e-Government Services Foundation Interoperability and the GAP Principles Best practices in Governance, Architecture & Procurement and the link to effective government and economic.
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e-Government Services Foundation Interoperability and the GAP Principles Best practices in Governance, Architecture & Procurement and the link to effective government and economic development Randy Ramusack United Nations Technology & Policy Advisor Microsoft Corporation MICROSOFT CONFIDENTIAL Customers Want Choices Choice Standards Proprietary & Open Source Business Models Interoperability Choice= Innovation and Competition Solutions That Focus on Customer and Market Needs MICROSOFT CONFIDENTIAL People (Technical Interop) Data & Diverse Systems Data Applications Infrastructure MICROSOFT CONFIDENTIAL Law & Policy • Customers control their data • Vendors build bridges between systems Organizational Connecting people, data, and diverse systems Semantic Choice requires Interoperability Interoperability Circa. 1980 Applications Applications Applications Applications OS OS OS OS Computers Computers Computers Computers Processors Processors Processors Processors Storage Storage Storage Storage MICROSOFT CONFIDENTIAL Customer Complexity Today Interoperability more important than ever Client Applications Open Office, Star Office, Microsoft Office, Adobe Photoshop, Symantec, Norton, Firefox, Opera,… Server Applications Jboss, BEA, Zope, WebSphere, JD Edwards, Oracle, SAP, Apache, Microsoft BizTalk, .NET, … Databases IBM, MS, Oracle Operating Systems & Middleware Apple, HP, IBM, MS, Sun Systems Vendors HP, Sun, Fujitsu, IBM, Dell Networking Vendors Cisco, Extreme, Nortel, 3COM, Juniper Processors X86-32, X86-64, Sparc, PPC, IA64 Storage EMC, Dell, Network Appliance, HP MICROSOFT CONFIDENTIAL Software is fundamentally different than physical goods. It is malleable MICROSOFT CONFIDENTIAL Transformability allows choice Government Focus evolution of interoperable services 2006 1998 1990 Multiple interactions with multiple organizations to accomplish a task… One interaction to accomplish a task… Web Portals: Information more exposed to some extent Traditional Interactions MICROSOFT CONFIDENTIAL Web Services: Government organizations become transparent Reasons Feature Is Requested by Customers Government Policy Makers Business & Govt. Customers Promoting innovation & competition Social, political, and economic issues Promoting eGovernment initiatives Flexibility of solutions choice Cost reductions Confidence in solutions Interoperability Consumers IT Industry Increase customer value Creates market opportunities Manages costs MICROSOFT CONFIDENTIAL Choice of Products Ease of Use Value of purchase Roadmap to Interoperability Many Ways to Accomplish • By explicitly designing your products to meet customer and market interoperability needs • By licensing and cross-licensing IP • By collaborating with industry, including competitors • By implementing standards and open standards) MICROSOFT CONFIDENTIAL (proprietary However..... Governments should first establish a foundation of ICT principles and processes that enable sound ICT decision making in advance of setting strategy or creating policy. GAP Principles can help..... MICROSOFT CONFIDENTIAL World Bank Experience “Information system projects appear to have an alarmingly high failure rate, even in developed countries — half of large implementations fail, half suffer disputes.” “It is estimated that more than 80 percent of World Bank projects have an informatics component. Many of these components meet essential development needs. It is vital therefore, that they are planned and implemented to bring lasting benefit.” http://web.worldbank.org/ 11 MICROSOFT CONFIDENTIAL Thesis • Economic pressures of the early 2000s lead leading companies to develop a set of best practices in IT governance, architecture and procurement: “The GAP Principles” • Many organizations and governments continue to implement GAP approaches which leading companies evolved away from in the late 1990s • Government’s adoption of the GAP Principles would enable increased efficiency, enhanced service delivery and accelerated software sector driven economic growth • As major funding agencies for developing nation ICT projects, IFIs have a vested interest in driving adoption of these GAP Principles MICROSOFT CONFIDENTIAL The Challenge - In Plain Terms Governance > > > Competing needs of many diverse stakeholders More demands than capacity Everyone is an IT expert Architecture > > > Rapidly increasing systems complexity Delivering new services increases complexity Operations and maintenance budget growing Procurement > > Severe budget and cost control pressures Procurement cycles not responsive to business MICROSOFT CONFIDENTIAL Leading Companies evolved to GAP Governance > Federal > Architectural “Hegemony” Architecture > Abstraction and Service Orientation > The Web as “Fabric” Procurement > “Strategic Partnership” Standardization > The rise of shared service models MICROSOFT CONFIDENTIAL The GAP Principles • Governance > IT is a service provider to the business - Business units and information technology organizations need to be intimately linked through managed engagement processes. > The Chief Information Officer (CIO) requires real authority - CIOs need effective authority to mandate architecture standards across organizational boundaries. • Architecture > “Good Architecture” demands abstraction – Good architecture based on XML and underlying open internet standards abstract underlying complexities, maximize flexibility and improve speed of delivery of new services. • Procurement > Architecture is the foundation - A long term strategic model is required for core architecture procurement > Service orientation in architecture enables flexibility – Shorter term tactical models can be used to procure from smaller, local or specialized suppliers > Service Level Agreements alone do not guarantee success – Good governance and architecture are required to enable flexible outsourcing MICROSOFT CONFIDENTIAL What is IT governance? IT governance is about assigning decision rights and creating an accountability framework that encourages desirable behaviour in the use of IT Source: CISR (Center for information Systems Research) Sloan School of Management, MIT and Gartner EXP CISR also states that IT governance should cover five IT domains: • IT ‘maxims’ or policies • IT infrastructure strategy • IT architecture • Business application portfolio management • IT investment and prioritisation. Source: CISR & Gartner EXP MICROSOFT CONFIDENTIAL Effective Governance • Definition of architecture and its associated minimum standards adopted across the entire organisation • CIO and IT org empowered to enforce architecture and standards • Government ministers and internal IT leaders must be costakeholders to collaborate and have voice on long term IT strategy • Change management processes ensure rigor in operations • Financial models and budgets adopted • Opportunity to provide shared services and / or outsourced MICROSOFT CONFIDENTIAL Effective Architecture Today’s leading organizations are evolving their architectures towards a Service Oriented Architecture based on this core set of internet standards. Core Internet Open Standards • TCP/IP – Transmission Control Protocol/Internet Protocol - Basic communication protocols which enable two machines to exchange packets of information with each other across the internet • HTTP – HyperText Transfer Protocol – The basic protocol upon which the World Wide Web is built which enables the servicing of requests for information between browsers and web servers • HTML – HyperText Markup Language - The language used to define how information is displayed in a browser on the World Wide Web • XML – eXtensible Markup Language – A language which is used to facilitate the exchange of structured information between two or more applications or systems. • SOAP – Simple Object Access Protocol – A protocol based on XML which enables the execution of a service on one system by another. • WS* - Web Services * - A collection of foundation services based on SOAP and XML which facilitate the building of robust distributed applications over the internet infrastructure. MICROSOFT CONFIDENTIAL Effective Procurement • Move toward vendor rationalisation, consolidation Aggregate purchasing, steeper discounts for volume • 3 Architecture Layers = 3 Procurement Models: core architecture services operational infrastructure services applications and application services • SOA creates: new approach to vendor selection, time horizons and selection criteria for each Reduced dependence on the classic challenge of outsourcing the end to end infrastructure Lower complexity allowing for smaller, local vendors, lower costs and improved flexibility and versatility. MICROSOFT CONFIDENTIAL GAPs Benefits to Country Government > > > > > Strategic alignment with Policy Initiatives Spending “Efficiency” Increased “Absorptive” capacity Enablement of “Integrated Services” Enhanced time to delivery Stimulating Local Industry & Economy > > > > > Create Jobs Enable local IT sector integration Illuminate “Best in Class” Practices Investigate “IT Governance” Academies Procure “Strategically” MICROSOFT CONFIDENTIAL Economic Development Through Service Orientation Decomposition of IT procurement Lower risk profiles for local IT vendors Faster “Time to Service” delivery Creation of local value chains Implementation of outsourced service models Virtuous Cycle of Economic Development Benefits to IFIs > Enable client govts to achieve their development objectives > Ensure effective utilization of funds for IT enabled initiatives > Improve return on investment and dev impact of IFI funding MICROSOFT CONFIDENTIAL Recommendations for action • Establish: > IT investment council, as a subset of executive board > Applications committee, as subset of IT investment council, to prioritise and maintain applications portfolio > Architecture advisory group to ensure compliance > Technical advisory group to advise on technical matters, including infrastructure strategy compliance > Programme-project management office to ensure PPM compliance > Project review board for each major project • Include: Finally: > Relationship management Do enough & don’t over-complicate > Benefits management ‘Socialize’ ideas within organization MICROSOFT CONFIDENTIAL Summary Information technology is not the solution to eGovernment’s problems. However, effectively implemented information technology with good governance and architecture can support and speed up the achievement of development objectives with the broadest benefits for society. MICROSOFT CONFIDENTIAL [email protected] © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 24 MICROSOFT CONFIDENTIAL Self-assessment: IT Governance Score yourself for 1 to 4 (1 = not at all, 4 = completely) for: • We follow a set of agreed IT policies • We follow an agreed IT infrastructure strategy • We follow an agreed technology architecture • Our applications are mapped onto an agreed portfolio mix • Our IT investment is prioritised using the business strategy • We follow an agreed procurement policy • We follow a standard PM methodology Your total score Status of your governance 04 to 09 Poor, needs serious attention 10 to 16 Good start, could be improved 17 to 22 Good, keep improving 23 to 28 Very good, little room for improvement MICROSOFT CONFIDENTIAL Benefits of a Service Oriented Architecture • Vendor Neutrality – SOA based on Open standards which have been widely embraced by the vendor community. The standards facilitate interoperability between applications and systems. • Speed – Applications built on SOA principles have well defined and interoperable interfaces. Adding new functionality (Services) requires less systems integration and can be delivered more quickly than with previous architectural approaches. • Cost – The complexity of building distributed applications is reduced by using well defined interfaces based on open standards. This improves development staff productivity. It also reduces systems integration costs which are a major component of IT budgets today • Flexibility – A SOA hides or abstracts the underlying physical complexity of the IT infrastructure. Once an SOA has been implemented, IT organizations can add or remove capacity to meet changing demands without having to re-write the applications running on this infrastructure • Extensibility – A SOA is based on the same open standards which are used o the internet. This makes it much easier to connect customers and partners to services running on the corporate infrastructure. MICROSOFT CONFIDENTIAL Government IT Procurement “Traditional government procurement models typically do not work well with IT. For example, the initial purchase price of IT is often far less important than other factors such as total cost of ownership and the relative fit within the strategic direction of the entire IT environment. IT systems are advancing at such a rapid pace that often by the time a government has procured and implemented a system, it has become obsolete.” MICROSOFT CONFIDENTIAL UK Government Experience “Government ITenabled projects and programmes have a chequered history. Indeed, the National Audit Office and the Public Accounts Committee have published over the years a succession of reports cataloguing delay, overspends, poor performance and project cancellation.” www.nao.org.uk/guidance/focus/0304877_pp10-11.pdf MICROSOFT CONFIDENTIAL UK Government Experience “Departments also need to look for ways to open up the marketplace and make it easier for suppliers to compete for government business, especially smaller suppliers who can often be a source of innovation from which public services can benefit.” www.nao.org.uk/guidance/focus/0304361_pp12-17.pdf MICROSOFT CONFIDENTIAL Benefits achieved by study cases • IT spend is now closer to business objectives, indirectly enabled savings of over 20% of IT budget • 30% saving on standard desktops and laptops that could not have been achieved without IT governance mechanism • Annual savings of £2 million from cancelling projects that could not be justified, but would have been approved under old mechanism • Reasons for approving and rejecting investment decisions are now transparent and seen to be objective • Now easier to check whether new initiative will or will not conform to architecture, and implications if it does not • Risk of failure has been reduced • Overspends and overruns have also been reduced Source: Microsoft GAP study MICROSOFT CONFIDENTIAL Connected Government Framework www.microsoft.com/interop/govt/default.mspx MICROSOFT CONFIDENTIAL Why Connected Government Framework? Government = Interoperability Customer Feedback > Want to Delivery Services > Cross Ministries / Cross Boundaries > Maximize Investment E-Government Phases Service delivery through partnership with private sector Seamless integration of services across agencies Government Survey > Interoperability is the key issue PSD/NTO Survey Support financial and legal transactions Interact with databases and/or staff > Open Standards and Interoperability Delivery of public information Interoperability by Design > Working with what you have MICROSOFT CONFIDENTIAL High Transformation Transaction Interaction Presence Benefits Source: Gartner CGF Blueprint Generic and scenario-specific recommendations illustrating how to design, develop, deploy, and operate an architecturally sound interoperability infrastructure in key areas, including: Identity & Access Messaging & Web Services Integration Process Orchestration Transactions Business Architecture Deep technical guidance based on real-world experience. Thoroughly engineered and tested recommendations that can be followed with confidence. MICROSOFT CONFIDENTIAL Connected Government Framework Inform Technical Decision Makers Developers IT Professional Develop Deploy Operate Technology Policy Workshops Policy Makers Business Decision Makers Envision CGF White Paper Technet SOA Content CGF Strategy Briefing Modeling Capabilities CGF Architecture Design Session Enterprise Architecture Architecture Blueprint Deployment Guidance Development Guidance Partner Expertise MICROSOFT CONFIDENTIAL Operational Guidance & Tools CGF Implementations Worldwide National Efforts: UK: Gateway Colombia: Connectividad India: India One Thailand: Gateway Local & Regional Italy: Easi II Austria & Switzerland: E-GORA Germany: eGSK Spain: Digital Cities India: Softframe Indonesia: DIY LatAm: eGov.net Sweden: Swedish Local Government Prescriptive Design Latvia: Starter Kit US: CGF – City of Camden, NJ MICROSOFT CONFIDENTIAL Conclusions of the GAP study of 20 leading companies The case histories show that: > New or significantly revised IT governance structure was introduced when new CIO was appointed with mandate to make substantial changes. > Revised or new IT governance structure was implemented in response to dissatisfaction with way IT investment was allocated or prioritised. > Business executives were engaged and “socialised”. > Majority of organisations had two committee levels, but one had a “super” level and some had intermediate-levels. > Most of obstacles to implementing new governance structure concerned loss of power or increased bureaucracy, and were overcome through persistent “socialising”. Source: Microsoft GAP study MICROSOFT CONFIDENTIAL Benefits to Governments & Constituents • More effectively support the transformation agenda underlying e-government projects. • Enhance the speed and efficiency of government service delivery supported by information technology. • Act as a key stimulant to economic growth by enabling the efficient transfer of funding to and building a sustainable ecosystem of local software companies and IT services providers. • Enable client governments to achieve their IFI funded development objectives through measurable targets while ensuring the most effective utilization of loans and grants for e-government initiatives MICROSOFT CONFIDENTIAL