By Jason Roys
To understand the value of big data and data analytics in government, look no further than the recent gains Ukraine’s warfighters have made against Russian forces. As an ally of Ukraine, the U.S. Army is applying its war-fighting platform — its cloud, data, analytics and artificial intelligence — to support Ukraine’s battlefield strategy.
The U.S. Army’s CIO, Dr. Raj Iyer is on the front lines of the conflict, albeit virtually. The amount of data from satellites, military intelligence and social media — from soldiers and civilians on the ground, as well as disinformation from enemies — is staggering, he told CIO magazine.1
But he’s encouraged that the digital infrastructure has been a critical asset. “It’s been a game changer just in the last three months of the war, and it would not have been possible without the cloud,” he told CIO.
This is a single example of how the U.S. government is harnessing the power of big data analytics, the process of integrating and examining large data sets to tease out hidden patterns, correlations, business intelligence, trends and user preferences. The resulting finely tuned data insights are helping not only federal agencies, but also state and local governments improve public policy decision-making, identify efficiencies, improve service delivery and public safety, and recover lost revenue.
Is it easy for government leaders to embark on a big-data journey? Assuredly not. Is it becoming more and more necessary? Absolutely.
This article will look at the role of data analytics in government agencies, how data-driven insights and predictive analytics benefit citizens and governments, what the barriers to implementation are, and how to get started in this rapidly emerging field.
WHAT IS THE ROLE OF DATA ANALYTICS IN GOVERNMENT?
With COVID-19 taking hold in 2020, state, local, and federal agencies realized they didn’t have an easy way to share data that was critical to the tracking and stemming of the pandemic. As policymakers and health experts sought up-to-date information, governments were forced to break down data silos, coordinate with companies and universities, and expand their roster of data talent.
This trend is continuing as the public sector makes ever greater investments in data analytics. Here are some of the ways data-driven governments benefit citizens and taxpayers, along with improving their own operations:
NATIONAL SECURITY
Accumulo, an open-source project developed by the National Security Agency (NSA), allows users to store data in large tables for easier access and enhanced security.
CRIMINAL ACTIVITY
According to the U.N. Office on Drugs and Crime, money-laundering by criminals amounted to more than $1.6 trillion in 2009. The U.S. Treasury Department's Bureau of Financial Crimes Enforcement Network collects and analyzes millions of bank transactions to combat money laundering, terrorism financing, and other criminal activities.
HEALTHCARE
Most health systems are dependent on government subsidies and support. Big data gives governments new insights into where and why money is spent. It also can alert them to waste and unfair allocation of resources.
TRANSPORTATION
Governments can monitor the transportation sector — public roads, public transport, weather impacts — with the help of big data and predictive analytics, improving public safety.
EDUCATION
Through big data analytics, teachers can identify areas where students struggle or thrive, understand the individual needs of students, and develop strategies for personalized learning.
REVENUE
McKinsey estimates that close to 20 percent of government revenues worldwide, or about $5 trillion, go missing each year, either in dollars owed but never paid or in outbound payments that don’t reach their destination. A government could establish a unit to analyze data sets from tax, customs and business registrations, along with external data from the banking sector, to target fraud and noncompliance.
TRANSPARENCY
Governments and citizens can freely exchange information and viewpoints under open-data initiatives, increasing trust, transparency, and accountability in democratic governance. Based on citizens' sentiments, government services can be tailored to specific individuals or neighborhoods and initiatives can be prioritized.
FOOD SAFETY
As technology has advanced, researchers, policymakers, and food safety professionals are finding new ways to collect, use, and analyze data. It helps them reduce the risks of food-borne illness and improve collaboration among teams for restaurant and food inspections.
WHAT ABOUT HUMAN JUDGMENT?
Does implementing data analytics mean that a machine is doing all the thinking? Not at all.
In an interview with McKinsey, Dan Wagner, founder and CEO of CIVIS, a political data analytics consultancy, adds a caveat when it comes to data analytics and data-driven decision-making. “Data isn’t going to tell you what data you need to listen to," he says. "Humans are going to tell you what data you need to listen to.”
It’s human judgment, he says, that must articulate what’s important and what to measure. And, as Dr. Raj Iyer, the U.S. Army’s CIO, said: "the ‘Future Fight’ depends on how quick we are to enable commanders in the field to make decisions in an uncertain environment.”
BARRIERS TO GOVERNMENTS IMPLEMENTING DATA ANALYTICS
For some people “big data,” “machine learning,” “predictive analytics,” and “artificial intelligence” have the feel of a George Orwell novel. Big Brother is watching. Very. Closely.
Privacy is a legitimate reason to approach data analytics in government with caution. If citizens don’t trust that the data collected from them by their government is secure from cyberattacks, the goal of government transparency goes down the drain.
But it’s not the only barrier governments face. Here are some examples:
To learn more, read: Zero trust: How to reach maximum security
LEGACY IT SYSTEMS
Government agencies, particularly in local government, often use legacy IT systems that were built up over time as needs evolved. Information management becomes more about maintaining these legacy systems than about updating them.
Operating in silos, various local government offices (for example, the sheriff’s department and the court system) may even have systems that can’t talk to each other to share data. This is changing, as more agencies recognize the value of sharing data sets. Updating IT systems requires a systematic approach and commitment from the highest levels of administration.
To learn more, read: Why IT modernization is mission critical
WORKFORCE EFFECTIVENESS
Thirty-eight percent of GenZ government workers who responded to a recent EY Reporting survey said they plan to leave their jobs in the next 12 months. Governments face the challenge of recruiting and retaining new employees as part of a digitally literate workforce.
This is why chief data officers (CDOs) are emerging as data champions to lead organizations in learning how to leverage the power of data. Their role differs from government CIOs in that, where CIOs have a broad range of experience in source systems and data movement, CDOs understand data processes including data governance, data stewardship, data quality, AI, and data science.
BIAS
Bias in data analytics is not specific to government, but it’s of great concern because of how data can be used (or misused) to adversely affect people’s lives. Bias can show up in how a question is worded, how the data is sampled and analyzed, and other ways. Experts recommend gaining consensus around the purpose of the analysis, because ambiguous intent can lead to ambiguous analysis.
MODEL RISKS
If a process includes inputs, calculations, and outputs, it falls under the regulatory classification of a model. Predictive analytics and machine learning are based on models, and if a model is flawed, the results will be, too.
DUE PROCESS
In a 2021 article, Ángel Diaz of the Brookings Institution argued that data analytics and “predictive policing” infringe on due process. “Predictive policing systems digitally redline certain neighborhoods as ‘hotspots’ for crime, with some systems generating lists of people they think are likely to become perpetrators,” he wrote. “These designations subject impacted communities to increased police presence and surveillance that follows people from their homes to schools to work.”
The flip side of that argument is that predictive analytics help law enforcement and the military to identify domestic and foreign terrorists before they can act. But it’s a delicate balance to keep actionable insights from infringing Constitutional rights.
HOW IS DATA BEING USED IN GOVERNMENT DECISION-MAKING?
Besides all the barriers just mentioned, we have the costs involved in developing utilitarian data analytics systems that provide insights in an easy-to-understand graphical interface. Agencies often find they don’t have the wherewithal to implement data analytics on their own, so they often call on consultants like SDV INTERNATIONAL to guide the process.
After all, there are real gains to be made, with efficiencies and revenue generation that may be sufficient to offset costs. Here are a few examples from Harvard’s Jane Wiseman in her 2019 report, “The Case for Government Investment in Analytics,” and the Civic Analytics Network, a consortium of municipal CDOs.
INFRASTRUCTURE
Real-time transit data helps the city of Boston optimize bus routes. Important policy questions, such as what days of the week, times of day, or sections of the city most need a new dedicated bus lane, can be explored. The city also saves $1 million a year on city building energy costs with real-time monitoring and an energy manager who can strategically adjust consumption during peak cost times.
The Center for Data Science and Public Policy (DSaPP) at the University of Chicago works with the city of South Bend, Indiana, to predict water shutoffs, a symptom of more deeply rooted social and economic challenges facing South Bend residents.
FRAUD DETECTION
Data analytics helped the U.S. Department of Health and Human Services uncover $1 billion in fraud in 2016, charging 301 people with unnecessary treatment, bribes, kickbacks, identity theft, and false prescriptions.
The Texas Workforce Commission identified $90 million in fraudulent unemployment benefits that would have been claimed by individuals incarcerated in the state’s prisons and jails.
The state of Maryland uses predictive analytics to identify which tax returns to audit , which makes more judicious use of auditing resources. Before taking this approach, fraud was detected in 5 to 10 percent of audits. Now, half as many audits find fraud 60 percent of the time. The approach has recovered nearly $35 million.
EFFICIENCIES
Data analytics added $2.8 million in immediate property tax revenue to the City and County of San Francisco by reducing backlogs in the Assessor’s Office and uncovered potential property tax avoidance by flagging lower-than-market-rate housing sales.
After analyzing overdue taxes owed to Kansas City, Missouri, actionable insights led to a new way of case processing and the decision to add two dedicated staff for pursuing late tax payments. Annual collections rose from $1.1 million in FY15 to $3.2 million in FY18.
MILITARY APPLICATIONS
The Department of Defense is a major client of SDV INTERNATIONAL, and serving the warfighter is central to our mission. DoD is on the leading edge of data analytics in a variety of critical areas, including health information management — one of our specialty areas.
The events of 9/11 showed the military and intelligence communities that they had to work differently with data to protect the nation. Drawing timely insights from big data quickly became central to strengthening national security. Today’s warfighters increasingly rely on data analytics to make critical, informed decisions, respond to potential threats, and support allies, as we are doing in Ukraine.
THE BIG (DATA) QUESTION
Government leaders at all levels are learning more about data analytics and its potential value to transform government. But addressing barriers, building workforce effectiveness, overcoming resistance, and taking a holistic, data-driven approach to identifying and solving problems is a tall order. It’s also important to retain citizens’ trust, keep data secure and “do no harm.”
Contracting with a government consultant like SDV INTERNATIONAL — experienced in end-to-end technology solutions for today’s most complex problems — is one way to start the process of leveraging the power of big data to improve government for all.