Digital Transformation: Opportunities for innovation

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Digital Transformation Opportunities for
innovation

• Ramayya Krishnan
• Cooper Professor of Information Systems
• The Heinz School
• Carnegie Mellon University
• rk2x_at_cmu.edu

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Agenda

• Facilitating innovation through Government IT
  initiatives
• The case of E-government
• Citizen Portals
• Access to the Net and IEEE 802.11
• Interoperable access to confidential data
• Process innovation in implementation of
  interoperable PKI
• M-government
• Use to e-911 initiative to jumpstart innovation
  in commercial services

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An organizing framework
Public Policy
Technology
Strategy
Process
Competition
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Spurring innovation through IT acquisition

• Government has the potential to spark innovation
  through public private partnerships
• E-government as context
• Many potential ways of funding innovation
• NSF Digital Govt Initiative, SBIR, DARPA

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Defining E-Government

• The use of electronic systems to perform business
  and service-related transactions
• Improve internal government operations
• Intra-governmental transactions
• Government as Buyer
• Government as Seller
• Enhance the delivery of services to citizens

Source Temoshak, GSA
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Digital transformation

• The use of digital technologies internet
  technologies, information and communication
  technologies to drive fundamental performance
  improvement throughout the extended enterprise
• What is the scope of digital transformation?
• Customer, supplier, partners (resellers and
  affiliates) and employees
• Digital transformation has policy and
  technological implications

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Phases of E-government
Source cdt.org
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G2C e-government potential

• easily accessible, especially for elderly and
  disabled people
• Transparency
• Increased efficiency
• time efficient
• cost efficient

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FirstGov.gov
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Access anywhere anytime to all

• The benefits of access derive only to those who
  have internet access and increasingly to those
  who have broadband access
• Emergence of access over wired and wireless
  networks

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What is the opportunity for innovation?

• Providing low cost access?
• Providing high speed access?
• Providing mobile access?

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Understanding access structure
Switching
Switching
Node
Node
Trunks
Content provider
Terminals
Switching
Switching
Node
Node
Access
Lines
Dial up to DSL, Cable Modem-based access Mobile
access to the Net
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Evolution of access networks

• Telephone network
• Dial up
• DSL (digital subscriber line)
• Cable network
• Cable modem-based access
• Wireless
• Mobile wireless over cellular
• Wireless Application Protocol
• Bearer service and device independent

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New information appliances
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Internet Industry Structure

• 1. Customer (CUS)
• 2. Local Area Transport Provider (LAT)
• 3. Internet Access Provider (IAP)
• 4. Wide Area Transport Provider (WAT)
• 5. Internet Service Provider (ISP)

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Visual Model of Industry Structure
NAP
NAP
Private Peering
IAP
IAP
IAP
IAP
LAT
LAT
LAT
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Internet Service Economics

• Users typically pay flat rate to IAP based on
  access port speed
• IAPs are not restricted to published tariffs
  prices are often negotiable
• IAPs pay an ISP for transit to other ISPs and
  their customers
• ISPs peer with each other at public or private
  Network Access Points (NAPs) and typically do not
  pay settlements to each other

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Broadband Penetration (2001)
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Universal access to the Net

• In the US, the work of Greenstein demonstrates
  significant geographic patterns to Internet
  access related to the presence of NAPs on the
  backbone network
• Most urban areas have competitive provisioned
  access while rural areas have less than ideal
  conditions
• Policies for universal access have to take
  geography into consideration

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Broadband adoption

• Much of the debate is focused on DSL vs. Cable
• User choice of ISP
• Intellectual property protection
• Equally important is the IEEE 802.11 vs. 2.5/3G
  technologies

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Wireless LAN

• Idea just a LAN, but without wires
• Not as easy since signals are of limited range
• Uses unlicensed frequencies, low power
• 2.4 GHz
• IEEE 802.11 (wireless ethernet)
• WaveLAN 2 Mbps moving to 11 Mbps
• 5.2 GHz
• OFDM (orthogonal FDMA) modem technology (30 Mbps)
  IEEE 802.11
• HiperLAN from Europe and HiSWAN from Japan
• Upto 54Mbps
• Distance depends on construction (100-200ft per
  access point)

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GPRS
SOURCE UWC
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Range vs. Data Rates
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Substitute or Complement?

• IEEE 802.11
• Much higher data rates
• 11Mbps to 144Kbps for 3G
• Cost per base station is 500 compared to 50,000
  per base station for 3G
• But distance limited
• 100m vs. 2km
• Higher consumption of power by WLAN chipsets
  makes them not viable with cell phone power
  supplies

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WLAN/GSM Integration
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Data strategy for cellular service providers?

• Invest in their own WLAN networks?
• Unlikely given considerable investment in 3G
  networks
• Partner with WISPs (wireless ISP) that sell
  direct to the consumer such as Boingo and
  Mobilstar
• Partner with WLAN infrastructure provider that
  can provide roaming services
• SIM card enabled
• Should the government increase the size of the
  ISM spectrum?

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User-centric portals
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Access from multiple information sources
Depending on the app, read or update semantics
will be required
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Problem Scattered Clinical Data
Past Visit Info - Paper chart(s) - Hand written
notes - History/Physical/FHx - Problem lists -
etc.
Radiology System
Pharmacy System
Lab System
Current Visit Info - Symptoms - History -
Findings
Transcription System
Billing System - Stay / Visit / Cost - Dx / Rx
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Mindscape (an electronic medical record system)
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Access to multiple back-end services
Source Allaire
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The Census Bureau
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Issues with sensitive information

• The problem of inferential disclosure
• Data is collected under guarantees of
  confidentiality
• Data is released under the policy of maximizing
  access while protecting confidentiality
• General problem of relevance to all statistical
  agencies in government

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Privacy and security challenges

• Data Privacy and security
• Authentication Knowing whos on the other end
• Confidentiality Protecting data in transit
• Data integrity ensuring integrity in transit and
  storage

Source Adapted from GSA
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What is an Electronic Signature under E-SIGN
(electronic signature act of 2000)?

• means an electronic sound, symbol, or process,
  attached to or logically associated with a
  contract or other record and executed or adopted
  by a person with the intent to sign the record.

Biometric Profile
Digitized image of a handwritten signature
Knowledge-based Authentication
PIN or Password
Digital Signature or other encrypted
authentication system
Click through on software programs dialog box
Typed names
Electronic Signature requires some degree of
authentication
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The Federal PKI
DOD PKI
NFC PKI
Available to all Military personnel and dependents
Federal Bridge CA
Available to all Federal agencies
DOD IECA
GSA ACES
Available to all Government vendors and
contractors
Available to all U.S. citizens, businesses,
government agencies
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The Solution The Federal Bridge CA
FPKI Policy Authority
FBCA Operational Authority

• The Federal Bridge CA simplifies PKI
  interoperability
• Common and easy way to determine Trusted PKI
  domains and assurance
• levels (policy mapping)
• Common and, relatively, easy way to validate
  certificate status through
• cross certification
• Standard Bi-lateral Agreement between the
  Bridge and Agency CA.

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From e-government to m-government

• Wireless access to government services
• Mobile portals
• E-911 initiatives

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Total US Commercial Wireless Subscribers 1992 to
2001
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Penetration of Cellular Worlwide
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Increase in Wireless 911 Calls
50 Million
18 Million
CTIAs Year 1994 Wireless 9-1-1 and Distress
Calls Statistics NENAs 2001 Report Card to the
Nation, Statistics for Year Ending December 31,
1999
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911 Calls Wireless Vs. Wireline, YE 1999
26.5 (50 Million)
73.5 (140 Million)
NENAs 2001 Report Card to the Nation, Statistics
for Year Ending December 31, 1999
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Increase in Wireless Phone UseThe Good News for
911

• Safety remains a principal reason for purchase of
  a wireless phone
• Substantial increases in wireless subscribers
  means more people can contact public safety while
  mobile

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Increase in Wireless Phone UseThe Bad News for
911

• Wireless E911 calls more difficult to handle than
  wireline calls
• Wireline System generally can identify the
  precise fixed location of call.
• Wireless Limited or no location information
  available.

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Difficulty due to lack of ANI

• Misrouting of 911 calls.
• Takes time to obtain location of caller, even
  where caller knows and can communicate location
  information.
• Many callers do not know or cannot communicate
  location.
• Greater difficulty in determining when multiple
  calls report same incident.

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FCC Mandate on e-911

• Five years ago, wireless carriers required to
  develop and deploy technology to provide location
  information for 911 calls - based on consensus
  agreement
• Phase I E911 call back number and cell site
  location.
• Phase II E911 location by latitude and
  longitude.

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Accuracy standards

• For Handset-Based Solutions
• 50 meters for 67 percent of calls
• 150 meters for 95 percent of calls
• For Network-Based Solutions
• 100 meters for 67 percent of calls
• 300 meters for 95 percent of calls

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Implications of policy

• Location information, privacy and SMS spam
• In the US, location and telephone number may be
  used in the event of an emergency
• Service providers would like to leverage
  investment in location technology for commercial
  services
• Semantic web projects
• Knowledge of location can also be used for
  location-based spamming of ads
• However, policy is evolving on these issues

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Summary

• Government IT efforts across the whole spectrum
  of definition, acquisition and deployment can be
  an engine for innovation
• Managing the process of acquisition is a critical
  success factor