ICT for the Future of Local Government

1. ICT for the Future of Local Government Massimiliano Claps, Program Manager, IDC EMEA Government Insights March 14th, 2007

2. EU Asks for High Quality and Accessible Service • No citizen left behind – by 2010 all citizens benefit from trusted, innovative services and easy access for all • Making efficiency and effectiveness a reality – significantly contributing, by 2010, to high user satisfaction, transparency and accountability, a lighter administrative burden • Implementing high-impact key services – by 2010, 100% of public procurement will be available electronically • Putting key enablers in place –enabling citizens and businesses to benefit, by 2010, from convenient, secure and interoperable authenticated access across Europe to public services • Strengthening participation and democratic decision-making – demonstrating, by 2010, tools for effective public debate and participation in democratic decision-making. Source: European Commission i2010 eGovernment Action Plan - http://europa.eu.int/information_society/activities/egovernment_research/doc/highlights/comm_pdf_com_2006_0173_f_en_acte.pdf

3. Policy and IT Executives Agree with EU Which of the following initiatives are leading your organization business / policy strategy agenda? Priority ranking for IT Managers Priority ranking for Business / Policy Managers Degree of Alignment Citizen Care / Service 1 1 Regulatory compliance 2 2 IT organization responsiveness and efficiency 3 3 Mobile workforce 4 9 Service innovation 5 6 Supply chain efficiency 6 4 Efficient sourcing 7 10 HR management 8 7 Business performance monitoring 9 8 Marketing effectiveness 10 5 Note: LRG IT managers = 48; LRG business / policy managers = 30 Source: IDC LOB Survey Q3, 2006 and IDC Vertical Market Survey, Q2 2006 = High = Mid = Low

4. Joining Up Services to Improve Satisfaction

5. Putting Services Online Isn’t Enough Transaction (full electronic case handling)100% Two-way interaction (electronic forms)75%-100% One-way interaction (downloadable forms)50%-75% Online information(25%-50%) Western Europe, Level of Sophistication of Online Services Western Europe, Level of Usage of Online Services Citizens Businesses Note: includes EU-15 and Norway, Iceland and Switzerland Source: European Commission

6. Service Delivery Must Be Joined-Up End-user interface Case workflows and records Back office operations EU Central government Regions / States Integrated Criminal Justice Provinces, municipalities, districts, etc. Police Forensic Public Prosecution Magistrate Courts Probation office Prison Service Social Services identity management forms management payments

7. Case & Record Management Are Key … % of respondents that plan to invest in the next 12 months Note: local government respondents = 109; regional government respondents = 67 Source: IDC Vertical Market Survey 2006

8. … to Automate Collaborative Workflows Initiation of Case File Research & Discovery Evaluation & Assessment Approval or Rejection Communication to Stakeholders Appeal & Review Event Trigger Archival Case Management Workflows Modelling Compliance Audit Task & Queue Mgmt Collaborative Tools Forms Mgmt Business Rules Department Department Record Management Indexing Classification XML Management Department Department Transferring Archiving Retention Policies Storage Management Content Access, Change, Rights, Security Management

9. Consolidate and integrate Architectures Comms Hardware Software Note: local and regional government respondents = 57 Source: IDC Vertical Market Survey 2006 % of Respondents

10. Managing Resources Efficiently

11. Precious Competencies Will Be Lost Sweden, Breakdown of Government Sector Employees by Age 2002 2004 Source: Statistics Sweden, 2005

12. Resource Management Virtuous Cycle ERP and analytic technologies will streamline processes, comply with regulation and enrich decision support Technology Share standard back office functions will tackle people and money shortages People Process Planning and business performance management practices will support strategic and operational decisions

13. Mandated geo-political aggregation Different Shared Services Models Will … Internal vs. external sourcing Service delivery vs. back office support functions Partnership Consolidation Specialization

14. … Contribute Achieving Higher Productivity • Economies of scale • Bargaining power • Standardization of processes and IT systems • Focus of people skills • Optimization of quality of service/ customer orientation • Thorough governance • Flexibility to local needs Shared Services Stand-alone units Low High Low High Low High Low High Moderate-high High Low High High Low

15. PM Will Support Decisions Type of activity Driver Tools Maintain accounting of purchases, billing, collection and disbursements Keep track of day-by-day business operations against annual budget appropriations Cash-based or accrual-based accounting applications Cost Accounting Measure cost by ministry, department, agency, process and single activity Comply with legislation that impose tighter controls on public administration spending Financial analytic applications enabling cost accounting (e.g. activity based costing) measurements Business Performance Management Continuously monitor multiple Key Performance Indicators (KPIs) against planned strategic and tactical objectives Improve long-term productivity to free up resources to be dedicated to citizen services Comprehensive business performance management applications (e.g. balanced scorecards) enabling measuring of multiple KPIs Financial Accounting

16. IT Solutions Will Streamline PM % of respondents that plan to invest in the next 12 months Note: local government respondents = 109; regional government respondents = 67 Source: IDC Vertical Market Survey 2006

17. Cities Go Virtual

18. The 10 Largest Urban Areas in Europe Total European population 728.39 million 714.96 million Source: UN and www.citymayors.com

19. Trivia: what cities are we talking about? • Population: 1.8 million • Access to the city for cars is quick through spacious avenues laid out in a grid, but moving around can be difficult in and around the city centre because of the many one-way streets and traffic jams. • The city installed around 200 radars. This technology uses sensors under the pavement which trigger a digital camera if the car is above speed limit. The picture, including the date and time it was taken, is sent to the driver's home, as a ticket, anywhere across the country. • Public transportation consists entirely of buses. 85% of the city's population uses the system • The main airport is located in a nearby city, but it is integrated into transportation system, with rapid buses and executive buses connecting the airport to the city. Source: wikipedia and other

20. Trivia: what cities are we talking about? • Population: 1.3 million • Traffic is a major cause of pollution: in 2005 for around 100 days, levels of PM10 were above the limit. Every day almost 800,000 cars and trucks enter the city; 70% of them commuting from the boroughs. The municipality is planning to tackle traffic problems by building tunnels and underground parking spaces. • The city has a taxi service operated by private companies and licensed by the municipal government. Prices are fairly high (significantly higher than, for example, in New York) and finding a taxi may be difficult in rush hours. • The city has three nearby airports, the largest one is 60km away, but reachable by train in 40 minutes from the city center. Source: wikipedia and other

21. Reducing Traffic in Congested Areas • From introduction in 2003 through to March 2006, operating costs were at a total of £289 million, total income at £592 million and implementation costs at £162 million • In 2005, typical delays were 1.8 minutes per kilometre vs. 2.3 minutes in pre-charging conditions • The combined effect of charging and improved vehicle technology is that NOx emissions within the charging zone fell by 13% and total PM10 emissions fell by 15% • Neutral impact on London Central economy • Drivers in central London used to spend 50% of their time in queues • Traffic speeds in central London dipped below 10mph in the period 1998-2000 for the first time since records began • It was estimated that London was losing more than £2 million every week in terms of lost time caused by congestion Source: Transport for London

22. Parking Made Easy • 650,000 registered drivers in Vienna • Any of 126,000 short-term parking spaces can be paid through mobile phones • 48,000 users one year after launch Source: Siemens Business Services

23. Meshing Buses and Bus Stops • The City of Porthsmouth – 186,000 residents – equipped the city’s 308 buses with “ruggedised” PC, running a version of Windows. Each bus is able to monitor its precise position with GPS and upload information about its accurate arrival time using a mesh mobile radio data modem. Information is transmitted to the bus stops. • The network cost £4.2m. • The scheme moves urban traffic control data from fixed-line networks to the mesh network, saving the council more than £70,000 a year in telephony charges. • The city also expects that if public transport is more predictable more people will use it, thus reducing traffic on the roads.

24. Abating Cost of Waste Collection • BigBelly Cordless Compaction System is a garbage bin equipped with a solar panel powering a motor that compacts 680 liters of waste into 18kg of easy-to-collect bags. • Queens, New York City, deployed 44 compactors between July and September 2005. The compactors reduced trash collection frequency by approximately 70% or more for workers. • Workers can spend more time on other cleaning tasks • The required number of diesel-burning trucks (or travels per truck) is reduced • With an average 4:1 compaction ratio, the solar compactors significantly reduce the amount of sidewalk space taken up by bags of trash • The bins are currently equipped with a LED that indicates when the trash is ready to be picked up. Wirelessly-enabled BigBelly is planned, which will reduce even further the need to travel to check the bins Source: Seahorse Power Co.

25. Local Economies Grow with Broadband • In 2004, the Northwest Regional Development Agency (NWDA) approved funding of £20 million for Project ACCESS and Cumbria to deploy broadband telecommunications network • Gleaston Watermill café, shops and holiday cottages • Set up an e-commerce site for Pig’s Whisper, a novelty pig business, which now brings in about 10% of sales • Cottage is more appealing to people that have to work while there • Inquiries and bookings are managed more quickly • Residents can access LearnDirect training material (e.g. European Computer Driving Licence qualification) • Textile artist Fiona Nisbet can work from home and be much more effective, both by administering finance and travel online, and by offering online workshops and bookings Source: Northwest Regional Development Agency

26. Local governments play a fundamental role in service delivery and that can only increase in the foreseeable future Modernization of service delivery will materialize into joined up IT enabled processes Portals, call centres, digitalTV, etc. will provide usable interfaces Case and record management will streamline workflow Flexible and secure architecture will support integration Efficient resource management will release resources to the front-end Shared back office services will achieve economies of scale Finance, budgeting and performance management tools will support savvy decisions Mobile and other innovative tools will “virtualize” cities to improve quality of life Summary

27. Questions... Massimiliano Claps, Program Manager mclaps@idc.com Silvia Piai, Research Analyst spiai@idc.com