Worldwide Government 2008 Top 10 Predictions

Transcription

1 Worldwide Government 2008 Top 10 Predictions Webcast - January 11, 2008

2 Webcast Logistics Audio lines are muted until Q&A session Submit your questions via the Live Meeting Chat window at any time (or audio at end) Slides available on website, will be sent with URL Connection issues? To see more of the slides - Choose View, Full Screen Government Insights, an IDC company Page 2

3 Government Insights, an IDC company Premier global research and advisory firm providing analysis for information technology trends and innovation specific to the public sector Staff of government specialized analysts, researchers & consultants Target coverage for government executives Special emphasis on developing and employing strategies that leverage IT investments to maximize organizational performance Leveraging IDC s worldwide network of analysts and extensive data resources Government Insights, an IDC company Page 3

4 Introducing Our Moderator Teresa Bozzelli, COO & Managing Director Leads the research and analysis for information technology trends and innovation specific to the public sector Over 25 years of experience and market leadership Vice President and Partner with Booz Allen and Hamilton Led the design, development, and implementation of the first successful government-wide system for improved citizen service. Senior Manager at IBM Responsible for numerous aspects of software implementation for the NASA Space Shuttle Onboard software and Mission Control programs Regular speaker at industry events including; ACT-IAC Small Business Conference, FOSE Sought after resource for the media IT within government Quoted by major publications such as Federal Computer Week, Government Computer News, Government Executive, Washington Technology Government Insights, an IDC company Page 4

5 Today s Agenda Our Predictions Team Why Predictions 2007 Report Card 2008 Predictions Essential Guidance Questions? Live Meeting or Audio Government Insights, an IDC company Page 5

6 Top 10 Predictions Team Alison Brooks Director, Canada Thom Rubel Practice Director Government Insights, an IDC company Page 6 Raphael Phang Director, APAC

7 Why Predictions? Goal: Identify trends that impact government business and Information Technology decisions. Preview our research agenda. Process: Drawn from IDC and Government Insights studies, industry contacts, and our own government experience. Bias: We focus on the transformation of major business processes and how IT enables that transformation. Time Frame: Predictions are focused on 2008, but will have a long range impact beyond Government Insights, an IDC company Page 7

8 2007 Report Card 1. Governments will pursue standardization and consolidation. 2. Information sharing/ interoperability will drive service delivery. 3. Government will create new procurement models and strategic sourcing strategies. 4. Government will adopt broader use of metrics. 5. IT program success will be based on value to mission. 6. Multi-jurisdictional governance models will increase. 7. Political changes and transitions will cause significant disruption. 8. IT innovations and architectures will drive changes in IT investment decisions. 9. Government will focus on information and physical security. 10. U.S. IT government spending will remain relatively flat. Government Insights, an IDC company Page 8

9 Broader Impact of Monetary Crisis Looming and Uncertain % Growth 2008/2007 8% 7% 6% 5% 4% 3% $ Million Utilities 5.9% U.S IT Spending by Select Industries Healthcare 7.5% Retail 5.3% Banking 3.0% Government 6.3% Manufacturing 6.1% 5.5% Average Growth 2% Relative Size of IT Spending Source: IDC and Insights, Note: Industries shown are to assess individual industry opportunity. Do not add up industries for combined IT market opportunity Government Insights, an IDC company Page 9

10 Worldwide Government IT Spending Source: IDC and Government Insights, Numbers = Millions (U.S. $) Government Insights, an IDC company Page 10

11 Key Government IT Markets: Spending Through 2011 Numbers = Millions (U.S. $) Source: Government Insights, Government Insights, an IDC company Page 11

12 US Federal Government IT Spending Growth $20 $22 $23 $24 $25 $27 $18 $20 $21 $21 $23 $24 Source: Government Insights, Numbers = Millions (U.S. $) Government Insights, an IDC company Page 12

13 State and Local Government IT Spending Trends Total State Government IT Spending State spending represents nearly 58% of all S&L spending, but local is growing slightly faster. State spending is very concentrated, with 25% of spending in five states. Total Local Government IT Spending Local spending trends indicate high priority for network and application updates. Local spending is distributed, with just under 10% occurring in the 15 largest cities. Government Insights, an IDC company Page 13 Source: Government Insights, Numbers = Millions (U.S. $)

14 1. Gov 2.0 Will Replace e-gov in Citizen Interaction and Business Transactions The next generation of egov (Web 2.0) evolves into Gov 2.0 as governments seek additional value from citizen interaction and business transactions. Integrated information sharing and interaction create new opportunities for improved government services. Rapid advances in social networking and faster adoption rates of emerging devices and technologies pushes government to rethink services, communication with and recruitment of citizens, and program delivery. Invest in technologies that dynamically enable citizen service and input at the point of need. Government Insights, an IDC company Page 14

15 2. Infrastructure Optimization and IT Resource Repurposing Replaces Solutions Prioritization of resources optimized and repurposed will differ by region. Driven by the global movement to reduce operational costs, governments will move from assessment and rationalization of IT assets to standardization, consolidation, and virtualization. Governments will focus on IT innovations and architectures as tools vs. solutions to drive change in IT investment decisions. Weigh solutions and applications and adopt only those that better and more rapidly fit process changes, rather than adapting business processes to fit these applications. Government Insights, an IDC company Page 15

16 3. Continuing Security Breaches Drive Investment in Secure Content Management Workforce mobility and citizens needs for readily accessible information create an inherent conflict with security. Devices and solutions that securely improve information mobility will take center stage. Holistic approach to information security includes protection of devices, infrastructure, applications, and policies and practices for worker and citizen access. Governments must examine processes, procedures, tools, and organizational behaviors, and prepare for security breeches and attacks. Government Insights, an IDC company Page 16

17 4. Governments Will Lead by Example in Green IT Environmental life-cycle evaluation processes will drive government procurement, including greenhouse impact, resource depletion, human and eco-toxicity, water, land use, and biodiversity. Green public procurement affects energy savings and recycling directly due to government critical mass, and indirectly through market signals. Emerging government green procurement and IT policies will produce government savings, and encourage nascent businesses as well as established industries to participate. Government Insights, an IDC company Page 17

18 5. Governments Will Adopt Broader Use of Metrics Metrics geared toward improving IT investment value and delivering more accurate and comprehensive information. Government organizations under scrutiny to increase IT investment value. Government-wide accountability and reporting programs becoming more broadly implemented. Emergence of common service delivery approaches around lines of business push improved metrics. Government organizations need to evolve appropriate measures - citizen-centric feedback, independent benchmarking initiatives, and cross-governmental measures - that directly correlate IT value to missions. More outcome-based contracting and performance results will drive contract awards. Government Insights, an IDC company Page 18

19 6. Governments Will Create New Procurement Models and Strategic Sourcing Strategies Collaborative business processes drive government organizations to focus on the total value of IT solutions to desired business outcomes. Government will begin to experiment with everything as a service including infrastructure (first), software, data centers, and tools. Government must go beyond managing by outcomes. Governments need to share resources to improve reliability, take advantage of economies of scale, and address services across regions of multiple government entities. Government Insights, an IDC company Page 19

20 7. Aging Government Workforce Will Force Broad Use of Telework U.S. and Canadian government workforce continues to shrink significantly due to the retirement bubble and continuing recruitment difficulties. Governments will begin to broaden the use of telework and flexible work schedules to attract younger workers. Governments will be forced to reexamine core competencies, adopt new sourcing strategies, and consider the private sector for traditionally inherently governmental positions. Government must reexamine how it works and innovate to make up for personnel shortages and loss of institutional knowledge. Government Insights, an IDC company Page 20

21 8. Governments Will Extend ERP Beyond Traditional Functions Government organizations are changing behavior as they take advantage of emerging enterprise and cross-government technologies. Investment strategies will extend services generated by ERP systems beyond traditional functions further integrating front and back offices. As governments integrate systems across functions, they not only capture and report mandated information, but also meet mission requirements and better serve citizens through homogenizing their processes. Governments should focus on how business processes and organizational structures respond to core operational and service delivery missions. Government Insights, an IDC company Page 21

22 9. Political Changes and Transitions Will Cause Significant Disruption Political and business leadership changes will cause significant IT investment and governance disruption for U.S. federal and state governments. Creates shifts in program priorities, breaks in program and business leadership. Continued executive and legislative oversight pressures force agencies to adapt to altered requirements. Some risk to existing projects and priorities. Delays and failures affecting service delivery and operations leave citizens and stakeholders with negative impressions. To successfully implement IT programs during political changes, governments must focus on demonstrating and articulating IT value to their mission. Government Insights, an IDC company Page 22

23 10. US Government IT Spending Will Remain Relatively Flat In the US federal market, military spending will continue to limit the growth of IT spending by civilian agencies. Current spending freeze may be broken by Congress in DoD IT spending is robust, much for special combat systems. States and local States focus on network improvements, application consolidation, and enterprise architecture standardization with an eye toward shared services. Local growing faster than state, focused on Gov 2.0 services. Growth may slow if tax bases slow this year. Software and IT services spending remains strong. Software is fastest growing spending category. IT services continues to represent over half the spend. Government markets are becoming increasingly integrated across federal, state and local. Government Insights, an IDC company Page 23

24 Essential Guidance For Government Define and justify technology solutions for program implementation that optimize government infrastructure and create maximum value for mission. Look for new technologies and applications of existing technologies to apply across the full life cycle of lines of business and services that accommodate multiple organizations and layers of governments. Define, innovate, manage, and measure within the context of citizen-centric value creation and interaction. For Vendors Be agile, innovative partners that create a vision and road map for technology-enabled solutions for improved optimization and value creation. Increase understanding of interoperability and issues, technologies, services, and partnering strategies that help governments achieve this universal government priority. Analyze technology spending in multiple views and create offerings that extend beyond single acquisitions and single government entities. Government Insights, an IDC company Page 24

25 Questions? Live Meeting or Audio Teresa Bozzelli, COO & General Manager Thom Rubel, Practice Director Alison Brooks, Research Director, Canada Raphael Phang, Research Director, APAC Slides will be posted within 24 hours and the URL will be sent to registered attendees. Government Insights, an IDC company Page 25

26 Latest Research & Upcoming Events Latest Research Small Business Profiles: Critical Success Factors for Government Contracting in the Technology Arena Update on Services Contracts in Canadian Government, 2007 Green Public Procurement: What are the Implications for European Government IT Managers? Upcoming Events Small Business Profiles: The Who's Who Guide of Government Contractors Web Conference January 17 at 2:00 pm Eastern US Jan 17, 2008 ACT-IAC Small Business Conference February 26, 2008, Arlington, VA IT in Government Conference 2008 March 5, 2008, Dublin, Ireland Industry Insights 08 Go to Market Strategies for Government March 10 San Jose, CA Government Insights, an IDC company Page 26