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Business Transformation Enabled by Technology ITSMF – Dec/6/2012 Ken J Cochrane Partner KPMG 160 Elgin Street Suite 2000 Ottawa, Ontario K2P2P8 613-212-2815.

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Presentation on theme: "Business Transformation Enabled by Technology ITSMF – Dec/6/2012 Ken J Cochrane Partner KPMG 160 Elgin Street Suite 2000 Ottawa, Ontario K2P2P8 613-212-2815."— Presentation transcript:

1 Business Transformation Enabled by Technology ITSMF – Dec/6/2012 Ken J Cochrane Partner KPMG 160 Elgin Street Suite 2000 Ottawa, Ontario K2P2P

2 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 1 Overview Environmental Scan “the big picture” Environmental Scan “closer to home” How will our roles change e-Gov the “journey” the “enablers” Is Transformation an over-used term Helping your clients apply the enablers

3 Environmental Scan “The Big Picture”

4 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 3 Challenges facing governments globally ■Vast majority of OECD countries facing significant deficits ■Healthcare, pensions, demographics as foundational issues ■Global economic crisis reduces tax base (corporate profits, jobs) ■Balancing rising costs of essential public services with the growing demands of tax-burdened citizens? ■“Business as usual not sufficient” ■Governments are seizing this opportunity to transform the way they deliver public service...and shape public good

5 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 4 Fiscal Sustainability - Evolving research and thought leadership ■The Wolf is at the Door series on the impact of the global economic crisis on the public sector: PART 1-- The Wolf is at the Door: The Global Economic Crisis and the Public Sector PART 2-- Tough Choices Ahead: The Future of the Public Sector PART 3 -- Meeting the Deficit Challenge: Strategies for Fiscal Sustainability ■Mowat Centre for Policy Innovation (University of Toronto): Shifting Gears; Fiscal Sustainability & Transformation of Canada's Healthcare System

6 Environmental Scan “Closer to Home”

7 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 6 Government of Canada Responses Admin Services Review under PCO Launch of the Strategic Operating Review (all departments & agencies) Seeking 5-10% reduction of $88B operating costs Shared Services Canada is announced Focus on Deficit Reduction

8 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 7 Budget, assets, staff assigned to SSC Departmental staff cuts (initial actions from DRAP) Government back office systems, processes identified for potential consolidation:  HR, Finance, IM, Case Mgmt, Gs & Cs Transformation initiatives emerge (RCMP, DND…) New Cabinet Sub-Committee of PM’s “Planning & Priorities” on Gov Admin chaired by Tony Clement Government of Canada Responses Executing Deficit Reduction

9 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 8 Beyond 2012… More Departments approaching SOR/DRAP with broad programs of change More consolidation Sourcing of services outside Gov – where others are seen as able to do it (right source, right pace) Modernizing the workplace (paperless, mobile, BYOD) Deficit elimination continues to move out The 4 day work week - Sorry not yet  What’s Next…

10 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 9 Beyond 2012… Bring ideas and approaches from outside Gov, Canada Government of Canada enterprise architecture (applications architecture) Its not about cost-cutting (because cost always comes back) It is about making fundamental, sustainable changes What is needed…

11 Is transformation an over-used term

12 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 11 Transformation - 4 degrees from “lite” to “heavy” Modernize Out with the old, in with the new Re-Invent It’s a brand new game Change It’s been done before, but not here Re-Think We need to transform, somewhat Where doyou thinkwe are?

13 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 12 Transformation – it’s probably all 4 – situation dependant Modernize Out with the old, in with the new Re-Invent It’s a brand new game Change It’s been done before, but not here Re-Think We need to transform, somewhat All 4 quadrantscan lead topositive change

14 e-Gov “ the journey” “the enablers”

15 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 14 eGov Journey – we are still on this journey Online Presence Online Transactions Open Data Shared Services Cloud Computing Engaged Citizens Modernize Service Focus Transparency Cut the Deficit & Focus on Core Social, Location, Mobile SoLoMo Active Participation

16 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 15 Why is eGovernment still relevant? Efficiency Doing things right Citizen Engagement Open dialogue Effectiveness Doing the right things Transparency Open Government At it’sroot ischange Process reviews Consolidation Focus on core Self-service Policy Consultation Service Development Open Data

17 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 16 eGov & Digital Economy - enabled by transformational technologies Who The Public Businesses Governments Employees How Interact Deliver or Consume Services Discover Innovate What Enabled by: Cloud – Crowd – Social – Apps – Mobile – Services Why Businesses Learning Pleasure Digital Content Digital Devices Connections Providers Users Anywhere & Anytime

18 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 17 The “enablers” are interrelated

19 eGov Enablers Helping your clients apply the enablers for transforming their business

20 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 19 Crowdsourcing – is linked to “eGov citizen engagement “ Access distributed group Internet-enabled Solicit ideas or feedback Perform work tasks Group validation

21 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 20 What can you achieve… Global reach Rapid input Collective intelligence Talent pool Innovation Customer trust and loyalty

22 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 21 Who will engage with you… Customers Citizens Suppliers Subject Experts Employees

23 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 22 Crowd-Funding Crowdfunding can help you get the money you need. US Jobs act makes it law – regulations coming Crowd-Design Crowdsourcing is an excellent way to get design help without hiring an expensive professional. Crowd-Testing Ask the crowd to give feedback on products, services, advertising. Crowd-Work Crowdsourcing some work is a lot less expensive than outsourcing it or hiring additional employees. Harnessing the Power of the crowd

24 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 23 How we can benefit from the Crowd An extended group of subject experts Getting regular direct customer input & feedback Knowing customer or citizen priorities Gain a reputation for listening

25 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 24 The Crowd Continuum Idea Generation, Evolution & Feedback People Sensors Work Shifting Identify the potholes Identify the potholes Traffic & Road Conditions Traffic & Road Conditions Product Advice & Ranking Product Advice & Ranking Policy Consult & Feedback Policy Consult & Feedback Product Testing Product Testing Searching Prior Art Searching Prior Art Enhancing ProductivityEnabling Participation S upporting Community Better Neighborhoods Trust Loyalty Better Results

26 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 25 The Cloud – is linked to “eGov effectiveness/efficiency” Source: KPMG/Forbes “Exploring the Cloud”

27 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 26 SSC

28 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 27 Dropbox Evernote Gmail Cloud – Many Services are Available Now

29 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 28 KPMG’s global survey of private & public sector leaders KPMG’s Exploring the Cloud A Global Study of Governments’ Adoption of Cloud ■ Underlines the various barriers to the adoption of cloud by the public sector. ■ The report provides insights into the future of cloud in government, and reveals the following: Government adoption of cloud is happening slowly, but is expected to accelerate The public sector has modest expectations of Cloud Security remains the biggest concern

30 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 29 Moving to the Cloud Business Requirements Cloud Readiness Assessment Delivering Cloud Solutions CSP 4 CSP 3 CSP 2 CSP 1 Technology Requirements Technology Process People Applications and Infrastructure Cloud Sourcing 123 Business Strategy for Cloud

31 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 30 Open Data is linked to “eGov Transparency”

32 How will our roles change

33 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 32 Look at change/transformation within a framework The KPMG’ VDF defines key elements within a business transformation.

34 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 33 Technology-enabled Transformation – Core Elements: People & Change Management Strategic Alignment Systemic Approach Employee Involvement Sustained Benefits Communi- cations Strategies

35 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 34 Application Development Application Maintenance Infrastructure & Operations

36 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 35 Today --- Tomorrow

37 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 36

38 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 37 Powered by Strategic Thinking & Technologies Web 2.0, Cloud Computing, Cyber Security, Identity Management Powered by Strategic Thinking & Technologies Web 2.0, Cloud Computing, Cyber Security, Identity Management The “Smarter Enterprise” With Customers & Partners With Employees Between Internal Functions Sharing Open Data Enable Development by others Work Shifting Opening the Dialogue Opening the Dialogue Modern Efficient Back-Office Modern Efficient Back-Office Modernizing the Workplace Modernizing the Workplace Customer Centered Services Customer Centered Services Sustainability & Transparency Sustainability & Transparency Exposing The Data Exposing The Data

39 © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 38 Presented by: Ken J Cochrane Partner KPMG 160 Elgin Street Suite 2000 Ottawa, Ontario K2P2P8 Tel

40 The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.


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