e-Government Services

Foundation
Interoperability and the GAP Principles

Best practices in Governance, Architecture & Procurement

and the link to effective government and economic
development

Randy Ramusack
United Nations Technology & Policy Advisor
Microsoft Corporation

MICROSOFT CONFIDENTIAL
 Customers Want Choices
Business Models

Proprietary &
Open Source

Standards
Choice

Interoperability

Choice=
Innovation and Competition
Solutions That Focus on Customer and Market Needs

MICROSOFT CONFIDENTIAL
 People

Choice requires Interoperability

Organizational

Law & Policy

Semantic
Connecting people, data, and diverse
systems
• Customers control their data
• Vendors build bridges between systems
Data & Diverse

(Technical Interop)

Data
Systems

Applications

Infrastructure

MICROSOFT CONFIDENTIAL
Interoperability Circa. 1980

Applications Applications Applications Applications

OS OS OS OS

Computers Computers Computers Computers

Processors Processors Processors Processors

Storage Storage Storage Storage

MICROSOFT CONFIDENTIAL
 Customer Complexity Today
Interoperability more important than ever
Client Applications
Open Office, Star Office, Microsoft Office,
Adobe Photoshop, Symantec, Norton,
Firefox, Opera,…
Server Applications
Jboss, BEA, Zope, WebSphere, JD Edwards,
Oracle, SAP, Apache, Microsoft BizTalk,
.NET, …

Databases
IBM, MS, Oracle

Operating Systems & Middleware

Apple, HP, IBM, MS, Sun

Systems Vendors
HP, Sun, Fujitsu, IBM, Dell

Networking Vendors
Cisco, Extreme, Nortel, 3COM, Juniper

Processors
X86-32, X86-64, Sparc, PPC, IA64

Storage
EMC, Dell, Network Appliance, HP
MICROSOFT CONFIDENTIAL
 Software is fundamentally Transformability
different than physical goods. allows choice
It is malleable

MICROSOFT CONFIDENTIAL
Government Focus
evolution of interoperable services

2006

1998

1990 One interaction

to accomplish a
task…
Multiple Web Portals: Web Services:
interactions Information Government
with multiple more exposed organizations
organizations to to some extent become
accomplish a transparent
task…

Traditional
Interactions MICROSOFT CONFIDENTIAL
easons Feature Is Requested by Custome

Government Policy Makers Business & Govt. Customers

 Promoting innovation &  Flexibility of solutions choice
competition  Cost reductions
 Social, political, and economic  Confidence in solutions
issues
 Promoting eGovernment
initiatives
Interoperability

IT Industry Consumers
 Increase customer value  Choice of Products
 Creates market  Ease of Use
opportunities  Value of purchase
 Manages costs

MICROSOFT CONFIDENTIAL
 Roadmap to
Interoperability
Many Ways to Accomplish
• By explicitly designing your
products to meet customer and
market interoperability needs
• By licensing and cross-licensing
IP
• By collaborating with industry,
including competitors
• By implementing standards
(proprietary and open standards)
MICROSOFT CONFIDENTIAL
However.....

Governments should first

establish a foundation of ICT
principles and processes that
enable sound ICT decision
making in advance of setting
strategy or creating policy.

GAP Principles can help.....

MICROSOFT CONFIDENTIAL
World Bank
Experience
“Information system projects
appear to have an alarmingly
high failure rate, even in
developed countries — half of
large implementations fail,
half suffer disputes.”

“It is estimated that more

than 80 percent of World Bank
projects have an informatics
component. Many of these
components meet essential
development needs. It is vital
therefore, that they are
planned and implemented to
bring lasting benefit.”

http://web.worldbank.org/
11
MICROSOFT CONFIDENTIAL
 Thesis
• Economic pressures of the early 2000s lead leading
companies to develop a set of best practices in IT
governance, architecture and procurement: “The
GAP Principles”
• Many organizations and governments continue to
implement GAP approaches which leading
companies evolved away from in the late 1990s
• Government’s adoption of the GAP Principles
would enable increased efficiency, enhanced
service delivery and accelerated software sector
driven economic growth
• As major funding agencies for developing nation
ICT projects, IFIs have a vested interest in driving
adoption of these GAP Principles
MICROSOFT CONFIDENTIAL
The Challenge - In Plain
Terms
Governance
> Competing needs of many diverse stakeholders
> More demands than capacity
> Everyone is an IT expert

Architecture
> Rapidly increasing systems complexity
> Delivering new services increases complexity
> Operations and maintenance budget growing

Procurement
> Severe budget and cost control pressures
> Procurement cycles not responsive to business

MICROSOFT CONFIDENTIAL
Leading Companies evolved to
GAP
Governance
> Federal
> Architectural “Hegemony”
Architecture
> Abstraction and Service Orientation
> The Web as “Fabric”
Procurement
> “Strategic Partnership”  Standardization
> The rise of shared service models

MICROSOFT CONFIDENTIAL
 The GAP Principles
• Governance
> IT is a service provider to the business - Business units and information technology
organizations need to be intimately linked through managed engagement processes.
> The Chief Information Officer (CIO) requires real authority - CIOs need effective
authority to mandate architecture standards across organizational boundaries.
• Architecture
> “Good Architecture” demands abstraction – Good architecture based on XML and
underlying open internet standards abstract underlying complexities, maximize
flexibility and improve speed of delivery of new services.
• Procurement
> Architecture is the foundation - A long term strategic model is required for core
architecture procurement
> Service orientation in architecture enables flexibility – Shorter term tactical models
can be used to procure from smaller, local or specialized suppliers
> Service Level Agreements alone do not guarantee success – Good governance and
architecture are required to enable flexible outsourcing

MICROSOFT CONFIDENTIAL
What is IT governance?
IT governance is about assigning decision rights and creating an accountability framework
that encourages desirable behaviour in the use of IT
Source: CISR (Center for information Systems Research)
Sloan School of Management, MIT and Gartner EXP

CISR also states that IT governance should cover five IT domains:

• IT ‘maxims’ or policies
• IT infrastructure strategy
• IT architecture
• Business application portfolio management
• IT investment and prioritisation.
Source: CISR & Gartner EXP

MICROSOFT CONFIDENTIAL
 Effective Governance

• Definition of architecture and its associated minimum

standards adopted across the entire organisation
• CIO and IT org empowered to enforce architecture and
standards
• Government ministers and internal IT leaders must be co-
stakeholders to collaborate and have voice on long term IT
strategy
• Change management processes ensure rigor in operations
• Financial models and budgets adopted
• Opportunity to provide shared services and / or outsourced

MICROSOFT CONFIDENTIAL
Effective Architecture
Today’s leading organizations are evolving their architectures
towards a Service Oriented Architecture based on this core set
of internet standards.

Core Internet Open Standards

•TCP/IP – Transmission Control Protocol/Internet Protocol - Basic communication protocols
which enable two machines to exchange packets of information with each other across the
internet
•HTTP – HyperText Transfer Protocol – The basic protocol upon which the World Wide Web
is built which enables the servicing of requests for information between browsers and web
servers
•HTML – HyperText Markup Language - The language used to define how information is
displayed in a browser on the World Wide Web
•XML – eXtensible Markup Language – A language which is used to facilitate the exchange
of structured information between two or more applications or systems.
•SOAP – Simple Object Access Protocol – A protocol based on XML which enables the
execution of a service on one system by another.
•WS* - Web Services * - A collection of foundation services based on SOAP and XML which
facilitate the building of robust distributed applications over the internet infrastructure.
MICROSOFT CONFIDENTIAL
Effective Procurement
• Move toward vendor rationalisation, consolidation
 Aggregate purchasing, steeper discounts for volume

• 3 Architecture Layers = 3 Procurement Models:

 core architecture services
 operational infrastructure services
 applications and application services

• SOA creates:
 new approach to vendor selection, time horizons and selection
criteria for each
 Reduced dependence on the classic challenge of outsourcing the end
to end infrastructure
 Lower complexity allowing for smaller, local vendors, lower costs and
improved flexibility and versatility.

MICROSOFT CONFIDENTIAL
 GAPs Benefits to Country
Government
> Strategic alignment with Policy Initiatives
> Spending “Efficiency”
> Increased “Absorptive” capacity
> Enablement of “Integrated Services”
> Enhanced time to delivery
Stimulating Local Industry & Economy
> Create Jobs
> Enable local IT sector integration
> Illuminate “Best in Class” Practices
> Investigate “IT Governance” Academies
> Procure “Strategically”

MICROSOFT CONFIDENTIAL
Economic Development
Through Service Orientation

Decomposition of IT procurement
Lower risk profiles for local IT vendors
Faster “Time to Service” delivery
Creation of local value chains
Implementation of outsourced service models
Virtuous Cycle of Economic Development

Benefits to IFIs
> Enable client govts to achieve their development
objectives
> Ensure effective utilization of funds for IT enabled
initiatives
> Improve return on investment and dev impact of IFI
funding

MICROSOFT CONFIDENTIAL
 Recommendations for action
• Establish:
> IT investment council, as a subset of executive board
> Applications committee, as subset of IT investment council, to
prioritise and maintain applications portfolio
> Architecture advisory group to ensure compliance
> Technical advisory group to advise on technical matters, including
infrastructure strategy compliance
> Programme-project management office to ensure PPM compliance
> Project review board for each major project

• Include: Finally:
> Relationship management Do enough & don’t over-complicate
> Benefits management ‘Socialize’ ideas within organization

MICROSOFT CONFIDENTIAL
 Summary

Information technology is not the solution to e-

Government’s problems. However, effectively
implemented information technology with good
governance and architecture can support and speed
up the achievement of development objectives with
the broadest benefits for society.

MICROSOFT CONFIDENTIAL
 randy.ramusack@microsof
t.com
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.
24
MICROSOFT CONFIDENTIAL
Self-assessment: IT
Governance
Score yourself for 1 to 4 (1 = not at all, 4 =
completely) for:
• We follow a set of agreed IT policies
• We follow an agreed IT infrastructure strategy
• We follow an agreed technology architecture
• Our applications are mapped onto an agreed portfolio
mix
• Our IT investment is prioritised using the business
strategy
• We follow an agreed procurement policy
Your
• We total score
follow a Status of your
standard PM governance
methodology
04 to 09 Poor, needs serious attention
10 to 16 Good start, could be improved
17 to 22 Good, keep improving
23 to 28 Very good, little room for improvement
MICROSOFT CONFIDENTIAL
Benefits of a Service Oriented
Architecture
• Vendor Neutrality – SOA based on Open standards which have been widely
embraced by the vendor community. The standards facilitate interoperability
between applications and systems.
• Speed – Applications built on SOA principles have well defined and interoperable
interfaces. Adding new functionality (Services) requires less systems integration
and can be delivered more quickly than with previous architectural approaches.
• Cost – The complexity of building distributed applications is reduced by using
well defined interfaces based on open standards. This improves development
staff productivity. It also reduces systems integration costs which are a major
component of IT budgets today
• Flexibility – A SOA hides or abstracts the underlying physical complexity of the
IT infrastructure. Once an SOA has been implemented, IT organizations can add
or remove capacity to meet changing demands without having to re-write the
applications running on this infrastructure
• Extensibility – A SOA is based on the same open standards which are used o
the internet. This makes it much easier to connect customers and partners to
services running on the corporate infrastructure.

MICROSOFT CONFIDENTIAL
Government IT Procurement
“Traditional government procurement models typically do not work
well with IT. For example, the initial purchase price of IT is often
far less important than other factors such as total cost of
ownership and the relative fit within the strategic direction of the
entire IT environment. IT systems are advancing at such a rapid
pace that often by the time a government has procured and
implemented a system, it has become obsolete.”

MICROSOFT CONFIDENTIAL
UK
Government
Experience
“Government IT-enabled
projects and programmes
have a chequered history.
Indeed, the National Audit
Office and the Public
Accounts Committee
have published over the
years a succession of
reports cataloguing
delay, overspends, poor
performance and project
cancellation.”

www.nao.org.uk/guidance/focus/0304877_pp10-11.pdf

MICROSOFT CONFIDENTIAL
UK
Government
Experience
“Departments also
need to look for
ways to open up
the marketplace
and make it easier
for suppliers to
compete for
government
business,
especially smaller
suppliers who can
often be a source
of innovation from
which public
services can
benefit.”
www.nao.org.uk/guidance/focus/0304361_pp12-17.pdf

MICROSOFT CONFIDENTIAL
 Benefits achieved by study
cases
• IT spend is now closer to business objectives, indirectly enabled
savings of over 20% of IT budget
• 30% saving on standard desktops and laptops that could not
have been achieved without IT governance mechanism
• Annual savings of £2 million from cancelling projects that could
not be justified, but would have been approved under old
mechanism
• Reasons for approving and rejecting investment decisions are
now transparent and seen to be objective
• Now easier to check whether new initiative will or will not
conform to architecture, and implications if it does not
• Risk of failure has been reduced
• Overspends and overruns have also been reduced

Source: Microsoft GAP study

MICROSOFT CONFIDENTIAL
 Connected
Government
Framework
www.microsoft.com/interop/govt/default.mspx

MICROSOFT CONFIDENTIAL
Why Connected Government Framework?

Government = Interoperability
Customer Feedback
> Want to Delivery Services
> Cross Ministries / Cross
Boundaries E-Government Phases
Service delivery
through partnership

> Maximize Investment with private sector

Government Survey
Seamless High
integration
of services Transformation
across agencies
> Interoperability is the key issue Support financial

PSD/NTO Survey
and legal
transactions Transaction
Interact with
> Open Standards and Interoperability databases
and/or staff Interaction
Interoperability by Design Delivery of
public Presence
information Benefits
> Working with what you have Source: Gartner

MICROSOFT CONFIDENTIAL
 CGF Blueprint
Generic and scenario-specific recommendations
illustrating how to design, develop, deploy, and operate
an architecturally sound interoperability infrastructure in
key areas, including:
Identity & Access
Messaging & Web Services
Integration
Process Orchestration
Transactions
Business Architecture
Deep technical guidance based on real-world experience.
Thoroughly engineered and tested recommendations
that can be followed with confidence.

MICROSOFT CONFIDENTIAL
Connected Government Framework
Inform Envision Develop Deploy Operate

Technology
Policy Policy
Makers Workshops

Business
CGF Modeling Enterprise
Decision CGF Strategy Capabilities Architecture
Makers White Briefing
Technical Paper
Decision
Makers Architecture
CGF Blueprint Operational
Architecture Deployment Guidance
Developers Technet Design Guidance &
SOA Session Tools
Content Development
IT Guidance
Professional

Partner Expertise
MICROSOFT CONFIDENTIAL
 CGF Implementations Worldwide
National Efforts:
UK: Gateway
Colombia: Connectividad
India: India One
Thailand: Gateway
Local & Regional
Italy: Easi II
Austria & Switzerland: E-GORA
Germany: eGSK
Spain: Digital Cities
India: Softframe
Indonesia: DIY
LatAm: eGov.net
Sweden: Swedish Local Government Prescriptive Design
Latvia: Starter Kit
US: CGF – City of Camden, NJ

MICROSOFT CONFIDENTIAL
 Conclusions of the GAP study
of 20 leading companies
The case histories show that:
> New or significantly revised IT governance structure
was introduced when new CIO was appointed with
mandate to make substantial changes.
> Revised or new IT governance structure was
implemented in response to dissatisfaction with way IT
investment was allocated or prioritised.
> Business executives were engaged and “socialised”.
> Majority of organisations had two committee levels, but
one had a “super” level and some had intermediate-
levels.
> Most of obstacles to implementing new governance
structure concerned loss of power or increased
bureaucracy, and were overcome through persistent
“socialising”. Source: Microsoft GAP study

MICROSOFT CONFIDENTIAL
Benefits to Governments &
Constituents
• More effectively support the transformation agenda
underlying e-government projects.
• Enhance the speed and efficiency of government
service delivery supported by information technology.
• Act as a key stimulant to economic growth by enabling
the efficient transfer of funding to and building a
sustainable ecosystem of local software companies
and IT services providers.
• Enable client governments to achieve their IFI funded
development objectives through measurable targets
while ensuring the most effective utilization of loans
and grants for e-government initiatives

MICROSOFT CONFIDENTIAL