OPTIMIZING GOVERNMENT

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1 Digital transformation in the public sector PART 1 OF 5 OPTIMIZING GOVERNMENT 1 OPTIMIZING GOVERNMENT

2 Digital services have become central to our lives, helping every person to achieve more at work or leisure and providing the catalyst for new business models, products, services and experiences. Capitalizing on this phenomenon is the key to innovation and growth for organizations in every sector. From connected devices and the expanding internet of things (IoT) to increasing volumes of data, advanced analytics, machine learning, artificial intelligence, augmented reality and beyond, access to digital services provides organizations with the opportunity and the challenge to transform themselves. 2 OPTIMIZING GOVERNMENT

3 For government organizations in both developed and emerging countries, stronger and more open governance, with a focus on education, health, security, social inclusion and environmental sustainability, is increasingly understood to be essential to ensuring viability and prosperity. Digital transformation is key to achieving the efficient, collaborative and empowering environment that can enable governments to meet those goals. Shared services has been a government topic for decades, but today s advanced cloud capabilities make it possible to implement this model on a far broader scale An increasing number of governments are now starting to make progress on their journey to transformation, providing concrete examples to show that digital government is now a realistic and achievable goal. This series of five articles explores how Microsoft and its partners are working with governments around the world to address the four key pillars of digital transformation: optimizing operations, transforming services, empowering employees and engaging citizens. Let s begin with a look at the first of those pillars: optimizing government. SHARING SUCCESS Today s cloud-enabled technologies are ushering in a new era of shared services that enables government organizations to meet citizens expectations for always-on, intelligent, any-device digital services with increased efficiency. Shared services has been a government topic for decades, but today s advanced cloud capabilities make it possible to implement this model on a far broader scale, says Paul Hart, 3 OPTIMIZING GOVERNMENT

4 CITY OF LVIV The City of Lviv in Ukraine deployed a new information portal built on Microsoft Azure that helps improve tourist services. Processes that previously took the city up to 55 working days a year now take just three. And by using the cloud, Lviv now only pays for services when it uses them, saving them thousands of dollars each year. Director of Government Marketing, Microsoft. Shared services make it possible for governments to improve outcomes without recreating the wheel. By sharing services, governments around the world can reduce duplication, achieve economies of scale, and quickly roll out valuable services to the citizens they serve. For example, systems that were once isolated, such as office heating and facilities, air quality sampling stations, traffic signals and street lighting, can now be integrated and connected on a continuous basis enabling the shift from merely reacting to events to responding in real time, or even pre-emptively. Governments can use the same approach as manufacturing, retail and other industries, even applying machine learning to realize the untapped potential of their growing volumes of data to anticipate and resolve citizen issues before they become problems. 4 OPTIMIZING GOVERNMENT

5 PUTTING IT INTO PRACTICE Microsoft and its partners worldwide have worked with governments of all sizes to implement a shared services model, using Microsoft s global-scale, enterprise-grade hybrid cloud platform to empower these organizations with the flexibility to create the cloud to suit their needs. Governments can choose between public, private or hybrid cloud environments, deploying some shared services in the cloud, a shared service in itself, and others in their own datacenters, and moving services between the two environments easily as circumstances dictate. As data volumes continue to grow, the scalable cloud enables governments to collect, manage and extract data easily, ensuring compliance with data governance policies and regulations while providing ease of use and reliability. DOING MORE WITH DATA The City of Lviv in the Ukraine is realizing the benefits of improved data collection. To help visitors find local sites of interest, the 5 OPTIMIZING GOVERNMENT

6 By bringing big data capabilities into the mix, governments are able to gather data across a dispersed set of end points and analyze it for the continuous improvement of services city built Tourist Information Centers (TICs), where tourists can ask questions and pick up brochures. TIC employees collect demographic data, which the city uses to improve tourist services. To modernize its manual spreadsheet-based data collection, Lviv deployed a new information portal built on Microsoft Azure that improves data accuracy and speeds up report generation. Processes that previously took the city up to 55 working days a year now take just three. What s more, Lviv only pays for cloud resources 6 OPTIMIZING GOVERNMENT

7 when they are used so in months when tourism is slower, Lviv pays less. Overall, the city expects to save more than $10,000 in the first year compared with an on-premises deployment. HARNESSING INTELLIGENCE By bringing big data capabilities into the mix, governments are able to gather data across a dispersed set of end points and analyze it for the continuous improvement of services. The Tax Authority of Mexico (SAT) is doing this with great effect. SAT wanted to upgrade its technology infrastructure to serve the growing demands of 40 million taxpayers who were required to interact with it electronically. To provide more intelligent information management, SAT developed a hardware and software architecture comprising Microsoft Azure cloud services, the Microsoft.NET Framework, Microsoft SQL Server databases, and Azure HD Insights, a software framework designed to manage, analyze, and report on big data. It also created a hybrid cloud environment to offer more robust service and handle the growth in the number of citizens who access the portal. 7 OPTIMIZING GOVERNMENT

8 SAT used the elasticity of cloud computing services to help issue electronic invoices, provide direct customer support from the portal to all taxpayers, and support more than 85 authorized certification providers with filing-related services. During Mexico s period for filing tax returns, the platform can Governments across the globe are tapping into big data to transform their everyday operations support high traffic volumes and meet business demands in real time. Additionally, SAT has developed an online tool based on Azure, which it expects taxpayers to use to manage all their tax information. LEVERAGING NEW EFFICIENCIES By incorporating powerful data analytics tools, SAT has broadened its knowledge about taxpayers. Process times for electronic invoices have been cut from many hours to just two minutes. SAT has also been able to quickly develop multiple services which are easy for citizens to access through its portal. SAT used to spend 80% of its budget on maintaining and operating outdated systems and applications. Through cloudbased services, it avoids investing in its own datacenters and has saved 20% on costs. Once the cloud-based model is fully operational, SAT expects to achieve savings of up to 70%. Governments across the globe are tapping into big data to transform their everyday operations, says Parul Bhandari, Senior Program Manager, Microsoft Services. They re using predictive analytics to dramatically improve the quality of their decisions, and 8 OPTIMIZING GOVERNMENT

9 TAX AUTHORITY OF MEXICO The Tax Authority of Mexico (SAT) has developed a technology architecture using the cloud and Microsoft technologies to improve services and manage, analyze and report on big data. As a result, SAT has cut processing times from hours to minutes and broadened its knowledge about taxpayers. And once the cloud model is fully operational, SAT expects to achieve savings of up to 70%. they re collecting and analyzing large volumes of information to enhance both their efficiency and their service to citizens. ENABLING OPTIMIZED GOVERNMENT Bhandari points towards Montgomery County in Maryland which provides another example of the effective use of big data tools. Montgomery County is working with farmers to voluntarily deploy sensors on their farms that help them operate more efficiently by measuring everything from ground temperatures to water and pesticide usage, Bhandari says. Meanwhile, in Jordan the Aqaba Water Company is using SQL Server, Microsoft Azure, and other Microsoft technologies to remotely monitor its infrastructure and pumps ultimately delivering water more efficiently to customers. 9 OPTIMIZING GOVERNMENT

10 The application of these capabilities holds the potential to reshape relationships with citizens by supporting unprecedented levels of service while paying only for the capacity they use. In this new era of shared services, governments are no longer constrained by the cost of building out their own datacenters, says Hart. Instead, they can create and share services in the cloud at far less expense. By doing so, governments can develop innovative solutions that make a real impact on the citizens they serve. Optimizing Government is part one of a five-part series of articles from Microsoft on digital government transformation. To read other articles in the series and how governments are benefiting from transformation today, visit aka.ms/transform-gov microsoft.com/government

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