1. State-of-the-States: CIO Priorities, Trends and Opportunities
XChange SLED Conference
May 24, 2017
@NASCIO

2. About NASCIO
National association representing state chief information officers and information technology executives from the states, territories and D.C.
NASCIO's mission is to foster government excellence through quality business practices, information management, and technology policy.
NASCIO provides members with products and services designed to support the challenging role of the state CIO, stimulate the exchange of information, and promote the adoption of IT best practices and innovations.
@NASCIO

3. 2017 budget cuts in many states - revenue growth of 2%
2017 budget cuts in many states - revenue growth of 2%. Budget proposals for FY 2018 remain cautious. CIOs pressured to find cost savings, driving consolidation, optimization strategies.
Continued evolution from the owner-operator business model for CIOs – focus on services and hybrid models of delivery
Cybersecurity as a business risk. Ransomware, hacktivism and evolving threats. Enterprise strategy, communication and talent
Growing investments in cloud services, data analytics, mobile
Advocating for IT modernization, agile approaches, procurement reform
Continuing IT workforce challenges: retirements, skills gap, recruiting, talent management, workplace innovation

4. State General Fund Spending Grows Moderately
Annual General Fund Expenditure Growth (%)
*Average
*38-year historical average annual rate of growth is 5.5 percent *Fiscal 2017 numbers are enacted.
Source: NASBO Fiscal Survey of States

5. States Enact Modest Spending Increases - FY 2017
DIRECT MOST NEW DOLLARS TO K-12 AND MEDICAID
FY 2017 Enacted General Fund Spending Changes by Category

6. Top Ten: State CIO Priorities for 2017
1. Security
2. Consolidation/Optimization
3. Cloud Services
4. Budget and Cost Control
5. Legacy Modernization
6. Enterprise IT Governance
7. Data Management and Analytics
8. Enterprise Vision and Roadmap for IT
9. Agile and Incremental Software Delivery
10. Broadband/Wireless Connectivity
Source: NASCIO State CIO ranking, November 2016

7. State Governments at Risk:
Turning strategy and awareness into progress

8. Emerging trends
Top cyber threats across state government

9. Key takeaways
#1: Governor-level awareness is on the rise

10. Key takeaways
#2: Cybersecurity is becoming part of the fabric of government operations

11. Key takeaways
#3: A formal strategy can lead to more resources

13. Business Models, Sourcing and the CIO as Broker
What business models and sourcing strategies does your state CIO organization currently use?
2010
2015
2016
Owns and operates all state IT assets and operations
32%
30%
31%
Owns and operates multiple data centers
58%
53%
54%
Owns and operates a consolidated data center
55%
64%
68%
Outsources some of its IT infrastructure operations
69%
Outsources some of its IT applications and services
42%
79%
Uses a managed services model for some or all IT operations
50%
63%
Uses an IT shared services model for some or all IT operations
66%
83%
74%

14. How does your state CIO organization plan to deliver or obtain IT services over the next three years?
2015
2016
Expand existing IT shared services model
62%
72%
Outsource business applications through a SaaS model
55%
66%
Expand existing managed services model
53%
61%
Downsize state-owned-and-operated data center(s)
49%
28%
Expand outsourcing
43%
45%
Introduce a managed services model
26%
17%
In-source some operations that currently are outsourced
19%
Introduce outsourcing as a new service model
15%

15. 7. Which business model will drive your investments in the next 5 years? (state members only)
On-Premise, Centralized/Enterprise Model
On-Premise, Distributed/Federated Model
Off-Premise, Centralized/Enterprise Model
Off-Premise, Distributed/Federated Model

16. Cloud Migration Strategies
Source: NASCIO 2016 State CIO Survey

17. Moving to Cloud
Source: NASCIO 2016 State CIO Survey

18. Data Management and Analytics
Source: NASCIO 2016 State CIO Survey

19. Source: NASCIO 2016 State CIO Survey

21. Agile and Incremental Software Delivery
How would you characterize the use of Agile or incremental software development approaches within your state?
2015
2016
Limited use, uncoordinated
34%
19%
Pilot/trial adoption on certain projects
32%
39%
Widespread use, but not subject to centralized oversight or guidelines
21%
Widespread use, subject to centralized oversight or guidelines 9%
15%
No use 2%
Do not know/does not apply 6%

22. Agile and Incremental Software Delivery

23. UNLEASH THE NEW: STATE GOVERNMENTS GET AGILE
Initial findings from Accenture and NASCIO
keep

24. The “State” of Agile STILL LEADING EDGE AGILE’S PIECE OF THE IT PIE
AGILE MATURITY
The “State” of Agile
STILL LEADING EDGE
AGILE’S PIECE OF THE IT PIE
AGILE IN THE MIX
RESPONDENTS USING AGILE
> 3 years
Frequently blend Agile with other implementation methodologies on an IT project
Use Agile on 1-20% of projects
< 3 years
Rarely or never blend Agile with other implementation methodologies
Not at all
keep
Copyright 2017 Accenture. All rights reserved.

25. Agile: Good for Everyone But More Challenging for Government
AGILE OPPORTUNITIES
Agile: Good for Everyone But More Challenging for Government
Agile does a better job of engaging the customer
Agile is just as easy to implement in government as in the private sector
Agile is effective for state government
keep
Copyright 2017 Accenture. All rights reserved.

26. Agile Adoption: What’s Standing in the Way
BARRIERS TO AGILE
Agile Adoption: What’s Standing in the Way
BARRIERS TO BUST:
ORGANIZATIONAL
Lack of training/ knowledge in how to use
Procurement is not set up for Agile projects
Culture does not support Agile
TECHNICAL
Legacy solutions
Integration with other systems
Not having DevOps
to support
keep
Copyright 2017 Accenture. All rights reserved.

27. Looking Forward in 2017… More public cloud; IT procurement reform
Data governance, data as enterprise asset, power of analytics
Digital government – a new experience for citizens with IAM
Risk management, enterprise IT portfolio
FirstNet contract award; growth in mobile services
Growing cross-jurisdictional services for local governments
Cross-agency applications, service integration
Emerging IT: IoT, UAS, BWCs, blockchain. What’s next?