Advancing IT Innovation in Federal Agencies

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1 IT Innovation in the Federal Government Government Business Council Insight Report I 2010 Advancing IT Innovation in Federal Agencies A Candid Survey of Federal Executives Proudly Underwritten By 1

2 About the Government Business Council (GBC) The research intelligence division of the Government Executive Media Group (GEMG) Dedicated to advancing the business of government through analysis, insight and analytical independence Extension of GEMG s 40 years of editorial standards and ethical values GBC studies influential decision makers to produce intelligence-based analysis 2

3 About Our Partners Advancing IT Innovation in Federal Agencies About Red Hat Red Hat is the leader in enterprise Linux and is the most recognized open source brand in the world. We serve global enterprises with technology and services made possible by the open source model. Solutions include Red Hat Enterprise Linux, Red Hat Enterprise Virtualization, JBoss Enterprise Middleware, and a broad range of management and services. Learn more at For more information, please contact: Gunnar Hellekson Chief Technology Strategist, Red Hat US Public Sector gunnar.hellekson@redhat.com About DLT Solutions As Red Hat s Largest Government Reseller, DLT Solutions helps government agencies overcome real-world challenges through its bestin-class information technology products and superior services. From open source and virtualization to cloud computing and more, DLT provides the most trusted and innovative Red Hat solutions available to federal, state, and municipal governments. Learn more at For more information, please contact: 877-RHAT-DLT redhat@dlt.com 3 3

4 Departments and Agencies Represented* Department of Homeland Security Department of the Army Department of Transportation Department of Veterans Affairs Department of the Interior Department of the Navy Department of Commerce Department of Defense (OSD, DISA, DIA, DLA, etc.) Department of Health and Human Services Department of Treasury General Services Administration Department of Agriculture Department of Education National Aeronautics and Space Administration Social Security Administration Department of Energy Department of the Air Force Department of Justice Department of Labor Department of Housing and Urban Development Department of State Environmental Protection Agency Congress/Legislative Branch Office of Personnel Management United States Marine Corps National Science Foundation Nuclear Regulatory Commission Small Business Administration Government Accountability Office *Agencies listed in order of frequency. 4

5 Respondent Profile Job Title Areas of Responsibility n=199 n=199 Senior Executive Service 2% Operations 28% GS/GM-15 21% Technical 22% GS/GM-14 28% Finance 15% GS/GM-13 21% Human capital 13% GS/GM-12 21% Information technology 13% Other 7% Agency leadership 7% 40% Number of People Overseen n=199 Legislative Facilities and fleet management Other 4% 4% 13% 29% 17% 9% 5% 0% None Over 200 The online survey was launched in April The survey was sent by to a sample of federal executives, as well as posted in advertisements on Government Executive s Web site and newsletters. recipients were randomly selected from Government Executive s subscriber database. Respondents who accessed the survey from the site or newsletter were screened based on their answers to demographic questions, and only federal executives of GS-9 grade and above are included in the analysis. 5

6 RESEARCH FINDINGS

7 Executive Summary Overall, federal executives are not fully satisfied with their agencies IT tools and systems (such as online tools, software, hardware, etc.). Only 13 percent of respondents say they are very satisfied, and more than 40 percent say that they are somewhat or very unsatisfied with their agencies current IT tools. Respondents are more likely to be satisfied with some of the more basic or core functions of their IT departments, such as security, cost control, expertise and responsiveness; however, they seek improvement along the dimensions of innovation, flexibility, efficiency and end-user involvement. Additionally, they clearly signal the importance of their agency s IT security, and also value responsiveness and efficiency. On the other hand, federal executives are reasonably split on the priority of innovation and cost control in their IT department. Three-quarters of respondents consider end-user involvement in IT to be a high or medium priority, and most federal executives would like to have greater involvement in their agency s strategy and decision-making processes. More specifically, federal executives are most interested in becoming more involved in suggesting and testing new technology. When working with both legacy and new tools and systems, federal executives must confront a host of challenges that reduce their productivity. Half of those surveyed have experienced delayed projects due to slow IT implementation. The same percentage of respondents report issues when legacy tools or systems do not support new projects. Federal executives believe that IT innovation is a higher priority to them personally than it is for their agency or the federal government as a whole. More than 90 percent of those surveyed consider innovation a high or medium level priority for me, but only 66 percent said this for my agency and 75 percent said this for the federal government. Furthermore, most federal executives recognize that their agencies remain dependent on outdated legacy systems. Nearly three-quarters of those surveyed (72 percent) strongly or somewhat agree with the statement, my agency currently relies heavily on outdated IT systems that reduce my productivity. Only 10 percent of respondents consider their agencies to be ahead of the curve in adopting new technology. Federal executives report that a number of different issues constrain their agencies ability to experiment with new tools and strategies. The most common concern is that end users are not involved in IT strategy or decision making. End-user involvement in IT decision-making processes (55 percent), support from agency leadership (53 percent), and faster processes to get new tools up and running (53 percent) rise to the top as the three most commonly-cited requirements to increase agency innovation. 7

8 Federal Executives Not Fully Satisfied With IT Tools and Systems The Obama administration has made IT innovation a priority, and the President s political appointees understand that the smart management of technology, not simply the tools themselves, can be a primary driver to improve how government operates and even influence policy. 1 At the same time, Federal CIO Vivek Kundra has established goals to increase the efficiency and reduce the cost of data center operations, promote Green IT, and increase security through the Federal Data Center Consolidation Initiative. 2 Executives in federal agencies also see room for improving their current IT tools and systems. While 46 percent of respondents are somewhat satisfied, only 13 percent say that they are very satisfied with IT tools at their agency. Two in five respondents are either somewhat or very dissatisfied. Overall Satisfaction with Agency s IT Tools and Systems (Percentage of respondents, n=237) 41% of respondents are very or somewhat dissatisfied with their agency s IT tools and systems Very dissatisfied 13% Somewhat dissatisfied 28% Very satisfied 13% Somewhat satisfied 46% Travel, hotel, and time away from the office could be significantly reduced by use of more updated technology. Good equipment, quick repair, but seems to break down or malfunction far too often. Program applications are very stove piped and fragmented, which requires a substantial amount of duplicative work. Adequate training is not available to use the new IT tools. 1 Source: Sternstein, A. Obama s Tech Team, Government Executive, February Source: Memorandum for Chief Information Officers, February 26,

9 Security is a Top IT Priority; Responsiveness and Efficiency Also Important for Most Respondents When asked to rate the importance of various aspects of their agency s IT department, there are certain areas where federal executives come to a relative consensus. More than three-quarters of respondents report that IT security is a high priority, and nearly two-thirds say the same about responsiveness and efficiency. Some commented that security is deemed critical enough to trump other important issues. According to one respondent, Security is paramount in my agency and everything else in IT, including mission, takes a backseat to security compliance. On the other hand, federal executives are reasonably split on the priority of innovation and cost control in their IT department. While one-third of respondents say that innovation is a high priority, 40 percent say it is a medium priority and 18 percent say it is a low priority. Security n=205 Responsiveness n=206 Efficiency n=193 Flexibility n=206 Importance of Various Aspects of Agency s IT Department 51% 65% 63% (Percentage of respondents) High priority Medium priority Low priority Not a priority 76% 29% 21% 25% 21% 14% 10% 7% 2% 2% 4% 6% 6% Expertise n=196 45% 39% 10% 6% End-user involvement n=202 44% 31% 14% 10% Cost control n=200 35% 43% 16% 6% Innovation n=199 33% 40% 18% 10% 9

10 Innovation, Flexibility, and End-user Involvement Considered Areas for Development in Federal IT Departments Overall, the survey results show that federal executives are most satisfied with some of the more basic or core functions of their IT departments, such as security, cost control, expertise and responsiveness; however, they seek improvement along the dimensions of innovation, flexibility, efficiency and end-user involvement. Typically, few respondents are very satisfied with a particular aspect of their IT department. More frequently, they feel that their needs are being somewhat met, and many are either somewhat or very dissatisfied. The most notable exception is federal executives ratings of IT security. More than one-third of respondents say they are very satisfied and half say that they are somewhat satisfied with the level of security provided by their agency s IT department. Satisfaction with Various Aspects of Agency s IT Department (Percentage of respondents) % High Priority Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied 76% Security n=201 35% 51% 9% 5% 45% Expertise n=198 21% 44% 23% 12% 35% Cost control n=192 11% 52% 23% 14% 65% 63% Responsiveness n=200 Efficiency n=194 19% 15% 36% 36% 25% 33% 20% 16% 44% End-user involvement n=195 12% 33% 30% 25% 51% Flexibility n=198 12% 34% 29% 25% 33% Innovation 8% 36% 32% 24% n=197 At least half of respondents dissatisfied 10

11 Federal Executives Seek Greater Involvement in IT Strategy Federal executives are looking to play a greater role in their agencies IT strategy and decision-making processes. While almost one-third say that their current level of involvement is appropriate, nearly 20 percent reveal that they would like to have significantly more involvement, and 41 percent would like to be somewhat more involved. Federal executives are most interested in testing (43 percent) and suggesting (41 percent) new technology, and more than one-third (37 percent) would like to help implement new technology at their agency. As one respondent commented, The end user needs to be involved in all aspects, so we do not implement systems that require duplication of work. The system needs to match our business processes, or we need to make informed decision to change our business practices before purchasing the new system. No more trying to stick a square peg in a round hole. Significantly less 5% Somewhat less 3% Desired Involvement in Agency s IT Strategy & Decision-Making Processes (Percentage of respondents, n=217) Significantly more 19% Areas of Involvement in Agency s IT Strategy & Decision-Making Processes (Percentage of respondents, n=217) Testing new technology Suggesting new technology Implementing new technology 37% 43% 41% Current level is appropriate 32% Somewhat more 41% Deciding to switch from current technology Other 8% 31% None - I don't want to be more involved in IT 26% 11

12 For Many, IT Systems Fail To Keep Up With Agency Projects Federal executives face a variety of different IT challenges that reduce their productivity. On one hand, respondents recognize that legacy tools and systems that don t support new projects must be replaced, yet others say that implementation of new tools is too slow and can actually delay projects. About two in five respondents report frustration when IT is unable to respond to changing project requirements, and nearly the same percentage have experienced an unsuccessful upgrade or implementation in which data or information was lost when switching to a new tool or system. Some respondents are also conscious of the cost of IT tools and systems, with one in five reporting that their IT budget detracts from other projects. Challenges Limiting Productivity (Percentage of respondents, n=225) Projects delayed due to slow IT implementation Legacy tools/systems don't support new projects 51% 51% IT unable to respond to changing project requirements Data/information lost when switching to new tools/systems 38% 41% IT budget detracts from other projects 20% Security breaches Other 15% 14% None of the above 19% 12

13 Most Federal Executives Believe Outdated IT Systems Limit Their Productivity Federal executives believe that their IT systems must keep pace with their projects, but recognize that their agencies remain dependent on outdated legacy systems. When presented with the statement, My agency currently relies heavily on outdated IT systems that reduce my productivity, nearly three-quarters of those surveyed are in agreement. More than one-third say that they strongly agree. A minority of respondents believe that their agencies current tools are up-to-date. Ten percent of respondents strongly disagree that their IT systems are outdated and reduce productivity, and 18 percent somewhat disagree. Agency Reliance on Outdated IT Systems (Percentage of respondents, n=205) My agency currently relies heavily on outdated IT systems that reduce my productivity. 72% of respondents agree or strongly agree that their agency relies on outdated technology Strongly disagree 10% Somewhat disagree 18% Somewhat agree 38% Strongly agree 34% We are forced to use a project tracking system that was designed to meet another need, does not accurately reflect my work, and is not very straightforward to use. We have sledgehammer security. Beat everything into submission without considering functionality or efficiency. 13

14 IT Innovation Signals a Disconnect Between Federal Executive and Agency Priorities Despite the higher profile of technology under the Obama administration, and pressure to be innovative and employ online tools to boost performance, 1 federal executives believe that IT innovation is a higher priority to them personally than it is for their agency or the federal government as a whole. When asked the extent to which IT innovation is a personal priority, more than 90 percent of those surveyed consider IT innovation a high or medium level priority. In a previous question, nearly three-quarters of respondents rated innovation as a high or medium priority with regard to their agencies IT departments. In comparison, two-thirds of those surveyed believe that innovation is this important for my agency, and three-quarters said this for the federal government. Priority of IT Innovation (Personally and Perceived) (Percentage of respondents, n=207) High priority Medium priority Low priority Not a priority 92% For me For my agency 35% 45% 66% 75% 31% 47% 26% 6% 2% 8% 34 % of respondents believe that IT innovation is either a low priority or not a priority at their agency For the federal government 33% 42% 21% 4% 14 1 Source: Sternstein, A. Obama s Tech Team, Government Executive, February 2010

15 Federal Agencies Slow to Adopt New Technology While more than one-third of respondents believe that IT innovation is a high or medium priority for my agency, very few only 10 percent say that their agencies are ahead of the curve when it comes to IT innovation. Agencies are more likely to be at the beginning stages of innovation, according to federal executives. Nearly 30 percent of respondents report that their agencies are experimenting with some new technology. Nearly half of respondents (47 percent) say that their agencies are slow to adopt new technology, and 14 percent characterize their agencies as resistant to change when it comes to technology. Characterization of IT Innovation at Agency (Percentage of respondents, n=205) In the parts of the agency where end users and researchers are directly involved in software/application development, we are ahead of the curve. 29% 47% Innovation is only a medium priority because we still just need to get up to the current state of where we ought to be with IT we must be at least a decade behind. 10% 14% We're ahead of the curve in adopting new technology We're experimenting with some new technology We're slow to adopt new technology We're resistant to change when it comes to technology 15

16 Innovation Constrained by Lack of End-User Involvement in IT Strategy Federal executives report that several different issues constrain their agencies ability to experiment with new IT tools and strategies. Overall, they find that IT coordination with end users is an important component of innovation. The most common concern, reported by 57 percent of respondents, was that end users are not involved in IT strategy or decision making, and about half of those surveyed say that innovation is hindered by IT s lack of awareness of end-user needs. Nearly half of respondents say that security testing and compliance issues can stand in the way of innovation. According to one, security is usually one of the top 5 reasons why new software or hardware is not made more rapidly available. Very few, only 8 percent, find that there are no constraints on IT innovation at their agency. Constraints on Agency Ability to Experiment with or Adopt New IT Tools and Strategies (Percentage of respondents, n=201) End users not involved in IT strategy or decision making Security testing and compliance issues IT unaware of end-user needs Insufficient IT support for innovation Cultural resistance to change Training workforce on new tools Compliance with legacy systems Time-consuming processes to install and test new tools Prohibitive upfront or maintenance costs Lack of awareness of new technologies Refresh of current technology consuming resources Other There are no constraints on IT innovation 6% 8% 28% 28% 30% 37% 40% 49% 49% 46% 46% 45% 57% 16

17 Security and Performance Goals Primary Drivers for Innovation Although many respondents find that security can stand in the way of innovation, nearly half say that security and cybersecurity are actually drivers for a more innovative approach to information technology. It seems that security is certainly top of mind for executives in federal agencies, regardless of their stance. Beyond security, federal executives are looking for creative ways to do their jobs more effectively. Almost half of all respondents cited agency performance goals, and 43 percent cited productively and operational efficiency as primary drivers for innovation. Despite all of the attention innovation has received from the Obama administration, only about one-quarter of respondents consider the White House to be a primary driver for innovation in their agency. Primary Drivers for a More Innovative Approach to Information Technology (Percentage of respondents, n=201) Security/cybersecurity Agency performance goals 49% 48% Productivity/operational efficiency 43% Cost reduction/cost control 37% White House/Administration focus on IT innovation Transparency/open government initiatives New project requirements 22% 24% 24% Sustainability/"green government" initiatives 17% IT innovation in the private sector Other There are no drivers to innovate 8% 10% 13% 17

18 Federal Executives Believe IT Innovation Would Improve Agency Operations Overall, federal executives overwhelmingly agree that their agencies operations and performance would benefit from a more innovative approach to information technology. More than half, 53 percent, strongly agree with this statement and an additional 36 percent say they somewhat agree. Since agencies currently stand at various points along the spectrum of innovation, it should be noted that a more innovative approach will have different interpretations among federal executives. One respondent commented that a need for more innovation doesn t mean get rid of what we have it means more communication about what we need, a conscious choice of priorities, and a search for systems or software that seem most likely to do the job efficiently. Agency Benefits from a More Innovative Approach to Information Technology (Percentage of respondents, n=201) My agency's operations and performance would benefit from a more innovative approach to information technology. 89% of respondents agree or strongly agree that their agency would benefit from a more innovative approach to IT Strongly agree 53% Somewhat agree 36% Somewhat disagree 8% Strongly disagree 3% The federal government should be a tech leader, not a follower. Government must innovate with modern IT tools to exploit new opportunities to further the mission. My agency would tell you that innovation is a high priority, but the funding to support IT innovation is not there. 18

19 Innovation Requires End User Involvement and Support from Agency Leadership Federal executives highlight specific actions that their agencies should take to increase the current levels of innovation with regard to information technology. End-user involvement in IT decision-making processes (55 percent), support from agency leadership (53 percent), and faster processes to get new tools up and running (53 percent) rise to the top as the three most commonly-cited agency needs in order to take a more innovative approach to IT. Respondents also recognize that in order to be more innovative, agency employees must be equipped to use both legacy and new IT tools, and nearly half (46 percent) say that more training and education are needed at their agency. Agency Requirements for a More Innovative Approach to Information Technology (Percentage of respondents, n=201) Greater involvement of end users in IT decision-making processes Support from agency leadership Faster process to get new tools up and running 53% 53% 55% More training/education Increased budget for new IT tools More accessible/responsive IT department Make it easier to try new tools 46% 46% 43% 41% Make it safer to try new tools 23% Other I don't know No additional action needed to support IT innovation 5% 5% 4% 19

20 Proudly Underwritten By 20

21 Contact Bryan Klopack Director of Research Tel

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