eGovernment in a recession – improving services whilst driving out costs Andy SmithSenior Director, EMEA Public Sector

i2010 unit, DG INFSO, Brussels, 12 March 2009

What’s Worrying Governments?

• More demanding citizens• Demographics – ageing population• Global Economic and Political Pressures and Changes• Escalating Social Services budgets• Welfare• Social and political change• Climate Change• Migrant populations• Better schools• Security threats

The Government Challenge …… The Common Denominator

• Governments the world over face the twin challenge

• How do you

• Deliver improved public services and safeguard your citizens………

…….without raising public spending and taxes

• Driving out administrative cost is vital

What’s Worrying Governments Now?From BBC News, 8th January 2009

Mexico takes urgent economy steps

Mexico unveils emergency measures to protect its economy from the global financial crisis and US recession including freezing fuel prices, providing $150m to struggling industries and creating thousands of new jobs.

From BBC News, Thursday 12 March 2009

UK in Recession

The UK economy contracted 1.8% between December and February, the National Institute of Economic and Social Research (NIESR) has estimated.

Social Consequences of Recession

• Hardest for the poor and socially disadvantaged

• Large scale unemployment• Rising food and energy costs –

increased personal debt• Housing repossessions • Hypothermia/early deaths• Increase in health inequalities

Economic Consequences of Recession

• Financial Pressures become even greater• Increased demand on services

• Unemployment and welfare benefits• Health and social care• Social Housing

• Rising costs of delivering services• Fuel and energy costs, transportation

• Reduced income to pay for them• Less money from taxes (less people in work)• Less money from VAT, fuel, customs etc (as

people spending less)• Less money from businesses, planning

applications etc

Government Choices in a Recession

• Cuts in Interest Rates and/or boom in Government spending?

• Tax cuts? • For businesses?• For individuals? Direct (on earnings) or Indirect (on

spending)?• Greater pressure to deliver more for less, but

• Governments are major employers and want to stimulate, not constrain economy

• Efficiency v Economic regeneration• Efficiency = less staff and fewer offices,but• What if that means more unemployment?• What about Local Communities?

Arguments for Governments Investing in IT in a Recession

IBM CEO Sam Palmisano presented a report to Obama's transition team … that argues that a $30 billion investment in

universal broadband, health information technology and a smarter power grid could create 950,000 jobs.

"If you build more roads, people don't buy more tires or GPS systems, but if you build better networks, you create entirely new

business applications.“Rob Atkinson, president of ITIF

Studies have shown that expanding broadband services create 1.3 jobs for every job created to support such infrastructure.

…and trusting Government becomes more important

New American Customer Satisfaction Index (ACSI) data suggest that a satisfying experience with a specific government agency

can improve trust in the government as a whole.

“An investment in improving federal services online is about more than just increased efficiency and cost

savings. It is an investment in trust and in the government’s

relationship with its citizens.”

In turbulent times Governments increasingly need to focus on…

• Re-establishing trust by good governance• Making sound and relevant fiscal decisions• Increasing competitiveness• Reinforcing their regulatory role• Further increasing transparency and efficiency

…by leveraging modern technologies and deploying services more efficiently.

Hence the importance of IT strategy and investment which focuses on

• IT and eGovernment as core business – not an add on or ‘nice to have’

• Driving out costs as the No1 priority• Other areas still important, e.g.

• Service Transformation• Performance Management• Risk and Compliance• Shared Services• Service Directive• Green and sustainability

• But only if they help Governments drive out cost

Service Transformation

Channel Management

Contact ManagementMake an EnquiryRequest a Service

Make a booking

Business Process and CaseManagement

Permits and Licences, Social ServicesASBOs , Environmental Services

Corporate Correspondence & Complaints

Information ManagementCitizen Master Process Analytics

SegmentationProfiling Outreach & Personalised Service

Citizen Insight Management

Performance Management

• In Cost Conscious environment……..Knowing where you’ve been is not enough……

• Knowing where you are – And where you want/need to be matters more

GRC in Government

• Increasingly relevant to PS• Recent UK Government

Reports:• Data Handling Procedures in

Government (the O’Donnell Report)

• Review of Government Information Assurance (the Coleman Report)

Green - It’s good for the environment… ….and for Businesses/PS Organisations

• DuPont: estimates $3 Billion saving over 2 decades• Wal-Mart: reducing packaging by 5% in 2008• UPS: 28 million fewer miles and 3 million fewer gallons

per year• Oracle: energy costs reduced by 10.5% in one year,

equating to approximately $1 MM

“Green Could be the largest economic opportunity of the 21st Century” – John Doerr, Kleiner Perkins Caufield & Byers

Shared Services Drivers

Central and Multiple Organisation Management“How do I manage the complexity of diverse departments, or multiple public sector organisations?”

Complexity and Costs“How can I spend less money and time on transaction processing while supporting better front line services?”

Regulations and Oversight“How do I avoid expensive and high profile errors and ensure strong governance and control?”

Match Resource to Strategy“How do I ensure resources are allocated and used in the best way to meet strategic objectives on an ongoing basis?”

Shared Services

Key Messages

• Government Organisations must quickly adapt to a radically changing socio-economic environment

• ICT central to transforming public services and driving out costs – with service transformation, shared services and back office inegration key priorities

• Technology is there! Political leadership and change management are needed to fully exploit potential of ICT.

• Oracle ready and willing to work with EU and Member States to help them exploit the benefits of ICT, drive out costs ......and improve services

Questions & Answers