Forces of Change: Perspectives and Trends on State Information Technology

2015 Annual NAJIS Conference

October 6, 2015

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

National association representing state chief

information officers and information technology executives from the states, territories and D.C.

Founded in 1969

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

About NASCIO

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

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

Transition: systems-centric to technology as a service

Alternative sourcing options, agile approaches

Continuing IT workforce retirements, skills gap, recruiting challenges, talent management

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

View from the State CIOs

Charting the Course

Driving the Enterprise Imperative

Balancing Legacy and Innovation

View from the State CIOs

The Value Equation

Charting the Course

Driving the Enterprise

Imperative

Balancing Legacy and Innovation

1. Security

2. Cloud Services

3. Consolidation/Optimization

4. Broadband/Wireless Connectivity

5. Budget and Cost Control

6. Human Resources/Talent Management

7. Strategic IT Planning

8. Mobile Services/Mobility/Enterprise Mobility

9. Disaster Recovery/Business Continuity

10. Customer Relationship Management

Top Ten: State CIO Priorities for 2015

Source: NASCIO State CIO Ballot, November 2014

B. Top Ten: Priority Technologies, Applications and Tools for 2015

1. Cloud Solutions; Software-as-a-Service

2. Legacy Application Modernization/Renovation

3. Mobile Workforce: technologies and solutions

4. Business Intelligence (BI) and Business Analytics (BA)

5. Disaster Recovery / Business Continuity

6. Security Enhancement Tools: continuous diagnostic & monitoring (CDM)

7. Virtualization: servers, desktop, storage, applications, data center

8. Data Management: Master Client Index / Master Data Management

9. Enterprise Resource Planning (ERP)

10. Networking (voice and data communications, unified)

Source: NASCIO State CIO Ballot, November 2014

1. Cybersecurity

2. IT, Email or System Consolidation

3. Cloud Projects

4. ERP Implementation/Replacement

5. Broadband Expansion

6. Health Care Projects

7. Data Management/Open Data

8. Eligibility/Human Services Modernization

9. Legacy System Modernization

10. Data Center/Network Outsourcing

State CIOs: A Focus on Current IT Initiatives

Source: NASCIO State CIO Initiatives, October 2014

State Governments at Risk:

Time to move forward

Maturing role of the CISO

Budget-strategy disconnect

Cyber complexity challenge

Talent crisis

/Source: www.nascio.org/DeloitteNASCIO2014CybersecurityStudy‏

Budget-Strategy Disconnect

While budgets are seeing some increases, lack of funding is the top challenge

11

Cyber complexity challenge

2014 Deloitte-NASCIO Cybersecurity Study

Sophistication and sheer range of cyber threats continue to evolve

Regulatory complexity is growing

Complex and mostly federated state government environment poses governing challenges

CISOs and business leaders are not on the same page regarding the states’ abilities to protect against an attack

State CIOs and Cybersecurity

Source: The Value Equation, 2015 State CIO Survey

Coming Soon…State Cyber Resources

The Forces of Change

Charting the Course: Business Models and Sourcing are Changing What business models and sourcing strategies does your state CIO organization currently use?

2015 2014 2013

Owns and operates all state IT assets and operations

30% 37% 29%

Owns and operates multiple data centers 53% 58% 65%

Owns and operates a consolidated data center 64% 65% 57%

Outsources some of its IT infrastructure operations 57% 46% 51%

Outsources some of its IT application and services 79% 81% 69%

Uses a managed services model for some or all IT operations

55% 60% 65%

Uses an IT shared services model for some or all IT operations

83% 70% 73%

Source: Charting the Course, 2014 State CIO Survey

Service Delivery in the Next Three Years?

Source: Charting the Course, 2014 State CIO Survey

Cost savings and efficiency

Flexibility and scalability

Rapid provisioning

Measured service

Better data security

Shift from capital spend to operating spend

Reduced IT staffing and administration costs

Forces of Change: Why Cloud?

This transition is disruptive to the traditional notions of state IT. It has

serious implications for state budgeting, procurement, legal, business

processes, project and portfolio management.

State of the States: Cloud Services

What is your state's status regarding cloud services?

2013

2014 2015

The state is already highly invested in cloud services

6% 20%

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

68% 73% 83%

The state is still investigating cloud services 22% 6%

The state has considered cloud services but has rejected it

2% 0%

Other 2% 2%

Source: 2013 and 2014 State CIO Survey

What changes driven by technology create the most

challenges to statewide policies in your state? (State

CIOs)

7%

11%

4%

41%

17%

2%

17% A. Big Data

B. Internet of Things

C. Mobility

D. Public Cloud - XaaS

E. Private Cloud

F. Hybrid Cloud

G. Other

Source: The Value Equation, 2015 State CIO Survey

Mobility

Government Data Landscape

Data stored across multiple systems from multiple agencies in multiple formats

Data quality issues: dirty and messy

Lack of standards, consistency

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

Security concerns and privacy issues

Little insightful, usable data on “customers”

Managing Data as a Strategic Asset

Source: The Value Equation, 2015 State CIO Survey

Major Changes in State Data

Structured

Unstructured

Semi-structured

Government 2020: Sources and Format

Changing Dramatically

An explosion in the amount of data generated, driven in part, from web-based transactions, social media and sensors. IDC projects that the digital universe will reach 40 zettabytes (ZB) by 2020, an amount that exceeds previous forecasts by 5 ZBs, resulting in a 50-fold growth from the beginning of 2010.

Source: Charting the Course, 2014 State CIO Survey

State governments are turning to unmanned aerial systems (UAS) for a variety of applications. The increasing use of UAS means “big data” sensors are airborne, versatile, and inexpensive. States will be generating incredible amounts of data in the form of digital video, photos, GPS coordinates, and sound. A UAS, using a standard camera to capture video and photos, can produce half a terabyte of data an hour.

Source: The Value Equation, 2015 State CIO Survey

Source: NASCIO State IT Workforce: Facing Reality with Innovation, April 2015

One quarter of respondents noted that 21-30% of their state IT employees will be eligible for retirement in the next year

Forces of Change: IT Workforce

92% of states say salary rates and pay grade structures present a challenge in attracting

and retaining IT talent

86% of states are having difficulty recruiting new employees to fill vacant IT positions.

What skills and disciplines present the greatest challenges in

attracting and retaining IT employees?

Source: NASCIO State IT Workforce: Facing Reality with Innovation, April 2015

Do you think a shortage of qualified candidates for

state‏IT‏positions‏hindering‏states’‏ability‏to‏achieve‏

strategic IT initiatives? (all)

6%

15%

80% A. Yes

B. No

C. Unknown

Forces of change: sourcing, public cloud, X-as-a-Service

Data governance, data as enterprise asset, power of analytics

Digital government – a new experience for citizens

Risk management, enterprise IT portfolio

Growth in mobile services, apps, devices

State IT workforce: talent management, reform, innovation

Organizing for success, flexible, agile

Emerging IT, policy and data: IoT, UAS, BWCs, LPR, Next?

Looking Forward…The Agile Agenda