Reengineering Through Information Technology

[David Farber <farber () central cis upenn edu>]

[ I have the complete report and it is long. I can send it if desired on
request .. djf]


                            THE WHITE HOUSE


                      Office of the Vice President


________________________________________________________________________
For Immediate Release                                       May 27, 1994




          *****************************************************
          Reengineering Through Information Technology - Part I
          *****************************************************


         Accompanying Report of the National Performance Review
                             September 1993


 Contents
 ********


 Executive Summary....................................................1


 Strengthen Leadership in Information Technology


 IT01:     Provide Clear, Strong Leadership to Integrate
           Information Technology into the Business
           of Government..............................................9




 Implement Electronic Government


 IT02:     Implement Nationwide, Integrated Electronic
           Benefit Transfer..........................................17


 IT03:     Develop Integrated Electronic Access to Government
           Information and Services..................................23


 IT04:     Establish a National Law Enforcement/Public
           Safety Network............................................29


 IT05:     Provide Intergovernmental Tax Filing, Reporting,
           and Payments Processing...................................33


 IT06:     Establish an International Trade Data System..............37


 IT07:     Create a National Environmental Data Index................41


 IT08:     Plan, Demonstrate, and Provide Governmentwide
           Electronic Mail...........................................43




 Establish Support Mechanisms for Electronic Government


 IT09:     Improve Government's Information Infrastructure...........51


 IT10:     Develop Systems and Mechanisms to Ensure
           Privacy and Security......................................57


 IT11:     Improve Methods of Information Technology Acquisition.....65


 IT12:     Provide Incentives for Innovation.........................71


 IT13:     Provide Training and Technical Assistance in Information
           Technology to Federal Employees...........................77




 Appendices
 A.     Summary of Actions by Implementation Category................83


 B.     Methodology..................................................85


 C.     Glossary.....................................................87


 D.     Accompanying Reports of the National Performance Review......91






 Implementation Categories


 Each action is followed by a number in parentheses that indicates the
 necessary avenue for effective implementation. Appendix A organizes all
 actions according to these categories.


 (1)  Agency heads can do themselves


 (2)  President, Executive Office of the President, or Office of
      Management and Budgetcan do


 (3)  Requires legislative action


 (4)  Good idea, but will require additional work, or may be better
      suited for future action


 Abbreviations


 ACS        Automated Commercial System
 AFDC       Aid to Families With Dependent Children
 Arpanet    Advanced Research Projects Agency Network
 ATM        Automated Teller Machine
 BBS        Bulletin Board System
 CD-ROM     Compact Disk-Read Only Memory
 CSIT       Customer Service Improvement Team DOC  Department of Commerce
 DOD        Department of Defense
 DOE        Department of Energy
 DSS        Digital Signature Standard
 EBT        Electronic Benefit Transfer
 EDI        Electronic Data Interchange
 EDP        Executive Development Program
 EFT        Electronic Funds Transfer
 EPA        Environmental Protection Agency
 FACET      Future Automated Commercial Environment Team
 FAR        Federal Acquisition Regulations
 FCC        Federal Communications Commission
 FCCSET     Federal Coordinating Council on Science, Engineering, and
            Technology
 FEMA       Federal Emergency Management Agency
 FIC        Federal Information Center
 FIRMPoC    Federal Information Resources Management Policy Council
 FMS        Financial Management Service
 FNC        Federal Networking Council
 FNS        Food and Nutrition Service
 FOIA       Freedom of Information Act
 FRA        Federal Records Act
 GAO        General Accounting Office
 GITS       Government Information Technology Services
 GSA        General Services Administration
 HHS        Department of Health and Human Services
 HUD        Department of Housing and Urban Development
 IBIS       Interagency Border Inspection System
 ICN        Iowa Communications Network
 IITF       Information Infrastructure Task Force
 INS        Immigration and Naturalization Service
 IRM        Information Resources Management
 IRS        Internal Revenue Service
 ISOO       Information Security Oversight Office
 IT         Information Technology
 MOU        Memorandum of Understanding
 NARA       National Archives and Records Administration
 NASA       National Aeronautics and Space Administration
 NII        National Information Infrastructure
 NISP       National Industrial Security Program
 NIST       National Institute of Standards and Technology
 NOAA       National Oceanic and Atmospheric Administration
 NSA        National Security Agency
 NSF        National Science Foundation
 NSTAC      National Security Telecommunications Advisory Committee
 NTIA       National Telecommunications and Information Administration
 NTIS       National Technical Information Service
 OIRA       Office of Information and Regulatory Affairs
 OMB        Office of Management and Budget
 ONDCP      Office of National Drug Control Policy
 OPM        Office of Personnel Management
 OSTP       Office of Science and Technology Policy
 PC         Personal Computer
 PDD        Presidential Decision Directive
 PIN        Personal Identification Number
 POS        Point of Sale
 PRD        Presidential Review Directive
 PSN        Public Switched Network
 R&D        Research and Development
 SES        Senior Executive Service
 SSA        United States Code
 USDA       United States Department of Agriculture
 USPS       United States Postal Service
 VA         Department of Veterans Affairs
 WCF        Working Capital Fund
 WIC        Women, Infants, and Children




 Executive Summary
 *****************
      When it comes to information technology, horror stories abound in
 both the public and private sectors.  In some cases, the federal
 government is woefully behind the times, unable to use even the most
 basic technology to conduct its business. At one point, for instance,
 three Agriculture Department bureaus were supposed to share a computer
 system toimprove the management of food and subsidy programs. Five years
 later, they still could not resolve differences over testing,
 installation, and maintenance.


      In society at large, the widespread use of new technology has
 caused problems that include threats to personal privacy and safety. In
 Brooklyn not long ago, crooks used a hidden video camera to watch people
 withdrawing money at ATM machines. By recording personal identification
 numbers, the cameras helped the crooks later make unauthorized
 withdrawals.


      Nevertheless, information technology has brought the convenience of
 revolutionary change to everyday life, from ATM machines at banks to
 global transfers of funds, from 800 telephone services to personal home
 computers, "e-mail", and the worldwide Internet computer
 telecommunications system. Whatever its problems, the information
 technology revolution is upon us. One author calls such technology the
 most powerful tool for change in the modern era.[1]


      American businesses, particularly the smarter ones, are taking
 notice.  As the cover text of a recent book proclaims, "Computers and
 telecommunications are reshaping the basic structure of American
 enterprise, and any competitive business must realize the new technology
 either to improve its products and services or to create entirely new
 ones.[2] The private sector is employing information technology to
 reengineer the way it does business, using human and material resources
 more efficiently and competing more effectively.


 -Lagging Behind-
      For various reasons--some regulatory, some legislative, some
 cultural--the federal government lacks appropriate access to the most
 efficient, costeffective information technology products and services.
 The government has lacked not only strong leadership in this area, but
 also a coherent plan on how to most effectively tap information
 technology 's potential. This report provides Washington with a road map
 to the future.


      The government must not apply information technology haphazardly or
 sporadically. It also should not simply automate existing practices.
 Instead, public officials should view information technology as the
 essential infrastructure for government of the 21st Century, a
 modernized "electronic government" to give citizens broader, more
 timely access to information and services through efficient, customer-
 responsive processes.


      For practically everyone, dealing with the government is
 complicated. Americans complain that government is too slow or confusing
 in delivering its services or that they have too many places to call or
 go.  Government employees complain even more about trying to deal with
 other parts of government. A big reason is the incredible volume of
 information that government processes and files.


      Information technology, with its ability to electronically store
 and rapidly sort, transmit, and access information, is the key to
 solving this problem. If MasterCard can resolve a credit card issue at 1
 a.m. and Federal Express can find the location of a package anywhere in
 the world, then, theoretically at least, government can do as well. But
 while technology solutions exist, government is falling dangerously
 behind the private sector in using technology to deliver services.


 -Catching Up-
      President Clinton and Vice President Gore want to use information
 technology to improve Americans' quality of life and reinvigorate the
 economy. The administration has identified technology as the "engine of
 economic growth." [3]  Among its top priorities is accelerating the
 development of a National Information Infrastructure of high-speed
 telecommunications networks, advanced computer systems, and software.


      Today, information technology can create the government of the
 future, the electronic government. Electronic government overcomes the
 barriers of time and distance to perform the business of government and
 give people public information and services when and where they want
 them. It can swiftly transfer funds, answer questions, collect and
 validate data, and keep information flowing smoothly within and outside
 government. But making electronic government a reality requires two
 things: (1) leadership to place information technology at the center of
 the business of governing, and (2) commitment to the necessary support
 mechanisms.


      This report outlines a three-part agenda for spreading information
 technology's benefits to the federal government: (1) Strengthen
 Leadership in Information Technology, (2) Implement Electronic
 Government, and (3) Establish Support Mechanisms for Electronic
 Government.


 -Strengthen Leadership in Information Technology-.
      The recently created Information Infrastructure Task Force (IITF)
 can provide leadership in integrating information technology into
 systems that support government's operation.[4] Chaired by the
 Secretary of Commerce, this task force is responsible for articulating
 and implementing the President's vision for advanced telecommunications
 and computing technology. It is uniquely positioned to help develop the
 governmental aspects of America's information infrastructure. The
 President should expand the task force's work to include a Government
 Information Technology Services (GITS) Working Group which, in turn,
 would collaborate with state and local governments as well as the
 private sector.


      The GITS Working Group should work with the IITF to develop a
 strategic vision and an implementation plan for using government
 information resources across and within agencies, and develop steps to
 improve how government provides information and services to the public.
 The working group should also develop strategies to empower information
 technology management in federal agencies and set priorities for sharing
 information among agencies. In addition, GITS should be the focal point
 for implementing the actions of this report.


 -Implement Electronic Government-
      Electronic government extends the idea first seen in electronic
 banking. Just as ATMs, plastic access cards, and nationwide networks
 have made banking more convenient, electronic government will make
 communicating with government easier and faster. Obviously, as in
 electronic banking, privacy and security issues must be addressed here
 as well.


      We propose seven initiatives to inaugurate the electronic
 government. They provide dynamic opportunities to improve the efficiency
 and easy use of government services. Their implementation will provide
 substantial return on investment through increases in productivity.


 -Integrated Electronic Benefit Transfer-
       Electronic benefit transfer will use information technology
 present in the financial industry to deliver, nationwide, fast and
 efficient government assistance--including Food Stamps, Social Security
 benefits, and veterans' benefits.


 -Integrated Electronic Access to Government Information and Services-
      Access to government is a right of Americans. Existing technology
 makes possible the integrated electronic access to government
 information and services. The use of a single nationwide 800 telephone
 number would simplify access to government agencies. Electronic
 government kiosks that use technology similar to that in ATMs can
 provide "one-stop shopping" for both government information and
 services. Personal computers may also be used to access electronic
 bulletin board systems, databases, and agency directory services.


 -National Law Enforcement/Public Safety Network-
      A National Law Enforcement/Public Safety Wireless Network will
 improve coordination and communication among federal, state, and local
 law enforcement and public safety agencies, and will save money. It must
 first focus on establishing standards for sharing information and
 implementing appropriate privacy and security measures.


 -Intergovernmental Tax Filing, Reporting, and Payments Processing-
      The IRS already has on file all the tax information needed to
 calculate the taxes due for about 60 million taxpayers because financial
 institutions and employers are required to report this information. Yet
 IRS and state tax agencies still require taxpayers to compute what IRS
 already knows. If IRS computed taxes and sent a statement, and if
 electronic filing were used for all others, IRS and state agencies could
 forgo the mailing of 75 boxcars of forms to taxpayers--and certain
 classes of taxpayers could ultimately not need to file. For others, they
 will need to file only once. Enormous administrative savings would
 accrue to government and the burden on taxpayers would be reduced.


 -International Trade Data System-
      To help ensure the nation's competitiveness inglobal markets, the
 Treasury Department should create an all-inclusive database for
 disseminating international trade data, for use by the government and
 the trade community.


 -National Environmental Data Index-
      The National Oceanic and Atmospheric Administration should create a
 National Environmental Data Index to coordinate the development and use
 of environmental data gathered by various government agencies. Its goal-
 -to give government, the private sector, academia, and citizens easy
 access to environmental information.


 -Governmentwide Electronic Mail-
      In the private sector, e-mail and messaging systems are becoming as
 common as the desktop computer. Governmentwide electronic mail is a
 natural progression from paper-based government to an electronic govern-
 ment. E-mail allows rapid communication among employees across agency
 boundaries. The administration should work with Congress to resolve
 issues regarding what constitutes a government record created by e-mail,
 and how to ensure appropriate security in
 using e-mail.


 -Establish Support Mechanisms for Electronic Government-
      The administration isworking with the private sector to more
 quickly develop a broad, privately operated national information
 infrastructure (NII). The NII "will revolutionize the way we work,
 learn, shop, and live, and will provide Americans the information they
 need, when they need it, and where they need it--whether in the form of
 text, images, sound, or video."[5]  This capability will "enhance the
 productivity of work and lead to dramatic improvements in social
 services, education, and entertainment."[6] Nevertheless, this bright
 future can only become a reality if we adopt "forward-looking policies
 that promote the development of new technologies and if we invest in the
 information infrastructure for the 21st Century."


      The public and private sectors both must help improve the nation's
 information infrastructure. Federal officials have a special
 responsibility since the government produces information resources, uses
 them and makes policy for their use, acts as a catalyst for their
 development, and delivers services through them.[7] The government
 should extensively use the emerging national information infrastructure
 that American industry is creating and refining. In a recent report, the
 President of the National Academy of Public Administration writes,


      Information is pivotal to the vitality and productivity of
     government services and the nation's economic competitiveness.
     At issue is whether we can use information technology effectively
     to empower government, the private sector, and citizens alike. The
     complexity of today's world demands that the public and private
     sectors not only learn to master this tool, but also work
     cooperatively to maximize the national benefits.[8]


      The infrastructure will allow the government to consolidate and
 modernize its data processing centers and standardize some of
 government's basic administrative functions, such as payroll, personnel
 record-keeping, management information systems, and financial and
 general ledger accounting. The GITS Working Group should develop an
 implementation plan for consolidating data processing installations and
 reengineering common application systems.


      The administration recognizes that initiatives to bring electronic
 government to the public require strategic relationships between
 government and the private sector. These relationships must include
 necessary incentives for innovation. Agencies should be able to retain a
 portion of savings produced through information technology for
 reinvestment, and use multi-year funding for information technology
 projects. The government should promote performance-based contracting
 for information technology products, allowing the private sector to
 increase its profits if it can find ways to make government run more
 efficiently and cost-effectively.  It should create a governmentwide
 venture capital fund to finance innovative information technology
 projects within agencies.


      Success in implementing electronic government also depends on
 public confidence. Electronic government must protect the information it
 processes and ensure individual privacy. It also must protect national
 security interests, permit legitimate law enforcement activities,
 enhance global competitiveness and productivity for American business
 and industry, and ensure civil liberties. The government must define
 uniform privacy protection practices and generally accepted principles
 for information security. It also must adopt a digital signature
 standard, and it must promulgate encryption standards for sensitive
 information.


      The government also must expedite and simplify how it acquires
 information technology.The market for computer hardware and software
 involves products for which the shelf life can be as short as a few
 months. In this environment, the government needs aggressive, innovative
 purchasing methods. The General Services Administration's (GSA's)
 current schedules should be replaced with a real-time, on-line
 electronic marketplace.  Dollar limits on agency delegations of
 procurement authority and on credit card purchases for commercial
 information technology items should be raised significantly.


      Federal employees must get training and technical assistance in
 information technology. The government should create a program to train
 nontechnical senior executives and political appointees. Moreover, the
 Office of Personnel Management and GSA should establish information
 resources management (IRM) competencies for federal employees pursuing
 appointments to IRM management positions.


      Finally, because the new technology allows a physical restructuring
 of the organization, making it less hierarchical, employees at all
 levels should be able to interact electronically, sharing ideas and
 helping one another with on-line resolution of information technology
 problems.[9]


      The quicker the federal workforce embraces the possibilities of
 information technology, the sooner the initiatives of electronic
 government can become a reality benefiting the public. By reengineering
 through information technology, the Clinton administration will provide
 the leadership, vision, and commitment to bring government into the
 Information Age.


 Endnotes
 1. Davenport, Thomas H., Process Innovation: Re-engineering Work through
 Information Technology (Boston: Ernst & Young, 1993), p. 1.


 2. Davis, Stan, and Bill Davidson, 2020 Vision  (New York: Simon and
 Schuster, 1991), front cover.


 3. President William J. Clinton and Vice President Albert Gore, Jr.,
 Technology for America's Growth, A New Direction to Build Economic
 Strength (Washington, D.C.: U.S. Government Printing Office (GPO),
 1993), p. 7.


 4. The Information Infrastructure Task Force was formed by the National
 EconomicCouncil and the Office of Science and Technology Policy in May
 1993. It is a federal government interagency task force consisting of
 representatives from federal agencies involved in telecommunications and
 information policy. The task force addresses issues that promote the
 application of the National Information Infrastructure.


 5. See Federal Coordinating Council for Science, Engineering, and
 Technology, High Performance Computing and Communications: Toward a
 National Information Structure (Washington, D.C.: Office of Science and
 Technology Policy, 1993).


 6. Council for Competitiveness, "Vision for a 21st Century Information
 Infrastructure," Washington, D.C., May 1993.


 7. U.S. Office of Management and Budget, Information Resources
 Management Plan of the Federal Government (Washington, D.C.: GPO, 1992),
 p. III-8.


 8. National Academy of Public Administration, The Information
 Government: National Agenda for Improving Government through Information
 Technology (Washington, D.C., 1993), p. iii.


 9. Morgan, Gareth, Riding the Waves of Change (San Francisco: Jossey-
 Bass, 1990), p. 102.