Professional Documents
Culture Documents
Preface
Slides have been updated with the script used for ICGFM (see notes pages) Additional information sources slides have been added at the end of the presentation For discussion, clarification, or expansion of concepts or desire to have custom presentation provided via WebX or inperson, e-mail me at dhadden@freebalance.com
Agenda
Market and technology forces affecting Public Financial Management (PFM) Technology and PFM reform 10 key technology and market trends Conclusions
ICT makes a countrys economy more efficient and globally competitive, improves health and education services, and creates new sources of income and employment for poor people.
Technology in Context
Government Objectives
Technology
Reality
Reform comes first An IFMIS must support on-going PFM modernization Technology enables the IFMIS Technology is not government modernization
The four computer and market technology forces of today that are defining Government IFMIS of tomorrow
1. Consolidation
2. Disintegration
3. Innovation
4. Integration
10 Technology Trends
Consolidation 1. Enterprise software consolidation 2. Open source software 3. Commoditization of the software stack Disintegration 4. Decentralization 5. Business process management 6. Software as a service (SaaS) and shared services Innovation 7. The web as a platform - Web 2.0 8. Wireless government Integration 9. Corporate Performance Management (& Government Performance Management) 10. Service Oriented Architectures (SOA)
1. Market consolidation
ERP systems have become bloated understructures that have become too expensive to maintain.
Bruce Richardson,
AMR
SCM
ERP
CRM
BPM
CM
CPM
FRX
Microsoft
SSAGlobal Baan Marcam E-piphany Ironside Infor Mapics Lilly Geac JDA Extensity Comshare Datastream
Oracle
Intentia
Sage
Ross Pivotal
Epicor
Lawson
Maintenance business model Buy customers Own customers: barriers to entry Lack of value for upgrading
Current Situation
Survival of the fittest? Pressure to enter new horizontal and vertical markets New stack wars SME market Emerging markets Overlapping technology portfolio Consolidators attempting economies of scale
Customer satisfaction?
Europe
compliance
Future proofing
Current Situation
Rapid uptake in emerging countries Proven performance and reliability Infrastructure middleware success Java EE, Apache, MySQL, Linux, JBoss, Tomcat, OpenOffice Some assembly required Usability issues Market volatility Not established in business applications
Software Stack
Business Applications Middleware Database Operating System Server Network Storage
Management
Current Situation
Accelerated Commoditization Price pressure on middleware Middleware standards are being set by governments (USA: F.E.A.) Many governments developed open source middleware policies On the Internet, no one knows what middleware you are running
4. De-centralization,
including political devolution, de-concentration, delegation, and transfer to non-governmental organizations, promotes democracy and good governance by providing an institutional framework to bring decision-making closer to the people United Nations Global Forum for Reinventing Government
Shabir Cheema November 2006
Budgets
National Government Ministry 1 Provincial Govt
Virements Information
Virements Information
Virements Information
Municipal Govt
Municipal Govt
Municipal Govt
Reporting
National Government Ministry 1 Provincial Govt
Municipal Govt
Municipal Govt
Municipal Govt
Current Situation
Conflicts with computing trend to integration (centralization) Clear trend: devolution on every continent Local capacity and sustainability issues Difficulties in extending governance with
existing solutions
Success with BPM also requires a culture of real-time management .. and may need a separate process center of excellence.
Gartner Group February 2006
Orchestration
Integration
Aberdeen Group
Current Situation
Increasing as a % of the market (from 0 to..) Uneven adoption: high in customer relationship management Rarely used in government back-office applications why? Similar technology used for shared services, yet E-Procurement ideal application Emergence of appliances
No matter how you brand the hype, get ready for a quantum leap in the way the Web works and more importantly how it works for you and your business.
Wayne Gomes,
Rich Internet
Web 2.0 is the network as platform, spanning all connected devices creating network effects through an "architecture of participation," and going beyond the page metaphor of Web 1.0 to deliver rich user experiences.
Tim OReilly,
OReilly Media
Current Situation
Consumer market driving business applications Corporations adopting blogging technology (Microsoft Channel 9) Superior collaborative capabilities Upset commercial vendor status-quo Security concerns in government
8. Wireless Government
New wireless technology is resulting in innovative business models and holds the promise of connecting poor users, extending competition to all market segments, and accelerating development of broadband infrastructure and access.
Overcoming the digital divide Citizen and civil servant usable and inexpensive
Current Situation
Early adoption in government Exposing IFMIS capabilities via wireless devices is difficult Remains differences among devices Most e-government needs computers and the Internet Practical work on life events
Reporting
Data Mining Scorecarding OLAP
Budget Planning
Government Objectives
Budget Execution
Budget Forecasting
Budget Review
Performance Monitoring
Current Situation
Mixed
Capacity issues Improvements in MTEF Remains output focused Better results in projects yet Commercial performance management software not budget centric
SOA will make todays ERP systems look like yesterdays mainframe apps.
Bruce Richardson,
AMR
SOA Drivers
Promise of re-use: write once, use many times Component-based architectures promise of assembling applications from parts Mix programming language, operating system and middleware Pick best-of-breed applications
Web Services
bind
register
discover
Current Situation
Proven practical in Web 2.0 Business software: Early & emerging Rapid momentum
Conclusions
Modular
and Modular
measure
Citizen Centric
citizen
dhadden@freebalance.com
Conceptual Analysis
Best tools and authors to analyze complex trends in high technology: Geoffrey Moore on technology adoption Clay Christensen on innovation Marshall McLuhan on medium (enhancement, reversal, retrieval, obsolesce) Gartner Group on technology hype cycle
Recommended Links
The Future of Software: http://www.forrester.com/Teleconference/Previous/Overview/1,51 58,1411,00.html The Future of Government Communications Networks: http://www.dts.ca.gov/news_events/ppt/Gartner_JoeSkorupa.ppt Innovation Does Matter: http://fr.sun.com/sunnews/events/2006/may/symposium/pdf/paein ier_forrester.pdf Vision 2010: http://www03.ibm.com/industries/education/doc/content/bin/IBM_BCS_White _Paper_Vision_2010_Business_Applications.pdf Information and communications for development 2006 : global trends and policies: http://wwwwds.worldbank.org/external/default/WDSContentServer/WDSP/IB /2006/04/20/000012009_20060420105118/Rendered/PDF/35924 0PAPER0In101OFFICIAL0USE0ONLY1.pdf Web 2.0 in Business: http://www.mckinseyquarterly.com/article_abstract.aspx?ar=1913 &l2=13&l3=11&srid=9&gp=1
Recommended Links
Ten Trends to Watch in 2006: http://www.mckinseyquarterly.com/article_page.aspx?ar=1 734&L2=21&L3=114&srid=190&gp=0 ERP Graveyard: http://www.erpgraveyard.com/ Is it time for Wikigov: http://www.gcn.com/online/vol1_no1/43410-1.html ERP Consolidation May be Threatening Innovation: http://searchcio.techtarget.com/originalContent/0,289142,si d19_gci1230304,00.html?track=NL453&ad=580643&asrc=EM_NLT_1199477&uid=2151015 Does ERP Matter: http://www.infoworld.com/archives/emailPrint.jsp?R=printT his&A=/article/07/04/09/HNerpmatter_1.html The Building Blocks of a Simpler Future are in Place http://www.accenture.com/Global/Services/By_Subject/Ser vice_oriented_Architecture/R_and_I/BuildingBlocksPlace.h tm