Unleashing the Power of Information Technology Innovation to Reduce the Budget DeficitUnleashing the power of information technology (IT) innovation can help agencies bridge [the] funding gap while continuing to deliver essential mission services to the federal government.This paper contains three recommendations for using innovative information technology and processes to improve the government’s efficiency while preserving or enhancing the performance of its missions.Institute for Innovation’s 2012 Quadrennial Government Technology Review: The Quadrennial Government Technology Review (QGTR) is an initiative through ACT-IAC’s Institute for Innovation to provide senior government leaders with a discussion of some of the nation’s most pressing challenges. Over 100 volunteers from government and industry provided input to the seven papers that comprise the QGTR. Recommendations are offered to provide ways that information technology can make a positive impact on these challenges. Information technology underpins virtually every federal program and agency mission. Increased efficiency and effectiveness is especially critical to mission support, especially at times of budget shortages. This paper provides background information and recommendations developed by a cross-section of ACT-IAC members and represents a non-vendor specific, non-partisan perspective. The papers may be found at www.actgov.org/quadrennial.ACT-IAC Institute for InnovationI4I_c64652dc-2ed9-11e2-a827-ee6ee5cf9241Established in 2011, the ACT-IAC Institute for Innovation was chartered to promote innovation in the delivery of government services and operations. It develops and delivers high-quality strategic advice that reflects cross-industry recommendations based on the consensus of experts from ACT-IAC’s member companies and government liaisons. Through ethical collaborative discussion, the Institute recommends approaches to key issues affecting government where information technology can be or is a factor and a broad spectrum of perspectives is required.ACT-IACAmerican Council for Technology -- Industry Advisory Council: The American Council for Technology (ACT) is a non-profit educational organization established by government leaders in 1979 to improve government through the efficient and innovative application of information technology. ACT was created to provide an objective and trusted forum for collaboration and education. In 1989, ACT established the Industry Advisory Council (IAC) to bring industry and government executives together to collaborate on IT issues of interest to the government. ACT-IAC is a unique, public-private partnership dedicated to helping government use technology to serve the public. The organization provides programs that facilitate communication, education and collaboration. Recognized as the premier collaborative forum in the government IT community, ACT-IAC has been called “a model of how government and industry can work together” and “the Switzerland of the government IT community.” ACT-IAC welcomes the participation of all public and private organizations committed to improving the delivery of public services through the effective and efficient use of information technology.Unleashing the power of information technology (IT) innovation can help agencies bridge [the government] funding gap while continuing to deliver essential mission services to the federal government._2527eb8c-2edd-11e2-bd28-f53ee5cf9241[To make] recommendations for using innovative information technology and processes to improve the government’s efficiency while preserving or enhancing the performance of its missions._2527ee52-2edd-11e2-bd28-f53ee5cf9241Data AnalyticsAccelerate the use of data analytics to identify opportunities to reduce government costs._2527ef24-2edd-11e2-bd28-f53ee5cf92411Centers for Medicare & Medicaid Services (CMS)McKinsey Global InstituteThe federal government already collects and stores great quantities of data. Moving deliberately to match this data with the power of emerging analytical technologies provides new opportunities to create actionable information and insight to inform decision-making across federal programs. The information created can help expose operational inefficiencies and identify operational and programmatic redundancies. Gathering and analyzing data from a variety of internal and external sources can help determine performance and outcomes for federal programs.New data analytical technologies are particularly critical in the analysis of healthcare costs. By using structured and unstructured data in new combinations to provide actionable information and insight, the government -- both civilian and defense -- can discover ways to reduce costs in healthcare delivery and functional healthcare operations. The Centers for Medicare & Medicaid Services (CMS) exemplifies how the government can leverage IT through data analytics to reach higher levels of cost efficiencies. The potential savings from increased health intelligence is sizable: according to McKinsey Global Institute, "if US healthcare could use big data creatively and effectively to drive efficiency and quality, we estimate that the potential value from data in the sector could be more than $300 billion in value every year, two-thirds of which would be in the form of reducing national health care expenditures by about 8%." Approximately $70 billion is the federal portion of the total $300 billion._2527efce-2edd-11e2-bd28-f53ee5cf9241Technology InvestmentInvest in technology to increase productivity and reduce costs._2527f078-2edd-11e2-bd28-f53ee5cf92412Department of Veterans Affairs (VA)IT and business process innovation are central to commercial industry productivity and success. We experience this everyday in online commerce and in daily business and personal interactions. Yet, the public sector lags significantly behind the private sector in IT and business process innovation. This results in slower productivity growth and declining services to a citizenry that increasingly takes online mobility and information for granted in its private sector interactions. The federal government has the opportunity to accomplish its missions in a cost effective manner while providing the citizenry with expected levels of service by strategically using IT as a part of the solution. Based on commercial industry best practices, the government could potentially save up to $100 billion a year in federal outlays. This is depicted Exhibit 2.There are significant opportunities to apply innovation in the public sector and learn from private sector best practices. In a number of areas, the Department of Veterans Affairs (VA) has done this. Other federal agencies, especially those with healthcare missions, can learn from what the VA has done, and even collaborate with them going forward, to facilitate data sharing, interoperability and end-use accessibility to modern data systems._2527f118-2edd-11e2-bd28-f53ee5cf9241Fraud, Waste & AbuseUse technology to combat fraud, waste and abuse._2527f1c2-2edd-11e2-bd28-f53ee5cf92413U.S. TreasuryInternal Revenue Service (IRS)Federal payment and tax collection programs are complex and touch every person and company in the United States. There are trillions of dollars involved in these transactions and citizens have come to expect that payments or tax refunds will be issued promptly. Unfortunately, this creates a climate where fraud, waste and abuse is likely to occur. Fortunately, there are many technologies that can streamline programs to cut waste and improve services, identify fraud and abuse to prevent improper payments and collect the proper amount of taxes owed.The Internal Revenue Service (IRS) reports the “tax gap” of uncollected taxes to be $385 billion and improper payments made by the federal government to exceed $100 billion a year. Accelerating the modernization of key IT tools could drive a 10% reduction in these losses to the U.S. Treasury. Combined, this loss reduction could potentially decrease the deficit by almost $50 billion a year as depicted in Exhibit 2. This is just one example that demonstrates the impact of leveraging IT to decrease fraud, waste and abuse. Healthcare and other areas can reap similar benefits._2527f276-2edd-11e2-bd28-f53ee5cf92412012-11-14http://www.actgov.org/knowledgebank/studies/Documents/Quadrennial%20Government%20Technology%20Review/Unleashing%20the%20Power%20of%20IT%20to%20Reduce%20the%20Budget%20Deficit.pdfOwenAmburOwen.Ambur@verizon.net