Accelerate Digital Transformation
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1 Accelerate Digital Transformation 2018 Vilnius Darius Spaičys 2017 VMware Inc. All rights reserved.
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4 EMEA Public Sector IT Market EMEA North Central Southern 158 Bio Euros 52 % 24 % 24 % USA : 186 Bio Euros Central and Local Healthcare Defense Security Education 64 % 20 % 15 % 6% 5 % = CAGR % CAGR %? CAGR % CAGR CAGR 2020 Our alignment 12 % 15 % 5 % 5 % Source : Gartner
5 EMEA Government Sub Segments Federal Central Administration Healthcare Education & Research Defense Security Finance HR Local & Global Communities Urban communities Rural communities Patient pathways Networked providers Privacy Transportation Postal Utilities Student e-books Virtual university Agriculture Intelligence,C3 systems Cyber Defense International operations Contracting International Government Organisations Border Control Law Enforcement Crisis resolution Natural disaster Contracting Social Social Security Pensions Welfare Rail, Road, Air, Sea Infrastructure Public transportation Contracting Land management Subsidies management Natural parcs Food tracking NATO, EU, EDA UN Agencies, Regalian missions
6 What is new for the Public Sector Recovery from the 2008 financial crisis still?! The focus on financial balance has not resolved pre existing issues, additional have surged Defense Security Migrations Democratic divide EU Regulatory Framework (NIS, GDPR, e-communications) Modernization of Government is a must Societal change and issues Cost effectiveness Cooperation and Smart at Security and Defense Digital transformation is an opportunity, models are in becoming VMware is recognized to deliver a Vision and technology Solutions Successful implementations are within an established IT Governance model (ie Estonia, Slovenia) 6
7 EMEA Public Sector Trends ORGANIC Challenging factors ENVIRONMENT Work force; - 20 % by 2022 Costs to produce services Pension systems costs Revert to contracting (utilities, transport) Legacy systems and applications Mobility and optimized use of resources EU treaty; budget deficit Societal change, democratic divide Aging population, Pensions, Health, Youth unemployment vs pensioners EU Digital regulations Outbound Defense, Security, Migrations DIGITAL TRANSFORMATION GLOBAL IMPACT Networked permissive e-government Services delivery costs optimization Enforce data security and privacy Re build citizen trust Reduce fixed costs Agile, cooperative Defense & Security Economic Policy and Performance Drive all populations inclusion Grey economy Sustain social and healthcare model Cooperative Border Protection Enabling Smart Defense Coalitions 7
8 Government Costs to Produce Services as a % GNP Costs optimization is not there yet ,6 27,7 28, , ,7 21,9 21,3 21,6 22,7 23,4 21,3 20,4 22, , % GNP USA UK Irel Ital Spain Bel Ger Fra Neth Fin Dnk Swe Nor Lith Est Lat Pol OECD Source OECD Government at a Glance 2017 Avgr 8
9 Citizen Experience with e-government Much progress needed 9
10 The Highest Risk : Democratic Divide Re establish Citizens Trust Indicator 10
11 E-Citizen Centric Curve Digital Society Integrated Transactional Digital Citizen Departmental transactions e-citizen Informational Trust Framework e-government Transparency Ubiquity of quality information On any device, any time Web Value added applications Ease of use
12 Policy Drivers to Digital Government Digital Government is an evolution of the governance model derived from a general model of society, aligning with societal change underpinned by permissive technologies Governments have a unique position; they have to serve all people equally, including the ones in inaccessible places or with debilitating conditions, at the margins of society, and ensure privacy. Migration to Digital is an enabler to Governments missions fulfillment For governments the failures to evolve could mean an accelerated loss of trust and a perception that it is out of touch with societal and technological trends For the Policy Makers and the Institutions, it is an opportunity to resolve the Democratic Divide or Citizens participation crisis. 14
13 Barriers to Government Digital Transformation By nature Government is risk adverse Control and sovereignty; first move is private on premise Make or buy open source What is the most compelling argument vs open source? Sovereign ministries adopting our technologies? Legal framework and Data Privacy laws (GDPR and NIS) Lack of analysis of data sensitive domain vs non sensitive Perception that non national private service providers make the market (AWS, IBM) National service providers have a key role to play that we need to leverage in a programmatic manner Formulation of benefits of Hybrid Cloud vs all private and on premise Are benefits driven by functional deployments? What does it bring to the Policy Makers? What are the opportunity costs and opportunity risks of not leveraging a Hybrid Cloud service architecture? 16
14 The Corner Stone : Citizens Trust The Digital Citizen becomes the central player as a Participative Citizen with the ability to influence, report, interact in real time. His/her trust will reside in the formulation and application if his/her data privacy, underpinned by data security. The challenge is the explosion of data and information derived from the Digital Citizen activities and connectivity through devices What do you think? is a SMART City a circle of trust? Who should know where data pertaining to the Digital Citizen physically reside? Who owns the data and information pertaining to citizens activity? How is Citizens consent managed? INTERNET OF THINGS DATA ANALYTICS ARTIFIFICAL INTELLIGENCE EDGE
15 Sovereignty Government Digital Transformation Sovereignty and Security, Data Privacy High Private or Public outsourced Private cloud on premise Low Data Security and Privacy High GDPR and NIS compliance are enablers Public cloud Private outsourced Sovereignty & Data Sensitivity are driving the models Low Certified Electronic Health Records service providers 18
16 Government Public Cloud Acceptance Matrix Segment cloud applications between cloud native and public cloud applications based on data sensitivity and sovereignty index Data sensitivity Min Finance Social Affairs Healthcare Defense Law Enforcement Low Procurement Procurement Procurement Day to day Procurement Procurement Medium Recruitment Recruitment Recruitment Recruitment Recruitment High Tax information Registration Appointment Logistics & Contracting Communication network Tax returns Claim Benefits Back office shared Services Centers Tax payment Benefits Electronic Health Records Field Medical C3 systems Case management Criminal data Real estate management Real estate management Real estate management Real estate management Real estate management Budget management & performance Budget management & performance Emergency Medical Services Equipment Maintenance Contracted or not Fleet management Assets Management Assets Management Fleet management & contracting Military Base services (food, laundry, etc ) Convicts management Human Resources Human Resources Health network point of care services Human resources Court management 19
17 FROM VISION TO REALITY Modernize Data Centers Integrate Hybrid Clouds Empower Digital Workspaces Transform Security Staged and agile roll out of enhanced cost effective transactional applications through virtualisation Risk manage deployment of applications through segmented workloads Automated applications update over projects life cycles Regain sovereignty and control through G Cloud Increase agility and costs effectiveness by segmenting non sensitive applications to roll out through Public Cloud Risk manage through reversibility, enforce sovereignty Scalable resources Agile and quick deployment of services on any device, accessible anywhere embracing all constituents Trial and Run approach to citizen centric services roll out Increase Citizens engagement Address Democratic Divide Fulfil mission delivering citizens privacy and increase trust Deliver critical infrastructures continuous services Contain cyberattacks Non data intrusive security End to end network security
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