1. Smarter Government: IBM Value Proposition IBM Government Industry 17 March 2010

2. “Effective public governance helps to strengthen democracy and human rights, promote economic prosperity and social cohesion, reduce poverty, enhance environmental protection and the sustainable use of natural resources, and deepen confidence in government and public administration.” O rganization for Economic Cooperation & Development Governments must plan and manage local issues and challenges with full consideration of global trends. The world is connected: economically, socially and technically.

3. For governments, this means leading in the face of global challenges brought on by key drivers. CHANGING DEMOGRAPHICS Median ages are rising in the developed countries of Italy, Germany and Japan, but dropping in developing ones such as India. RISING ENVIRONMENTAL CONCERNS Societies and governments are becoming more attuned to what the earth can provide and what it can tolerate. GROWING THREATS TO SOCIAL STABILITY AND ORDER From terrorism to armed conflict to pandemics to natural disasters, the character of threats is changing. ACCELERATING GLOBALIZATION Countries and societies are becoming more economically interdependent across social, political and cultural boundaries, as illustrated by current economic conditions. EVOLVING SOCIETAL RELATIONSHIPS Today, governments are expected to deliver results and value through secure, private services that are available anywhere at any time. EXPANDING IMPACT OF TECHNOLOGY The adoption of the Internet is remaking the landscapes of business, healthcare and government. Source: “Government 2020 and the perpetual collaboration mandate” IBM Institute for Business Value Today’s imperative: Managing within the current global financial and economic crisis in a way that begins to solve the above challenges and lay a foundation to build a better future.

4. Collaboration within governments and across the community is essential for policy development, planning and management. 4 GOVERNMENT Energy Labor State Agriculture Commerce Defense Housing Justice Education Healthcare Treasury Transportation GOVERNMENT 20 TH CENTURY GOVERNMENT 21 ST CENTURY GOVERNMENT Non-government Organizations Universities Private SectorCommunities Other Countries and Governments Government Innovation Journey Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Online Government Interactive Government Extended Government Integrated Government Collaborative Government

5. To ensure the economic health, welfare and security of their citizens, smart governments will work to… STRENGTHEN NATIONAL SECURITY AND PUBLIC SAFETY Enabling defense and law enforcement organizations to achieve situational awareness, increased speed of command and combat superiority. MANAGE RESOURCES EFFECTIVELY Leveraging business intelligence and planning to improve insight and elevate performance with visibility and control. IMPROVE CITIZEN AND BUSINESS SERVICES Connecting people to programs based on individual needs—achieving sustainable outcomes while reducing operational costs and maximizing taxpayer value. ENSURE A SUSTAINABLE ENVIRONMENT Deploying environmentally responsible operations, from energy efficiency and conservation to transportation management and the pursuit of renewable resources. GOVERNMENT

6. The concepts of building a Smarter Planet, and Smarter Government, are enabled by a business infrastructure that is instrumented, interconnected, and intelligent.  Anywhere anytime access for citizens  Dynamic information support to improve effectiveness of mobile government employees  Critical cross-agency information sharing for key decisions  Collaboration across governments and with extended community Interconnected Instrumented  Sensors that enable management of energy use  Management of critical equipment used in transportation, water distribution and waste disposal to prevent outages & accidents  Digital video surveillance to protect public buildings and the transportation infrastructure and to protect citizens in public areas  Real time situational awareness for military effectiveness Intelligent  Fusion and real-time analysis of information for public safety  Assessment of trends for city planning and policy development  Evaluating outcomes of social services to improve the economic welfare of citizens and the community  Fraud detection to ensure government funds are properly used

7. Fact-Based Planning Transparency & Accountability Commercial software can help integrate information and analyze data to improve planning and management of outcomes Global Economic Crisis Continuous Budget Pressures Decision-Quality Information Demonstrate Good Government Tying Budgets to Outcomes Mission Performance Operational Performance Financial Performance Collaboration/Information Sharing Budgeting & Finance Risk Mgt Operations Readiness Programs Services Supply Chain Workforce/ HR IT High Performing Governmen t

8. Use of new tools and capabilities enable “Smarter Governments” to make optimized and near real time decisions. Lack of Insight Inability to Predict Inefficient Access Variety Volume Velocity Sense and respond Instinct and intuition Automated Skilled analytics experts Back office Predict and act Real-time, fact-driven Optimized Everyone Point of impact

9. Key Phases for Analytics in Governments Descriptive Predictive Proscriptive Report On & Analyze Outcomes  Deliver information via a scorecard, dashboards that shows operational and financial status, trends, relationships, and interdependencies.  Reporting and analysis for deeper drill down into trends and detailed analysis.  Provide dynamic and proactive predictive capability to better plan future activities around crime prevention, social service requirements, economic development, tax revenue forecasting.  Planning capabilities help take information and, by re-aligning resources and budgets and execute what-if scenarios, help get programs and activities back on track. Monitor & Measure Outcomes Plan for Desired Outcomes Predict & Forecast Trends & Needs

10. IBM Confidential10 Smarter Healthcare University of Ontario Institute of Technology Analytics on physiological data allows detection of potentially life- threatening conditions in premature infants up to 24 hrs earlier than current medical practices Smarter Government Large Government Agency Analyzing 100TBs of active data & 20 petabyte archive; Millions of Objects handled per second; Over 20,000 queries handled daily Smarter Energy Grid DONG Energy Remote monitoring and control devices collect current state information about the grid, lessening outage times by a potential 25 - 50% & up to 90% capital savings Smarter Public Safety New York Police Department Integrated crime systems & advanced analytics provide insights to redeploy resources against crime patterns helping prevent crimes and rapidly apprehend criminals Success Stories

11.  Smarter classroom  Smart administration  Innovation in research  Road user charging  Fare management  Transport info mgmt  Infrastructure mgmt  Resource planning Education Transportation Water Management  Trade clearing  Border Management  Passenger Screening Customs, Immigration  Network Centric Operations  Logistics Defense  Integrated case mgmt  Compliance mgmt  Fraud detection Social Services IBM has a comprehensive portfolio of offerings reaching many of the diverse business areas of government. Government Enterprise Optimization Government Business Areas Strategy and PlanningGovernment Performance  Business Analytics  Assessments  Performance dashboards  Collaboration tools CYBER SECURITY STRATEGY Public Safety  Crime information warehouse  Emergency response  Digital surveillance Government Accountability  Revenue Management  Business Architecture  Enterprise applications  Shared services

12. IBM’s collaborative leadership centers develop insight and share best practices and new thinking around the challenges facing governments. Institute for Electronic Government The Enterprise of the Future Global CEO Survey Global CIO Survey Global CFO Survey IBM Research

13. A Century of Innovation in Government: IBM has worked with government for more than 100 years We have valued relationships with local, regional and national governments in more than 100 countries in every part of the globe Our goal is to help governments achieve their mission of improving the economic health, welfare and safety of society