Citizen 20/20 The quality of government services will determine where citizens live Get started Table of contents Outlook The future is now Demographic changes: Young and old, side by side Social connectivity: The always-connected citizen Citizen mobility: Free to move Shared connections Power shift What’s at stake The granular view Citizens as problem solvers From wearables to embeddables Government as concierge The dangers of data Agency integration Tell me once The citizen locker Sharing securely Open government data Hacking for citizen services New public-private partnerships The sharing economy Prepare for what’s next Start like a startup Bureaucrats need not apply References Outlook The future is now When the film Minority Report debuted in 2002, it dazzled audiences with its view of the technologies of the future. More than a decade later, it’s clear the noir sci-fi film got a lot right: Multi-touch 3D screens, retina scanners, movement-sensing interfaces, facial recognition technology, and self-driving vehicles all exist. The film’s view of government and society was far darker. But even there, we find life imitating art: Crime-prediction software, mass-scale monitoring of citizens’ activities, and government overreach into privacy are all here now. Futurists predict a tomorrow less dystopian than the setting of the film, instead believing our deeply connected digital world creates a tremendous opportunity for governments to transform how we live and work. But deep pitfalls lie ahead: widespread disruption, the temptation to overreach, security breaches of massive data stores, and a loss of citizen trust. Flying high No area is off-limits when it comes to using information traditionally held by governments. Flightradar24 glided into the aviation market as a price comparison website. The founders shifted their focus to flight tracking in 2006. And by 2015, Flightradar24 had more than one million daily users. The company shares air-traffic data with consumers, journalists, and international government agencies (Bryan & Maushagen, 2015). With the rise of e-government, citizens already have more civic power and government access than ever before. But many government entities are still mired in bureaucracy that makes it hard to innovate. Governments will have to work hard to deliver the services that constituents need and want, or ineffective agencies could be sidelined by private companies that deliver faster and better. What will it mean to be a citizen in the future? And what will governing agencies—city, state, federal, and even international—look like? The landscape is being shaped by demographic changes, social connectivity, and citizen mobility, three forces that have the power to connect citizens and governments in ways we’re only now imagining. Demographic changes: Young and old, side by side In the coming years, population growth, aging, and urbanization will drive enormous change around the world. Governments will have to cater to a more diverse citizenry, including everyone from millennials to centenarians, poor to affluent, and rural to urban. Here are three trends to watch: More people will live on the planet Over the last century, population has more than doubled. Global population is projected to grow 18 percent to 8.5 billion by 2030 and to 9.7 billion by 2050 (United Nations, 2015). Population in developing countries will grow six times faster than in developed nations, reaching 7.1 billion by 2030 (Berger, 2015). Figure 1: A whole new world Explosive population trends Percentage of 10 to 24-year-olds in population 10% to 19% 20% to 29% 1980 30% to 39% 2015 2050 Source: Berger, 2015 The proportion of old to young will change Birth rates in developed economies are falling, while seniors are living longer. This “gray bubble” will require a larger investment in care and services—and will have to be supported by a smaller income tax base of young people. To address this problem, China recently changed its one-child policy to allow families in urban areas to have two children, while Denmark launched an advertising campaign pushing couples to make “have a baby” date nights. Meanwhile, the young will soon outnumber the old in developing economies. Figure 2: Age breakdown of world population 1950–2050* % ages 0–14 % ages 15–59 % ages 60 and older 1950 35% 58% 8% 1970 38% 55% 8% 1990 33% 58% 9% 2010 27% 62% 11% 2030 23% 61% 17% 2050 20% 58% 22% * Figures may not add up to 100% due to rounding. Source: Pew Research Center, 2015 People will move to megacities The pace of urbanization, as well as the movement of large masses of people from rural areas and agrarian lifestyles, will continue to accelerate. By 2030, 60 percent of people will live in cities of more than 10 million (Berger, 2015), and the world’s 600 fastest-growing cities will account for 60 percent of global economic growth. (Dobbs, Smit, Remes, & Many, 2011) Figure 4: Global relocation Net immigration and emigration by continent by 2030 +18 million +22 million -24 million +3 million -10 million -9 million Source: Berger, 2015 Figure 3: Population predictions Figure 5: Aging across the globe Urban residents Median age by country by 2030 50 World population will live in cities in 2030 60% Source: Berger, 2015 Global 33.1 Japan 51.1 Germany 48.6 South Korea 47.5 China 43.2 U.S. 41 India 31.2 Kenya 21.6 Nigeria 15.2 100 Source: United Nations Economic & Social Affairs, 2015 Against this backdrop, delivering the right services to the right people at the right time will become more difficult than ever. What will be the sustainability limits for feeding and providing energy, water, and waste management for so many citizens? These are the obvious challenges, but the subtle challenges are equally important. The world’s governments will serve five generations at once. They will have to cope with two-speed economies, as megacities fueled by the housing and construction industries outpace the rest of the country in economic growth. A more crowded and urban world could crunch resources to the point of collapse. New technologies that drive investment in alternative-energy production, zero‑waste programs, and increased-yield agricultural research can’t come soon enough. Five Generations to Serve There are strong ideological differences that separate generations living within cities. Each generation’s ideals influence how they view family, career, community, and government. City leadership seeking citizen support will have to acknowledge and address the differences between generations served by the same resources. Generation (Years born) Traditionalist/Silent Generation (1925–1945) Baby Boomer (1946–1964) (Meet the generations) Gen X (1965–1980) (Meet the generations) Gen Y/Millennial (1981–2000) (Spengler, 2014) Gen Z (2001–present) (Altitude, 2015) (Levit, 2015) Technology Dictates documents Email only in the office Library instead of Web Limited phone use Documents prepared by associates Email primarily in the office Uses Web to “Google™” Creates own documents Uses mobile & laptop Uses Web to research, review, etc. 24x7 use of mobile/ email Creates own documents Creates databases Uses Web to research and network 24x7 use of email/ IM/text “Digital” is the norm Uses social networks to communicate and research 24x7 use of WhatsApp, Instagram, etc. No email Career goals Lifetime career with one company A perfect career A transferable career with a variety of skills and experiences Several parallel careers TBD Work environment Office only Office only (long hours) Office or home (flexible schedule) Office or home (flexible schedule) TBD Motivators Self-worth Salary Security Personal relationships TBD Style Formal High-end business casual Low-end business casual Whatever feels comfortable TBD Relationship with government Patriotic Team player Sacrifice for the greater good Free-spirited Can distrust government Untrusting of government Activists Interaction with government through apps TBD Social connectivity: The always-connected citizen As global demographics shift, hyper‑growth in mobile, advanced analytics & data science, and cloud technologies will drive innovation, connecting citizens in new ways and fundamentally changing how governments operate: • Mobile device penetration • Social media • The Internet of Things • Advanced analytics & data science Mobile device penetration Mobile device penetration has skyrocketed globally, even in developing nations. In 2014, there were 105 mobile subscriptions for every 100 people worldwide (World Bank Group, 2015). Phone ownership is nearly ubiquitous in the United States, while smartphone ownership is at 64 percent (Smith, 2015). To put this into perspective, it took 75 years for 100 million people to use the landline telephone, while the Candy Crush Saga game reached the same milestone in less than two years (Gould, 2015). Smartphones and cameras will help citizens become better watchdogs of their governments. In some areas, such as mobile payments, devices have even enabled developing countries to leap ahead of the rest of the world. Figure 6: Always on the go Figure 7: Mobile traffic growth From adoption to saturation In exabytes 2014 2019 ADOPTION IS FASTER AND FASTER 100% 80 NO PHONE 60 MOBILE PHONE LANDLINE ONLY 40 SMART PHONE 20 0 1900 1920 1940 1960 1980 2000 2011 Source: MIT Technology Review, 2012 Figure 8: Mobile payments popular in Africa 50 100 KENYA UGANDA SOUTH AFRICA SENEGAL NIGERIA GHANA MEDIAN IN REMAINING COUNTRIES % of cell phone owners who regularly make or receive payments on their phones Source: Pew Research Center, 2014 30 exabytes 292 exabytes Source: Cisco, 2015 Social media Social media will enable citizens to be fully active participants who share thoughts, build niche communities, interact with government leaders, mobilize around political causes, and hold governments accountable. Ninety percent of U.S. young adults ages 18 to 29 use social media today, compared with 35 percent of adults 65 and older (Perrin, 2015). And they do so increasingly to engage in civic activities. During the 2012 presidential election in the United States, people used social media channels to encourage peers to vote and to support specific candidates (Rainie, 2012). Figure 9: The age of staying social Figure 10: Social networking in Brazil Social media use by age group Millions 90% 18–29 year olds 120 90.0% 100 85.0% 80 35% 60 40 65+ year olds 80.0% 88.3 97.8 104.2 110 75.0% 20 Social media usage among 65+ year olds 2% 11% 35% 2005 2010 2015 0 SOCIAL NETWORK USERS Source: Perrin, 2015 70.0% 2014 2015 2016 2017 % OF INTERNET USERS Source: eMarketer, April 2013 The Internet of Things The Internet of Things will enable new breakthroughs that make cities smarter and more livable. Imagine pollution sensors that communicate air quality conditions directly to citizens. Roadside sensors, pollution sensors, wearable monitors, security devices, and other touchpoints will provide “computing everywhere” to power all of our infrastructure systems. In San Francisco, smart parking meters already set pricing based on parking congestion, while in Singapore intelligent transportation with congestion pricing prevents the city center from becoming gridlocked. Figure 11: It’s all connected Figure 12: Conversations among computers Doubling the Internet of Things Mapping the Internet of Things Kitchen appliances Exercise machines 4.9 Billion 6.3 Billion 6.8 Billion 2015 Billion 7.2 7.6 Billion 2016 Warehouse robots Thermostat Sprinkler systems Shipping containers 20.8 Billion Source: Gartner, 2015 Grocery store registers Parking meters Automatic vacuum cleaners DVR televisions Electrical grids Automobiles In-flight systems Warehouse robot Security cameras Medical plants 2020 Thermostats Automated factories Passports Figure 13: Information inundation A massive influx of data collection & storage 2.5 BILLION Gigabytes New data created every day 44 TRILLION Gigabytes Data created by 2020 Source: Price, 2015, and IDC, 2014 Advanced analytics & data science Big Data analytics has the power to turn government into a concierge that anticipates the information or services citizens will seek and provides it at just the right time. The challenge lies in harnessing the complete picture of business, machine, and human data that people create as they navigate the digital world. Figure 14: Reaching the cloud Cloud-based applications’ impact on government agencies • Efficiency in obtaining building permits and scheduling inspections INCREASED • Ability to scale DECREASED • Wait times in processing, reviewing, approving, and reporting family services case files • Implementation costs Source: Forbes Insights, 2015 The cloud The cloud will provide a shared, flexible, agile infrastructure that makes all of these technological advances affordable for budget-constrained governments. These changes raise the question of data ownership. Even if governments can avoid overreach or misuse of information, simply managing the massive amount of sensitive data that citizens will generate in the future is a weighty and time‑consuming responsibility on a scale that most government agencies have never had to consider until now. Citizen mobility: Free to move In the future, the mission of governments will be the same as always: to improve quality of life, drive economic growth, and create sustainable communities. But citizens will apply different criteria when they evaluate their governments. People will expect more convenience, transparency, and efficiency. Why does it matter? Citizen mobility. For generations, people with the means to relocate have done it for a better life—whether in search of lower tax rates, better school systems, lower crime rates, or healthier environments. But the future will bring mobility on an unprecedented scale. The ability to work remotely and the rise of professional freelancers mean that dissatisfied citizens can move to a different city, state, country, or even continent to find a way of life that suits them. “Governments that serve people must understand their needs, respond with speed, and deliver services that are tailored to them. Otherwise, people and businesses have a choice. They’re going to relocate.” – Suparno Banerjee, global leader for Hewlett Packard Enterprise’s Future Cities initiative Government leaders have to take action if they want to be trusted service providers in the future. They must adopt a citizen-driven mind-set and reinvent the way they operate to deliver consumer-grade service and positive citizen interactions. “Citizens will expect from the government the same kind of response that they get from the private sector,” says Sumi Smith, acting chief information officer of Caltrans, California’s Department of Transportation. “They’ll want government services to have 24x7 availability, a rapid turnaround, immediate response, confirmation of receipt of their information, multichannel availability, and security of their private information.” That might sound like a tall order, but the stability of societies will depend on the government’s ability to adapt to these changing demands. “Politics as we know it is starting to change quite radically. ‘The rich are getting richer,’ he says. The poor are getting poorer, and the poor perceive the government as in cahoots with the rich. If governments aren’t careful, then we will have revolutions around the world. Where financial wealth was the obvious marker to highlight the divide, access to digital services will increasingly be a wealth indicator.” – Ade McCormack, futurist, digital strategist, and author of Beyond Nine to Five: Your Career Guide for the Digital Age Shared connections Power shift In the future, citizens will be hyperconnected. They will use digital technology to communicate not only with each other, but also with public agencies. “Citizen sensors” will help governments provide for the public good. For example: •In Malaga, Spain, people act as sensors through a mobile app called Malaga CitySense that lets people report real-time data about everything from humidity to job postings, as well as general data about the city (Fiware, 2014). •The U.S. Environmental Protection Agency is working with citizens who own consumer-grade air quality monitors to get hyperlocal air readings and detect pollutants (Khan, 2015). •In Boston, Massachusetts, the mayor’s office has released an app that uses GPS and smartphone accelerometers to identify potholes. Citizen sensors offer governments a way to get more data without adding more resources. Government agencies are taking note (New, 2015). That level of connectedness gives a lot of insight to governments that know how to analyze the data that’s available. It also puts more democratic power in the hands of citizens. They use the power of social platforms such as Twitter and Facebook to organize protests and generate signatures for petitions. They record police officers using excessive force, providing critical evidence that can swing public opinion and legal outcomes. “It is in our true nature to be social, to be mobile, to make our own decisions, and to be creative, and as we move out of the industrial economy, we’re seeing mankind return to its true nature. The power shift from employer to employee is also going to happen from government to citizen.” – Ade McCormack, futurist, digital strategist, and author of Beyond Nine to Five: Your Career Guide for the Digital Age What’s at stake While we are seeing the rise of a mobile class of professionals who move out of choice, there are still millions of people who move for survival. Europe is experiencing the worst refugee crisis since World War II. Millions of people have fled the war-torn countries of Syria, Iraq, and Afghanistan. Their struggle to find safe haven in the European Union has tested the immigration policies of many countries and put extraordinary pressures on the national and municipal governments of the countries these refugees hope to call home. This situation is raising important questions that some agencies are unprepared to answer: How will they enable and monitor their new citizens’ progress? How can they adjust and scale up the services they deliver to meet the needs of this new population? HPE’s Banerjee says citizens of tomorrow—whether they move for a better school district or to flee dangerous conflict—will be looking for many of the same things today’s citizens want: employment, opportunities for economic growth, education, healthcare, and transportation. They will also want their governments to understand them as individuals in a way that today’s governments seldom attempt. Brochure The granular view How do you make services more effective in the 21st century? You analyze lots of data to learn what citizens need, and you open up channels of communication to enable citizens to speak up. Governments today already have the ability to collect large amounts of data on citizens—including where they go, what they do, and what they enjoy. The problem, according to Banerjee, is that simple data collection is not enough. Governments need to synthesize and derive insight from that data. Here’s an example of how the granular view of a citizen group can open up new opportunities that benefit citizens and governments alike. Auckland Transport is responsible for a regional transportation infrastructure that includes roads, trains, buses, and ferries in the metropolitan area of Auckland, New Zealand. The agency plans to use transit system data, social data, and mobile phone traffic to make the case for a new service for certain segments of commuters (HP [now Hewlett Packard Enterprise], 2014). Advanced analytics & data science and food safety Food-related illnesses affect tens of millions of people and kill thousands every year. But as governments tap into the power of sensors and advanced analytics & data science to track produce and ingredients—and follow social media complaints about feeling ill after going to a particular restaurant or eating a certain brand from a grocery store—they will identify and eliminate dangerous products to prevent illness and death. “People want to know where their food is coming from, who’s the farmer, and how it was grown,” says Robert Schmidt, chief information officer of the California Department of Food and Agriculture. “I can envision the day that we can track, down to the harvest, who picked that particular tomato and who are all the folks who touched that tomato until the time it made it to the market. If there is a problem, we want to be able to trace it back.” Data analysis revealed that elderly citizens were riding the bus between 2:30 and 4 p.m. daily, timing their trips to avoid rush-hour traffic. Many would go to the same places—a medical center for health appointments or a mall for socializing and shopping. Based on the usage and apparent needs of its passengers, the bureau created point-to-point service routes tailored to the elderly population. Auckland Transport plans to use the data it collects to further optimize traffic flow, eliminate inefficiencies, and generate new revenue streams, all while increasing customer satisfaction. “They don’t have to take the usual bus and stop at 15 places to get where they want to go. Instead, they can fill a bus while reducing traffic congestion. This is how a better understanding of a subgroup of citizens can drive dynamic services.” – Suparno Banerjee, HPE Future Cities Initiative Citizens as problem solvers Citizens everywhere already are talking about governments and services on social media. They complain on Facebook about a miserably long wait on an agency’s help line, or they Tweet to organize protests of police brutality. In the future, savvy governments will create ways for citizens to communicate directly to a single point of contact within the government. They’ll also create an infrastructure to respond to those communications quickly, before problems escalate beyond their control. For example, at the California Department of Food and Agriculture, an iPhone® app called “Report a Pest” enables citizens to snap a photo of a bug, which then is submitted to inspectors and entomologists for identification. If it’s a critical insect—say, an invasive species that requires an immediate response—the agency can contact the citizen and investigate further. “Apps that engage constituents and involve them in solving government problems are key.” – Rob Schmidt, CIO, CA Department of Food and Agriculture Earthquake alert On August 24, 2014, a magnitude 6.0 earthquake struck the San Francisco Bay Area at 3:20 a.m. No doubt the U.S. Geological Survey knew immediately—but so did Jawbone, the manufacturer of the popular UP fitness bracelet. Users wear the device, in part, to track their sleep patterns, and Jawbone data showed 93 percent of users within 15 miles of the epicenter woke up at 3:20 a.m. when the earthquake struck. The company also could see that the farther from the epicenter a user was located, the less likely they were to awaken. In the future, health officials could take advantage of such data not only during a disaster but also in the aftermath. Victims most affected by a traumatic earthquake might begin exhibiting signs of depression that the device would pick up—sleeping during the day, for example—giving health officials the opportunity to proactively reach citizens with mental health services. From wearables to embeddables Some citizen-to-government communication will happen in the background, via wearable devices and ubiquitous sensors. •Transportation agencies will use real-time data from cars and smartphones to trigger a network of smart traffic signals that reroute traffic away from accidents. •Citizens will use wearables or embeddables as live health monitors capable of sending stats to doctors or calling 911 if necessary—particularly useful in areas with aging population. Sensors placed within cities will detect the sound of shots fired and immediately aim public cameras toward the origin of the gunfire, using facial recognition technology to identify suspects only seconds later. •Predictive policing software may even prevent crime before it happens, allocating law enforcement resources to the parts of a city that need them most. In the UK, enterprise software developed at Cardiff University can take advantage of the country’s massive closed-circuit television camera network to analyze the behavior of people in crowds and detect physical fights. •Citizens could become part of an early warning system during natural disasters, such as reporting dangerously flooded roads or helping to record the epicenter of an earthquake. It’s not a big jump from wearing sensors to actually having them implanted in our bodies. “I think we will be wearing our identity or having our identity embedded in us. If you have a library card, health information, travel information, money, and even a prison record on one chip, that’s convenient. And if it means putting a microchip under the skin behind my ear for more convenience, that’s not such a big sacrifice as it might have seemed 20 years ago.” – Ade McCormack, futurist, digital strategist, and author of Beyond Nine to Five: Your Career Guide for the Digital Age Government as concierge If you’re an optimist about the role of government, imagining the results of a hyperconnected citizenry is an exciting exercise. As long as government is responsive, greater citizen involvement could help reduce some of the problems that plague modern society: poverty, disenfranchisement, and even crime. Governments could reshape their cities, states, and countries into places that make them healthier, happier, safer, and more productive. “If the government knows everything about me in the way that Google does, then the government can become my concierge,” McCormack says. “The government is in a position to recommend what I do on Saturday, because it knows me better than I do. It can say, ‘I think you should go to the theater,’ or ‘Looking at your analytics, maybe a run may be more appropriate.’” A proactive government with transparent practices can earn the trust of its constituents and be regarded as an enabling force rather than an adversary. But there are many reasons to be worried about a government that has too much access. The dangers of data The negative implications of this future are easy to imagine—and they are chilling. A government with countless petabytes of citizen data will have the ability to use that data for purposes that violate the public trust. It could spy on political activists, adversaries, or even allies. If agencies fail to secure citizen data, it could be stolen by—or sold to—states or groups that will exploit it for financial or political gain. We don’t even have to imagine it: In 2015, the U.S. Office of Personnel Management disclosed a massive hack in which extensive personal information of nearly 22 million people was stolen in a breach that could compromise national security. The same surveillance cameras that deter and catch criminals could be used to spy on citizens who have not broken the law. “A lot of us take the view that if I’ve done nothing wrong, I’ve got nothing to hide,” McCormack says. “But that relies on a well‑intentioned government.” Another question is that of ownership. Does data belong to the citizen or to the government that collected it? The implications of data ownership go far beyond what most of us have considered. For example, if a state food and agriculture agency has data about a farmer’s property, there may be proprietary information about the types of crops she’s growing, or the type of fertilizer or amount of pesticide she uses, Schmidt says. “Who owns that information? And if the government has a copy of that information, how do we secure the data? What if that information got out?” In the digital economy, personal data might even become a type of currency. Citizens who retain ownership of their data might be able to monetize it themselves. “We are all individuals with unique profiles that could be valuable and marketable,” McCormack says. “If I represent people of my age in Western Europe perfectly, my data will be valuable to both government and enterprises.” The hope, of course, is that government organizations will develop policies toward data ownership that say, “We’re here to help,” instead of “We call the shots.” The Nudge Unit Will a text message sent at the right time improve high school dropout rates? Will a change in tone in a reminder letter increase on-time tax payments? These are the types of revelations that the UK’s “Nudge Unit” looks for every day. The Behavioural Insights Team, also known as the Nudge Unit, follows an approach popularized by Richard Thaler and Cass Sunstein’s 2008 book Nudge to apply behavioral psychology to public policy. This social-purpose company spun out from the UK government aims to identify small changes that can help people make better choices for themselves and society. Since 2010, the team has conducted more than one hundred trials—in the UK, Mexico, and Singapore, and through the World Bank—to evaluate how small changes can lead to big improvements. For example, not including a photo of people on an online signup form led to a big increase in the number of citizens who registered as organ donors in the UK (Behavioural Insights Team, 2015). Agency integration Tell me once Imagine that the next time you have to deal with a government agency, you don’t have to fill out any forms, because you filled out the necessary information for another agency three years ago when you moved to the area. Today this level of agency integration is almost unthinkable. Most people live under municipal, state or provincial, and national governments simultaneously, and at each level, citizens have to deal with multiple agencies for taxes, healthcare, employment, sanitation, and law enforcement, to name a few. In most governments, disparate agency systems cannot talk to each other at all. Even within a single agency, data is woefully siloed. Figure 15: Lower costs with technology The price of communication 80 kr IN PERSON 40 kr TELEPHONE 3 kr SELF-SERVICE Source: Norwegian Ministries, 2012 This fragmentation leads to frustrating interactions in which citizens have to supply the same information on multiple forms and phone calls. It also wastes valuable resources. As government agencies begin to collect more data, citizens will have to provide that information over and over again—unless agencies find ways to share a single source of citizen data. In Belgium, the region of Flanders has created an interagency data-sharing enterprise software platform that eliminates friction between departments—and makes life easier for citizens. Citizens log on to the government website using their government-issued ID, which is linked to their individual profiles. The platform knows the history of their services and delivers relevant information to citizens without requiring a manual search. Every government interaction—from purchasing bus passes to applying for college grants—takes less time. The government serves 42 million data items every year and has saved more than €100 million in administrative costs since the launch of the initiative. Another example is gov.uk in the United Kingdom, which brings together nearly 1,900 websites into a single portal. It gives citizens easy access to multiple government services, such as job search, vehicle tax renewal, voter registration, tax credit calculation, and more. The site has been hailed as a success for citizen access and transparency, logging more than 2 billion site visits in its first three years of operation. Consolidating services has not only saved citizens time and effort—it has also saved the government money. D5: Inter-governmental collaboration among leading digital governments In 2014, the governments of the UK, South Korea, Israel, New Zealand, and Estonia formed “The Digital 5,” or D5. Their goal is to collaborate on ways to use technology to improve the lives of citizens. Their first summit focused on three themes: teaching children to code, facilitating open bidding on government IT contracts, and expanding connectivity throughout their countries. The group will meet annually to showcase their digital accomplishments, and they plan to add more member countries in the future (Cabinet Office, Efficiency and Reform Group and Government Digital Service, 2014) “Why would we duplicate effort and expense, by having numerous different ways for citizens to make payments to government online?” says John Manzoni, chief executive of UK’s Civil Service. “Why have departments developing their own systems when, by working to a common goal, we could have one?” Interagency cooperation isn’t important just for the sake of convenience—it can dramatically improve outcomes for citizens in all areas of life. For example, if a government is trying to determine why children are doing poorly in school, it can examine data on curriculum, nutrition and health, home dynamics, demographics, and other indicators that could uncover causes and possible solutions. But this data likely resides in multiple systems, so agencies with integrated systems are better positioned to solve complex problems that have many causes. Figure 16: Cross-agency integration Maximum Data Sharing between Agencies (MAGDA) impact across government 8 YEARS of steady growth 200+ Satisfied government customers 100M € Savings in admin burden 42+ million Data items served yearly The citizen locker Before long, “tell me once” initiatives like the one in Belgium will be the norm—especially when it comes to paying taxes. Countries with uncomplicated tax codes could easily track citizens’ financial data. At the end of the year, residents would receive a tax bill instead of having to figure out how much they owe the government. It’s a simple concept that requires collaboration between local and federal tax boards. Governments already have income details, including salary, interest payments, and brokerage transactions. They just need to pull it all together in the form of a federated government identity that provides a single view of citizens and the services they use. Financial data and other identifying information could be held in a “citizen locker” or virtual folder, which would be a secure, cloud-based, historical collection of personal data that each citizen can access. “The Prime Minister of India has announced there will be a single window for every government service,” explains Chandrakant Patel, HPE Fellow and Chief Engineer. “Every citizen will have a locker, and the citizen will own that information.” Beyond tax details, the citizen locker could contain your passport, driver’s license, library card, vehicle registrations, and more. By centralizing and analyzing this data, agencies could notify citizens when they are eligible or due for services. •“Your license expires in two months—click here to renew.” •“You’re becoming eligible for Medicaid soon—click here to apply.” •“Your daughter is now 10 days old—click here to start investing in the state‑run college savings program.” •“Looking for a new job? You’re eligible to collect unemployment benefits in the meantime. Click here to apply.” Those IT software examples would be relatively simple to implement. At the other end of the spectrum, agency integration could someday lead to a global, issue-based agency that would address planetary concerns like climate change. McCormack imagines people could say, “Let’s have one global view, so we can cooperate on climate change to ensure that humanity is not just a temporary experiment that nature has deemed a failure.” Figure 17: Where information lives Look inside a virtual citizen locker YOUTH Govt. Concierge Vaccines Enrollment in schools TEEN Driver’s license College/trade school SINGLE/DINK Student loans Graduate school Commuting Paying taxes FAMILY Getting married Buying a home Buying a car Having children CAREER Losing a job Starting a company RETIREMENT Funding retirement Downsized living (selling house, cars, etc.) Health Education Transportation Healthcare Taxes Employment Identity Citizen lockers will hold individual citizens’ information. Those citizens will interact with government agencies via a single point of contact, the government concierge. Sharing securely Open government data When citizens are connected to government and agencies are sharing information, groundbreaking models for government services can emerge. For starters, Norway and the UK have cut costs by providing citizens with a single point of access to hundreds of government services. But the most promising developments hinge on opening government data to citizens and the private sector, so it can be freely used, reused, and redistributed by anyone. According to the Open Government Data project, there are three compelling reasons for governments to open up their data sets: 1. Increase transparency for citizens. 2. Release social and commercial value to drive innovative services. 3. Enable participatory governance models so that citizens are directly informed and actively involved in decision-making (Welcome to Open Government Data, n.d.). Figure 18: Open government data Varying degrees of availability MY DATA Individual genome Health-care records PERSONAL Income tax returns Property records Employee performance reviews CORPORATE BIG DATA Financial reports (public companies) OPEN DATA PROPRIETARY DATA Census data GOVERNMENT Data Source MY DATA Military plans PROPRIETARY DATA More Closed BIG DATA Accessibility OPEN DATA More Open In a world where agencies are territorial about their data, openness won’t be a welcomed change. But it’s already in practice on a small scale, and experts predict that open data will eventually be the default unless there’s a legal reason to keep data locked down. (Individual healthcare records would always remain private, for example.) Today we see two basic examples of open data in action with Google Earth and Weather.com. Google Earth taps into government satellite data to track the removal of landmines, protect endangered species, raise awareness of climate change, enforce property taxes on swimming pools, and coordinate disaster relief response. Weather.com relies on data from the U.S. National Oceanic and Atmospheric Administration to deliver weather news to citizens. Security vs. privacy High-profile data breaches in the last couple of years have put security challenges in the public spotlight. While the Internet of Things promises opportunities, the threat landscape will grow exponentially, according to Hewlett Packard Labs. Who will own the massive amounts of citizen data that governments collect? What will citizens authorize governments to do with their data? Will agencies bother to ask first? Can citizens opt out of sharing some or all of their data? Even if governments can fight the temptation toward abuse of information, managing sensitive or private citizen data is a weighty and time-consuming responsibility on a scale that most government agencies have never had to consider until now. When governments fail to protect data—as we saw in the 2015 hack of the U.S. Office of Personnel Management, in which nearly 22 million personnel records were stolen— the consequences can become a matter of national security. Security leaders within government IT organizations may be extremely hesitant to share their data, and most agencies lack a clear vision around who will own citizen data and how it will be used. “The ability to both secure and properly share data will make complex demands on security innovation,” according to Hewlett Packard Labs. When public agencies and private enterprises team up to use enterprise software and open government data, the possibilities for innovation are limitless. The private sector could use information on metered parking in metro areas to develop new systems that reduce traffic and parking congestion while maximizing revenue—and then sell those systems to municipal governments. Cities could partner with a vehicle company to launch a fleet of driverless cars for ride sharing, providing a higher class of public transportation that results in fewer idle cars needing parking spaces in overcrowded cities. From Europe to India to the United States, governments are testing the waters with data they collect and inviting data scientists and IT software developers to make sense of it. Data.gov is the home of the U.S. government’s open data, where visitors are invited to conduct research, build apps, and design data visualizations using nearly 190,000 data sets. In India, the Open Data Government Platform offers transport timetables, national statistics, government budgets, agricultural data, health performance, and other data sets, as well as key facts at a glance. Hacking for citizen services Government-sponsored hackathons have the potential to kick-start IT software solutions to longstanding problems. •Code for America builds open-source technology and organizes a network of people to improve government services. When 1,300 government leaders, technologists, and community members gathered in Oakland, California, in October 2015 for the organization’s annual summit on 21st-century government, technologies to enable open data were a key theme. •Apps for Europe promotes open data through a support network that helps innovators turn data-driven apps into viable businesses. •The New Zealand government ran three hackathons in late 2015 to uncover fresh ideas. “There’s a recognition here that innovation is not necessarily coming from your own government IT staff, but it happens if you make an ecosystem available and provide an incentive for people to access your data and do interesting things with it,” says David Eaton, HPE’s chief technologist in New Zealand. •The California Department of Food and Agriculture recently held its first hackathon to tackle persistent problems such as conserving water during a drought. The agency also has sponsored several multimillion-dollar grants to the private sector and the University of California system to run tests in which data from ground-based sensors, weather data, and farmer input go into a system that advises how much and when to water a crop, as well as how much fertilizer to apply. Schmidt calls these partnerships the model of the future. “There’s a recognition here that innovation is not necessarily coming from your own government IT staff, but it happens if you make an ecosystem available and provide an incentive for people to access your data and do interesting things with it.” – David Eaton, HPE CTO, New Zealand New public-private partnerships Open data initiatives combined with the power of advanced analytics & data science, enterprise software solutions, and mobile apps will redefine the public sector ecosystem. Governments, nongovernmental organizations, universities, corporations, and citizens will work together in new ways to improve education, healthcare, infrastructure, and quality of life for all. “These problems are complex enough that no single entity has all of the answers,” Banerjee says. “The creation of ecosystems where different people are engaged in coming up with solutions is going to be important. Each might have their own point of view, but they all need to try together.” Growing the government talent pool Increasingly, government agencies will find themselves competing with the private sector to hire employees with the right technical skills. In the UK, HPE is partnering with a local government and a university to feed the talent pipeline. The university provides tools for undergraduate and graduate students to learn data analysis. Then the government hires these students as summer interns. Students get practical experience solving difficult problems, and the government gets a new pool of people to recruit. In the long term, the university and the government are working together to create the next generation of employees who will be prepared for jobs in that market. Public-private partnerships are not new. They have been used in infrastructure for decades to finance toll roads, bike sharing programs, and transportation in many cities around the world. But digital technology will allow these partnerships to reach a new level of collaboration and transparency. Entrepreneur Ben Berkowitz started SeeClickFix in 2008 as a communication platform that enabled citizens to report nonemergency issues in their neighborhoods—potholes, graffiti, litter, streetlights that need replacing—directly to local governments. “We started it because of the ‘can’t’ we were experiencing in New Haven,” Berkowitz says. “When it came to connecting with city hall to solve small problems in the public space, the problem of how to connect seemed substantially larger than it should have been. We couldn’t find anything similar, other than FixMyStreet in England. We looked at that idea, and then we thought of how we could make it global.” Berkowitz says connecting with government was just the beginning: “At some point, the government started asking us to build software to manage the data they receive, and that’s when we found that we had a business model that helped solve more problems.” The company forged a professional relationship with the local government that helped get residents’ issues resolved more quickly. Two things that were seemingly at odds with each other—citizens and government—became harmonized. Partnering to reduce crime The city of Richmond, California, was once plagued by one of the highest murder rates in the country. But that all changed when a private consultant to the government established an experimental program called the Office of Neighborhood Safety to reduce gun violence. By mining government and police data, the organization identified the 50 people most likely to be shot and the 50 people most likely to be shooters. They then paid those individuals to stay out of trouble and provided them with mentoring to ensure they made better choices. After seven years, 94 percent of participants were still alive, and 79 percent had not been arrested or charged with gun-related offenses during that time. Gun homicides dropped from 45 per year to fewer than 15 (Murphy, 2015). Public-private partnerships will require tremendous trust between two sides that operate within different cultures and need to work harder to understand each other. Schmidt sees this challenge firsthand in the agriculture industry, where the private sector could have a massive impact on issues like conservation and public health. “Venture capitalists say, ‘The farmers aren’t talking to us.’ The coders say, ‘We don’t know who to talk to in the farming community.’ And the farmers say, ‘Well, we don’t know who to talk to over there.’” The benefits of cross-sector initiatives are undeniable. But for governments that remain squeamish about open data, two arguments should convince them otherwise: the risks of irrelevance and lost revenue‑collection opportunities. We see what’s at stake when we consider the rise of the sharing economy. Figure 19: The future of government interaction A model for the future Govt. Concierge Education Healthcare Taxes Transportation Employment Identity Currently, citizens in much of the world interact with government agencies on a one-to-one basis. The agencies do not share information, requiring citizens to maintain individual records with each of them. In the future, citizens will interact with all government agencies via a government concierge. Agencies will also continuously talk to each other, eliminating the need for individual citizen records within each agency. The sharing economy In the sharing economy, consumers use digital technology to circumvent established systems in favor of peer‑to-peer transactions. They rent instead of buy, sharing everything from rides and houses to media, money, and food. Besides being efficient and convenient, services of the sharing economy build trust and a sense of community in a way that few enterprises can replicate. Figure 20: More likely to “share” Adoption and expansion of the sharing economy 44% OF U.S. ADULTS ARE FAMILIAR WITH THE SHARING ECONOMY 25% OF U.S. ADULTS HAVE MADE A SHARING ECONOMY TRANSACTION 64% OF CONSUMERS SAY PEER REGULATION IS MORE IMPORTANT THAN GOVERNMENT REGULATION WITHIN THE SHARING ECONOMY Source: PricewaterhouseCoopers, LLC, 2015 Sharing the road San Francisco, California, has been a battleground between taxis and ride-sharing programs since Uber rolled onto the scene in 2012. Three years later, it seems that Uber—and others like it—can share the road with taxis. The San Francisco Municipal Transportation Authority says the number of taxi permit applications in 2015 was higher than in 2010—two years before Uber pulled up to the curb (Wells, 2015). Governments that fail to keep pace with these new business models will end up fighting private innovation with outdated regulations—or missing out on the revenue they could be generating if sensible regulations existed. For example, when well-known startups Uber and Airbnb move into new municipalities, they disrupt the local market because government regulations don’t address the crowd-sourced model—and taxation of local businesses and individuals is tied to those regulations. In Europe, the intracontinental ride-sharing service BlaBlaCar transports more than 2 million passengers each month (Divac, 2015)—more than the entire Eurostar rail system. Meanwhile, Eurostar has been sold almost entirely to private ownership by the government agencies that once operated it and generated revenue from it. That means the revenue that was once generated by a government-operated transport system is now going directly to private companies. A wait-and-see approach is understandable, though risky. “Governments need to hear all sides of the story. Sometimes you need to see some destruction happening before you can understand impacts. Each city is going to be different.” – Jeremiah Owyang, Founder, Crowd Companies Prepare for what’s next Start like a startup Governments face a number of challenges as they strive to become what citizens need them to be, but experts caution against slapping a new interface on an existing process and expecting citizens to be satisfied. Above all, governments must become citizen-driven. “When you’ve built your infrastructure around systems of record, and now you’re trying to develop systems of engagement to take the citizen on a journey through their day, week, or life, you haven’t just got a user‑interface issue—you’ve got a process management issue,” McCormack says. “The pipes that run behind the apps, the data processing, and the data management need a major upheaval.” But major upheavals are costly and risky, so McCormack advocates for governments to borrow best practices from the private sector as they move forward. In some cases, there will be no precedents, so governments will have to create a lean startup form of government that puts the citizen first and run it alongside the current system. Then, as different components and services are completed, governments can migrate them one by one. “You have to start small and scale in accordance with the demands of the market,” he says. You also have to deal with the reality of politics. Elected officials hesitate to undertake infrastructure upgrades that might require unpopular budget cuts or tax hikes—and that might not be fruitful until the next leader is in office to reap the accolades. It’s the rare president, prime minister, mayor, or city council member who wants to make their successor look like a hero. Bureaucrats need not apply A Boston Consulting Group 2014 survey of 37 online government services in 12 countries revealed that people like the direction governments are heading but want them to do more—especially in the areas of health, education, social welfare, and immigration (Carrasco & Goss, 2014). In the end, no matter how many processes governments need to reengineer or how many systems they need to recode from the ground up, the most important and most difficult change will be mental. It will require government workers who are deeply in touch with their mission and with the people they want to serve, represent, and uplift. “Governments have to move their mind-set,” McCormack says. “They have to go from managing uprisings to meeting the needs of citizens in order to keep the society flourishing and economically vibrant.” Prepare for tomorrow today 1. D evelop a clear services strategy with incremental implementation. Plan for the digital services that your agency will provide and how it might partner with other agencies to do so. Look for opportunities to lay out a long-term, transformational road map with an eye toward smaller, easily achievable and marketable early wins. 2. T ake a “digital first” approach focused on outcomes. Anytime you develop a new service, develop it digitally. This approach can help generate best practices that will guide you when you’re ready to digitize existing services. But also look for incremental changes to existing systems and processes that will streamline operations and enable government workers to focus on analyzing and improving services—not the rote, repetitive tasks that should be automated. 3. B ecome citizen-driven and data-driven. The change from government-driven to citizen-driven is a cultural shift. Redefine the government’s mission, at both the top level and the agency level, to address the growing power of citizens and the need to serve them better. Give the government tools at every level to ensure transparency and continuous improvement. 4. Share data but provide governance. Citizens operating outside the government may have a unique perspective, so partner with them. Open up data to citizens, so they can use it to create new services that further the government’s mission. Share data with other agencies to increase overall government efficiency. Read more perspectives from Enterprise 20|20 Follow the conversation at: •HPE Business Insights •HPE Matter •HPE Enterprise Forward •hpe.com References Altitude (2015, May). Through the Eyes of Gen Z. Retrieved from Altitude: marketing.altitudeinc.com/acton/attachment/8306/f-0040/1/-/-/-/-/Through%20The%20 Eyes%20of%20Gen_Z.pdf Behavioural Insights Team (2015). Retrieved from The Behavioural Insights Team: behaviouralinsights.co.uk/ Berger, R (2015, September). Trend Compendium 2030. 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