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Overview Environmental Scan “the big picture” “closer to home”

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Presentation on theme: "Overview Environmental Scan “the big picture” “closer to home”"— Presentation transcript:

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

1 Overview Environmental Scan “the big picture” “closer to home”
How will our roles change the “journey” the “enablers” e-Gov Is Transformation an over-used term Helping your clients apply the enablers

2 Environmental Scan “The Big Picture”

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

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

5 Environmental Scan “Closer to Home”

6 Government of Canada Responses
Focus on Deficit Reduction 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

7 Government of Canada Responses
Executing Deficit Reduction 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

8 Beyond 2012… What’s Next… 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 

9 What is needed… 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

10 Is transformation an over-used term

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 do you think we are?

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 quadrants can lead to positive change

13 e-Gov “the journey” “the enablers”

14 eGov Journey – we are still on this journey
Transparency Service Focus Open Data Online Transactions Modernize Online Presence 2012 2000 2015 2005 2018 2010 Active Participation Social, Location, Mobile SoLoMo Engaged Citizens Cut the Deficit & Focus on Core Cloud Computing Shared Services

15 Why is eGovernment still relevant?
Efficiency Doing things right Citizen Engagement Open dialogue Process reviews Consolidation Policy Consultation Service Development Effectiveness Doing the right things Transparency Open Government Focus on core Self-service Open Data At it’s root is change

16 eGov & Digital Economy - enabled by transformational technologies
Who What How The Public Digital Content Connections Providers Users Interact Businesses Deliver or Consume Services Governments Discover Digital Devices Employees Why Businesses Learning Pleasure Innovate Enabled by: Cloud – Crowd – Social – Apps – Mobile – Services Anywhere & Anytime

17 The “enablers” are interrelated

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

19 Crowdsourcing – is linked to “eGov citizen engagement “
Access distributed group Internet-enabled Solicit ideas or feedback Perform work tasks Group validation

20 What can you achieve… Global reach Rapid input Collective intelligence Talent pool Innovation Customer trust and loyalty

21 Who will engage with you…
Customers Citizens Suppliers Subject Experts Employees

22 Harnessing the Power of the crowd
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.

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

24 The Crowd Continuum Supporting Community Idea Generation, Evolution &
Enabling Participation Enhancing Productivity Traffic & Road Conditions Policy Consult & Feedback Searching Prior Art Identify the potholes Product Advice & Ranking Product Testing Idea Generation, Evolution & Feedback People Sensors Work Shifting Better Neighborhoods Trust Loyalty Better Results

25 The Cloud – is linked to “eGov effectiveness/efficiency”
Source: KPMG/Forbes “Exploring the Cloud” 87% of executives believe “cloud environments have the capability to transform business and operating models…”

26 Transformation of IT Internet SSC Cloud Personal Computers EDI
decentralized Cloud Private Community Hybrid Public EDI Personal Computers Mainframe Cloud services in particular have the potential to accelerate the decentralization of IT Mainframe - Automation of manual tasks (billing) EDI - Enable data exchange between organizations Personal Computers - Beginning of the consumerization of IT Internet - Open and interconnected networks bring businesses closer together and drive new business models Cloud enablement - Offers transformational flexibility and scalability for businesses and consumers centralized Highly controlled Anytime, Anywhere, Anyhow

27 Cloud – Many Services are Available Now
Gmail Cloud services not always provided through the traditional IT function. Users are bypassing and procuring their own solutions to solve business problems; especially those that are using mobile devices, and tablets Evernote Dropbox

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

29 Business Strategy for Cloud
Moving to the Cloud Cloud Readiness Assessment Cloud Sourcing CSP1 Technology Process People CSP2 Business Strategy for Cloud CSP3 CSP4 Applications and Infrastructure 1 2 3 Business Requirements Technology Requirements Delivering Cloud Solutions

30 Open Data is linked to “eGov Transparency”

31 How will our roles change

32 Look at change/transformation within a framework
The KPMG’ VDF defines key elements within a business transformation.

33 Communi-cations Strategies
Technology-enabled Transformation – Core Elements: People & Change Management Strategic Alignment Communi-cations Strategies Systemic Approach Sustained Benefits Employee Involvement 33

34 IaaS Providers SaaS Providers Shift in Traditional IT Functions
IT Strategy & Planning Relationship Management IT Governance Architecture & Integration SaaS Providers Application Development Application Maintenance The core functions that comprise IT are being increasingly sourced outside traditional IT boundaries… IaaS Providers Infrastructure & Operations

35 Enterprise Architecture (Build, Deploy, Operate)
Focus on different capabilities – pyramid will reverse Today --- Tomorrow Service Strategy Enterprise Architecture Service Integration Service Provision (Build, Deploy, Operate) …which means a focus on different capabilities than was traditionally the case

36 Service and Business Integration
New areas of focus… Innovation Service and Business Integration Governance Understand business needs Source appropriately

37 The “Smarter Enterprise”
Modernizing the Workplace Customer Centered Services Modern Efficient Back-Office Sustainability & Transparency The ‘Smarter’ Enterprise Exposing The Data Opening the Dialogue With Customers & Partners Sharing Open Data Powered by Strategic Thinking & Technologies Web 2.0, Cloud Computing, Cyber Security, Identity Management Enable Development by others With Employees Between Internal Functions Work Shifting

38 Presented by: Ken J Cochrane Partner KPMG 160 Elgin Street Suite 2000
Ottawa, Ontario K2P2P8 Tel

39 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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