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The Emperor
has no Clothes
Risk & Results in
Increasingly Transparent
Government 2.0 World
www.fmi.ca
Professional
Develop...
There is nothing more difficult to
carry out, nor more doubtful of
success, nor more dangerous to
handle than to initiate ...
Age of Transparency
With apologies to
Hans Christian Andersen,
Brothers Grimm,
Aesop,
Mother Goose…
…and all the technology
companies with fairy tail
justification for your
money.
evangelical descriptions of the
Government 2.0 examples presented
during the event. However, there was
an under-emphasis o...
Government 2.0 Governance in Context
Scope
EnterpriseProject
Social Transactional
Focus
Government 2.0 Governance in Context
Scope
ExternalInternal
Social Transactional
Focus
The future ain’t what it used to be
Yogi Berra
vendors brewing cost
justification
Facts
vs.
Deduction
(the “white paper”)
vs.
Urban Myth
(the “case study”)
What “should” work
vs.
What “actually” works
Truthiness
Drivers for Innovative Approaches
globalization transparency
technology
governance
crisis knowledge
introduction
Premise
• Traditional approaches to IT risk
not fully effective
• Less so in Government 2.0 era
• Exposing:
risk adverse =...
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
Most of our assumptions have
outlived their uselessness.
Marshall McLuhan
TLAs
• GRC
– (Governance, Risk & Compliance)
• ERM
– (Enterprise Risk Management)
risk & innovation
Risk is good
Risk has Reward Upside
Risk Reward
Reward
positivenegative
low high
Risk
Governments tend to be risk-
averse, including in their
acquisition of technology. What is
not clear is if government woul...
What is government innovation?
• Lacks the prerequisites for innovation?
– Creative thinking
– Idea experimentation
– Inve...
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
Risk can be more about fear than
risk
Approaches to IT Risk
What can go wrong?
• The FUD Factor
– Anecdotes
– Urban myths
– Edge cases
• Risk factors
– Politica...
Typical Government IT Project Concerns
Policy Operational
Political
Will project be completed
within the current
Governmen...
Interpretation of Government IT Failure
Policy Operational
Political
Proves policy
ineffectiveness
Civil servants did not ...
Focusing so much energy on
avoiding political embarrassment
leaves too little energy, or interest,
to mitigate the challen...
Success & Upside of Government IT Risk
Policy Operational
Political
Government is committed
to effective policy.
Low cost ...
The New Normal
• Same depth of analysis on what can go
right, what can go wrong needed
• Risk identified to mitigate
• Roo...
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
Government 2.0 Adoption: Lies,
damn lies and statistics?
Forrester 2007: Value of
Web 2.0 in Enterprise
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
RSS
Podcasting
Wikis
Social net...
Forrester 2010: Web 2.0
adoption in business plans
0% 20% 40% 60% 80% 100%
Microblogs
Idea generation tools
Social network...
ZEW/Creditreform 2009:
Web 2.0 In-house usage
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Exchanges of information
Knowledge ma...
ZEW/Creditreform 2009:
Web 2.0 External usage
0% 20% 40% 60% 80% 100%
Customer and supplier relations
External communicati...
IDC 2009: Leadership Use of
Web 2.0 Technologies
0 10 20 30 40 50 60
RSS
Blogs
YouTube
Wikis
Twitter
Livecasti
ng
Facebook...
IDC 2009 : Using Web 2.0 for
Information Delivery
0 10 20 30 40 50 60 70
Education
Recruitment
Co-Develop Content
Response...
HP 2010: US Federal Government
Survey on Government 2.0 Usage
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Social Networks ...
Gartner 2009 Recommendations
Benefit Less than 2
Years 2 to 5 Years
5 to 10
Years
More than
10 Years
Transformational • We...
Benefits from IT-Enabled Connected
Government
Internal
To Provider Agencies and Governments
External
To Consumer Citizens ...
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
Unintended transparency might
not be every public sector
manager’s dream.
Tommy Dejbjerg Pedersen
Transparency means you can’t
put your reputation back together
again
Citizens are Watching You
value 2.0
Reputational Risks
• Beyond your network
• No control over your “message”
• Not engaging social networks
– huge reputation...
Unintended Consequences
input
outturn
output
mandate
budget
outcome
transparency
Unintended consequences
• False positive:
– Measurements
show success, but
impact is negative
• False negative:
– Measurem...
Unintended Consequences
input
outturn
output
mandate
budget
outcome
transparency
Web 1 Era
• Push business models
• Commercial software
• Customer service
• Bestseller products
• Traditional media
• 1 to...
Digital Age Democracy
A New Era of Digital Governance
Industrial Era Digital Era
Democracy Representative Participatory
Ci...
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
I’m the “NO” guy in your organization and
most likely the person to bring your
enterprise 2.0 or web 2.0 project to a
grin...
IDC 2009 : Top Challenges Your
Organization Faces in Deploying Web 2.0
0 10 20 30 40 50 60 70 80 90
Budget
Technical Exper...
HP 2009: Main Barrier to Government 2.0
Adoption, US Federal Government
40%
21%
14%
9%
8%
9% Security Concerns
Lack of Bud...
Deloitte 2009: Move to more
collaborative model of government
requires re-organizing traditional work
structures
0% 10% 20...
Deloitte 2009: Biggest barrier to
effective Web 2.0 implementation
31%
18%
25%
5%
18%
2%
Culture of hierarchy doesn't fit
...
Deloitte 2009: Mitigating the downsides of a
flattened organization, such as the potential
disenfranchisement of middle ma...
Deloitte 2009: Managing the generational divide in an
organization introducing collaborative technologies into
the work en...
Deloitte 2009: Developing a compelling
case for Web 2.0 presents a:
0% 10% 20% 30% 40% 50% 60% 70%
Significant challenge
M...
Fear around the security of data is a
real issue and the risk can never be
entirely eliminated
Jessica Hawkins, Ovum
Models of Government Data
Publish Social Media
Purpose
You know how data
will be used
You do not know
how data will be
use...
Web 2.0 does uncomfortable things: it
releases assets into the wild, it
empowers users to speak their mind, it
asks people...
Constraints
1. Legacy systems
2. Organizational risk aversion
3. Personal risk aversion
4. Policy limitations
5. Internal ...
Government 2 Risk and Perceived
Risk
Risk
Perceived
Risk
risk 2.0
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
Government 2.0 Value Proposition
• Public Value
– Better/fairer decisions
• Increased Capacity
– Solving “wicked” problems...
HP 2010: Top Benefit to Adopt
Government 2.0 in US Federal Government
33%
20%
20%
18%
5%
3%
Improved services to the publi...
Deloitte 2009: Where will Web 2.0 have
greatest impact for government?
9%
32%
28%
23%
9% Enhance resources for resource
ma...
Will it Be Used?
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
Paid subscription
Documents publis...
Deloitte 2009: Collaborative technologies
• Biggest impact • Hardest to implement
10%
13%
11%
23%
18%
26%
Generate policy ...
Out of Network
value 2.0
Source: INgage Networks
Government 2.0 Footprint
social
Government 2.0
structural
“back office” e-government
internal external
Focus
Out of Network vs. In Network
value 2.0
Source: INgage Networks
Network Effect
network
node
Number of Nodes 8
Potential Maximum Value
(by power law)
Metcalfe’s Law – 60
Odlyzko & Tilly L...
Deloitte 2009: User-driven citizen feedback will
have the greatest impact on
13%
52%
5%
30%
Programs/services are
develope...
ROI is a delectable option that
has unexpected risk
Return on Investment Model
Year 1 Year 2 Year 3 Year 4 Year 5
Cost
Revenue
Return
value 2.0
It is the framework which changes with each
new technology and not just the picture
within the frame.
Marshall McLuhan
ROI – Traditional Model for Value
• Poor analytical framework for social
media
• Deals with internal revenue and costs
• S...
Economic Value Add - EVA
• Incremental cost to
make data open
and machine
readable
• Value to private
sector
• In aggregat...
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
55% of IT mgrs believe #ITGovernance is
effective, but just 40% of business unit mgrs
do
Cutter Consortium Tweet
Deloitte 2009: Governance solutions that
will have greatest impact on government
18%
14%
14%
17%
21%
16%
Develop implement...
Deloitte 2009: Business case solutions that
will have the most transformational impact on
government
34%
13%
8%
28%
17%
De...
In the IDC survey, only 18% of
government responders indicate their
agency measures the success of Web
2.0 technology in m...
Architectural Maturity Stages & IT Value
Business Silos
Standardized
Technology
Optimized Core Business Modularity
Locally...
Risk of Failure = More Rapidly
Finding Solution
You can’t manage IT the same way you’ve
always managed it and empower flexibility.
James Staten, Forrester Research
Web 2.0 vs. Traditional Viewpoint
Chaos Control
1. People will use the tools anyway 1. Not on work time
2. Internal and ex...
Governance processes are often
overweight, take too long to develop
and suffer from slow implementation.
Dr. R. Cherinka, ...
Change and Governance
1.0 2.0
What never works
What no longer works
What worked
governance 2.0
Simplified & Effective Risk
Management in 2.0 World
governance 2.0
Source: Victoria Government
How do we let the Government
2.0 genie out of the bottle?
Comparing Conventional and Systems
Thinking
Conventional (Open-Loop) Thinking Systems (Closed-Loop) Thinking
Static thinki...
High Level Relationship of Government
Enterprise Architecture (EA) and E-
Government Maturity
E-Government Maturity
Stages...
• Mashups of service and content through intermediaries, web service
• Citizen/business engagement to enhance trust and lo...
Government 2.0 Risk Register
Low Medium High
• Information
Quality*
• Costs (existing
data)
• Human
Resource
capabilities
...
Government IT Governance Structures
Bottom-Up
Mandate,
Governance &
Control
Top-Down
Mandate &
Bottom-Up
Governance &
Cont...
Software Governance Structures
Bottom-Up
Mandate,
Governance &
Control
Top-Down
Mandate &
Bottom-Up
Governance &
Control
T...
Government 2.0 Risk FactorsProjectFocus
Internal Silo
Internal Cross
Agency
Across
Government
Tiers
External to
expert
com...
Government 2.0 Governance Matrix
Risk
Register
HighMediumLow
Agenda
• Risk & government IT innovation
• Government IT risk approaches
• Government 2.0 adoption
• Transparency changes ...
As technology advances, it reverses the
characteristics of every situation again and
again. The age of automation is going...
McKinsey 2009: Measures to
Successfully implement Web 2.0 Tools
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Integrating in...
Internet Evolution to 2020
Increasingknowledge
connectivity
Increasing social connectivity
1.0
The Web:
Connects Informati...
Government 2.0 Sequence Good Practices
Scope
ExternalInternal
Departmental Transformational
Focus
1. Follow before Lead
2....
Value of Small Projects
Government 2.0 Governance
Experimentation
Stage
Operational Stage
Build Capacity Follow before Lead Build tech & social ca...
Presentation + More Details:
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Emperor has no Clothes: IT Governance in Age of Transparency and Open Government
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Emperor has no Clothes: IT Governance in Age of Transparency and Open Government

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Transparency and accountability have become strong themes in government. Social media and open government initiatives have introduced a new risk and reward paradigm for public servant careers and for government organizations. Transparency, in itself, has become a key performance indicator. This presentation explores the effects of social media on risk management in government and how Government 2.0 technology enables managing for results. An updated methodology on calculating open government value will be discussed.

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Emperor has no Clothes: IT Governance in Age of Transparency and Open Government

  1. The Emperor has no Clothes Risk & Results in Increasingly Transparent Government 2.0 World www.fmi.ca Professional Development Week November 2010
  2. There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle than to initiate a new order of things. Niccolo Machiavelli
  3. Age of Transparency
  4. With apologies to Hans Christian Andersen, Brothers Grimm, Aesop, Mother Goose…
  5. …and all the technology companies with fairy tail justification for your money.
  6. evangelical descriptions of the Government 2.0 examples presented during the event. However, there was an under-emphasis on subjects such as process change, adaptable methodology, and cultural dynamics. Steve Guengerich
  7. Government 2.0 Governance in Context Scope EnterpriseProject Social Transactional Focus
  8. Government 2.0 Governance in Context Scope ExternalInternal Social Transactional Focus
  9. The future ain’t what it used to be Yogi Berra
  10. vendors brewing cost justification
  11. Facts vs. Deduction (the “white paper”) vs. Urban Myth (the “case study”)
  12. What “should” work vs. What “actually” works
  13. Truthiness
  14. Drivers for Innovative Approaches globalization transparency technology governance crisis knowledge introduction
  15. Premise • Traditional approaches to IT risk not fully effective • Less so in Government 2.0 era • Exposing: risk adverse = high risk highly predictable = failure • New approach to risk required • Change in governance mechanisms introduction
  16. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices introduction
  17. Most of our assumptions have outlived their uselessness. Marshall McLuhan
  18. TLAs • GRC – (Governance, Risk & Compliance) • ERM – (Enterprise Risk Management) risk & innovation
  19. Risk is good
  20. Risk has Reward Upside
  21. Risk Reward Reward positivenegative low high Risk
  22. Governments tend to be risk- averse, including in their acquisition of technology. What is not clear is if government would be innovative in its use of technology were it not for the fact that its processes at mitigating risk often also kill innovation. 2003-04-16 Gartner Managing Risk in Public-Sector Procurement
  23. What is government innovation? • Lacks the prerequisites for innovation? – Creative thinking – Idea experimentation – Inventiveness • Economic incubator – “Government as Platform” • Services modernization – improved citizen and business services risk & innovation
  24. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices gov IT risk
  25. Risk can be more about fear than risk
  26. Approaches to IT Risk What can go wrong? • The FUD Factor – Anecdotes – Urban myths – Edge cases • Risk factors – Political – Contractual – Programmatic What can go right? • Absolute certainty – Facts – Scientific studies – Proven elsewhere • Risk factors – Innovation gov IT risk
  27. Typical Government IT Project Concerns Policy Operational Political Will project be completed within the current Government mandate? Will project be on time? Contractual Will vendors complain about unfair practices? Will the right solution / best value be acquired? Programmatic Did the expected outcomes occur? Will project be on budget? based on Gartner framework
  28. Interpretation of Government IT Failure Policy Operational Political Proves policy ineffectiveness Civil servants did not have competence to execute policy Contractual Proves policy was too expensive to have benefits Civil servants unable to choose most effective solution Programmatic Proves policy was too difficult to have benefits Civil servants were not able to manage the project on time & on budget based on Gartner framework
  29. Focusing so much energy on avoiding political embarrassment leaves too little energy, or interest, to mitigate the challenges of programmatic risks, thus threatening the project's success. 2003-04-16 Gartner Managing Risk in Public-Sector Procurement
  30. Success & Upside of Government IT Risk Policy Operational Political Government is committed to effective policy. Low cost with high benefits thanks to effective project management Contractual Efficient, effective, competitive and cost effective. Low cost with high benefits thanks to effective contract management Programmatic Efficient, effective, competitive and cost effective. Low cost with high benefits thanks to effective project management Innovation Government is world leader in innovation. Low cost with high benefits thanks to leveraging innovative solutions. based on Gartner framework
  31. The New Normal • Same depth of analysis on what can go right, what can go wrong needed • Risk identified to mitigate • Room for experimentation with chance of failure • Risk of not doing it • Risk of rogue Web 2 gov IT risk
  32. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices gov 2.0 adoption
  33. Government 2.0 Adoption: Lies, damn lies and statistics?
  34. Forrester 2007: Value of Web 2.0 in Enterprise 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% RSS Podcasting Wikis Social networking Blogs Substantial Value Moderate Value Limited Value No value Don't Know gov 2.0 adoption e 2.0
  35. Forrester 2010: Web 2.0 adoption in business plans 0% 20% 40% 60% 80% 100% Microblogs Idea generation tools Social networking tools Blogs Discussion forums Wikis Implemented, not expanding New or expanded deployments No plans Don't know gov 2.0 adoption e 2.0
  36. ZEW/Creditreform 2009: Web 2.0 In-house usage 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Exchanges of information Knowledge management Communication Contacts management Innovation/suggestions gov 2.0 adoption e 2.0
  37. ZEW/Creditreform 2009: Web 2.0 External usage 0% 20% 40% 60% 80% 100% Customer and supplier relations External communication Work on joint projects Marketing gov 2.0 adoption e 2.0
  38. IDC 2009: Leadership Use of Web 2.0 Technologies 0 10 20 30 40 50 60 RSS Blogs YouTube Wikis Twitter Livecasti ng Facebook Virtual World % Deploying Technology Government Non-Government gov 2.0 adoption
  39. IDC 2009 : Using Web 2.0 for Information Delivery 0 10 20 30 40 50 60 70 Education Recruitment Co-Develop Content Response to Feedback Customer Alerts Program Info (%) % Deploying Technology gov 2.0 adoption
  40. HP 2010: US Federal Government Survey on Government 2.0 Usage 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Social Networks General Blogs Video & Muiltimedia sharing Social Networks Government Specific Podcasting Wikis Collaboration Suite Syndicated web feeds Virtual worlds gov 2.0 adoption
  41. Gartner 2009 Recommendations Benefit Less than 2 Years 2 to 5 Years 5 to 10 Years More than 10 Years Transformational • Web 2.0 • Cloud Computing High • Green IT • Social Software Suites • Shared Services Moderate • Corporate Blogging • Micro-blogging • Wikis Low From Gartner: Emerging Technologies & Government Transformation Hype Cycles
  42. Benefits from IT-Enabled Connected Government Internal To Provider Agencies and Governments External To Consumer Citizens and Businesses 1. Avoidance of duplication 1. Faster service delivery 2. Reduction in transaction costs 2. Greater efficacy 3. Simplified bureaucratic procedures 3. Increased flexibility of service use 4. Greater efficiencies 4. Innovation in service delivery 5. Richer communications & coordination 5. Greater participation and inclusion 6. Enhanced transparency 6. Greater citizen empowerment 7. Greater information sharing 7. Greater openness and transparency 8. Secure information management Source: Dr. Pallab Saha
  43. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices transparency
  44. Unintended transparency might not be every public sector manager’s dream. Tommy Dejbjerg Pedersen
  45. Transparency means you can’t put your reputation back together again
  46. Citizens are Watching You value 2.0
  47. Reputational Risks • Beyond your network • No control over your “message” • Not engaging social networks – huge reputational risk transparency
  48. Unintended Consequences input outturn output mandate budget outcome transparency
  49. Unintended consequences • False positive: – Measurements show success, but impact is negative • False negative: – Measurements show failure, but impact is positive • Why? – No objective measurement like profit Measured Outcomes Outcomes not measured transparency
  50. Unintended Consequences input outturn output mandate budget outcome transparency
  51. Web 1 Era • Push business models • Commercial software • Customer service • Bestseller products • Traditional media • 1 to 1 Customer relationships • Centralized product development Web 2 Era • Pull business models • Open source software • Customer self-service • The Long Tail • Social Media • Customer community management • Decentralized product development institutions communities of individuals shift of control unpredictability variety volume central production peer production transparency Source: Dion Hinchcliffe ZDNet
  52. Digital Age Democracy A New Era of Digital Governance Industrial Era Digital Era Democracy Representative Participatory Citizens Passive Consumers Active Partners Politics Broadcast, Mass, Polarized One-to-One States National, Monocultural Global, Local, Virtual, MulticulturalSource: Mills Davis, Microsoft
  53. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices risk 2.0
  54. I’m the “NO” guy in your organization and most likely the person to bring your enterprise 2.0 or web 2.0 project to a grinding halt. People in my position do not want to hear about being social. I don’t care what you had for lunch or what your kids did last night. I don’t want to endanger the multi-million dollar value of this company so that you can play with Facebook inside the office. Now get out of my office before I sic my flying monkeys on you. Doug Cornelius, Compliance Building blog
  55. IDC 2009 : Top Challenges Your Organization Faces in Deploying Web 2.0 0 10 20 30 40 50 60 70 80 90 Budget Technical Expertise HR Constraints Security (%) Government Non-Government risk 2.0
  56. HP 2009: Main Barrier to Government 2.0 Adoption, US Federal Government 40% 21% 14% 9% 8% 9% Security Concerns Lack of Budget Technical expertise/ability Uncertainty regarding what resources are available Lack of compelling need or reason None risk 2.0
  57. Deloitte 2009: Move to more collaborative model of government requires re-organizing traditional work structures 0% 10% 20% 30% 40% 50% 60% Strongly agree Agree Neutral Disagree Strongly disagree risk 2.0
  58. Deloitte 2009: Biggest barrier to effective Web 2.0 implementation 31% 18% 25% 5% 18% 2% Culture of hierarchy doesn't fit flattening of organization Potential loss of control over messaging Limited awareness of Web 2.0 technologies Concerns that Web 2.0 initiatives may increase workload Concerns that privacy and security can't be managed sufficiently Don't know risk 2.0
  59. Deloitte 2009: Mitigating the downsides of a flattened organization, such as the potential disenfranchisement of middle management, presents a: 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Significant challenge Moderate challenge Little challenge No challenge risk 2.0
  60. Deloitte 2009: Managing the generational divide in an organization introducing collaborative technologies into the work environment presents a 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Significant challenge Moderate challenge Little challenge No challenge risk 2.0
  61. Deloitte 2009: Developing a compelling case for Web 2.0 presents a: 0% 10% 20% 30% 40% 50% 60% 70% Significant challenge Moderate challenge Little challenge No challenge risk 2.0
  62. Fear around the security of data is a real issue and the risk can never be entirely eliminated Jessica Hawkins, Ovum
  63. Models of Government Data Publish Social Media Purpose You know how data will be used You do not know how data will be used Container Documents Machine readable Quality Vetted, edited, approved Community Vetted Deployed Slow Rapid
  64. Web 2.0 does uncomfortable things: it releases assets into the wild, it empowers users to speak their mind, it asks people to share and collaborate in a way which has been unprecedented in the past. Mike Ellis-Science Museum UK, Brian Kelly-University of Bath
  65. Constraints 1. Legacy systems 2. Organizational risk aversion 3. Personal risk aversion 4. Policy limitations 5. Internal view of the “public” & expertise risk 2.0 Sources: Alexandra Samuel. Ariel Waldman
  66. Government 2 Risk and Perceived Risk Risk Perceived Risk risk 2.0
  67. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices value 2.0
  68. Government 2.0 Value Proposition • Public Value – Better/fairer decisions • Increased Capacity – Solving “wicked” problems • Support – Increased legitimacy of public decisions • Government Value Add value 2.0 Source: Yasmin Fodil, Anna York
  69. HP 2010: Top Benefit to Adopt Government 2.0 in US Federal Government 33% 20% 20% 18% 5% 3% Improved services to the public Citizen participation in government Collaboration between agencies Government transparency Innovation by government Government 2.0 offers no benefits value 2.0
  70. Deloitte 2009: Where will Web 2.0 have greatest impact for government? 9% 32% 28% 23% 9% Enhance resources for resource management Improve collaborative policy development Remove layers between line workers and leadership Enhance innovation Facilitate access to information requests value 2.0
  71. Will it Be Used? 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000 Paid subscription Documents published Open data value 2.0 Source: Government of Australia
  72. Deloitte 2009: Collaborative technologies • Biggest impact • Hardest to implement 10% 13% 11% 23% 18% 26% Generate policy ideas Refine and prioritize the best ideas Apply networked approaches to societal challenges Feedback/evaluation Change daily operations Information sharing & more effective use of government information 14% 8% 25% 3% 44% 5% value 2.0
  73. Out of Network value 2.0 Source: INgage Networks
  74. Government 2.0 Footprint social Government 2.0 structural “back office” e-government internal external Focus
  75. Out of Network vs. In Network value 2.0 Source: INgage Networks
  76. Network Effect network node Number of Nodes 8 Potential Maximum Value (by power law) Metcalfe’s Law – 60 Odlyzko & Tilly Law – 16.6 Reed’s Law -257 value 2.0 Source: http://web2.wsj/com
  77. Deloitte 2009: User-driven citizen feedback will have the greatest impact on 13% 52% 5% 30% Programs/services are developed Programs/services are delivered Policy is developed Policy is refined
  78. ROI is a delectable option that has unexpected risk
  79. Return on Investment Model Year 1 Year 2 Year 3 Year 4 Year 5 Cost Revenue Return value 2.0
  80. It is the framework which changes with each new technology and not just the picture within the frame. Marshall McLuhan
  81. ROI – Traditional Model for Value • Poor analytical framework for social media • Deals with internal revenue and costs • Silo – only the value of the data set in isolation • Network? value 2.0 node
  82. Economic Value Add - EVA • Incremental cost to make data open and machine readable • Value to private sector • In aggregate value 2.0 network node
  83. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices governance 2.0
  84. 55% of IT mgrs believe #ITGovernance is effective, but just 40% of business unit mgrs do Cutter Consortium Tweet
  85. Deloitte 2009: Governance solutions that will have greatest impact on government 18% 14% 14% 17% 21% 16% Develop implementation toolkit Present Web 2.0 at CXO councils Presidential directive Reverse mentoring Create e-people/e-democracy organization Desination of collaboration champion for cross-boundry collaboration governance 2.0
  86. Deloitte 2009: Business case solutions that will have the most transformational impact on government 34% 13% 8% 28% 17% Develop government-wide business case Reduce costs of travel Focus groups Redefine business case to focus on effectiveness Reduce costs through duplication governance 2.0
  87. In the IDC survey, only 18% of government responders indicate their agency measures the success of Web 2.0 technology in meeting mission objectives, 14% for industry Adelaide O’Brien IDC 2009
  88. Architectural Maturity Stages & IT Value Business Silos Standardized Technology Optimized Core Business Modularity Locally Optimized Business Solutions Enterprise-Wide Technology Standards Standard Enterprise Processes, Data Standard Interfaces & Business Strategic Business Value Local Flexibility Source: Jeanne W. Ross
  89. Risk of Failure = More Rapidly Finding Solution
  90. You can’t manage IT the same way you’ve always managed it and empower flexibility. James Staten, Forrester Research
  91. Web 2.0 vs. Traditional Viewpoint Chaos Control 1. People will use the tools anyway 1. Not on work time 2. Internal and external social networking 2. Company confidential information 3. Free expression of ideas 3. Privacy concerns 4. Individualization of information context 4. Regulatory compliance & e- discovery 5. Expertise vs. opinion 5. Control over content & opinion 6. Non standard tools 6. Process to codify knowledge 7. Burden on infrastructure 7. Return on investment? 8. Secure information management Source: Nick Semple
  92. Governance processes are often overweight, take too long to develop and suffer from slow implementation. Dr. R. Cherinka, Dr. R. Miller, J. Prezzama and C. Smith, Mitre Corporation
  93. Change and Governance 1.0 2.0 What never works What no longer works What worked governance 2.0
  94. Simplified & Effective Risk Management in 2.0 World governance 2.0 Source: Victoria Government
  95. How do we let the Government 2.0 genie out of the bottle?
  96. Comparing Conventional and Systems Thinking Conventional (Open-Loop) Thinking Systems (Closed-Loop) Thinking Static thinking Focusing on particular events Dynamic thinking Framing a problem in terms a pattern of behaviour over time Systems-as-effect Viewing behaviour generated by a system as driven by external forces. System-as-cause Placing responsibility for a behaviour on internal factors and actors. Fragmented Believing that really knowing something means focusing on the details Holistic Believing that to know something requires understanding the context of relationships. Factors thinking Listing factors that influence or correlate with some results. Operational thinking Concentrating on causality and understanding how a behaviour is generated. Straight-line thinking Viewing causality as running in one direction, ignoring the independence and interaction between and among Loop thinking Viewing causality as an ongoing process, with effect feeding back to influence the causes and the causes Source: Dr. Pallab Saha
  97. High Level Relationship of Government Enterprise Architecture (EA) and E- Government Maturity E-Government Maturity Stages Government EA Maturity Stages Business Silos Standardized Technology Rationalized Data & Applications Business Modularity 1. Web Presence  2. Interaction   3. Transaction   4. Transformation   Source: Dr. Pallab Saha
  98. • Mashups of service and content through intermediaries, web service • Citizen/business engagement to enhance trust and loyalty • Service provision at citizens’ location • Virtual world experimentation • Employee & constituent feedback on info, service, forums • Tagging and social bookmarketing of gov’t content • Wikis to support interaction, citizen engagement • Social network sites and blogs • Virtual world interactions • Institutional vs external oriented blogs • Enterprise social networks • Podcasts & vlogs • Wikis • RSS Service Focused Interaction Focused Communications Focused Framework for Government Use of Web 2.0 Internally focused (employee and other agencies) vs. externally focused (citizens & business) Source: Ai-Mei Chang, P.K. Kannan
  99. Government 2.0 Risk Register Low Medium High • Information Quality* • Costs (existing data) • Human Resource capabilities • Technical capabilities • Information Quality* • Costs (new data) • Mandate & Mission • Legal Liability • Intellectual Property • Security • Privacy Source: Linda Cureton, Brian Drake, Dr. Mark Drapeau, Steve Radick, Michael J. Russell
  100. Government IT Governance Structures Bottom-Up Mandate, Governance & Control Top-Down Mandate & Bottom-Up Governance & Control Top-Down Mandate & Control, Bottom- Up Governance Top-Down Mandate, Control, Governance • Projects • Government 2.0 i.e. Collaboration • Shared services • Government 2.0 i.e. Wiki • Budget process • Government 2.0 i.e. Ideation • Access to Information • E-Government i.e. transactions
  101. Software Governance Structures Bottom-Up Mandate, Governance & Control Top-Down Mandate & Bottom-Up Governance & Control Top-Down Mandate & Control, Bottom-Up Governance Central Control • Real identity • Wiki • Moderated discussion, forum, blog • Document management & traditional collaborative tools
  102. Government 2.0 Risk FactorsProjectFocus Internal Silo Internal Cross Agency Across Government Tiers External to expert community External open Activity Support Programmatic Support Mission Policy Support Policy Development Modest Size Big Bang Broadcast Broadcast+ Interactive Communication Focused Interaction Focused Service Focused Experimental Early Stage Roll-out Business function ownership Leadership ownership IT ownership Managed user identity Peer governance Moderated Open Technology Footprint Enterprise Architecture Rationalized data and applications Standardized technologies Silos, No Standards Open Source internally hosted Commercial internally hosted Open Source internally hosted & adapted Commercial internally hosted & adapted External Social Network Custom Developed Low Moderate Medium Medium- High High
  103. Government 2.0 Governance Matrix Risk Register HighMediumLow
  104. Agenda • Risk & government IT innovation • Government IT risk approaches • Government 2.0 adoption • Transparency changes (mostly) everything? • Risk 2.0 • Value 2.0 • Governance 2.0 • Government 2.0 good practices good practices
  105. As technology advances, it reverses the characteristics of every situation again and again. The age of automation is going to be the age of “do it yourself.” Marshall McLuhan
  106. McKinsey 2009: Measures to Successfully implement Web 2.0 Tools 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Integrating into employees' day-to-day work activites Senior leaders role modeling/championing use of technology Providing informal incentives Allowing nonwork uses Providing formal incentives good practices
  107. Internet Evolution to 2020 Increasingknowledge connectivity Increasing social connectivity 1.0 The Web: Connects Information 2.0 The Social Web: Connects People 3.0 The Semantic Web: Connects Knowledge 4.0 The Ubiquitous Web: Connects Knowledge Source: Mills Davis
  108. Government 2.0 Sequence Good Practices Scope ExternalInternal Departmental Transformational Focus 1. Follow before Lead 2. Small internal low cost projects with chance of failure 3. Focus on small wins 4. Iterate 5. Governance Level 2
  109. Value of Small Projects
  110. Government 2.0 Governance Experimentation Stage Operational Stage Build Capacity Follow before Lead Build tech & social capacity Develop Gov 2 Mission Strawman mission Develop engagement goals Design for Outcomes Strawman metrics Align to mission Create an Implementation Strategy Tools follow goals Tools follow goals Gov 2 Policies Code of Conduct Code of Conduct Identify Stakeholders Identify enthusiasts, champions Cross-functional teams Develop Governance Strategy Small projects Program management Value Motivation Economic value add Extend/Consult IT standards Consider draft changes IT Governance Iterate Develop feedback mechanisms Project specifications Clearly defined Focus Internal Internal & External
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