State of the States: Priorities, Trends

and Issues

NCSL Fall Forum December 6, 2013

Mitch Herckis

Director of Government Affairs National Association of State Chief Information Officers

Fiscal recovery - CIOs still seeking IT operational cost savings, alternative IT sourcing strategies and collaboration

State CIO Balancing Act: living with the past while seeking innovation and business transformation

Cybersecurity threats! New technologies, new risks

Open government gaining traction

CIO transitions, IT workforce retirements, skills gap, recruiting challenges

Today’s State IT Landscape

5) How would you characterize your IT budget this fiscal year? (State Government Only)

9%

8%

21%

45%

18% A. Increased by 10% or more

B. Flat

C. Reduced by up to 10% or less

D. Reduced more than 10%

E. What budget?

View from the State CIOs

Driving the Enterprise

Imperative

Balancing Legacy and Innovation

2. Consolidation/ Optimization

3. Cloud Services 1. Security

7. Mobile Services/ Mobility

6. Budget and Cost Control

8. Shared Services

10. Health Care

9. Nationwide Public Safety Broadband Network

4. Project & Portfolio Management

5. Strategic IT Planning

State CIO Priorities for 2014

Source: NASCIO State CIO Survey, November 2013

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CIOs seeking enterprise approaches and solutions Cybersecurity requires governance and investment Outsourcing of IT applications and the use of shared services models increasing Consolidation and cloud services growing Dissatisfied with IT procurement

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IT Project and Portfolio Management IT Procurement Sourcing Cybersecurity Identity and Access Management Disaster Recovery/Business Continuity Cross-Jurisdictional Collaboration Business Intelligence/Business Analytics Mobility Social Media Cloud Services Consolidation

2013 Survey Topics

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Survey Highlights

Issues affecting cloud adoption often do not

become apparent until CIOs undertake a

particular project

CIOs are divided on whether states are equitably

sharing risk with vendors

Many CIOs no longer believe there are major

barriers to adopting different types of sourcing

Issues of governance and turf continue to be the

biggest barrier to cross-jurisdictional collaboration

In many states, the most significant social media

activity last year has been to establish statewide

policy on its use

IT Consolidation: A Key Strategy for Years

To address budget issues and control operational costs

Facilities: reducing data centers, equipment, operational costs

Enterprise services: networks, email, telecommunications, imaging, wireless

Server consolidation: reducing footprint, operations, security impact, backup/recovery

Applications: enterprise, similar business functions

IT personnel and staffing

Source: NASCIO-TechAmerica –Grant Thornton LLP 2013 State CIO Survey

What is the Status of IT Consolidation?

2.0%

9.0%

47.0%

42.0% Project has been cancelled

Planning stage

Project is ongoing

Project is done

Enterprise email consolidation a top priority

Source: NASCIO-NASTD Joint Survey, April 2013

© Grant Thornton LLP. All rights reserved.

Cloud Services

What is your state's status regarding cloud services? 2013 2012

The state is already highly invested in cloud services

6% 15

The state has some applications in the cloud and is considering others

68% 56

The state is still investigating cloud services 22% 19

The state has considered cloud services but has rejected it

2% 0

Other 2% 10

Don’t know/does not apply 0% 0

Cost savings and efficiency Flexibility and scalability Reduced data center issues Rapid application development Better data security

Cloud can enable innovation Move from systems-centric to services-centric Shift spend from O&M to new services Support collaboration, transparency, insight

Why is the state government forecast cloudy?

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Cloud Services

Are your state laws, regulations, orders, or policies regarding data privacy and

access consistent with the growing interest in and demand for cloud solutions?

(Example: state laws that restrict sensitive data from being stored outside the

state's boundaries)

About half of CIOs believe their current legal and regulatory environment is not consistent with the delivery of cloud solutions

Government Data and Decision Making

“Too much data, not enough intelligence”

Data stored across multiple systems from multiple agencies in multiple formats

Data quality issues: dirty and messy

Lack of standards, consistency

Data sharing is difficult – format, language, access, culture, myths

Security concerns and privacy issues

Little insightful, usable data on “customers”

© Grant Thornton LLP. All rights reserved.

Business Intelligence (BI)

/Business Analytics (BA)

What is the current utilization and deployment of BI/BA within

your state government?

Although almost one-third of CIOs consider BI/BA essential today, the majority believe that states are not yet ready to derive full value from BI/BA technology.

© Grant Thornton LLP. All rights reserved.

Business Intelligence (BI)

/Business Analytics (BA)

Where within state government is BI/BA being used effectively with positive outcomes? Please check all that apply. Percent

Human Services 61%

Health Care Services 59%

Finance and Administration/Procurement 52%

Revenue 52%

Transportation 41%

K- 12 education 39%

Labor/Unemployment 36%

Justice-Law Enforcement, Courts, Corrections 34%

Economic Development 30%

Higher Education 25%

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IT Project and Portfolio

Management

How effective are your state's practices for oversight of large IT projects?

Do you use a formal IT enterprise portfolio management process to support decisions regarding planned initiatives, projects, or ongoing IT services such as application support?

© Grant Thornton LLP. All rights reserved.

IT Project and Portfolio

Management

How effectively do your IT portfolio management practices help drive IT investment decisions? Please rate this effectiveness on the scale below.

Percent Percent

Do not use portfolio management 23%

Use portfolio management 77%

Not at all effective 7%

Somewhat ineffective 56%

Effective 32%

Very effective 5%

28.9 57.7 7.7

Essential High Priority Low Priority Not a Priority Don't Know

Within the state CIO’s strategic agenda and IT operational plans, how would you characterize mobile devices and applications?

Mobility

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Mobility

How is your state managing mobility?

2012 2013

Totally fragmented and uncoordinated 12% 10%

A few coordinated government-wide projects and initiatives, but mostly fragmented efforts 46% 49%

Mostly coordinated government-wide projects and initiatives, a few fragmented efforts 32% 37%

All mobility projects well-coordinated government-wide 6% 0%

Don’t know/does not apply 4% 4%

© Grant Thornton LLP. All rights reserved.

Cybersecurity

Establish a governance and authority structure for cybersecurity

Conduct risk assessments and allocate resources accordingly

Implement continuous vulnerability assessments and threat mitigation practices

Ensure that the state complies with current security methodologies and business disciplines in cybersecurity

Create a culture of risk awareness.

Act and Adjust: A Call to Action for Governors for Cybersecurity

National Governors Association, September 26, 2013

More IT consolidation, optimization, shared services, cloud

Cybersecurity and risk management

Addressing health care: ACA, policy, exchanges, scope and complexity

More social and mobile, collaboration

Digital identity management: federated architecture

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