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50 Years of Growth, Innovation and Leadership




Smarter Computing to Support 21st Century Governance
Transforming IT Infrastructures to Meet Critical Imperatives




                                                               A Frost & Sullivan
                                                                  White Paper

                                                               Brian Cotton, PhD

                                                                www.frost.com
Frost & Sullivan




               Abstract...........................................................................................................   3

               An Opportunity For a Smarter Government ..................................................                            3

               A Smarter Computing Approach to Support
               21 st Century Governance ................................................................................             6

               Meeting Government IT Needs With Smarter Computing ............................. 10

               A Smarter Way to Build Better Government ................................................. 14

               References ...................................................................................................... 16




                                                                CONTENTS
Smarter Computing to Support 21 st 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 21 st century    the planet is able to provide, and what it can no longer tolerate. An assortment of
  economy is all about     threats, from armed conflicts that cross national borders, to terrorism, disease, and
          speed, access,   increasingly fierce natural disasters, are facing us.
       intelligence, and
     efficiency. A 21 st   Underlying all this is an economic climate that dictates how governments adapt to
   century government      the changing world. In the developed economies, diminished tax revenue and record
     needs to be about     deficits are stressing government funding and putting some in substantial deficits.
      the same things”     Globally, the Organization for Economic Cooperation and Development (OECD) is
                           estimating the aggregate budget deficit is 7.5 percent 1, while some countries are
 —Jennifer Granholm,       running deficits well into double digits. In the United States, the Government
     former governor       Accountability Office (U.S. GAO) has painted a stark picture of the situation, stating
          of Michigan      “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. 3Governments 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 levels 6, and similar
                           spending is planned by the government of India 7 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 21 st century economy is all about speed, access, intelligence, and efficiency. A
                           21 st 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.




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Smarter Computing to Support 21 st Century Governance




The transformation to a 21 st 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



     Improve Citizen & Business Outcomes                     Manage Public Resources Effectively
     • Social Benefits and Service Delivery                  • Social Benefits and Service Delivery
     • Education                                             • Education
     • Healthcare                                            • Healthcare
     • Tax and Revenue Management                            • Tax and Revenue Management
     • Transportation Management                             • Transportation Management
     • Public Safety                                         • Public Safety
                                                             • Water and Sewer Management



                                              21st Century
                                              Government


    Ensure a Sustainable Environment                         Strengthen Security & Safety
    • Transportation Management                              • Customs and Immigration
    • Power Management                                       • Border Management
    • Water and Sewer Management                             • Public Safety
                                                             • Defense Network Centric Operations




                                                              Source: Frost & Sullivan analysis and IBM




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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.

   “IT in my state was      Public sector CIOs and IT planners need to be creative when redesigning their IT
       developed inside     infrastructures to reduce the administrative overhead while maintaining high levels
   out, so that 19 state    of performance. In mature market countries, this presents a conundrum, because
      agencies have 19      while many government CIOs recognize a need to transform their IT
       data centers and     infrastructures, most are faced with IT budgets that are being cut back, remaining
   every county has its     flat, or are at best growing only slowly. 11 Here, the opportunity of a tight budget can
     own network. . . .     stimulate creative solutions for increasing IT efficiency and effectiveness. 12 As one
         there’s a lot of   state government CIO put it, “IT in my state was developed inside out, so that 19
    money to be saved       state agencies have 19 data centers and every county has its own network... there’s
     in having just one     a lot of money to be saved in just one network for all of them.” 13 In emerging market
     network for all of     countries, the CIO’s opportunity is to design systems according to state-of-the-art
                  them.”    approaches. In both cases, government CIOs need support to transform their IT
                            infrastructures, and Smarter Computing can guide them through the process.
            —U.S. state
       government CIO       A SMARTER COMPUTING APPROACH TO SUPPORT
                            21 st 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.




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 • 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                                                                       Smarter Computing
workloads and processing tasks (as summarized in Figure 2), which cannot be                                                                        supports Smarter
effectively or efficiently handled by traditional government IT infrastructures.                                                                   Government by
                                                                                                                                                   creating a
Figure 2: 21 st Centur y                                     Government                      Imperatives                     and           their   technology
IT Infrastructure Workloads                                                                                                                        framework to
 Workloads                                                                                                                                         support a
 on the IT             Government User Integrated Access & Operations                                                                              collaborative,
 Infrastructure
                    Improve Citizen &               Manage Public                  Strengthen Security               Ensure a Sustainable          shared-service
 Front Office       Business Outcomes               Resources Effectively          & Safety                          Environment
 Business Process    Social Benefits and Service     Social Benefits and Service      Customs and Immigration         Transportation Management
                                                                                                                                                   operational model
                     Delivery
 Management,
 Database
                     Education
                                                     Delivery
                                                     Education
                                                                                      Border Management
                                                                                      Public Safety
                                                                                                                      Power Management
                                                                                                                      Water and Sewer
                                                                                                                                                   that delivers on
                     Healthcare                      Healthcare                       Defense Network Centric         Management
 Management,         Tax and Revenue
                     Management
                                                     Tax and Revenue Management       Operations                                                   the four key
 Business                                            Transportation Management
 Intelligence        Transportation Management
                     Public Safety                   Public Safety                                                                                 imperatives of
                                                     Water and Sewer Management
                                                                                                                                                   21 st century
                                                                                                                                                   government.
 Back Office
 Transaction
                                                                      Process Automation
 Processing,            Event Processing                   Simulation Models              Data Analysis              Transaction Processing
 Simulations &
 Analytics,                                                      Data Storage And Management
 Information                           Physical World Interfaces (Sensors, Systems, Devices) & Data Acquisition
 Management
                             Control                                           Data



 Edge of System
 Sensors &
 Controls,
 Cross-System
 Data Feeds,
 Communications     Transportation        CCTV                Water        Public          Public service       Energy     Other stakeholders
                    infrastructure        and video           supply and   and private     staff and            supply and (e.g., agencies,
                    and services          infrastructure      management   buildings       resources            management NGOs,
                                                                                                                           private sector)



                                                                                                            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




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                          resources to be deployed elsewhere during off-peak periods. Smarter Computing’s
                          cloud capabilities facilitate the rapid deployment of new services, and can integrate
  The Alameda County      services and data across government agencies to provide a unified view of insights
        Social Services   and enhance collaboration. Importantly, the approach gives CIOs control over
  Agency implemented      capital and operational expenditures because existing IT infrastructures can be
             a Smarter    transformed, and need not be completely replaced. By using Smarter Computing,
  Computing approach      government CIOs can transform their IT infrastructures to effectively and
   and realized almost    efficiently enable the imperatives of 21 st century governance.
         $25 million in
      savings annually.   Improving Citizen and Business Outcomes
                          Improving citizen and business outcomes relies on a set of applications and operations
   —Nucleus Research
                          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




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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
The Potsdam Institute    maintenance; 3) the analysis of streaming data for event detection and prediction; 4)
  for Climate Change     cross-domain data feeds; and 5) communication coordination across agencies.
          uses Smarter
                         The requirements for extreme weather event prediction and warnings used by
Computing to provide
                         public safety agencies, for instance, place heavy workloads for database
  advance warning of
                         management, analytics, sensors and controls, communications, and complex
      extreme weather
                         modeling on a weather agency’s IT infrastructure. Because of the cost in lives,
    events at 30 times
                         property, and disruption that a severe weather event can cause, it is critical that
 the performance and
                         predictions are accurate and provided on a timely basis across multiple agencies.
       25 percent less
                         The number of agencies and the volume and variability of the data needed make this
     energy consumed
                         massively complex. Traditional infrastructures cannot adequately handle the
   than traditional IT
                         multiple, interdependent workloads tied to performing the service without large
  architectures would
                         investments in IT equipment, energy to power and cool it, data center floor space
                allow.
                         to house it, and manpower to maintain it.

      —IBM Case Study    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 21 st century government. Government agencies that are embracing Smarter
                         Computing are delivering on the imperatives of 21 st century government, and
                         are enjoying the benefits from using the approach.


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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               The CNAF
wait up to four months to have their applications confirmed. Moreover, the agency’s              implemented a
reliance on paper forms places a burden on the environment. As the number of                     smarter Computing
applications increased in the wake of the economic recession, CNAF needed a way                  approach to its
to slash the processing time and efforts, while vastly extending the access to                   social benefits
services beyond the traditional agency locations, and still provide a high level of              processing, cutting
service and responsibly to manage a significant amount of public funds.                          wait times from
                                                                                                 four months to
Implementing a Holistic Smarter Computing Architecture                                           one week, reducing
Recognizing a need to build an advanced IT infrastructure to improve the outcomes                costs, and improving
of its citizens and better manage the public resources, CNAF teamed with IBM to                  its environmental
implement a Smarter Computing approach across its infrastructure. The core of the                sustainability.
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.




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                            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
       “In addition to      With a population of nearly 2.5 million citizens, and an area of more than 2,000
  providing the speed,      square miles, Miami-Dade County is the largest county-level unit in Florida. Even
         reliability and    with the recent economic recession, the county’s population grew by more than 10
 scalability we needed      percent from 2000 to 2010. As would be expected of a county with this profile, all
        to support our      organizations within the county government, from first responders to county parks,
   enterprise business      amass an extensive amount of data. Beginning in 1999, the county’s IT organization
            intelligence    was using IBM business intelligence analytic applications to provide business
     environment, the       intelligence to its internal stakeholder agencies. The analytics soon became strategic
      system fit within     assets to the county, but the growth of demand driven by the expanding population
    our budget, which       began to outpace the IT systems’ ability to support the corresponding increase in
   was a key deciding       information sharing between agencies. At the same time, funding in a state hard hit
                 factor.”   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
        —Jaci Newmark,      business intelligence capabilities needed, building on the systems in place.
            project lead,
      enterprise business   Enhancing a Current System to Handle Advanced Analytic Capabilities
             intelligence   Because balancing the need for new analytic capabilities with preserving
            architecture,   investments in current IT system was a primary concern, Miami-Dade County
            Miami-Dade      turned again to IBM to enhance its infrastructure to handle the increased data
                  County




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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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                           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
  The City of Norfolk      also scale quickly and easily to meet unanticipated needs. Of particular importance
           used Smarter    was the need for the IT architecture to handle the new public services that would
          Computing to     generate massive amounts of data. The centerpiece of this was integrating its storage
   optimize its storage    infrastructure on a single IBM storage system, enabling automated processes,
      system to support    improving performance and security, and reducing energy consumption across the
  its new public safety    entire system. By optimizing the infrastructure to handle the new workloads
    initiatives. Storage   envisioned, IBM and Norfolk consolidated storage needs from a wide variety of
       performance was     mission-critical, data-intensive applications and systems onto a single platform.
        increased by 40
  percent while power      Supporting New          Initiatives,   While     Boosting      Performance       and
 consumption dropped       Lowering Costs
          by 50 percent.
                           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.




 14     frost.com
Smarter Computing to Support 21 st 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    15
Frost & Sullivan




                    REFERENCES




                     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




 16     frost.com
Silicon Valley                                San Antonio                                    London
  331 E. Evelyn Ave. Suite 100                  7550 West Interstate 10,                       4, Grosvenor Gardens,
  Mountain View, CA 94041                       Suite 400,                                     London SWIW ODH,UK
  Tel 650.475.4500                              San Antonio, Texas 78229-5616                  Tel 44(0)20 7730 3438
  Fax 650.475.1570                              Tel 210.348.1000                               Fax 44(0)20 7730 3343
                                                Fax 210.348.1003




                                    877.GoFrost • myfrost@frost.com
                                               http://www.frost.com




ABOUT FROST & SULLIVAN
Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's
TEAM Research, Growth Consulting, and Growth Team 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.


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50 Years of Growth, Innovation and Leadership

  • 1. 50 Years of Growth, Innovation and Leadership Smarter Computing to Support 21st Century Governance Transforming IT Infrastructures to Meet Critical Imperatives A Frost & Sullivan White Paper Brian Cotton, PhD www.frost.com
  • 2. Frost & Sullivan Abstract........................................................................................................... 3 An Opportunity For a Smarter Government .................................................. 3 A Smarter Computing Approach to Support 21 st Century Governance ................................................................................ 6 Meeting Government IT Needs With Smarter Computing ............................. 10 A Smarter Way to Build Better Government ................................................. 14 References ...................................................................................................... 16 CONTENTS
  • 3. Smarter Computing to Support 21 st 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 frost.com 3
  • 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 21 st century the planet is able to provide, and what it can no longer tolerate. An assortment of economy is all about threats, from armed conflicts that cross national borders, to terrorism, disease, and speed, access, increasingly fierce natural disasters, are facing us. intelligence, and efficiency. A 21 st Underlying all this is an economic climate that dictates how governments adapt to century government the changing world. In the developed economies, diminished tax revenue and record needs to be about deficits are stressing government funding and putting some in substantial deficits. the same things” Globally, the Organization for Economic Cooperation and Development (OECD) is estimating the aggregate budget deficit is 7.5 percent 1, while some countries are —Jennifer Granholm, running deficits well into double digits. In the United States, the Government former governor Accountability Office (U.S. GAO) has painted a stark picture of the situation, stating of Michigan “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. 3Governments 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 levels 6, and similar spending is planned by the government of India 7 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 21 st century economy is all about speed, access, intelligence, and efficiency. A 21 st 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. 4 frost.com
  • 5. Smarter Computing to Support 21 st Century Governance The transformation to a 21 st 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 Improve Citizen & Business Outcomes Manage Public Resources Effectively • Social Benefits and Service Delivery • Social Benefits and Service Delivery • Education • Education • Healthcare • Healthcare • Tax and Revenue Management • Tax and Revenue Management • Transportation Management • Transportation Management • Public Safety • Public Safety • Water and Sewer Management 21st Century Government Ensure a Sustainable Environment Strengthen Security & Safety • Transportation Management • Customs and Immigration • Power Management • Border Management • Water and Sewer Management • Public Safety • Defense Network Centric Operations Source: Frost & Sullivan analysis and IBM frost.com 5
  • 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. “IT in my state was Public sector CIOs and IT planners need to be creative when redesigning their IT developed inside infrastructures to reduce the administrative overhead while maintaining high levels out, so that 19 state of performance. In mature market countries, this presents a conundrum, because agencies have 19 while many government CIOs recognize a need to transform their IT data centers and infrastructures, most are faced with IT budgets that are being cut back, remaining every county has its flat, or are at best growing only slowly. 11 Here, the opportunity of a tight budget can own network. . . . stimulate creative solutions for increasing IT efficiency and effectiveness. 12 As one there’s a lot of state government CIO put it, “IT in my state was developed inside out, so that 19 money to be saved state agencies have 19 data centers and every county has its own network... there’s in having just one a lot of money to be saved in just one network for all of them.” 13 In emerging market network for all of countries, the CIO’s opportunity is to design systems according to state-of-the-art them.” approaches. In both cases, government CIOs need support to transform their IT infrastructures, and Smarter Computing can guide them through the process. —U.S. state government CIO A SMARTER COMPUTING APPROACH TO SUPPORT 21 st 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. 6 frost.com
  • 7. Smarter Computing to Support 21 st 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 Smarter Computing workloads and processing tasks (as summarized in Figure 2), which cannot be supports Smarter effectively or efficiently handled by traditional government IT infrastructures. Government by creating a Figure 2: 21 st Centur y Government Imperatives and their technology IT Infrastructure Workloads framework to Workloads support a on the IT Government User Integrated Access & Operations collaborative, Infrastructure Improve Citizen & Manage Public Strengthen Security Ensure a Sustainable shared-service Front Office Business Outcomes Resources Effectively & Safety Environment Business Process Social Benefits and Service Social Benefits and Service Customs and Immigration Transportation Management operational model Delivery Management, Database Education Delivery Education Border Management Public Safety Power Management Water and Sewer that delivers on Healthcare Healthcare Defense Network Centric Management Management, Tax and Revenue Management Tax and Revenue Management Operations the four key Business Transportation Management Intelligence Transportation Management Public Safety Public Safety imperatives of Water and Sewer Management 21 st century government. Back Office Transaction Process Automation Processing, Event Processing Simulation Models Data Analysis Transaction Processing Simulations & Analytics, Data Storage And Management Information Physical World Interfaces (Sensors, Systems, Devices) & Data Acquisition Management Control Data Edge of System Sensors & Controls, Cross-System Data Feeds, Communications Transportation CCTV Water Public Public service Energy Other stakeholders infrastructure and video supply and and private staff and supply and (e.g., agencies, and services infrastructure management buildings resources management NGOs, private sector) 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 frost.com 7
  • 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 The Alameda County services and data across government agencies to provide a unified view of insights Social Services and enhance collaboration. Importantly, the approach gives CIOs control over Agency implemented capital and operational expenditures because existing IT infrastructures can be a Smarter transformed, and need not be completely replaced. By using Smarter Computing, Computing approach government CIOs can transform their IT infrastructures to effectively and and realized almost efficiently enable the imperatives of 21 st century governance. $25 million in savings annually. Improving Citizen and Business Outcomes Improving citizen and business outcomes relies on a set of applications and operations —Nucleus Research 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 8 frost.com
  • 9. Smarter Computing to Support 21 st 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. frost.com 9
  • 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 The Potsdam Institute maintenance; 3) the analysis of streaming data for event detection and prediction; 4) for Climate Change cross-domain data feeds; and 5) communication coordination across agencies. uses Smarter The requirements for extreme weather event prediction and warnings used by Computing to provide public safety agencies, for instance, place heavy workloads for database advance warning of management, analytics, sensors and controls, communications, and complex extreme weather modeling on a weather agency’s IT infrastructure. Because of the cost in lives, events at 30 times property, and disruption that a severe weather event can cause, it is critical that the performance and predictions are accurate and provided on a timely basis across multiple agencies. 25 percent less The number of agencies and the volume and variability of the data needed make this energy consumed massively complex. Traditional infrastructures cannot adequately handle the than traditional IT multiple, interdependent workloads tied to performing the service without large architectures would investments in IT equipment, energy to power and cool it, data center floor space allow. to house it, and manpower to maintain it. —IBM Case Study 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 21 st century government. Government agencies that are embracing Smarter Computing are delivering on the imperatives of 21 st century government, and are enjoying the benefits from using the approach. 10 frost.com
  • 11. Smarter Computing to Support 21 st 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 The CNAF wait up to four months to have their applications confirmed. Moreover, the agency’s implemented a reliance on paper forms places a burden on the environment. As the number of smarter Computing applications increased in the wake of the economic recession, CNAF needed a way approach to its to slash the processing time and efforts, while vastly extending the access to social benefits services beyond the traditional agency locations, and still provide a high level of processing, cutting service and responsibly to manage a significant amount of public funds. wait times from four months to Implementing a Holistic Smarter Computing Architecture one week, reducing Recognizing a need to build an advanced IT infrastructure to improve the outcomes costs, and improving of its citizens and better manage the public resources, CNAF teamed with IBM to its environmental implement a Smarter Computing approach across its infrastructure. The core of the sustainability. 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. frost.com 11
  • 12. Frost & Sullivan 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 “In addition to With a population of nearly 2.5 million citizens, and an area of more than 2,000 providing the speed, square miles, Miami-Dade County is the largest county-level unit in Florida. Even reliability and with the recent economic recession, the county’s population grew by more than 10 scalability we needed percent from 2000 to 2010. As would be expected of a county with this profile, all to support our organizations within the county government, from first responders to county parks, enterprise business amass an extensive amount of data. Beginning in 1999, the county’s IT organization intelligence was using IBM business intelligence analytic applications to provide business environment, the intelligence to its internal stakeholder agencies. The analytics soon became strategic system fit within assets to the county, but the growth of demand driven by the expanding population our budget, which began to outpace the IT systems’ ability to support the corresponding increase in was a key deciding information sharing between agencies. At the same time, funding in a state hard hit factor.” 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 —Jaci Newmark, business intelligence capabilities needed, building on the systems in place. project lead, enterprise business Enhancing a Current System to Handle Advanced Analytic Capabilities intelligence Because balancing the need for new analytic capabilities with preserving architecture, investments in current IT system was a primary concern, Miami-Dade County Miami-Dade turned again to IBM to enhance its infrastructure to handle the increased data County 12 frost.com
  • 13. Smarter Computing to Support 21 st 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. frost.com 13
  • 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 The City of Norfolk also scale quickly and easily to meet unanticipated needs. Of particular importance used Smarter was the need for the IT architecture to handle the new public services that would Computing to generate massive amounts of data. The centerpiece of this was integrating its storage optimize its storage infrastructure on a single IBM storage system, enabling automated processes, system to support improving performance and security, and reducing energy consumption across the its new public safety entire system. By optimizing the infrastructure to handle the new workloads initiatives. Storage envisioned, IBM and Norfolk consolidated storage needs from a wide variety of performance was mission-critical, data-intensive applications and systems onto a single platform. increased by 40 percent while power Supporting New Initiatives, While Boosting Performance and consumption dropped Lowering Costs by 50 percent. 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. 14 frost.com
  • 15. Smarter Computing to Support 21 st 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 15
  • 16. Frost & Sullivan REFERENCES 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 16 frost.com
  • 17. Silicon Valley San Antonio London 331 E. Evelyn Ave. Suite 100 7550 West Interstate 10, 4, Grosvenor Gardens, Mountain View, CA 94041 Suite 400, London SWIW ODH,UK Tel 650.475.4500 San Antonio, Texas 78229-5616 Tel 44(0)20 7730 3438 Fax 650.475.1570 Tel 210.348.1000 Fax 44(0)20 7730 3343 Fax 210.348.1003 877.GoFrost • myfrost@frost.com http://www.frost.com ABOUT FROST & SULLIVAN Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting, and Growth Team 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 Dubai Mumbai Sophia Antipolis Bangkok Frankfurt Manhattan Sydney Beijing Hong Kong Oxford Taipei Bengaluru Istanbul Paris Tel Aviv Bogotá Jakarta Rockville Centre Tokyo Buenos Aires Kolkata San Antonio Toronto Cape Town Kuala Lumpur São Paulo Warsaw Chennai London Seoul Washington, DC Colombo Mexico City Shanghai Delhi / NCR Milan Silicon Valley Dhaka Moscow Singapore