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Innovation for Savings - Focus on Field Digital Transition as a Way to Get Started

Five Ways to Innovate During Budget Cuts - Government Technology

This article caught my eye and I bookmarked it a few weeks back. I've been busy finishing a book that I'll talk about in the next post, so I haven't been putting much up on the site lately.

I'm intrigued because this article suggests that there's something positive and constructive IT managers can do, even in the face of budget cuts. These hard economic times can be depressing, certainly, but worse, they risk being compounded by bad morale when we feel disempowered by events beyond our control.

Author David Raths highlights five things CIOs are implementing today, even as bad times seem to get worse and worse. Details after the jump.

1. Increase efficiency through consolidation.
Many organizations that previously hesitated to consolidate are now implementing numerous consolidation ideas, which in turn increase efficiency greatly. Sacramento, Calif., CIO Steve Ferguson previously was unable to implement his consolidation ideas, saying, "There's been a culture of departmental IT that has evolved over 20 years and has been very hard to change. But with the budget crisis, the City Manager's Office is definitely more interested." Through actions such as downsizing the number of data centers and consolidating three e-mail systems into one unified messaging system, Ferguson expects to see significant savings in the coming years.

2. Make a budget case.
With recent revenue shortfalls, organizations have become smarter about how they spend their IT budget. Agencies such as Arizona's Government Information Technology Agency (GITA) work with the organization's IT departments on making a budget case for investments and describing how they fit into a larger state IT strategy. "I inherited an investment justification framework in which departments make a business case over a five-year time frame," explained GITA's Director Chris Cummiskey. "We help them understand the elements they have to look at to be successful."

3. Look more proactively at outsourcing.
In order to address budget cuts, some CIOs have started to examine the benefits of outsourcing. For example, University of South Florida (USF) Associate Vice President of IT Michael Pearce said his staff has "begun to look at outsourcing where it makes sense. For instance, we have outsourced alumni and student e-mail to Google across all our campuses." Pearce expects to see a savings of about $150,000 a year from this action.

4. Create an IT standards team.
Organizations such as USF have identified savings by creating IT standards boards that make sure each technology acquisition falls under established standards set by the CIO's office. By maintaining these standards, Pearce has already recognized $200,000 to $300,000 in savings.

5. Improve service offerings.
By improving service offerings through consolidation, public CIOs have cut spending and made government workers more productive. CIO R. Scott Studham of Tennessee's Oak Ridge National Laboratory consolidated the lab's employees into an IT Services Division. That allowed Studham to add collaboration tools and features to help staffers with work. Studham said IT costs have already dropped from 4.6 percent of the lab's total budget to 4.4 percent.

The bottom line: A smaller budget doesn't mean an end to innovation. Through consolidation, careful budget planning, and other proactive measures, CIOs can increase efficiency and productivity.

I would add a separate category that would focus on how the IT budget is spent on mobile activities. The solutions above, as with most public sector IT focus, concern organizational shifts and/or events inside the buildings. It's amazing how little time and effort are spent on the mobile environment, when one considers that about half of the entire public sector workforce in most cities spends a considerable amount of time away from their desk, out in the field. Those workers are still following business processes from the 20th century, and in many cases, they are notoriously unproductive when separated from their desk environment. I call this area Field Digital Transition, and we'll be writing more and more about this subject in coming months.


Posted on July 16, 2008 at 07:39 AM


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