Government transformation: how will information technology enable it? March 9 th , 2006

1. Massimiliano Claps Program Manager Public Sector, IDC European Vertical Markets Government transformation: how will information technology enable it?March 9th, 2006

2. Agenda • Transforming government processes • Deploying modern IT solutions • Enhancing IT infrastructure governance

3. Western European Governments Are Transforming Processes • Centering service delivery around citizens • Complying with transparency, accountability, privacy…. regulation • Managing scarce resources

4. Improvement of Services, Compliance and IT Responsiveness Top the Agenda Western Europe, Government Sector, Top 3 Initiatives Driving the Current Business / Policy Agenda % of respondents Note: government respondents = 20; all other sectors = 180 Source: IDC LOB Survey Q3, 2005

5. Satisfaction with Public Administration Is Lagging Italian Citizens’ Opinion of Public Administration Source: Censis, 2005

6. Integrated multi-channel platforms Case and record management Government back office operations EU Central government departments Regions / States Provinces, municipalities, districts, etc. Integrated Criminal Justice Police Forensic Public Prosecution Magistrate Courts Probation office Prison Service Social Services Service Delivery Will Be Joined-Up Service delivery processes will shift from the current model based on paper form filling, in-person office visits, duplication of data entry, and a bureaucracy-centered workflows, to a framework based on outcomes, integrated digital records and citizen-centered workflow. • Combination of multiple access channels • Integration of front-end with back-end • Vertical integration across transnational, central, regional and local governments • Horizontal integration across government departments, with other countries and with private sector intermediaries • Integration of horizontal services (e.g. payments and identity management)

7. Local Councils Join Up Revenues & Benefits Services Great Yarmouth, South Norfolk and Waveney councils have agreed a partnership that will merge their revenues and benefits services with the aim of making them easier for locals to use. • Residents in the three areas will be able to visit council buildings closer to where they actually live to access certain services. • The three authorities will adopt the same software solutions for delivering services. • The three authorities working together we will be able to pool staff and expertise to provide a much better service and reduce costs. Source: Waveney District Council, 2005

8. Transparency and Privacy Regulation Are Strict • After being narrowly approved by the Bundestag in early June, Germany's Freedom of Information (FOI) law was voted on July 8, 2005, by the Bundesrat. The new FOI regime is effective from 2006. • The new law provides the public with a general right to access federal government information. However, this general right is limited by a number of broadly defined exemptions, covering for instance public safety, the "fiscal interests of the Federal Government”, and intellectual property. • Within the European Union, only Cyprus, Malta, and Luxemburg currently lack a Freedom of Information legislation • The Swedish government started an official inquiry into the legal possibility of increasing electronic data sharing and exchange between government authorities. • The inquiry will investigate if and how the laws governing electronic information exchange have to be amended, and the report – to be published before the end of October 2006 – is expected to answer the following specific questions: • Should the municipalities' social services get electronic access to data from the National Board of Student Aid and the National Labour Market Administration to check if citizens have given correct information about their income? • Should the Social Insurance Agency get electronic access to information from the Migration Board when registering a person moving to Sweden from outside the Nordic countries, and when deciding about financial aid?

9. Freedom of Information Act Requires Process and IT Changes Source: UK Information Commissioner

10. 2002 2003 Budget Shortages Are Always Around the Corner and Staff Will Retire Ireland, Government Surplus / Deficit as a % of GDP Sweden, Breakdown of Government Sector Employees by Age Source: Statistics Sweden, 2005 Source: Eurostat, 2006

11. Traditional organization of back office administration Shared Services Center of Excellence HM Treasury Ministry of Defense Dept. of Work and Pensions HM Treasury Ministry of Defense Dept. of Work and Pensions Fiscal policies Army Family Fiscal policies Army Family Accounting Budget Navy Disabled Budget Navy Disabled Procurement Debt mgmt Air Force Elderly Debt mgmt Air Force Elderly IT Accounting Accounting Accounting Procurement Procurement Procurement IT IT IT Shared Services Represent a Potential Solution to Money and People Shortages

12. € million Consip Manages a Procurement Hub for the Italian Public Administration Consip, Volume of Transactions and Savings Source: CNIPA, 2005

13. Western European Governments Are Implementing Modern IT Solutions • Deploying electronic service delivery solutions to join up delivery platforms • Implementing case and record management to streamline workflow • Developing ERP and performance management solutions to optimize back office

14. Government Executives Think Information Technology is Key Western Europe, Government Sector, Business / Policy Executives’ Opinion on the Impact of IT on Organizations’ Performance % of respondents Note: government respondents = 20; all other sectors = 180 Source: IDC LOB Survey Q3, 2005

15. Electronic Service Delivery Is High on the Agenda of Most Countries Western Europe, Government Sector, Level of Priority of ESD Solutions by Segment • Joining up services across channels and organizations • Providing full transactional capabilities • Starting to renovate old platforms Note: respondents = 186 for CRM and 114 for all other solutions Source: IDC Vertical Market Survey 2005

16. Reachservices Provides Irish Citizens a Single Point of Access to Services • The Reachservices portal is the user-facing interface of the Public Services Broker (PSB), Ireland’s central e-government infrastructure. • PSB includes a single identification and authentication process and a single electronic payment facility. • PSB acts as a helper to the customer to bundle services around predefined life or business events. • Customers are able to store their frequently used personal data and give permission for release to the different service delivery agencies. Source: Reach, 2006

17. Case and Record Management Solutions Will Be Key Western Europe, Government Sector, Level of Priority of Document and Case and Record Management Solutions by Segment • Joining up front-end with back office operations • Digitizing and integrating government records • Complying with transparency regulation Note: respondents = 186 for content and document management and 114 for case and record management Source: IDC Vertical Market Survey 2005

18. Police Service of Northern Ireland Public Prosecution Service Managed Services Management Information MIS Tools MIS Store Criminal Justice Directorate of the Northern Ireland Office Northern Ireland Court Service Common Data Store Operational Data Store Document Store Forensic Science Northern Ireland Probation Board for Northern Ireland Integration Intelligent Data Exchange Causeway Gateway Northern Ireland Prison Services Security and Privacy Northern Ireland Causeway Programme: Integrating Criminal Justice Processes • Improving precision of case processing • Reducing costs of information management • Providing end-users with more rapid response Source: Causeway Programme, 2005

19. Cost Accounting Comply with legislation that impose tighter controls on public administration spending Business Performance Management Improve long-term productivity to free up resources to be dedicated to citizen services Executives Will Be Keen on Government Specific Budgeting Applications Western Europe, Government Sector, Level of Priority of Back Office Solutions by Segment Financial Accounting Keep track of day-by-day business operations against annual budget appropriations Note: respondents = 186 for ERP and BPM; and 114 for budgeting Source: IDC Vertical Market Survey 2005

20. Helios Will Integrate Financial Accounting and Budgeting of French Local Agencies • Article 1 of the Ministry of Finance (MINEFI) decree of August 2005 states that: • The General Directorate for Government Accounting (DGCP) must implement an IT solution, named Hélios, for financial and budgeting management of local authorities and related local public bodies (ÉPL), including healthcare, social service and public housing agencies • The system must enable management of all expenses and revenues to improve quality and timeliness of back office processes • The Hélios applications must include functionalities for budgeting, accounting, revenue collection, payments, asset and debt management • The first part of the project, which is part of ADeLE, is expected to be completed by 2008 Source: MINEFI, 2005

21. Western European Governments Are Enhancing IT Infrastructure Governance • Migrating from legacy to open standard solutions to facilitate flexible integration and ensure long-term maintenance • Combining information security and operational continuity to ensure system / information integrity • Leveraging on the existing IT assets to maximize ROI • Monitoring new technologies to speed up innovation • Improving procurement, management and performance monitoring of IT

22. Integration and Ability to Adapt to Process Changes Are Required IT Improvements Western Europe, Government Sector, Top 3 Most Urgent IT Improvements % of respondents Note: government respondents = 20; all other sectors = 180 Source: IDC LOB Survey Q3, 2005

23. Interoperability, Flexibility and Consolidation Drive Infrastructure Plans Western Europe, Government Sector, Infrastructure Solutions Investment Plans % of respondents Note: respondents = 54 Source: IDC Vertical Market Survey 2005

24. Open Standards Will Be Key to Comply with National Regulations Data presentation and exchange (e.g. accessibility, multi-channel access) Data integration and middleware (e.g. metadata, application messaging) Security services (e.g. PKI, authentication / authorization) Interconnection services (e.g. file and message transfer protocols)

25. Interest for Identity Management Is High Western Europe, Government Sector, % of Respondents that Plan to Invest in Security Note: respondents = 161 Source: IDC Vertical Market Survey 2005

26. Security and System Management Will Converge • Emphasizing business continuity and operational efficiency • Moving from patch management to remediation to configuration management • Proactively approaching new threats that affect systems and security

27. Summary • Gaining deep understanding of service improvement, compliance and resource management pain points to enable transformation • Developing ESD, case management and ERP solutions that are fully aligned with government modernization requirements • Enhancing governance of IT infrastructure to support flexible development and usage of solutions

28. Go raibh maith agat Massimiliano Claps Program Manager Public Sector IDC European Vertical Markets mclaps@idc.com