Keynote Address: Changing Public Sector Through ICT-innovation

Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 131
e-Government and
modernization in advanced
states
Christian Wernberg-Tougaard,
Director, Government, Education & Health
EMEA

The following is intended to outline our general product direction. It
is intended for information purposes only, and may not be
incorporated into any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be relied upon in
making purchasing decision. The development, release, and timing
of any features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
Safe Harbor Statement

Overview
 E-government – now and in the future
 Modernization – what’s happening?
 Short overview: some of the more advanced countries

eGovernment – still valid?
Government with/out “e”?
• It is often debated whether
or not “e” is relevant – or
whether or not it should be
replaced with “m” (mobile)?
• But: every Government
needs to embrace ICT as a
fundamental part of their
operation regardless of its
form throughout all levels of
administration.
• So increased service-
enablement and digita-
lization is still very valid.
Huge differences
• But there are huge
differences between the
most advanced and the less
advanced on “e”.
• There seems to be a good
number of examples of how
advanced governments
have coped with
transformation from
immature to mature – but
the big question is:
• How to LEAPFROG?
Leapfrogging(1)
• Less advanced should use
their effort (time and
money) on “shortcutting” by
• Discarding “NIH” (not
invented here) and
• Adopting “good practice”
from more advanced
countries.
• Identify “key structures”
required for
transformation.
• Countries to look out for is:
• Australia, Nordics (DK,
SE, NO) and the UK.
(1) http://www.ictregulationtoolkit.org/en/Section.1829.html

Trends in Modernization
Paradigm shift Technology shift

Centralized vs Decentralized
 More and more Governments realize that they need to control the digital agenda
and centralize decision making, as decentralization
– cause incommensurable solutions (data models) and higher costs
– cause “rule of law” issues for citizens and companies
– cause lower efficiency and effectiveness
 Advanced states looks at:
– Centralizing Social Benefits and Tax Credits determination in a unified model.
– Unified Health Care service in coordination with Social / Local Care / GP.
– Centralized administration of Pension, Unemployment, Tax Adm. ao.
– “Forced” best practice on local government to achieve uniformity.

Disintegrated vs. Integrated
 Fragmentation is a major issue for Governments that try to “leapfrog”.
– A survey by the World Bank indicated that fundamental core (infra)structures needs to be in
place in order to cash-in on ICT innovations.
 Fundamental components for Government Agencies in achieving long-term success with
digitalization are:
– Consistent Master and Meta-data.
– Separation of processes and policies.
– Reuse of data between different stakeholders – including fixing the “sow/harvest” challenge
through Governance models.
 Advanced states looks at:
– Centralizing / homogenizing Master Data and Governance.
– Enabling “Law/rules/policies” enablement lifecycle model
– Integrated Health care and social care/social services.

Legacy vs CEFA
 Governments are battling “burning platforms” caused by multiple
elements:
– Lack of skills among ICT staff (eg. COBOLT) to maintain source code.
– Life end of maintenance components (ie. eBay shopping for parts).
– Hand-on expertise is retiring.
 CEFA = Componentized Enterprise Functional Architecture

Build vs Buy
 There are quite a large number of Governmental organizations that
believe that “Build is better than Buy” because they get things exactly
as they want it – and cheaper. This is a myth:
– Green-field build is never a good option, unless you are very unique.
– Public Sector Organizations are NOT unique. Your next door neighbor is
doing the same as you – from a process point of view. What really differs is
the POLICIES.
– A number of Governments have adopted “BUY” paradigms in order to
cash-in on the high degree of maturity of COTS (Commercial-of-the-shelf).
 CEFA = Componentized Enterprise Functional Architecture

Impact on “Modernized Government”
Increased Direct ICT Impact Indirect ICT Impact
Centralization •Consolidated Data Centers
•Cloud and Shared Service
•Unified Service Platforms
•Organizational Change
•Process and Policy Optimization
•Budgeting and Planning
•Collaborative and Social Empowerment
•Knowledge Sharing
Integration/Interoperability •Cross Public Sector Data Sharing
•Common Solutions and Gateways
•Citizen Access to Own Data.
•Utilization of Public Sector Data in Society
Legacy Modernization/CEFA •Introduce the “least sticky stack”.
• Enable “best of breed”
functionality
• More agile service enablement in all sectors
• Can maintain existing investments (no
“Rip’n’replace”)
Buy •Reduced cost – as buy is cheaper
than build
• More flexibility and lower risk in
solution provisioning.
• Increased international standardization on
both technical and vertical areas.
• Relatively more investment in innovation on
product level and solution level.
Note: Governments should carefully evaluate functionality and a high number of other attributes, if addressing Open Source vs. COTS.
Please review this paper: http://www.igi-global.com/chapter/evaluating-open-source-government/27812 , which I wrote back in 2006.

Complex Solution Strategy
Why Componentized Enterprise Functional Architecture?

Componentized Enterprise Functional Architecture
Front-end – Portal – Citizen Interface
AuthenticationofCitizensand
CaseWorkers
MasterDataManagement
Case Management Policy Automation
Business & Social
IntelligenceContribution and
Collection
Disbursement
Data Integration / Interoperability + Data Quality
Database and optimized HW foundation
Document Handling and Producing
EnterpriseSecurity
GRC,EFC(*)andVault/Audit
(*) EFC = Error, Fraud and Corruption

Componentized Enterprise Functional Architecture
Focus on the CRM – Citizens Relationship Management
Front-end – Portal – Citizen Interface
AuthenticationofCitizensand
CaseWorkers
MasterDataManagement
Case Management Policy Automation
Business
IntelligenceContribution and
Collection
Disbursement
Data Integration / Interoperability + Data Quality
Database and optimized HW foundation
Document Handling and Producing
EnterpriseSecurity
GRC,EFC(*)andVault/Audit
(*) EFC = Error, Fraud and Corruption
Citizens (Case) Management component:
• Public Sector / Social Service data model
• Embedded business processes
• Rules and processes separated
• Integrated with other components
• Modern, mobile flexible (HTML 5) UI
• Innovation Packs add functionality without re-implementation
• High-number of additional “Citizens Relationship Management”
functionality.
• Integrate with SRM – Social Relationship Management.

Examples of modernization
in advanced states
 Innovation
 Paradigm Change
 ICT Transformation Vision

Case: Denmark
 Denmark introduced a wide number of key registers in the mid-60’s. These
registers are the foundation of digitalization today, as the identity of every
citizen, company and building is know.
– For 99% of all births, the child is granted a unique identifier with 15 min, and within
2 hours the child is in (around) 37 sub-systems, from child nurse to payment of
child benefit (to the mother).
– Aggregated property data allow any citizen to access information on any property
with more than 400 data points (construction year, roof type etc).
 Modernization:
– Centralized “gateways” (NEM = Easy) + Citizens Portal (Borger.dk)
– Digital-ready legislation -> laws to be ready for digitalization in an integrated life-
cycle approach.
– Consolidation of “social benefit” payments into a single organization.
– Rethinking coordination and data sharing across Health Care and Social Care
(Digital Welfare).
– Free access to all Government’s accumulated core data.
– Centralizing Payment Administration (from municipalities); expert centers on Tax
Law interpretation.
– Centralized core data access service (called “Datafordeleren”) now tendering.

Case: UK
 With the “Universal Credit” reform, the Government
is changing the Social Welfare layout recommended
by Beveridge in the 1940’s.
– The Government is centralizing determination
(eligibility) and administration of a number of social
welfare benefits and tax credits.
– The disintegrated existing solutions for administration
and determination of eligibility caused a number of
examples of excessive pay-out’s in Social Benefits – as
well as that the dis-joint systems were unable to
(easily) detect Error, Fraud and Corruption (EFC).
– The Universal Credit system will be in operation in late
2013.
 New Strategy for “Digital by Default” –> focusing on
how to homogenize the governance of Government
eServices (ie. how to move from idea to
implementation).

Case: Australia / New Zealand
 Australia has for years been first-mover in separating processes and
policies. The product “OPA” (Oracle Policy Automation) was originally
developed in Australia and used in a number of Government Agencies.
 New Zealand is among the leaders in “holistic rules life-cycle” – from
validating impact of proposed legislation to actually implementing this in
their systems(1).
 But also in other areas they are innovating:
– PVP -> Public-Volunteer-Partnership – centrally procured case management
solution mandatory for Voluntary organizations to use.
– Mandatory Reporter Guide (regional centralized child at risk reporting).
(1) http://www.ird.govt.nz/calculators/keyword/incometax/calculator-pts-calculator-2012.html

Case: Netherlands
 Netherlands have been advancing on their cross-ministerial coordination and e-
services offerings/enablement.
– SVB (Sociale Verzekeringsbank) is responsible for determining eligibility and paying
several social welfare benefits, inc. child benefit and old age pension.
 The existing legacy suffered from lack of maintainability, lack of skilled resources and
“future-durability” even though it operated with >95% STP (Straight Through
Processing).
 Investing in a complete re-modernized event-driven architecture supported by an
Oracle CEFA (“Full red stack”) they are prepared to meet the future.
 By aggregating 3rd party information they want to construct the most accurate “citizen
data profile”, so that determination becomes as correct as possible.
– UWV (Social Security + Unemployment) is considering next generation of data integration
service to provide them with streamlined data around citizens, companies and partners.
– Belastningdinst (Tax Agency) is streamlining utilizing a COTS approach.

A few observations from advanced states

Keynote Address: Changing Public Sector Through ICT-innovation

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