Technology futures in local government Consulting 21618 rt Ripe for the pick 18/10/07 12:02 Page 1 2 Contents Foreword 1 Summary 2 Anytime, anywhere Mobile and wireless 3 Knowing me. Knowing you Security 9 Sound foundations Infrastructure 13 Joining IT all up Architecture 17 Conclusion 21 21618 rt Ripe for the pick 18/10/07 12:02 Page 2 1 Ripe for the picking? Technology futures in local government Foreword At a time when technology is fundamentally changing peoples daily lives... I am keen that the excitement, motivation and momentum that the strategy generated are not lost as we work towards putting it into action. (Ian Watmore Transformational Government, March 2006). It is hard to disagree with the sentiments that technology has a major role to play in transforming local government. When combined with a transformation of people, process and data, it is clearly helping to provide better quality and more efficient services and fundamentally, services which are more focussed around the citizen. It is also fair to say that considerable determination will be required by all parties involved to achieve these ambitious objectives. However, technology and its proponents has a bad track record in presenting itself as a quick-fix solution and it is all too easy to choose a solution that is not yet ripe for the picking. All that excitement, motivation and momentum needs to be grounded in reality. So whilst there are various directives originating from central government which have a technology impact, we believe that a longer-term view of technology will help to inform the debate around how to realise the benefits that technology can bring to local government. Overall ICT spending by Western European governments will exceed 25 billion by 2009 according to researcher IDC 1 . Just over a half of the expenditure is expected to come from local government reaching 13 billion by 2009. It is largely left to local authorities to decide how they should deliver electronic services. Not surprisingly, local authorities face a barrage of technology hype from vendors describing how they can fulfil their obligations with a range of emerging technologies. This report cuts through the hype and presents a clear analysis of the business relevance and timeliness of four main strands of technology which will enable local authorities to achieve effective connected government. This is not an exhaustive list the technologies have been chosen because of their simultaneous ability to offer both significant benefits to local government services whilst at the same time presenting a number of risks that need to be clearly understood and managed. Security of access to services must be balanced by ease of use and concerns about civil liberties. They must also take account of general advances in technologies such as broadband communications, mobile phones and wireless. New strategies for integrating services must be underpinned by robust infrastructural technologies and take account of advances in systems architecture. Analysis of the current state of these key technologies is accompanied by practical examples of local and central government projects which illustrate the benefits to forward-looking authorities. Weve also used the terminology flowering to indicate where technologies should be approached with caution and ripe fruit where they are mature enough to adopt. Mark Lawrie Partner 1. IDC, Western Europe, Government Sector IT Spending Forecast Update, 2005-2009. 21618 rt Ripe for the pick 18/10/07 12:02 Page 1 2 Ripe for the picking? Technology futures in local government Anytime, anywhere Mobile and wireless Technology Verdict Find out more Wireless Flowering Page 3 Location aware Ripe fruit Page 5 RFID Ripe fruit Page 6 Knowing me, knowing you Security Technology Verdict Find out more Smartcards Ripe fruit Page 9 Biometrics Flowering Page 10 Summary Sound foundations Infrastructure Technology Verdict Find out more Broadband Ripe fruit Page 13 Opensource Flowering Page 14 Joining IT all up Architecture Technology Verdict Find out more Service Oriented Flowering Page 17 Architecture Middleware Ripe fruit Page 18 Thin-clients Ripe fruit Page 19 and Data Centralisation This report presents a clear analysis on the business relevance of four main strands of technology Mobile and wireless, Security, Infrastructure and Architecture. We have used the terminology flowering to indicate where technologies should be approached with caution and ripe fruit where they are mature enough to adopt now. The table below summarises each of the technologies featured in the report. 21618 rt Ripe for the pick 18/10/07 12:02 Page 2 3 Ripe for the picking? Technology futures in local government Mobile and wireless technologies promise much in terms of efficiency and work flexibility. These will be increasingly hard for councils to ignore as they can widen user access to council services, transform the way property is used and improve business processes, particularly in areas where mobile working is required. Surprisingly, local government has been slow to take on mobile and wireless technologies. A recent survey by SOCITM, the professional association for ICT managers working in local government, notes that the change in the use of mobile devices has been evolutionary not revolutionary 2 . We believe this will change. Many different technologies come together to support mobile working through wireless networks. Location aware systems, wireless networks and radio frequency identification devices are seen as three key enabling technologies. Wireless Background Wireless technology has evolved quickly through several iterations and wireless connectivity is already widely available. Although the wireless protocols are evolving rapidly, the range of devices and applications that can utilise them is also evolving to meet increasing demand for mobility. Email, PDAs and phone technologies are converging with new gadgets providing a combination of functions in ever smaller packages. ICT analyst Richard Holway recently predicted that mobile phones will soon be the only item people will carry with them replacing keys, identity cards, passports, credit cards and, eventually, even medical information. For councils, these developments open up more flexibility in the way in which employees work, and increase the ways in which citizens can access services. Anytime, anywhere Mobile and wireless Currently the whole range of wireless technologies from simple 2G and 2.5G mobile phones based on the GSM network standard, through to GPRS-based 3G and 4G or WiFi offer escalating levels of service and functionality. The later generation mobile phones (2.5G and 3G) can support data services in addition to voice offering the potential for real time information services and even Web and email access. We must also not forget the impact of Voice over IP (VoIP) technologies discussed later. But 4G WiFi technology, with its high bandwidth and functionality, is likely to be the most pervasive. So-called WiFi hotspots are springing up in many places and offer full connectivity through laptop or personal digital assistants (PDA). The evolution of WiMAX is extending this vision even further through faster speeds and greater ranges. According to researcher In-Stat Marketing, sales of WiFi-enabled devices grew by 67 per cent in 2005, and now the majority of laptops are WiFi enabled. Value to local government Access to services is one of the main challenges facing local government and wireless devices are an obvious solution. In the UK there are more mobile phones than people and a growing number are buying portable computers, suggesting that wireless will become a widely used means of connectivity. Local government can leverage this phenomenon to give access to up-to date information such as live railway timetables and traffic news. Mobile devices can also be used to make payments such as admission charges to museums or public transport fares. Wireless technology is also breaking down boundaries not only are public WiFi links opening up council services but they are beginning to help re-write democratic rules, allowing better access to decision makers. Portable devices are generally cheaper than expensive home PCs, and with more services available to more people, this could be an important step to empowering more people. 2. SOCITM IT Trends in Local Government 2006/7. 21618 rt Ripe for the pick 18/10/07 12:02 Page 3 4 Ripe for the picking? Technology futures in local government Barriers The rapid evolution of wireless technology has created a wide variety of products with different standards and functionality which makes the choice of a future proof technology difficult. As the market expands and the technology matures over the next two years, this will, of course, change. Meanwhile, caution is recommended. Over time, advances in technology will allay current concerns about performance and reliability and remove reservations about wireless communication compared with traditional wired systems. The barrier to implementing wireless networks in particular has been security many authorities do not currently have the infrastructure capable of integrating secure WiFi. Other barriers to acceptance could be less easy to overcome. Issues of civil liberties and privacy will need debate. And wireless networks are also prone to security threats which could be difficult to trap. There also needs to be some caution in viewing wireless technologies as a panacea in reducing the digital divide if people cant afford the technology, then quite simply the effort may be in vain. Verdict flowering The wide take-up of mobile devices in the mass market is an opportunity local government can use to deliver information services at relatively low cost. The network and the terminal device are free all the local authority needs to invest in is the end service. The current lack of technical standards and relatively immature technology, coupled with privacy and security problems, will delay local governments use of wireless if only for a short time. A number of authorities however are already ahead of the game, and are working with providers to offer public WiFi networks both increasing access to services and breaking down boundaries. Examples Bridgend County Borough Council (BCBC) in South Wales recently installed a public WiFi access system over a multiservice provider network. The council says the system, from WiFi supplier The Cloud, puts Bridgend in a good position to achieve the Governments ambition for councils to provide universal on-line access to public services by 2008. Westminster Council are pioneering a wireless network originally designed to benefit Council employees on the move, but now extending to serve both residents and local businesses. The service, currently in a pilot stage will provide CCTV coverage, remote working and public WiFi hotspots when fully operational. The London Borough of Islington has signed a deal with Handheld PCs to provide a wireless mobile computing network to deliver email on the move and provide full PC synchronisation. More than 500 Islington Council staff, including managers, technical staff and social workers, will have full wireless access to email, diaries and some back office systems. Three London Boroughs along with other UK authorities are creating city centre WiFi zones. These are making a step change from traditional hot-spots in terms of availability and usability. The London boroughs of Kensington and Chelsea, Camden and Islington will all go live this summer. The Cloud is also currently rolling out a hotzone for the City of London. Within local government, wireless technology enables more flexibility in mobile and remote working. Staff can connect to operational systems when off site, and many councils are using such technology to make savings through the transformation of business processes. Case notes for example can be entered into a handheld device and a query returned instantaneously, reducing the time spent on a particular case and preventing the need to translate written notes into electronic data. Allowing staff to work more easily at remote locations not only makes the management of cases more flexible and effective, but it also enables savings through hot- desking and allowing staff to work at home. 21618 rt Ripe for the pick 18/10/07 12:02 Page 4 5 Ripe for the picking? Technology futures in local government Location Aware Background Location aware technologies enable mobile workers to know where they are and, more importantly, to be located easily by central control. Emergency services vehicles en route to an incident, for example, can use location aware technology to find their destination quickly. Controllers can use it to deploy resources by locating the nearest vehicles to the incident. Controversially, wireless technology can also be used for tracking either to limit movements of criminals on parole or to help with the protection of children. Two main, but different technologies are currently available one based on mobile telephones and one which uses the Global Positioning System (GPS). The choice depends upon three factors: cost, geographical coverage and the level of accuracy. In broad terms, mobile telephone-based location systems are less expensive than GPS but they are less accurate and tend to be limited to urban areas. GPS is best suited to rural areas where cell phone coverage is limited but it is more expensive. There are also emerging, but less developed public WiFi and RFID networks on the way. Value to local government Many local government services are mobile by their very nature. Management of mobile resources demands good communications whether they are mission-critical emergency services or less critical, day-to-day services such as refuse collection. The ability to track staff and assets through location aware technologies, therefore, has enormous potential to make better use of resources and save on costs. Location aware technology can also be used to track council staff in potentially dangerous situations. A social worker visiting a difficult client, for example, can be tracked automatically and monitored to ensure their safety. Examples The Commission for Rural Communities (to replace the Countryside Agency) found a pilot study on mobile work, which used a range of portable devices, saved individual employees between four and twelve hours a week. (Computer Weekly, November 2005) Croydon Council is running a pilot called Airtext which uses SMS to send air quality information to residents mobile phones. (Computer Weekly, November 2005) Barriers While location aware technology is evolving quickly, there are still some technical barriers. The accuracy is variable especially when based on mobile phone systems. Crossing cell boundaries, for example, can lead to loss of signal and an inaccurate location reading. In rural areas, cell phone coverage is currently limited and significant investment in mobile networks by suppliers is still needed to increase coverage. Integration is also proving difficult across different application providers. Verdict ripe fruit Location aware technology has wide application in local government both to track people and resources and to help emergency services locate incident sites. GPS and cell phone-based location technologies are advancing rapidly and, after a slow start, it seems likely that the technology will spread quickly in local government. 21618 rt Ripe for the pick 18/10/07 12:02 Page 5 6 Ripe for the picking? Technology futures in local government Value to local government RFID tags can be scanned automatically out of sight of the reader which makes them ideally suited to applications where line of sight is difficult or fast processing is required. Current RFID technology can scan up to 50 tags per second. RFID tags are also difficult to copy and, thus, more secure than other methods of identification. Potential applications of RFID include payment applications such as road toll access, parking enforcement and meter reading. The most promising applications, however, are those where RFID tags are used to locate and identify items or individuals. Many libraries, for example, use RFID to tag loan items. The tags fulfil a dual function removing the need for a librarian to record loans manually and as a security device to prevent theft. Scanners located at library exits can detect items which have not been checked out properly. The same principle can be applied to any physical object. SUN Microsystems, for example, recently announced a system which uses RFID to track ICT equipment. Although some authorities have already begun to use RFID in libraries for example, their use has often been to replace the functionality of previous bar code systems. The next leap is going to be in using RFID to help locate items such as books, making a step change in the value that this technology can provide. RFID tags can also be used for tracking people such as children attending leisure events or daycare facilities to ensure they do not get lost. RFID Background Radio Frequency Identification (RFID) devices are machine-readable tags which can be used to locate and identify items and individuals. The applications range from identification of people and animals through to transport payments and asset tracking. The tag consists of a tiny microchip and an antenna enclosed in a thin plastic casing. Although the technology has been around for some time, it is only recently that demand has accelerated. Gartner estimates that worldwide spending on RFID rose 39 percent in 2005 to reach $504 million. Gartner predicts a market worth $3 billion by 2010 3 . RFID looks likely to replace bar codes and other machine-readable codes in some applications such as asset tracking and library books. Unlike bar codes, RFID tags do not need line of sight to be read and multiple tags can be read quickly. RFID tags are also rugged, have a long life and can be reused. 3. Gartner December 2005 Market Share and Forecast: Radio Frequency Identification, Worldwide, 2004-2010. 21618 rt Ripe for the pick 18/10/07 12:02 Page 6 7 Ripe for the picking? Technology futures in local government Barriers The main barriers to use of RFID have traditionally been lack of standards and the cost of readers and tags. Increased standardisation and technical advances are expected to bring costs down, however. Currently several different RFID technologies compete for space in the market although some rationalisation is inevitable as the technology matures. There are also concerns over privacy and data protection issues. Potentially RFID tags could be used covertly to monitor human behaviour. Examples Sutton Library Service is using RFID tags in a project to widen access to library services. It says the benefits have been significant both releasing staff to spend more time with visitors and extending opening hours. On the administrative side, the library is able to display books in new ways and track and record usage more flexibly. RFID based cards can be adapted to provide access to local authority leisure facilities, libraries, health centres and other public services. When combined with charging facilities it is possible to top up a card and use it to purchase services. At least one London local authority is reported to be looking at the possibility of extending the Oyster RFID-based travel card for use as a library and leisure centre card. Verdict ripe fruit Use of RFID in libraries and for tracking assets is now well advanced and, with prices falling quickly, the technology shows promise in many areas. It is also worth noting that the UK telecoms regulator Ofcom gave RFID a boost at the end of 2005 by setting aside a radio frequency band range exclusively for RFID signals. Wireless and Mobile the Deloitte bottom line Although wireless technology has not yet been taken up widely by local government, this looks set to change quickly. The many benefits that flow from wireless technology easier access to services, greater flexibility from mobile working and cost savings will be difficult to ignore. The lack of standards and the relative immaturity of some wireless technologies are causes for concern and may slow adoption. But the main barriers are likely to be worries over privacy, data protection and civil liberties. The many benefits that flow from wireless technology easier access to services, greater flexibility from mobile working and cost savings will be difficult to ignore. 21618 rt Ripe for the pick 18/10/07 12:02 Page 7 8 Ripe for the picking? Technology futures in local government 21618 rt Ripe for the pick 18/10/07 12:02 Page 8 9 Ripe for the picking? Technology futures in local government Local government is in the front line of the drive to give citizens increased access to the services which affect their daily lives. New technologies are making access easier by the day, but this comes with a price. Breaking down access barriers is a major part of local governments mission, but providing easy access to services raises significant security issues. Local authorities must ensure that their access strategy does not expose systems and data. Effective security is also essential to prevent fraud. Identification and authentication technologies can be used to verify known facts about an individual and enable secure access. Two technologies currently under consideration are smart cards and biometric identification. Smart cards Background A smart card is a standard plastic card with a machine-readable storage chip embedded in its surface. Smart cards can store any kind of digital data and are commonly used with a personal identification number (PIN). This is called two-factor identification and authentication something you have (the card) and something you know (the PIN). For local government, there are many obvious business processes where such identification and authentication is required. Typical examples would include the payment of benefits, transport and leisure services. Smart cards can also store biometric data to provide alternative ways to identify and authenticate a user passports for example are moving in this direction. Various forms of smart card have existed since the 1970s, although the first widespread applications only surfaced in the 1990s in the French banking sector. More recently UK banks have replaced magnetic stripe payment cards with chip and pin cards based on smart card technology. Value to local government The success of smart cards in the banking sector and the emerging evidence that chip and pin is decreasing fraud, suggests that they could be of significant value to local government. Smart cards enable reasonably secure access to multiple services with a single token which increases convenience for citizens who only need to remember one PIN. Smart cards also offer the potential to customise services and personalise them for individual citizens. The card can, for example, carry data with language preferences or help for the visually impaired so services can be tailored accordingly. In addition, local government departments can use smart cards to gather management information on usage. This can inform decision making about changes to services and support infrastructure that directly or indirectly affect the citizen. Knowing me. Knowing you Security Examples The Oyster Card is a contactless smart card used in the Greater London area for season ticket and pay as you go travel. The reduced long-term costs of the scheme are allowing greater discounts to be offered against cash purposes savings which can be reinvested or passed on to users. The system looks likely to have an exciting future with e-money capabilities being added to allow quick payments at newsagents for example. The Connexions Card scheme provides a secure smart card, designed for 16-19 year olds. It enables them to collect reward points for learning, work-based training and voluntary activities. The points can be exchanged for discounted or free goods and services and other rewards. The Card can also be used as proof of age and holds a photograph. Occupational Health Smart Cards (OHSCs) enable most doctors to confirm their fitness to practice, in terms of clinical competence and continuing professional development, health clearance, CRB assurances etc. The scheme aims to reduce the reliance on paper procedures. Smart cards also enable hot desking and interoffice roaming, allowing users to connect back to their data from different places. Barriers Smart cards sound a great idea but can we apply them in local government? While smart card technology is mature, there are still barriers to its use in local government applications. The card readers and the cards themselves are expensive and there are still competing technologies and multiple standards, making the choice of technology difficult and integration a complex business. The barriers are not just technological. The use of smart cards raises the perennial issues of privacy, data protection and political concerns about the threat to civil liberties. There are also potential problems in sharing data across government departments and in some cases data protection is preventing services from being delivered. The actual registration process is also proving difficult to implement authenticating users via multiple access channels for multiple service requests is a real challenge that has to be overcome. 21618 rt Ripe for the pick 18/10/07 12:02 Page 9 10 Ripe for the picking? Technology futures in local government Verdict ripe fruit Smart card technology is now sufficiently well advanced to provide secure delivery of local government services to citizens. The rapid spread and success of chip and pin smart cards in reducing fraud in banking and retail will help to accelerate acceptance. When coupled with central governments consideration of national ID cards, it seems likely that smart card technology will have an important role to play in identifying citizens and giving them access to services. A national ID card scheme will likely to be a catalyst for change and improve current registration and authentication issues. Biometrics Background Biometrics is the automated recognition of a person based on human characteristics. Many council services ranging from elections to benefits depend on ensuring the person is who they claim to be. Fraud can be dramatically reduced if you can be sure you know who youre dealing with. Fingerprinting, iris and face recognition are now well advanced and offer the greatest potential. Other biometrics methods such as voice-print recognition and signature analysis are less mature. Implementations of biometrics work in two ways. Data can be stored in a portable token such as a smart card or radio frequency identification device (RFID), read with a special-purpose reader and compared to real world data from a local scanner. Alternatively, the scanned data can be compared to biometric data stored in a central database. Value to local government Biometric methods are acknowledged to be more secure than a password or a PIN. This improves overall system security when used to access services. The international shift towards biometrics, mainly promoted by the US government, will stimulate development and commoditisation of biometric technologies. Not only will this bring costs down, it will also promote wider acceptance of biometrics as a method of identification and authentication. The Local Government Association (LGA) are particularly enthusiastic about the need for a well managed citizen reference scheme they have recognised the role biometrics could play in the development of e-democracy, the Census and identifying children 4 . Examples The Ohio Board of Pharmacy uses fingerprinting for authorising prescription orders. It has installed 800 workstations that can check that the prescriber is allowed to issue an order for a prescription. Biometric technology is used in the UKs asylum system. Asylum seekers are fingerprinted and checked against UK and EU databases. Over 150,000 applicants have been issued with a high-tech ID card which provides a more secure and fraud resistant way of tracking people through the system. As a result of this investment 53 people have been prosecuted in the last year for making fraudulent asylum applications. 4. Memorandum submitted by the Local Government Association, House of Commons Home Affairs Written Evidence, July 2004. Barriers Fingerprinting and iris recognition are the most promising biometric technologies and significant progress has been made in their development. Costs are still high but likely to fall quickly as applications proliferate and usage increases. Questions of who will pay for these technologies are also quite rightly raised by the LGA. Like all security-related technologies, biometrics is seen as a potential enemy of traditional civil liberties. Concerns over misuse of biometric data and the possibilities of fooling biometric readers with artificial fingerprints or iris images are also a barrier. Legal implications and any liability involved needs to be clarified. The international shift towards biometrics, mainly promoted by the US government, will stimulate development and commoditisation of biometric technologies. 21618 rt Ripe for the pick 18/10/07 12:02 Page 10 11 Ripe for the picking? Technology futures in local government Verdict flowering The use of biometrics is accelerating especially in light of growing international demand for biometric passports. Several countries including Hong Kong and Malaysia are already using biometric identity cards. In the UK, proposals to use biometrics in passports and other forms of identification mean that it is only a matter of time before it is included in local government plans. The cost savings that could accrue to local government from use of a single card encoded with biometric data will be significant. In addition, many countries have included a digital signature in the smart chip which can provide secure access to on-line services and applications. Security the Deloitte bottom line The pressure on local government to deliver electronic services to citizens must be supported by the best possible security. Biometrics and smart card technology can fill this gap and give citizens secure, but simple, access to the services they need. It seems inevitable in the long term that a combination of biometrics and smart cards will become the dominant method of personal identification and verification. Local government should monitor both social and technological developments closely and take account of how national ID cards could figure in their plans. There is still considerable effort required to integrate access channels, standardise security processes and solving problems around security roles, authentication and levels of access. A national ID card scheme would no doubt prove a catalyst to overcoming these obstacles. 21618 rt Ripe for the pick 18/10/07 12:02 Page 11 12 Ripe for the picking? Technology futures in local government 21618 rt Ripe for the pick 18/10/07 12:02 Page 12 13 Ripe for the picking? Technology futures in local government Sound foundations Infrastructure Examples The Royal Borough of Kingston upon Thames was the first UK local authority to convert to VoIP. It aims to use the technology to improve services at call centres and cut phone bills. It also expects to use the VoIP network to increase remote working and hot desking. Cheshire County Council is working with Memorex Telex to design and implement a countywide broadband solution to connect schools, libraries and Council offices throughout the region. The Eastserve initiative, set up by Manchester City Council is the largest UK scheme to transform one of the poorest neighbourhoods in the city. Eastserve has enabled over 3,500 local residents to gain access to information and communications technology (ICT) and on-line services, backed up by training and community-based support services. Eastserve is now claimed to be the largest all-wireless community-based network in Europe. Value to local government Broadband communications infrastructure offers much to local government. Not only can broadband reduce communications costs it also provides greater flexibility through integration of voice and data and interactivity. The low cost of telephone calls made through VoIP (home VoIP users would recognise this as products such as Skype), enables local councils to cut their internal telephone bills and support remote and home working therefore allowing more flexible working and reducing property costs. VoIP can also support integrated voice and data applications for use in contact centres even virtual ones. Broadband always-on data networking can deliver similar cost reductions and greater flexibility to support remote working for council employees. Broadband digital TV enables local government to deliver interactive information services via broadband. After some four decades of evolution in delivering services, many councils have inherited complex and expensive ICT infrastructures. ICT departments have helped provide key hardware infrastructure such as telephones and PCs, along with line of business software like revenues, benefits and finance applications. More latterly, they have been tasked with the e-Government agenda, providing web access and transforming business processes driven by technologies such as Customer Relationship Management (CRM). As a result, most have converged networks which have grown from several waves of technology mainframes, minicomputers, PCs, the Web and, increasingly, voice-over-IP (VoIP) digital telephony and audio-visual systems. The emerging trend of the convergence of data networks and voice networks promises many benefits but it also demands a coherent, integrated infrastructure to realise them. Two emerging infrastructure technologies broadband communications and Open Source software offer an effective way to build such an infrastructure and enable local government to deliver services at low cost. Broadband provides the foundation for delivering flexible interactive services and Open Source software cuts application costs and removes dependency on vendors. Broadband Background Broadband is a communications technology which enables rapid transmission of large volumes of digital data in both directions. In the last two years broadband communications has caused a minor revolution in home communications, and it is the most likely catalyst in the e-Government agenda, opening up council services to those with internet access, enabling on-line payments, and access to council information. This however, is only the beginning with video communications becoming more widespread and telecommunications becoming cheaper and more flexible. Currently in the UK, ADSL broadband operates mainly in the 1-2 megabit range although faster/higher bandwidth services are being rolled out including SDSL. ADSL-based broadband services use standard telephone lines to provide high-speed digital communications at a fraction of the cost of earlier technologies such as ISDN. The result is that at the end of 2006, nearly 80% of connections were broadband opening the door to many new applications 5 . Three key emergent broadband applications VoIP, digital TV and high-speed data networking all offer the potential to reduce communications costs and create flexible, converged applications. VoIP, for example, enables unlimited voice telephony through the Internet for no more than the broadband connection cost. Broadband digital TV can handle streamed live video and two-way interaction. Barriers While broadband has achieved a level of maturity, there are still gaps and the potential for security breaches. VoIP technology still has some way to go although usage is increasing rapidly and suppliers now claim quality and reliability comparable to traditional voice systems. A standard for VoIP has still to emerge and there are several competing and incompatible technologies. 5. National Statistics. 21618 rt Ripe for the pick 18/10/07 12:02 Page 13 14 Ripe for the picking? Technology futures in local government In addition to cost savings, Open Source has also gained support because it is less likely to be subject to hacking or disrupted with rogue programs. Open Source software needs to be more robust than proprietary software and is, therefore, less easy to break. Furthermore, the open development model for Open Source software such as Linux, Open Office and Apache has made it a continued source of innovation. Value to local government The main value of Open Source software as an infrastructural component lies in its cost model. A lot of it is free or very low cost. While it still needs support and a coherent upgrade strategy, Open Source in some situations can offer a lower cost of ownership than proprietary alternatives. Use of Open Source removes dependence on vendors and their development strategies. Users can follow their own development path and customise Open Source software to suit their requirements within a standard framework. Standardisation is, in effect, the oxygen of Open Source. It provides a solid direction and more flexibility to plug in new components than closed source solutions. Finally, the open development model could potentially produce better quality code because it is subject to wide scrutiny and testing. Open Source uses an iterative development model which enables rapid feedback between developers and testers in the user community. However, it could be argued that test and release cycles are not as comprehensive as in commercial software, revealing why hybrid Open Source and Proprietary solutions are often favoured. Most major manufacturers and leading software developers have committed significant resources to supporting Open Source software. Sun, IBM and HP, for example, are strongly behind the movement. Companies like BEA and Oracle are using Open Source to underpin aspects of their proprietary products. Ebays recent purchase of Skype the best known VoIP product will doubtless increase home VoIP usage, but this is currently not suitable for enterprise use because conversations cannot be recorded/archived. Other more suitable providers for commercial use include Mitel, Cisco, Siemens and Nortel. Digital TV also suffers from several competing technologies some based on broadband and others based on earlier TV broadcast technologies. This could act as a brake on take up of broadband digital TV. The cultural change associated with increased home and remote working could also be a limiting factor on the use of broadband technologies. Verdict ripe fruit The popularity of broadband Internet in the UK makes it a technology local government cannot ignore. The cost savings from VoIP and the flexibility of converged broadband networks are two potential benefits. While a move to broadband infrastructure is likely in the long term, councils will be looking to include broadband in their general network upgrade plans. Open Source Background Open Source is essentially the software equivalent of sharing a recipe rather than keeping the source code a corporate secret, the code behind the software is fully available and can be distributed freely. The Open Source software movement has therefore grown out of two clear principles first, that source code should be open and available and, second, that innovation is shared and enhanced. It enables developers and users to obtain software at little or no cost and improve it for everyones benefit. This can really benefit local government, not only in reducing the costs of software development, but the open nature can give greater control to councils, taking power away from vendors and other suppliers. While a move to broadband infrastructure is likely in the long term, councils will be looking to include broadband in their general network upgrade plans. 21618 rt Ripe for the pick 18/10/07 12:02 Page 14 15 Ripe for the picking? Technology futures in local government Verdict flowering Open source software looks likely to become an important component of local government ICT infrastructure in the next two to five years. The collaborative nature of local government ICT suits the open development model and offers the opportunity to produce reliable, high quality applications at low cost. Infrastructure the Deloitte bottom line The move to a converged infrastructure demands new strategies from local government. Councils need to create a robust and flexible foundation to deliver a wide range of integrated services bridging voice and data. Broadband communications, now well advanced in consumer markets, can bring the same cost benefits to local government services. In some cases, Open Source software can contribute further to reducing the cost of infrastructure and deliver other benefits such as robust security and, in the long term, better applications. Examples The Swiss government recently announced it was moving all its systems to Novell SUSE Linux. Birmingham City Council has started a trial of Open Source software on desktops and servers, intended to determine whether Open Source really delivers benefits. The Council will move 1,500 desktops and the associated back-end servers in its library service to Linux and other Open Source software including OpenOffice and Firefox. The year-long trial will be backed by government money, and include a final, neutral assessment of the value of the move. Public terminals in libraries will be shifted to Linux, as well as office systems in the library service. Dundee City Council evaluated a range of proprietary UNIX systems, but were able to achieve greater cost savings and more consolidation with an Open Source solution. Leveraging existing in-house Open Source skills, the Council selected SUSE Linux Enterprise Server users were not affected and the software has been more reliable. Having highly available systems is proving to help the Council increase the number of services it can offer to residents. Barriers Open Source still faces some barriers to acceptance although they are crumbling fast. Historically, support for Open Source has been a problem but with big players such as Sun and IBM backing it strongly and newcomers such as Spikesource offering professional support services, this is no longer a problem. There are concerns over the quality of some Open Source code and that it comes with no guarantees. But as the Open Source model evolves and more organisations take it on, this will be less of an issue. Could Darwinian-based evolution result in the survival of the fittest? Use of Open Source could possibly cause problems of liability for infringing code copyright and patents. The current legal dispute between Unix owner SCO and the Linux development community is an example. Interoperability has also proven an issue for applications such as Microsoft Office and some Open Source applications are not enterprise ready, suffering from scalability and resilience issues. 21618 rt Ripe for the pick 18/10/07 12:02 Page 15 16 Ripe for the picking? Technology futures in local government 21618 rt Ripe for the pick 18/10/07 12:02 Page 16 17 Ripe for the picking? Technology futures in local government Councils have to provide a wide range of services, so its inevitable that over the years they have built up a wide range of different systems. The architecture of ICT infrastructure has also evolved over four decades from central mainframes, through distributed mini- computers to PC networks and todays internetworking Web systems, which has also added complexity. Many organisations have all of these technologies operating side by side and want to bring them together. Providing front to back office integration brings many benefits to improving access and making savings through the transformation of business processes. Authorities are also under pressure to work more collaboratively and share services, so having technology that can talk to each other is fundamental to the future of local government ICT, both within and outside each council. National systems are increasingly being rolled out with legal obligations for local government in the areas of health, policing and childrens services councils therefore cannot afford to operate in silos where these areas are concerned. A services-based model of computing is seen as the next step in the development of systems architecture and the solution to the challenge of enterprise network integration. The architecture needed to support a service model of computing is in the early stages of development with manufacturers such as IBM and HP investing significant amounts to make it a reality. But it is a complex (and expensive) change and depends upon the successful development of at least three key technologies service oriented architecture, middleware and thin-client systems. Service Oriented Architecture Background Service oriented architecture (SOA) concepts allow for business functionality to be separated into granular modules and offered as services which can be delivered through the Internet rather than traditional applications. The processing of credit cards by many councils already follows this model, preventing the need for each council to have their own system whereas instead they simply subscribe to a payment-taking service. Researcher Forrester expected that 77 percent of large enterprises, 51 percent of medium enterprises, and 46 percent of small enterprises to be actively implementing SOA by the end of 2005. SOA relies on a widely-accepted standards base to work. SOAP for example is a messaging protocol which is used to encode XML-based messages over the Internet. SOAP also adds and defines security procedures. SOA-based systems rely on SOAP to handle all inter- service communication and transportation, routing and interim processing of XML messages. Each council therefore doesnt have to reinvent the wheel with this type of architectural approach, and it can be sure that the system at the other end understands the message. Joining IT all up Architecture BPEL is a standard based on XML which is used to define business processes as packaged services. The latest Business Process Modelling tools aim to generate BPEL code automatically and enable non-technical business analysts to control process and orchestration without exposure to code. It is this code that orchestrates a set granular services invoking each sequentially to complete an end-to-end business process. Web Services provides the technical integration by which interoperability can be achieved. By utilising the internet as a transportation layer government bodies are no longer reliant on specific middleware and integration technologies. Value to local government The service orientated nature of much local government activity makes SOA very important. It enables a rich level of communication between applications packaged as services. If defined correctly, these services can provide a significant self-service capability for councils and governments. A further benefit of this service oriented approach, particularly due to the standards-based approach to interoperability is to allow greater collaboration between councils and their partners. In time, with a greater adherence to the SOA approach, a council will be able to share information more effectively with its local Police force, community groups and PCTs for example. In many cases services can be reused across government sectors and councils where a task such as paying a tax or parking charge is duplicated in a number of locations. This gives the flexibility in the organisation, to change business processes and to outsource parts of the services. Development costs are also significantly reduced as services can simply be subscribed to, reducing procurement activity and avoiding the software development process. Examples Several local authorities in London including the City of Westminster and Tower Hamlets have installed Fiorano Softwares SOA-based Enterprise backbone software to integrate local authority and social services systems. Halton Borough Council in Cheshire met the 2005 Modernising Government deadlines a year early by installing Cape Clears SOA-based software to integrate key applications. These include its back-office systems, its Clarify CRM system, and its content management system. The integrated system gives a single, integrated view of individual citizens and their interactions with the Council. 21618 rt Ripe for the pick 18/10/07 12:02 Page 17 18 Ripe for the picking? Technology futures in local government Examples Sefton Council has installed Mayrises XML-based middleware to improve services for its 300,000 residents with a new contact centre that connects electronically to the councils computer databases. The council is linking its Mayrise management systems to its contact centre which handles up to 2000 calls per day. The first phase sees integration of refuse collection and street cleaning systems with the councils CRM, Northgate Front Office and will enable contact centre staff to access live records while taking calls. The second phase will provide access to street lighting and highways information. Value to local government Middleware is a tried and tested technology for connecting applications which need to share data, regardless of operating platform. Local government can use it to link applications across departments and to external partners the most obvious example being the Government Connects initiative which is a range of secure communication initiatives, designed to allow local authorities to join-up with other bodies. It offers for example, the ability to authenticate the people and organisations with whom the authorities need to communicate. More extensive implementations of middleware are transforming councils by enabling the introduction of CRM systems and portals which can talk to back-office systems. Citizens can potentially make one phone call or log-on to a portal to deal with multiple queries. Creating a more effective front-office makes the back-office more efficient and allows experts to have greater focus on their core activities. Mature GUI-based, business process modelling tools have helped refine the development of middleware-based integration. They allow human interaction to complete and progress end-to-end processing in a consistent manner. Used in conjunction with Business Process Execution Language (BPEL), these tools can be used to automate business processes with workflow engines and orchestration although this is still in its infancy as a development technology within government circles. GC Exchange is a government sponsored middleware solution which enables ICT systems to exchange information by translating data from one format into another. It incorporates LGOL-Net, (originally Govnet) part of a Pathfinder project designed by Sunderland City Council. It was further developed under the Local Authority Websites National Project. As part of the enhancement of LGOL-Net for Government Connect scheme, GC Exchange will include guidance and pre-loaded applications for local authorities. Barriers The main barrier to SOA is a lack of understanding about what it can do. Although it can bring long-term cost saving benefits, the move from traditional siloed applications to a service model is a non-trivial task. The skills and experience to achieve this difficult transition are in short supply. All of the major ICT vendors are promoting SOA including IBM, Microsoft and BEA. But as the hype around SOA fades, many are now asking how SOA can effect local government ICT. In environments where functionality is coupled directly to local applications, the concept requires considerable analysis and in some cases initial redevelopment work. Finally there are concerns about the performance of service-based applications. Extra generalised processing could incur a performance overhead and infrastructures then need to be tuned accordingly to meet service level agreements. Verdict flowering All of the major ICT vendors are promoting SOA including IBM, Microsoft and BEA. But as the hype around SOA fades, many governments are asking how SOA can affect local government and council ICT. SOA is being used by all the vendors to describe a plethora of new technologies and there is still some confusion. Authorities should be aware of how process and organisational changes can realise the benefits. The standards base is still evolving but is now well advanced and widely supported. Long-term benefits of SOA will only come from extensive cooperation and initiatives such as Government Connects which will join up agencies and enable enhancements of business processes. Middleware Background Middleware surfaced originally in the 1980s from distributed client/server systems where it provided ways to link applications together at the transaction level. Since then, middleware has evolved into an enabler for higher level integration of business processes. For local government, such technologies are facilitating the transformation of councils, by enabling contact centres to manage the front line of citizen-interaction and reengineer the way in which the back office works. Developers can now use graphical user interface (GUI) business process modelling tools to integrate applications. Middleware also enables an extra layer of processing which can add new functionality to existing systems such as data interception, extra validation or transformation. Middleware is therefore very closely aligned to the transformation of local government because of the benefits it can bring to enabling efficient business processes and improving services through joined up working. 21618 rt Ripe for the pick 18/10/07 12:02 Page 18 19 Ripe for the picking? Technology futures in local government Barriers The main problems with middleware are the upfront costs and the upheaval associated with implementing it. Significant design effort and analysis of data structures is required before any middleware technology is deployed. It can be hard to justify the business case for single integration projects. Multiple integration projects over the long term, however, can yield a return on investment. Integration strategies are often poor and need to be of a higher standard to ensure success. The technology including infrastructure cost and modelling tools is relatively expensive. The lack of standards across vendors middleware products could be a barrier to interoperability. And the need for ICT support staff to understand a wide range of vendor tool sets could increase staff costs. Verdict ripe fruit While middleware is a proven method of integrating applications, it is complex and expensive technology to implement. More importantly, much of the space where middleware has proved successful is under siege from more advanced, service-based approaches such as SOA. Thin-clients and Data centralisation Background Thin-client computing is a return to an earlier model of computing the central mainframe and the terminal network. It offers cost savings to local government by centralising infrastructure costs and creates better services through the central management of data. Important case files for example cannot be left on one persons hard-drive, and data processes are forced to be more effectively managed and controlled. The processing load and data storage are centralised on a single server complex with only the presentation technology or GUI resident on thin-client terminal. Centralised processing and data storage makes it easier to manage and control IT. Generally only the server software needs to be changed when an upgrade or enhancement is made. Thin-client technology such as Citrix have helped to spread the concept and provide secure, remote access to enterprise applications. Value to local government Thin-client technology and data centralisation bring infrastructure management under stricter control. Deployment of and upgrades to systems are, therefore, easier to control and less expensive than with distributed systems. Similarly, centralising data enables tighter control and more robust back-up and recovery. Examples The London Borough of Greenwich has implemented a Thin- client Initiative to standardise IT and improve the quality and security of vital data, reducing the potential for corruption. It allows users to log on via terminals to network services and provides a standardised desktop. The London Borough of Hammersmith and Fulham replaced its personal computers and green-screen terminals with thin-client technology. The Council supports about 100 office locations and uses several Microsoft applications, which run on servers using Microsofts Windows Terminal Services and Citrix MetaFrame. The new thin-client system integrates current Windows-based and legacy operating systems, the Internet, email and desktop applications. Hampshire County Councils Hantsnet service uses thin-client technology to cut support and upgrade costs. Local government departments across Hampshire now have access to cost-effective modern applications aimed at delivering better services to citizens. The council says it expects to make annual savings of at least 4 million each year. Hantsnet was joint winner of the 2005 e-Government Efficiency award. 21618 rt Ripe for the pick 18/10/07 12:02 Page 19 20 Ripe for the picking? Technology futures in local government Thin-client technology also makes networks more secure by removing responsibility for access from the terminal to the server. It is harder for rogue software to penetrate the system and data is more difficult to steal. The terminals themselves are also more future proof, and can be used for longer periods, reducing the refresh cycle and therefore the cost. Councils can gain benefit from the increased flexibility thin-client technology brings to support hotdesking, access-anywhere, mobile and remote working. Barriers Thin-client technology relies entirely on the central server complex to carry out processing. Not only does this mean network failure leads to no IT being provided, it also increases the administrative burden for central IT functions. Thin-client technology, therefore, demands robust networks and resilient central systems. Failover systems, load balancing and server clustering can provide the right level of resilience. Good performance relies on high bandwidth. Coverage is still patchy across the UK, but improving. The biggest barrier to thin-client computing is not technical, however. PC users may resist attempts to take power away from the desktop and resent new ways of working which take their data away from them. Verdict ripe fruit The simple model of a centralised processing and a terminal network is a well-proven method of distributing computer power. It is relatively easy and low cost to manage and provides a more secure environment than open PC networks. When combined with convergent technologies such as VoIP telephony, thin-client technology and data centralisation could solve many of the security, management and data integrity challenges. When combined with convergent technologies such as VoIP telephony, thin-client technology and data centralisation could solve many of the security, management and data integrity challenges. Architecture the Deloitte bottom line The infrastructure technologies needed to build a service model of computing are moving forward quickly. SOA provides a standards- based framework to deliver processes packaged as services and middleware enables high-level business process modelling to create reusable service packages. Both are long-term technologies and demanding to implement but they have substantial backing by vendors and are expected to dominate. Thin-client technology offers a relatively low-cost, low-effort method of centralising control of enterprise networks and data stores a useful step towards the service model. 21618 rt Ripe for the pick 18/10/07 12:02 Page 20 Conclusion The UK government has laid out a clear vision of how technology can cut costs, improve efficiency and deliver better services to citizens. The Transformational Government strategy notes: The specific opportunities lie in improving transactional services (eg. tax and benefits), in helping front-line public servants to be more effective (eg. doctors, nurses, police and teachers), in supporting effective policy outcomes (eg. in joined-up, multi- agency approaches to offender management and domestic violence), in reforming the corporate services and infrastructure which government uses behind the scenes, and in taking swifter advantage of the latest technologies developed for the wider market. There are numerous examples of local authorities grasping the nettle and deploying the technologies described above successfully. Continued future development will depend on greater collaboration across government departments both technologically and financially to gain from the economies of scale and the spread of best practice. Individual authorities will need to frame the development and deployment of new technologies in the context of local demands. But at the same time, they must take account of the wider context and look for opportunities to apply working technology solutions from other areas such as national government and the private sector. The evidence suggests that, while there is still a long journey ahead to reach the ideal ICT environment to support local government, the first steps have been taken and the benefits are quantifiable. Ripe for the picking? Technology futures in local government 21 Contacts For more information, please contact Mike Turley UK Public Sector Leader +44 (0)20 7303 3162 mturley@deloitte.co.uk Chris Sullivan Local government, London and South East +44 (0)20 7303 4646 chsullivan@deloitte.co.uk Bill Cooper Local government, South Wales and South West +44 (0)20 7007 7907 billcooper@deloitte.co.uk Mark Lawrie Local government, Midlands and Wales +44 (0)121 695 5981 mlawrie@deloitte.co.uk David Harker Local government, North West and North East +44 (0)113 292 1934 dharker@deloitte.co.uk Robert Wilson Local government, Scotland +44 (0)131 535 7437 robewilson@deloitte.co.uk Paul Clarke Northern Ireland +44 (0)28 9053 1121 paclarke@deloitte.co.uk Mike Maddison Head of UK Security & Privacy +44 (0)20 7303 0017 mmaddison@deloitte.co.uk 21618 rt Ripe for the pick 18/10/07 12:02 Page 21 Member of Deloitte Touche Tohmatsu In this publication, references to Deloitte are references to Deloitte MCS Limited, a subsidiary of Deloitte & Touche LLP. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (DTT), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each others acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. For more information, please visit our website at www.deloitte.co.uk This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte MCS Limited would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte MCS Limited accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Deloitte MCS Limited 2007. All rights reserved. Registered office: Hill House, 1 Little New Street, London EC4A 3TR, United Kingdom. Registered in England No 3311052. Designed and produced by The Creative Studio at Deloitte, London. 21618 rt Ripe for the pick 18/10/07 12:02 Page 22