State could save $286.8 million in 5 years with better IT, report finds
National report issues recommendations to cut costs, improve service
Tom Henderson
Improving information technology in government could save the state of Michigan $286.8 million over next five years, according to a report released Tuesday by the Information Technology and Innovation Foundation, a nonprofit, nonpartisan research and educational institute based in Washington, D.C.
The report is an analysis of why and how states should better harness information technology to improve public-sector productivity and create savings for governments, businesses and citizens.
The report, "Driving the Next Wave of IT-Enabled State Government Productivity," found that state governments should make it a top priority to boost productivity with IT.
"In the same way that technology has driven productivity growth in the private sector, there is a great opportunity for savings by state governments," Robert Atkinson, founder and president of the foundation and a co-author of the report, said in a news release.
"But to achieve this promise of e-government, leaders will need to clearly articulate the goal of replacing labor with technology. They will need to take on entrenched political opposition and overcome an array of administrative challenges, including an unwillingness to increase IT investments that would generate significant returns," he said.
The analysis focused on three key areas where states can use IT to cut labor and material costs while improving efficiency:
Replacing routine government employee tasks with self-service tools on the Internet, mobile devices and kiosks.
Automating routine government employee tasks such as manual entry of paper forms with online applications and smart, connected devices.
Improve agency operations with data and analytics.
According to the report, not a single state has made IT-led productivity a top priority. It recommends giving state chief information officers more decision-making authority, embracing public-private partnerships, and better rewarding IT-enabled productivity.
California could enjoy the biggest savings in IT improvements, according to the report, more than $1.3 billion in five years.
New York was next at $788.9 million.
Savings for neighboring states were Indiana, $137.9 million; Wisconsin, $168.2 million; Minnesota, $215.1 million; Ohio, $281 million; Illinois, $425.4 million.
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