copyright © 2015, oracle and/or its affiliates. all rights reserved. | concurrent session #8 brandy...

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

concurrent session #8

Brandy Manek – State of OklahomaThomas Shack – Commonwealth of MassachusettsBob Sabo – Oracle Public Sector

August 24, 2015

Trends in Information Technology and E-government.

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Program Agenda

Modernization and eGovernment – an overview

State of Oklahoma Examples

Commonwealth of Massachusetts Examples

Questions

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Program Agenda




Questions

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Safe Harbor StatementThe 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


“The future ain't what it used to be”

“It’s tough to make predictions, especially about the future”

Noted philosopher and baseball great Yogi Berra

In the world of CorporateSpeak we would use the terms “Paradigm Shift” or Inflection Point” Neither one of which are as funny or even insightful as Yogi’s.


Change

Do You Ever Feel

This Way?

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Changing NASCIO Priorities

Oracle Confidential – Internal/Restricted/Highly Restricted 8

Priority Technologies, Applications & Tools 2010 2011 2012 2013 2014 2015

Virtualization (storage, computing, data center etc.)

1 1 1 3 5 7

Networking, voice and data communications 2 3 5 8 10 8/10

Document/Content/Records/E-mail management 3 6 9 10

Cloud computing, software as a service 4 2 3 1 1 1

Security enhancement tools 5 7 8 2 6

Enterprise Resource Planning (ERP) / Legacy application modernization-renovation

6 9/4* 6/2 6/4 4/6 2/9****

Geospatial analysis and GIS 7 ** ** ** **

Business Intelligence (BI) and Business Analytics 8 8 8 9 7 4

Identity and access management 9 5 7 5 9

Social Media and Networking 10 10 ** ** **

Public Safety Radio Network/Disaster Recovery (2014)

10 (PS) ** 8 (DR) 5***

Mobile Workforce Technologies 4 2 3 3

*Topic was split in 2011 - ** Dropped from list *** DR only **** ERP is 9, Modernization is 2

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NASCIO – Making Sense of the Priority Applications and Technologies

Oracle Confidential – Internal/Restricted/Highly Restricted

Top four are business process/business applications related1. Cloud Computing/Software as a service2. Legacy application modernization-renovation3. Mobile Workforce Technologies4. Business Intelligence (BI) and Business Analytics

Remaining six are technology/infrastructure relatedSecurity, Disaster Recovery, Virtualization, Networking etc.

Major Shift in Emphasis – Changing role of Technology and CIO role!


What Does This Mean for State Finance Professionals?


Key technologies and trends that impact you and High Performance Government

• Modernization – Improve efficiency, effectiveness and lowers costs

• Mobile – Work anywhere on any device. Better employee and citizen service

• Cloud – Reduce deployment time, stay current, impact staffing issues

• Business Intelligence/Analytics – Use information to drive change


What is Modernization?

Replace Old Systems

Upgrade/ Modernize

Alternate Deployment/

Support Methods

Supplement Existing

Applications

Adopt Completely New Technologies



ModernizationAction Description Example

Replace Old System Scrap Legacy Systems with modern versions

Wisconsin – Implementing new Statewide ERP

Upgrade/Modernize Adopt latest versions of Finance systems

New York, Oklahoma, Massachusetts, North Dakota, Pennsylvania Treasury

Alternate Deployment Methods Outsource or deploy Cloud applications

Ohio, Michigan, Georgia

Supplement Existing Applications Add new or enhanced functionality to existing applications

Georgia, Montana

Adopt Completely new technologies Adopt Cloud, Social, Mobile capable business processes

Oklahoma, Massachusetts


What about Shadow Systems?

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Shallow vs. ShadowState and local technology leaders walk a tightrope between managing risk and

encouraging innovations. ….. Here are some ways to separate good “shallow IT” from the bad “Shadow IT.”*

SHALLOW SHADOW

Central IT understands what you are doing Central IT does not know what you are doing

Offers new tools and innovative approaches Duplicates existing enterprise capabilities

Involves low risk data Involves sensitive or highly regulated data

Involves non critical systems Involves core systems and functions

*Government Technology Magazine – June 2015 – Innovation vs. Control by David Raths


Better Citizen ServiceChallenges:• Improve taxpayer self-service capabilities

to reduce the contact center’s workload

• Enable revenue agencies to respond to taxpayer questions in an accurate, consistent, and timely manner, despite an ever-changing tax code

• Improve customer-service performance and response quality to address ever-increasing inbound e-mail and call volumes

Solution:• Provided taxpayers with web access to

IDOR’s knowledge base through an intuitive interface that makes it easy for site visitors to identify specific tax-related topics

• Decreased customer hold times via improved self-service and decreased call-processing-cycle times

• Produced reports flagging aspects of the tax code that are giving the general public trouble, enabling IDOR to take corrective action

http://www.oracle.com/us/corporate/customers/customersearch/illinois-dept-1-service-cloud-ss-2355093.html


Better and More Actionable Information STARS (State Analytical Reporting System)

Challenges:• Connecticut continues to face significant

budget challenges and must find ways to more effectively manage resources.

• Need to provide the State with the ability to analyze big data and make better and more informed decisions

• Position the State with a strategic analytical and reporting tool for the long term

Solution:• Integrate CORE (PeopleSoft ERP) and non-

CORE data into BI warehouse for more in-depth analysis and reporting

• More reliable data with best performance available

• STARS will become the statewide data repository for human resources and financial data

• Provide managers and executives with a Mobile Application for analytic reporting

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And Now, a Little About the Cloud

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Significant challenges with the traditional ERP delivery model are forcing a paradigm shift

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EXPENSIVE UPGRADES

COSTLY CUSTOMIZATIONS

LIMITED INNOVATION

INEFFICIENT PROCESSES

REDUCED IT BUDGETS

DIFFICULTY ATTRACTING QUALIFIED IT PERSONNEL

DIFFICULT TO USE

EXPENSIVE TO MAINTAIN

LIMITED ACCESS/VISBILITY TO KEY OPERATIONAL & FINANCIAL DATA


As a Result, Orgs are Looking Towards Cloud Delivery Models

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Traditional LeadingEdge

Private Cloud Public CloudOn-Premise

vs. vs.


Copyright © 2012, Oracle and/or its affiliates. All rights reserved.20

FINANCE EXECUTIVES ARE READY

KEY FOR SUCCESS IN NEXT 12-18 MONTHS

76%64%REDUCE OPERATIONAL COSTS BY 20%

81%IMPROVE EMPLOYEE PRODUCITIVY

Complete Implementation

of Cloud Technology

Source: CFO Research, The Business Value of Cloud Computing, A Survey of Senior Finance Executives, June 2012.



Private vs. Public (i.e. SaaS) Cloud

Private Cloud

• Traditional ERP apps hosted by 3rd party

• 3rd party provides infrastructure & possibly application support services

• Providers can provide SaaS-like pricing – “synthetic SaaS”

• Customize applications

• Funded through CapEx and OpEx

• Model only reduces some of the pain of supporting the traditional model

Public Cloud (SaaS)

• Next-generation applications built from the group up for the Cloud

• Single code lines

• Usually multi-tenancy model

• Configuration vs. customizations

• Rapid release cycles – rapid innovation

• SaaS vendors apply updates

• OpEx funded



Value of SaaS ERP Applications is Changing the Conversation


Web Customer Service Cross-Channel Contact

Center Knowledge Mgmt Policy Mgmt Field Service Customer Mast Data

Mgmt Social Customer

Service

Quicker access to

innovation

Easier to Use Lower TCO

Improved Service Levels


SaaS Redefines the ERP Cost Model

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• No databases, database mgmt software or DBAs

• No hardware or associated infrastructure support labor

• No expensive major upgrades ever again

Visible

Underlying

On-Premise SaaS

Savings

Apps License Support or

Subscription Fees

Apps Support Labor (Business Analysts,

Developers)

DB License Support Fees

HW License Support Fees, DC Staff & DC Land,

Plumbing & Pipe

DB Support Labor (DBAs)

Apps

Database

Hardware



Different Multi-Tenancy Approaches

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Legacy Multi-Tenancy(Co-mingled)

Isolated Tenancy



ERP

Comprehensive Set of Cloud Solutions on the Market


Applications as a Service

Platform as a Service

Infrastructure as a Service

Planning & Budgeting

HCM

Talent Management

Social Relationship Management

Policy Automation

Customer Service


Not Just SaaS - Complete Portfolio of Cloud Platform Services

DocumentsCloud

Process Cloud

SitesCloud

Social Cloud

CONTENT ANDCOLLABORATION

Business Intelligence

Cloud

Big Data Discovery

Cloud

Big Data Preparation

Cloud

Internet of Things

Cloud

BUSINESSANALYTICS

Mobile Cloud

MOBILE

NoSQLDatabase

Cloud

Big DataSQL Cloud

ExadataCloud

Big Data Cloud

Database BackupCloud

DatabaseCloud

Big DataPreparation

Cloud

DATAMANAGEMENT

Node Cloud

Developer Cloud

MobileCloud

Java Cloud

ApplicationBuilder Cloud

APPLICATIONDEVELOPMENT

Integration Cloud

SOACloud

GoldenGate Cloud

Internet of Things

CloudINTEGRATION

ApplicationPerformance

Monitoring Cloud

ITAnalytics

Cloud

LogAnalytics

Cloud

ENTERPRISEMANAGEMENT


Program Agenda




Questions

1

2

3

4

Technology Supporting Budget InnovationState of Oklahoma

Brandy ManekDirector of Budget, Policy, Legislative Affairs

and Gaming Compliance

Where we were

• Three non-integrated systems for the budget cycle• Incremental budgeting with a zero-based budgeting mandate

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Where we are going

• One single integrated system for the entire budget cycle• Performance Informed Budgeting in both substance and form

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How we are getting there

• Implemented Hyperion PSPB and OSSM• Specific functionalities of Hyperion that support our innovation• Overview of implementation process and current status of

system

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The Cloud

• Hyperion• Other Systems

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Commonwealth of Massachusetts

Tom Shack, Esq.Comptroller of the Commonwealth

[email protected]

A Measured Approach to Innovation• Recommended Reading:

• Citizenville: Gavin Newsome (Lt. Gov. Calif.)

Key points:

A plea for more tech-enabled government and examples of how some governments have begun using technology to better effect;

If leaders don’t reshape government for the better, business and taxpayers will.

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“Citizenville” continued• Government is stuck in the last century while everything else has

changed; government appears increasingly irrelevant and out of touch;

• If we don’t innovate – citizens will take matters into their own hands to dissolve political gridlock and produce tangible, real world changes;

• “Gamification” appealing to tech savvy taxpayers’ competitive side; • Twenty-first-century problems are too big and too expensive for the

government simply to buy solutions; Internal innovation and technology combined is the way out;

• Modern digital governments house the needs, concerns,

information, and collaboration of an enlightened digital citizenry; • A vision for better government; that achieves the goal of

“commonwealth.”36

Why don’t governments keep pace with private sector advancements?

• Resources – scarce and limited with competing needs;• Bureaucracy – Lack of creativity and ownership (“it’s not my job”

– RMV example);• Broad Priorities -- social, infrastructure, political;• Risk Aversion – Not for profit (profitability drives efficiency in

private sector);• Security – PII, sensitive and protected information;• Transparency – public entities must be transparent to taxpayers.

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Massachusetts’ Mandates

• Be more transparent; efficient, and responsive; break down bureaucratic roadblocks for departmental innovation (let departments conduct their business – with proper oversight and QA).

• Comptroller has dual constituencies:– Agency heads and CFOs of 150+ agencies and departments overseeing

$60B annually in expenditures – equivalent to a Fortune 50 company.– Public – protecting assets and integrity in Commonwealth fiscal and

administrative operations.

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Last 5 Years

• 2010 – U.S. PIRG Grade of “F” for transparency– In December 2011 the Commonwealth of

Massachusetts released “Open Checkbook” website.

• A proactive approach to civic engagement. • A proactive rather than reactive approach to

public records requests – basic financial information subject to the public records law will be provided to the general public without a formal request.

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2012-2015 U.S. PIRG Grade = “A-”

• The Open Checkbook included at launch:– Search for spending by Vendor, across all

Departments, and see details for those vendors, down to the date the payment was made

– Review Department spending by Vendor– Review state spending by Spending

Category– Search for State Employee Payroll and

Salary information– Search for State and Teacher Retiree

Pension information• Enhancements since go live:

– Tax credits– Summary transactions– Quasi-Public Authorities

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The Next Five Years• Examining dozens of systemic opportunities for shared services,

cloud-based, and SaaS solutions;– Greatest Concerns: Data breach and/or fraudulent transactions due

to security and loss of internal controls– Recent and Ongoing Examples: IRS, Office of Personnel Management

• Solution – Agency collaboration combined with Independent Verification and Validation (IV&V) must be utilized in system design and implementation – also compensates for competing obligations and political pressure – buy in needs to come from all sectors.– Example: Procurement and Payment end-to-end solution.

Procurement risk is much lower than payments (like opening a drive-up window at a bank’s safe).

41

Takeaways

Don’t reinvent the wheel

Breakdown Silos

Work with other states -- examine efficiencies of scale.

42

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