Richard J. H. Varn

Senior Fellow

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ConciergeConcierge Government: Government: Personalized Agents At Your Personalized Agents At Your

ServiceService

(And Why It Will Be More Expensive to Do It Any Other Way)

The Era of Digital Government

Where We Are in the Digital Revolution

E-Government 1990-2005: P.I.T. I.T.

• Publish

• Interact

• Transact

• Integrate

• Transform

• Technical challenges are mostly gone

• Now the if you have the money, the will, and the need, you can do it

We are hung up in the middle of

here

Optimizing ResourcesConsolidate, Simplify, and Unify

1 2 3 5 50 500 5000 ?

1

2

3

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50

1 Ea Agency

1 Ea Bureau

?

Kinds of Solutions

Number of Instances or Deployments

of the Solutions Optimization

Cross the Streams

FinancePublic

Safety & Justice

Social Services

Fiscal policies

Police Family

Budget Courts Disabled

Taxation Jails Elderly

Accounting Accounting Accounting

“Traditional” organization of back office administration

Procurement

Procurement

Procurement

IT IT IT

Shared Services

FinancePublic

Safety & Justice

Social Services

Fiscal policies

Police Family

Budget Courts Disabled

Debt mgmt Jails Elderly

Center of Excellence

Accounting

Procurement

IT

Source: IDC

Been There, Proved That

• Pool all IT funding• Consolidation• Shared services• E-Forms• E-Intake and workflow• Case, print, and desktop

management• Enterprise security • Converged networks and

VOIP• Enterprise security

• Collaborative tools• Channel migration• Quality methodologies

(CMM, ITIL, etc.)• Data warehouses/marts• ECM/Compliance • XML Gateways• Business intelligence

tools and dashboards• Identity security and ID

management

GOVERNANCE: Respecting Data Sovereignty

FUNDING: Incentives for Collaboration

CONSOLIDATION: Build IT Once

COMMON NETWORK: Tying Multiple Enterprises Together at the Edges

BUSINESS PROCESSES

SECURITY/ IDENTITY

APPLICATIONS

PLATFORM

ARCHITECTURE

INFRASTRUCTURE

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MULTI ENTERPRISE - HORIZONTAL

COMMON INTERFACE,

INFORMATION &TRANSACTIONS

CITIZENS, TRADING PARTNERS &

PUBLIC ENTITIES

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GLOBAL

NATIONAL

REGIONAL

STATE

COUNTY

CITY

TRIBAL

Layers of Trust and Technology in Intergovernmental Collaboration

What Done Looks Like for This Phase

The Pace of Change Is Accelerating

http://en.wikipedia.org/wiki/Image:PPTParadigmShiftsFrr15Events.jpg

100 years happens in 20 at the current rate*

*Ray Kurzweil

Deconstruction Destruction

• Humanity’s Great Quest: Being able to observe, identify, model, manipulate, create, form, and combine the parts of anything

• Cosmos, atoms, elements, chemicals, genes, cells, brains, bodies, ecosystems, knowledge, work, processes, markets, and institutions

Computer Power

• Power and performance of computers continue to double every 12 months

• Information doubles now every 3 years and in 10 years will double every 11 seconds1

1. Hossein Eslambolchi, CIO AT&T

Doubling Computer Power

• 20 quadrillion instructions per second (20 petahertz/petaflops) is the speed of 1 human brain

• Super-computer at brain speed: 2010

• Laptop at brain speed: 2020

• Super-computer at speed of ALL human brains: 2040

• Laptop at speed of all human brains: 2050 1

1. Ray Kurzweil

Looking Inward: From Galileo to Hubble in a Generation

• Non-invasive brain scanning capabilities are growing exponentially

• Reverse engineering of the brain and other software techniques make machines more than human in many ways

• “Will I dream, Doctor?”

©RJHV Consulting

HRI robots:- mimic all muscles of the face (over 62 muscles)- have cameras embedded in the realistic eyes, for AI-vision software- utilize AI software to “see” human faces and make eye contact- use AI-driven conversations, with speech recognition & real-time lip-sync- run using a standard notebook computer, even with all AI software running

What and Where Is Work and Who or What Does It?

Human Race

Workplace Workers

Distributed Workers

Outsourced Workers

Crowd Sourced Workers

Machine RaceComputers and Robots

Workplace Machines

Distributed Machines

Outsourced Machines

Distributed Processing

Work

Play

Neither and Both

©RJHV Consulting

Centers Are Shifting• Center of Proximity and Concentration• Center of Culture• Center of Production• Center of Application• Center of Global Scale• Center of Excellence• Center of Integration• Center of Creativity• Center of Discovery• Center of Brokering• Center of Service (Concierge At Large)

Past (Settled)

Future (Frontier)

Modeling Government: Easy

• Modeling complex systems:–Data–Rules–Processes–Outcomes

• Weather, oceans, markets, seismic events, genomes, diseases, and the cosmos are hard

• Government is easy

Convergence Is Here

• The coming together or merging of:– Jurisdictions

– Industries

– Companies

– Tools and technologies

– Products and devices

– Professions and skills

– Jobs

• The viral spread of IT across and within industries and elements of life

Analog: Standardization

• Nut, screws and bolts• Rails• Electricity• Auto tires• Paper• Plumbing and lumber• Drove the greatest expansion of

human productive capacity in history

Digital: Standardization

• Data (XML bodies are active in every industry)

• Networks (IP everything)

• Software interface (Web Services and SOA)

• Storage (the one file holy grail)

• Processing (grids and virtualization)

• And the effect will be as large…

Concierge Government

Step On the GAAS, This Is Where We Are Going

Government As A Service

Domestic and Global Economy of Scale LayerCommon, Interchangeable, and Customizable Software and Hardware Services

Public Entities Non-Profit Entities and Associations For-Profit Entities

Public Only

BothPublic Only

BothPublic Only Both

Subject Matter Expert LayerSubject and Industry Specific Human, Software, and Hardware Services

Bit

Concierge Layer

Personalized and Automated Human, Software, and Hardware Services

Private OnlyPrivate Only

Niche Function Industry Cross-IndustryOne Stop

Government

Object MarketFunctional and Software Lego Bricks

Public DevelopersDomestic, Global, and Open

Source

Private DevelopersDomestic, Global, and Open

Source

Customer Agents

Web Services Government Integrated Into Other Software and Services

Objects: The Force Is With Them

• They surround us, support us, and bind the universe together…

• The number of producers is growing dramatically

• The tools of production are being democratized

• The interface is moving up another level of abstraction (WYSIWYG Programming)

Layer One: Scale

• If it is what most everyone needs

• You will use it or broker it but not run it

• The primary change is with the provider (CTO gets an A—Acquisition)

• The near term management challenge is getting out of providing and into brokering

Layer Two: Subject Matter

• SME Layer lies in between the layer that does something for most everyone and the layer that does everything for you.

• Comprised of expert people and expert software, hardware and systems that are unique to government in their kind or methods.

Layer Two: Subject Matter• Can be very narrow or wide — from a

bit or niche on one hand to cover an entire subject like heath care or cross boundary functions like benefits, case management, training, and business intelligence and analysis on the other.

• Environmental compliance, public safety, justice, zoning, taxes, and Medicaid management and myriad other governmental functions, services and processes all occupy this layer.

Layer Three: Concierge Service

• Historical definition:–Concierge n. The hotel staff member

who assists guests by providing information and specialized services.

• A concierge listens to your needs, interprets how to meet them, interfaces with others for you and delivers a result

• They make life simple

Layer Three: Concierge Service

• If the concierge knows you, then your needs can be anticipated and results delivered without having to ask

• What is envisioned here is exactly that: personalized and automated human, software and hardware services that – Deliver government to its citizens and

customers

– Without having to be asked (in most cases)

Layer Three: Concierge Service

• Government has a limited, reasonably sized universe of laws, rules, interactions, data and processes that can be mastered by machine intelligence and managed by caring people who deal with exceptions as needed.

• This makes the work of having a one-stop concierge take care of all your interactions with government feasible.

Layer Three: Concierge Service

• Automated and invisible service

• Will that be cheaper?

• Is that a trick question?

Customer Agents: You Know Them

• Any function of government not requiring the physical presence of the citizen can/is/will be done by a customer agent

• Government customer agents are people, professionals, software, and services that do government for us

• Accountants and lawyers are old school• Turbo Tax, Kelly, NAIC (Insurance

Commissioners), permitting agents, and many others are working

Customer Agents

http://www.kellysolutions.com

We are the first company in the world to successfully convert disparate data from multiple states and put it into a seamlessly integrated web-based application.  Through this web site regulated businesses and individuals can complete a multitude of compliance activities with one... two... twenty... or more states in only a fraction of the time they used to spend filling out and mailing paper forms...at a fraction of the cost.

Customer Agents

With today’s tools, Intuit, H&RBlock and others have reverse

engineered one of the most arcaneand artful areas of government — the

tax code — and turned it intoan automated service.

Customer Agents

You’ll find everything you need to make sales and use tax compliance as painless as possible, from the

latest, most accurate tax information and tax forms through integrated software tools that optimize how

quickly and easily you put that data to work. Our sales and use tax research team has acknowledged

industry experts. They’re spending all day, every day, making calls and combing through regulations to

ensure the CCH sales and use tax data bases are the most accurate, the most comprehensive, and the most

up to date. We’re doing it so you don’t have to.

Customer Agents

“…to meet the regulatory requirements of medical device, pharmaceutical, biotechnology and similar FDA-regulated manufacturers. Our customer list includes some of the best-known healthcare companies in the world. NetRegulus

professionals understand the complexities of FDA regulated industries. NetRegulus can help

you turn regulatory data management into a strategic advantage.”

Customer Agents

OpenPages develops enterprise compliance management solutions that streamline knowledge-

intensive processes to improve corporate accountability and reduce disclosure process cost. They have over 170 major corporate clients. The company’s portfolio of applications includes SOX Express, which automates the corporate financial

reporting and disclosure compliance requirements of Sections 404 and 302 of the 2002 Sarbanes-Oxley

Act.

Customer Agents

Trusted by more than 4,000 clients, Bridger Insight is the most widely used

PATRIOT Act*, BSA and OFAC** compliance software for comprehensive watch list screening, identity verification

and due diligence research.

Customer Agents

Compliance-25 ProVersion 3.0 will increase your Gross Profit on every inspection because it takes care of many of the laborious tasks associated

with inspections. There will be no more time consuming preparation of inspection forms, Compliance-25 generates the forms for you. The forms that are ready to be completed are then downloaded to an easy-to-use Palm™ handheld computer. Your inspectors can quickly complete the

forms, using a set of standard answers, and move to their next inspection. Palm™ handheld computers can store forms for multiple properties so your inspectors do not have to return to the office until they have completed their assigned inspections. Compliance-25 ProVersion 3.0 is a state-of-the-art forms generation program that contains the NFPA-25 and NFPA-72 code

standards for Inspection, Testing, and Maintenance of Fire Suppression and Alarm Systems. Compliance-25 is not restricted to the NFPA 25 & 72 codes. Virtually any code standard can be added to Compliance-25.

Customer Agents

What’s required is a compliance case management server that accepts all suspect transactions, incorporates data from other sources, quickly incorporates process changes or new business logic, automates the

handling of the routine suspect transactions, facilitates manual processes and provides overall case management.

The technology platform is the TigerLogic XML Data Management Server (XDMS), which interfaces to all data sources and handles multiple data

schemas that can either be defined upfront or in real time. Data with new schemas are always accepted and mapped into the data model. TigerLogic XDMS is built on the Pick Universal Data Model (Pick UDM), a flexible self-defining data model and high performance streaming and indexing engine

that is 10x to 150x faster than RDBMS for XML data.

Customer Agents

GIFTSWEB products include the world's most comprehensive anti-money laundering & OFAC, e-banking, and customer

relationship management solutions. Our various products have extensive functionality to meet the regulatory requirements of

the U.S. Department of the Treasury, Office of Foreign Asset & Control (OFAC), The Federal Reserve Bank, and The USA

Patriot Act of 2001.The GIFTS family of products are regularly enhanced to meet

the changing regulatory, operational and business needs of our clients. These financial institutions provide much of the impetus for improvements to the various GIFTS products. Our staff has

both the financial background and technical expertise that allows us to understand our client's total environment. We

provide the highest level of support, including 24 hour coverage.

Customer Agent Hybrids

LexisNexis® Teams with Compliance 360 to Offer Total Compliance Solution

World’s leading compliance content aggregator will market solution to corporate legal departments

“Every business is governed by thousands of rules and regulations that are changing constantly and

every one of those changes has the ability to negatively impact the corporate compliance program. Not only do managers have to stay on top of all the data, they also have to take action to keep changes from creating noncompliance,” says Steve McGraw, Compliance 360 chief executive officer. “Having the

ability to track those changes through LexisNexis and then easily integrate updates into their enterprise governance, risk and compliance management

solution for immediate action can improve compliance and reduce risk of fines and other liabilities.”

Surplus Property: Chain of Custody

• On the Surface…Property Room—Today’s law enforcement agencies have property rooms full of stolen or forfeited goods. The rightful owners are not easily identified, and once property is no longer needed as evidence, it must be disposed of properly.

• Founded and managed by former police officers, Property Room harnesses the power of the Internet to quickly move items out of police property rooms, reduce personnel costs and generate revenue well beyond traditional police auction methods. and there is no cost to the participating police or sheriffs department.

Surplus Property: Chain of Custody

• Under the covers…Truition—an eCommerce platform for enterprises and high-volume auction sellers, from inventory management, marketplace launching and order management, to customer checkout and returns management. Includes own branded web store and auction marketplace.

Customer Agent Helpers

HCCA exists to champion ethical practice and

compliance standards and to provide the necessary resources for ethics and

compliance professionals and others who share

these principles.

Government Examples

• FDIC

• Comptroller of the Currency

• Federal Reserve

• EPA

• San Diego County

Customer Agents Future ShockMy Prediction

• Data that flows to government is being standardized and within 10 years all data flows to government will be standardized or will be easily transformed to the government accepted format

• Government modules are becoming standard parts of software

• The transaction side of government will be eliminated within 20 years and replaced by customer agents in the form of software and private sector services and systems

Steps to GAAS UP

• Consolidate (across boundaries and industries)

• Broker (think “Plastics…”)

• Standardize (what and how)

• Automate (no human can…)

• Innovate (no machine used to…)

Steps to GAAS UP

• Document rules (rules are made to be coded)

• Virtualize (it happens somewhere…)

• Eliminate processes and systems (clean your plate!)

• Re-deploy resources (harvest)

1. Law Enforcement (Civil, Criminal, Corrections, Inspections, Regulation, Appeals, Revocations)

2. Licensing (Licenses, Permits, and Permissions)

3. Disbursement (Benefits, Grants, Payments, and Loans)

4. Revenue (Taxes, Fees, Debts, and Financing)

5. Customer Service (Call Centers, Information, Intake, Help, etc.)

7. Service Delivery & Consulting

6. Administrative Services (IT, Facilities, Personnel, Contracts, etc)

1. Economic, Business, Community, and Workforce Development

2. Environment & Natural Resources

3. Education, Training, Arts & Culture

4. Finance

5. Transportation & Infrastructure

6. Public Safety (Corrections, Prevention, Emergency Management, Defense)

7. Health (Health, Medicaid, Medicare, Workers Compensation, etc.) and Human Services (Agencies, Institutions, Unemployment, and Non-Health Benefits)

7 X 7 of Government

What We Name It Now

• Health, Human, and Social Services• (Unemployment, Workers Compensation,

Workforce, Job, and Training Services• Public Works, Transportation, and

Infrastructure• Education• Judicial Branch, Courts, Magistrates, Judges,

and Clerks of Courts• Corrections, Jails, Parole, Probation, Prisons,

Community and Juvenile Corrections• Police, Fire, Sheriff, Constable, State Patrol,

Crime Labs, Dispatch/911, and State Criminal Investigation

• Prosecutors and State, County, District, City Attorney, and Attorney General

What We Name It Now

• Tax, Revenue, Assessor, and Treasurer• Consumer Protection, Ombudsman, Advocate,

Inspections, Fraud, Audit, Comptroller, Controller and Oversight

• Zoning, Permitting, Community Development, Planning, and Land Use

• Recorder, Registrar of Deeds, Register of Corporations and Names, and Lien Filings

• Administration, General Services, Purchasing, Human Resources, and Information Technology Economic or Community Development

• Natural Resources, Environment, Agriculture, Forestry, Parks, and Recreation

• Arts, Culture, Museums, Events, and History

Government Sub-functions

• Example: Law Enforcement– Investigation– Prosecution– Criminal Cases– Corrections– Parole or probation– Rehabilitation and Treatment– Civil Cases– Regulation– Monitoring (e.g. OSHA)– Audits

Mapping What Government Does

Abstracted Government Components and Functions Functional AreaLaw Enforcement

Investigation X X X X X X X X X Prosecution X X X X

Criminal Cases X X X X X XCorrections X X

Parole or probation XRehabilitation and Treatment X X X X

Civil Cases X X X X X XRegulation X X X X X X X X

Monitoring (e.g. OSHA) X X X X X X X XAudits X X X X X X X

Licensing, Registration, and Recording

Professional Licensure X X X XActivity Licenses (driving,

hunting, etc.) X XPermits X X X X X

Registration of things X X X X X XLand Records X X

Birth X X XDeath X X X

Marriage X X

DisbursementsBenefits X X X X

Grants X X X X X X X XPayments X X X X X X

Loans X X X X

RevenueTaxes X X X

Fees X X X X X X X X X X XFinancing X X X X

Customer ServiceCall Centers X X X X X X

Intake X X X X X X X X X X X X XCase Management X X X X X X X X X X X X X X X

Information X X X X X X X X X X X X XHelp Desk X X X X X X X X X

Administrative ServicesProcurement X X X X X

Contracts X X X X X XFacilities, Buildings, Grounds,

and Maintenance X X X X X X X

Two Branches of the New Government

• Both the Executive and Legislative must change

• They need to align money and governance with functions and outcomes, not old line department and committee names and turf

• This is the hardest of all to grasp, accept, and implement—and the fastest way to better government

Realizing Value: The Obvious

High Value

Low Value

High Cost Low Cost

Current Process

New Process

Leap and Reap

Rapidly

Government Failure to Precipitate

Creep and Weep Over a Much Longer Time

High Value

Low Value

High Cost Low Cost

Current Process

New Process

Current Process

Keep the Old Process But Do

Less of It

Scope Industry

Segment or Government

Function

Leveraging Technological and Political Power

Publish Data Routing

Processes

Create Harmonized

Forms

Identify Forms and Paperwork Processes

Within Segment or

Function

Determine Core Data Elements and Business Rules

Select Forms and

Processes to Be

Addressed

Select Industry or Government

FunctionFinalize and Publish XML Schema for Data Elements,

Business Rules, and Presentation Formats

Harmonize Data Elements and Business Rules; Coordinate With

Industry Standards

Customer AgentsPrivate Industry Solutions,

Systems, Services, and Software Modules

Agency Processing, Applications,

Databases, and Legacy Systems

Work With: • Business and Industry Associations• Industry Solutions Vendors • Federal, State, and Local Governments• Customer Agents• Industry XML and Data Standards

Bodies

Harmonize and Reduce

Conclusions and Lessons Learned

Leading Change Is Not for Wimps—You Have to Ask and

Answer Some Tough Questions

Excellence Accelerators

• Success depends on more than running an efficient, optimized IT shop

• Business process change, a change methodology, and resources (Six Sigma, etc.)

• WIIFM answers• External pressures, internal needs• Leadership, leadership, leadership• Borrowing shamelessly• Follow the technology and the money

4 Show Me’s About Resistance

• Show me the law

• Show me the rule

• Show me the policy

• Show me the court case

• Then show yourself out while I get to work…

4 Questions, Different Answers

• To whom do I report?

• With whom do I work?

• Where, if at all, do I sit?

• What needs to be done today?

5 Process Improvement Truths

• The process is broken—really• Process exceptions, not

expectations• Subscribe, present, presume, and

get permission to give personal service

• Let the consumer of the service own the PII data for service purposes

• Always give choices and their cost

The Concierge and Real Control

• Resources are limited

• The public wants results and real customer service at a bargain price

The Concierge and Real Control

• Sovereignty and local control are NOT about data, machines, and software

• Outstanding citizen service, satisfaction, quality of life, and productivity mean control of what really matters

• Are you the concierge?

Richard J. H. Varn | Senior FellowC E N T E R F O R D I G I T A L G O V E R N M E N T

rjmvarn@msn.com

www.centerdigitalgov.com

515.255-3650

100 Blue Ravine RoadFolsom, CA 95630 © 2

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