Information Technology in Government of Canada GC IT Vision and Strategy

1. Information Technology in Government of CanadaGC IT Vision and Strategy Charles E. (Chuck) Henry Chief Technology Officer Government of Canada Treasury Board Secretariat RDIMS 719136

2. Triggers for change CISD Recommendations April 2004 Ministers Directive 2003 January 2005…… • 2003 Budget Speech addressed the need for Expenditure Management Reviews and spoke to good government. • Led to the TBS Common Infrastructure and Service Delivery Review (CISD) • The government adopt a shared services approach to the delivery of finance, materiel and HR services supported by common business processes and a common configuration on a single suite of applications hosted and managed by a common application hosting and management service. • Ministers authorized proceeding to the next steps - validation of CISD findings and preparation of implementation recommendations: • “Propose implementation strategies for a more common approach to the delivery of services across departments and agencies • Propose management and governance models of the development and delivery of these services • Propose strategies for implementing standardized approaches to reporting expenditures, service levels and outcomes • Identify savings targets and timeframes for their achievement based on moving to common services • Propose strategies for harvesting and reallocating the savings.” • Longer term transformation vision • Opportunities and priorities targeted • Expected outcomes identified • Risks and mitigation strategies • Implementation strategies, including early projects • Resource implications, including investment needs and harvestable savings • Governance blueprint • Community support

3. Triggers for Change: GC-Wide Issues • Aging Workforce and competition for new workers. • Environmental Impact of under-utilized computing • Lack of consistent, ongoing infrastructure investment and renewal (i.e. evergreen issue) • Security impact of a broad attack surface consisting of hundreds of data centres and networks • Business Continuity Impact of needing hundreds of IT BCP plans due to the hundreds of data centres and networks • A lack of agility to quickly adapt to changing requirements both organizationally and in program support

4. Findings: Complexity • Systemic Barriers to Horizontal/ Common Initiative • Departmental vertical accountability model makes it hard to advance horizontal initiatives • Departments generally optimize for vertical expenditure efficiencies (often departments optimize by program) rather than whole of government efficiencies • Significant duplication and fragmentation across government • Difficult to establish government-wide ongoing funding models e.g. no departmental capital IT budgets to draw from • Lack of single point of responsibility and accountability • Lack of “one enterprise” culture and governance • Almost 1/3 of GC operational expenditures not being managed at the enterprise (GC) level to maximize either value for money or results for Canadians • Without accurate government wide information and measurement extremely difficult to: • Improve management • Operate as one enterprise • Set targets for effectiveness, efficiency and service improvement • Assess accountability against targets • 94 departments and agencies • 40,000 FTE’s identified in Internal Services of HR, Fin, Materiel and IT • 7 different financial / materiel and 14 different HR applications in use • Approx. 800 significant interfaces to other systems • 315,000 workstations for approximately 250,000 staff • More than 100 Data Centres • Approx 30% of IT staff located in Regions • Approx 55% of Finance and HR staff located in Regions.

5. Findings from External Research • Other public & private sectors have realized substantial efficiency and effectiveness through enterprise-wide approach (e.g. Australian Government, Ontario, B.C., Procter-Gamble): • Significant cost savings - 15 to 30 percent avg (some higher) • Integrated, client-centred service delivery • Improved management, comptrollership and flexibility • But this requires: • Consolidation to drive commonality & economies of scale • More mature, better managed business processes • Enabled by: • Strong, effective governance • Organizational readiness for change • Credible delivery organization

6. The Opportunity Space: GC IT Spending Notes:All figures (except Salaries) are generated from the normalized Spend Cube extracts with enhancements through the Extrapolation model to reflect total GC Spend Salaries Expenditures provided by TBS

7. Leadership vs. ManagementThe changing relationship of CIOB and CIO Council Today Tomorrow Aligned Unaligned Shared Common Moving Towards

8. GC IT Program based on.. VISION & STRATEGY (act as one) MIT POLICY & DIRECTIVE MANAGEMENT ACCOUNTABILITY FRAMEWORK (MAF) IT Governance Directive IT Planning • IT Strategies: • Management (ITIL, CoBIT) • Technology KEY PERFORMANCE INDICATOR (KPI) MEASUREMENTS ITD: Information Technology Division of CIOB, owners of the Management of IT policy and MAF Indicator 13

9. Improving the Management of IT Through consistent planning Strategic Investment Plan 5 year horizon Objectives Investment Plan Strategic Plan IT Plan 5 year Strategy Annual update (progress report) Functional Plans: Materiel,HR,IM,IT... Operational Plans (Projects, initiatives)

10. Policy on Management of IT • Accountabilities of all Deputy Heads: • Senior official designated • Participate in setting Gov-wide directions • Governance structures established • IT Plan integrated into business plan • IT performance measured • Use Common and shared services • Standards development Effective management of information technology within departments and government-wide

11. Directive on Management of IT • The CIO of Canada will: • Chair the CIOC; • Identify members of the CIOC and ensure that participation is commensurate with size of the department; • Ensure that there is a collective decision-making process for the Council; and • Fund the operations of the CIOC. • Chief Information Officer Council (CIOC): • Establish an annual planning cycle that will shape the agenda of the Council; • Publish a strategic plan periodically at the discretion of the Chair; and • Be responsible for communicating and engaging the GC-wide IT community on decisions, plans, progress, risks and challenges associated with the management of IT and GC IT decisions that will impact departmental operations CIO of Canada & CIO Council Terms of Reference

12. Directive on Management of IT … • The Departmental CIO or equivalent has a responsibility to: • Developing departmental governance structures for deputy head approval to support effective IT decision making; • Co-ordinating, promoting and directing information technology and collaborating on IT‑enabled business transformation with the business owner or other stakeholders; • Participating in federal government IT governance forums, including the Chief Information Officer Council (CIOC) and other designated governance and advisory forums, on matters related to IT and federal government IT architecture; • Balancing individual departmental interests with government-wide interests to contribute towards government‑wide IT directions and strategies; • Advising the CIOC on the decisions, plans, progress, risks and challenges associated with the provision or consumption of common or shared IT services • Monitoring and measuring departmental IT management performance using both government-wide and departmental key performance indicators as appropriate; • Advising the deputy head, in collaboration with the business owner and other stakeholders, about the effect of new or amended legislation and policies on departmental IT plans. IT Governance

13. Directive on Management of IT … • The Departmental CIO or equivalent has a responsibility to: • Developing, implementing and sustaining an effective departmental IT planning process that is integrated with the overall departmental corporate planning process and aligned to the investment planning process to support business, enable transformation and guide IT decision making; • Preparing an IT planthat describes: governance, IT business, performance measurement and risk management. Provide an annual IT Progress Report on planned activities and submit to TBS (CIOB) on an as‑requested basis; and • Ensuring that the IT plan is aligned to support departmental business and government-wide strategic directions by communicating with and engaging departmental and external stakeholders. IT Planning

14. Directive on Management of IT • The Departmental CIO or equivalent has a responsibility to: • Developing and maintaining efficient and effective departmental IT management practices and processes, as informed by ITIL (Information Technology Infrastructure Library)andCOBIT (Control Objectives for Information and related Technology), with priority on IT asset management, the IT service catalogue and IT service costing and pricing, as appropriate; • Aligning departmental IT management practices, processes and technology architecture with federal government IT strategy, directions, standards and guidelines as they become available and as they evolve under the guidance of the CIOC; • Participating, as a service provider or a service consumer, in the conception, planning, evolution and oversight of common or shared IT services and solutions; • Developing, implementing and sustaining departmental strategies for producing or consuming appropriate common or shared IT services and solutions, based on the IT plans; • Aligning and documenting IT services, planned or currently offered to recipients, according to the Management, Resources, and Results Structure Policy (MRRS).The Profile of GC Information Technology Services provides additional guidance for the alignment and documentation of the IT Services; and • Reviewing and assessing IT services periodically to identify opportunities for enhancing efficiency, effectiveness and innovation as determined by governance and in collaboration with service providers, service consumers and other stakeholders. IT Strategies

15. Expected Results

16. Proposed Implementation Implementation depends on maturity of the organization

18. GC Information Technology Vision Collaboratively develop and consistently use an IT Management program across the GC that provides GC wide risk and opportunity management • TRANSPARENT • Common data structures • Sharing information • Unit level accountability • EFFICIENT • Consolidated • Simpler / less complex environment • Green • Low cost • RISKS MANAGED • Aging Workforce and competition for new workers. • Environmental Impact of under-utilized computing • Lack of consistent, ongoing infrastructure investment and renewal (i.e. evergreen issue) • Security impact of having a broad attack surface of hundreds of data centres and networks • Business Continuity Impact of having hundreds of IT BCP plans for the hundreds of data centres and networks • Lack of agility/adaptability to emerging requirements • INNOVATIVE • Sharing / Leveraging Community Ideas • Agile / adaptable to new business requirements • EFFECTIVE • ‘Act as One’ • Interoperability • Modular • Guided by ITIL • Accessible

19. GC IT Strategy – An Evolutionary Program STRATEGIES TARGET CURRENT Shared or Common Infrastructure DCE DCC GENS Dept A XX% COMMON EMAIL COMMUNITY A APP B APP A YY% SHARED Aligned Shared or Common Data CYBER AUTH ERP / SOA IT SPEND (ITERATION) KPIs COMMUNITY B ~ 15% SHARED INFRASTRUCTURE Dept B 100% ALIGNED EMAIL APP B Shared Ideas GCPedia APP A Dept A Dept B IT ARCHITECTURE THAT IS: FLEXIBLE ADAPTIVE SECURE RELIABLE GREEN EFFECTIVE INNOVATIVE TRANSPARENT EFFICIENT UNIQUE

20. CIOB – ITD: Our Business Process VISION & STRATEGY (act as one) MIT POLICY MANAGEMENT ACCOUNTABILITY FRAMEWORK (MAF) IT Governance IT Planning IT Management (ITIL, CoBIT) Technology Architecture KEY PERFORMANCE INDICATOR (KPI) MEASUREMENTS ITD: Information Technology Division of CIOB, owners of the Management of IT policy and MAF Indicator 13

21. GC IT Plan Format • BUSINESS • BUSINESS & ACCOUNTABILITY: • GOVERNANCE: • FINANCIAL: • HUMAN RESOURCE: • PERFORMANCE MEASUREMENT: • IT BUSINESS • IT SPECIFIC PERFORMANCE • MEASUREMENT • TECHNOLOGY ENVIRONMENT • (TECHNOLOGY CHOICES & • SERVICES BASED) : • ACTION • IMPLEMENTATION PLAN: • CAPACITY & SUSTAINABILITY • ASSESSMENT • RISK MANAGEMENT • NEW REQUIREMENT MAF VI: • Implementation storyline • Capacity and sustainability assessment • Risk management • Annual update (planned versus actual)