GCC Social Security Conference - Ryiadh April 10th 2014

1 | © 2012 Oracle Corporation – Proprietary
ICT-enablement of Social Security: how digital innovation impact and transform agencies
Trends in delivering social insurance via electronic channels
GCC conference, Riyadh April 10th, 2014
Christian Wernberg-Tougaard, Director, Social Welfare, EMEA

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commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing decision.
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sole discretion of Oracle.
Safe Harbor Statement

About me ...
• Head of Social Welfare Practice, Oracle Industry Bus. Public Sector, EMEA
• Nordic Public Sector Industry Lead
• Global Lead on Error, Fraud and Corruption (EFC)
• Macro economist (specialized in Developing Economics and Labour
Economics)
• Worked with the impact of ICT on Public Sector for the last 17 years, including
being:
– Senior expert for the Danish Government / Parliament on technology issues
– Member of Board of Technologies eVoting comittee.
– Expert for the European Commission (eInclusion Policy Support Program, Safer Internet for
Children) and the European Parliament (RFID and Identity Management STOA).
– Different director roles in EMEA for IT-industry companies working with Business
Development, Strategic Marketing, Innovation & Transformation. Worked as a Management
consultant
– Head of Sector Danish Ministry of Science
• Frm. Chairman of The Danish Board for Greater IT-security
• Frm. Member of ENISA’s Permanent Stakeholder Group
Christian Wernberg-Tougaard
LinkedIn:
www.linkedin.com/in/christianwernbergtougaard
Twitter: @digitizeSociety
Blog: http://digitizesociety.blogspot.dk/
christian@wernberg.org

Agenda
• Societal ICT Transformations Impacting Public Sector
• Paradigms Impacting Social Insurance Service Delivery
• Recommendations for GCC agencies

Trends impacting Public Sector / Social Welfare
The Digital Service Society (#TDSS)
The Data & Innovation Driven Society (#TDIDS)
The CIIP Demanding Society (#TCIIPDS)
The Automated, Robot Aided Society (#TARAS)
We are creating Next-Generation of Digital Society in EU.

Some Key Trends Impacting Public Sector
Paradigm shift Technology shift

Mobility
• Everybody wants mobility and access to everything.
• It is accumulative – so more and more requirements.
• 5.7 billion mobile subscriptions by end of 2010 – including 940 million 3G connected.
• Mobile access is possible for 90% of worlds population.
• Internet access (in per cent of population):
– Nordics: 95-98%
– Europe: 60%
– Africa: 9.2%

Innovation
Invented in
1809
Invented
around
?
1859

ICT Innovation
• ICT innovation takes many forms:
– User Interfaces and ease of use.
– Interconnectivity across different platforms (ex. Netflix)
– Hardware optimization and specialization
– Product specialization – functional and industry-specific
– etc etc etc
• The complexity of the choices of which ICT innovations to include, is
overwhelming for Governments and Agencies.
• So how to choose the “right” innovations at the right time?

Prerequisites for innovation to be utilized
• The World Bank: Impact of new technology (5% market
penetration).
– 28 innovations in developed world -> 23 got penetration over 50%.
– 67 innovations in developing world –> 6 got penetration over 50%.
• Conclusion:
– Technology innovation in developed world have higher acceptance rate
and faster uptake.
– This can be explained by the fact that core infrastructure in developed
countries exists and are available for most citizens / companies.

Prerequisites for innovation to be utilized (II)
• So Governments should initially care about enabling core infrastructure
services – rather than deploy advanced eServices to citizens. What is
the point of a good service than no-one can access or authenticate?
•Governments needs to know who are
who and what is what. Who are you,
where do you live, what is your job,
how many kids do you have, what is
your school record, what is your health
record etc. All of this is meta-data that
can be connected to the MASTER DATA
(or core registration data), the data
that describes individuals, companies,
property etc.
Master Data:
•In order to secure the rightfulness of
users, citizens and companies to the
services, one needs to validate identity.
A unified PKI-infrastructure as a back-
bone service could establish this.
•Identity Management – and Roles &
Responsibilities as well as Segregation
of Duties are important items to
consider on the ”inside” of Public
Sector to prevent Collusion.
Authentication:
•Access to internet is a key requirement
in order to offer services or demand
digital service usage. As companies
often have better options to be
“mandated” to use digital services, G2B
is the obvious choice to start with. And
that might provide a better competitive
marked for broad-band connectivity.
Communication:

Focus on Three Key Innovation Areas
ICT
Consolidation
Efficiency and
Effectiveness
Skills and
Labor
A complex set of influences drives focus on transformation
These 3 key areas are investigated further in the PDF version of this
deck, as well as on my blog - http://digitizesociety.blogspot.de/

ICT Consolidation
• Governments need to be:
– Aware of the costs that can be saved on ICT consolidation.
• Datacenter consolidation and Centralized Licenses Agreements for whole
Government / Public Sector is a low-hanging fruit.
– Examining Cloud/Virtualization and Shared Service as future operation
model
• Governments are investigation how local and “Safe Harbor” cloud services
can meet their privacy protection requirements.
– Collaborating around information and data sharing
• Programs (like Schengen, Europol, EESSI, HccH’s iSupport System) will be
more globally focused – cloud would save costs, improve deployment and
reduce risks on implementation/maintenance.

Efficiency and Effectiveness
– Ready to utilize technology innovations
• Innovations in ICT has slow adoption in PS.
Eradicate the “Not-Invented-Here Syndrome”.
– Ensure cross-Agency collaboration
• Collaboration and data sharing across agencies is
good for saving costs and for citizens
– Streamlined processes
• Digitalization ready laws are together with STP
(Straight Through Processing) key words for Public
Sector Transformation.
From “save millions” to “save billions”

Citizens and Employees
– Aware of the Citizen’s Experience
• The citizen expects a comfortable journey – through health systems, through
citizens services, through the legal system.
– Ready for the demographic changes
• Governments face a triple challenge:
– Young people growing reluctance to join Public Sector,
– Most senior employees will retire and
– The aging population will increase the wage-gap between Public and
Private Sector.
– Willing to develop new service models
• This will change the operational set up of ICT. Consider data centers, cloud
and XaaS

Social Services Solution
High Level Business Process
Very MIS relevant

Digitalization of the Social Protection Staircase*
Maturity and Effectiveness!
What about Fragmentation?
Minimum Income / Social Protection Floor (ILO)
Additional Rights
Contributory
Increasingschemecomplexity
Increasing Effectiveness & Maturity of Digitalization of Social Welfare / Social Security
(*) Based on Fabio Durán-Valverde (ILO) presentation at 13th ISSA ICT conference, Brasilia, 2012 and own adds.
Social
Insurance
Funded
Own payments
to extra
pension, extra
healthcare etc.
Universal Law
Granted Rights
The Nordics
Nigeria: Mandatory
contributions from
Employers for Social
Insurance (NSITF)
Netherlands: Complex
Digitalization of Social
Security (UWV) and Old-
age Pension (SVB)
Sweden: Automated
more than 12.000 rules
for a single benefit using
OPA -> achieved 99.98%
automation; and high
convinience for citizens.
Increasing:
• Rule Complexity
• Master Data
• System
• Privacy
• Stakeholders
• TCO (Cost)?

Complex
Rules
Objective
vs
Subjective
Digital
Illiteracy
Payments
Digitally
Characteristics of MIS-schemes: an ICT view!
National Differences
Rules/Policies
•These variates between MS –
not the processes.
•Hence a uniform system with
individual rules, handle the
complexities of peoples’
changes of circumstances.
ICT
•Especially among the target
group its difficult to
understand the rules
•Right people gets the right
(financial) support they are
eligible for at the right time.
Digital Inclusion
Citizens
•In Canada its estimated that
80% of Social Welfare
recipients are digital illiterates
ICT
•Enabling Assistance Centers
•Provide Screening/Application
via Smart Phone Apps.
•Empowered PVP (Public
Volunteer Partnership)
• Social Media Awareness Rai.
Automation / STP
Schemes subjective
• Subjectivity makes it
difficult to ”compute”
• Transparancy and
efficiency provided by
objective rules – OGP.
ICT
•Adress ”Digital ready Law-
making” (end-to-end).
• Subjective rules can be
transformed to objective.
Digital Payments
Gov. Pay. oldfashion
• Kenya more advanced
than EU average (Mpesa).
•The poor / homeless are
often not allowed banking
ICT
•Ecosystem that enables
poor to access/spend MIS
•Ensure functionality
alternativ/digital payment
(barcode for food),

Complex
Rules
Objective
vs
Subjective
Digital
Illiteracy
Payments
Digitally
Characteristics of MIS-schemes: an ICT view!
National Differences
Rules/Policies
•These variates between
MS – not the processes.
•Hence a uniform system
with individual rules.
ICT
•Especially among the
target group its difficult to
Digital Inclusion
Citizens
•In Canada its estimated that
80% of Social Welfare
recipients are digital illiterates
ICT
•Enabling Assistance Centers
•Provide Screening/Application
via Smart Phone Apps.
•Empowered PVP (Public
Volunteer Partnership)
• Social Media Awareness Rai.
Automation / STP
Schemes subjective
• Subjectivity makes it
difficult to ”compute”
• Transparancy and
efficiency provided by
objective rules – OGP.
ICT
•Adress ”Digital ready Law-
making” (end-to-end).
• Subjective rules can be
transformed to objective.
Digital Payments
Gov. Pay. oldfashion
• Kenya more advanced
than EU average (Mpesa).
•The poor / homeless are
often not allowed banking
ICT
•Ecosystem that enables
poor to access/spend MIS
•Ensure functionality
alternativ/digital payment
(barcode for food),
•In Sweden eligibility to the
Dental Benefit is contingent on
evaluation of more than 12.000
lines of policy/rules. Automated
this takes 1-2 seconds (com-
pared to up to 4 weeks) and
99.98% is automated.
•In Denmark around 25% of
population is functional illiterates
– why self-service is difficult.
• New instruments – like video-
self-service kiosks – helps
empower the poor/homeless.
•New Zealand (Te Tari Taake) is
leading on using ICT to enable
holistic connectivity between
”Idea->Law->ICT enablement”.
• A requirement to enable STP is
good master data management
– eg. UWV in Netherlands.
•Ireland – DSP – is currently
evaluating how to operate a
sophisticated ePayment system.
•Denmark is enabling homeless
with ”payment” through
NemKonto or ”Citizens service”
– latter might be stigmatizing.

Challenge – digitalization of subjectivity (human interaction).
• A 100% subjective evaluation of ”fit” with rules and policies gives risk for citizens to be
treated unequal -> rule of law issue. Denmark has a principle of not allowing
”evaluation/judgement” to be put under ”rule”.
• To support caseworkers doing ”human evaluation” requires strong knowledge sharing
(what did others do in similar cases) and exact information on the individual (Best in
Class Master Data).
• Automation can be achieved by incorporating digitalization thinking when drafting the
legislation / policy in order to ensure ”non-interpretation” rules and master data consistancy.

Technology Innovation: Policy Automation
Separating Processes and Rules makes Administrations much more agile.

Recommendations
#1: How to eat an Elephant without a “Silver Knife”?
#2: Build a Business Case.
#3: You are NOT unique
#4: 80/20 Rule still apply
#5: Carefully consider technology Innovations as an option.
#6: Technologies exists (Don’t have to be invented) and mature

#1: The “right” path steered by maturity and
existing investments
It’s complicated
• to eat an Elephant. Where to start?
Respectful of existing investments.
• Easier when you start from scratch / green field.
No Silver Bullet (or Knife?)
• on how to eat an Elephant – but there is best practice and experience from others.
Insight
• Would be happy to share roadmap experiences through an INSIGHT.

#2: Build a business case
ICT Transformation
•Ought to have good business case and that ROI are a matter of weeks rather than years.
Investment €/$/£ budgets are tight,
•so need to justify investments & buying, implementing and running Social Insurance not free!
Holistic Business Case
•also quantify the areas with most potential – need to balance investments with results.
“as-is” and “to-be”
•Is evaluations, so that KPI’s of transformation can be followed and documented.
A guideline moving forward

#3: You are NOT unique.
NOT Unique
• Remember: Public Sector Agencies are NOT unique from a PROCESS point of view.
Separate PROCESSES and POLICIES
• Separate “What you do?” and “How/Why you do it?”.
• PROCESSES are very similar globally, what differs are the POLICIES / RULES.
STP
• Separating PROCESSES from POLICIES also a must when addressing high-performance / efficiency and how to
enable STP – Straight Through Processing.
Use COTS
• Hence almost all requirements can be dealt with using Commercial-of-the-shelf Software and Hardware (so-
called COTS).

#4: 20% Technology, 80% Organizations
Implementing change is always a challenge.
•Enforcing collection and benefit control requires the organization to change, the citizen to
change and the ICT to change.
But the 80/20 rule do apply.
•2 streams – one on change of people, one on change of ICT.
•Ensure that the cultural change is clearly understood by citizens, companies and employees –
through awareness raising and ambassadors.
Collaborative cross-involvement
•Ensure that all stakeholders – you (agency), SI and vendor talks together.
•Recommend inaugurating ”Innovation Advisory Boards” where all parties meet every 2nd
months.

#5: Carefully consider new options
New technologies
•The Industry is constantly finding new ways and approaches to
innovate the ICT ecosystem day-by-day.
Don’t wait
•You should NOT wait for “tomorrows” technology – harvest now,
plant the seeds now.
Impact assessments
•Governments need to do an impact assessments on technology:
•Privacy Protection
•Big Data
•Social Media
•Cloud Deployment

#6: Technologies exist and are mature Big Data
Advanced Analytics
Endeca
Data Quality
Gov., Risk and ComplianceReal-time Detection
Case Management

Utilizing a step-wise approach is wise.
Step 1
•Get data electronically – go from paper to digital
Step 2
•Strengthen the master data and meta-data operation.
Step 3
•Establish a national unified secure log-in – trusted PKI
Step 4
•Establish other key core infrastructures – unified “Payment Engine”, citizens “public”
clearing bank account, citizens DocBox.
Step 5
•Enable automation / transparency through policy digitalizaiton execution based on trusted
meta-data
Depends on existing ICT, maturity and starting point which way to go!

Recommendations Social Welfare and ICT
Always Use COTS. No
Custom Coding. Let Business
do the Business.
Use Natural Language Rule
Engines. Let Business do the
Business.
EU Cloud for Cross MS
Eligibility Determination
Examine Payment options
for the citizens. And ensure
assisted self-service
Enable Transparancy of
Determination Path
Ensure automation/STP.
Always humans behind
For effective solutions, agencies should consider:
The 80/20 Rule still apply
(80% Organisation and 20% Technology)
No-one can eat a whole
Elephant in one bite.
Create implementation
dialog between Customer,
Implementer and Vendor.
Establish good master-data,
as they form the foundation
for correct determinations.
IMPLEMENTATIONBESTPRACTISE

Additional sources of information
• ISSA White Paper on Oracle and Social Services
• ISSA White Paper on Oracle and EFC
• Oracle White Paper on Child Support
• Example of Citizen/Employee Communication (British
Columbia Social Case Managment – ICM). More info
here.
• Video on Dutch Social Welfare - SVB

GCC Social Security Conference - Ryiadh April 10th 2014

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GCC Social Security Conference - Ryiadh April 10th 2014