SlideShare a Scribd company logo
1 of 51
Download to read offline
October 24, 2011

IT Innovation in the Federal
Government
ACT-IAC 2011 Executive Leadership
Conference
Presented by:
Rob Atkinson, President, ITIF
The Information Technology and Innovation Foundation (ITIF) is a
 Washington, D.C.-based think tank at the cutting edge of designing
 innovation policies and exploring how advances in information
 technology will create new opportunities to boost economic growth and
 improve quality of life. ITIF focuses on:


 Innovation processes, policy, and metrics
 E-commerce, e-government, e-voting, e-health
 IT and economic productivity
 Science policy related to economic growth
 Innovation and trade policy


                                                                         2
Today’s Presentation
 1    What’s the Challenge and Why Innovation is an Answer

 2    What is Innovation?

 3    Where’s the Federal Government?

 4    Why is Innovation So Difficult?

 5    What are the Federal Opportunities?

 6    Leading Innovation

                                                             3
What’s the Challenge?




                        4
What’s the Challenge?




                        5
What’s the Answer? Innovation
Innovation Can Cut Costs
    The Tech CEO Council estimates that better
     use of IT could save the federal government
     over $1 trillion by 2020
Innovation Can Boost Citizen Satisfaction




                                                   6
Today’s Presentation
 1    What’s the Challenge and Why Innovation is an Answer

 2    What is Innovation?

 3   Where’s the Federal Government?

 4    Why is Innovation So Difficult?

 5    What are the Federal Opportunities?

 6    Leading Innovation

                                                             7
What is Innovation?




                      8
Innovation is Different from Quality–and Comes in Different Degrees
                                modest                                                  radical
                                change
                                                      degree of change                 change

           Improving what
            you already do
                                                                                                  Creating new elements
                quality                                                                           of value and
              systems-centric                                                                     differentiation
              process-centric
        improvement-oriented
                                                                                                  innovation
                                                                                                  customer-centric
                                                                                                  design-based
                                Exploiting known                         Exploring unknown        creation-oriented
                                certainties                                     possibilities



                                  incremental           architectural    discontinuous            Degrees of innovation



  Incremental innovations                          Architectural innovations               Discontinuous innovations
              involve small                        involve incorporating new               occur when an advance is
        improvements to an                         technology and processes                so powerful, it makes old
existing product or process                        to change business                      products or processes
      to enhance efficiency.                       elements.                               obsolete

                                                                                                                          9
There are Ten Types of Innovation
 1. Business model                                       5. Product performance
    how the enterprise makes money                          basic features, performance and functionality

               2. Networking                                              6. Product system
                  enterprise’s structure/                                    extended system that surrounds an offering
                  value chain
                                                                                     7. Service
                                                                                        how you service your customers


   Finance                        Process.                Offering                                Delivery
   Business      Networking       Enabling     Core       Service/prod.   Svc/prod    Service     Channel   Brand   Customer
   model                          process      process    performance     system                                    experience



                                                                               8. Channel
                                                                                  how you connect your offerings
  3. Enabling process                                                             to your customers
     assembled capabilities
                                                                                                9. Brand
                                                                                                   how you express your offering’s
                     4. Core process                                                               benefit to customers
                        proprietary processes that add value

                                                                               10. Customer experience
                                                                                   how you create an overall
“Ten types of Innovation” by Larry Keeley/Doblin Inc.                              experience for customers

                                                                                                                                     10
What Are the Consequences of Not Innovating?
1. Failure to meet rising customer expectations.

2. Risk of losing the best talent.

3. Risk of losing new revenue opportunities.

4. Risk of getting “Baumol’s Disease” (low productivity, high
   costs).




                                                                11
Today’s Presentation
 1    What’s the Challenge and Why Innovation is an Answer

 2    What is Innovation?

 3    Where’s the Federal Government?

 4    Why is Innovation So Difficult?

 5    What are the Federal Opportunities?

 6    Leading Innovation

                                                             12
Federal IT Challenges
 Customer-facing challenges:
  Too many web sites still hard to use
  Too many web sites still organized around agencies and
   bureaus




                                                            13
Users Rate E-gov Websites Lower Than E-commerce Sites

   8.4
                                                                                                                                 E-Government/Agency
   8.2
                                                                                             8.146                               E-Business/Company
      8
   7.8                                          7.78

   7.6                    7.679                                        7.704



   7.4                                  7.484
                                                                                                                    7.449

                                                               7.382                 7.391
   7.2            7.279

      7                                                                                                     6.995

   6.8
   6.6
   6.4
                Customization           Organization           Navigation        Overall Statisfaction   Comparison to Ideal

Source: Forrest V. Morgeson III and Sunil Mithas. Does E-Government Measure Up to E-Business? Comparing End User Perceptions of U.S. Federal
Government and E-Business Web Sites. (Public Administration Review, 2009).
The Range of Satisfaction is Higher for E-gov Sites
   10


                                                                                                                              E-Government/Agency

                                                                                                                              E-Business/Company
    9


                                                                                                  8.7


                                                                                 8.2
    8
                                          7.9




    7


                        6.6


    6
Source: Forrest V. Morgeson III and Sunil Mithas. Does E-Government Measure Up to E-Business? Comparing End User Perceptions of U.S. Federal
Government and E-Business Web Sites. (Public Administration Review, 2009).
Federal IT Challenges
 Customer-facing challenges:
  Too many web sites still hard to use
  Too many web sites still organized around agencies and bureaus

 Internal Challenges:
  Considerable duplication of applications instead of
    widespread shared services
  Gap (growing?) between commercial best practice and
    current government practice (e.g. slow to move to the
    cloud).




                                                                    16
Federal IT Challenges
 Customer-facing challenges:
  Too many web sites still hard to use
  Too many web sites still organized around agencies and bureaus

 Internal Challenges:
  Considerable duplication of applications instead of widespread
    shared services
  Gap (growing?) between commercial best practice and current
    government practice (e.g. slow to move to the cloud).

 Overall Challenge:
  No systemic focus on driving automation and productivity


                                                                    17
Today’s Presentation
 1    What’s the Challenge and Why Innovation is an Answer

 2    What is Innovation?

 3    Where’s the Federal Government?

 4    Why is Innovation So Difficult?

 5    What are the Federal Opportunities?

 6    Leading Innovation

                                                             18
Innovation is Challenging, Rare, and Often Frightening

         Hey, let’s
         innovate!




                                                         19
Innovation Isn’t Easy – Some Puzzles to Ponder
Why didn’t IBM keep the operating system?
Why didn’t Microsoft create the browser?
Why didn’t AT&T create AOL?
Why didn’t American Airlines create
Southwest?
Why didn’t Citibank create PayPal?
Why didn’t Blockbuster create Netflix?
Why didn’t Sam Goody’s create iTunes?
  It takes effort to stand in the future and see new
   possibilities.
  Just because you’re not willing to disrupt your own
   business, doesn’t mean someone else isn’t willing to
   do it for you.

                                                          20
The Innovator’s Challenge is to Exploit and Explore Simultaneously
                                                                           Game-Changing Innovations

                            exploit                                                                                 explore
                                      Incremental                 Architectural                     Discontinuous
Research




                  Typically found within your core business     Originate from discovery-oriented activities
           Originate from continuous improvement efforts        Often found at the margins of your core business



                        Enabled through OTS components          May require significant enabling technologies
                                                                May require coordination across lines of business
Dev




             Implemented within a current line of business
           External partnerships, if any, are straightforward   Often require major external partnerships
Funding




                    Fit within your existing business model     May run counter to your current business model
                                ROI is modest but clear-cut     ROI is uncertain but upside potential is significant




                                                                                                                              21
IT Investment is Necessary




                             22
National Governments Invest More in IT
                          IT$/Share of Revenue
           9
           8
           7
           6
           5
           4
           3
           2
           1
           0
                  National governments     Average


Source: Gartner, 2011
                                                     23
National Governments Invest More in IT
                                IT$/per Worker
           15,000
           14,500
           14,000
           13,500
           13,000
           12,500
           12,000
           11,500
                        National governments     Average


Source: Gartner, 2011
                                                           24
Installed TB per Employee
 0.4
0.35
 0.3
0.25
 0.2
       0.35
              0.32
0.15
                     0.26

 0.1
                            0.13   0.13
0.05                                      0.11
                                                 0.08   0.08
                                                               0.06     0.06   0.06   0.05
                                                                                             0.02   0.01
  0




                                                                      Source: Rubin Worldwide, 2011
But Money is Not Enough
 Firms that adopt digital organization tenets and simultaneously
  invest more in IT have disproportionately higher performance
  than firms that do not.
 MIT’s Erik Brynjolfsson: “Something unique happens when
  human capital and other workplace practices are combined
  with technology.”




                                                                    26
Organizational Change is Also Required
A distinct corporate culture and organizational practices
are found in most corporations that make extensive use of
IT and the Internet. They:
1.   Move from paper-based to digital business processes
2.   Empower front line service personnel
3.   Foster open information access
4.   Link incentives to performance
5.   Maintain focus and communicate goals
6.   Hire the best people
7.   Invest in human capital
                                            Erik Brynjolffson

                                                                27
Higher Profitability Accrues to Firms That Get Both Right

     Profitability




                                                            28
McKinsey Finds the Same Result
                                             % increase in total productivity


75th
                    +
percentile                                                                              There are productivity
and above                                     +8%                   +20%                 gains from simply
             Management practice score




                                                                                         automating processes.
                                                                                        Yet the biggest
                                                                                         productivity gains are
                                                                                         achieved when IT
                                                                                         investments are
                                                 0                   +2%                 combined with changes
25th                                                                                     in business practices.
percentile
and below                                                                              This is hard and takes
                              _               Intensity of IT Deployment            +   lots of time and effort.
                                         25th percentile          75th percentile
                                         and below                and above
Source: LSE – McKinsey survey and analysis of 100 US, UK, French, German companies, 1994-2002

                                                                                                                   29
As Does Rubin Worldwide




                          30
So Where is the Federal Government?
    Profitability




                                      31
USG = Japanese Enterprises?




                 =

                              32
IT investment by asset in OECD countries, 2007,
percent of non-residential capital formation
 30




 25




 20




 15




 10




 5




 0




               Software   Communication equipment   IT equipment




                                                                   33
Today’s Presentation
 1    What’s the Challenge and Why Innovation is an Answer

 2    What is Innovation?

 3   Where’s the Federal Government?

 4    Why is Innovation So Difficult?

 5    What are the Federal Opportunities?

 6    Leading Innovation

                                                             34
Opportunities
Data-driven policy




                     35
Opportunities
Data-driven policy

IT platforms




                     36
Opportunities
Data-driven policy

IT platforms

Partnerships




                     37
Partner with Private Sector:

Partnership




                               38
Partner with private sector:

Partnership




Go it alone




                               39
Opportunities
Data-driven policy

IT platforms

Partnerships

Automation




                     40
IT Impacts on Public Sector Capabilities
(positive – negative impacts)


        120

        100

          80

          60

          40

          20

             0
                        Improved              Staff Reduction Data access                                  Control
                         Services


Source: Anderson, Henriksen, Medaglia, Danzinger, Sannarnes, and Enemaerke. Fads and Facts of E-Government: A Review of the Impacts
of E-government (2003-2009), International Journal of Public Administration, 2010


                                                                                                                                      41
Today’s Presentation
 1   What’s the Challenge and Why Innovation is an Answer

 2    What is Innovation?

 3   Where’s the Federal Government?

 4    Why is Innovation So Difficult?

 5    What are the Federal Opportunities?

 6    Leading Innovation

                                                            42
What’s Different About this New Management Style?
 2000s leadership style            The new leadership paradigm
 Rarely talk about innovation      Speak candidly about
 No innovation definition or        innovation challenges
  metrics                           Clear definition of risks and
 No leadership time spent on        rewards
  innovation                        Leaders spend hands-on time
 Leadership style is directive:    Inspiration and collaboration:
  “Make it happen”                   “We can do it”




                                                                      43
Managers Must Lead Innovation Differently




Created a strategic design                         Implemented a
capability in every BU   Measures BU leaders on      Run/Grow/Transform
                         “courage” to drive out-year strategy
Requires that 50% of new revenue growth
innovations come from
outside the company      Uses Six Sigma (quality)
                         savings to fund innovation
                         investments


                                                                          44
Poll Question:

What Should the Role of Federal CIOs Be?
 1. Steward
 2. Strategist
 3. Revolutionary




                                           45
IT Executive’s View of the Role of Their CIO
         50
         45
         40
         35
         30
         25
         20
         15
         10
          5
          0
                   Steward           Strategist      Revolutionary

Deloitte: September, 2011 (survey of 1000 IT executives: How do you view your
CIO?
                                                                                46
Can the Government Learn to Fail Fast?




                                         47
Companies Can




                48
“We have to strike the right balance between
being in touch and being in control. The
irony is that the more in control we are, the
more out of touch we become.”

- A.G. Lafley, CEO Proctor and Gamble



                                                49
Striking the Right Balance
 Successful innovation requires marrying Passion, Permission, and Protocols

Senior management:
 •Declares an innovation intent                                          The organization:
 •Sets conditions for innovation          Permission                     • Establishes processes to
                                                                           support innovation.
                                                             Processes
                                                        success
                                                         zone


Your people:
 • Have the passion, they just need the       Passion
   proper channels to unleash it.




                                                                                                      50
Thank You
Robert Atkinson ratkinson@itif.org

            Follow ITIF:
      facebook.com/innovationpolicy
      www.innovationpolicy.org
      www.youtube.com/user/techpolicy
      www.itif.org
      Twitter: @robatkinsonitif

More Related Content

What's hot

George Coulston - Kennametal's Innovation Journey
George Coulston - Kennametal's Innovation JourneyGeorge Coulston - Kennametal's Innovation Journey
George Coulston - Kennametal's Innovation JourneyCincinnati Innovation
 
2012 February dama chicago
2012 February dama chicago2012 February dama chicago
2012 February dama chicagodmurph4
 
Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...
Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...
Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...Craig Jordan
 
Integrated Customer Innovation
Integrated Customer InnovationIntegrated Customer Innovation
Integrated Customer Innovationmaikellieste
 
Doosoun company profile_eng_201201_v0.3
Doosoun company profile_eng_201201_v0.3Doosoun company profile_eng_201201_v0.3
Doosoun company profile_eng_201201_v0.3fipocni
 
NineSigma presentation September 2012
NineSigma presentation September 2012NineSigma presentation September 2012
NineSigma presentation September 2012MarcelZillig
 
Corporate presentation deck (en) 1.8 detail
Corporate presentation deck (en) 1.8  detailCorporate presentation deck (en) 1.8  detail
Corporate presentation deck (en) 1.8 detailBICorporate
 
Business model canvas_steve_blank_cleantech_open_academy_2012
Business model canvas_steve_blank_cleantech_open_academy_2012Business model canvas_steve_blank_cleantech_open_academy_2012
Business model canvas_steve_blank_cleantech_open_academy_2012CleantechOpen
 
Constellation's Sneak Peak Into Social Business Trends
Constellation's Sneak Peak Into Social Business TrendsConstellation's Sneak Peak Into Social Business Trends
Constellation's Sneak Peak Into Social Business TrendsR "Ray" Wang
 
UX Strategy as told by the paintings of Jan Steen
UX Strategy as told by the paintings of Jan SteenUX Strategy as told by the paintings of Jan Steen
UX Strategy as told by the paintings of Jan SteenJonathan Arnowitz
 
Dan perron lim
Dan perron limDan perron lim
Dan perron limsdeconf
 
The Business Analysts Role in Agile Software Development
The Business Analysts Role in Agile Software DevelopmentThe Business Analysts Role in Agile Software Development
The Business Analysts Role in Agile Software Developmentallan kelly
 
Ass. Prof. Ozge Ozgen - Managing through excellence
Ass. Prof. Ozge Ozgen - Managing through excellenceAss. Prof. Ozge Ozgen - Managing through excellence
Ass. Prof. Ozge Ozgen - Managing through excellenceThemistocles Papadimopoulos
 
It is the IT world
It is the IT worldIt is the IT world
It is the IT worldStephan Katz
 
Roel Berkhout - Philips Industry Consulting
Roel Berkhout - Philips Industry ConsultingRoel Berkhout - Philips Industry Consulting
Roel Berkhout - Philips Industry ConsultingThemadagen
 
Achieving agility at_scale-martin_nally
Achieving agility at_scale-martin_nallyAchieving agility at_scale-martin_nally
Achieving agility at_scale-martin_nallyIBM
 
Lean Startup Essentials - Le Camping Edition
Lean Startup Essentials - Le Camping EditionLean Startup Essentials - Le Camping Edition
Lean Startup Essentials - Le Camping EditionLukas Fittl
 
Consulting toolkit creating a workplan
Consulting toolkit   creating a workplanConsulting toolkit   creating a workplan
Consulting toolkit creating a workplanchrisdoran
 

What's hot (20)

George Coulston - Kennametal's Innovation Journey
George Coulston - Kennametal's Innovation JourneyGeorge Coulston - Kennametal's Innovation Journey
George Coulston - Kennametal's Innovation Journey
 
2012 February dama chicago
2012 February dama chicago2012 February dama chicago
2012 February dama chicago
 
Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...
Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...
Camp It, June 2012, How To Design Your Bi Architecture To Capitalize on New T...
 
Integrated Customer Innovation
Integrated Customer InnovationIntegrated Customer Innovation
Integrated Customer Innovation
 
Doosoun company profile_eng_201201_v0.3
Doosoun company profile_eng_201201_v0.3Doosoun company profile_eng_201201_v0.3
Doosoun company profile_eng_201201_v0.3
 
NineSigma presentation September 2012
NineSigma presentation September 2012NineSigma presentation September 2012
NineSigma presentation September 2012
 
Corporate presentation deck (en) 1.8 detail
Corporate presentation deck (en) 1.8  detailCorporate presentation deck (en) 1.8  detail
Corporate presentation deck (en) 1.8 detail
 
Business model canvas_steve_blank_cleantech_open_academy_2012
Business model canvas_steve_blank_cleantech_open_academy_2012Business model canvas_steve_blank_cleantech_open_academy_2012
Business model canvas_steve_blank_cleantech_open_academy_2012
 
Constellation's Sneak Peak Into Social Business Trends
Constellation's Sneak Peak Into Social Business TrendsConstellation's Sneak Peak Into Social Business Trends
Constellation's Sneak Peak Into Social Business Trends
 
UX Strategy as told by the paintings of Jan Steen
UX Strategy as told by the paintings of Jan SteenUX Strategy as told by the paintings of Jan Steen
UX Strategy as told by the paintings of Jan Steen
 
Dan perron lim
Dan perron limDan perron lim
Dan perron lim
 
1 collaboration sessions-introduction-sagmon
1 collaboration sessions-introduction-sagmon1 collaboration sessions-introduction-sagmon
1 collaboration sessions-introduction-sagmon
 
The Business Analysts Role in Agile Software Development
The Business Analysts Role in Agile Software DevelopmentThe Business Analysts Role in Agile Software Development
The Business Analysts Role in Agile Software Development
 
Ass. Prof. Ozge Ozgen - Managing through excellence
Ass. Prof. Ozge Ozgen - Managing through excellenceAss. Prof. Ozge Ozgen - Managing through excellence
Ass. Prof. Ozge Ozgen - Managing through excellence
 
It is the IT world
It is the IT worldIt is the IT world
It is the IT world
 
Roel Berkhout - Philips Industry Consulting
Roel Berkhout - Philips Industry ConsultingRoel Berkhout - Philips Industry Consulting
Roel Berkhout - Philips Industry Consulting
 
Achieving agility at_scale-martin_nally
Achieving agility at_scale-martin_nallyAchieving agility at_scale-martin_nally
Achieving agility at_scale-martin_nally
 
Hensley
HensleyHensley
Hensley
 
Lean Startup Essentials - Le Camping Edition
Lean Startup Essentials - Le Camping EditionLean Startup Essentials - Le Camping Edition
Lean Startup Essentials - Le Camping Edition
 
Consulting toolkit creating a workplan
Consulting toolkit   creating a workplanConsulting toolkit   creating a workplan
Consulting toolkit creating a workplan
 

Viewers also liked

Litle Partner Program
Litle Partner ProgramLitle Partner Program
Litle Partner Programmattm37217
 
Cyclical v. Structural Changes (A Jobless Recovery)
Cyclical v. Structural Changes (A Jobless Recovery)Cyclical v. Structural Changes (A Jobless Recovery)
Cyclical v. Structural Changes (A Jobless Recovery)Luis Taveras EMBA, MS
 
Job Market Update - September, 2015
Job Market Update - September, 2015Job Market Update - September, 2015
Job Market Update - September, 2015Adecco Staffing, USA
 

Viewers also liked (20)

Job recovery in times of constrained public finances
Job recovery in times of constrained public financesJob recovery in times of constrained public finances
Job recovery in times of constrained public finances
 
Macroeconomic policy and employment flows
Macroeconomic policy and employment flowsMacroeconomic policy and employment flows
Macroeconomic policy and employment flows
 
Litle Partner Program
Litle Partner ProgramLitle Partner Program
Litle Partner Program
 
Policies for a sustainable labour market recovery
Policies for a sustainable labour market recoveryPolicies for a sustainable labour market recovery
Policies for a sustainable labour market recovery
 
How to make the recovery sustainable?
How to make the recovery sustainable?How to make the recovery sustainable?
How to make the recovery sustainable?
 
Cyclical v. Structural Changes (A Jobless Recovery)
Cyclical v. Structural Changes (A Jobless Recovery)Cyclical v. Structural Changes (A Jobless Recovery)
Cyclical v. Structural Changes (A Jobless Recovery)
 
The need for paid sick days
The need for paid sick daysThe need for paid sick days
The need for paid sick days
 
Services Innovation Policy in the United States
Services Innovation Policy in the United StatesServices Innovation Policy in the United States
Services Innovation Policy in the United States
 
The Whole Picture: Where America’s Broadband Networks Really Stand
The Whole Picture: Where America’s Broadband Networks Really StandThe Whole Picture: Where America’s Broadband Networks Really Stand
The Whole Picture: Where America’s Broadband Networks Really Stand
 
Taxation of Intangibles: Implications for Growth, Jobs and Competitiveness
Taxation of Intangibles: Implications for Growth, Jobs and CompetitivenessTaxation of Intangibles: Implications for Growth, Jobs and Competitiveness
Taxation of Intangibles: Implications for Growth, Jobs and Competitiveness
 
Overcoming the Challenges to Global Innovation
Overcoming the Challenges to Global InnovationOvercoming the Challenges to Global Innovation
Overcoming the Challenges to Global Innovation
 
Revitalizing U.S. Manufacturing: What Has to Happen
Revitalizing U.S. Manufacturing: What Has to HappenRevitalizing U.S. Manufacturing: What Has to Happen
Revitalizing U.S. Manufacturing: What Has to Happen
 
Worse Than the Great Depression: What the Experts Are Missing About American ...
Worse Than the Great Depression: What the Experts Are Missing About American ...Worse Than the Great Depression: What the Experts Are Missing About American ...
Worse Than the Great Depression: What the Experts Are Missing About American ...
 
Three Pillars for ITS Development
Three Pillars for ITS DevelopmentThree Pillars for ITS Development
Three Pillars for ITS Development
 
CES-GMU Workshop on Internationalization & Competitiveness
CES-GMU Workshop on Internationalization & CompetitivenessCES-GMU Workshop on Internationalization & Competitiveness
CES-GMU Workshop on Internationalization & Competitiveness
 
Staff and alumni of EPI
Staff and alumni of EPIStaff and alumni of EPI
Staff and alumni of EPI
 
Ows test
Ows testOws test
Ows test
 
Why America Needs a National Network for Manufacturing Innovation
Why America Needs a National Network for Manufacturing InnovationWhy America Needs a National Network for Manufacturing Innovation
Why America Needs a National Network for Manufacturing Innovation
 
Innovation and Productivity: What’s the Relationship and How Does it Happen?
Innovation and Productivity: What’s the Relationship and How Does it Happen?Innovation and Productivity: What’s the Relationship and How Does it Happen?
Innovation and Productivity: What’s the Relationship and How Does it Happen?
 
Job Market Update - September, 2015
Job Market Update - September, 2015Job Market Update - September, 2015
Job Market Update - September, 2015
 

Similar to IT Innovation in the Federal Government

Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...
Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...
Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...Cielo
 
D4 I Framework Web
D4 I Framework WebD4 I Framework Web
D4 I Framework WebIain Sanders
 
Enabling Innovation: A Strength In Any Economy
Enabling Innovation: A Strength In Any EconomyEnabling Innovation: A Strength In Any Economy
Enabling Innovation: A Strength In Any EconomyPhil McKinney
 
Innovation for Start-ups
Innovation for Start-upsInnovation for Start-ups
Innovation for Start-upsKesava Reddy
 
Gamechangers - Innovations That Makes Life Better
Gamechangers - Innovations That Makes Life BetterGamechangers - Innovations That Makes Life Better
Gamechangers - Innovations That Makes Life BetterInnovation Excellence
 
Corporate innovation a basic premise by devasis chattopadhyay
Corporate innovation   a basic premise by devasis chattopadhyayCorporate innovation   a basic premise by devasis chattopadhyay
Corporate innovation a basic premise by devasis chattopadhyayDevasis Chattopadhyay
 
Corporate innovation a basic premise by devasis chattopadhyay
Corporate innovation   a basic premise by devasis chattopadhyayCorporate innovation   a basic premise by devasis chattopadhyay
Corporate innovation a basic premise by devasis chattopadhyayDevasis Chattopadhyay
 
Idea management systems drive competitiveness
Idea management systems drive competitivenessIdea management systems drive competitiveness
Idea management systems drive competitivenessGunnar Oskarsson
 
04 enkel key note_day 1_ecc2012
04 enkel key note_day 1_ecc201204 enkel key note_day 1_ecc2012
04 enkel key note_day 1_ecc2012ClusterExcellence
 
Competing with IT 15 March 13
Competing with IT 15 March 13Competing with IT 15 March 13
Competing with IT 15 March 13Lead & Transform
 
What are innovation audits
What are innovation auditsWhat are innovation audits
What are innovation auditsChris Mobbs
 
Innovating processes
Innovating processesInnovating processes
Innovating processesSuneeth Roy
 
Overcoming Innovation Barriers
Overcoming Innovation BarriersOvercoming Innovation Barriers
Overcoming Innovation BarriersAvalon Consulting
 
IBM Collaborative Innovation Platform - ThinkPlace
IBM Collaborative Innovation Platform - ThinkPlaceIBM Collaborative Innovation Platform - ThinkPlace
IBM Collaborative Innovation Platform - ThinkPlaceKapil Gupta
 
Webinar1 dornberger giz_final
Webinar1 dornberger giz_finalWebinar1 dornberger giz_final
Webinar1 dornberger giz_finalbfnd
 
Lean Start Up - Jurgita Sarkovaite
Lean Start Up - Jurgita SarkovaiteLean Start Up - Jurgita Sarkovaite
Lean Start Up - Jurgita SarkovaiteNeo Consulting
 
Cyr krameratc2011
Cyr krameratc2011Cyr krameratc2011
Cyr krameratc2011nado-web
 

Similar to IT Innovation in the Federal Government (20)

MSIG Innovation
MSIG InnovationMSIG Innovation
MSIG Innovation
 
Innovation Update Mercosur
Innovation Update Mercosur Innovation Update Mercosur
Innovation Update Mercosur
 
Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...
Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...
Pinstripe Healthcare Presents Transformative Hiring Change Your Game for Bett...
 
D4 I Framework Web
D4 I Framework WebD4 I Framework Web
D4 I Framework Web
 
Enabling Innovation: A Strength In Any Economy
Enabling Innovation: A Strength In Any EconomyEnabling Innovation: A Strength In Any Economy
Enabling Innovation: A Strength In Any Economy
 
Innovation for Start-ups
Innovation for Start-upsInnovation for Start-ups
Innovation for Start-ups
 
Gamechangers - Innovations That Makes Life Better
Gamechangers - Innovations That Makes Life BetterGamechangers - Innovations That Makes Life Better
Gamechangers - Innovations That Makes Life Better
 
Corporate innovation a basic premise by devasis chattopadhyay
Corporate innovation   a basic premise by devasis chattopadhyayCorporate innovation   a basic premise by devasis chattopadhyay
Corporate innovation a basic premise by devasis chattopadhyay
 
Corporate innovation a basic premise by devasis chattopadhyay
Corporate innovation   a basic premise by devasis chattopadhyayCorporate innovation   a basic premise by devasis chattopadhyay
Corporate innovation a basic premise by devasis chattopadhyay
 
Idea management systems drive competitiveness
Idea management systems drive competitivenessIdea management systems drive competitiveness
Idea management systems drive competitiveness
 
Innovative leadership.pptx
Innovative leadership.pptxInnovative leadership.pptx
Innovative leadership.pptx
 
04 enkel key note_day 1_ecc2012
04 enkel key note_day 1_ecc201204 enkel key note_day 1_ecc2012
04 enkel key note_day 1_ecc2012
 
Competing with IT 15 March 13
Competing with IT 15 March 13Competing with IT 15 March 13
Competing with IT 15 March 13
 
What are innovation audits
What are innovation auditsWhat are innovation audits
What are innovation audits
 
Innovating processes
Innovating processesInnovating processes
Innovating processes
 
Overcoming Innovation Barriers
Overcoming Innovation BarriersOvercoming Innovation Barriers
Overcoming Innovation Barriers
 
IBM Collaborative Innovation Platform - ThinkPlace
IBM Collaborative Innovation Platform - ThinkPlaceIBM Collaborative Innovation Platform - ThinkPlace
IBM Collaborative Innovation Platform - ThinkPlace
 
Webinar1 dornberger giz_final
Webinar1 dornberger giz_finalWebinar1 dornberger giz_final
Webinar1 dornberger giz_final
 
Lean Start Up - Jurgita Sarkovaite
Lean Start Up - Jurgita SarkovaiteLean Start Up - Jurgita Sarkovaite
Lean Start Up - Jurgita Sarkovaite
 
Cyr krameratc2011
Cyr krameratc2011Cyr krameratc2011
Cyr krameratc2011
 

More from Information Technology and Innovation Foundation

More from Information Technology and Innovation Foundation (19)

How Oregon Can Win In The New Global Innovation Economy
How Oregon Can Win In The New Global Innovation EconomyHow Oregon Can Win In The New Global Innovation Economy
How Oregon Can Win In The New Global Innovation Economy
 
Revitalizing U.S. Manufacturing: What’s It Going To Take?
Revitalizing U.S. Manufacturing: What’s It Going To Take?Revitalizing U.S. Manufacturing: What’s It Going To Take?
Revitalizing U.S. Manufacturing: What’s It Going To Take?
 
Advanced Manufacturing: Today, Tomorrow, and Beyond
Advanced Manufacturing: Today, Tomorrow, and BeyondAdvanced Manufacturing: Today, Tomorrow, and Beyond
Advanced Manufacturing: Today, Tomorrow, and Beyond
 
Why America Needs a National Network for Manufacturing Innovation
Why America Needs a National Network for Manufacturing InnovationWhy America Needs a National Network for Manufacturing Innovation
Why America Needs a National Network for Manufacturing Innovation
 
The Whole Picture: Where America’s Broadband Networks Really Stand
The Whole Picture: Where America’s Broadband Networks Really StandThe Whole Picture: Where America’s Broadband Networks Really Stand
The Whole Picture: Where America’s Broadband Networks Really Stand
 
Leadership in Decline: Assessing U.S. International Competitiveness in Biomed...
Leadership in Decline: Assessing U.S. International Competitiveness in Biomed...Leadership in Decline: Assessing U.S. International Competitiveness in Biomed...
Leadership in Decline: Assessing U.S. International Competitiveness in Biomed...
 
Innovation in Manufacturing: Driving Growth and Competitiveness
Innovation in Manufacturing: Driving Growth and CompetitivenessInnovation in Manufacturing: Driving Growth and Competitiveness
Innovation in Manufacturing: Driving Growth and Competitiveness
 
Copyright Technology 101
Copyright Technology 101Copyright Technology 101
Copyright Technology 101
 
Biotechnology, Chemistry, and the Nine Billion
Biotechnology, Chemistry, and the Nine BillionBiotechnology, Chemistry, and the Nine Billion
Biotechnology, Chemistry, and the Nine Billion
 
Explaining the Great Recession and Anemic Job Recovery: The Role of Falterin...
Explaining the Great Recession and Anemic  Job Recovery: The Role of Falterin...Explaining the Great Recession and Anemic  Job Recovery: The Role of Falterin...
Explaining the Great Recession and Anemic Job Recovery: The Role of Falterin...
 
Myths and Realities of the Internet Era
Myths and Realities of the Internet EraMyths and Realities of the Internet Era
Myths and Realities of the Internet Era
 
Embracing the Self-Service Economy
Embracing the Self-Service EconomyEmbracing the Self-Service Economy
Embracing the Self-Service Economy
 
Crafting the Trans-Pacific Partnership as a True Model 21st Century Trade Agr...
Crafting the Trans-Pacific Partnership as a True Model 21st Century Trade Agr...Crafting the Trans-Pacific Partnership as a True Model 21st Century Trade Agr...
Crafting the Trans-Pacific Partnership as a True Model 21st Century Trade Agr...
 
Patent Boxes: Innovation in Tax Policy and Tax Policy for Innovation
Patent Boxes: Innovation in Tax Policy and Tax Policy for InnovationPatent Boxes: Innovation in Tax Policy and Tax Policy for Innovation
Patent Boxes: Innovation in Tax Policy and Tax Policy for Innovation
 
The Case for a National Manufacturing Strategy
The Case for a National Manufacturing StrategyThe Case for a National Manufacturing Strategy
The Case for a National Manufacturing Strategy
 
U.S. Corporate Tax Reform: Groupthink or Rational Debate?
U.S. Corporate Tax Reform: Groupthink or Rational Debate?U.S. Corporate Tax Reform: Groupthink or Rational Debate?
U.S. Corporate Tax Reform: Groupthink or Rational Debate?
 
Atlantic Century II: Benchmarking EU &U.S. Innovation and Competitiveness
Atlantic Century II: Benchmarking EU &U.S. Innovation and CompetitivenessAtlantic Century II: Benchmarking EU &U.S. Innovation and Competitiveness
Atlantic Century II: Benchmarking EU &U.S. Innovation and Competitiveness
 
The Case for Incentives in the U.S. Corporate Tax Code
The Case for Incentives in the U.S. Corporate Tax CodeThe Case for Incentives in the U.S. Corporate Tax Code
The Case for Incentives in the U.S. Corporate Tax Code
 
The Race for Global Innovation Advantage and U.S. Economic Prospects
The Race for Global Innovation Advantage and U.S. Economic ProspectsThe Race for Global Innovation Advantage and U.S. Economic Prospects
The Race for Global Innovation Advantage and U.S. Economic Prospects
 

Recently uploaded

Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 

Recently uploaded (20)

Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 

IT Innovation in the Federal Government

  • 1. October 24, 2011 IT Innovation in the Federal Government ACT-IAC 2011 Executive Leadership Conference Presented by: Rob Atkinson, President, ITIF
  • 2. The Information Technology and Innovation Foundation (ITIF) is a Washington, D.C.-based think tank at the cutting edge of designing innovation policies and exploring how advances in information technology will create new opportunities to boost economic growth and improve quality of life. ITIF focuses on:  Innovation processes, policy, and metrics  E-commerce, e-government, e-voting, e-health  IT and economic productivity  Science policy related to economic growth  Innovation and trade policy 2
  • 3. Today’s Presentation 1 What’s the Challenge and Why Innovation is an Answer 2 What is Innovation? 3 Where’s the Federal Government? 4 Why is Innovation So Difficult? 5 What are the Federal Opportunities? 6 Leading Innovation 3
  • 6. What’s the Answer? Innovation Innovation Can Cut Costs  The Tech CEO Council estimates that better use of IT could save the federal government over $1 trillion by 2020 Innovation Can Boost Citizen Satisfaction 6
  • 7. Today’s Presentation 1 What’s the Challenge and Why Innovation is an Answer 2 What is Innovation? 3 Where’s the Federal Government? 4 Why is Innovation So Difficult? 5 What are the Federal Opportunities? 6 Leading Innovation 7
  • 9. Innovation is Different from Quality–and Comes in Different Degrees modest radical change degree of change change Improving what you already do Creating new elements quality of value and systems-centric differentiation process-centric improvement-oriented innovation customer-centric design-based Exploiting known Exploring unknown creation-oriented certainties possibilities incremental architectural discontinuous Degrees of innovation Incremental innovations Architectural innovations Discontinuous innovations involve small involve incorporating new occur when an advance is improvements to an technology and processes so powerful, it makes old existing product or process to change business products or processes to enhance efficiency. elements. obsolete 9
  • 10. There are Ten Types of Innovation 1. Business model 5. Product performance how the enterprise makes money basic features, performance and functionality 2. Networking 6. Product system enterprise’s structure/ extended system that surrounds an offering value chain 7. Service how you service your customers Finance Process. Offering Delivery Business Networking Enabling Core Service/prod. Svc/prod Service Channel Brand Customer model process process performance system experience 8. Channel how you connect your offerings 3. Enabling process to your customers assembled capabilities 9. Brand how you express your offering’s 4. Core process benefit to customers proprietary processes that add value 10. Customer experience how you create an overall “Ten types of Innovation” by Larry Keeley/Doblin Inc. experience for customers 10
  • 11. What Are the Consequences of Not Innovating? 1. Failure to meet rising customer expectations. 2. Risk of losing the best talent. 3. Risk of losing new revenue opportunities. 4. Risk of getting “Baumol’s Disease” (low productivity, high costs). 11
  • 12. Today’s Presentation 1 What’s the Challenge and Why Innovation is an Answer 2 What is Innovation? 3 Where’s the Federal Government? 4 Why is Innovation So Difficult? 5 What are the Federal Opportunities? 6 Leading Innovation 12
  • 13. Federal IT Challenges  Customer-facing challenges:  Too many web sites still hard to use  Too many web sites still organized around agencies and bureaus 13
  • 14. Users Rate E-gov Websites Lower Than E-commerce Sites 8.4 E-Government/Agency 8.2 8.146 E-Business/Company 8 7.8 7.78 7.6 7.679 7.704 7.4 7.484 7.449 7.382 7.391 7.2 7.279 7 6.995 6.8 6.6 6.4 Customization Organization Navigation Overall Statisfaction Comparison to Ideal Source: Forrest V. Morgeson III and Sunil Mithas. Does E-Government Measure Up to E-Business? Comparing End User Perceptions of U.S. Federal Government and E-Business Web Sites. (Public Administration Review, 2009).
  • 15. The Range of Satisfaction is Higher for E-gov Sites 10 E-Government/Agency E-Business/Company 9 8.7 8.2 8 7.9 7 6.6 6 Source: Forrest V. Morgeson III and Sunil Mithas. Does E-Government Measure Up to E-Business? Comparing End User Perceptions of U.S. Federal Government and E-Business Web Sites. (Public Administration Review, 2009).
  • 16. Federal IT Challenges  Customer-facing challenges:  Too many web sites still hard to use  Too many web sites still organized around agencies and bureaus  Internal Challenges:  Considerable duplication of applications instead of widespread shared services  Gap (growing?) between commercial best practice and current government practice (e.g. slow to move to the cloud). 16
  • 17. Federal IT Challenges  Customer-facing challenges:  Too many web sites still hard to use  Too many web sites still organized around agencies and bureaus  Internal Challenges:  Considerable duplication of applications instead of widespread shared services  Gap (growing?) between commercial best practice and current government practice (e.g. slow to move to the cloud).  Overall Challenge:  No systemic focus on driving automation and productivity 17
  • 18. Today’s Presentation 1 What’s the Challenge and Why Innovation is an Answer 2 What is Innovation? 3 Where’s the Federal Government? 4 Why is Innovation So Difficult? 5 What are the Federal Opportunities? 6 Leading Innovation 18
  • 19. Innovation is Challenging, Rare, and Often Frightening Hey, let’s innovate! 19
  • 20. Innovation Isn’t Easy – Some Puzzles to Ponder Why didn’t IBM keep the operating system? Why didn’t Microsoft create the browser? Why didn’t AT&T create AOL? Why didn’t American Airlines create Southwest? Why didn’t Citibank create PayPal? Why didn’t Blockbuster create Netflix? Why didn’t Sam Goody’s create iTunes?  It takes effort to stand in the future and see new possibilities.  Just because you’re not willing to disrupt your own business, doesn’t mean someone else isn’t willing to do it for you. 20
  • 21. The Innovator’s Challenge is to Exploit and Explore Simultaneously Game-Changing Innovations exploit explore Incremental Architectural Discontinuous Research Typically found within your core business Originate from discovery-oriented activities Originate from continuous improvement efforts Often found at the margins of your core business Enabled through OTS components May require significant enabling technologies May require coordination across lines of business Dev Implemented within a current line of business External partnerships, if any, are straightforward Often require major external partnerships Funding Fit within your existing business model May run counter to your current business model ROI is modest but clear-cut ROI is uncertain but upside potential is significant 21
  • 22. IT Investment is Necessary 22
  • 23. National Governments Invest More in IT IT$/Share of Revenue 9 8 7 6 5 4 3 2 1 0 National governments Average Source: Gartner, 2011 23
  • 24. National Governments Invest More in IT IT$/per Worker 15,000 14,500 14,000 13,500 13,000 12,500 12,000 11,500 National governments Average Source: Gartner, 2011 24
  • 25. Installed TB per Employee 0.4 0.35 0.3 0.25 0.2 0.35 0.32 0.15 0.26 0.1 0.13 0.13 0.05 0.11 0.08 0.08 0.06 0.06 0.06 0.05 0.02 0.01 0 Source: Rubin Worldwide, 2011
  • 26. But Money is Not Enough  Firms that adopt digital organization tenets and simultaneously invest more in IT have disproportionately higher performance than firms that do not.  MIT’s Erik Brynjolfsson: “Something unique happens when human capital and other workplace practices are combined with technology.” 26
  • 27. Organizational Change is Also Required A distinct corporate culture and organizational practices are found in most corporations that make extensive use of IT and the Internet. They: 1. Move from paper-based to digital business processes 2. Empower front line service personnel 3. Foster open information access 4. Link incentives to performance 5. Maintain focus and communicate goals 6. Hire the best people 7. Invest in human capital Erik Brynjolffson 27
  • 28. Higher Profitability Accrues to Firms That Get Both Right Profitability 28
  • 29. McKinsey Finds the Same Result % increase in total productivity 75th + percentile  There are productivity and above +8% +20% gains from simply Management practice score automating processes.  Yet the biggest productivity gains are achieved when IT investments are 0 +2% combined with changes 25th in business practices. percentile and below  This is hard and takes _ Intensity of IT Deployment + lots of time and effort. 25th percentile 75th percentile and below and above Source: LSE – McKinsey survey and analysis of 100 US, UK, French, German companies, 1994-2002 29
  • 30. As Does Rubin Worldwide 30
  • 31. So Where is the Federal Government? Profitability 31
  • 32. USG = Japanese Enterprises? = 32
  • 33. IT investment by asset in OECD countries, 2007, percent of non-residential capital formation 30 25 20 15 10 5 0 Software Communication equipment IT equipment 33
  • 34. Today’s Presentation 1 What’s the Challenge and Why Innovation is an Answer 2 What is Innovation? 3 Where’s the Federal Government? 4 Why is Innovation So Difficult? 5 What are the Federal Opportunities? 6 Leading Innovation 34
  • 38. Partner with Private Sector: Partnership 38
  • 39. Partner with private sector: Partnership Go it alone 39
  • 41. IT Impacts on Public Sector Capabilities (positive – negative impacts) 120 100 80 60 40 20 0 Improved Staff Reduction Data access Control Services Source: Anderson, Henriksen, Medaglia, Danzinger, Sannarnes, and Enemaerke. Fads and Facts of E-Government: A Review of the Impacts of E-government (2003-2009), International Journal of Public Administration, 2010 41
  • 42. Today’s Presentation 1 What’s the Challenge and Why Innovation is an Answer 2 What is Innovation? 3 Where’s the Federal Government? 4 Why is Innovation So Difficult? 5 What are the Federal Opportunities? 6 Leading Innovation 42
  • 43. What’s Different About this New Management Style? 2000s leadership style The new leadership paradigm  Rarely talk about innovation  Speak candidly about  No innovation definition or innovation challenges metrics  Clear definition of risks and  No leadership time spent on rewards innovation  Leaders spend hands-on time  Leadership style is directive:  Inspiration and collaboration: “Make it happen” “We can do it” 43
  • 44. Managers Must Lead Innovation Differently Created a strategic design Implemented a capability in every BU Measures BU leaders on Run/Grow/Transform “courage” to drive out-year strategy Requires that 50% of new revenue growth innovations come from outside the company Uses Six Sigma (quality) savings to fund innovation investments 44
  • 45. Poll Question: What Should the Role of Federal CIOs Be? 1. Steward 2. Strategist 3. Revolutionary 45
  • 46. IT Executive’s View of the Role of Their CIO 50 45 40 35 30 25 20 15 10 5 0 Steward Strategist Revolutionary Deloitte: September, 2011 (survey of 1000 IT executives: How do you view your CIO? 46
  • 47. Can the Government Learn to Fail Fast? 47
  • 49. “We have to strike the right balance between being in touch and being in control. The irony is that the more in control we are, the more out of touch we become.” - A.G. Lafley, CEO Proctor and Gamble 49
  • 50. Striking the Right Balance Successful innovation requires marrying Passion, Permission, and Protocols Senior management: •Declares an innovation intent The organization: •Sets conditions for innovation Permission • Establishes processes to support innovation. Processes success zone Your people: • Have the passion, they just need the Passion proper channels to unleash it. 50
  • 51. Thank You Robert Atkinson ratkinson@itif.org Follow ITIF: facebook.com/innovationpolicy www.innovationpolicy.org www.youtube.com/user/techpolicy www.itif.org Twitter: @robatkinsonitif