Local Government Solutions ForumBarcelona 2007

ICT for the Future of Local GovernmentMassimiliano Claps, Program Manager, IDC EMEA Government Insights

March 14th, 2007

• No citizen left behind – by 2010 all citizens benefit from trusted, innovative services and easy access for all

• Making efficiency and effectiveness a reality – significantly contributing, by 2010, to high user satisfaction, transparency and accountability, a lighter administrative burden

• Implementing high-impact key services – by 2010, 100% of public procurement will be available electronically

• Putting key enablers in place –enabling citizens and businesses to benefit, by 2010, from convenient, secure and interoperable authenticated access across Europe to public services

• Strengthening participation and democratic decision-making – demonstrating, by 2010, tools for effective public debate and participation in democratic decision-making.

Source: European Commission i2010 eGovernment Action Plan - http://europa.eu.int/information_society/activities/egovernment_research/doc/highlights/comm_pdf_com_2006_0173_f_en_acte.pdf

EU Asks for High Quality and Accessible Service

Policy and IT Executives Agree with EU

Note: LRG IT managers = 48; LRG business / policy managers = 30Source: IDC LOB Survey Q3, 2006 and IDC Vertical Market Survey, Q2 2006

= Low= Mid= High

10Marketing effectiveness

9Business performance monitoring

8HR management

7Efficient sourcing

6Supply chain efficiency

5Service innovation

4Mobile workforce

3IT organization responsiveness and efficiency

2Regulatory compliance

1Citizen Care / Service

Priority ranking for IT Managers

Which of the following initiatives are leading your organization

business / policy strategy agenda?

587

10469

321

Degree of Alignment

Priority ranking for Business /

Policy Managers

Joining Up Services to Improve Satisfaction

Putting Services Online Isn’t Enough

45

66

78

2001 2003 2006

Online information(25%-50%)

One-way interaction

(downloadable forms)50%-75%

Two-way interaction (electronic

forms)75%-100%

Transaction (full

electronic case

handling)100%

Western Europe, Level of Sophistication of Online Services

Note: includes EU-15 and Norway, Iceland and SwitzerlandSource: European Commission

2110 6

25

116

23

11 7

Obtaininginformation frompublic authorities

web sites

Downloadingofficial forms

Full electroniccase handling

2003 2004 2005

4438

12

43 40

15

50 49

20

Obtaininginformation frompublic authorities

web sites

Downloadingofficial forms

Full electroniccase handling

Western Europe, Level of Usage of Online Services

Citizens

Businesses

Service Delivery Must Be Joined-Up

Provinces, municipalities, districts, etc.

Regions / States

Central government

EU

End-user interface

Back office operations

Case workflows and records

Integrated Criminal JusticeSocial

ServicesPrison

ServiceProbation

officeMagistrate

CourtsPublic

ProsecutionForensicPolice

identity

manageme

ntpayment

sform

s

manageme

nt

55

49

49

44

42

41

28

42

48

35

35

26

30

32

21

30

Citizen Web Portals

Citizen call centers

Record Mgmt

Case Mgmt

Citizen Smart Cards / eID

Kiosks

CRM

Grants Management

Localgovernment

Regionalgovernment

Note: local government respondents = 109; regional government respondents = 67Source: IDC Vertical Market Survey 2006

% of respondents that plan to invest in

the next 12 months

Case & Record Management Are Key …

Event TriggerInitiation of

Case FileResearch & Discovery

Evaluation & Assessment

Approval or Rejection

Communication to

Stakeholders

ArchivalAppeal &

Review

Content Access, Change, Rights, Security Management

Record ManagementDepartment

Indexing

XML Management

Transferring

Classification

Storage Management

Retention Policies

Archiving

Department

Department

Department

Case Management

Task & Queue Mgmt Forms

Mgmt

Compliance Audit

Collaborative Tools

ModellingWorkflows

Business Rules

… to Automate Collaborative Workflows

46

40

17

18

38

36

33

32

33

28

12

44

41

30

28

22

16

15

10

5

3

6

7

6

2

6

5

3

10

3

4

15

21

13

24

22

16

23

14

25

16

25

14

31

31

34

12

9

33

21

23

59

43

18

24

32

35

22

41

53

28

7

26

13

40

63

36

11

8

1

11

17

17

9

13

13

9

8

8

15

9

20

16

9

12

8

7

6

5

7

High Speed Internet Access (xDSL, Fyber Optics)

IP-based VPN

Fixed-Mobile Convergence (FMC)

Mesh Networks

Server consolidation

Storage consolidation

System Virtualization

Networked attached storage

Storage area network

Server Blades

Grid computing

XML

Linux

Other Open Source

.NET

Websphere

Composite Applications

Netweaver

CurrentlyInvesting

Not today butplanning byend of 2007

Not today andnot Plans

No Familiarity

Dont know

% of RespondentsNote: local and regional government respondents = 57Source: IDC Vertical Market Survey 2006

Com

ms

Hard

ware

Soft

ware

Consolidate and integrate Architectures

Managing Resources Efficiently

45-5427%

35-4422%

25-3417%

16-246%

55+28%

Precious Competencies Will Be Lost

Sweden, Breakdown of Government Sector Employees by Age

Source: Statistics Sweden, 2005

2002 2004

55+30%

45-5426%

35-4422%

25-3417%

16-245%

Process

Planning and business performance management practices will support strategic and operational

decisions

Resource Management Virtuous Cycle

People

Share standard back office

functions will tackle people and money shortages

Technology

ERP and analytic technologies will

streamline processes, comply

with regulation and enrich decision

support

National government regulations compel regional

and local entitites to “merge” their entire organizations to

achieve critical mass for more efficient service delivery

National government regulations compel regional

and local entitites to “merge” some or all of their functions and each entity specialize in

performing a function

Regions, counties, municipalities, provinces, etc. create joint ventures to bring together some or all of their

functions

Regions, counties, municipalities, provinces, etc.

create joint ventures, bring together some or all of their

functions and each entity specialize in performing a

function

Mandated geo-political aggregation

Partnership

Consolidation

Specialization

Internal vs. external sourcing

Service delivery vs. back office support f

unctions

Different Shared Services Models Will …

… Contribute Achieving Higher Productivity

Stand-alone units Shared Services

– Economies of scale

– Bargaining power– Standardization

of processes and IT systems

– Focus of people skills

– Optimization of quality of service/ customer orientation

– Thorough governance

– Flexibility to local needs

Low High

Low High

Low High

Low High

Moderate-high High

Low High

High Low

Financial Accounting

PM Will Support Decisions

Type of activity

Maintain accounting of purchases, billing,

collection and disbursements

Driver

Keep track of day-by-day business operations

against annual budget appropriations

Tools

Cash-based or accrual-based accounting

applications

Business Performance Management

Continuously monitor multiple Key Performance Indicators (KPIs) against planned strategic and

tactical objectives

Improve long-term productivity to free up

resources to be dedicated to citizen

services

Comprehensive business performance management

applications (e.g. balanced scorecards) enabling measuring of

multiple KPIs

Measure cost by ministry, department, agency, process and single

activity

Cost Accounting

Comply with legislation that impose tighter controls on public

administration spending

Financial analytic applications enabling cost accounting (e.g.

activity based costing) measurements

56

27

26

47

35

27

28

33

Budgeting

ERP

BPM

Property and assetMgmt

Localgovernment

Regionalgovernment

% of respondents that plan to invest in

the next 12 months

IT Solutions Will Streamline PM

Note: local government respondents = 109; regional government respondents = 67Source: IDC Vertical Market Survey 2006

Cities Go Virtual

The 10 Largest Urban Areas in Europe

10.811.7

7.6

3.43.74.04.45.25.4

6.67.6

9.9

3.53.83.74.5

5.45.46.6

10.2

0

5

10

15

Mos

cow

Paris

London

Dortmund-

Bochum

St. Pet

ersb

urg

Mad

rid

Barce

lona

Mila

n

Frankf

urt - W

iesb

aden

2006 estimate

2020 forecast

Source: UN and www.citymayors.com

Total European population

728.39 million

714.96 million

Trivia: what cities are we talking about?

• Population: 1.8 million• Access to the city for cars is quick through spacious

avenues laid out in a grid, but moving around can be difficult in and around the city centre because of the many one-way streets and traffic jams. – The city installed around 200 radars. This technology

uses sensors under the pavement which trigger a digital camera if the car is above speed limit. The picture, including the date and time it was taken, is sent to the driver's home, as a ticket, anywhere across the country.

• Public transportation consists entirely of buses. 85% of the city's population uses the system

• The main airport is located in a nearby city, but it is integrated into transportation system, with rapid buses and executive buses connecting the airport to the city.

Source: wikipedia and other

Trivia: what cities are we talking about?

• Population: 1.3 million• Traffic is a major cause of pollution: in 2005

for around 100 days, levels of PM10 were above the limit. Every day almost 800,000 cars and trucks enter the city; 70% of them commuting from the boroughs. The municipality is planning to tackle traffic problems by building tunnels and underground parking spaces.

• The city has a taxi service operated by private companies and licensed by the municipal government. Prices are fairly high (significantly higher than, for example, in New York) and finding a taxi may be difficult in rush hours.

• The city has three nearby airports, the largest one is 60km away, but reachable by train in 40 minutes from the city center.

Source: wikipedia and other

Reducing Traffic in Congested Areas

• Drivers in central London used to spend 50% of their time in queues

• Traffic speeds in central London dipped below 10mph in the period 1998-2000 for the first time since records began

• It was estimated that London was losing more than £2 million every week in terms of lost time caused by congestion

• From introduction in 2003 through to March 2006, operating costs were at a total of £289 million, total income at £592 million and implementation costs at £162 million

• In 2005, typical delays were 1.8 minutes per kilometre vs. 2.3 minutes in pre-charging conditions

• The combined effect of charging and improved vehicle technology is that NOx emissions within the charging zone fell by 13% and total PM10 emissions fell by 15%

• Neutral impact on London Central economy

Source: Transport for London

Parking Made Easy

– 650,000 registered drivers in Vienna

– Any of 126,000 short-term parking spaces can be paid through mobile phones

– 48,000 users one year after launchSource: Siemens Business Services

Meshing Buses and Bus Stops

• The City of Porthsmouth – 186,000 residents – equipped the city’s 308 buses with “ruggedised” PC, running a version of Windows. Each bus is able to monitor its precise position with GPS and upload information about its accurate arrival time using a mesh mobile radio data modem. Information is transmitted to the bus stops.

• The network cost £4.2m. • The scheme moves urban traffic

control data from fixed-line networks to the mesh network, saving the council more than £70,000 a year in telephony charges.

• The city also expects that if public transport is more predictable more people will use it, thus reducing traffic on the roads.

Abating Cost of Waste Collection

• BigBelly Cordless Compaction System is a garbage bin equipped with a solar panel powering a motor that compacts 680 liters of waste into 18kg of easy-to-collect bags.

• Queens, New York City, deployed 44 compactors between July and September 2005. The compactors reduced trash collection frequency by approximately 70% or more for workers. – Workers can spend more time on other cleaning tasks– The required number of diesel-burning trucks (or travels

per truck) is reduced– With an average 4:1 compaction ratio, the solar

compactors significantly reduce the amount of sidewalk space taken up by bags of trash

• The bins are currently equipped with a LED that indicates when the trash is ready to be picked up. Wirelessly-enabled BigBelly is planned, which will reduce even further the need to travel to check the bins

Source: Seahorse Power Co.

Local Economies Grow with Broadband

• In 2004, the Northwest Regional Development Agency (NWDA) approved funding of £20 million for Project ACCESS and Cumbria to deploy broadband telecommunications network– Gleaston Watermill café, shops and holiday cottages

• Set up an e-commerce site for Pig’s Whisper, a novelty pig business, which now brings in about 10% of sales

• Cottage is more appealing to people that have to work while there

• Inquiries and bookings are managed more quickly

– Residents can access LearnDirect training material (e.g. European Computer Driving Licence qualification)

– Textile artist Fiona Nisbet can work from home and be much more effective, both by administering finance and travel online, and by offering online workshops and bookings

Source: Northwest Regional Development Agency

• Local governments play a fundamental role in service delivery and that can only increase in the foreseeable future

• Modernization of service delivery will materialize into joined up IT enabled processes– Portals, call centres, digitalTV, etc. will provide usable

interfaces– Case and record management will streamline workflow– Flexible and secure architecture will support integration

• Efficient resource management will release resources to the front-end– Shared back office services will achieve economies of scale– Finance, budgeting and performance management tools will

support savvy decisions

• Mobile and other innovative tools will “virtualize” cities to improve quality of life

Summary

Questions...

Massimiliano Claps,

Program Manager

mclaps@idc.com

Silvia Piai,

Research Analyst

spiai@idc.com