Digital Transformation: Opportunities for innovation

1. Digital Transformation: Opportunities for innovation Ramayya Krishnan Cooper Professor of Information Systems The Heinz School Carnegie Mellon University rk2x@cmu.edu

2. Agenda • Facilitating innovation through Government IT initiatives • The case of E-government • Citizen Portals • Access to the Net and IEEE 802.11 • Interoperable access to confidential data • Process innovation in implementation of interoperable PKI • M-government • Use to e-911 initiative to jumpstart innovation in commercial services

3. An organizing framework Public Policy Technology Strategy Process Competition

4. Spurring innovation through IT acquisition • Government has the potential to spark innovation through public private partnerships • E-government as context • Many potential ways of funding innovation • NSF Digital Govt Initiative, SBIR, DARPA

5. Defining E-Government • The use of electronic systems to perform business and service-related transactions • Improve internal government operations • Intra-governmental transactions • Government as Buyer • Government as Seller • Enhance the delivery of services to citizens Source: Temoshak, GSA

6. Digital transformation • The use of digital technologies – internet technologies, information and communication technologies – to drive fundamental performance improvement throughout the extended enterprise • What is the scope of digital transformation? • Customer, supplier, partners (resellers and affiliates) and employees • Digital transformation has policy and technological implications

7. Phases of E-government Source: cdt.org

8. G2C e-government potential • easily accessible, especially for elderly and disabled people • Transparency • Increased efficiency • time efficient • cost efficient

9. FirstGov.gov

10. Access anywhere anytime to all • The benefits of access derive only to those who have internet access and increasingly to those who have broadband access • Emergence of access over wired and wireless networks

11. What is the opportunity for innovation? • Providing low cost access? • Providing high speed access? • Providing mobile access?

12. Understanding access structure Switching Switching Node Node Trunks Content provider Terminals Switching Switching Node Node Access Lines Dial up to DSL, Cable Modem-based access Mobile access to the Net

13. Evolution of access networks • Telephone network • Dial up • DSL (digital subscriber line) • Cable network • Cable modem-based access • Wireless • Mobile wireless over cellular • Wireless Application Protocol • Bearer service and device independent

14. New information appliances

15. Internet Industry Structure 1. Customer (CUS) 2. Local Area Transport Provider (LAT) 3. Internet Access Provider (IAP) 4. Wide Area Transport Provider (WAT) 5. Internet Service Provider (ISP)

16. ISP Backbone Provider ISP Backbone Provider Visual Model of Industry Structure NAP NAP Private Peering IAP IAP IAP IAP LAT LAT LAT

17. Internet Service Economics • Users typically pay flat rate to IAP based on access port speed • IAPs are not restricted to published tariffs; prices are often negotiable • IAPs pay an ISP for transit to other ISPs and their customers • ISPs peer with each other at public or private Network Access Points (NAPs) and typically do not pay settlements to each other

19. France  Germany  U.K. U.S. All Households 24.8m 37.7m 27.7m 105.0m Internet Households 4.5m 10.3m 8.8m 63.0m Broadband HH 0.5m 1.0m 0.2m 13.8m Internet Penetration 18% 27% 34% 60% Broadband Penetration 2% 3% 1% 13% Broadband Penetration of Internet HH 8% 9% 2% 22% Broadband Penetration (2001)

20. Universal access to the Net • In the US, the work of Greenstein demonstrates significant geographic patterns to Internet access related to the presence of NAP’s on the backbone network • Most urban areas have competitive provisioned access while rural areas have less than ideal conditions • Policies for universal access have to take geography into consideration

21. Broadband adoption • Much of the debate is focused on DSL vs. Cable • User choice of ISP • Intellectual property protection • Equally important is the IEEE 802.11 vs. 2.5/3G technologies

22. Wireless LAN • Idea: just a LAN, but without wires • Not as easy since signals are of limited range • Uses unlicensed frequencies, low power • 2.4 GHz • IEEE 802.11 (wireless ethernet) • WaveLAN 2 Mbps moving to 11 Mbps • 5.2 GHz • OFDM (orthogonal FDMA) modem technology (30 Mbps) IEEE 802.11 • HiperLAN from Europe and HiSWAN from Japan • Upto 54Mbps • Distance depends on construction (100-200ft per access point)

23. EXISTING UPGRADED GSM SGSN = SERVING GPRS SUPPORT NODE GGSN = GATEWAY GPRS SUPPORT NODE PLMN = PUBLIC LAND MOBILE NETWORK GPRS SOURCE: UWC

24. Range vs. Data Rates

25. Substitute or Complement? • IEEE 802.11 • Much higher data rates • 11Mbps to 144Kbps for 3G • Cost per base station is $500 compared to $50,000 per base station for 3G • But distance limited • 100m vs. 2km • Higher consumption of power by WLAN chipsets makes them not viable with cell phone power supplies

26. WLAN/GSM Integration

28. “Data” strategy for cellular service providers? • Invest in their own WLAN networks? • Unlikely given considerable investment in 3G networks • Partner with WISP’s (wireless ISP) that sell direct to the consumer such as Boingo and Mobilstar • Partner with WLAN infrastructure provider that can provide roaming services • SIM card enabled • Should the government increase the size of the ISM spectrum?

29. User-centric portals

30. Access from multiple information sources Depending on the app, read or update semantics will be required

31. Problem: Scattered Clinical Data Past Visit Info: - Paper chart(s) - Hand written notes - History/Physical/FHx - Problem lists - etc. Radiology System Pharmacy System Lab System Current Visit Info: - Symptoms - History - Findings Transcription System Billing System - Stay / Visit / Cost - Dx / Rx

32. Mindscape (an electronic medical record system)

33. Access to multiple back-end services Source: Allaire

34. The Census Bureau

35. Issues with sensitive information • The problem of inferential disclosure • Data is collected under guarantees of confidentiality • Data is released under the policy of maximizing access while protecting confidentiality • General problem of relevance to all statistical agencies in government

36. Privacy and security challenges • Data Privacy and security • Authentication: Knowing who’s on the other end • Confidentiality: Protecting data in transit • Data integrity: ensuring integrity in transit and storage Source: Adapted from GSA

37. What is an Electronic Signature under E-SIGN (electronic signature act of 2000)? “…means an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.” Digitized image of a handwritten signature Knowledge-based Authentication Biometric Profile PIN or Password Digital Signature or other encrypted authentication system Click through on software program’s dialog box Typed names Electronic Signature requires some degree of authentication

38. The Federal PKI DOD PKI NFC PKI Available to all Military personnel and dependents Federal Bridge CA Available to all Federal agencies DOD IECA GSA ACES Available to all Government vendors and contractors Available to all U.S. citizens, businesses, government agencies

39. The Solution: The Federal Bridge CA FPKI Policy Authority FBCA Operational Authority • The Federal Bridge CA simplifies PKI interoperability: • Common and easy way to determine “Trusted” PKI domains and assurance • levels (policy mapping); • Common and, relatively, easy way to validate certificate status through • cross certification; • Standard Bi-lateral Agreement between the Bridge and Agency CA.

40. From e-government to m-government • Wireless access to government services • Mobile portals • E-911 initiatives

41. Total US Commercial Wireless Subscribers: 1992 to 2001

42. Penetration of Cellular Worlwide

43. Increase in Wireless 911 Calls 50 Million 18 Million CTIA’s Year 1994 Wireless 9-1-1 and Distress Calls Statistics NENA’s 2001 Report Card to the Nation, Statistics for Year Ending December 31, 1999

44. 911 Calls: Wireless Vs. Wireline, YE 1999 26.5% (50 Million) 73.5% (140 Million) NENA’s 2001 Report Card to the Nation, Statistics for Year Ending December 31, 1999

45. Increase in Wireless Phone Use:The Good News for 911 • Safety remains a principal reason for purchase of a wireless phone • Substantial increases in wireless subscribers means more people can contact public safety while mobile

46. Increase in Wireless Phone Use:The Bad News for 911 • Wireless E911 calls more difficult to handle than wireline calls: Wireline: System generally can identify the precise fixed location of call. Wireless: Limited or no location information available.

47. Difficulty due to lack of ANI • Misrouting of 911 calls. • Takes time to obtain location of caller, even where caller knows and can communicate location information. • Many callers do not know or cannot communicate location. • Greater difficulty in determining when multiple calls report same incident.

48. FCC Mandate on e-911 • Five years ago, wireless carriers required to develop and deploy technology to provide location information for 911 calls - based on consensus agreement: • Phase I E911: call back number and cell site location. • Phase II E911: location by latitude and longitude.

49. Accuracy standards • For Handset-Based Solutions: • 50 meters for 67 percent of calls • 150 meters for 95 percent of calls • For Network-Based Solutions: • 100 meters for 67 percent of calls • 300 meters for 95 percent of calls

50. Implications of policy • Location information, privacy and SMS spam • In the US, location and telephone number may be used in the event of an emergency • Service providers would like to leverage investment in location technology for commercial services • Semantic web projects • Knowledge of location can also be used for location-based spamming of ads • However, policy is evolving on these issues