BUILDING A SMARTER PLANET: GOVERNMENT

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Enhancing Public Services via Smarter
Communications Dag Krogdahl - 05/26/2009
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The world is smaller and flatter.
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The reality of living in a globally integrated
world is upon us.

• Frozen credit markets and limited access to
  capital.
• Economic downturn and future uncertainty.
• Energy shortfalls and erratic commodity prices.
• Information explosion and risk/opportunity
  growth.
• Slowing superpowers and emerging economies.
• Increasingly complex supply chains and empowered
  consumers.

The world is connected economically, socially
and technically.
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The need for progress is clear.
4.2 billion lost hours 2.9 billion gallons of gas
100 million
170 billion
Kilowatt-hours wasted each year by consumers due
to insufficient power usage information.
People worldwide pushed below the poverty line by
personal healthcare expenditures.
Annual impact ofcongested roadways in the U.S.
alone.
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The opportunity for progress is clear.
30 million in cost savings
15reduction in peak loads
20less traffic
Utility networks Pacific Northwest National
Laboratory Consumers decreased their overall
peak load on the grid by 15 when offered the
opportunityto save an average of 10on their
electricity bills.
Traffic system Stockholm, Sweden The city cut
traffic by 20, loweredemissions by 12 and
reported 40,000additional daily users of public
transportation.
Smarter healthcare University of Pittsburgh
Medical Center This renowned academic medical
center projects a 30 million reduction in
capital and operating cost reductions over eight
years, enabling it to meet an ambitious clinical
agenda
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For governments, this means leading in the face
of global challenges brought on by key drivers.
CHANGING DEMOGRAPHICS Median ages are rising in
the developed countries of Italy, Germany and
Japan, but dropping in developing ones such as
India. RISING ENVIRONMENTAL CONCERNS Societies
and governments are becoming more attuned to what
the earth can provide and what it can
tolerate. GROWING THREATS TO SOCIAL STABILITY
AND ORDER From terrorism to armed conflict to
pandemics to natural disasters, the character of
threatsis changing.
ACCELERATING GLOBALIZATION Countries and
societies are becoming more economically
interdependent across social, political and
cultural boundaries, as illustrated by current
economic conditions. EVOLVING SOCIETAL
RELATIONSHIPS Today, governments are expected to
deliver results and value through secure, private
services that are available anywhere at any
time. EXPANDING IMPACT OF TECHNOLOGY The
adoption of the Internet is remaking the
landscapes of business, healthcare and
government.
Todays imperative Managing within the current
global financial and economic crisis in a way
that begins to solve the above challenges and lay
a foundation to build a better future.
Source Government 2020 and the perpetual
collaboration mandate IBM white paper
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All over the planet, governments are facing an
imperative to address significant global economic
issues through greater collaboration with
organizations, communities and each other.

• Their success depends on an ability to chart a
  path toward economic prosperity, enabling the
  fundamental innovation and transformation of
  every system and industry vital to the success of
  the planet.

• Retail
• Automotive
• Manufacturing
• Technology

FROM INITIAL STIMULUS TO LASTING IMPACT

• Telecommunications
• Transportation
• Energy
• Healthcare
• Financial Services

GOVERNMENT-INFLUENCED
GOVERNMENT-REGULATED
PUBLIC SECTOR

• Public safety
• Social services
• Education
• Postal service

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This mandate for change is a mandate for smart.
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To ensure the economic health, welfare and
security of their citizens, smart governments are
working toward
GOVERNMENT ACCOUNTABILITYLeveraging business
intelligence and planning to improve insight and
elevate performance with visibility and control.
CITIZEN-CENTEREDEXPERIENCESConnecting people
to programs based on individual needsachieving
sustainable outcomes while reducing operational
costs and maximizing taxpayer value.
GOVERNMENT
SENSE AND RESPONDCAPABILITIESEnabling defense
and law enforcement organizations to achieve
situational awareness, increased speed of
command and combat superiority.
GREEN GOVERNMENTFOR A GREENER PLANETDeploying
environmentally responsible operations, from
energy efficiency and conservation to
transportation management and the pursuit of
renewable resources.
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They are doing so by becoming interconnected,
instrumented and intelligent.
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• INTERCONNECTED
• People, systems and objects can communicate and
  interact with each other in entirely new ways.
• The Internet of people is 1 billion strong.
  Almost one third of the worlds population will
  be on the Web by 2011.
• There will be nearly 4 billion mobile
  phonesubscribers worldwide by the end of 2009.
• More than 30 of citizens in OECD countries used
  the Internet to communicate with public
  authorities in 2007.
• Smart governments perpetually collaborate across
  organizations and with all partners and
  constituents.

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• INSTRUMENTED
• We now have the ability to measure, sense and see
  the exact condition of everything.
• Today, there are 1 billion transistors for each
  person on the planet.
• By 2010, 30 billion RFID tags will be embedded
  into our world and across entire ecosystems.
• U.S. Federal RFID spending expected to grow from
  approximately 51M to 112M in FY 2009,
  representing one technology in one government.
• Smart governments empower staff and field
  workers while securing physical environments
  through the use of video surveillance and mobile
  devices.

RFID Journal INPUT.
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• INTELLIGENT
• We can respond to changes quickly, accurately and
  securely, and get better results by predicting
  and optimizing for future events.
• Every day, 15 petabytes of new information are
  being generated. This is 8x more than the
  information in all U.S. libraries.
• An average company with 1,000 employees spend
  5.3 million a year to find information stored on
  its servers.
• In sharing and protecting large volumes of data,
  government is more vulnerable. Over 50 of data
  security breaches reported since 2005 were
  through state and local government
  organizations.
• Smart governments analyze, apply and share
  information from multiple sources to assess
  situations and react quickly.

National Association of State CIOs
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An opportunity for governments to think and act
in new ways.
Create a citizen-centered experience by improving
citizen and business services.
Embrace government accountability by managing
resources effectively and efficiently.
Sense and respond by strengthening national
security and public safety.
Achieve green government for a greener planet by
ensuring a sustainable environment.
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Smart government Improving citizen and business
services.
SMART IS Sharing client information and
collaborating with integrated service providers.
SMART IS Putting the citizen first by organizing
agency services around client needs.
SMART IS Moving away from a transaction-based
system to an ongoing client relationship model.
SMART IS Maximizing the value to taxpayers by
reducing costs and streamlining business
processes.
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To ensure the economic health, welfare and
security of their citizens, smart governments
will not only connect the parts of the systems
and industries that drive our economy
EDUCATION TRANSPORTATION SOCIAL SERVICES
 UTILITIES  ENERGY  HEALTHCARE  COMMUNICATIONS
RETAIL AUTOMOTIVE FINANCE  MANUFACTURING
 FOOD  POSTAL SERVICE  TECHNOLOGY  DEFENSE
 CUSTOMS
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They will also interconnect these disparate
systems and industries to create a seamless and
efficient societal structure.
EDUCATION TRANSPORTATION SOCIAL SERVICES
 UTILITIES  ENERGY  HEALTHCARE  COMMUNICATIONS
RETAIL AUTOMOTIVE FINANCE  MANUFACTURING
 FOOD  POSTAL SERVICE  TECHNOLOGY  DEFENSE
 CUSTOMS
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The goal? Increased information awareness and
collaboration, leading to smarter decision-making
across governments, agencies and other
constituents.
20TH CENTURY GOVERNMENT
21ST CENTURY GOVERNMENT
Non-government Organizations
Energy
Other Countriesand Governments
Universities
Labor
State
Agriculture
Education
Commerce
Healthcare
Defense
Treasury
Housing
Transportation
Private Sector
Communities
Justice
GOVERNMENT
GOVERNMENT
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Why must we take action now?

• THE FINANCIAL CRISIS
• As the fundamental principles underpinning the
  global financial system are being challenged,
  many are considering the wider implications this
  might have to other systems. Governments know
  they will play a central role in defining and
  ushering in a new paradigm through policy,
  education, standards, appropriate transparency
  and leading by example.
• PUBLIC DEMAND
• Citizens and the public are demanding greater
  accountability for the stewardship of the
  financial system as well as greater regulatory
  participation in the effort to establish market
  discipline.
• EMERGING GLOBAL GOVERNANCE
• The features of a global governance framework
  among regulators and supervisors are emerging.

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The imperative for government today is threefold.

• DELIVER VALUE
• Focus on systems
• Strategic Initiatives
• Business Processes
• Do more with less
• Improve revenue collection
• Keep spending and revenues in balance
• Re-align relationships
• Enable collaboration
• Revisit existing business relationships

• EXPLOIT OPPORTUNITIES
• Build future capabilities
• Examine governance and organizational structures
• Cultivate talent
• Rethink key infrastructure services
• Transform your economy
• Initiate bold moves in key industries
• Transform and stimulate
• Position nationally and globally, where
  appropriate

• ACT WITH SPEED
• Manage change
• Clearly communicate simple goals
• Seek and leverage experience
• Leadership
• Get the information to act
• Set the agenda
• Risk and transparency
• Business performance management and analytics
• Ensure compliance

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IBMs solution strategy is aligned with the needs
of national, regional and local governments.
GOVERNMENTS ARE FOCUSED ON
IBM IS LEADING IN

• Multi-channel delivery
• Automated data collection and analysis
• Infrastructure transformation

Social services and social security

• Border
• Risk management and assessment
• Global tracking

• Identity management
• Financial management

Customs, borders andrevenue management

• Emergency response
• Digital video surveillance
• Emergency response networks

• Internet security
• Mobile operations

Defense and public safety

• Fare management plans
• Fleet and asset management (MRO)

• Road usage charging
• Transportation informationmanagement

Transportation
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Weve only just begun touncover what is possible
ona smarter planet.

• The world will continue to become smaller,
  flatter and smarter. We are moving into the age
  of the globally integrated and intelligent
  economy, society and planet.
• Theres no better time to start building a
  smarter governmentone focused on lasting
  transformation in the industries and systems on
  which we all depend. And theres no better time
  to invest in creating the kind of society we all
  desire.

Let's work together to drive real progress in our
world.