This document summarizes an IBM presentation on using analytics to improve government performance. It discusses how governments can become leaders in analytics by focusing on nine key areas: sponsorship, funding, strategy, talent, platform, technology, organization, culture and trust. Specific examples are given of governments using predictive modeling to improve tax collection, engaging citizens through online forums, and addressing skills shortages. The document recommends governments accelerate analytics through a results-focused program, make analytics a core competency, establish a business-driven agenda, enable shared expertise and technology, and create a data-driven culture.

1. ©2014 IBM Corporation
Leadership in Challenging Times:
New Approaches to Business
Analytics in Government
Speaker: Cathy Reese, Technology & Data Program Leader, Strategy & Analytics
IBM Global Business Services

2. ©2014 IBM Corporation|2
Governments are using analytics to deliver better results
What If...
Performance
Management
...could create a performance-
based culture supported by
analytics that allows government
to do more with less?
Human
Resources
...could recruit and
employ people who will
succeed in a government
organization?

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Sponsorship
Source of
Value
Funding
Data
Talent
Platform
Culture
Trust
Impact
Strategy Technology Organization
What makes a leader in Analytics?
Nine Levers of Analytic Excellence: 2013 IBM BAO IBV Research
Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM

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Sponsorship
Source of
Value
Funding
Strategy
What makes a leader in Analytics? STRATEGY
A significant difference between Leaders and
Laggards is the level and depth of executive
support and involvement in analytics
Most organizations are focused on revenue
generation as opposed to cost savings
48% of Leaders allocate funding to support a
shared pool of resources and activities
compared to 30% of Laggards
Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM

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AAAAA
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New York State Tax
Predictive modeling improves tax
revenues and citizen equity
> $1.2 billion reduction in improper or
questionable refunds paid
$100 million increase in delinquent tax
collections
Over a 350% increase in criminal
tax fraud investigations due to greater
interdepartmental collaboration on cases

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Data
Talent
Platform
Technology
What makes a leader in Analytics? TECHNOLOGY
Almost half of Laggards are skeptical or completely
lack confidence in the data and information within
their organization, and do not use it to make
decisions
Leaders have advanced analytics subject matter
experts who are shared across the organization
The inability to create, integrate and manage data
was cited as the top technology challenge
Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM

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City of Zurich
"City Debate" Jam
Gave more than 3500 participants the
opportunity to participate actively in the
development of the city and bring in and
discuss new ideas
Enabled leaders to hear from diverse
sources and groups of people
Sped the process of information gathering
and policy creation through the ability to
quickly analyze and correlate unstructured
data

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Culture
Trust
Impact
Organization
What makes a leader in Analytics? ORGANIZATION
Leaders have a high level of trust within their
organization compared to Laggards
Two-thirds of Leaders see a return on their
analytics investments within a year
The majority of Leaders make more than half their
decisions based on data and analytics
Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM

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43%
48%
51%
58%
60%
IT Skills for
BI SW
Decision
making skills
Spreadsheet
Analysis
BI for
Dashboard
Reports
Advanced
Analytics
Leaders' Challenge.... Finding analytics skills
% of organizations whose business
analytics initiatives are being
hindered by a shortage of skills
Type of Skill
November 2012
IBM Canada Selects Nova Scotia as
Its First Canadian Global Delivery
Centre Location
NSBI
November 2013
IBM awards multi-million dollar
cloud computing platform to
seven Nova Scotia schools
newswire.ca
November 2012
IBM to launch analytics centre, hire 500
The Chronical Herald
Source: Gartner, "Business Analytics Buyer Survey, 2013: A Skills Shortage
Is Widely Inhibiting Successful Business Analytics Initiatives", 2013

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Government can develop analytics leadership by
following three key sets of recommendations
10
Organization
Accelerate analytics with a results based program
Drive change with analytics as a core competency
Instill a sense of purpose. Establish a business-driven
agenda for analytics that enables executive ownership, aligns
to enterprise strategy and business goals, and defines new
business capabilities.
Architect for the future. Enable the agenda with shared
analytical expertise, new technologies, and a simplified and
flexible platform.
Enable the organization to act. Create a data driven culture
built on relationships to generate business value.
Enrich the core analytics platform and capabilities
Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM
Strategy
Technology

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Questions?