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									                                                                White Paper

Top IT Actions to Save States Money and
Boost Efficiency

Executive Summary                                          specifically, to consolidate services and manage IT
In a time of austerity, governors can act to improve the   assets better; to use IT to better manage government
way state agencies use and buy information technol-        revenue and resources; to update IT procurement pro-
ogy and in doing so can cut costs, increase produc-        cedures; and to make government more accessible
tivity, and concentrate core services where they are       through mobile and wireless services. The report also
most needed. Advances in technology have provided          recommends actions that involve more upfront fund-
more options for governors to cut costs and improve        ing and policy change. Those include sharing services
service delivery. For example, shared service deliv-       for administrative functions, using IT to measure and
ery—often referred to as “the cloud” or “an enterprise     improve government performance in key policy areas,
approach”—allows private and public sector organiza-       and engaging citizens in service delivery using IT.
tions to purchase computer processing and other infor-
mation technology (IT) functions as a service, rather      Background
than invest in technological infrastructure. States can    Even though they are constrained by tight budgets,
start to make their information and service offerings      many states are finding ways to realize the potential
easily accessible through mobile devices, both to offer    of information technology to deliver services more ef-
citizens better access and to boost the productivity of    fectively. That resources are constrained is clear: State
their workforce. States can also use technology to bet-    general funds have been so depleted by the slow eco-
ter detect fraud and abuse.                                nomic recovery that both fiscal 2009 and fiscal 2010
                                                           saw nominal declines in state spending.1 Though state
The public sector is prone to adopt technologies slow-     finances began to improve a bit in 2011, 29 states will
ly and in a piecemeal fashion. States may be unable to     still have lower general fund spending in fiscal 2012
make IT improvements because of tight budgets for          than in prerecession 2008.2 Even when there are clear
IT, because of the tendency of agencies to make iso-       benefits and cost savings to be had down the road,
lated or uncoordinated decisions about acquiring IT        states do not at present have the money to invest in up-
hardware and software, and because of restrictive pro-     grading technological infrastructure. But it is equally
curement requirements. At the same time, tech-savvy        clear that making better use of IT can improve the per-
citizens increasingly press for improved services.         formance of state governments.

This report focuses on actions that states can take to     Advances in technology continue to transform the way
improve their use of technology without making large       the private sector operates, and at an increasingly rap-
investments in new information technology systems.         id pace. The public sector, however, is prone to adopt
The recommendations include quick actions that can         technologies slowly and in a piecemeal fashion. By em-
be implemented without significant policy changes,         ulating the private sector and finding ways to improve

  444 North Capitol Street, Suite 267 |WaShiNgtoN, D.C. 20001-1512 |202-624-5300 |
                                                                         National Governors Association

the use of technology—through consolidation, shared               purchasing of goods and services—consumes a signif-
services, and data visualization and storage—governors            icant portion of government revenue. According to the
can cut costs and improve service delivery.3 To put those         Pew Center on the States, states spend nearly $200 bil-
strategies in place, states must be willing to reexamine          lion annually on procurement.6 State procurement re-
their existing IT systems and work creatively with in-            quirements for IT, in particular, have not always kept
formation technology companies to reduce the cost of              up with industry standards or the pace of technological
new technology. Some states are already implement-                advancement.7
ing such improvements. Utah has consolidated its data
centers, reducing the number in use by state agencies             Third, technology has been used to implement pro-
from 35 to two. The consolidation is expected to save             grams but not to assess their value and effects. State
the state at least $4 million annually, partly through re-        CIOs cite misalignment of IT and state strategic goals
duced energy consumption.4 Other states are using ad-             as an obstacle to effective use of IT.8
vanced data analytics to know who their services are
reaching and how well the services are being used.                Finally, states face rising demand from citizens for on-
                                                                  line access to government services and information. In
Making IT investment decisions at the state level                 particular, more and more people are accessing informa-
rather than at the agency level, changing procure-                tion and services pertinent to virtually every aspect of
ment requirements, and providing better web-based                 their lives through their mobile phones, and they want
and mobile services can create gains without large                to reach their governments as easily as they can reach
investments in new technology. As the fiscal outlook              an online retailer. In 2010, one in four Americans ac-
improves and more resources become available, and                 cessed the Internet primarily by using a mobile device.9
as investment in IT becomes a higher priority because             Fifty-eight percent of state CIOs surveyed in 2011 char-
existing systems are becoming obsolete, spending for              acterized mobile devices and apps as an essential or top
new IT systems and services can bring even greater                priority for state strategic and operational plans.10
improvement and cost-effectiveness to the functioning
of state governments.                                             The benefits to states of improving their use of infor-
                                                                  mation technology thus go beyond cost savings. State
Challenges Facing States                                          that improve their IT use can enable new models of
Governors and state policymakers face a number of                 service delivery and collaboration across agencies
challenges as they look for ways to improve their                 and jurisdictions—models that will enable faster and
states’ use of information technology. First, state               more efficient decision making, decrease the overlap
agencies’ isolated and uncoordinated decisions about              between agencies and jurisdictions, and ultimately im-
purchasing and using IT have often led to redundant               prove the services delivered to citizens.
or overlapping resources that impede interoperabil-
ity and data sharing between agencies. Two-thirds of              This report focuses on improvements that require little
state chief information officers (CIOs) surveyed by the           or no investment in new information technology sys-
National Association of State Chief Information Of-               tems. A group of private sector IT experts pinpointed
ficers (NASCIO) in 2011 identified agency resistance              ways that states can use IT to save money and boost
to changing those practices as a barrier to improving             efficiency. Their recommendations include quick ac-
the use of IT.5                                                   tions that require little upfront funding and can be im-
                                                                  plemented without unwieldy policy changes, as well
Second, many states have outdated or restrictive re-              as actions that will entail spending and policy changes
quirements for IT procurement. Procurement—the                    but will lead to lasting reform and improvement.

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                                                                       National Governors Association

Solution Set 1—Quick Actions                                    In California, the office of the state CIO reduced the
Four actions that can be implemented without great              amount of space devoted to data centers by 75,000
cost or significant policy changes are:                         square feet, and it found that the IT of five large agen-
                                                                cies could co-locate in 5,000 square feet of an existing
  1. Consolidate services and better manage IT as-              data center. That change took less than twelve months
     sets;                                                      to accomplish and is saving the state more than $40
  2. Use IT to better manage government revenue                 million.13 Illinois reduced the amount of data center
     and resources;                                             space by 22,800 square feet in 2005 by decommission-
  3. Update IT procurement procedures and require-              ing 22 substandard data center and computer rooms
     ments; and                                                 and physically moving two mainframes and 1,364
  4. Go mobile and go wireless.                                 servers to two primary data centers. The state also vir-
                                                                tualized and decommissioned 854 aging servers and
Those actions are interconnected, and many states have          installed 190 new virtual servers, for a total of 1,044
already made progress in implementing them. They are            virtual servers managed today, achieving an increase
listed in order of expected impact, in both cost savings        in server processor use of more than 700 percent. The
and improved efficiency, from greatest to least.                project has produced a 260 percent return on invest-
                                                                ment (ROI), totaling more than $10.7 million in net
#1: Consolidate Services and Manage                             savings, between July 2006 and May 2010.14
IT Assets Strategically
States can decrease duplication among agencies in               Michigan has fully consolidated the IT assets used
two ways—by consolidating services across agen-                 to provide all of the state’s essential functions. The
cies and by improving the management of IT assets.              consolidation reduced the number of state workers in
In some cases, consolidations can also occur across             IT by 15 percent and the number of contractors by 64
governments, for example, between state and local               percent and placed 40 disparate data centers in three
entities.                                                       secured hosting centers.15 In 2011, Michigan began the
                                                                process of building local partnerships for shared ser-
Consolidate Services                                            vices, including local and state network integration,
A report submitted to the federal government by a               cloud storage on MiCloud, e-mail server consolida-
number of private sector companies, One Trillion                tion, and an online shared service community modeled
Reasons, estimates that 20 percent to 30 percent of             as a “Craigslist for government.”16
federal IT spending could be eliminated by reducing
IT overhead, consolidating data centers, eliminating            States are also trying to cut costs and improve effi-
redundant networks, and standardizing applications.11           ciency by coordinating services across jurisdictions.
As states have faced budget constraints, some amount            Michigan completed a multiyear, cross-jurisdiction
of consolidation is already a given. Almost every state         collaboration project focused on providing a standard-
has done something on consolidation.12 The key to               ized, interoperable communication system for disas-
success is to find ways to consolidate physical infra-          ter response and day-to-day support of activities for
structure and technological applications, to cut costs          public safety and governmental entities. More than
but also as the first stage in a longer-term journey to         1,200 agencies improved operational efficiencies and
transform IT use.                                               upgraded their policies and procedures. The state re-
                                                                duced the funding needed to operate the new system
States can save money by consolidating physical in-             by 33 percent from 2001 to 2009, saving taxpayers an
frastructure, such as data centers and e-mail servers.          estimated $87 million.17

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                                                                       National Governors Association

One area of particular focus for cross-jurisdictional           approach allows the state to report on the state of the
collaboration has been the consolidation of electronic          state’s IT assets at any point and to track IT assets and
applications, such as e-mail systems and back-office            determine the total cost of ownership throughout the
services. New York’s counties and state agencies have           asset’s life cycle. The state can leverage its purchasing
partnered to streamline access to applications by using         power because IT hardware and software purchases
OneNetNYS, which provides faster, more secure, and              can be made on a government-wide basis. The ap-
more robust connectivity to state data centers and oth-         proach also allows the state to plan for a shared, gov-
er state agency applications. NYSeMail already serves           ernment-wide information technology infrastructure.23
as the centralized e-mail and calendaring system for
more than 25 New York state agencies. The three-                #2: Use IT to Improve Revenue Collec-
phase change began 2010, with the migration of 10               tion and Resource Use
agencies and more than 26,000 e-mail accounts to the            States can use IT to improve revenue collection, pre-
centralized system in one year.18 Centralizing and con-         vent fraud, and improve resource use so that govern-
solidating Indiana’s IT infrastructure brought annual           ment becomes more efficient. At the federal level, the
savings of $13.9 million.19 States such as California           Office of Management and Budget estimates that $125
and Michigan are moving to a single e-mail system,              billion was lost to improper payments in 2010 and an-
from more than 100 different systems.20                         other $116 billion was lost in 2011.24 Applying new
                                                                analytical techniques can increase the identification of
Manage IT Assets Strategically                                  fraud and error to reduce and recapture improper pay-
States can improve the management of their IT assets            ments. In response to President Obama’s directive to
by considering the total cost of owning technology              recapture more improper payments, federal agencies
rather than only the acquisition costs. A total-cost-of-        recovered approximately $687 million in 2010 and
ownership analysis looks not just at the cost of acquir-        achieved a decline in the overall error rate from 5.3
ing technology, but also at the maintenance and ser-            percent to 4.7 percent.25
vice costs of its use and upkeep.
                                                                States are moving to better manage their resources
In 2008, Oregon introduced an asset management                  and revenues using IT. South Dakota implemented
system that specifically targeted the state’s informa-          an integrated tax system, the Capitalizing on Efficien-
tion technology assets, both hardware and software.             cies and Data Accelerating Revenue (CEDAR) sys-
The state’s IT Asset Management (ITAM) policy es-               tem, in January 2009. A nine-month comparison of
tablishes standard methods and schedules that agen-             data from the previous systems to the new CEDAR
cies will use to manage, collect, and report their              system showed a 21 percent increase in total audits
information technology asset information. State agen-           completed and a 20 percent increase in total audit as-
cies have established IT asset management programs              sessments, resulting in an increase of approximately
and procedures to track the acquisition, deployment,            $2.4 million in revenue and an increase in total audit
management, and disposition of all IT assets under              collections of $57,000.26 Arizona’s Fines/Fees and
their control. Agencies collect and report information          Restitution Enforcement (RARE) program collected a
about their IT assets and planned IT investments to             total of $117.3 million in backlog collections between
the department of administrative services Enterprise            2009 and 2011.27
Information Strategy and Policy Division.21 The state
publishes an annual statewide IT asset inventory re-            States can also use technology to better detect and
port. The ITAM policy also requires that all agencies           manage fraud and abuse. In Kansas the departments
submit an IT asset life cycle replacement plan.22 That          of revenue and labor worked together to implement a

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                                                                       National Governors Association

multiagency website for reporting misclassification of          #3: Update IT Procurement Procedures
workers, which occurs when an employer incorrectly              and Requirements
classifies workers as independent contractors rather            Procurement consumes a significant portion of gov-
than employees, thereby avoiding paying taxes and               ernment revenue. According to the Pew Center on
health care contributions for them. The joint electron-         the States, states spend nearly $200 billion annually
ic system allows more collaboration between the two             on procurement.34 A strategic, rather than tactical,
agencies in investigating intentional misclassification,        approach to reducing procurement costs starts with
and that should dramatically improve enforcement.28             identifying weaknesses in existing supply chains,
                                                                determining the right selection factors, and screen-
The California Employment Development Depart-                   ing suppliers against those criteria. Research by the
ment (EDD) unemployment insurance program has                   consulting and accounting firm Accenture concluded
been a target of tax evasion schemes, called “SUTA              that strategic sourcing by public agencies can yield as
dumping,” in which shell companies are formed and               much as 20 percent in total cost savings and that orga-
manipulated to obtain low unemployment insurance                nizations can accomplish strategic sourcing at scale in
tax rates. EDD worked with a vendor to develop a                as little as 12 months.35
centralized operation to help manage fraud, waste, and
abuse across multiple programs. Since August 2004,              One way states can improve their procurement pro-
EDD has assessed more than $100 million and col-                cesses is by increasing group procurement and inte-
lected an additional $32 million.29 Also in California,         grating procurement decisions across state agencies.
the Los Angeles County Department of Social Ser-                The Georgia Department of Administrative Services
vices is using social network analysis and predictive           streamlined procurement through Spend Management
analytics to detect both opportunistic and organized            Analytics, created in partnership with the Pew Center
fraud in the child care program, leading to savings of          on the States and Microsoft. The department’s strate-
nearly $30 million annually.30 Alameda County, Cali-            gic sourcing project created a refreshable view of state
fornia saved $11 million that would have been lost              spending data, across 86 state agencies and 35 aca-
to waste and fraud by implementing a new social ser-            demic institutions, that allows continual monitoring of
vices integrated reporting system for its 2,200 social          spending as it occurs. There is evidence of initial sav-
services employees.31                                           ings. Statewide contracts for police pursuit vehicles
                                                                allowed the procurement of squad cars at 16.6 percent
Similarly, the Washington Department of Labor and               below dealer invoice and administrative vehicles at an
Industries used improved information technology to              average of 22.4 percent below invoice. During a time
detect unregistered employers’ not paying workers               when petroleum and chemical prices were driving up
compensation taxes for their employees. The depart-             the cost of paint, Georgia negotiated discounts of 50
ment is recovering about $26 million of the premium             percent to 60 percent for paints, thinners, and varnish-
revenue lost annually and realizing a return on invest-         es used to maintain state buildings.36 Pennsylvania
ment of about eight to one.32                                   achieved an annual savings of $140 million through
                                                                its strategic sourcing initiative.37
Finally, states are using improved information technol-
ogy to monitor energy and water use in their buildings.         Some states, such as Florida and North Carolina,
Missouri integrated individual systems and buildings            have improved their strategic sourcing through e-pro-
at a common user interface level to detect inefficient          curement initiatives. E-procurement systems connect
operating conditions. The state put that information to         state agencies directly with suppliers, manage the inter-
good use and saved over $35 million per year.33                 actions between them, and provide a way to aggregate

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                                                                       National Governors Association

government purchases to obtain better prices. They also         of threatening disasters, such as tornados. Although
provide suppliers greater access to statewide procure-          the new technology does not replace the siren warn-
ment information and increased access that market. In           ing system, it provides an additional means to notify
North Carolina, NC E-Procurement has achieved a fast-           citizens who are too far away to hear the alarm. The
er and more efficient method for quoting (eQuote) and           Colorado Division of Emergency Management has a
has increased order accuracy through electronic order-          Twitter account that keeps residents informed about
ing with a consistent purchase order format.38                  dangerous weather conditions. The city of Denver
                                                                is also exploring establishing a warning system that
In addition to using IT to improve government pro-              would send electronic messages. Using digital tools
curement generally, there are specific ways that states         allows residents to be instructed, for example, where
can improve the procurement process for particular IT           to go for help after a tornado hits or what to do in the
services. For example, states can simplify and mod-             aftermath of a storm.43
ernize contract terms and conditions (T&Cs). Oregon
worked with the vendor community to mitigate prob-              States can use IT to create online processes for every-
lems with T&Cs that discouraged vendors and stifled             thing from vehicle registration to business license re-
competition. In 2009, the state reached out to indus-           newal. Utah has launched online services in a number
try and asked how it could change its approach to IT            of areas. Its “On the Spot” vehicle registration, imple-
acquisition to improve competition and services and             mented in 2008 by the state tax commission, had more
lower costs. After engaging industry, so as to under-           than 375,000 users in 2009. Ninety percent of profes-
stand the companies’ perspective, Oregon produced               sional license renewals, 89 percent of all annual busi-
six new template forms for IT contracts that move the           ness renewals, and 71 percent of real estate license re-
state closer to commercial norms, and it developed a            newals are now done online. In addition to creating an
“shared-risk” approach with appropriate liability.39            online license renewal process, Utah created a mobile
                                                                version of its service that allows citizens to check the
#4: Go Mobile and Go Wireless                                   license status of any of Utah’s more than 400 profes-
More and more people are accessing information and              sional license holders, including doctors, engineers,
services through their mobile phones. In 2010, one in           architects, and contractors.44 The Professional License
four Americans accessed the Internet primarily by us-           Lookup application enables users to check the profes-
ing a mobile device.40 Mobile web access—via laptops            sional license status of individuals in state-regulated
and smart mobile devices—is expected to overtake                occupations, displays the basic license information,
desktop web use by 2015.41 Fifty-eight percent of state         and color-codes the results based on active, inactive,
CIOs surveyed in 2011 characterized mobile devices              suspended, or expired status.
and apps as essential for state strategic and operation-
al plans.42 States can start to make their information          To improve its efficiency, the California Department
and service offerings easily accessible through mobile          of Motor Vehicles (DMV) has created a new iPhone
devices, both to provide better access to citizens and          application that allows citizens to learn the wait times
to boost the productivity of their workforce. Boosting          for service at local DMV offices. Users can also sample
workforce productivity, in particular, has the potential        written driving tests online, access the DMV library of
to reduce costs.                                                driver education videos, and receive GPS directions to
                                                                the office with the shortest wait time. Later this year,
States can launch mobile portals to services. Colo-             the agency also plans to launch an online portal that
rado is going mobile by using digital devices such as           will enable citizens to create a personal profile, with
cell phones, e-mail, and Twitter to warn communities            information such as a basic version of their driving

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                                                                         National Governors Association

record, vehicle registration payments, and points on              recruitment/training; legal contracts; real estate man-
their license.45                                                  agement; vehicle fleet management; purchasing and
                                                                  keeping accounting and budgeting tools; custodial and
                                                                  groundskeeping functions; printing; and information-
Solution Set 2—Deeper Reform                                      technology.47
and Change
States can reap even larger gains from improving their            Government agencies that have moved to shared ser-
use of information technology if they are willing to              vices have generally achieved between 25 percent
make modest additional investments and more signifi-              and 50 percent savings associated with information
cant changes in the way they do business. This sec-               technology operations.48 In 2011, 29 states measured
tion focuses on what states can do in the mid-to-longer           cost savings after consolidating services, and only 7
term not just to cut costs but to create new capabilities.        percent reported realizing savings that were less than
To produce longer-term benefits, states can:                      expected.49 Four government case studies from the
                                                                  United Kingdom suggest that 20 percent to 30 percent
  1. Share services for administrative and back-of-               savings are achievable by moving to a shared services
     fice functions;                                              platform.50 Accenture estimates that shared services
  2. Use IT to measure and improve government per-                can improve performance and decrease administra-
     formance in key policy areas; and                            tive costs by up to 25 percent.51 For example, in Ohio,
  3. Engage citizens in service delivery using IT.                103 state agencies launched Ohio Shared Services to
                                                                  consolidate back-office transactions such as accounts
                                                                  payable, travel expense reimbursements, vendor 1099
#1: Share Services for Administrative                             forms, vendor invoice statuses, and vendor payment
and Back Office Functions                                         inquiries. The addition of more back-office functions
Shared service delivery—often referred to as “shared              is planned. Ohio Shared Services is expected to save
services,” “the cloud,” or “an enterprise approach”—              $30 million per year.52
allows organizations to purchase computer process-
ing and other IT functions as a service, rather than              Washington conducted an efficiency review and
invest in technological infrastructure. According to              determined that it could save between $6.6 million
the 2011 State CIO Survey conducted by NASCIO,                    and $9.7 million in IT infrastructure spending at the
the majority of service sharing and consolidation is              five agencies that participated in the review.53 Subse-
occurring in seven services: telecom, e-mail, data                quently, the governor signed a bill requiring the office
centers, security, backup and disaster recovery, serv-            of financial management, with the assistance of the
ers, and storage. In each more than 90 percent of state           department of information services, to identify $15
respondents had completed consolidation or were in                million in savings and to perform a statewide review
the process of doing so.46                                        of information technology best practices and gover-
                                                                  nance. The bill, Creating Efficiencies in the Use of
Washington has combined all or some back-office                   Technologies in State Government, became effective
functions of five formerly separate agencies into a               in June 2010.54 Similarly, the Virginia Governor’s
single Department of Enterprise Services agency.                  Commission on Government Reform and Restruc-
The consolidations could save $18 million over two                turing agreed to consolidate accounting and payroll
years and create a more responsive and efficient way              systems in September 2010.55
to deliver common services to other agencies. The
services include state payroll; human resources and               For states, the move to shared services is based on an

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                                                                            National Governors Association

understanding that IT can be an enabler in all policy ar-           lars in government, and overall quality of life. Those areas
eas. States can identify IT functions that are common to            align with the organization of the executive branch, and
several policy areas—for example, data systems—and                  Governor Snyder plans to present a summary of the dash-
implement shared services for those horizontal func-                board in each of his state of the state addresses.
tions. Implementing shared services goes beyond con-
solidation by moving services to a virtual environment.             Virginia uses a detailed, web-based system for monitor-
That can raise concerns about information security, but             ing the effectiveness of its state agencies.58 The system,
when states move to “the cloud,” for the most part they             called “Virginia Performs,” provides a range of infor-
are moving to a “private cloud” that includes strict se-            mation about an agency’s mission, most recent strategic
curity measures.                                                    plan, budget, and performance against a set of evalua-
                                                                    tion measures. The aim is to align specific state agency
As we have said, many states have already implement-                outcomes with larger statewide goals. The goals were
ed some shared services for state agencies and the ex-              set in 2004 through consensus between both branches
ecutive branch. But they can continue to make prog-                 of state government in an effort led by the Council on
ress by sharing services not just within the executive              Virginia’s Future, which brings together the executive,
branch but also with public universities and colleges               state legislators, and citizen and business leaders. The
and city and local governments. Minnesota’s Unified                 business community, in particular, wanted government
Communications and Collaboration service delivery                   and policy to focus on longer-term state goals.59
agreement encompasses all executive branch agencies
(which include over 30,000 employees), but other cus-               Washington Governor Chris Gregoire created the
tomers of the office of enterprise technology, including            Government Management and Accountability Program
local governments, cities, counties, and education enti-            (GMAP), an amalgam of measures looking at how state
ties, can choose to join in the agreement as well. Min-             agencies are performing, as well as how the state is do-
nesota further improved its UCC service by announcing               ing overall. GMAP was set up as a way for the governor
a partnership with Microsoft in September 2010, mak-                and her cabinet agencies to track spending and tie it to
ing Minnesota the first state to move all employees to a            performance.
cloud-based environment.56 Illinois implemented a pri-
vate cloud e-mail service capable of supporting all state           States’ efforts have been under way for several years
e-mail users. The net cost benefit or savings to the state          and span several key policy areas. According to the 2011
between fiscal years 2005 and 2010 has been more than               State CIO Survey conducted by NASCIO, 84 percent of
$13 million, with a total ROI of more than 86 percent.57            CIOs are now partnering with state program agencies
                                                                    such as health, education, and transportation.60 IT solu-
#2: Use IT to Measure and Improve                                   tions can help states measure performance across policy
Government Performance in Key Policy                                areas, including transportation, health care, education,
Areas                                                               economic development, public safety and emergency
States can make better decisions across policy areas                management, and human services.
by systematically collecting data, drawing intelligence
from it, and using it to be more accountable.                       #3: Engage Citizens in Service Delivery
                                                                    Using IT
Michigan Governor Rick Snyder unveiled a new website,               States can engage citizens in service delivery by en-
Michigan Dashboard, which allows the public to track                couraging public development of mobile applications.
Michigan’s progress in five key areas: economic growth,             Many states are doing so with social media and smart-
education, public health and safety, value for taxpayer dol-        phone applications. For example, states such as Ar-

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                                                                        National Governors Association

kansas, Florida, Illinois, Kansas, Kentucky, New                 for mobile devices that can be built around the data. 64
York, North Carolina, and Utah have launched state
social media strategies. In New York, the initiative,            As citizens seek to use technology to engage with
called Empire 2.0, is designed to promote participation          government, states can move beyond simply provid-
in government, increase collaboration, and expand the            ing online and mobile access and start to leverage
state’s ability to share information through the use of          networks of citizens to discover and deploy IT so-
Web 2.0, new media, and social-collaborative tools               lutions. At the city level, Code for America (CFA)
such as Facebook, Twitter, and wiki pages.61 Members             is a network that can provide an example to states
of the public can share their ideas about the state’s            of engaging tech-savvy citizens in improving service
new social networking strategy or any other policy or            delivery. Created in 2010 and modeled on Teach for
project through a new portal called New York State               America, Code for America places technology ex-
Tech Talk. The portal allows people to submit their              perts with city governments to deploy IT solutions
own ideas and vote up or down on ideas that others               in particular policy areas.65 The program works with
have submitted.62                                                city managers to identify projects that can benefit
                                                                 from web-based solutions. Code for America then
Arkansas Governor Mike Beebe and Kentucky Gov-                   recruits both the development teams and participat-
ernor Steve Beshear are also using social network-               ing cities through a competitive application process.
ing tools to keep citizens more informed. Governor               Once identified and funded, each city project is con-
Beebe’s office has Twitter and Facebook accounts                 nected with a web development team that can fur-
that alert citizens to media announcements and pro-              ther analyze the project, create an action plan, and
vide updates during emergencies.63 Governor Beshear              deliver an appropriate solution over an 11-month de-
also has a Twitter account and a YouTube channel with            velopment cycle. Throughout the development cycle,
over 200 captioned videos and recently launched an               CFA mentors, trains, and coordinates the teams and
official blog that will be a means to elaborate on policy        facilitates their relationships with their city manage-
positions.                                                       ment clients. In Boston, Code for America is working
                                                                 with the city to build an education services platform
Illinois Governor Pat Quinn has launched Twitter and             for developers to build applications that engage high
Flickr webpages to provide Illinois residents another            school students in educational and cultural activities
way to communicate with state government. The so-                in class, after school, and during the summer. Their
cial media websites will have regular updates of the             goal is to develop, from concept to delivery, a prod-
latest state news, videos, and tweets from the gover-            uct that can be used daily by 1.5 million people, and
nor. Social media are part of Governor Quinn’s efforts           to do so in nine months.66
to use technology as a way to make Illinois govern-
ment more transparent and accountable and to obtain              California is experimenting with using a network of
feedback and ideas from citizens throughout the state.           citizens to monitor water quality. The California Wa-
In 2009, was created to display            ter Resources Control Board has teamed with IBM to
public employee salaries, state contracts, inspection            create a new iPhone app that allows citizens to report
results, campaign finance disclosures, and other im-             on water quality concerns. The information from the
portant information. Early in 2012             app goes directly to the control board’s clean water
was established as a searchable database for state               team, which uploads it to a database. The applica-
agencies to inform citizens about the operation of state         tion was developed by IBM Research and is available
government and encourage the creative use of state in-           free at Apple’s App Store. The data reaches a central
formation, including the development of applications             database in real time and is accessible by authorities

                                                        page 9
                                                                                     National Governors Association

responsible for monitoring local water supplies. The                       Governors can take actions that spur coordination and
data will be used by the Water Quality Board as part                       boost the chances of success for their state’s IT initia-
of its overall water monitoring program. Many local                        tives. They can develop and implement an IT strategy
water boards do not have the capacity to monitor all                       that uses quick, short-term wins to cut costs and gain
the many creeks and streams in their jurisdiction.67                       momentum, while working toward the longer-term re-
                                                                           forms that create new and better ways to deliver gov-
Conclusion: The Fundamental                                                ernment services. They can continue to see technology
Role of IT Governance                                                      not only as a means for cutting costs, but also as an en-
Coordination across policy areas and between agen-                         abler of new models of service delivery and new ways
cies is essential to success in each of the IT action                      to collaborate across agencies and jurisdictions. Those
areas discussed above. It is critical to consolidation                     new ways of doing things will make possible faster and
and procurement, and perhaps especially, to shared                         more efficient decision making, will decrease the over-
services.                                                                  lap between agencies and jurisdictions, and ultimately
                                                                           will improve the delivery of services to citizens.

                                                                                                                               Erin Sparks

This report was developed by the National Governors Association (NGA) with input from NGA Corporate Fellows. The Corporate Fellows Program,
established in 1988, promotes the exchange of knowledge and expertise between the private sector and governors on public policy issues affecting
business and states. Special thanks to the following Corporate Fellow companies for their input: Accenture; ACS, A Xerox Company; Cisco; Dell;
Deloitte; ESRI; HP; IBM; Intel; MAXIMUS; Microsoft; Northrop Grumman; Oracle; SAS; and Verizon.

                                                                   page 10
                                                                                      National Governors Association

1.     National Governors Association and Association of State Budget Officers, Fiscal Survey of the States (Washington, DC: National Gov-
      ernors Association and National Association of State Budget Officers, 2010),
2.     Ibid.
3.    National Association of State Chief Information Officers, “A New C4 Agenda: Perspectives and Trends from State Government IT Lead-
      ers,” October 2011, 20,
4.    Matt Williams, “Utah Finishes Data Center Consolidation,” Government Technology, July 19, 2010,
      pcio/99261594.html (accessed November 15, 2011).
5.    National Association of State Chief Information Officers, “A New C4 Agenda,” 9.
6.    Pew Center on the States, States Buying Smarter: Lessons Learned from Minnesota and Virginia (Washington, D.C.: Pew Center on the
      States, May 2010).
7.    “Five Government Procurement Practices that Stifle Innovation,” Government Technology, November 8, 2011,
8.    Ibid.
9.    Mobi Thinking, “Global Mobile Statistics 2011: All Quality Mobile Marketing Research, Mobile Web Stats, Subscribers, Ad Revenue,
      Usage, Trends…,” (accessed November 15, 2011).
10.   National Association of State Chief Information Officers, “A New C4 Agenda,” 26.
11.   Technology CEO Council, “One Trillion Reasons: How Commercial Best Practices to Maximize Productivity Can Save Taxpayer Money
      and Enhance Government Services,” 2010,
12.   National Governors Association Center for Best Practices, Review of State Information Technology Consolidation Efforts (Washington,
      DC: National Governors Association Center for Best Practices, February 2006); includes matrix of state efforts.
13.    “2010 Digital States Survey,” Government Technology, September 28, 2010,
14.    Ibid.
15.   Michigan Department of Information Technology, Implementation of Consolidated IT Services,
16.   David B. Behen, “Multijurisdictional Collaboration: Initiatives at Play in Michigan,” Presentation at NASCIO 2011 Annual Conference, Den-
      ver, Colorado, October 4, 2011.
17.    Ibid.
18.   New York State Chief Information Officer, NYSeMail Migration Bulletin,
      letinVol2Issue1Final.pdf (accessed January 31, 2012).
19.   Computer World, “Top Green-IT Organizations: State of Indiana, No. 6,”
      (accessed February 1, 2012).
20.   “2010 Digital States Survey.” Government Technology.
21.   “IT Investment and Planning,”,
      ports (accessed January 31, 2012).
22.   Oregon Department of Administrative Services, Information Technology Asset Inventory and Management,
      EISPD/ITIP/docs/107-004-010.pdf (accessed January 31,2012).
23.   “IT Investment and Planning,”
24.   “ OMB: Improper payments drop in 2011,” Federal Times,
      QUISITION (accessed November 14, 2011).
25.   “Success Stories,” Payment Accuracy, (accessed November 14, 2011).
26.   “2010 Digital States Survey,” Government Technology.
27.   Correspondence with Christi Weigand, Consolidated Collections Unit Manager, Arizona Supreme Court, Court Services Division on 13 Febru-
      ary 2012.
28.   “2010 Digital States Survey,” Government Technology.
29.   Ibid.
30.   SAS Solution for Enterprise Data Analytics,
31.    IBM, Alameda County Social Services Agency Brings Business Values to Social Services, 2010,
32.   “Washington State Amps Fraud Detection with SAS® Social Network Analysis,”
33.   “The State of Missouri: A Project by Johnson Controls, Inc.,” Case Study, Frost and Sullivan,

                                                                    page 11
                                                                                    National Governors Association

34. Pew Center on the States, States Buying Smarter..
35. Accenture, “The First 100 Days—and Beyond: A Two Part Plan for Governing in the ‘New Normal’,”
36. Commission for a New Georgia, 2010 Status Report,
37. “Buy by Data,” Governing, January 2006,
38. “NC Procurement” website,
39. Robert. S. Metzger, “New Initiatives in State Procurement: The Oregon Experience,” presentation at NASPO 2010 Conference, San Francisco,
    April 20, 2010, .
40. Mobi Thinking, “Global Mobile Statistics 2011.”
41. International Telecommunications Union, “Strong Global Mobile Cellular Growth Predicted across All Regions and All Major Markets,” Feb-
    ruary 15, 2010,
42. National Association of State Chief Information Officers, “A New C4 Agenda,” 26.
43. See
44. “2010 Digital States Survey,” Government Technology.
45. “California DMV App Helps iPhone Users Avoid Long Lines,” Government Technology, (accessed
    February 1, 2012).
46. National Association of State Chief Information Officers, “A New C4 Agenda,” 15.
47. Office of Governor Chris Gregoire, “State Agency Consolidation Official,”
    76&newsType=1 (accessed January 31, 2012).
48. Darrell M. West, “Saving Money through the Cloud,” Brookings Institution. April 7. 2010,
    pers/2010/0407_cloud_computing_west/0407_cloud_computing_west.pdf .
49. National Association of State Chief Information Officers, “A New C4 Agenda,” 19.
50. Technology CEO Council, “One Trillion Reasons.”
51. Accenture, “The First 100 Days—and Beyond.”
52. National Association of State Chief Information Officers, “2010 State CIO Priorities,” November 2009.
53. Washington State Auditor’s Office, State Performance Review 2009, 7,
54. Washington HB 3178,
55. Anita Kumar, “Virginia Considers Four-Day Workweek to Save Money,”, September 14, 2010, http://www.washington-
56. “State of Minnesota Signs Historic Cloud Computing Agreement with Microsoft,” Press Release, State of Minnesota Office of Enterprise Tech-
    nology, September 27, 2010,
57. “2010 Digital States Survey,” Government Technology.
58. Virginia Performs webpage,
59. Jitinder Kohli, Golden Goals for Government Performance: Five Case Studies on How to Establish Goals to Achieve Results, Center for
    America Progress, February 2010,
60. National Association of State Chief Information Officers, “A New C4 Agenda,” 13.
61. State of New York Office for Technology, “New York State Continues Empire 2.0 Social Media Initiative,”
    SOCIAL_MEDIA_INITIATIVE.htm (accessed February 1, 2012).
62. New York Tech Talk, (accessed February 1, 2012).
63. Office of Arkansas Governor Mike Beebe, “Governor’s Communications Office Updates Now Available On Twitter,” http://www.governor. (accessed February 1, 2012).
64. Illinois Government News Network, “Illinois 2.0: Governor Quinn Launches New Social Media Websites,”
    leases/ShowPressRelease.cfm?SubjectID=3&RecNum=9508 (accessed February 12012.
65. “How an Army of Techies Is Taking on City Hall,” FastCompany.Com.
66. “The Boston Project,” Code for America, (accessed November 14, 2011).
67. “Made in IBM Labs: California State Water Control Board Partners with IBM to Improve Water Quality,” Press Release, IBM Newsroom,
    November 4, 2010,

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