.ciphercloud.com/2013/05/10/the-cloud-is-inevitable-observations-from-infosecurity-2013-in-london/
29
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud security solutions span all security domains - people, data,
applications and infrastructure
Implementation
1
2
3
4
5
 Managing identities and single sign-on access
across multiple cloud services
 Protecting and monitoring access to shared
databases
 Scanning cloud-deployed web applications for
the latest vulnerabilities
 Defending cloud users and workloads from
sophisticated network attacks
 Providing endpoint and patch management of
virtualized machines for security compliance
 Increasing the visibility and auditing of cloud
activity within multi-tenant environments
Source: [1} http://www-07.ibm.com/au/cloud2014/pdf/Safeguarding_the_cloud_with_IBM_Security_solutions.pdf
30
IBM Institute for Business Value
© 2014 IBM Corporation
Impact of cloud is enabling governments to evolve a new operating
model aligned to recalibrated processes
Implementation
1
2
3
4
5
 An operating model is a framework for
formulating an operations strategy – explicit
choices about the best deployment of
organization’s elements to achieve the
strategic goals
BUSINESS GOALS AND STRATEGY
Target
Operating
Model
Sourcing &
Alliances
Assets &
Locations
 Changing citizen demands necessitates
governments to adopt new technologies like
cloud, mobile, social media and analytics
 To succeed with cloud, governments have to
assess the impact of cloud on the operating
model and all its dimensions and determine
what actions are required for smooth cloud
adoption
Customer
Experience
CULTURE
Technology
TOM
Skills &
Capabilities
Processes
Organization &
Governance
Performance
Metrics
ROADMAP FOR CHANGE
31
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud will radically transform and improve citizen experiences with
government
Implementation
1
2
3
4
5
1
Robert, a young
Manager in an IT
company, returns home
from traveling overseas
for a project.
When he lands, he is processed in
immigration using a cloud based
biometric system to validate his
identity.
4
Robert checks his email
and finds that his tax
return has been
deposited directly into
his bank account and a
receipt gives a full explanation of the
transactions. He examines it and is
pleased that is 100% accurate.
32
2
3
Shortly after landing, he
realizes he has not yet
filed his taxes and must
do so before the end of
the day. He logs onto
a tax app on his tablet and submits
his tax forms to both the federal and
local governments while waiting for
his ride home to arrive.
5
Robert quickly receives
a notification that his
information has been
received and
processed.
It highlights a possible error in his
filing, discovered using advanced
analytics in cloud software.
6
Robert is then asked to
travel to a nearby city
for a meeting the next
day. He rents a car and
drives to his destination.
His toll fare is collected automatically
and he experiences no traffic delays
because the country has
implemented an auto-pay system.
IBM Institute for Business Value
After the meeting,
Robert and his
coworkers attend a
major sporting event.
They feel safe knowing
that analytics are being utilized to
predict and prevent harmful events
from occurring and agency efforts are
coordinated.
© 2014 IBM Corporation
Efficient sourcing and management of partnerships and alliances
will be major enablers of cloud adoption success
Implementation
Sourcing & Alliances
1
33
2
3
4
5
IMPACT
IMPLICATIONS
 Organizations will have more partners
and alliances through “Services” being
offered by outside organizations
 Procurement and sourcing functions will
need to be automated and have shortened
cycles
 Increase of complexity in service
contracts due to consumption-based
billing
 Vendor and service management will be an
integral part of the Procurement function
 Service quality and availability need
higher focus as they are managed
through relationships and agreements
with diverse third party ecosystem
 Service level agreements to be defined
clearly and governed by the need to secure
and protect citizen data in a shared
environment
 Service adoption to meet benefits
realization needs to be included in the
contracting and negotiating process
IBM Institute for Business Value
© 2014 IBM Corporation
Government officials need to pro-actively redesign business
architecture and processes to leverage benefits of cloud
Implementation
Processes
1
2
3
4
5
IMPACT
IMPLICATIONS
 The cloud strategy and technologies will
require a shift from systems-based
processes to services-based processes
 Traditional legacy processes to be
decommissioned or integrated into the new
cloud-enabled processes
 Cloud’s speed of service delivery
impacts current processes as they need
to match and deliver at the same speed
 Governments will need control over the
continued availability, reliability and utility of
the cloud based processes and the
platforms underpinning them
 Process framework will migrate from
functional silos to an integrated set of
processes spanning organizational
boundaries
 Cloud’s service composition model
provides freedom to engage/disengage
functions as needed
34
 Dynamic processes for billing and allocation
of resources are required to not be an
impediment in achieving value
 Processes to be made simpler and faster
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud computing requires significant changes in design and
governance within organizations
Implementation
Organization & Governance
1
2
3
4
5
IMPACT
IMPLICATIONS
 Major shift in how the new environment
is managed and operated will have
significant impact on the optimum
organizational structure required in the
future
 Organizations will become more flexible,
managing a fluid set of internal / external
resources and service providers
 Governance becomes more centrally
defined with decentralized execution
 Organizations and functions will no
longer be constrained by the physical
location of data centers, hosting
providers and hardware platforms
 Cloud service selection should follow the
overall enterprise cloud governance
standards
 As products and services become more
‘composable’, Governance across the
ecosystem will become critical
 Strong risk management systems are
critical to manage increasing risks arising
out of broader cloud deployment
 Current organization need to evolve
35
•
Organization Design, roles and responsibilities
•
Management systems
IBM Institute for Business Value
© 2014 IBM Corporation
Organizations must rethink their performance management
approach to optimize the value of cloud
Implementation
Performance Metrics
1
2
3
4
5
IMPACT
IMPLICATIONS
 Cloud requires a dynamic financial
model that measures consumption
 Performance management strategy
introduces new levels of complexity in
management reporting
 With the change in business model, new
metrics that measure service availability,
service quality, responsiveness, ability to
change will gain more importance
 Performance metrics are built into third
party and service management contracts for
all vendors delivering the cloud based
service
 Dynamic metrics tied back to SLAs will be
critical for measuring success for cloud
based services
36
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud computing will drive rapid changes in skills and capabilities
within the enterprise workforce
Implementation
Skills & Capabilities
1
2
3
4
5
IMPACT
IMPLICATIONS
 Cloud brings citizen centricity to focus
which makes citizen and service
orientation skills critical within the
organization
 Deeper data analytics and citizen insight
capabilities will be the norm
 Vendor management, contracting and
relationship management skills will be
critical to manage all the vendors and
alliances
 Training of staff on new skills required
related to new and innovative services
 Existing IT and other functional staff will
likely need to be retrained or redeployed
 Legal / operational support skills will be key
to manage partnership agreements
 Skills shift to managing vendor contracts
and relationships of many vendors
37
IBM Institute for Business Value
© 2014 IBM Corporation
Government leaders need to accelerate adoption of emerging
technologies and technical trends to optimize benefits from cloud
Implementation
Technology
1
2
3
4
5
IMPACT
IMPLICATIONS
 The technology function will be leaner
with a more strategic focus rather than
operational
 IT Strategy, Architecture and IT Plans to be
reviewed and updated to reflect changes in
strategy and cloud-enabled future
governments
 Cloud’s big impact on Technology will be
to move on-premise technology
deployment to cloud
 As more services migrate to cloud,
Service Management, IT Vendor
management and IT Quality
management will become key
differentiators
 IT teams need to be retrained and
redeployed
 Budget for the maintenance of legacy
systems may reside, so they need to be
budgeted and worked into the overall costs
 An IT services catalog needs to be dynamic
globally and be applicable for each market
 A DevOps approach will be required to get
the cloud service delivered faster to achieve
value
38
IBM Institute for Business Value
© 2014 IBM Corporation
Organizations will have to reassess location strategies to ensure
optimized and compliant adoption of cloud
Implementation
Assets & Locations
1
39
2
3
4
5
IMPACT
IMPLICATIONS
 Migration to the cloud will require
decommissioning and consolidation of
technology assets
 Decommissioned technology assets may
still book value and impact the existing
operating budget
 Decommissioned assets and locations
will be a factor in the future state
financial model
 One-time financial write-offs will need to be
factored into the overall business case
 Removal of physical / technology assets
will reduce the quantity of needed
remote offices and data centers
 Excess data centers and remote locations
will have to be repurposed or sold / leased
to recoup cost
 Role of branches need to be redefined and
enhanced to provide a much better
customer experience
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud will lead organizations to rethink and rebuild organization
culture to harness enhanced value
Implementation
Culture
1
2
3
4
5
IMPACT
IMPLICATIONS
 The shift to a cloud-based environment
will also require changes in long-held
organizational beliefs and cultural norms
 Need to address perceived loss of control /
potential resistance by existing IT and other
functions whose processes will move to
cloud
 Governments as a whole need serviceorientation, with a shift in mindset toward
valuing the citizen experience above all
else
 Open and collaborative reporting and
management across organizational
functions and units facilitates faster
citizen response
 Need to educate employees on this shift:
•
How will our culture change, and why?
•
What is the risk if we do not make this change?
What would be the consequences of continuing
as is?
•
Requires reinforcement of expected behaviors
through formal and informal mechanisms and
interventions
 Requires changes in
•
Leadership Behaviors
•
People practices
 Regular communications on changes
40
IBM Institute for Business Value
© 2014 IBM Corporation
Louisiana State Analytical and Fusion Exchange prevents crime by
securely gleaning intelligence from social media in real time
This center aids in keeping 4.6 million Louisianan residents safe
CHALLENGE
With only 20 analysts, LA-SAFE needed to support
law enforcement at various levels to detect,
prevent, investigate and respond to criminal and
terrorist activities as well as emergency situations.
As a result, the center looked for ways to improve
and accelerate how it identifies and disseminates
pertinent intelligence to relevant agencies.
SOLUTION
LA-SAFE adopted a cloud-based Software as a
Service social intelligence monitoring and
collaboration solution to detect and analyze words,
phrases and hints in real time, accelerating the
ability to take preemptive or
just-in-time actions against crime and other events
that threaten public safety.
41
Effectiveness – 100% improvement in technical
capabilities to detect and disseminate pertinent
information
Ecosystem Connectivity – More than 350
municipal police departments supported by the
center
IBM Institute for Business Value
© 2014 IBM Corporation
A tax administration agency in South Asia increases revenue
collection by using advanced analytics to reduce fraud and waste
This agency processes 400 million tax returns annually
CHALLENGE
A tax administration agency in South Asia needed
a central tax management system to rapidly and
accurately process tax returns submitted by
employers and other entities that collect income
taxes for the government. It also needed better
insight into tax defaulters’ behaviors and
characteristics.
SOLUTION
The agency is using a cloud-based software
solution that dynamically determines which tax
returns require in depth investigation for fraud.
Advanced analytics help the agency segment and
profile defaulters; predict which groups present the
highest risk; and develop actionable, targeted
compliance strategies.
42
Effectiveness – 100% of tax returns that are filed
are processed quickly and accurately
Speed – 99% faster identification of potential tax
evaders
IBM Institute for Business Value
© 2014 IBM Corporation
The city and county of Honolulu creates a customized cloud to
improve information and service delivery
Honolulu wanted to improve its relationship with its citizens while increasing efficiency
CHALLENGE
The City and County of Honolulu wanted to
increase government transparency and provide
more information, such as the city’s financial data,
to its citizens. Honolulu also wanted to increase
community involvement and improve the efficiency
of its work order system.
SOLUTION
Honolulu deployed an Integrated Facility for Linux
(IFL) engine running Linux on the city’s mainframe.
This provided the necessary platform to provide the
city’s data to citizens, and it enabled the city to
create a custom cloud environment to deploy
applications.
43
Time-to-Market – Reduced time to deploy
applications from 1 week to only hours
Cost Effective – Lowered database licensing costs
by 68 percent
Scalability – Supported a new property tax
appraisal system that increased tax revenue by
$1.4 million in 3 months
IBM Institute for Business Value
© 2014 IBM Corporation
1
Cloud will
transform the
function of
governments
2
Cloud is enabling
changes in
governmental
model
3
IBM can help
44
IBM Institute for Business Value
© 2014 IBM Corporation
IBM is serving the cloud computing imperatives in Governments
Strategize how to use
cloud to drive savings
and revenue growth
45
Build and run your
private or hybrid cloud
Utilize cloud services
delivered from IBM Cloud
Cloud Strategy
and Design
Expert
Integrated
Systems
Business Process
as a Service
Cloud
Implementation
Cloud Platform
Technologies
Software
as a Service
Cloud Migration
Services
Cloud
Infrastructure
Technologies
Platform
as a Service
Cloud Security
Services
Hybrid Cloud
Technologies
Infrastructure
as a Service
IBM Institute for Business Value
© 2014 IBM Corporation
IBM is helping our clients achieve compelling business outcomes,
no matter where the entry point is
BUSINESS PROCESS
SOFTWARE
PLATFORM
INFRASTRUCTURE
as a Service
as a Service
as a Service
as a Service
Automating Business
Innovation
Marketplace of High Value
Consumable Business
Applications
Rapid App Development
through Composable and
Integrated Platform built using
open standards
Enterprise Class, Optimized
Infrastructure built using
open standards
46
Business Process
Marketing
Mobile
Compute
Recruiting
Commerce
Security
Networking
Accounting
Supply Chain
Big Data & Analytics
Storage
Procurement
Talent Management
Development & DevOps
Payment Processing
Analytics
Integration
Help Desk
Collaboration
Integration/ API Mgmt.
IT Management
Traditional Workloads
IBM Institute for Business Value
© 2014 IBM Corporation
IBM cloud marketplace provides easy access to our as-a-service
portfolio
IBM CLOUD MARKETPLACE
Your gateway to cloud innovation
Explore hundreds of IBM and Business Partner services from across the cloud spectrum.
Sign up to offer your cloud services in the marketplace today.
Enterprise — grade business
apps to accelerate innovation
(SaaS)
Powerful services and APIs
via an integrated cloud
platform (PaaS)
Self-service IT
infrastructure configurable
to your needs (IaaS)
Biz
Dev
Ops

Over 200 IBM and Third-Party Software
and Services

Leverage world-class IBM partner ecosystem

Curated solution pages with IBM expertise

Easy access to build, consume, deploy and
purchase services
ibm.com/cloud/marketplace
47
IBM Institute for Business Value
© 2014 IBM Corporation
IBM can support you locally and globally …
IBM Industry Cloud Focal Points
48
IBM Cloud Solutions Point of Contacts
William Timme
Global Defense & Intel Segment Leader
[email protected]
1-703-943-3030
Peter Williams
Distinguished Engineer - Chief
Technology Officer
[email protected]
1-925-648-7975
Mark Cleverley
Public Safety
[email protected]
1-201-608-8213
Beth Brownhill
Distinguished Engineer - S&D Global
Government CTO,
[email protected]
1-713-940-2601
Paul Dommel
Social Programs
[email protected]
1-301-803-2706
Nigel Campbell
North America Cloud Sales
[email protected]
1-720-395-4586
IBM Institute for Business Value
© 2014 IBM Corporation
IBM can support you locally and globally …
IBM Industry Cloud Focal Points
IBM Cloud Solutions Point of Contacts
Curtis Clark
Customs, Immigration and Border
Management & Tax and Revenue
[email protected]
1-919-422-8253
49
Sandipan Sarkar
Executive Architect - Global
Government CoC
[email protected]
91-98302-31038
IBM Institute for Business Value
© 2014 IBM Corporation
IBM can support you locally and globally …
IBM CLOUD CoC ADVISORY LEADERS
[FACE
PIC]
[FACE
PIC]
IBM CLOUD CoC ADVISORY LEADERS
Cindy Warner – Managing Partner
Global Cloud Advisory
[email protected]
313.903.8787
Mike Owens – Associate Partner
Cloud Advisory
[email protected]
951.375.9588
[FACE
PIC]
[FACE
PIC]
Nathan Herber – Associate Partner
Cloud Advisory
[email protected]
916.616.5350
Tedi Wells – Executive Consultant
Cloud Advisory
[email protected]
512.964.7356
IBM CLOUD CATEGORY LEADERS
[FACE
PIC]
50
Becky Carroll – Associate Partner
Cloud Advisory
[email protected]
858.204.6723
IBM Institute for Business Value
Nancy Agosta – Cloud Industry Leader
Cloud Category
[email protected]
919.481.3233
© 2014 IBM Corporation
IBM can support you locally and globally …
IBM Institute for Business Value Contacts
David Zaharchuk
Research Lead, IBM Institute for Business Value
[email protected]
1-703-869-4228
Anthony E Marshall
Global CEO Study Program Director, Strategy and
Analytics Leader, IBM Institute for Business Value
[email protected]
1-720-395-0506
Surendra Ramaiah
Senior Managing Consultant – Strategy & Analytics
[email protected]
971-50900-1372
51
IBM Institute for Business Value
© 2014 IBM Corporation
52
IBM Institute for Business Value
© 2014 IBM Corporation
IBM Institute for Business Value Cloud Government Point of View
Thank You
© 2014 IBM Corporation