INTRODUCTION

1. INTRODUCTION Jerry Mechling Harvard UniversityOctober 25, 2010

2. Agenda LNW goals and process Status now: Tough times priorities The problem: tough times ++ Major moves Preliminary assessments Next steps

3. 480 Goals and Process • Learning Goals: • Value via IT-enabled innovation • Briefing papers for practitioners • Career options/networking • Process: reading, writing, dialog, decisions… • Start with the Tough Times analysis • Extend to key stakeholders/groups • Add info from class, online, and others • Analyze further within DC workshop • Revise by January 21, 2011

4. Agenda LNW goals and process Status now: Tough times priorities The problem: tough times ++ Major moves Preliminary assessments Next steps

5. Responses to tough times… • Defense… China Prepares to Hunker Down for Three Years to Weather the Global Economic CrisisChinaMatters • But not only defense?… “You never want a serious crisis to go to waste. What I mean by that is it's an opportunity to do things that you think you could not do before. This is an opportunity.” Rahm Emanuel, Obama Chief of Staff Will today’s tough times lead to major moves?

6. Yes, if and where pressure meets possibility… Pressure -- Economics – worst pain since the Great Depression Citizen demands – to DO something (but worried it will be wrong) Demographics – as boomers retire, demand up and supply down Possibility -- Technology – Web 2.0 ++ new: data, processing, and communications (peer-to-peer) Organization – from hierarchical routine to networked innovation Politics – new administrations, mandates for change So, beyond hunkering down, WHAT SHOULD WE DO?...

7. An exercise in applied, collaborative research… Randy Johnson, Hennepin County, MN Gopal Kapur, Center for Project Mgt Gopal Khanna, Minnesota Larry Koskinen, U.S. Dept. of Treasury Timothy Loewenstein, Buffalo County, NE Anne Margulies, Massachusetts Jerry Mechling, Harvard University Jane Smith Patterson, e-NC, North Carolina Lisa Schlosser, U.S. EPA Marlin Schneider, State of Wisconsin Teri Takai, State of California PK Agarwal, State of California Reg Alcock, University of Manitoba Michael Armstrong, Corpus Christi Phil Bertolini, Oakland County, Michigan George Burgess, Miami Dade County Aneesh Chopra, U.S. CTO Sharon Dawes, SUNY Albany Karen Evans, former U.S. OMB Stephen Fletcher, Utah Maryantonett Flumian, Univ. of Ottawa Steven W. Jennings, Harris County, Texas

8. Agenda LNW goals and overview Status now: Tough times priorities The problem: tough times ++ Major moves Preliminary assessments Next steps

9. MOVES: Process + Governance  Value hierarchy GOVERNANCE: feedback + authority VALUE: productivity equity legitimacy/transparency lower risk/uncertainty PROCESS: specialization and scale rules rules rules rules rules rules Given better information, what changes?

10. Often, not much. Leadership problems… • Head in the sand • IT “not strategic” • “Don’t bother me” • Silver bullet • IT as “the solution” • “Don’t bother me” • Boiled frog • Gov’t ignores, if not a crisis • Can’t respond in time What progress so far? What’s next?

11. Assessing value and feasibility… Eight Major Moves . Val. Feas. 1. Delivery: online/civic engagement 2. Production:integrated/shared services process 3. Value Chain: industry reconfiguration 4. Infrastructure extension 5. Feedback/transparency 6. Massive collaboration governance 7. New and open standards 8. New patterns of authority Will new moves ‘out there’ work ‘here’?

12. broadband (video/emotions) and wireless (anywhere) two-way interaction (lower the engagement barriers) Examples:Obama campaign + administration 1. Delivery: Online/Civic Engagement PROCESS MOVES – “online, not in line”

13. Process redesign for scale economies and responsiveness (Eligibility, IT, HR, Finance, Procurement, etc.) Examples: Michigan (over many years); Nova Scotia (province-wide ERP) 2. Production: Integrated/Shared Services PROCESS MOVES – BPR

14. reform entire industries: trade, health care, education, counter-terrorism, integrated transportation, development, etc. 3. Value Chain: Industry Reconfiguration Example: Health Care – needs EMRs and better incentives PROCESS MOVES – XBT

15. broadband, wireless, and data investments Examples: Stimulus bill broadband, Netherlands data standards for financial regulation 4. Infrastructure Extension PROCESS MOVES – inter-operability

16. 5. Feedback/Transparency Make gov’t data accessible to all (for transparency and accountability) Examples: D.C. “democratizing data” initiative; federal initiatives with data.gov and itusaspending.gov GOVERNANCE MOVES –

17. 6. Massive Collaboration Use Web 2.0 tools to engage more stakeholders in planning and implementation Examples: Intellipedia, Diplopedia, Peer-to-Patent, etc. GOVERNANCE MOVES –

18. 7. New and Open Standards Promote collaboration via open standards (avoid the dependency and delays of case-by-case decisions) Examples: cloud computing; Canada identity standards GOVERNANCE MOVES –

19. 8. New Patterns of Authority Establish authority as needed for ongoing coordination of new patterns of interaction Examples: budgeting authority for long-term cross-boundary innovation GOVERNANCE MOVES –

20. Agenda LNW goals and overview Status now: Tough times priorities The problem: tough times ++ Major moves Preliminary assessments Next steps

21. Analysis: What’s valuable and feasible?... 2 5 1 4 4 8 3 7 6 7 6 4 Eight Major Moves . Val. Feas. 1. Delivery: online/civic engagement 2 2. Production:integration/shared services 3 process 1 3. Value Chain: Industry reconfiguration 8 4. Infrastructure extension 5. Feedback/transparency 6. Massive collaboration governance 7. New and open standards 8. New patterns of authority “Take what the defense gives” + “the bomb” + “both”…

22. Major Themes • 21st century service model. Bundle infrastructure, shared services, and delivery (for productivity, equity – hi value and feasibility): • Especially support services, health care, education, police, transport, economic development • Small locals to consume services while keeping customer relationships; states and private sector to develop and host (via cloud); feds to provide venture capital for development/evaluation/standards • 21st century open government model. Bundle data and collaboration (for transparency, competitive efficiency – potentially high but uncertain value and feasibility) • 21st century “business” model. Use self-service, volunteers, capital funds, user fees, and a redesigned tax base.

23. Agenda LNW goals and overview Status now: Tough times priorities The problem: tough times ++ Major moves Preliminary assessments Next steps

24. The GAP –a HUGE problem Extension by “fast followers” Invention by “first movers” How to learn from early movers?… Economies of standardization Economies of innovation Adoption Time Build bridges via deeper, trusted communications • More effective CXO + CIO relationships • Easier/deeper access to exemplary tools for action: scorecards, budgets, project proposals, RFPs, contracts, job descriptions, press releases, evaluations, articles, etc. • Virtual communities of practice

25. Parting Thoughts… • IT-enabled innovation – it’s what the Information Age is all about. Leadership issues, NOT just technology. • The goal is maximizing public value, NOT minimizing technology costs. • Change is clearly risky, but failing to adapt is the biggest risk. • Web 2.0 and social networking offer new and potentially powerful possibilities.

26. INTRODUCTION Jerry Mechling Harvard UniversityOctober 25, 2010