Smarter Government: IBM Value Proposition IBM Government Industry17 March 2010

“Effective public governance helps to strengthendemocracy and human rights, promote economic prosperity and social cohesion, reduce poverty, enhance environmental protection and the sustainable use of natural resources, and deepen confidence in government and public administration.” Organization for Economic Cooperation & Development

Governments must plan and manage local issues and challenges with full consideration of global trends.

The world is connected: economically, socially and technically.

For governments, this means leading in the face of global challenges brought on by key drivers.

CHANGING DEMOGRAPHICSMedian ages are rising in the developed countries of Italy, Germany and Japan, but dropping in developing ones such as India. RISING ENVIRONMENTAL CONCERNSSocieties and governments are becoming more attuned to what the earth can provide and what it can tolerate.

GROWING THREATS TO SOCIAL STABILITY AND ORDERFrom terrorism to armed conflict to pandemics to natural disasters, the character of threats is changing.

ACCELERATING GLOBALIZATIONCountries and societies are becoming more economically interdependent across social, political and cultural boundaries, as illustrated by current economic conditions.

EVOLVING SOCIETAL RELATIONSHIPSToday, governments are expected to deliver results and value through secure, private services that are available anywhere at any time.

EXPANDING IMPACT OF TECHNOLOGYThe adoption of the Internet is remaking the landscapes of business, healthcare and government.

Source: “Government 2020 and the perpetual collaboration mandate”IBM Institute for Business Value

Today’s imperative: Managing within the current global financial and economic crisis in a way that begins to solve the above challenges and lay a foundation to build a better future.

Collaboration within governments and across the community is essential for policy development, planning and management.

4

GOVERNMENT

Energy

LaborState

Agriculture

Commerce

Defense

Housing

Justice

Education

Healthcare

Treasury

Transportation

GOVERNMENT

20TH CENTURY GOVERNMENT 21ST CENTURY GOVERNMENTNon-government Organizations

Universities

Private Sector Communities

Other Countriesand Governments

Government Innovation Journey

Wave 1 Wave 2 Wave 3 Wave 4 Wave 5

Online Government Interactive Government

Extended Government

Integrated Government

Collaborative Government

To ensure the economic health, welfare and security of their citizens, smart governments will work to…

STRENGTHEN NATIONAL SECURITY AND PUBLIC SAFETYEnabling defense and law enforcement organizations to achieve situational awareness, increased speed of command and combat superiority.

MANAGE RESOURCES EFFECTIVELY Leveraging business intelligence and planning to improve insight and elevate performance with visibility and control.

IMPROVE CITIZEN AND BUSINESS SERVICES

Connecting people to programs based on individual needs—achieving sustainable

outcomes while reducing operational costs and

maximizing taxpayer value.

ENSURE A SUSTAINABLE ENVIRONMENT

Deploying environmentally responsible operations,

from energy efficiency and conservation to transportation management and the pursuit

of renewable resources.

GOVERNMENT

The concepts of building a Smarter Planet, and Smarter Government, are enabled by a business infrastructure that is instrumented, interconnected, and intelligent.

Anywhere anytime access for citizens Dynamic information support to improve effectiveness

of mobile government employees Critical cross-agency information sharing for key decisions Collaboration across governments and with extended community

Interconnected

Instrumented Sensors that enable management of energy use Management of critical equipment used in transportation, water

distribution and waste disposal to prevent outages & accidents Digital video surveillance to protect public buildings and the

transportation infrastructure and to protect citizens in public areas Real time situational awareness for military effectiveness

Intelligent Fusion and real-time analysis of information for public safety Assessment of trends for city planning and policy development Evaluating outcomes of social services to improve the economic

welfare of citizens and the community Fraud detection to ensure government funds are properly used

Fact-Based Planning

Transparency & Accountability

Transparency & Accountability

Commercial software can help integrate information and analyze data to improve planning and management of outcomes

Global Economic Crisis

Global Economic Crisis

Continuous Budget Pressures

Continuous Budget Pressures

Decision-Quality Information

Decision-Quality Information

Demonstrate Good Government

Demonstrate Good Government

Tying Budgets to Outcomes

Mission Performance

Mission Performance

Operational PerformanceOperational Performance

Financial Performance

Financial Performance

Collaboration/Information Sharing

Budgeting & FinanceBudgeting & Finance

Risk MgtRisk Mgt

Operations ReadinessOperations Readiness

ProgramsPrograms

ServicesServices

Supply Chain

Supply Chain

Workforce/ HR

Workforce/ HR

ITIT

High Performing Governmen

t

Use of new tools and capabilities enable “Smarter Governments” to make optimized and near real time decisions.

Lack of Insight

Inability to Predict

Inefficient Access

Variety

Volume

Velocity Sense and respond

Instinct and intuition

Automated

Skilled analytics experts

Back office

Predict and act

Real-time, fact-driven

Optimized

Everyone

Point of impact

Key Phases for Analytics in GovernmentsDescriptive Predictive Proscriptive

Report On & Analyze

Outcomes

Deliver information via a scorecard, dashboards that shows operational and financial status, trends, relationships, and interdependencies.

Reporting and analysis for deeper drill down into trends and detailed analysis.

Provide dynamic and proactive predictive capability to better plan future activities around crime prevention, social service requirements, economic development, tax revenue forecasting.

Planning capabilities help take information and, by re-aligning resources and budgets and execute what-if scenarios, help get programs and activities back on track.

Monitor & Measure

OutcomesPlan for Desired

Outcomes

Predict & Forecast Trends

& Needs

IBM Confidential10

Smarter Healthcare

University of Ontario Institute of TechnologyAnalytics on physiological data allows detection of potentially life-threatening conditions in premature infants up to 24 hrs earlier than current medical practices

Smarter Government

Large Government AgencyAnalyzing 100TBs of active data & 20 petabyte archive; Millions of Objects handled per second; Over 20,000 queries handled daily

Smarter Energy Grid

DONG EnergyRemote monitoring and control devices collect current state information about the grid, lessening outage times by a potential 25 - 50% & up to 90% capital savings

Smarter Public Safety

New York Police Department Integrated crime systems & advanced analytics provide insights to redeploy resources against crime patterns helping prevent crimes and rapidly apprehend criminals

Success Stories

Smarter classroom Smart administration Innovation in research

Road user charging Fare management Transport info mgmt

Infrastructure mgmt Resource planning

EducationTransportation

Water Management

Trade clearing Border Management Passenger Screening

Customs, Immigration

Network Centric Operations

Logistics

Defense

Integrated case mgmt Compliance mgmt Fraud detection

Social Services

IBM has a comprehensive portfolio of offerings reaching many of the diverse business areas of government.

Government Enterprise

Optimization

Government Business

Areas

Strategy and Planning Government Performance

Business Analytics Assessments

Performance dashboards Collaboration tools

CYBER SECURITY STRATEGY

Public Safety Crime information

warehouse Emergency response Digital surveillance

Government Accountability Revenue Management Business Architecture Enterprise applications Shared services

IBM’s collaborative leadership centers develop insight and share best practices and new thinking around the challenges facing governments.

Institute for Electronic Government The Enterprise of

the Future

Global CEO Survey

Global CIO Survey

Global CFO Survey

IBM Research

A Century of Innovation in Government:

• IBM has worked with government for more than 100 years

• We have valued relationships with local, regional and national governments in more than 100 countries in every part of the globe

• Our goal is to help governments achieve

• their mission of improving the economic

• health, welfare and safety of society