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A Frost & Sullivan
White Paper
Brian Cotton, PhD
www.frost.com
50 Years of Growth, Innovation and Leadership
Smarter Computing to Support 21st
Century Governance
Transforming IT Infrastructures to Meet Critical Imperatives
Frost & Sullivan
CONTENTS
Abstract........................................................................................................... 3
An Opportunity For a Smarter Government .................................................. 3
A Smarter Computing Approach to Support
21st
Century Governance ................................................................................ 6
Meeting Government IT Needs With Smarter Computing ............................. 10
A Smarter Way to Build Better Government ................................................. 14
References ...................................................................................................... 16
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Smarter Computing to Support 21st Century Governance
ABSTRACT
Amid fiscal restraint, government agencies around the world are transforming their
organizations to be more responsive to the challenges facing them. This
transformation is guided by four governance imperatives: (1) improving citizen and
business outcomes, (2) managing public resources effectively, (3) strengthening
safety and security, and (4) ensuring a sustainable environment. These imperatives
play out across all the domains of governance, including education, healthcare,
transportation, utilities, national defense, and public safety. The information
technology (IT) applications and operations that support these imperatives place
substantial workload demands on IT infrastructures. Traditional government IT
systems are built to handle a single workload in a single agency, but are unable to
handle the workloads effectively or efficiently, thus impeding a government agency’s
ability to deliver on its imperatives.
Government CIOs need guidance to help them transform their IT infrastructures
to deliver on these imperatives. Smarter Computing, a new approach to transform
IT infrastructures, is based on three fundamental capabilities: Designed for Data,
Tuned to the Task, and Managed in the Cloud. Smarter Computing enables IT
infrastructures to handle multiple types of data for advanced management and
analysis applications, by using IT components optimized to the workloads placed on
them, to support a variety of service creation and delivery models.
Meanwhile, leaders in every industry are adopting Smarter Computing to address
the challenges they face and opportunities presented by a Smarter Planet, and IBM
is helping some of them to implement the approach.
Governments that are embracing Smarter Computing are delivering on their
imperatives, and are realizing performance and economic benefits from their
transformed systems. Examples from the Potsdam Institute for Climate Impact
Research, and Caisse Nationale d'Allocations Familiales to Miami-Dade County and
the City of Norfolk demonstrate the benefits of using this approach. These
organizations have been able to modernize their IT infrastructures to accommodate
new governance services, to extend powerful computing resources to other
agencies and jurisdictions, and to identify and eliminate fraud in benefits programs
while improving the outcomes of their citizen clients. At the same time, they are
realizing significant capital expense, maintenance, and cost savings by using a
Smarter Computing approach.
AN OPPORTUNITY FOR A SMARTER GOVERNMENT
This is a pivotal time for governments because the world is changing rapidly.
Globalization is making government agencies and jurisdictions ever more socially,
politically, culturally, and economically interdependent. Demographic compositions
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are shifting, with populations in some countries getting older, while others are
getting younger. The natural environment is changing and leaders are realizing what
the planet is able to provide, and what it can no longer tolerate. An assortment of
threats, from armed conflicts that cross national borders, to terrorism, disease, and
increasingly fierce natural disasters, are facing us.
Underlying all this is an economic climate that dictates how governments adapt to
the changing world. In the developed economies, diminished tax revenue and record
deficits are stressing government funding and putting some in substantial deficits.
Globally, the Organization for Economic Cooperation and Development (OECD) is
estimating the aggregate budget deficit is 7.5 percent1
, while some countries are
running deficits well into double digits. In the United States, the Government
Accountability Office (U.S. GAO) has painted a stark picture of the situation, stating
“the fiscal position of the (government) sector will steadily decline through 2060,
absent any policy changes.”2
Some U.S. state and local governments are in a crisis
as financial problems force them to suspend services, as recently happened in
Minnesota.3
Governments are being forced to become leaner, more efficient, and
more effective amid fiscal austerity.
Governments in emerging market countries are obligated to modernize their
operational models to meet citizen demands for new services, and some are
implementing eGovernment systems as part of their strategy.4
This is enabling them
to inject flexibility into their operations and quickly scale to expand the reach of
public services when needed.5
China, for instance, is increasing its spending on
eGovernment programs at the local and regional government levels6
, and similar
spending is planned by the government of India7
and the Kingdom of Bahrain.8
In both settings, governments are transforming themselves to be smarter and take
advantage of the forces of change. Jennifer Granholm, the governor of Michigan
from 2003 to 2011, called on her peers to recognize and embrace this opportunity.
“The 21st
century economy is all about speed, access, intelligence, and efficiency. A
21st
century government needs to be about the same things”.9
In this new world,
traditional silo-based models of governance are shifting to newer collaborative
models that enable government to rapidly and efficiently develop, implement, and
manage services. These collaborative models place government in a system that
facilitates the interaction between internal agencies and the external private sector,
including communities, academia, nongovernmental organizations (NGOs), and
foreign governments at the national level. At the core of this is a move toward
sharing intelligence and analysis, with speed based on real-time data access and
analysis, and capabilities that are optimized to specific domains or functions of
government—all running at a high level of efficiency.
“The 21st
century
economy is all about
speed, access,
intelligence, and
efficiency. A 21st
century government
needs to be about
the same things”
—Jennifer Granholm,
former governor
of Michigan
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Smarter Computing to Support 21st Century Governance
The transformation to a 21st
century government is guided by a set of four critical
imperatives linking into multiple government domains, as illustrated in Figure 1.
• Improve citizen and business outcomes: Enhance social and business
services with a citizen-centric focus, while reducing operational costs and
maximizing taxpayer value
• Manage public resources effectively: Strengthen analysis, intelligence, and
planning to improve program management and sharpen insight into and
control over operations
• Strengthen security and safety: Enable defense, law enforcement, and
first responder agencies to improve situational awareness, speed decision-
making, and increase speed of command
• Ensure a sustainable environment: Use energy conservation and efficiency,
improve transportation management, and develop renewable resources
Guided by these imperatives, a government becomes a smoothly functioning system
that 1) promotes economic growth by streamlining and simplifying processes and
reporting requirements, 2) delivers citizen-centered services in offices that address
multiple types of services, and 3) provides high-demand transactions over the
Internet. These imperatives play out at all levels of government, and will be most
acute at the urban level, where the interplay between stakeholders is particularly
close in cities with steadily increasing population growth and density.10
Figure 1: Critical Imperatives Guiding Government Transformation
Source: Frost & Sullivan analysis and IBM
Improve Citizen & Business Outcomes
• Social Benefits and Service Delivery
• Education
• Healthcare
• Tax and Revenue Management
• Transportation Management
• Public Safety
Ensure a Sustainable Environment
• Transportation Management
• Power Management
• Water and Sewer Management
Strengthen Security & Safety
• Customs and Immigration
• Border Management
• Public Safety
• Defense Network Centric Operations
21st Century
Government
Manage Public Resources Effectively
• Social Benefits and Service Delivery
• Education
• Healthcare
• Tax and Revenue Management
• Transportation Management
• Public Safety
• Water and Sewer Management
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Governments that are transforming to collaborative models need an IT
infrastructure that supports them. Traditional government IT infrastructures were
designed on a “one agency-one architecture” silo model, mirroring the operational
structure of government itself. These IT systems typically do not interoperate well,
and as they are aggregated across agencies and jurisdictions, these silos of IT
infrastructure can result in underutilized assets and redundant software, which
increase capital and operational costs.
Public sector CIOs and IT planners need to be creative when redesigning their IT
infrastructures to reduce the administrative overhead while maintaining high levels
of performance. In mature market countries, this presents a conundrum, because
while many government CIOs recognize a need to transform their IT
infrastructures, most are faced with IT budgets that are being cut back, remaining
flat, or are at best growing only slowly.11
Here, the opportunity of a tight budget can
stimulate creative solutions for increasing IT efficiency and effectiveness.12
As one
state government CIO put it, “IT in my state was developed inside out, so that 19
state agencies have 19 data centers and every county has its own network... there’s
a lot of money to be saved in just one network for all of them.”13
In emerging market
countries, the CIO’s opportunity is to design systems according to state-of-the-art
approaches. In both cases, government CIOs need support to transform their IT
infrastructures, and Smarter Computing can guide them through the process.
A SMARTER COMPUTING APPROACH TO SUPPORT
21st
CENTURY GOVERNANCE
Smarter Computing is a new approach to transform IT infrastructures to
perform better in today’s complex and interconnected world. This approach is
based on three fundamental capabilities:
• Designed for Data means designing an IT infrastructure to harness all
available information, including real-time streaming data, to unlock insights for
better decision-making. It is about extending beyond traditional sources of data
to generate insights by leveraging new forms of information, which can be
incorporated into a government organization’s information supply chain to
create a single version of the truth, simplify data security, and get insights from
huge volumes of data, while reducing operating costs.
• Tuned to the Task means matching workloads to systems that are optimized
to the workload characteristics, including transaction processing, database
management, business intelligence, analytics, managing cross-domain
communications, and enabling complex modeling. Optimizing systems to the
workloads enables greater performance and efficiency, helping government CIOs
working under constrained IT budgets to deliver services cost effectively.
“IT in my state was
developed inside
out, so that 19 state
agencies have 19
data centers and
every county has its
own network. . . .
there’s a lot of
money to be saved
in having just one
network for all of
them.”
—U.S. state
government CIO
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Smarter Computing to Support 21st Century Governance
• Managed in the Cloud means evolving government data centers to
support a variety of business models and service delivery methods that
bring greater efficiencies out of existing IT assets, deploy resources flexibly
and quickly, and reduces costs. Ultimately, it increases efficiency, rapidly
delivers services, and adds more degrees of freedom to government CIOs to
deliver on eGovernment initiatives.
Smarter Computing supports government IT infrastructure transformation by
creating a technology framework to support the IT applications and operations that
deliver on the four key imperatives. These applications and operations revolve
around how data is collected, processed, analyzed, stored, and shared. The IT
infrastructures running these applications are subjected to various types of
workloads and processing tasks (as summarized in Figure 2), which cannot be
effectively or efficiently handled by traditional government IT infrastructures.
Figure 2: 21st
Century Government Imperatives and their
IT Infrastructure Workloads
Source: Frost & Sullivan analysis
Government CIOs can use Smarter Computing to design IT infrastructures to
handle massive amounts and varieties of data needed by applications and
operations. Different workloads have different characteristics, and by emphasizing
optimized systems Smarter Computing encourages efficient infrastructure designs
that are flexible enough to meet peak level workload demands, and enable
Back Office
Transaction
Processing,
Simulations &
Analytics,
Information
Management
Edge of System
Sensors &
Controls,
Cross-System
Data Feeds,
Communications
Workloads
on the IT
Infrastructure
Government User Integrated Access & Operations
Improve Citizen &
Business Outcomes
Social Benefits and Service
Delivery
Education
Healthcare
Tax and Revenue
Management
Transportation Management
Public Safety
Manage Public
Resources Effectively
Social Benefits and Service
Delivery
Education
Healthcare
Tax and Revenue Management
Transportation Management
Public Safety
Water and Sewer Management
Strengthen Security
& Safety
Customs and Immigration
Border Management
Public Safety
Defense Network Centric
Operations
Ensure a Sustainable
Environment
Transportation Management
Power Management
Water and Sewer
Management
Front Office
Business Process
Management,
Database
Management,
Business
Intelligence
ProcessAutomation
Event Processing Simulation Models Data Analysis Transaction Processing
Data Storage And Management
Physical World Interfaces (Sensors, Systems, Devices) & Data Acquisition
Control Data
CCTV
and video
infrastructure
Energy
supply and
management
Public
and private
buildings
Transportation
infrastructure
and services
Public service
staff and
resources
Water
supply and
management
Other stakeholders
(e.g., agencies,
NGOs,
private sector)
Smarter Computing
supports Smarter
Government by
creating a
technology
framework to
support a
collaborative,
shared-service
operational model
that delivers on
the four key
imperatives of
21st
century
government.
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Frost & Sullivan
resources to be deployed elsewhere during off-peak periods. Smarter Computing’s
cloud capabilities facilitate the rapid deployment of new services, and can integrate
services and data across government agencies to provide a unified view of insights
and enhance collaboration. Importantly, the approach gives CIOs control over
capital and operational expenditures because existing IT infrastructures can be
transformed, and need not be completely replaced. By using Smarter Computing,
government CIOs can transform their IT infrastructures to effectively and
efficiently enable the imperatives of 21st
century governance.
Improving Citizen and Business Outcomes
Improving citizen and business outcomes relies on a set of applications and operations
to provide the right level of services to citizens and businesses.These include:
• Shifting records from paper to digital formats
• Creating and maintaining an accurate, single view of the citizen or business entity
• Support citizen or business self-service
• Using analytics to ensure proper citizen-to-service match
• Using analytics to detect fraud, and
• Ensuring data security and access according to established protocols
In social benefits administration, for instance, a Smarter Computing approach would
prepare an IT infrastructure to handle all the data for its citizen clients, wherever
and in whatever format it resides. As well, it would enable master data management
(MDM) techniques to create the single-view record of the citizen, provide
authorized access to parts of that record across an agency, and apply analytics to
match the appropriate level of benefits with the citizen and to detect instances of
fraud, all while ensuring the identity of the citizen and his or her personal data is
kept secure. This can improve the level of services delivered to the citizen, and
improve the management of public resources allocated to an agency. The Alameda
County Social Services Agency, for example, found these benefits when it
implemented Smarter Computing to create a single view of its clients, and applied
analytics to its benefits payment operations to ensure its clients were given the
proper level of benefit assistance. As a result the agency saves almost $25 million
annually by reducing benefit overpayments.14
Manage Public Resources Effectively
Managing public resources effectively means not only improving data management
and analysis, but also improving the efficiency with which services are created and
delivered, which are realized in lower costs.This imperative uses the same set of IT
applications and operations as does improving citizen and business outcomes, and
The Alameda County
Social Services
Agency implemented
a Smarter
Computing approach
and realized almost
$25 million in
savings annually.
—Nucleus Research
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Smarter Computing to Support 21st Century Governance
adds asset management, tracking, and maintenance, and analytics applications
to ensure a proper resource to service match. The efficiency advantage of Smarter
Computing for this imperative lies in using systems optimized to the various
IT workloads, and because Smarter Computing infrastructures are cloud-enabled
they can operate with multiple delivery models, including shared-service
arrangements. Moreover, Smarter Computing enables consolidation and
virtualization, allowing flexible and scalable resource deployment in the event
of unanticipated or unknown workload demands. Cloud capabilities also improve
the economics of service creation and delivery. North Carolina State University
(NCSU), for instance, adopted this approach to address an unanticipated growth in
demand for its computing resources. By using Smarter Computing, NCSU was able
to extend its resources to other educational institutions in North Carolina,
increasing the average number of students served per license by 150 percent
without incurring any additional capital expenses.15
Strengthen Safety and Public Security
Strengthening safety and public security involves the paper-to-digital-record shift,
single view, and data security applications and operations that are in the previous
imperatives, as well as others, including:
• Analysis of streaming data for event detection and prediction
• Communication coordination across jurisdictions and agencies
• Analysis for real-time incident detection and incident and event prediction, and
• Cross-domain data feeds and sharing
Increasing traffic safety and providing rapid responses to traffic incidents, for
instance, relies on accurate data collected from a variety of sources, and making it
available for analysis to enable security commanders to evaluate the situation,
assess the risks to the public and officers, and then deploy the appropriate
personnel. Traditional methods of data collection often involve manual processes,
and the data is seldom easily accessible or amenable to rapid analysis. A Smarter
Computing approach to increasing traffic safety would enable a single IT platform
to centralize traffic data collection, using automated sensors and video feeds, and
integrate analysis and reporting applications available to all commanders and
officers who need to act on the data. To illustrate this, the Inner Mongolia Public
Traffic Police Detachment, a governmental traffic administration agency serving the
citizens of Inner Mongolia in northern China, implemented Smarter Computing to
enhance its ability to respond to traffic data processing. By using the approach, the
agency reduced data collection times from an average of 10 days to only four
hours—a 95 percent improvement. Moreover, because traffic data collection is
accelerated, the agency is able to reduce its monthly processing costs and improve
traffic services and citizen satisfaction.
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Ensuring a Sustainable Environment
The governance imperative of ensuring a sustainable environment complements the
other imperatives. Often, concerns over making sure large-scale physical
infrastructures, the agencies that manage them, and the citizens they serve all operate
to minimize impacts on the environment and conserve natural resources. Applying
Smarter Computing to the digital infrastructures that run the physical infrastructures
can help governments protect the environment. The IT applications and operations
involved here include 1) citizen self-service; 2) asset management, tracking, and
maintenance; 3) the analysis of streaming data for event detection and prediction; 4)
cross-domain data feeds; and 5) communication coordination across agencies.
The requirements for extreme weather event prediction and warnings used by
public safety agencies, for instance, place heavy workloads for database
management, analytics, sensors and controls, communications, and complex
modeling on a weather agency’s IT infrastructure. Because of the cost in lives,
property, and disruption that a severe weather event can cause, it is critical that
predictions are accurate and provided on a timely basis across multiple agencies.
The number of agencies and the volume and variability of the data needed make this
massively complex. Traditional infrastructures cannot adequately handle the
multiple, interdependent workloads tied to performing the service without large
investments in IT equipment, energy to power and cool it, data center floor space
to house it, and manpower to maintain it.
The Potsdam Institute for Climate Change in Germany (Potsdam Institut
fur Klimafolgenforschung, PIK) models and predicts climate for the German
government with a consideration for extreme weather events that arrive with
little warning and last for comparatively short durations. The extremely complex
calculations that PIK needs to perform this service require an IT infrastructure
that delivers extremely high performance and reliability, while cost-effectively
managing huge amounts of weather data. PIK was unable to provide this service
efficiently using its traditional IT architecture. Instead, PIK used a Smarter
Computing approach to design a workload-optimized, multisystem IT architecture
able to provide the crucial prediction and advanced warnings capabilities
at 30 times the capacity of its traditional architecture, while consuming 25 percent
less energy than would have been the case.16
MEETING GOVERNMENT IT NEEDS WITH SMARTER COMPUTING
A Smarter Computing IT infrastructure is designed to handle all types of data
to improve insight and management of government domain operations. Such
an infrastructure also is optimized to efficiently handle the complex workloads
placed on it, and has the flexibility to support multiple service delivery models
in a 21st
century government. Government agencies that are embracing Smarter
Computing are delivering on the imperatives of 21st
century government, and
are enjoying the benefits from using the approach.
The Potsdam Institute
for Climate Change
uses Smarter
Computing to provide
advance warning of
extreme weather
events at 30 times
the performance and
25 percent less
energy consumed
than traditional IT
architectures would
allow.
—IBM Case Study
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Smarter Computing to Support 21st Century Governance
Caisse Nationale d'Allocations Familiales: Improving Citizen Outcomes
and Increasing Environmental Sustainability
Caisse Nationale d'Allocations Familiales (CNAF) is a French government agency
providing social benefits and assistance to families living in France and its overseas
territories. The agency wanted to improve the speed at which it handles benefits
processing, sharpen its visibility into applicants’ requirements, and modernize its
operations by shifting much of its administration from paper-based to digital processes.
CNAF worked with IBM to apply Smarter Computing to redesign its IT infrastructure
to better cope with disparate forms of benefits data, to optimize data centers to speed
the processing of benefits information, and to put all services online to better meet the
needs of its clients. Smarter Computing not only helps CNAF improve the outcomes
of its clients, but also helps minimize its impact on the environment.
Growing Workloads Slow Services for Citizens
The CNAF is a large social services agency employing 30,000 people at 123
locations that provides benefits and assistance to 12 million families, students, and
low-income individuals, and manages more than €50 billion in public resources
annually. For most of its history, CNAF has relied on a painstaking set of processes
to examine a number of eligibility factors for each case and matching them to the
appropriate level of benefits, while checking other accounting and legal practices to
limit fraud. This manual, paper-based process involves multiple departments, and
requires applicants to make several in-person visits to crowded agencies, and then
wait up to four months to have their applications confirmed. Moreover, the agency’s
reliance on paper forms places a burden on the environment. As the number of
applications increased in the wake of the economic recession, CNAF needed a way
to slash the processing time and efforts, while vastly extending the access to
services beyond the traditional agency locations, and still provide a high level of
service and responsibly to manage a significant amount of public funds.
Implementing a Holistic Smarter Computing Architecture
Recognizing a need to build an advanced IT infrastructure to improve the outcomes
of its citizens and better manage the public resources, CNAF teamed with IBM to
implement a Smarter Computing approach across its infrastructure. The core of the
initiative was to implement a comprehensive and standardized portal structure to
provide easier, faster and more accurate access to eligibility information and
processing for citizens and agency staff. IBM designed the architecture to handle the
disparate information submitted online by accepting electronic data and scanned
forms from Web browsers and more than 900 new interactive kiosks deployed across
France and its territories. The core of the portal is built around an IBM mainframe
optimized to handle all this disparate data, yet be flexible enough to handle 35 million
transactions every day, and support peak workloads of 2.2 million page view requests.
The CNAF
implemented a
smarter Computing
approach to its
social benefits
processing, cutting
wait times from
four months to
one week, reducing
costs, and improving
its environmental
sustainability.
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“In addition to
providing the speed,
reliability and
scalability we needed
to support our
enterprise business
intelligence
environment, the
system fit within
our budget, which
was a key deciding
factor.”
—Jaci Newmark,
project lead,
enterprise business
intelligence
architecture,
Miami-Dade
County
Vastly Improving Citizen Outcomes while Cutting Costs
CNAF soon saw the benefits of its new Smarter Computing system. By increasing the
access to information and enabling citizens to submit application information online,
the agency was able to immediately begin matching citizen needs to social services,
thereby speeding eligibility processing and enabling staffers to make more informed
decisions and reducing the potential for fraud. This reduced the need for citizens to
visit agency offices, making the process more convenient, as well as substantially
cutting confirmation wait times from four months to as little as one week.
Additionally, CNAF was able to reduce real estate costs through the use of the new
kiosks, and by moving from a paper-based system to a digital system, it reduced costs
and the environmental footprint associated with manual processing of paper forms.
Miami-Dade County: Managing Public Resources More Effectively
A large county-level government in the United States needed to support a growing
need for information sharing across its many departments. Building on an
established platform, Florida’s Miami-Dade County worked with IBM to make its IT
architecture smarter, and gained a powerful new business intelligence platform. In
addition to increasing the county’s business intelligence functionality and scalability,
the solution preserved investments in existing systems.This enabled Miami-Dade to
make better use of scarce public resources.
Advanced Business Intelligence Capabilities are Essential across
Multiple Organizations
With a population of nearly 2.5 million citizens, and an area of more than 2,000
square miles, Miami-Dade County is the largest county-level unit in Florida. Even
with the recent economic recession, the county’s population grew by more than 10
percent from 2000 to 2010. As would be expected of a county with this profile, all
organizations within the county government, from first responders to county parks,
amass an extensive amount of data. Beginning in 1999, the county’s IT organization
was using IBM business intelligence analytic applications to provide business
intelligence to its internal stakeholder agencies.The analytics soon became strategic
assets to the county, but the growth of demand driven by the expanding population
began to outpace the IT systems’ ability to support the corresponding increase in
information sharing between agencies. At the same time, funding in a state hard hit
by the recession meant that existing IT investments had to be preserved as best as
possible. This led the county to search for a solution to provide the advanced
business intelligence capabilities needed, building on the systems in place.
Enhancing a Current System to Handle Advanced Analytic Capabilities
Because balancing the need for new analytic capabilities with preserving
investments in current IT system was a primary concern, Miami-Dade County
turned again to IBM to enhance its infrastructure to handle the increased data
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Smarter Computing to Support 21st Century Governance
feeding into its business intelligence, data management, and transaction processing
workloads. The county’s IT planners and IBM enhanced the existing IT architecture
with two new higher-capacity mainframe platforms, and upgraded the business
intelligence software to ensure very high reliability for critical agency functions,
particularly fire and police services. The project team built the enhancements
around the need for a real-time situational awareness, and the new system enables
users to view reports on a dashboard interface. The implementation plan also
extended the data management and analysis capabilities to other departments
beyond the original group of users, such as jails and power and IT operations.
Cost Effectively Extending the Capabilities of Business Intelligence
The smarter IT infrastructure that IBM developed supported Miami-Dade County’s
requirements to extend the capabilities of its business intelligence system, managing
the resources of the county much more efficiently. This is helping the county to
make the transition to a more modern, collaborative, and smarter structure. It has
already provided numerous governmental agencies the insight and prediction
capabilities of an advanced business intelligence system. Because IBM was able to
build from existing systems, the county was also able to become smarter within its
tight budget by saving on hardware and software costs. All of this provides the
foundation for the county to continue to expand its business intelligence
capabilities across the entire governmental organization.
The City of Norfolk: Strengthening Public Safety and Security
The City of Norfolk, VA, is a typical example of a city government with an IT
infrastructure that was insufficient for its needs. The city’s disparate IT systems
were inefficient, expensive to maintain, and could not accommodate the city’s desire
to introduce new services for its citizens. Norfolk’s IT planners and IBM
collaborated to optimize its IT systems by transforming the city’s IT architecture to
support new data-intensive workloads for the police and other departments, which
helps the city to strengthen public safety and security.
An Antiquated IT Infrastructure Impedes Growth
With more than 242,000 residents, Norfolk is the second-largest city in Virginia. The
city’s IT department, charged with storing and maintaining vast amounts of complex
data in a dynamic 24x7 environment, began to see exponential growth in data volumes,
and the existing storage facilities were rapidly running out of space. This was
jeopardizing the impending launch of the city’s new major public safety initiatives,
anticipated to be highly data-intensive, such as storing police car video data. The
multiple storage and system devices were also power-hungry, which added to the
system’s operational costs.The city’s IT department decided it needed to transform its
IT infrastructure to accommodate the transaction processing, database management,
analytics, and communications workloads to deliver the new public safety services.
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Frost & Sullivan
Tuning the IT Infrastructure to Handle a Data-Intensive Environment
Norfolk turned to IBM to create a solution that would not only accommodate existing
data volumes from the various city departments at their current rate of growth, but
also scale quickly and easily to meet unanticipated needs. Of particular importance
was the need for the IT architecture to handle the new public services that would
generate massive amounts of data. The centerpiece of this was integrating its storage
infrastructure on a single IBM storage system, enabling automated processes,
improving performance and security, and reducing energy consumption across the
entire system. By optimizing the infrastructure to handle the new workloads
envisioned, IBM and Norfolk consolidated storage needs from a wide variety of
mission-critical, data-intensive applications and systems onto a single platform.
Supporting New Initiatives, While Boosting Performance and
Lowering Costs
Norfolk’s new storage system was optimized to handle the existing data sources,
and to quickly and easily provision additional storage to support its new service
initiatives.These include transportation services designed to improve ground traffic
through automated parking alerts and payment options, as well as public safety
services, such as in-car video surveillance for the city’s police cruisers. Beyond
helping the city fulfill its mandates to improve citizen outcomes and strengthen
public safety, the Smarter Computing infrastructure helped it to more effectively
manage its scarce financial resources and improve environmental sustainability.
Storage performance was increased by 40 percent, while power consumption
dropped by 50 percent. All of this helped the city reduce its operating costs, deliver
a higher level of services, and increase its ability to protect public safety.
A SMARTER WAY TO BUILD BETTER GOVERNMENT
Public sector CIOs and IT managers are painfully aware that policy makers,
government workers, and citizens and businesses are demanding more from the IT
systems under their administration. As the world changes, models of government are
transforming from traditional silo models, to being more collaborative. Government
CIOs who are faced with tight IT budgets, as well as those who are making a leap into
the digital age, need a smarter way to collect, analyze, and present the enormously
rich and complex data that underlie the imperatives guiding this transformation.
The application and operational requirements to realize these imperatives come
with substantive IT workloads, and traditional IT infrastructures that were designed
around a one-function-one-hardware system principle cannot cope with these
workloads. In today’s austere economic climate, government CIOs have the
additional requirement for their IT infrastructures to reduce operating costs, be
flexible and scalable to deploy computing resources where they are needed, and to
ease collaboration across agencies, partners, the private sector, and citizens.
The City of Norfolk
used Smarter
Computing to
optimize its storage
system to support
its new public safety
initiatives. Storage
performance was
increased by 40
percent while power
consumption dropped
by 50 percent.
frost.com 15
Smarter Computing to Support 21st Century Governance
The Smarter Computing approach can guide government IT departments along the
path of establishing the IT infrastructure to support the imperatives of a smarter,
21st century government. A number of municipal, regional, and national
governments around the world are beginning to realize the benefits of
implementing a Smarter Computing approach. Government CIOs may wish to
investigate using a Smarter Computing approach if they are considering:
• Modernizing large scale public programs—such as tax and revenue management,
education, social benefits and services, and healthcare—to improve the level of
services provided, and enabling agents to reduce unnecessary waste of public funds;
• Optimizing IT infrastructures to support new policing services, streamline
customs and border management processes, and enhance situational awareness
and personnel safety in security and defense operations;
• Revitalizing existing water, transportation, and power networks with
advanced IT capabilities to improve their operation and capacity and extend
the life of public assets
From the above-mentioned cases of Norfolk, Inner Mongolia, NCSU, Miami-
Dade, Alameda County and CNAF, Smarter Computing is proving to be a
successful and valuable approach to help governments meet the needs of their
citizens responsibly and efficiently.
frost.com
16
Frost & Sullivan
1
Organization for Economic Cooperation and Development (OECD). “OECD Economic Outlook”.
www.oecd.org (25 May 2011).
2
United States Government Accountability Office (GAO), “State and Local Governments’ Fiscal
Outlook: April 2011 Update, Publication GAO-11-495SP (6 April 2011).
3
Davey, Monica, “Minnesota Government Shuts in Budget Fight,” New York Times Online Edition,
http://wwwnytimes.com/2011/07/01/us/01minnesota.html (30 June 2011).
4
United Nations Public Administration Programme, “United Nations E-Government Survey 2010”,
http://unpan1.un.org/intradoc/groups/public/documents/un/unpan038851.pdf.
5
Ibid.
6
Government of China, “Report on the Implementation of the 2010 Plan for National Economic
and Social Development and on the 2011 Draft Plan for National Economic and Social
Development. Adopted on March 14, 2011, at the Fourth Session of the Eleventh National
People’s Congress”, http://english.gov.cn/official/2011-03/17/content_1826561.htm.
7
Mukherjee, Pranab, Minister of Finance, Government of India, “Budget Speech for 2011-2012”,
Speech, http://indiabudget.nic.in (28 February 2011).
8
Kingdom of Bahrain eGovernment Authority, http://www.ega.gov.bh/en/strategy.php, (7 July 2011).
9
Von Drehle, David, “In the U.S., Crisis in the Statehouses,” Time Magazine,
www.time.com/time/magazine/article/0,9171,1997457,00.html, (17 June 2010).
10
Demographia, “World Urban Areas: Population Projections (2010),
http://www.demographia.com/db-wuaproject.pdf, (10 June 2011).
11
“Open Government Sites fall Prey to Budget Cuts.” InformationWeek Online,
http://www.informationweek.com/news/government/policy/229625627, (25 May 2011).
12
National Association of State Chief Information Officers (NASCIO), “The 2010 State CIO Survey:
Perspectives and Trends from State Government IT Leaders”, (August 2010).
13
Ibid.
14
Nucleus Research, “ROI Case Study: IBM SSIRS Alameda County Social Services Agency”,
Document K12, (August, 2010).
15
North Carolina State Department of Computer Science, “North Carolina State University and
IBM Extend Access to Educational Resources to the World through Cloud Computing” Press
release, CSC News, (24 October 2008).
16
IBM, Inc. “The Potsdam Institute for Climate Impact Research takes on Smarter Climate
Research”, Press release, http://www-01.ibm.com/software/success/cssdb.nsf/CS/DLAS-
7WVKDS?OpenDocument&Site=default&cty=en_us, (18 October 2009).
This report was developed by Frost & Sullivan with IBM assistance and funding.This
report may utilize information, including publicly available data, provided by various
companies and sources, including IBM. The opinions are those of the report’s
author, and do not necessarily represent IBM’s position.
XBL03008-USEN-00
REFERENCES
877.GoFrost • myfrost@frost.com
http://www.frost.com
Silicon Valley
331 E. Evelyn Ave. Suite 100
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San Antonio, Texas 78229-5616
Tel 210.348.1000
Fax 210.348.1003
London
4, Grosvenor Gardens,
London SWIW ODH,UK
Tel 44(0)20 7730 3438
Fax 44(0)20 7730 3343
ABOUT FROST & SULLIVAN
Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth.The company's
TEAM Research, Growth Consulting, and GrowthTeam Membership™ empower clients to create a growth-focused
culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 50 years
of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from
more than 40 offices on six continents. For more information about Frost & Sullivan’s Growth Partnership Services,
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Smarter Computing to Support 21st Century Governance Transforming IT Infrastructures to Meet Critical Imperatives

  • 1. A Frost & Sullivan White Paper Brian Cotton, PhD www.frost.com 50 Years of Growth, Innovation and Leadership Smarter Computing to Support 21st Century Governance Transforming IT Infrastructures to Meet Critical Imperatives
  • 2. Frost & Sullivan CONTENTS Abstract........................................................................................................... 3 An Opportunity For a Smarter Government .................................................. 3 A Smarter Computing Approach to Support 21st Century Governance ................................................................................ 6 Meeting Government IT Needs With Smarter Computing ............................. 10 A Smarter Way to Build Better Government ................................................. 14 References ...................................................................................................... 16
  • 3. frost.com 3 Smarter Computing to Support 21st Century Governance ABSTRACT Amid fiscal restraint, government agencies around the world are transforming their organizations to be more responsive to the challenges facing them. This transformation is guided by four governance imperatives: (1) improving citizen and business outcomes, (2) managing public resources effectively, (3) strengthening safety and security, and (4) ensuring a sustainable environment. These imperatives play out across all the domains of governance, including education, healthcare, transportation, utilities, national defense, and public safety. The information technology (IT) applications and operations that support these imperatives place substantial workload demands on IT infrastructures. Traditional government IT systems are built to handle a single workload in a single agency, but are unable to handle the workloads effectively or efficiently, thus impeding a government agency’s ability to deliver on its imperatives. Government CIOs need guidance to help them transform their IT infrastructures to deliver on these imperatives. Smarter Computing, a new approach to transform IT infrastructures, is based on three fundamental capabilities: Designed for Data, Tuned to the Task, and Managed in the Cloud. Smarter Computing enables IT infrastructures to handle multiple types of data for advanced management and analysis applications, by using IT components optimized to the workloads placed on them, to support a variety of service creation and delivery models. Meanwhile, leaders in every industry are adopting Smarter Computing to address the challenges they face and opportunities presented by a Smarter Planet, and IBM is helping some of them to implement the approach. Governments that are embracing Smarter Computing are delivering on their imperatives, and are realizing performance and economic benefits from their transformed systems. Examples from the Potsdam Institute for Climate Impact Research, and Caisse Nationale d'Allocations Familiales to Miami-Dade County and the City of Norfolk demonstrate the benefits of using this approach. These organizations have been able to modernize their IT infrastructures to accommodate new governance services, to extend powerful computing resources to other agencies and jurisdictions, and to identify and eliminate fraud in benefits programs while improving the outcomes of their citizen clients. At the same time, they are realizing significant capital expense, maintenance, and cost savings by using a Smarter Computing approach. AN OPPORTUNITY FOR A SMARTER GOVERNMENT This is a pivotal time for governments because the world is changing rapidly. Globalization is making government agencies and jurisdictions ever more socially, politically, culturally, and economically interdependent. Demographic compositions
  • 4. frost.com 4 Frost & Sullivan are shifting, with populations in some countries getting older, while others are getting younger. The natural environment is changing and leaders are realizing what the planet is able to provide, and what it can no longer tolerate. An assortment of threats, from armed conflicts that cross national borders, to terrorism, disease, and increasingly fierce natural disasters, are facing us. Underlying all this is an economic climate that dictates how governments adapt to the changing world. In the developed economies, diminished tax revenue and record deficits are stressing government funding and putting some in substantial deficits. Globally, the Organization for Economic Cooperation and Development (OECD) is estimating the aggregate budget deficit is 7.5 percent1 , while some countries are running deficits well into double digits. In the United States, the Government Accountability Office (U.S. GAO) has painted a stark picture of the situation, stating “the fiscal position of the (government) sector will steadily decline through 2060, absent any policy changes.”2 Some U.S. state and local governments are in a crisis as financial problems force them to suspend services, as recently happened in Minnesota.3 Governments are being forced to become leaner, more efficient, and more effective amid fiscal austerity. Governments in emerging market countries are obligated to modernize their operational models to meet citizen demands for new services, and some are implementing eGovernment systems as part of their strategy.4 This is enabling them to inject flexibility into their operations and quickly scale to expand the reach of public services when needed.5 China, for instance, is increasing its spending on eGovernment programs at the local and regional government levels6 , and similar spending is planned by the government of India7 and the Kingdom of Bahrain.8 In both settings, governments are transforming themselves to be smarter and take advantage of the forces of change. Jennifer Granholm, the governor of Michigan from 2003 to 2011, called on her peers to recognize and embrace this opportunity. “The 21st century economy is all about speed, access, intelligence, and efficiency. A 21st century government needs to be about the same things”.9 In this new world, traditional silo-based models of governance are shifting to newer collaborative models that enable government to rapidly and efficiently develop, implement, and manage services. These collaborative models place government in a system that facilitates the interaction between internal agencies and the external private sector, including communities, academia, nongovernmental organizations (NGOs), and foreign governments at the national level. At the core of this is a move toward sharing intelligence and analysis, with speed based on real-time data access and analysis, and capabilities that are optimized to specific domains or functions of government—all running at a high level of efficiency. “The 21st century economy is all about speed, access, intelligence, and efficiency. A 21st century government needs to be about the same things” —Jennifer Granholm, former governor of Michigan
  • 5. frost.com 5 Smarter Computing to Support 21st Century Governance The transformation to a 21st century government is guided by a set of four critical imperatives linking into multiple government domains, as illustrated in Figure 1. • Improve citizen and business outcomes: Enhance social and business services with a citizen-centric focus, while reducing operational costs and maximizing taxpayer value • Manage public resources effectively: Strengthen analysis, intelligence, and planning to improve program management and sharpen insight into and control over operations • Strengthen security and safety: Enable defense, law enforcement, and first responder agencies to improve situational awareness, speed decision- making, and increase speed of command • Ensure a sustainable environment: Use energy conservation and efficiency, improve transportation management, and develop renewable resources Guided by these imperatives, a government becomes a smoothly functioning system that 1) promotes economic growth by streamlining and simplifying processes and reporting requirements, 2) delivers citizen-centered services in offices that address multiple types of services, and 3) provides high-demand transactions over the Internet. These imperatives play out at all levels of government, and will be most acute at the urban level, where the interplay between stakeholders is particularly close in cities with steadily increasing population growth and density.10 Figure 1: Critical Imperatives Guiding Government Transformation Source: Frost & Sullivan analysis and IBM Improve Citizen & Business Outcomes • Social Benefits and Service Delivery • Education • Healthcare • Tax and Revenue Management • Transportation Management • Public Safety Ensure a Sustainable Environment • Transportation Management • Power Management • Water and Sewer Management Strengthen Security & Safety • Customs and Immigration • Border Management • Public Safety • Defense Network Centric Operations 21st Century Government Manage Public Resources Effectively • Social Benefits and Service Delivery • Education • Healthcare • Tax and Revenue Management • Transportation Management • Public Safety • Water and Sewer Management
  • 6. frost.com 6 Frost & Sullivan Governments that are transforming to collaborative models need an IT infrastructure that supports them. Traditional government IT infrastructures were designed on a “one agency-one architecture” silo model, mirroring the operational structure of government itself. These IT systems typically do not interoperate well, and as they are aggregated across agencies and jurisdictions, these silos of IT infrastructure can result in underutilized assets and redundant software, which increase capital and operational costs. Public sector CIOs and IT planners need to be creative when redesigning their IT infrastructures to reduce the administrative overhead while maintaining high levels of performance. In mature market countries, this presents a conundrum, because while many government CIOs recognize a need to transform their IT infrastructures, most are faced with IT budgets that are being cut back, remaining flat, or are at best growing only slowly.11 Here, the opportunity of a tight budget can stimulate creative solutions for increasing IT efficiency and effectiveness.12 As one state government CIO put it, “IT in my state was developed inside out, so that 19 state agencies have 19 data centers and every county has its own network... there’s a lot of money to be saved in just one network for all of them.”13 In emerging market countries, the CIO’s opportunity is to design systems according to state-of-the-art approaches. In both cases, government CIOs need support to transform their IT infrastructures, and Smarter Computing can guide them through the process. A SMARTER COMPUTING APPROACH TO SUPPORT 21st CENTURY GOVERNANCE Smarter Computing is a new approach to transform IT infrastructures to perform better in today’s complex and interconnected world. This approach is based on three fundamental capabilities: • Designed for Data means designing an IT infrastructure to harness all available information, including real-time streaming data, to unlock insights for better decision-making. It is about extending beyond traditional sources of data to generate insights by leveraging new forms of information, which can be incorporated into a government organization’s information supply chain to create a single version of the truth, simplify data security, and get insights from huge volumes of data, while reducing operating costs. • Tuned to the Task means matching workloads to systems that are optimized to the workload characteristics, including transaction processing, database management, business intelligence, analytics, managing cross-domain communications, and enabling complex modeling. Optimizing systems to the workloads enables greater performance and efficiency, helping government CIOs working under constrained IT budgets to deliver services cost effectively. “IT in my state was developed inside out, so that 19 state agencies have 19 data centers and every county has its own network. . . . there’s a lot of money to be saved in having just one network for all of them.” —U.S. state government CIO
  • 7. frost.com 7 Smarter Computing to Support 21st Century Governance • Managed in the Cloud means evolving government data centers to support a variety of business models and service delivery methods that bring greater efficiencies out of existing IT assets, deploy resources flexibly and quickly, and reduces costs. Ultimately, it increases efficiency, rapidly delivers services, and adds more degrees of freedom to government CIOs to deliver on eGovernment initiatives. Smarter Computing supports government IT infrastructure transformation by creating a technology framework to support the IT applications and operations that deliver on the four key imperatives. These applications and operations revolve around how data is collected, processed, analyzed, stored, and shared. The IT infrastructures running these applications are subjected to various types of workloads and processing tasks (as summarized in Figure 2), which cannot be effectively or efficiently handled by traditional government IT infrastructures. Figure 2: 21st Century Government Imperatives and their IT Infrastructure Workloads Source: Frost & Sullivan analysis Government CIOs can use Smarter Computing to design IT infrastructures to handle massive amounts and varieties of data needed by applications and operations. Different workloads have different characteristics, and by emphasizing optimized systems Smarter Computing encourages efficient infrastructure designs that are flexible enough to meet peak level workload demands, and enable Back Office Transaction Processing, Simulations & Analytics, Information Management Edge of System Sensors & Controls, Cross-System Data Feeds, Communications Workloads on the IT Infrastructure Government User Integrated Access & Operations Improve Citizen & Business Outcomes Social Benefits and Service Delivery Education Healthcare Tax and Revenue Management Transportation Management Public Safety Manage Public Resources Effectively Social Benefits and Service Delivery Education Healthcare Tax and Revenue Management Transportation Management Public Safety Water and Sewer Management Strengthen Security & Safety Customs and Immigration Border Management Public Safety Defense Network Centric Operations Ensure a Sustainable Environment Transportation Management Power Management Water and Sewer Management Front Office Business Process Management, Database Management, Business Intelligence ProcessAutomation Event Processing Simulation Models Data Analysis Transaction Processing Data Storage And Management Physical World Interfaces (Sensors, Systems, Devices) & Data Acquisition Control Data CCTV and video infrastructure Energy supply and management Public and private buildings Transportation infrastructure and services Public service staff and resources Water supply and management Other stakeholders (e.g., agencies, NGOs, private sector) Smarter Computing supports Smarter Government by creating a technology framework to support a collaborative, shared-service operational model that delivers on the four key imperatives of 21st century government.
  • 8. frost.com 8 Frost & Sullivan resources to be deployed elsewhere during off-peak periods. Smarter Computing’s cloud capabilities facilitate the rapid deployment of new services, and can integrate services and data across government agencies to provide a unified view of insights and enhance collaboration. Importantly, the approach gives CIOs control over capital and operational expenditures because existing IT infrastructures can be transformed, and need not be completely replaced. By using Smarter Computing, government CIOs can transform their IT infrastructures to effectively and efficiently enable the imperatives of 21st century governance. Improving Citizen and Business Outcomes Improving citizen and business outcomes relies on a set of applications and operations to provide the right level of services to citizens and businesses.These include: • Shifting records from paper to digital formats • Creating and maintaining an accurate, single view of the citizen or business entity • Support citizen or business self-service • Using analytics to ensure proper citizen-to-service match • Using analytics to detect fraud, and • Ensuring data security and access according to established protocols In social benefits administration, for instance, a Smarter Computing approach would prepare an IT infrastructure to handle all the data for its citizen clients, wherever and in whatever format it resides. As well, it would enable master data management (MDM) techniques to create the single-view record of the citizen, provide authorized access to parts of that record across an agency, and apply analytics to match the appropriate level of benefits with the citizen and to detect instances of fraud, all while ensuring the identity of the citizen and his or her personal data is kept secure. This can improve the level of services delivered to the citizen, and improve the management of public resources allocated to an agency. The Alameda County Social Services Agency, for example, found these benefits when it implemented Smarter Computing to create a single view of its clients, and applied analytics to its benefits payment operations to ensure its clients were given the proper level of benefit assistance. As a result the agency saves almost $25 million annually by reducing benefit overpayments.14 Manage Public Resources Effectively Managing public resources effectively means not only improving data management and analysis, but also improving the efficiency with which services are created and delivered, which are realized in lower costs.This imperative uses the same set of IT applications and operations as does improving citizen and business outcomes, and The Alameda County Social Services Agency implemented a Smarter Computing approach and realized almost $25 million in savings annually. —Nucleus Research
  • 9. frost.com 9 Smarter Computing to Support 21st Century Governance adds asset management, tracking, and maintenance, and analytics applications to ensure a proper resource to service match. The efficiency advantage of Smarter Computing for this imperative lies in using systems optimized to the various IT workloads, and because Smarter Computing infrastructures are cloud-enabled they can operate with multiple delivery models, including shared-service arrangements. Moreover, Smarter Computing enables consolidation and virtualization, allowing flexible and scalable resource deployment in the event of unanticipated or unknown workload demands. Cloud capabilities also improve the economics of service creation and delivery. North Carolina State University (NCSU), for instance, adopted this approach to address an unanticipated growth in demand for its computing resources. By using Smarter Computing, NCSU was able to extend its resources to other educational institutions in North Carolina, increasing the average number of students served per license by 150 percent without incurring any additional capital expenses.15 Strengthen Safety and Public Security Strengthening safety and public security involves the paper-to-digital-record shift, single view, and data security applications and operations that are in the previous imperatives, as well as others, including: • Analysis of streaming data for event detection and prediction • Communication coordination across jurisdictions and agencies • Analysis for real-time incident detection and incident and event prediction, and • Cross-domain data feeds and sharing Increasing traffic safety and providing rapid responses to traffic incidents, for instance, relies on accurate data collected from a variety of sources, and making it available for analysis to enable security commanders to evaluate the situation, assess the risks to the public and officers, and then deploy the appropriate personnel. Traditional methods of data collection often involve manual processes, and the data is seldom easily accessible or amenable to rapid analysis. A Smarter Computing approach to increasing traffic safety would enable a single IT platform to centralize traffic data collection, using automated sensors and video feeds, and integrate analysis and reporting applications available to all commanders and officers who need to act on the data. To illustrate this, the Inner Mongolia Public Traffic Police Detachment, a governmental traffic administration agency serving the citizens of Inner Mongolia in northern China, implemented Smarter Computing to enhance its ability to respond to traffic data processing. By using the approach, the agency reduced data collection times from an average of 10 days to only four hours—a 95 percent improvement. Moreover, because traffic data collection is accelerated, the agency is able to reduce its monthly processing costs and improve traffic services and citizen satisfaction.
  • 10. frost.com 10 Frost & Sullivan Ensuring a Sustainable Environment The governance imperative of ensuring a sustainable environment complements the other imperatives. Often, concerns over making sure large-scale physical infrastructures, the agencies that manage them, and the citizens they serve all operate to minimize impacts on the environment and conserve natural resources. Applying Smarter Computing to the digital infrastructures that run the physical infrastructures can help governments protect the environment. The IT applications and operations involved here include 1) citizen self-service; 2) asset management, tracking, and maintenance; 3) the analysis of streaming data for event detection and prediction; 4) cross-domain data feeds; and 5) communication coordination across agencies. The requirements for extreme weather event prediction and warnings used by public safety agencies, for instance, place heavy workloads for database management, analytics, sensors and controls, communications, and complex modeling on a weather agency’s IT infrastructure. Because of the cost in lives, property, and disruption that a severe weather event can cause, it is critical that predictions are accurate and provided on a timely basis across multiple agencies. The number of agencies and the volume and variability of the data needed make this massively complex. Traditional infrastructures cannot adequately handle the multiple, interdependent workloads tied to performing the service without large investments in IT equipment, energy to power and cool it, data center floor space to house it, and manpower to maintain it. The Potsdam Institute for Climate Change in Germany (Potsdam Institut fur Klimafolgenforschung, PIK) models and predicts climate for the German government with a consideration for extreme weather events that arrive with little warning and last for comparatively short durations. The extremely complex calculations that PIK needs to perform this service require an IT infrastructure that delivers extremely high performance and reliability, while cost-effectively managing huge amounts of weather data. PIK was unable to provide this service efficiently using its traditional IT architecture. Instead, PIK used a Smarter Computing approach to design a workload-optimized, multisystem IT architecture able to provide the crucial prediction and advanced warnings capabilities at 30 times the capacity of its traditional architecture, while consuming 25 percent less energy than would have been the case.16 MEETING GOVERNMENT IT NEEDS WITH SMARTER COMPUTING A Smarter Computing IT infrastructure is designed to handle all types of data to improve insight and management of government domain operations. Such an infrastructure also is optimized to efficiently handle the complex workloads placed on it, and has the flexibility to support multiple service delivery models in a 21st century government. Government agencies that are embracing Smarter Computing are delivering on the imperatives of 21st century government, and are enjoying the benefits from using the approach. The Potsdam Institute for Climate Change uses Smarter Computing to provide advance warning of extreme weather events at 30 times the performance and 25 percent less energy consumed than traditional IT architectures would allow. —IBM Case Study
  • 11. frost.com 11 Smarter Computing to Support 21st Century Governance Caisse Nationale d'Allocations Familiales: Improving Citizen Outcomes and Increasing Environmental Sustainability Caisse Nationale d'Allocations Familiales (CNAF) is a French government agency providing social benefits and assistance to families living in France and its overseas territories. The agency wanted to improve the speed at which it handles benefits processing, sharpen its visibility into applicants’ requirements, and modernize its operations by shifting much of its administration from paper-based to digital processes. CNAF worked with IBM to apply Smarter Computing to redesign its IT infrastructure to better cope with disparate forms of benefits data, to optimize data centers to speed the processing of benefits information, and to put all services online to better meet the needs of its clients. Smarter Computing not only helps CNAF improve the outcomes of its clients, but also helps minimize its impact on the environment. Growing Workloads Slow Services for Citizens The CNAF is a large social services agency employing 30,000 people at 123 locations that provides benefits and assistance to 12 million families, students, and low-income individuals, and manages more than €50 billion in public resources annually. For most of its history, CNAF has relied on a painstaking set of processes to examine a number of eligibility factors for each case and matching them to the appropriate level of benefits, while checking other accounting and legal practices to limit fraud. This manual, paper-based process involves multiple departments, and requires applicants to make several in-person visits to crowded agencies, and then wait up to four months to have their applications confirmed. Moreover, the agency’s reliance on paper forms places a burden on the environment. As the number of applications increased in the wake of the economic recession, CNAF needed a way to slash the processing time and efforts, while vastly extending the access to services beyond the traditional agency locations, and still provide a high level of service and responsibly to manage a significant amount of public funds. Implementing a Holistic Smarter Computing Architecture Recognizing a need to build an advanced IT infrastructure to improve the outcomes of its citizens and better manage the public resources, CNAF teamed with IBM to implement a Smarter Computing approach across its infrastructure. The core of the initiative was to implement a comprehensive and standardized portal structure to provide easier, faster and more accurate access to eligibility information and processing for citizens and agency staff. IBM designed the architecture to handle the disparate information submitted online by accepting electronic data and scanned forms from Web browsers and more than 900 new interactive kiosks deployed across France and its territories. The core of the portal is built around an IBM mainframe optimized to handle all this disparate data, yet be flexible enough to handle 35 million transactions every day, and support peak workloads of 2.2 million page view requests. The CNAF implemented a smarter Computing approach to its social benefits processing, cutting wait times from four months to one week, reducing costs, and improving its environmental sustainability.
  • 12. frost.com 12 Frost & Sullivan “In addition to providing the speed, reliability and scalability we needed to support our enterprise business intelligence environment, the system fit within our budget, which was a key deciding factor.” —Jaci Newmark, project lead, enterprise business intelligence architecture, Miami-Dade County Vastly Improving Citizen Outcomes while Cutting Costs CNAF soon saw the benefits of its new Smarter Computing system. By increasing the access to information and enabling citizens to submit application information online, the agency was able to immediately begin matching citizen needs to social services, thereby speeding eligibility processing and enabling staffers to make more informed decisions and reducing the potential for fraud. This reduced the need for citizens to visit agency offices, making the process more convenient, as well as substantially cutting confirmation wait times from four months to as little as one week. Additionally, CNAF was able to reduce real estate costs through the use of the new kiosks, and by moving from a paper-based system to a digital system, it reduced costs and the environmental footprint associated with manual processing of paper forms. Miami-Dade County: Managing Public Resources More Effectively A large county-level government in the United States needed to support a growing need for information sharing across its many departments. Building on an established platform, Florida’s Miami-Dade County worked with IBM to make its IT architecture smarter, and gained a powerful new business intelligence platform. In addition to increasing the county’s business intelligence functionality and scalability, the solution preserved investments in existing systems.This enabled Miami-Dade to make better use of scarce public resources. Advanced Business Intelligence Capabilities are Essential across Multiple Organizations With a population of nearly 2.5 million citizens, and an area of more than 2,000 square miles, Miami-Dade County is the largest county-level unit in Florida. Even with the recent economic recession, the county’s population grew by more than 10 percent from 2000 to 2010. As would be expected of a county with this profile, all organizations within the county government, from first responders to county parks, amass an extensive amount of data. Beginning in 1999, the county’s IT organization was using IBM business intelligence analytic applications to provide business intelligence to its internal stakeholder agencies.The analytics soon became strategic assets to the county, but the growth of demand driven by the expanding population began to outpace the IT systems’ ability to support the corresponding increase in information sharing between agencies. At the same time, funding in a state hard hit by the recession meant that existing IT investments had to be preserved as best as possible. This led the county to search for a solution to provide the advanced business intelligence capabilities needed, building on the systems in place. Enhancing a Current System to Handle Advanced Analytic Capabilities Because balancing the need for new analytic capabilities with preserving investments in current IT system was a primary concern, Miami-Dade County turned again to IBM to enhance its infrastructure to handle the increased data
  • 13. frost.com 13 Smarter Computing to Support 21st Century Governance feeding into its business intelligence, data management, and transaction processing workloads. The county’s IT planners and IBM enhanced the existing IT architecture with two new higher-capacity mainframe platforms, and upgraded the business intelligence software to ensure very high reliability for critical agency functions, particularly fire and police services. The project team built the enhancements around the need for a real-time situational awareness, and the new system enables users to view reports on a dashboard interface. The implementation plan also extended the data management and analysis capabilities to other departments beyond the original group of users, such as jails and power and IT operations. Cost Effectively Extending the Capabilities of Business Intelligence The smarter IT infrastructure that IBM developed supported Miami-Dade County’s requirements to extend the capabilities of its business intelligence system, managing the resources of the county much more efficiently. This is helping the county to make the transition to a more modern, collaborative, and smarter structure. It has already provided numerous governmental agencies the insight and prediction capabilities of an advanced business intelligence system. Because IBM was able to build from existing systems, the county was also able to become smarter within its tight budget by saving on hardware and software costs. All of this provides the foundation for the county to continue to expand its business intelligence capabilities across the entire governmental organization. The City of Norfolk: Strengthening Public Safety and Security The City of Norfolk, VA, is a typical example of a city government with an IT infrastructure that was insufficient for its needs. The city’s disparate IT systems were inefficient, expensive to maintain, and could not accommodate the city’s desire to introduce new services for its citizens. Norfolk’s IT planners and IBM collaborated to optimize its IT systems by transforming the city’s IT architecture to support new data-intensive workloads for the police and other departments, which helps the city to strengthen public safety and security. An Antiquated IT Infrastructure Impedes Growth With more than 242,000 residents, Norfolk is the second-largest city in Virginia. The city’s IT department, charged with storing and maintaining vast amounts of complex data in a dynamic 24x7 environment, began to see exponential growth in data volumes, and the existing storage facilities were rapidly running out of space. This was jeopardizing the impending launch of the city’s new major public safety initiatives, anticipated to be highly data-intensive, such as storing police car video data. The multiple storage and system devices were also power-hungry, which added to the system’s operational costs.The city’s IT department decided it needed to transform its IT infrastructure to accommodate the transaction processing, database management, analytics, and communications workloads to deliver the new public safety services.
  • 14. frost.com 14 Frost & Sullivan Tuning the IT Infrastructure to Handle a Data-Intensive Environment Norfolk turned to IBM to create a solution that would not only accommodate existing data volumes from the various city departments at their current rate of growth, but also scale quickly and easily to meet unanticipated needs. Of particular importance was the need for the IT architecture to handle the new public services that would generate massive amounts of data. The centerpiece of this was integrating its storage infrastructure on a single IBM storage system, enabling automated processes, improving performance and security, and reducing energy consumption across the entire system. By optimizing the infrastructure to handle the new workloads envisioned, IBM and Norfolk consolidated storage needs from a wide variety of mission-critical, data-intensive applications and systems onto a single platform. Supporting New Initiatives, While Boosting Performance and Lowering Costs Norfolk’s new storage system was optimized to handle the existing data sources, and to quickly and easily provision additional storage to support its new service initiatives.These include transportation services designed to improve ground traffic through automated parking alerts and payment options, as well as public safety services, such as in-car video surveillance for the city’s police cruisers. Beyond helping the city fulfill its mandates to improve citizen outcomes and strengthen public safety, the Smarter Computing infrastructure helped it to more effectively manage its scarce financial resources and improve environmental sustainability. Storage performance was increased by 40 percent, while power consumption dropped by 50 percent. All of this helped the city reduce its operating costs, deliver a higher level of services, and increase its ability to protect public safety. A SMARTER WAY TO BUILD BETTER GOVERNMENT Public sector CIOs and IT managers are painfully aware that policy makers, government workers, and citizens and businesses are demanding more from the IT systems under their administration. As the world changes, models of government are transforming from traditional silo models, to being more collaborative. Government CIOs who are faced with tight IT budgets, as well as those who are making a leap into the digital age, need a smarter way to collect, analyze, and present the enormously rich and complex data that underlie the imperatives guiding this transformation. The application and operational requirements to realize these imperatives come with substantive IT workloads, and traditional IT infrastructures that were designed around a one-function-one-hardware system principle cannot cope with these workloads. In today’s austere economic climate, government CIOs have the additional requirement for their IT infrastructures to reduce operating costs, be flexible and scalable to deploy computing resources where they are needed, and to ease collaboration across agencies, partners, the private sector, and citizens. The City of Norfolk used Smarter Computing to optimize its storage system to support its new public safety initiatives. Storage performance was increased by 40 percent while power consumption dropped by 50 percent.
  • 15. frost.com 15 Smarter Computing to Support 21st Century Governance The Smarter Computing approach can guide government IT departments along the path of establishing the IT infrastructure to support the imperatives of a smarter, 21st century government. A number of municipal, regional, and national governments around the world are beginning to realize the benefits of implementing a Smarter Computing approach. Government CIOs may wish to investigate using a Smarter Computing approach if they are considering: • Modernizing large scale public programs—such as tax and revenue management, education, social benefits and services, and healthcare—to improve the level of services provided, and enabling agents to reduce unnecessary waste of public funds; • Optimizing IT infrastructures to support new policing services, streamline customs and border management processes, and enhance situational awareness and personnel safety in security and defense operations; • Revitalizing existing water, transportation, and power networks with advanced IT capabilities to improve their operation and capacity and extend the life of public assets From the above-mentioned cases of Norfolk, Inner Mongolia, NCSU, Miami- Dade, Alameda County and CNAF, Smarter Computing is proving to be a successful and valuable approach to help governments meet the needs of their citizens responsibly and efficiently.
  • 16. frost.com 16 Frost & Sullivan 1 Organization for Economic Cooperation and Development (OECD). “OECD Economic Outlook”. www.oecd.org (25 May 2011). 2 United States Government Accountability Office (GAO), “State and Local Governments’ Fiscal Outlook: April 2011 Update, Publication GAO-11-495SP (6 April 2011). 3 Davey, Monica, “Minnesota Government Shuts in Budget Fight,” New York Times Online Edition, http://wwwnytimes.com/2011/07/01/us/01minnesota.html (30 June 2011). 4 United Nations Public Administration Programme, “United Nations E-Government Survey 2010”, http://unpan1.un.org/intradoc/groups/public/documents/un/unpan038851.pdf. 5 Ibid. 6 Government of China, “Report on the Implementation of the 2010 Plan for National Economic and Social Development and on the 2011 Draft Plan for National Economic and Social Development. Adopted on March 14, 2011, at the Fourth Session of the Eleventh National People’s Congress”, http://english.gov.cn/official/2011-03/17/content_1826561.htm. 7 Mukherjee, Pranab, Minister of Finance, Government of India, “Budget Speech for 2011-2012”, Speech, http://indiabudget.nic.in (28 February 2011). 8 Kingdom of Bahrain eGovernment Authority, http://www.ega.gov.bh/en/strategy.php, (7 July 2011). 9 Von Drehle, David, “In the U.S., Crisis in the Statehouses,” Time Magazine, www.time.com/time/magazine/article/0,9171,1997457,00.html, (17 June 2010). 10 Demographia, “World Urban Areas: Population Projections (2010), http://www.demographia.com/db-wuaproject.pdf, (10 June 2011). 11 “Open Government Sites fall Prey to Budget Cuts.” InformationWeek Online, http://www.informationweek.com/news/government/policy/229625627, (25 May 2011). 12 National Association of State Chief Information Officers (NASCIO), “The 2010 State CIO Survey: Perspectives and Trends from State Government IT Leaders”, (August 2010). 13 Ibid. 14 Nucleus Research, “ROI Case Study: IBM SSIRS Alameda County Social Services Agency”, Document K12, (August, 2010). 15 North Carolina State Department of Computer Science, “North Carolina State University and IBM Extend Access to Educational Resources to the World through Cloud Computing” Press release, CSC News, (24 October 2008). 16 IBM, Inc. “The Potsdam Institute for Climate Impact Research takes on Smarter Climate Research”, Press release, http://www-01.ibm.com/software/success/cssdb.nsf/CS/DLAS- 7WVKDS?OpenDocument&Site=default&cty=en_us, (18 October 2009). This report was developed by Frost & Sullivan with IBM assistance and funding.This report may utilize information, including publicly available data, provided by various companies and sources, including IBM. The opinions are those of the report’s author, and do not necessarily represent IBM’s position. XBL03008-USEN-00 REFERENCES
  • 17. 877.GoFrost • myfrost@frost.com http://www.frost.com Silicon Valley 331 E. Evelyn Ave. Suite 100 Mountain View, CA 94041 Tel 650.475.4500 Fax 650.475.1570 San Antonio 7550 West Interstate 10, Suite 400, San Antonio, Texas 78229-5616 Tel 210.348.1000 Fax 210.348.1003 London 4, Grosvenor Gardens, London SWIW ODH,UK Tel 44(0)20 7730 3438 Fax 44(0)20 7730 3343 ABOUT FROST & SULLIVAN Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth.The company's TEAM Research, Growth Consulting, and GrowthTeam Membership™ empower clients to create a growth-focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 40 offices on six continents. For more information about Frost & Sullivan’s Growth Partnership Services, visit http://www.frost.com. For information regarding permission, write: Frost & Sullivan 331 E. Evelyn Ave. Suite 100 Mountain View, CA 94041 Auckland Bangkok Beijing Bengaluru Bogotá Buenos Aires Cape Town Chennai Colombo Delhi / NCR Dhaka Dubai Frankfurt Hong Kong Istanbul Jakarta Kolkata Kuala Lumpur London Mexico City Milan Moscow Mumbai Manhattan Oxford Paris Rockville Centre San Antonio São Paulo Seoul Shanghai Silicon Valley Singapore Sophia Antipolis Sydney Taipei Tel Aviv Tokyo Toronto Warsaw Washington, DC