GCC Social Security Conference - Ryiadh April 10th 2014

1 | © 2012 Oracle Corporation – Proprietary

ICT-enablement of Social Security: how digital innovation impact and transform agencies

Trends in delivering social insurance via electronic channels

GCC conference, Riyadh April 10th, 2014

Christian Wernberg-Tougaard, Director, Social Welfare, EMEA


The following is intended to outline our general product

direction. It is intended for information purposes only, and

may not be incorporated into any contract. It is not a

commitment to deliver any material, code, or functionality,

and should not be relied upon in making purchasing decision.

The development, release, and timing of any features or

functionality described for Oracle’s products remains at the

sole discretion of Oracle.

Safe Harbor Statement


About me ...

• Head of Social Welfare Practice, Oracle Industry Bus. Public Sector, EMEA

• Nordic Public Sector Industry Lead

• Global Lead on Error, Fraud and Corruption (EFC)

• Macro economist (specialized in Developing Economics and Labour Economics)

• Worked with the impact of ICT on Public Sector for the last 17 years, including being:

– Senior expert for the Danish Government / Parliament on technology issues

– Member of Board of Technologies eVoting comittee.

– Expert for the European Commission (eInclusion Policy Support Program, Safer Internet for Children) and the European Parliament (RFID and Identity Management STOA).

– Different director roles in EMEA for IT-industry companies working with Business Development, Strategic Marketing, Innovation & Transformation. Worked as a Management consultant

– Head of Sector Danish Ministry of Science

• Frm. Chairman of The Danish Board for Greater IT-security

• Frm. Member of ENISA’s Permanent Stakeholder Group

Christian Wernberg-Tougaard LinkedIn: www.linkedin.com/in/christianwernbergtougaard Twitter: @digitizeSociety Blog: http://digitizesociety.blogspot.dk/ [email protected]

http://www.linkedin.com/in/christianwernbergtougaard

http://digitizesociety.blogspot.dk/

mailto:[email protected]


Agenda

• Societal ICT Transformations Impacting Public Sector

• Paradigms Impacting Social Insurance Service Delivery

• Recommendations for GCC agencies


Trends impacting Public Sector / Social Welfare

The Digital Service Society (#TDSS)

The Data & Innovation Driven Society (#TDIDS)

The CIIP Demanding Society (#TCIIPDS)

The Automated, Robot Aided Society (#TARAS)

We are creating Next-Generation of Digital Society in EU.


Some Key Trends Impacting Public Sector

Paradigm shift Technology shift


Mobility

• Everybody wants mobility and access to everything.

• It is accumulative – so more and more requirements.

• 5.7 billion mobile subscriptions by end of 2010 – including 940 million 3G connected.

• Mobile access is possible for 90% of worlds population.

• Internet access (in per cent of population): – Nordics: 95-98%

– Europe: 60%

– Africa: 9.2%


Innovation

Invented in

1809

Invented

around ?

1859


ICT Innovation

• ICT innovation takes many forms: – User Interfaces and ease of use.

– Interconnectivity across different platforms (ex. Netflix)

– Hardware optimization and specialization

– Product specialization – functional and industry-specific

– etc etc etc

• The complexity of the choices of which ICT innovations to include, is overwhelming for Governments and Agencies.

• So how to choose the “right” innovations at the right time?


Prerequisites for innovation to be utilized

• The World Bank: Impact of new technology (5% market penetration). – 28 innovations in developed world -> 23 got penetration over 50%.

– 67 innovations in developing world –> 6 got penetration over 50%.

• Conclusion: – Technology innovation in developed world have higher acceptance rate

and faster uptake.

– This can be explained by the fact that core infrastructure in developed countries exists and are available for most citizens / companies.


Prerequisites for innovation to be utilized (II)

• So Governments should initially care about enabling core infrastructure services – rather than deploy advanced eServices to citizens. What is the point of a good service than no-one can access or authenticate?

•Governments needs to know who are who and what is what. Who are you, where do you live, what is your job, how many kids do you have, what is your school record, what is your health record etc. All of this is meta-data that can be connected to the MASTER DATA (or core registration data), the data that describes individuals, companies, property etc.

Master Data:

•In order to secure the rightfulness of users, citizens and companies to the services, one needs to validate identity. A unified PKI-infrastructure as a back-bone service could establish this.

•Identity Management – and Roles & Responsibilities as well as Segregation of Duties are important items to consider on the ”inside” of Public Sector to prevent Collusion.

Authentication:

•Access to internet is a key requirement in order to offer services or demand digital service usage. As companies often have better options to be “mandated” to use digital services, G2B is the obvious choice to start with. And that might provide a better competitive marked for broad-band connectivity.

Communication:


Focus on Three Key Innovation Areas

ICT Consolidation

Efficiency and Effectiveness

Skills and Labor

A complex set of influences drives focus on transformation

These 3 key areas are investigated further in the PDF version of this

deck, as well as on my blog - http://digitizesociety.blogspot.de/

http://digitizesociety.blogspot.de/


ICT Consolidation

• Governments need to be: – Aware of the costs that can be saved on ICT consolidation.

• Datacenter consolidation and Centralized Licenses Agreements for whole Government / Public Sector is a low-hanging fruit.

– Examining Cloud/Virtualization and Shared Service as future operation model

• Governments are investigation how local and “Safe Harbor” cloud services can meet their privacy protection requirements.

– Collaborating around information and data sharing

• Programs (like Schengen, Europol, EESSI, HccH’s iSupport System) will be more globally focused – cloud would save costs, improve deployment and reduce risks on implementation/maintenance.


Efficiency and Effectiveness

• Governments need to be: – Ready to utilize technology innovations

• Innovations in ICT has slow adoption in PS. Eradicate the “Not-Invented-Here Syndrome”.

– Ensure cross-Agency collaboration

• Collaboration and data sharing across agencies is good for saving costs and for citizens

– Streamlined processes

• Digitalization ready laws are together with STP (Straight Through Processing) key words for Public Sector Transformation.

From “save millions” to “save billions”


Citizens and Employees

• Governments need to be: – Aware of the Citizen’s Experience

• The citizen expects a comfortable journey – through health systems, through citizens services, through the legal system.

– Ready for the demographic changes • Governments face a triple challenge:

– Young people growing reluctance to join Public Sector,

– Most senior employees will retire and

– The aging population will increase the wage-gap between Public and Private Sector.

– Willing to develop new service models • This will change the operational set up of ICT. Consider data centers, cloud

and XaaS


Social Services Solution High Level Business Process

Very MIS relevant


Digitalization of the Social Protection Staircase* Maturity and Effectiveness!

What about Fragmentation?

Minimum Income / Social Protection Floor (ILO)

Additional Rights

Contributory

Incre

asin

g s

chem

e c

om

ple

xity

Increasing Effectiveness & Maturity of Digitalization of Social Welfare / Social Security

(*) Based on Fabio Durán-Valverde (ILO) presentation at 13th ISSA ICT conference, Brasilia, 2012 and own adds.

Social

Insurance

Funded

Own payments

to extra

pension, extra

healthcare etc.

Universal Law

Granted Rights

The Nordics

Nigeria: Mandatory

contributions from

Employers for Social

Insurance (NSITF)

Netherlands: Complex

Digitalization of Social

Security (UWV) and Old-

age Pension (SVB)

Sweden: Automated

more than 12.000 rules

for a single benefit using

OPA -> achieved 99.98%

automation; and high

convinience for citizens.

Increasing:

• Rule Complexity

• Master Data

• System

• Privacy

• Stakeholders

• TCO (Cost)?


Complex Rules

Objective vs

Subjective

Digital Illiteracy

Payments Digitally

Characteristics of MIS-schemes: an ICT view!

National Differences Rules/Policies

•These variates between MS – not the processes.

•Hence a uniform system with individual rules, handle the complexities of peoples’ changes of circumstances.

ICT

•Especially among the target group its difficult to understand the rules

•Right people gets the right (financial) support they are eligible for at the right time.

Digital Inclusion Citizens


•In Canada its estimated that 80% of Social Welfare recipients are digital illiterates

ICT

•Enabling Assistance Centers

•Provide Screening/Application via Smart Phone Apps.

•Empowered PVP (Public Volunteer Partnership)

• Social Media Awareness Rai.

Automation / STP Schemes subjective

• Subjectivity makes it difficult to ”compute”

• Transparancy and efficiency provided by objective rules – OGP.

ICT

•Adress ”Digital ready Law-making” (end-to-end).

• Subjective rules can be transformed to objective.

Digital Payments Gov. Pay. oldfashion

• Kenya more advanced than EU average (Mpesa).

•The poor / homeless are often not allowed banking

ICT

•Ecosystem that enables poor to access/spend MIS

•Ensure functionality alternativ/digital payment (barcode for food),


Complex Rules

Objective vs

Subjective

Digital Illiteracy

Payments Digitally

Characteristics of MIS-schemes: an ICT view!

National Differences Rules/Policies

•These variates between MS – not the processes.

•Hence a uniform system with individual rules.

ICT


Digital Inclusion Citizens


•In Canada its estimated that 80% of Social Welfare recipients are digital illiterates

ICT

•Enabling Assistance Centers

•Provide Screening/Application via Smart Phone Apps.

•Empowered PVP (Public Volunteer Partnership)

• Social Media Awareness Rai.

Automation / STP Schemes subjective

• Subjectivity makes it difficult to ”compute”

• Transparancy and efficiency provided by objective rules – OGP.

ICT

•Adress ”Digital ready Law-making” (end-to-end).

• Subjective rules can be transformed to objective.

Digital Payments Gov. Pay. oldfashion

• Kenya more advanced than EU average (Mpesa).

•The poor / homeless are often not allowed banking

ICT

•Ecosystem that enables poor to access/spend MIS

•Ensure functionality alternativ/digital payment (barcode for food),

•In Sweden eligibility to the

Dental Benefit is contingent on

evaluation of more than 12.000

lines of policy/rules. Automated

this takes 1-2 seconds (com-

pared to up to 4 weeks) and

99.98% is automated.

•In Denmark around 25% of

population is functional illiterates

– why self-service is difficult.

• New instruments – like video-

self-service kiosks – helps

empower the poor/homeless.

•New Zealand (Te Tari Taake) is

leading on using ICT to enable

holistic connectivity between

”Idea->Law->ICT enablement”.

• A requirement to enable STP is

good master data management

– eg. UWV in Netherlands.

•Ireland – DSP – is currently

evaluating how to operate a

sophisticated ePayment system.

•Denmark is enabling homeless

with ”payment” through

NemKonto or ”Citizens service”

– latter might be stigmatizing.


Challenge – digitalization of subjectivity (human interaction).

• A 100% subjective evaluation of ”fit” with rules and policies gives risk for citizens to be treated unequal -> rule of law issue. Denmark has a principle of not allowing ”evaluation/judgement” to be put under ”rule”.

• To support caseworkers doing ”human evaluation” requires strong knowledge sharing (what did others do in similar cases) and exact information on the individual (Best in Class Master Data).

• Automation can be achieved by incorporating digitalization thinking when drafting the legislation / policy in order to ensure ”non-interpretation” rules and master data consistancy.


Technology Innovation: Policy Automation

Separating Processes and Rules makes Administrations much more agile.


Recommendations

#1: How to eat an Elephant without a “Silver Knife”?

#2: Build a Business Case.

#3: You are NOT unique

#4: 80/20 Rule still apply

#5: Carefully consider technology Innovations as an option.

#6: Technologies exists (Don’t have to be invented) and mature


#1: The “right” path steered by maturity and

existing investments

It’s complicated

• to eat an Elephant. Where to start?

Respectful of existing investments.

• Easier when you start from scratch / green field.

No Silver Bullet (or Knife?)

• on how to eat an Elephant – but there is best practice and experience from others.

Insight

• Would be happy to share roadmap experiences through an INSIGHT.


#2: Build a business case

ICT Transformation

•Ought to have good business case and that ROI are a matter of weeks rather than years.

Investment €/$/£ budgets are tight,

•so need to justify investments & buying, implementing and running Social Insurance not free!

Holistic Business Case

•also quantify the areas with most potential – need to balance investments with results.

“as-is” and “to-be”

•Is evaluations, so that KPI’s of transformation can be followed and documented.

A guideline moving forward


#3: You are NOT unique.

NOT Unique

• Remember: Public Sector Agencies are NOT unique from a PROCESS point of view.

Separate PROCESSES and POLICIES

• Separate “What you do?” and “How/Why you do it?”.

• PROCESSES are very similar globally, what differs are the POLICIES / RULES.

STP

• Separating PROCESSES from POLICIES also a must when addressing high-performance / efficiency and how to enable STP – Straight Through Processing.

Use COTS

• Hence almost all requirements can be dealt with using Commercial-of-the-shelf Software and Hardware (so-called COTS).


#4: 20% Technology, 80% Organizations

Implementing change is always a challenge.

•Enforcing collection and benefit control requires the organization to change, the citizen to change and the ICT to change.

But the 80/20 rule do apply.

•2 streams – one on change of people, one on change of ICT.

•Ensure that the cultural change is clearly understood by citizens, companies and employees – through awareness raising and ambassadors.

Collaborative cross-involvement

•Ensure that all stakeholders – you (agency), SI and vendor talks together.

•Recommend inaugurating ”Innovation Advisory Boards” where all parties meet every 2nd months.


#5: Carefully consider new options

New technologies

• The Industry is constantly finding new ways and approaches to innovate the ICT ecosystem day-by-day.

Don’t wait

• You should NOT wait for “tomorrows” technology – harvest now, plant the seeds now.

Impact assessments

• Governments need to do an impact assessments on technology:

• Privacy Protection

• Big Data

• Social Media

• Cloud Deployment


#6: Technologies exist and are mature Big Data

Advanced Analytics

Endeca

Data Quality

Gov., Risk and Compliance Real-time Detection

Case Management


Utilizing a step-wise approach is wise.

Step 1 •Get data electronically – go from paper to digital

Step 2 •Strengthen the master data and meta-data operation.

Step 3 •Establish a national unified secure log-in – trusted PKI

Step 4

•Establish other key core infrastructures – unified “Payment Engine”, citizens “public” clearing bank account, citizens DocBox.

Step 5

•Enable automation / transparency through policy digitalizaiton execution based on trusted meta-data

Depends on existing ICT, maturity and starting point which way to go!


Recommendations Social Welfare and ICT

Always Use COTS. No Custom Coding. Let Business

do the Business.

Use Natural Language Rule Engines. Let Business do the

Business.

EU Cloud for Cross MS Eligibility Determination

Examine Payment options for the citizens. And ensure

assisted self-service

Enable Transparancy of Determination Path

Ensure automation/STP. Always humans behind

For effective solutions, agencies should consider:

The 80/20 Rule still apply (80% Organisation and 20% Technology)

No-one can eat a whole Elephant in one bite.

Create implementation dialog between Customer, Implementer and Vendor.

Establish good master-data, as they form the foundation for correct determinations.

IMP

LE

ME

NT

AT

ION

BE

ST

PR

AC

TIS

E


Additional sources of information

• ISSA White Paper on Oracle and Social Services

• ISSA White Paper on Oracle and EFC

• Oracle White Paper on Child Support

• Example of Citizen/Employee Communication (British

Columbia Social Case Managment – ICM). More info

here.

• Video on Dutch Social Welfare - SVB

http://193.134.194.37/Resources/Conference-Reports/Oracle-and-Social-Services

http://www.issa.int/all-conference-reports

http://www.integratedcasemanagement.gov.bc.ca/demo.html

http://www.integratedcasemanagement.gov.bc.ca/

http://www.youtube.com/watch?v=rO0G2qDlYzw




GCC Social Security Conference - Ryiadh April 10th 2014

Presentations & Public Speaking

Transcript of GCC Social Security Conference - Ryiadh April 10th 2014