IBSG - 1 © 2005 Cisco Systems, Inc. All rights reserved. Connected Republic: “ Changing the Way We Govern” Washington State Government IPMA Forum, Saint Martins College Lacey, Washington May 24, 2005 Carolyn Purcell, Internet Business Solutions Group Cisco Systems

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 2 Public Sector Focus

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 3 Agenda Key Issues Facing Government Today The Productivity Problem Productivity Solutions Citizen Centric Solutions What’s Next? Citizen

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 4 Key Issues Facing Government Today © 2005 Cisco Systems, Inc. All rights reserved. IBSG - 4 Source: Cisco IBSG, January 2005 and Gartner Shrinking Workforce Employee Retirements Higher Expectations Better, Faster, More Meaningful Services Aging Population Escalating Entitlements Economy Shrinking Public Spending and Deficits

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 5 Government – A Fine Balancing Act © 2005 Cisco Systems, Inc. All rights reserved. IBSG - 5 Cost Takeout and Productivity Service Quality, Safety & Access Leaner organizations Faster, cheaper, delivery of the right services Reduced bureaucracy Citizen-designed services Public involvement It’s about creating value in the eyes of the citizen, not in the eyes of the government. Citizen Satisfaction

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 6 The Productivity Problem

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 7 Washington Retirement numbers

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 8 Government Productivity Lags Computers and Office Equipment Wholesale Trade Finance Professional Services Retail and Eating Electronic Components Business Svc. Excl. Computer Government Excl. Education Health Private Agriculture Communications Computer Services Government Education Transportation Food and Tobacco Electricity Government Enterprises 0%0.1%0.2%0.3% Average annual percentage contribution to value-added growth Source: U.S. Data, Dale Jorgenson, Harvard University, 2003

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 9 $960B Estimating the Global Impact of Transformed Government $2.3T 10-year Internal Impact Process re-engineering Organizational change Automation Back office streamlining, shared services Optimize procurement processes Streamline transactional services Simplify policies and regulations Boost staff productivity, reduce headcount 10-year External Impact Time savings Direct cost savings Revenue generation opportunities Improved effectiveness of governance and public policy Citizen productivity Stimulation of economic activity Quality of life © 2005 Cisco Systems, Inc. All rights reserved. Source: NOIE, 2003Source: UK Gershon Report, 2004

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 10 $960B Estimating the Global Impact of Transformed Government $2.3T $3.3 Trillion US Dollars 10-year Internal Impact Process re-engineering Organizational change Automation Back office streamlining, shared services Optimize procurement processes Streamline transactional services Simplify policies and regulations Boost staff productivity, reduce headcount 10-year External Impact Time savings Direct cost savings Revenue generation opportunities Improved effectiveness of governance and public policy Citizen productivity Stimulation of economic activity Quality of life © 2005 Cisco Systems, Inc. All rights reserved. Source: NOIE, 2003Source: UK Gershon Report, 2004

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 11 Productivity Solutions

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 12 Cisco Internet Business Solutions FY2004 Benefits SERVICE & SUPPORTMANUFACTURINGE-LEARNING HR & FINANCESALES & MARKETING $2.2B

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 13 How Will Service Evolve? Scripted FAQ Repository Automated Help Desk or CSR System Internet Chat Web Support with Push Technology Voice over IP Phone Support Direct Support E-Service Support Process Constituent Contact High Volume Lower Volume of Constituent Interactions Process and tools enable the volume of non- complex interactions to decline Low High Cost of Support Constituent Contact Traditional Support Process Constituents randomly select service channels, often selecting the most costly sources even for simple interactions Low Volume Higher Volume of Constituent Interactions FAQ Repository Phone Support Direct Support Preferred Last Resort 311

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 14 The Economic Cost of Non-Resiliency Average annual weather-related losses in the United States (Source: US Weather Research Program) $15.8B $12-28B Estimated business impact to Asia due to SARS (Source: CNN) Power Outages Health Alerts Security Alerts Nature Primary Workplace

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 15 Hotel/Conference Center/ Leased Space + Instant Virtual Office Data Center Data Center “Office in a Box” In Case Of Emergency = IPSec VPN If there are no available agency locations, set up low-cost, easy-to-deploy alternate sites anywhere with broadband Internet access Workforce Displacement: “Office in a Box” Maintains Business Uptime

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 16 Citizen Centric Solutions

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 17 Pillars of Government Transformation IBSG - 17 Government Transformation Business Strategy Technology Model Governance & Operations Citizen “…make life better for businesses and for our citizens.” Gov. Christine Gregoire, 1/14/2005

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 18 Texas 211 The Challenges Enabling 25 remote resource centers to communicate so that they could share resources Centralizing call center support to provide 24X7 availability A Limitless Call Center: Provides direct, transparent access to state and local health and human services for all Texas citizens, 24 hours a day, 365 days a year. Will serve as a foundation infrastructure for Texas’ integrated eligibility call centers Is integrated into Texas emergency response plans Advanced partnerships with non-profits to expand reach and reduce demand for operators Enables dissemination of consistent and accurate information to the public

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 19 El Paso Hood Howard Presidio Brewster Val Verde CulbersonHudspeth Jeff Davis Crane Pecos Reeves Crockett Terrell UptonReagan Andrews Ward LovingWinklerMidland E ct or Glasscock Martin Bandera Jim Hogg La Salle Webb Starr Zapata Dimmit Zavala Maverick KinneyUvalde Frio Medina Brooks Duval Ji m We lls Wilson McMullen Bexar Atascosa Bee Live Oak Kar nes Guadalupe Gonzales Mason McCulloch Edwards Sutton Schleicher Kerr Real Kimble Menard Nolan Tom Green Irion Mitchell Ste rlin g Coke Runnels Concho Coleman TaylorCallahan Bell Bla nco Kendall Comal Gillespie Llano Tra vis Hays Caldwell Burnet Williamson Comanche Mills San Saba Brown Eastland Hamilton Lampasas Coryell Erath Bosque Somervell Swisher Randall Hockley Gaines Yoakum Cochran Dawson TerryLynn Lubbock Deaf Smith Bailey Parmer LambHale Castro Hartley OldhamPotter Moore Dallam Sherman Knox Kent ScurryBorden Garza CrosbyDickens FisherJones King Stonewall Hask ell Hall Motley Floyd Briscoe Hardeman Cottle Foard Childress Jack Yo un g Steph ens Shackelford Throckm orton Parker Palo Pinto Wise BaylorArcher Wilbarger Wichita Clay Montague GrayCarson ArmstrongDonley HutchinsonRoberts Wheeler Collingsworth Hemphill Ochiltree HansfordLipscomb Tri nit y Brazos De Witt Milam Bastrop Fayette Lee Austin Colorado Burleson Washington Robertson Wal ler Harris Montgomery Walker Grimes Madison Jasp er Liberty Hardin P o lk TylerTyler Anderson Ellis Falls McLennan Hill Freestone Limestone Leon Navarro Henderson Dallas Tarrant Johnson Denton Kaufman Van Zandt Collin Rockwall Hunt Smith Cherok ee Houston Nacogd oches Angelina Rusk Sh elb y Panola Franklin Rains Wood Hopkins Marion Gregg Upshur Harrison Titus Camp Morris Cass New ton San Augustine Sabin e Fannin Cooke Grayson Delta Lamar Red River Bowie Emergency Alert Extreme Flooding in Gulf Coast centers down in 5 regions Calls to begin routing immediately 1.The Gulf coast is hit by Level 5 hurricane. 2.There is significant damage and flooding. All Call Centers along gulf coast are underwater and offline 3.Call Center agents located in gulf coast region are able to log into the Network and work from a remote location through VPN. 4.TIRN central processing recognizes unavailability of call center agents and sends notification alert to all call centers. 5.I&R Network begins routing gulf coast incoming calls to remaining 20 call centers across the state Texas Value Proposition A Networked Virtual State for Disaster Preparedness

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 20 What’s Next?

© 2005 Cisco Systems, Inc. All rights reserved. IBSG - 21 Evolution of Government Wave 1 Information Interaction Wave 1 Information Interaction Value Impact Foundational IT Investment Wave 2 Transaction Efficiency Wave 3 Transformation Citizen-Centric ePaymentePayment Citizen self-serviceCitizen self-service Dept. solutions (finance, case management…)Dept. solutions (finance, case management…) eProcurementeProcurement Integrated information centersIntegrated information centers Online taxesOnline taxes Departmental websitesDepartmental websites Public noticesPublic notices Online formsOnline forms Personalized portalsPersonalized portals Legislative postingLegislative posting WebcastingWebcasting Consolidated administrative servicesConsolidated administrative services Cross-jurisdiction shared servicesCross-jurisdiction shared services PersonalizationPersonalization Identity management and content security Sense and respond for logistics, defenseSense and respond for logistics, defense Interactive communicationInteractive communication Source: Cisco IBSG, January 2005

© 2005, Cisco Systems, Inc. All rights reserved. IBSG - 22