C hange I s O pportunity : A New Paradigm for the State CIO

1. Change Is Opportunity:A New Paradigm for the State CIO Patrick Moore Hewlett Packard August 7, 2011

2. Agenda • Trends • Setting priorities • Rethinking our work • The services model as transformation

3. Global Trends Evolving Business Models 1 Technology Advancements 2 3 Changing Workforce

4. Technological Advancements New ways to serve & new virtual industries created 130M Enterprise users in Mobile Cloud3 Create 8x more data1 2005 2010 2015 2020 2011 2013 2012 2014 Mobile apps download > 21B2 2T devices connect to the internet4 Mankind created 150 exabytes of digital data1 • “The data deluge: Businesses, governments and society are only starting to tap its vast potential,” The Economist, Feb. 25, 2010. http://www.economist.com/node/15579717 • Dataquest Insight: Application Stores; The Revenue Opportunity Beyond the Hype, Stephanie Baghdassarian, Carolina Milanesi; 16 December 2009 • Juniper Research, http://www.juniperresearch.com/viewpressrelease.php?id=210&pr=181 • “The Difference Engine: Chattering Objects,” The Economist, Aug. 13, 2010. http://www.economist.com/node/21009505

5. Priorities Facing Global Governments Today Manage economic crisis & provide economic stimulus Meet challenges posed by demographic changes Meet citizen expectations of government Protect citizen information & critical national infrastructure Manage the cost of government Continue operations in degraded conditions Government Ensure delivery of long-term outcomes Ensure secure information sharing Attract and retain jobs in globalized economic environment Design and implementation of citizen-centric service delivery models

6. Threats magnify our challenge • HP examines and stops 1.7 billion spam messages monthly and detects and quarantines 40 million malware annually • HP collects, stores and processes 2.8 billion events daily • Within a recent 30 day period, HP defended against over17 million attacks originating from mainland China alone. That is 7 attacks per second. • Approximately16 million attacks originated from within the United States. • Attack vectors are diverse; targeting a wide range of technologies and services including security products and solutions. • By the time you finish this slide, thousands of attacks have occurred globally.

7. Security Is Top of Mind Ripped from the Headlines Computer Data on 103,000 Va. Adult Ed Students Misplaced Ohio State reports massive network security breach CA Department of Public Health reports security breach Security Breach Reported at Charleston (WV) Area Medical Center; Thousands of Patients Affected Massachusetts Data Breach Exposes 139,000 Records Saint Louis University staff, students notified of computer breach Florida Elections Servers Hacked Again - … stolen data, and released it to the public 58 Percent of Software Vulnerable to Security Breaches Similar to Google, Department of Defense Cyber Attacks

8. Setting priorities

9. Priorities differ in public & Private Sector Private Sector CIOs • Aligning IT and business goals • Controlling costs • Governance and portfolio management • Business process redesign • Leadership & staff development • Marketing IT’s business contribution • Rationalizing or centralizing the application portfolio • Protecting customer data privacy • Scaling IT globally • Regulatory compliance Public Sector CIOs • Consolidation and optimization • Budget and cost control • Shared services • Cloud computing • Healthcare IT • Security • Broadband and connectivity • Governance • Legacy modernization • Data & information management

10. State government challenges Findings from Grant Thornton’s “The 2010 state CIO Survey” Budgets mostly down; costs steady or rising • Two-thirds of CIOs expect lower IT budgets in 2011 through 2013. • Some are turning to staff reductions, IT consolidation & shared services to lower costs. IT governance • CIOs are responsible for statewide IT governance but do not have adequate authority Business models • Shared services and managed services IT procurement reform • CIOs give state IT procurement processes a grade of C and • Related laws, rules, processes and practices must be modernized and aligned with IT industry standards and best practices. “A search for lower costs will drive the agendas of many state CIOs for the next few years. With stronger authority and a diligent pursuit of higher value and greater efficiency across institutional boundaries, CIOs will enable IT to help set new standards of government performance. This “new normal” of performance is what citizens and society want and need from their state governments.”

11. Rethinking our work

12. Have I mentioned? • Legislatures do not consider IT a priority, yet • Voters have increasingly personalized interactions with politicians • Voters expect more from government, yet • Legislatures do not consider IT a priority • Funding cycles do not support rapidly changing consumer demands, or • Rapidly changing technologies The model must change

13. Case Study • Risk was the burning platform • The state did not have the capabilities or the resources to make the changes needed in a timely fashion • Sustainability was critical • Needed to break the existing model and replace it with a services framework

14. Lessons Learned • Lead with facts • Bring others onto your burning platform • Engage business leadership within your organization and across the enterprise • Create a view of the future • Communicate, communicate, communicate

15. The Model is changingyou sit in the middle TRANSFORMlegacy infrastructure and applications and processes MANAGE and secureacross legacy applications and cloud assets CONSUMEpublic services securely buildpublic, private and hybridcloud services

16. What you can do today • Who are the customers you serve? • How engaged are you with the business owners inside your organization? • Where do you sit inside the organization? • Are you reacting or leading? • Have you identified where you want to go?

17. Change is opportunity • Get a seat at the table • Raise your hand and your voice • Look to where the world is going, not to where we once were Our customers are looking at the world through a glass touch screen