But as anyone familiar with government IT projects knows, these large undertakings are fraught with risk. Federal CIO Vivek Kundra recently wrote a memo that put IT risk management in the spotlight:
Federal information technology (IT) projects too often cost more than they should, take longer than necessary to deploy, and deliver solutions that do not meet our business needs.
[W]e are undertaking detailed reviews of the highest risk IT projects across the Federal Government to address these systemic problems. In order to justify future funding for these projects, agencies will need to demonstrate that project risks can be reduced to acceptable levels.... Projects which do not meet these criteria will not be continued.
The trick is to identify dysfunctional projects early and stop them cold.
Despite the challenges, IT is simply too valuable a source of innovation to give up on, especially given the scope of our budget crisis.
One possible cost saver is the use of public cloud computing, which enables the downsizing of data centers.
The Obama administration appears headed in this direction already. Earlier this summer, President Obama issued a memo directing agencies to submit plans on how they will consolidate or reduce existing data centers over the next five years. According to Obama:
[M]any of the properties necessary for the Government's work are not operated efficiently, resulting in wasted funds and excessive greenhouse gas pollution. For example, over the past decade, the private sector reduced its data center footprint by capitalizing on innovative technologies to increase efficiencies. However, during that same period, the Federal Government experienced a substantial increase in the number of data centers, leading to increased energy consumption, real property expenditures, and operations and maintenance costs.
One of the unintended consequences of the IT boom of recent years has been the multiplication in the number of channels through which citizens can interact with government. While it sounds nice that you can pay a parking ticket over the phone, by fax, by mail, online or on your PDA, in reality these multiple channels are costly and inefficient. I've written on this idea before (Changing the Channel). Government has already consolidated and reduced channels for government-to-business services, but it hasn't really taken a hard look at cutting down the number of citizen channels -- which could be a great source of cost reduction.
Clearly, the fiscal situation and IT push within the Obama administration is sending a signal across all levels of government that a sea change is coming. Despite the somewhat scary history of IT projects in government, such innovation must continue.
But be wary. Not all projects are going to go well, and state and local governments can take some cues from the fed's leadership on risk management. Though it can be politically hard to do, pulling the plug early on a struggling IT project might be the smartest IT initiative of all.