eGovernment in a recession –
improving services whilst driving out costs
Andy Smith
Senior Director, EMEA Public Sector
  ...
What’s Worrying Governments?
• More demanding citizens
• Demographics – ageing population
• Global Economic and Political ...
The Government Challenge …
 … The Common Denominator
• Governments the world over face the twin challenge


• How do you

...
What’s Worrying Governments Now?
From BBC News, 8th January 2009


Mexico takes urgent economy steps

Mexico unveils emerg...
Social Consequences of
    Recession
• Hardest for the poor and socially
    disadvantaged
    Large scale unemployment
•
...
Economic Consequences
  of Recession
• Financial Pressures become even greater
• Increased demand on services
   • Unemplo...
Government Choices
 in a Recession
• Cuts in Interest Rates and/or boom in Government
  spending?
• Tax cuts?
   • For bus...
Arguments for Governments
Investing in IT in a Recession
     IBM CEO Sam Palmisano presented a report to Obama's
  transi...
…and trusting Government becomes
more important
New American Customer Satisfaction Index (ACSI) data suggest
that a satisf...
In turbulent times Governments increasingly
   need to focus on…

• Re-establishing trust by good governance
• Making soun...
Hence the importance of IT strategy
    and investment which focuses on
• IT and eGovernment as core business – not an add...
Service Transformation


                                             Channel Management




                         Make...
Performance Management

• In Cost Conscious
environment
……..
Knowing where you’ve
been is not enough……

• Knowing where yo...
GRC in Government


• Increasingly relevant to PS
• Recent UK Government
 Reports:
  • Data Handling Procedures in
    Gov...
Green - It’s good for the environment…
 ….and for Businesses/PS Organisations
• DuPont: estimates $3 Billion saving over 2...
Shared Services Drivers

 Central and Multiple Organisation
 Management
 “How do I manage the complexity of
 diverse depar...
Key Messages

• Government Organisations must quickly adapt to a
  radically changing socio-economic environment
• ICT cen...
Questions & Answers
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E-Government In A Recession

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My colleague Andy Smith, who is Senior Director Public Sector EMEA at Oracle held this presentation together with me at the European Commission, on 12 March 2009.

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E-Government In A Recession

  1. 1. eGovernment in a recession – improving services whilst driving out costs Andy Smith Senior Director, EMEA Public Sector i2010 unit, DG INFSO, Brussels, 12 March 2009
  2. 2. What’s Worrying Governments? • More demanding citizens • Demographics – ageing population • Global Economic and Political Pressures and Changes • Escalating Social Services budgets • Welfare • Social and political change • Climate Change • Migrant populations • Better schools • Security threats
  3. 3. The Government Challenge … … The Common Denominator • Governments the world over face the twin challenge • How do you • Deliver improved public services and safeguard your citizens……… …….without raising public spending and taxes • Driving out administrative cost is vital
  4. 4. What’s Worrying Governments Now? From BBC News, 8th January 2009 Mexico takes urgent economy steps Mexico unveils emergency measures to protect its economy from the global financial crisis and US recession including freezing fuel prices, providing $150m to struggling industries and creating thousands of new jobs. From BBC News, Thursday 12 March 2009 UK in Recession The UK economy contracted 1.8% between December and February, the National Institute of Economic and Social Research (NIESR) has estimated.
  5. 5. Social Consequences of Recession • Hardest for the poor and socially disadvantaged Large scale unemployment • Rising food and energy costs – • increased personal debt Housing repossessions • Hypothermia/early deaths • Increase in health inequalities •
  6. 6. Economic Consequences of Recession • Financial Pressures become even greater • Increased demand on services • Unemployment and welfare benefits • Health and social care • Social Housing • Rising costs of delivering services • Fuel and energy costs, transportation • Reduced income to pay for them • Less money from taxes (less people in work) • Less money from VAT, fuel, customs etc (as people spending less) • Less money from businesses, planning applications etc
  7. 7. Government Choices in a Recession • Cuts in Interest Rates and/or boom in Government spending? • Tax cuts? • For businesses? • For individuals? Direct (on earnings) or Indirect (on spending)? • Greater pressure to deliver more for less, but • Governments are major employers and want to stimulate, not constrain economy • Efficiency v Economic regeneration • Efficiency = less staff and fewer offices,but • What if that means more unemployment? • What about Local Communities?
  8. 8. Arguments for Governments Investing in IT in a Recession IBM CEO Sam Palmisano presented a report to Obama's transition team … that argues that a $30 billion investment in universal broadband, health information technology and a smarter power grid could create 950,000 jobs. quot;If you build more roads, people don't buy more tires or GPS systems, but if you build better networks, you create entirely new business applications.“ Rob Atkinson, president of ITIF Studies have shown that expanding broadband services create 1.3 jobs for every job created to support such infrastructure.
  9. 9. …and trusting Government becomes more important New American Customer Satisfaction Index (ACSI) data suggest that a satisfying experience with a specific government agency can improve trust in the government as a whole. “An investment in improving federal services online is about more than just increased efficiency and cost savings. It is an investment in trust and in the government’s relationship with its citizens.”
  10. 10. In turbulent times Governments increasingly need to focus on… • Re-establishing trust by good governance • Making sound and relevant fiscal decisions • Increasing competitiveness • Reinforcing their regulatory role • Further increasing transparency and efficiency …by leveraging modern technologies and deploying services more efficiently.
  11. 11. Hence the importance of IT strategy and investment which focuses on • IT and eGovernment as core business – not an add on or ‘nice to have’ • Driving out costs as the No1 priority • Other areas still important, e.g. • Service Transformation • Performance Management • Risk and Compliance • Shared Services • Service Directive • Green and sustainability • But only if they help Governments drive out cost
  12. 12. Service Transformation Channel Management Make an Enquiry Contact Management Request a Service Make a booking Permits and Licences, Social Services Business Process and Case ASBOs , Environmental Services Management Corporate Correspondence & Complaints Information Management Citizen Master Process Analytics Citizen Insight Outreach & Personalised Profiling Segmentation Management Service
  13. 13. Performance Management • In Cost Conscious environment …….. Knowing where you’ve been is not enough…… • Knowing where you are – And where you want/need to be matters more
  14. 14. GRC in Government • Increasingly relevant to PS • Recent UK Government Reports: • Data Handling Procedures in Government (the O’Donnell Report) • Review of Government Information Assurance (the Coleman Report)
  15. 15. Green - It’s good for the environment… ….and for Businesses/PS Organisations • DuPont: estimates $3 Billion saving over 2 decades • Wal-Mart: reducing packaging by 5% in 2008 • UPS: 28 million fewer miles and 3 million fewer gallons per year • Oracle: energy costs reduced by 10.5% in one year, equating to approximately $1 MM “Green Could be the largest economic opportunity of the 21st Century” – John Doerr, Kleiner Perkins Caufield & Byers
  16. 16. Shared Services Drivers Central and Multiple Organisation Management “How do I manage the complexity of diverse departments, or multiple public sector organisations?” Complexity and Costs Shared “How can I spend less money and time on transaction processing while supporting better front line services?” Services Regulations and Oversight “How do I avoid expensive and high profile errors and ensure strong governance and control?” Match Resource to Strategy “How do I ensure resources are allocated and used in the best way to meet strategic objectives on an ongoing basis?”
  17. 17. Key Messages • Government Organisations must quickly adapt to a radically changing socio-economic environment • ICT central to transforming public services and driving out costs – with service transformation, shared services and back office inegration key priorities • Technology is there! Political leadership and change management are needed to fully exploit potential of ICT. • Oracle ready and willing to work with EU and Member States to help them exploit the benefits of ICT, drive out costs ......and improve services
  18. 18. Questions & Answers
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