Presentation by Joel Magnussen in support of D7 KM initiative.

2. What If… … everyone knew everything … imagine what we could do…!? and information wasn’t lost … … or hard to find … … and lessons learned were really learned

3. D7’s Information Journey 1997 Budget in the sunshine D7 Portal – “What if Everyone Knew Everything?” D7 Business Branch CO conference speech – Launched unit web pages D7 University – concept born PMT Charter - Performance Measurement Team Innovation Management Board MHLS - information management becomes paramount D7 University: launched 7/1/02, 200 users by 10/1/02. Office of Information & Knowledge Management Transition – DOT to DHS 1998 2000 2004 2002

4. What Do You Know?: Relatively meaningless standing alone Crystal clear picture if painted properly Difficult to capture, but powerful over time Data Information Knowledge Focus on the INFORMATION

5. Orientation Chart Strategy Performance Content Quality & Performance Learning & Innovation Alliances Partnerships Project Portfolio Policy & Guidance Risk Management Info Management RSAs / RSPs Forecasting & Trends Quality Assurance Business Intelligence Change Management ROI measurement Performance & Process Improvement Case Management D7 Portal D7 University GIS Personalization Emerging Technologies Statistical Analysis ESU Liaison Convergence Mobile Devices Satellite Security Voice Technologies Wireless Transport “ Influence Strategy & Resource Allocation” “ Do better at what matters most” “ Automate Knowing & Learning” “ Deliver using best technology affordable”

7. Know What Matters Where will the next SAR case occur? Should we look at cost or ROI? Who does not know what they need? What needs our attention right now and why? How-where should D7 spend its next dollar? What is opportunity cost of a broken asset? With better information, we’d get good answers to great questions we might never ask…

8. Meaningful Ratios Meaningful RATIOS mean more than single data points: Return on Investment (Revenue/Investment) Return on Assets (Net Income/Assets) The return on assets ratio measures how well a company's management team is doing its job. The ROA ratio reveals how much production management has been able to squeeze from each dollar's worth of a company's assets. This ratio is used to evaluate a company's leadership. What ratios matter most to D7? What is our EPS? Stock Price? Do we have red flag mechanisms in place? A few corporate examples -

9. From Data to Action Director of Information service offering: Use Good Data Understand Context Build Meaningful Ratios Paint Information Picture Know full story, Take better action

11. Information Impacts Us All Front Office “ I need an improved basis for strategic decision-making” Division “ I need a greater understanding of the impact of my resource allocation decisions” Branch “ I need to more clearly understand and influence performance results” “ I should be able to find information more quickly, with less effort, anytime I need it” Staff

12. Business Case

14. Summary Trend Vector Where Information Management might lead: SAR LE M ATON D7 Summary Trend Time Mission

15. Managed Information Flow External Field Staff (o) (s) Office of Information & Knowledge Management (m) (dcs)

16. Products & Services Tactical Operational Strategic Level 3 Information Integrated measures given in context, with relevance, meaning and causal factors. Level 2 Information Ratios offering comparative analysis, trends and forecasts. Level 1 Information Single data points depicting point in time understanding – but no long term analysis.

17. Knowledge & Learning The Knowledge Sharing Problem Any company suffers when the right organizational knowledge is not applied to actions that determine the company's success. The underutilization of human capital is compromising businesses everywhere. According to IDC, the inability to provide the right knowledge to the right people at the right time is expected to cost Fortune 500 companies over $57 billion over the next two years.

18. Collaboration “ Time To Get Serious About Collaboration” Collaboration has a certain aura usually reserved for religious ideology…but market realities dictate we become better at working with…partners. A company can no longer afford to be the sole proprietor of its own…[information] supply chain. Companies have to identify ways to manage…communities…with the appropriate mix of organizational and technical tools. By John Fontanella February 1, 2002 InternetWeek.com

19. Collaboration “ Our philosophy from the forefront is that [information] by itself has minimal value, but when it’s part of an overall enterprise strategy…then I have … frictionless business processes that allow everyone to participate.” John Wurfl, SAP Communications Director February 4, 2002

20. What If…? Earth Sun What if we were able to build an intellectual capital framework that enables our people to think beyond traditional boundaries? What potential lies untapped because we haven’t done that yet?

21. Gartner’s Magic Quadrant The “Magic Quadrant” The Goal of Top Companies in their Industry Completeness of Vision Ability to Execute Niche Player Visionary Challenger Leader

22. Looking Ahead “ The criticality of information exploitation in business and government means that intellectual assets , collaboration and knowledge management are moving to the forefront of investment in 2002.” – Gartner, Jan. 2002

23. IT Budget Growth Rates Shrinking IT budgets are now common! All of industry must quickly rethink how to proceed.

24. Integrated Information Strategy SAFETY MOBILITY PROTECTION OF NATURAL RESOURCES MARITIME SECURITY

25. Mission Matrix Issues SAR LE ATON Marine Safety Capability? Authority? Status? Response?

26. Information’s New Impact How much do we really know? Should we know more?

27. Information Supply Chain Old - Cumbersome, time-consuming, inadequate, limited post-event learning New - Frictionless, immediate feedback, complete awareness, continual learning Event Event Alert Respond Feedback Adjust Respond Feedback Adjust Respond Feedback Debrief Message Database Alert Respond Info system alerts all parties, eliminates briefs, enables archived online discussion. Rapid response enabled due to business rules & knowledgebase capabilities. Feedback Feedback continuous to all parties, adjusting response as needed. Complete Event closed. Auto data archive satisfies system and enables instant learning. Limited learning, time consuming, duplicate effort, information void, poor decision-making, lack of fix causes repeat of same inefficiencies.

29. Future Customer Contact Data: Forrester Research & InformationWeek

30. Market Example - FEDEX Our very latest feature, dubbed Insight , adds a set of proactive notification capabilities that will alert customers to key logistics events. For instance, if a package runs into trouble at customs, FedEx will message a customer-- via e-mail, cell phone, pager, whatever --about the problem and offer some advice on how to work around the situation, Carter said. "We're going to continue to raise the information bar like that and give customers visibility into their shipping processes," he said. CIO, FEDEX, July 2001, InternetWeek.com

31. Market Research Bound by bureaucracy, the government is traditionally three to five years behind any technological advance, as it was with fax machines, PCs and local area networks. Using that rationale, the federal government is due to start talking about XML and CRM software any day now. Add those historical precedents to the government's glaring need to become more efficient because of budgetary constraints and concerns about cybersecurity… Meanwhile , citizens are likely to demand easier access to information and better service …analysts said. --CNET, Feb 4, 2002

32. Trend: E-mail Gartner Research (Maureen Grey): Through 2004, enterprise mailbox volume is expected to increase 40 percent per year. Users spend 1.5 hours each day on mailbox management tasks; by next year they'll spend an average of 2.5 hours per day maintaining their mailboxes. By 2002, 60 percent of enterprises will augment their messaging applications with a mechanism to manage must-keep e-mail. "As much as 75 percent of the enterprise's high quality insight is contained in their e-mail," asserts Kathy Harris, vice president and research area director at Gartner. "Enterprises are extending the use of e-mail to managing and coordinating business-to-business shared processes and work, and to some direct customer communication and collaboration."

33. Trend: Knowledge Management

34. Federal Support The Bush administration's proposed 2003 federal budget includes an 11 percent spending increase on information technology . The budget would give the U.S. federal government--already the world's biggest IT spender--a $50 billion IT budget next year if approved by Congress. Federal IT spending grew from $32.9 billion in 1999 to $45 billion in 2002 , according to the Office of Management and Budget. Increasing IT expenditures would support the nation's war on terrorism, its homeland security efforts and an ongoing attempt to streamline government operations , according to the proposal. - CNET, Feb 4, 2002

35. Business Intelligence (BI) Director of Information would employ full toolkit of emerging technologies – one example is Business Intelligence (BI): MISLE, CGINFO, and planned CG Portal will not do this. Data: Centralize data from multiple sources into a data warehouse Insight: BI tools analyze the data to help better understand the business Action: Act on the insight provided by BI tools by reallocating resources

36. Information Focus Points Here’s an example: The Coast Guard expends 65% of its budget on personnel salaries. More efficiency is potentially gained by attacking information improvements of this 65% than the will be gained attacking the 35% spent on operations. Therefore, improvement efforts need to focus on personal productivity - the processes our people undertake, the information they consume, and their ability to contribute more in better ways. That focus is on Information & Knowledge Management .

37. Grade Analysts estimate that 53 percent of the general federal workforce and 60 percent of senior executives will be eligible to retire by 2004. Attracting talented people , especially those with technological expertise, will be tough without competitive pay , they say. Hire a strong candidate and pay them well.

38. CG Information Network COMDT CIO/CKO D1 D5 D7 D8 Dn