Transcript Slide 1

Paper Cuts and Digital Plusses
Richard J. H. Varn
Senior Fellow
© 2005 Center for Digital Government. All Rights Reserved. Quote with Attribution Only
Reality Government
First, a Bit of Background
Where We Are in the
Digital Revolution
The Basics: Inherent IT Objectives
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Implement new or improved systems
Trade labor for capital
Re-engineer processes
Achieve efficiencies
Do more with equal or less
Improve service
Balance budgets
Fulfill strategic objectives (sometimes
known as campaign promises)
• Change everything without a shared
understanding of the scope or a finance
plan for the transition
Climbing PK’s Ladder: P.I.T. I.T.
•
•
•
•
•
•
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Publish
Interact
We are
hung
up
in
Transact
the middle
Integrate
of here
Transform
Technical challenges are mostly gone
Now the if you have the money, the
will, and the need, you can do it
Government As A Service
Step On the GAAS, This Is
Where We Are Going
Mapping Government As A Service
Public Developers
Private Developers
Domestic, Global, and
Open Source
Domestic, Global, and
Open Source
Object Market
Functional and Software Lego Bricks
Concierge Layer
Customer
Agents
Government
Integrated Into
Other Software
Personalized and Automated Human, Software, and Hardware Services and Services
Web Services
Bit
Niche
Function Industry
One
Stop
Gove
rnme
nt
Cross-Industry
Subject Matter Expert Layer
Subject and Industry Specific Human, Software, and Hardware Services
Public Entities
Both
Public Only
Both
Private Only
For-Profit Entities
Public
Only
Both
Public
Only
Non-Profit Entities and Associations
Private
Only
Domestic and Global Economy of Scale Layer
Common, Interchangeable, and Customizable Software and Hardware Services
What Is Causing This?
And Why We Are Going
There Whether We Want to
or Not
The Layered Outlook
Breaking beyond the layers of traditional IT stack
Tying Multiple Enterprises Together at the Edges
RELATIONSHIP
EXPERIENCE
TRANSACTIONS
APPLICATIONS
CLASSIC IT FUNCTION
BUSINESS PROCESSES
SECURITY/ IDENTITY MANAGEMENT
NETWORK
INFRASTRUCTURE
PLATFORM
ARCHITECTURE
© 2005 Center for Digital Government. All Rights Reserved. Quote with Attribution Only
COMMON NETWORK:
Mission and Money Imbalance
Mission
Money$$$
Bennie Eats World
• Medicaid
–Represents now 22% of state
spending
–Will consume over 75% of new state
revenue in ten states by 2009
–Will exceed Social Security by 2024
Long-Term Fiscal Austerity
• Massive growth in costs and
spending
• Revenue system deficiencies
• Starve government strategy
• Economic competition and global
economy undermining US tax base
Realizing Value: The Obvious
High Value
New Process
Leap and
Reap
Rapidly
Current Process
Low Value
High Cost
Low Cost
Government Failure to Precipitate
High Value
New Process
Creep and Weep
Over a Much
Longer Time
Keep the Old
Process But Do
Less of It
Current Process
Current Process
Low Value
High Cost
Low Cost
The New Platform for Governing
The Top 4 Characteristics of Digital Heavy Lifting
1. WHAT? Building a New Platform for Governing
Requires an Architectural View:
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
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
Imaging
eForms
Records, Web Content and Document Management
Collaboration
Business Process Management (BPM1) and
Business Performance Management (BPM2)
 Online Forms & Offline Portals (Mobility)
2. WHY? To Meet
Government’s Current
Needs for:
3. WHEN? And Nimbly and
Robustly Respond to the
Next New Thing:
4. HOW? Because the
Primary Workload of
Government:
 Efficiency
 Effectiveness, and
 Accountability


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Moving Money, and
Moving Permissions
in the Delivery of
Vital Public Services …
Mad Cow and Upset Chicken
E-Health Care
Exploited & Missing Children
(and Tomorrow’s Headline)
in Real Time …
is more readily done in
a Bit-based World than
Atom-based World
Computer Power
• Power and performance of computers
continue to double every 12 months
• The pace of change continues to accelerate
• 100 years happens in 20 at the current rate*
• Use to ubiquity
• Art to commodity
• Centralized to distributed
• Distinctive to disposable
• Peripheral to integral
*Ray Kurzweil
Computer Tipping Point
• Computers reach the speed of 20
quadrillion instructions per second, equal to
the human brain
– In accordance with Moore's law, we expected
to reach the computational capacity of the
human brain---20 million billion neuron
connection calculations per second (100 billion
neurons times an average of 1,000 connections
to other neurons times 200 calculations per
second per connection) in a super computer by
2010 and in a standard personal computer---by
the year 2020
Ray Kurzweil
Kurweil’s Vision
• By the year 2040, in accordance with
Moore's law, your state-of-the-art personal
computer will be able to simulate a society
of 10,000 human brains, each of which
would be operating at a speed 10,000 times
faster than a human brain.
• Or, alternatively, it could implement a single
mind with 10,000 times the memory capacity
of a human brain and 100 million times the
speed.
Modeling Government: Easy
• Modeling complex systems:
–Data
–Rules
–Processes
–Outcomes
• Weather, oceans, markets, seismic
events, genomes, diseases, and
the cosmos are hard
• Government is easy
Layer Three: Concierge Service
• Government has a limited, reasonably
sized universe of laws, rules,
interactions, data and processes that
can be mastered by machine
intelligence and managed by caring
people who deal with exceptions as
needed.
• This makes the work of having a onestop concierge take care of all your
interactions with government feasible.
Convergence Is Here
• The coming together or merging of:
– Jurisdictions
– Industries
– Companies
– Tools and technologies
– Products and devices
– Professions and skills
– Jobs
• The viral spread of IT across and
within industries and elements of life
What Done Looks Like
Layers of Trust and Technology in Intergovernmental Collaboration
GOVERNANCE:
Incentives for Collaboration
MULTI ENTERPRISE - HORIZONTAL
MULTI ENTERPRISE - VERTICAL
Build IT Once
TAX & REVENUE
CITIZENS, TRADING
PARTNERS &
PUBLIC ENTITIES
TRANSPORTATION
COMMON
INTERFACE,
INFORMATION &
TRANSACTIONS
EMPLOYEMENT
APPLICATIONS
BUSINESS PROCESSES
SECURITY/ IDENTITY
INFRASTRUCTURE
PLATFORM
ARCHITECTURE
PUBLIC HEALTH
Tying Multiple Enterprises Together at the Edges
PUBLIC SAFETY
COMMON TECHNOLOGY
COMMON NETWORK:
HUMAN SERVICES
CONSOLIDATION:
ENVIRONMENT
FUNDING:
Respecting Data Sovereignty
GLOBAL
NATIONAL
REGIONAL
STATE
COUNTY
CITY
TRIBAL
Low Hanging Fruit and Things
Worth Doing
Maximize Your ROI and Make
Your Job Indispensable AND
Interesting
Low Hanging Fruit
• Pooling and sharing
• E-forms
–Bar codes for data capture
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Print management
100% E after intake
Work flow
Digital signatures and Real ID
Forms Are Amazing Things
• Most every government
transaction starts and ends
with a form
Forms Are Amazing Things
• They are shorthand repositories
of our
–Rules
–Experiences
–Processes
–Workflow
–Lessons learned well and lessons
learned poorly
Forms Are a Keystone of Change
• Data, business rules, and
business processes are
contained in or are driven by our
forms
• E-forms and printing bar codes of
the data entered on the form
change the way we work and
have substantial ROI
E-Forms Functional Summary
Forms
Engines
to:
“COUNT”
•Submit
Data
First
Form
Citizens
Extract
Data
“COUNT”
Businesses
First
Form
Apply
Business
Rules
Validate
Sign
Submit
“COUNT”
Customer
Agents
First
Form
Route
A
u
t
h
e
n
t
i
c
a
t
i
o
n
•Apply
Business
Rules
•Sign
•Submit
Data to
Agencies
to:
• Accept
•Share
•Route
•Reuse
Data
Analysis,
Sharing,
and
Public
Access
•Query
Direct
Data
Transfers
•Manage
•Safeguard
Privacy
Forms Are a Keystone of Change
• To change government:
–Reform it (should not take more than
a century)
–Starve it (currently getting a try)
–Change the forms and the rest of
government will mirror how we
changed the forms
Potential Savings From E-Forms
Billions Can Be Saved…or Wasted
• If we continue as we are, the cost to citizens and
government could go UP as we tend to keep all the
paper based processes and build redundant
infrastructure to automate bad paper processes
• Secure E-forms can result in cost savings of over
90% over manual processing if they are done right
Cost Per Form
Paper Form E-Form Savings
Printing & Storage
$15
$1
$14
Filling, processing & keying $145
$5
$140
Cost per completed form
$6
$154
$160
Print Management Returns
• In a 2003 IDC study
of eight mid- to
large-sized
organizations that
had successfully
optimized and
implemented a
balanced
deployment of
printing devices,
they found average
cost savings of 23
percent
PIT Old VS New
Expenditure
Supplies
Impact of newer technology
Lower costs by more than one cent
per page
Energy
An ENERGY STAR qualified
multifunction device (MFD) can
save about $220 in electricity bills
over its lifetime
Document delivery (10
US Mail (3-5 days): $61.00
Fed Ex (1 day): $196.00
Fax (hours): $144.00
PC-Fax (1 hour): $127.00
E-MAIL (5 minutes): $1.78
copies of 42 pages to 10 locations)
Support costs
Reduced by 40 percent
Printer-related help desk
calls
Reduced by 52 percent
Step 1: Document the True Cost
• Equipment costs, including:
– Acquisition costs (buy or lease)
– Additional memory, disk space, input trays and print
servers you choose to add to the device
– Software
– Consumables such as paper, toner, ink cartridges and
maintenance kits
– Facilities costs pertaining to the physical space devices
occupy such as rent, electricity, heating and cooling
and insurance
– Support costs, including annual service visits and
technical support contracts
– Training
Step 1: Document the True Cost
• Productivity costs including:
– Time spent retrieving copies from printers, copiers and
fax machines
– Time spent clearing paper jams, resending faxes and
performing other troubleshooting tasks
– Time spent changing cartridges and performing routine
maintenance tasks
– Time lost working with difficult-to-use devices
– Time spent duplicating, collating and binding
documents
– Time spent walking from one device to another to copy
printed or faxed document
– Time lost due to device downtime
– Time spent managing outside printing vendors for
special needs
Step 1: Document the True Cost
• Distribution costs including:
–Process expenditures (experts have
noted that the average document is
copied either electronically or
physically more than ten times at a
cost of almost $20)
–Print-related security expenses
including software and training
Step 1: Document the True Cost
• Document storage costs including:
–Filing (experts say a document costs
about $20 to file)
–Retrieval (retrieving a misfiled
document can cost as much as
$120)
Integrated Eligibility Now
• Expectations
–This is the way the world works
–Government should work this way
• Integration—not just possible, but
feasible
–More mature industry + egovernment
–Service Oriented Architecture (SOA)
Right Help, Time, Price
• Coordinating:
–Intake and approval processes
–The matching of the client needs to
the programs and personnel
Right Help, Time, Price
• Speed intake, processing, and
initiation of delivery
Right Help, Time, Price
• Reduce the cost of intake
–Lower overhead
–Increased automation
–Distribution of the intake process and
some self-service and data reuse as
allowed
Integrated Eligibility
Issues and Obstacles
Three P’s and a T
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People
Policies
Processes
Tools
People
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•
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Turf
Retraining
Restructured jobs
Team building
Collaboration
Reward structure
People
• Management across boundaries
• “Adhocracy”
–Serving the client drives the work
force, the resources, and the
management processes
• Move from rote task to knowledge
work
Policies
• How money is appropriated and
co-mingling issues
• Data sharing
• Intergovernmental agreements
• Incentives/disincentives
• Restructuring the organization to
reflect integration
Processes
• Who does what and when?
• What can be automated?
• Eliminate extra or unneeded steps
and redundant data
• Coordinated workflow and
handoffs to trigger delivery,
fulfillment, enrollment, resources,
etc.
Tools
•
•
•
•
Forms and intelligent documents
Portability
Multi-channel
Multi-platform
Tools
• Repeatable
• Rapid Application Development
(RAD)
• Data
–FFFSST data management (Field,
File, Folder, System, Segment,
Table) on who can see, use, and
change data
–XML and other data standards
Tools
•
•
•
•
•
•
Security
SOA
Routing and workflow
Legacy system interface
Integration
Extraction, translation, and loading
(ETL)
Building Your Case Management
Case
Causes, Effects, and Key
Questions
Information Is Not Shared or Available In a
Timely Manner
• Effects:
– No decision or a poor decision
– Corrode confidence
• Key questions to ask:
– Are decisions made with all the relevant
information available to the case manager
– How much time do case managers spend
finding and assembling information?
Information Is Not Accurate or Up To Date
• Effects:
– Decision making is impaired or flawed
– Case manager cannot rely on the information
• Key questions to ask:
– How much time does your staff spend verifying
information and documents to make sure they
are accurate and up to date
– Would using a common format for electronic
documents makes it easier and more cost
effective to manage information electronically?
Case Information Is Siloed In Multiple
Systems
• Effects:
– Case manager spends time integrating /
aligning information from multiple systems –
lost effectiveness
– Paper-intensive processes and stove-piped
systems are inefficient
• Key questions to ask:
– How many different systems are your case
managers authorized to access?
– Is there a common interface to systems?
– Is info duplicated in multiple systems?
Processes Are Manual and Error Prone
• Effects:
– Poor case outcome
– Increased training time
– Greater risk of funding loss or bad outcome
• Key questions to ask:
– Are case outcome, organization funding and
credibility tied to how well case managers
follow policy and procedures?
– Does your organization need to manage case
related documentation & materials according to
specific policies and guidelines and what is the
penalty for not doing so?
Management Does Not Have Insight Into
Case Load Or Status
• Effects:
– Cannot assess workload or assign resources
accurately
– Waste time manually gathering information
• Key questions to ask:
– Are management and status reports generated
manually or automatically?
– How much time does your staff currently
spending assembling those reports?
– Does your team feel they have an up-to date
understanding of current workloads?
Paper Based Information Is Copied Or
Manually Keyed Into Systems
• Effects:
– Information is lost or misplaced
– Data entry errors
– Requires staff time to copy
• Key questions to ask:
– What percentage of your case information is
shared by manually making copies?
– What percentage of documents are manually
reentered into electronic systems?
Case Managers and Teams Share
Information Manually
• Effects:
– Information is not shared or available for
collaboration
– Team members are working at cross purposes
based on different assumptions and information
• Key questions to ask:
– Who are all the people involved in the
exchange of case related information?
– How much of that information required by that
extended team is shared?
– How timely is the information exchange
between the team members?
Security and Privacy Are Not Managed At
the Document or File Level
• Effects:
– Unintentional or deliberate sharing of restricted
information undermines efforts and destroys
credibility
• Key questions to ask:
– Is the case information governed by security,
privacy or management policies?
– How do you ensure that those policies can be
enforced at the electronic document level ?
– What if the documents are outside your
firewalls or if someone inadvertently emails
them?
Reports, Notifications and Alerts Are
Created Manually
• Effects:
– Requires large amount of staff time
– Potential for late, inaccurate or incomplete
reports
– Lag time between important events and
notification of managers and team members
• Key questions to ask:
– How are reports, notifications and alerts to the
extended team created or propagated today?
– How long does it take for a notification of a high
priority event or exception to reach all
stakeholders?
Case Information Must Be Analyzed
Manually
• Effects:
– Analysis is based on incomplete information
– Events, patterns, fraud, threats, noncompliance, etc. are not detected
• Key questions to ask:
– Does your work process or reporting require
analysis of process or content?
– How well does your current approach surface
fraud, patterns that might influence case
outcomes?
Richard J. H. Varn | Senior Fellow
CENTER
FOR
DIGITAL
GOVERNMENT
[email protected]
515.255-3650
www.centerdigitalgov.com
100 Blue Ravine Road
Folsom, CA 95630
© 2005 Center for Digital Government. All Rights Reserved. Quote with Attribution Only
Questions and Answers