New Technologies for Public Financial Management May 2007 ICGFM
Preface <ul><li>Slides have been updated with the script used for ICGFM (see notes pages) </li></ul><ul><li>Additional inf...
government Integrated Financial Information Management  Systems (IFMIS) of tomorrow How computer technology trends today a...
Agenda <ul><li>Market and technology forces affecting Public Financial Management (PFM) </li></ul><ul><li>Technology and P...
ICT makes a country’s economy more efficient  and globally competitive, improves health and  education  services,  and cre...
IFMIS in Government Today <ul><li>Typical Solutions </li></ul><ul><ul><li>Custom-developed or  bespoke </li></ul></ul><ul>...
Technology in Context Technology IFMIS Public Financial Management Modernization and Reform Government Objectives
Technology Vendor Viewpoint IFMIS Public Financial Management Modernization and Reform Government Objectives Technology
Reality <ul><li>Reform comes  first </li></ul><ul><li>An IFMIS must support  on-going   PFM  modernization </li></ul><ul><...
Government IFMIS of tomorrow… The four computer and market technology forces of today that are defining
1. Consolidation
2. Disintegration
3. Innovation
4. Integration
10 Technology Trends <ul><li>Consolidation </li></ul><ul><ul><li>Enterprise software consolidation </li></ul></ul><ul><ul>...
with government and development trends Not all technology and market trends are consistent
ERP systems have become bloated  ‘ understructures’ that have become  too expensive to maintain. Bruce Richardson,  AMR Re...
What is Enterprise Software? <ul><li>Many acronyms: </li></ul><ul><ul><li>ERP (Enterprise Resource Planning) </li></ul></u...
Enterprise Software Market ERP CRM SCM BPM CPM CM
Siebel Retek  PeopleSoft  JDEdwards  Vantive  Triversity  SSAGlobal  Baan  Marcam  E-piphany  Ironside  Mapics  Lilly  Gea...
Drivers for Consolidation <ul><li>Lack of  organic  growth </li></ul><ul><li>Shareholders want companies to invest in more...
Current Situation <ul><li>Survival of the fittest? </li></ul><ul><li>Pressure  to enter new horizontal and vertical market...
The growth of free, open-source software presents  developing countries with an  opportunity to escape from technological ...
Open Source in Government Federal Government  - DOD, NSA, NASA, NIST, FEMA, USAID, DOL, National Weather Service, FAA Stat...
Drivers for Open Source <ul><li>Software commoditization  - lack of incremental benefits in commercial  infrastructure  so...
Current Situation <ul><li>Rapid uptake in emerging countries </li></ul><ul><li>Proven performance and reliability </li></u...
Middleware – the layer of software  used to connect two applications or to connect an application to the network –  is app...
Software Stack Business Applications Middleware Database Operating System Server Network Storage Management
Drivers for Commoditization <ul><li>Standards   =  </li></ul><ul><ul><li>Ability to interchange middleware </li></ul></ul>...
Current Situation <ul><li>Accelerated Commoditization </li></ul><ul><li>Price pressure on middleware </li></ul><ul><li>Mid...
including political devolution, de-concentration,  delegation, and transfer  to non-governmental organizations,  promotes ...
Devolution Delegation De-concentration Divestment
Budgets Municipal Gov’t Municipal Gov’t Municipal Gov’t Provincial Gov’t National Government Ministry 1 Virements Informat...
Reporting National Government Provincial Gov’t Ministry 1 Municipal Gov’t Municipal Gov’t Municipal Gov’t Outturn Expendit...
Drivers for De-centralization <ul><li>Administrative Decentralization </li></ul><ul><li>Improve government efficiency and ...
Current Situation <ul><li>Conflicts  with computing trend to integration (centralization) </li></ul><ul><li>Clear trend:  ...
Success with BPM also requires a  culture of real-time management .. and  may need a separate  process center of excellenc...
What is  Business  Process Management (BPM)? Workflow Integration Design and Development Business Activity Monitoring Orch...
Industry Drivers for BPM <ul><li>Maximizing efficiency  - workflow and integration enables  greater automation </li></ul><...
Current Situation of BPM <ul><li>Established in  compliance  solutions </li></ul><ul><li>Leveraged in  process e-governmen...
SaaS benefits are crystallizing,  but chaos still abounds Robert Bois, Aberdeen Group   June 2006 6. Software as a Service...
What is Software as a Service (SaaS)? <ul><li>Applications are hosted externally: e.g. Salesforce </li></ul><ul><li>Typica...
Drivers for SaaS <ul><li>High cost to maintain complex software and infrastructure </li></ul><ul><ul><li>Licenses </li></u...
Current Situation <ul><li>Increasing as a % of the market (from 0 to..) </li></ul><ul><li>Uneven adoption : high in custom...
 
No matter how you brand the hype,  get ready for a quantum leap in the way  the Web works and —  more importantly —  how i...
What is Web 2.0? <ul><li>An umbrella term for second wave of internet innovation </li></ul><ul><ul><li>Web as platform + d...
Web 2.0 is the network as platform,  spanning all connected devices… creating network effects through an  &quot;architectu...
 
 
 
Drivers for Web 2.0 <ul><li>The Web as a Platform  – using the internet as an API for new applications </li></ul><ul><li>R...
Web 2.0 in Government <ul><li>Norway has the first Web 2.0 Government  –  eNorway 2009  initiative </li></ul><ul><li>US Go...
Current Situation <ul><li>Consumer market driving business applications </li></ul><ul><li>Corporations adopting blogging t...
 
New wireless technology is resulting in  innovative business models  and holds the promise of connecting poor users,  exte...
What is Wireless Government? <ul><li>Light e-government  using mobile telephone technology </li></ul><ul><ul><li>Mobile te...
Drivers for Wireless Government <ul><li>Proven voice and text technologies </li></ul><ul><li>Mobile telephone is the tool ...
Current Situation <ul><li>Early adoption in government </li></ul><ul><li>Exposing IFMIS capabilities via wireless devices ...
Agencies are addressing goals of decreasing  administrative burdens, lowering costs, enabling  better informed decision ma...
What is Corporate Performance Management? Scorecarding Reporting OLAP Data Mining Budget  Planning
Drivers for Corporate Performance Management <ul><li>Too much information </li></ul><ul><li>Business Intelligence tools su...
Corporate Performance Objectives <ul><li>“ Key Performance Indicators” (KPIs) and “scorecards” are simple to understand </...
Government Performance Management  <ul><li>Business </li></ul><ul><li>“ Bottom Line” is clear:  profitability  </li></ul><...
Performance and Budget Budget Execution Budget Planning Government Objectives Scenario Planning Budget Forecasting Perform...
Inputs, Outputs, Outcomes <ul><li>Objective </li></ul><ul><ul><li>Government development goal </li></ul></ul><ul><li>Input...
Current Situation <ul><li>Mixed </li></ul><ul><ul><li>Capacity issues </li></ul></ul><ul><ul><li>Improvements in MTEF </li...
SOA will make today’s ERP systems  look like yesterday’s mainframe apps.  Bruce Richardson,  AMR Research   August 2006 10...
SOA Drivers <ul><li>Promise of re-use : write once, use many times </li></ul><ul><li>Component-based architectures  – prom...
Web Services register discover bind
Current Situation <ul><li>Proven practical in Web 2.0 </li></ul><ul><li>Business software: </li></ul><ul><ul><li>Early & e...
Conclusions
Impact on the IFMIS of Tomorrow <ul><li>Immediate Impact : </li></ul><ul><ul><li>Consolidation – Business Process Manageme...
Modular
and Modular
modular, de-centralized & integrated non-monolithic & multiple vendors wired & wireless commodity & innovative The Governm...
extend core IFMIS decentralize measure
Citizen Centric citizen
more choices, better choices, proven choices, sustainable choices. Governments will have:
dhadden@freebalance.com
Conceptual Analysis <ul><li>Best tools and authors to analyze complex trends in high technology: </li></ul><ul><ul><li>Geo...
Recommended Links <ul><li>The Future of Software:  http://www.forrester.com/Teleconference/Previous/Overview/1,5158,1411,0...
Recommended Links <ul><li>Ten Trends to Watch in 2006:  http:// www.mckinseyquarterly.com/article_page.aspx?ar =1734&L2=21...
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  • Government Financial Management System Of Tomorrow

    1. 1. New Technologies for Public Financial Management May 2007 ICGFM
    2. 2. Preface <ul><li>Slides have been updated with the script used for ICGFM (see notes pages) </li></ul><ul><li>Additional information sources slides have been added at the end of the presentation </li></ul><ul><li>For discussion, clarification, or expansion of concepts or desire to have custom presentation provided via WebX or in-person, e-mail me at [email_address] </li></ul>
    3. 3. government Integrated Financial Information Management Systems (IFMIS) of tomorrow How computer technology trends today are defining
    4. 4. Agenda <ul><li>Market and technology forces affecting Public Financial Management (PFM) </li></ul><ul><li>Technology and PFM reform </li></ul><ul><li>10 key technology and market trends </li></ul><ul><li>Conclusions </li></ul>
    5. 5. ICT makes a country’s economy more efficient and globally competitive, improves health and education services, and creates new sources of income and employment for poor people. World Bank, April 2006
    6. 6. IFMIS in Government Today <ul><li>Typical Solutions </li></ul><ul><ul><li>Custom-developed or bespoke </li></ul></ul><ul><ul><li>Enterprise Resource Planning (ERP) </li></ul></ul><ul><ul><li>Specialized government IFMIS applications </li></ul></ul><ul><li>Typical Difficulties </li></ul><ul><ul><li>Inflexibility to adapt to reform and decentralization </li></ul></ul><ul><ul><li>Sustainability by government ICT staff </li></ul></ul><ul><ul><li>Integration between budget execution and accounting </li></ul></ul><ul><ul><li>Integration between front-office and back-office </li></ul></ul>
    7. 7. Technology in Context Technology IFMIS Public Financial Management Modernization and Reform Government Objectives
    8. 8. Technology Vendor Viewpoint IFMIS Public Financial Management Modernization and Reform Government Objectives Technology
    9. 9. Reality <ul><li>Reform comes first </li></ul><ul><li>An IFMIS must support on-going PFM modernization </li></ul><ul><li>Technology enables the IFMIS </li></ul><ul><li>Technology is not government modernization </li></ul>
    10. 10. Government IFMIS of tomorrow… The four computer and market technology forces of today that are defining
    11. 11. 1. Consolidation
    12. 12. 2. Disintegration
    13. 13. 3. Innovation
    14. 14. 4. Integration
    15. 15. 10 Technology Trends <ul><li>Consolidation </li></ul><ul><ul><li>Enterprise software consolidation </li></ul></ul><ul><ul><li>Open source software </li></ul></ul><ul><ul><li>Commoditization of the software stack </li></ul></ul><ul><li>Disintegration </li></ul><ul><ul><li>Decentralization </li></ul></ul><ul><ul><li>Business process management </li></ul></ul><ul><ul><li>Software as a service (SaaS) and shared services </li></ul></ul><ul><li>Innovation </li></ul><ul><ul><li>The web as a platform - Web 2.0 </li></ul></ul><ul><ul><li>Wireless government </li></ul></ul><ul><li>Integration </li></ul><ul><ul><li>Corporate Performance Management (& Government Performance Management) </li></ul></ul><ul><ul><li>Service Oriented Architectures (SOA) </li></ul></ul>
    16. 16. with government and development trends Not all technology and market trends are consistent
    17. 17. ERP systems have become bloated ‘ understructures’ that have become too expensive to maintain. Bruce Richardson, AMR Research August 2006 1. Market consolidation
    18. 18. What is Enterprise Software? <ul><li>Many acronyms: </li></ul><ul><ul><li>ERP (Enterprise Resource Planning) </li></ul></ul><ul><ul><li>SCM (Supply Chain Management) </li></ul></ul><ul><ul><li>CRM (Customer Relationship Management) </li></ul></ul><ul><ul><li>CM (Content Management) </li></ul></ul><ul><ul><li>CPM (Corporate Performance Management) </li></ul></ul><ul><ul><li>BPM (Business Process Management) </li></ul></ul><ul><ul><li>and many others </li></ul></ul>
    19. 19. Enterprise Software Market ERP CRM SCM BPM CPM CM
    20. 20. Siebel Retek PeopleSoft JDEdwards Vantive Triversity SSAGlobal Baan Marcam E-piphany Ironside Mapics Lilly Geac JDA Extensity Comshare Datastream FRX GreatPlains Navision Damgaard Axapta Soloman Scala Intentia Ross Pivotal Accpac Best Mas 90/200 Peachtree Timerline Microsoft SAP Infor Oracle Sage Lawson Epicor Chinadotcom Siebel Retek PeopleSoft JDEdwards Vantive Triversity SSAGlobal Baan Marcam E-piphany Ironside Mapics Lilly Geac JDA Extensity Comshare Datastream FRX GreatPlains Navision Damgaard Axapta Soloman Scala Intentia Ross Pivotal Accpac Best Mas 90/200 Peachtree Timerline
    21. 21. Drivers for Consolidation <ul><li>Lack of organic growth </li></ul><ul><li>Shareholders want companies to invest in more growth </li></ul><ul><li>Perception that big = winning </li></ul><ul><li>Maintenance business model </li></ul><ul><li>Buy customers </li></ul><ul><li>Own customers: barriers to entry </li></ul><ul><li>Lack of value for upgrading </li></ul>
    22. 22. Current Situation <ul><li>Survival of the fittest? </li></ul><ul><li>Pressure to enter new horizontal and vertical markets </li></ul><ul><ul><li>New stack wars </li></ul></ul><ul><ul><li>SME market </li></ul></ul><ul><ul><li>Emerging markets </li></ul></ul><ul><li>Overlapping technology portfolio </li></ul><ul><li>Consolidators attempting economies of scale </li></ul><ul><li>Customer satisfaction? </li></ul>
    23. 23. The growth of free, open-source software presents developing countries with an opportunity to escape from technological dependence on developed countries, but also a challenge to build up local expertise… Dr. Mike Reed, UNU International Institute for Software Technology March 2006 2. Open Source Software
    24. 24. Open Source in Government Federal Government - DOD, NSA, NASA, NIST, FEMA, USAID, DOL, National Weather Service, FAA State Government - California, Oregon, Massachusetts, Hawaii, Delaware, Texas, Rhode Island, Utah Municipal Government - City of Austin, Dallam County Texas North America (USA) Brazil, Peru, Argentina, Columbia, Mexico, Venezuela Latin America European Union (EU) - Belgium, Bulgaria, Denmark, Estonia, France, Germany, Portugal, Spain, UK Non-EU countries - Ukraine Cities - City of Munich Europe Japan, China, Korea, Singapore, Thailand, Taiwan, India, Israel Australia - Department of Veterans Affairs, Bureau of Meteorology, Taxation Office, Department of Health and Centrelink, South Australia Government, Australian Capital Territory, NSW Department of Agriculture, Northern Territory Department of Education Asia and the Pacific South Africa Africa
    25. 25. Drivers for Open Source <ul><li>Software commoditization - lack of incremental benefits in commercial infrastructure software </li></ul><ul><li>Government self-reliance – reduce national technological dependence </li></ul><ul><li>Cost and choice - cost for license compliance </li></ul><ul><li>Future proofing </li></ul>
    26. 26. Current Situation <ul><li>Rapid uptake in emerging countries </li></ul><ul><li>Proven performance and reliability </li></ul><ul><li>Infrastructure middleware success </li></ul><ul><ul><li>Java EE, Apache, MySQL, Linux, JBoss, Tomcat, OpenOffice </li></ul></ul><ul><li>Some assembly required </li></ul><ul><ul><li>Usability issues </li></ul></ul><ul><ul><li>Market volatility </li></ul></ul><ul><li>Not established in business applications </li></ul>
    27. 27. Middleware – the layer of software used to connect two applications or to connect an application to the network – is approaching a commodity state. Patrick Carey and Bernard Gleason, Vision 2010 – Future of Business Software Applications August 2005 3. Commoditization of the software stack
    28. 28. Software Stack Business Applications Middleware Database Operating System Server Network Storage Management
    29. 29. Drivers for Commoditization <ul><li>Standards = </li></ul><ul><ul><li>Ability to interchange middleware </li></ul></ul><ul><ul><li>Lower cost from vendors </li></ul></ul><ul><li>Market maturation </li></ul><ul><ul><li>more and more functionality in middleware driving costs down </li></ul></ul><ul><ul><li>Application vendors want to be middleware neutral </li></ul></ul><ul><ul><li>Customers do not want to be locked-in </li></ul></ul>
    30. 30. Current Situation <ul><li>Accelerated Commoditization </li></ul><ul><li>Price pressure on middleware </li></ul><ul><li>Middleware standards are being set by governments (USA: F.E.A.) </li></ul><ul><li>Many governments developed open source middleware policies </li></ul><ul><li>On the Internet, no one knows what middleware you are running </li></ul>
    31. 31. including political devolution, de-concentration, delegation, and transfer to non-governmental organizations, promotes democracy and good governance by providing an institutional framework to bring decision-making closer to the people Shabir Cheema United Nations Global Forum for Reinventing Government November 2006 4. De-centralization,
    32. 32. Devolution Delegation De-concentration Divestment
    33. 33. Budgets Municipal Gov’t Municipal Gov’t Municipal Gov’t Provincial Gov’t National Government Ministry 1 Virements Information Virements Information Virements Information
    34. 34. Reporting National Government Provincial Gov’t Ministry 1 Municipal Gov’t Municipal Gov’t Municipal Gov’t Outturn Expenditure Information Outturn Expenditure Information Outturn Expenditure Information
    35. 35. Drivers for De-centralization <ul><li>Administrative Decentralization </li></ul><ul><li>Improve government efficiency and effectiveness = improve outcomes </li></ul><ul><li>Large % of government budgets deployed locally </li></ul><ul><li>Local and cultural autonomy </li></ul><ul><li>Fiscal Decentralization </li></ul><ul><li>Improves participation = more stable countries </li></ul><ul><li>Reduce waste and corruption </li></ul>
    36. 36. Current Situation <ul><li>Conflicts with computing trend to integration (centralization) </li></ul><ul><li>Clear trend: devolution on every continent </li></ul><ul><li>Local capacity and sustainability issues </li></ul><ul><li>Difficulties in extending governance with existing solutions </li></ul>
    37. 37. Success with BPM also requires a culture of real-time management .. and may need a separate process center of excellence. Gartner Group February 2006 5. Business Process Management
    38. 38. What is Business Process Management (BPM)? Workflow Integration Design and Development Business Activity Monitoring Orchestration
    39. 39. Industry Drivers for BPM <ul><li>Maximizing efficiency - workflow and integration enables greater automation </li></ul><ul><li>Difficulties in adapting ERP after customization </li></ul><ul><li>Best practices from the private sector? </li></ul><ul><li>Horizontal companies hope BPM will reduce customization costs </li></ul>
    40. 40. Current Situation of BPM <ul><li>Established in compliance solutions </li></ul><ul><li>Leveraged in process e-government </li></ul><ul><li>Not established in government IFMIS </li></ul><ul><li>Well established standards </li></ul><ul><li>Performance/functionality compromise </li></ul><ul><li>No market leading vendor </li></ul>
    41. 41. SaaS benefits are crystallizing, but chaos still abounds Robert Bois, Aberdeen Group June 2006 6. Software as a Service (SaaS)
    42. 42. What is Software as a Service (SaaS)? <ul><li>Applications are hosted externally: e.g. Salesforce </li></ul><ul><li>Typically priced on a subscription basis </li></ul><ul><li>Typically provides minimal customization </li></ul><ul><li>Business model for SOHO, small to large organizations </li></ul><ul><li>Evolution of ASP (Application Server Provider), but typically serving a purpose-built application </li></ul>
    43. 43. Drivers for SaaS <ul><li>High cost to maintain complex software and infrastructure </li></ul><ul><ul><li>Licenses </li></ul></ul><ul><ul><li>Upgrades </li></ul></ul><ul><ul><li>Networks </li></ul></ul><ul><ul><li>Databases </li></ul></ul><ul><li>SaaS supports fast growth </li></ul><ul><li>Attractive for smaller organizations </li></ul>
    44. 44. Current Situation <ul><li>Increasing as a % of the market (from 0 to..) </li></ul><ul><li>Uneven adoption : high in customer relationship management </li></ul><ul><li>Rarely used in government back-office applications – why? </li></ul><ul><li>Similar technology used for shared services , yet… </li></ul><ul><li>E-Procurement ideal application </li></ul><ul><li>Emergence of appliances </li></ul>
    45. 46. No matter how you brand the hype, get ready for a quantum leap in the way the Web works and — more importantly — how it works for you and your business. Wayne Gomes, Rich Internet Group November 2005 7. The Web as a Platform - Web 2.0
    46. 47. What is Web 2.0? <ul><li>An umbrella term for second wave of internet innovation </li></ul><ul><ul><li>Web as platform + diversity of platforms </li></ul></ul><ul><ul><li>Mash-ups + syndication </li></ul></ul><ul><ul><li>Social software + community </li></ul></ul><ul><ul><li>Open source + rapid development </li></ul></ul><ul><ul><li>Rich web interfaces </li></ul></ul><ul><ul><li>Distributed documentation & data </li></ul></ul><ul><li>Companies : SixApart, Flickr, Pandora, Pageflakes, FaceBook, YouTube </li></ul><ul><li>Underlying technologies : blogs, wikis, AJAX, RSS, REST, SOAP, VOIP, podcasting, Skype, BitTorrent, Wikipedia </li></ul>
    47. 48. Web 2.0 is the network as platform, spanning all connected devices… creating network effects through an &quot;architecture of participation,&quot; and going beyond the page metaphor of Web 1.0 to deliver rich user experiences.” Tim O’Reilly, O’Reilly Media
    48. 52. Drivers for Web 2.0 <ul><li>The Web as a Platform – using the internet as an API for new applications </li></ul><ul><li>Radical decentralization – distributed data, reused, remixed, (re)-aggregated, and (re)-syndicated </li></ul><ul><li>Self-service and participation </li></ul><ul><li>Infrastructure is available </li></ul><ul><li>The Network Effect </li></ul><ul><li>The Long Tail </li></ul>
    49. 53. Web 2.0 in Government <ul><li>Norway has the first Web 2.0 Government – eNorway 2009 initiative </li></ul><ul><li>US Government Ready for Web 2.0 </li></ul><ul><ul><li>Blogs – the govsphere is growing fast </li></ul></ul><ul><ul><li>RSS feeds – proliferating rapidly among US government agencies </li></ul></ul><ul><ul><li>Wikis – adopted by UK, US government for collaborative “telework” </li></ul></ul>
    50. 54. Current Situation <ul><li>Consumer market driving business applications </li></ul><ul><li>Corporations adopting blogging technology (Microsoft Channel 9) </li></ul><ul><li>Superior collaborative capabilities </li></ul><ul><li>Upset commercial vendor status-quo </li></ul><ul><li>Security concerns in government </li></ul>
    51. 56. New wireless technology is resulting in innovative business models and holds the promise of connecting poor users, extending competition to all market segments, and accelerating development of broadband infrastructure and access. World Bank April 2006 8. Wireless Government
    52. 57. What is Wireless Government? <ul><li>Light e-government using mobile telephone technology </li></ul><ul><ul><li>Mobile telephone as kiosk </li></ul></ul><ul><li>Citizens and Businesses </li></ul><ul><ul><li>Finding government services </li></ul></ul><ul><ul><li>Notifications and alerts </li></ul></ul><ul><li>Civil Service </li></ul><ul><ul><li>Requisitions and receiving </li></ul></ul><ul><ul><li>Approvals </li></ul></ul><ul><ul><li>Time & Attendance </li></ul></ul>
    53. 58. Drivers for Wireless Government <ul><li>Proven voice and text technologies </li></ul><ul><li>Mobile telephone is the tool of choice for small transactions </li></ul><ul><li>Growth in emerging countries </li></ul><ul><li>Overcoming the digital divide </li></ul><ul><li>Citizen and civil servant usable and inexpensive </li></ul>
    54. 59. Current Situation <ul><li>Early adoption in government </li></ul><ul><li>Exposing IFMIS capabilities via wireless devices is difficult </li></ul><ul><li>Remains differences among devices </li></ul><ul><li>Most e-government needs computers and the Internet </li></ul><ul><li>Practical work on life events </li></ul>
    55. 60. Agencies are addressing goals of decreasing administrative burdens, lowering costs, enabling better informed decision making, and ensuring tmeliness in responding to sector needs. Aberdeen Group March 2004 9. Corporate Performance and Government Performance Management
    56. 61. What is Corporate Performance Management? Scorecarding Reporting OLAP Data Mining Budget Planning
    57. 62. Drivers for Corporate Performance Management <ul><li>Too much information </li></ul><ul><li>Business Intelligence tools such as reporting are not prescriptive </li></ul><ul><li>Not all indicators are relevant </li></ul><ul><li>Financial information is after the fact – you cannot change the past </li></ul><ul><li>Many non-integrated Business Intelligence (BI) tools </li></ul>
    58. 63. Corporate Performance Objectives <ul><li>“ Key Performance Indicators” (KPIs) and “scorecards” are simple to understand </li></ul><ul><li>KPIs measure in progress </li></ul><ul><li>Aggregates measurements from many sources </li></ul><ul><li>Utilizes capabilities of many tools </li></ul><ul><li>Provides clarity for what is important </li></ul>
    59. 64. Government Performance Management <ul><li>Business </li></ul><ul><li>“ Bottom Line” is clear: profitability </li></ul><ul><li>Measured on quarterly profitability </li></ul><ul><li>“ Bottom Line” is financial </li></ul><ul><li>Budget is a guideline </li></ul><ul><li>Simple financial measurements: revenue, expenditures, cost centres… </li></ul><ul><li>Government </li></ul><ul><li>Government mandates require many objectives </li></ul><ul><li>Measured on long-term outcomes </li></ul><ul><li>“ Bottom Line” is outcomes </li></ul><ul><li>Budget is the law </li></ul><ul><li>Difficult financial measurements: objectives, funds, projects… </li></ul>
    60. 65. Performance and Budget Budget Execution Budget Planning Government Objectives Scenario Planning Budget Forecasting Performance Monitoring Budget Review
    61. 66. Inputs, Outputs, Outcomes <ul><li>Objective </li></ul><ul><ul><li>Government development goal </li></ul></ul><ul><li>Input </li></ul><ul><ul><li>The money in the budget </li></ul></ul><ul><li>Output </li></ul><ul><ul><li>The money spent </li></ul></ul><ul><ul><li>The items purchased </li></ul></ul><ul><li>Outcomes </li></ul><ul><ul><li>Results for the national interest </li></ul></ul><ul><li>To improve education and literacy rates in remote regions </li></ul><ul><li>$M earmarked for this purpose </li></ul><ul><li>$M spent in 5 regions </li></ul><ul><li>2 schools built, 40 additional teachers hired, 250 computers and 1,500 books purchased… </li></ul><ul><li>Year 1: literacy tests increased by 2%. Year 2: by 5%. Year 3: by 10% </li></ul>
    62. 67. Current Situation <ul><li>Mixed </li></ul><ul><ul><li>Capacity issues </li></ul></ul><ul><ul><li>Improvements in MTEF </li></ul></ul><ul><ul><li>Remains output focused </li></ul></ul><ul><ul><li>Better results in projects yet… </li></ul></ul><ul><li>Commercial performance management software not budget centric </li></ul>
    63. 68. SOA will make today’s ERP systems look like yesterday’s mainframe apps. Bruce Richardson, AMR Research August 2006 10. Service-Oriented Architecture (SOA)
    64. 69. SOA Drivers <ul><li>Promise of re-use : write once, use many times </li></ul><ul><li>Component-based architectures – promise of assembling applications from parts </li></ul><ul><li>Mix programming language, operating system and middleware </li></ul><ul><li>Pick best-of-breed applications </li></ul>
    65. 70. Web Services register discover bind
    66. 71. Current Situation <ul><li>Proven practical in Web 2.0 </li></ul><ul><li>Business software: </li></ul><ul><ul><li>Early & emerging </li></ul></ul><ul><ul><li>Rapid momentum </li></ul></ul><ul><li>Revolutionizing enterprise software </li></ul><ul><ul><li>Therefore… </li></ul></ul><ul><li>Technical issues being solved </li></ul>
    67. 72. Conclusions
    68. 73. Impact on the IFMIS of Tomorrow <ul><li>Immediate Impact : </li></ul><ul><ul><li>Consolidation – Business Process Management – Software as a Service </li></ul></ul><ul><li>Long-Term Trend : </li></ul><ul><ul><li>Performance Management </li></ul></ul><ul><li>Major Change to IFMIS : </li></ul><ul><ul><li>De-centralization – Open Source – Commoditization of Software Stack – Service Oriented Architectures </li></ul></ul><ul><li>Innovation Opportunities : </li></ul><ul><ul><li>Web 2.0 – Wireless Government </li></ul></ul>
    69. 74. Modular
    70. 75. and Modular
    71. 76. modular, de-centralized & integrated non-monolithic & multiple vendors wired & wireless commodity & innovative The Government IFMIS of tomorrow will be:
    72. 77. extend core IFMIS decentralize measure
    73. 78. Citizen Centric citizen
    74. 79. more choices, better choices, proven choices, sustainable choices. Governments will have:
    75. 80. dhadden@freebalance.com
    76. 81. Conceptual Analysis <ul><li>Best tools and authors to analyze complex trends in high technology: </li></ul><ul><ul><li>Geoffrey Moore on technology adoption </li></ul></ul><ul><ul><li>Clay Christensen on innovation </li></ul></ul><ul><ul><li>Marshall McLuhan on medium (enhancement, reversal, retrieval, obsolesce) </li></ul></ul><ul><ul><li>Gartner Group on technology hype cycle </li></ul></ul>
    77. 82. Recommended Links <ul><li>The Future of Software: http://www.forrester.com/Teleconference/Previous/Overview/1,5158,1411,00.html </li></ul><ul><li>The Future of Government Communications Networks: http://www.dts.ca.gov/news_events/ppt/Gartner_JoeSkorupa.ppt </li></ul><ul><li>Innovation Does Matter: http://fr.sun.com/sunnews/events/2006/may/symposium/pdf/paeinier_forrester.pdf </li></ul><ul><li>Vision 2010: http://www-03.ibm.com/industries/education/doc/content/bin/IBM_BCS_White_Paper_Vision_2010_Business_Applications.pdf </li></ul><ul><li>Information and communications for development 2006 : global trends and policies: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/04/20/000012009_20060420105118/Rendered/PDF/359240PAPER0In101OFFICIAL0USE0ONLY1.pdf </li></ul><ul><li>Web 2.0 in Business: http://www.mckinseyquarterly.com/article_abstract.aspx?ar=1913&l2=13&l3=11&srid=9&gp=1 </li></ul>
    78. 83. Recommended Links <ul><li>Ten Trends to Watch in 2006: http:// www.mckinseyquarterly.com/article_page.aspx?ar =1734&L2=21&L3=114&srid=190&gp=0 </li></ul><ul><li>ERP Graveyard: http://www.erpgraveyard.com/ </li></ul><ul><li>Is it time for Wikigov: http://www.gcn.com/online/vol1_no1/43410-1.html </li></ul><ul><li>ERP Consolidation May be Threatening Innovation: http://searchcio.techtarget.com/originalContent/0,289142,sid19_gci1230304,00.html?track=NL-453&ad=580643&asrc=EM_NLT_1199477&uid=2151015 </li></ul><ul><li>Does ERP Matter: http://www.infoworld.com/archives/emailPrint.jsp?R=printThis&A=/article/07/04/09/HNerpmatter_1.html </li></ul><ul><li>The Building Blocks of a Simpler Future are in Place http://www.accenture.com/Global/Services/By_Subject/Service_oriented_Architecture/R_and_I/BuildingBlocksPlace.htm </li></ul>

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