Big Data. Big Decisions
InformationWeek
Special Coverage Series


Gov 2.0 Summit: Labor CFO Discusses Cloud Pitfalls

If the Department of Labor had to move its financial systems to the cloud all over again, it would plan better, says the agency's CFO.




Image Gallery: Government's 10 Most Powerful Supercomputers
(click for larger image and for full photo gallery)
Speaking at the Gov 2.0 Summit Wednesday, Department of Labor CFO James Taylor had a word to the wise for federal agencies -- and any other organization, for that matter -- planning to move their financial systems to the cloud: plan adequately.

The Gov 2.0 Summit, produced by O'Reilly and UBM TechWeb, is being held at the Grand Hyatt in Washington, D.C.

In January, the agency moved its financial systems from a 20-year-old, poorly integrated piece of software that didn’t talk to other systems to a shared service managed and operated by GCE. Implementation took 18 months, including a three-month delay toward the end of 2009, Taylor said. While shorter than the typical deployment cycle for a major financial system, the changes the system entailed for the agency's business processes made it longer than a typical cloud deployment cycle.

Over the long run, Taylor said, the GCE service will enable the Department of Labor to "dramatically" change, streamline and standardize agency business processes across the agency, which Taylor characterized as a "very, very decentralized agency." In addition, the cloud has stopped the agency from having to do all the operations and maintenance on its financial system, which adds up to long-term cost savings.

However, over the shorter run, Taylor said, the change from older on premises systems to GCE has posed numerous challenges. "The issues aren’t really created by the shared services, but we really didn’t see ahead in terms of requirements and how big the change would be," he said. "Everybody talks about best practices, and we do call around, but what we didn't do well, is we didn't study other use cases to see if other agencies and customers have the same issues and how they tackled them."

Instead of walking invoices across departments, for example, the invoice process is now entirely automated. "Those types of changes have been the hardest in terms of getting everything to work in the last eight months," Taylor said.

With new, more powerful financial systems at its fingertips, the CFO is also enforcing rules that certain other systems don't always enforce, causing business process problems in places like procurement.

Many were unprepared for the changes, Taylor said, because they were skeptical of the agency's ability to pull the upgrade off, given a $35 million failure several years ago as well as the three-month delay. Therefore, at launch, the agency had to set up training rooms to show employees how to do things like process vouchers and contracts. "We had a huge effort in trying to catch up," he said. Patches made to systems integrated with the GCE system have also played havoc with GCE's own system. For example, Taylor noted changes made to the agency's procurement system over a weekend that didn't sit well with a subsection of employees.



Related Reading


More Insights




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

BYTE encourages readers to engage in spirited, healthy debate, including taking us to task. However, BYTE moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. BYTE further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.

Follow InformationWeek

By The Numbers

What Are Your Primary Concerns About Using Big Data Software?

Base: 417 respondents at organizations using or planning to deploy data analytics, BI or statistical analysis software
Data: InformationWeek 2013 Analytics, Business Intelligence and Information Management Survey of 541 business technology professionals, October 2012

What Do You Think?

What's your attitude about SQL analysis on top of Hadoop?
We want fast, standard SQL analysis capabilities on Hadoop ASAP
Hadoop is for unstructured data; SQL is for relational databases
We'll give SQL on Hadoop a try, but relational DBs will remain the mainstay
Given strong SQL support on Hadoop, we'd nix the data warehouse
We're not interested in Hadoop
No opinion



Related Content

From Our Sponsor

Five Big Data Challenges and How to Overcome Them with Visual Analytics

Five Big Data Challenges and How to Overcome Them with Visual Analytics

Business leaders often need a visual snapshot of data to quickly grasp and use it. This paper identifies five challenges in presenting data and how visual analytics can resolve them. Solutions are suggested to overcome the challenges of: speed, data clarity, data quality, displaying meaningful results, and dealing with outliers.

Game-Changing Analytics: How IT Executives Can Use Analytics to Create Innovation and Business Success

Game-Changing Analytics: How IT Executives Can Use Analytics to Create Innovation and Business Success

Today's competitive advantage requires a deeper understanding of your business, your market and your customers. As an IT executive, you can drive that knowledge transformation. In this white paper, learn how to make decisions as a strategic business leader and three steps to begin an analytics initiative within your enterprise.

Data Visualization Techniques: From Basics to Big Data with SAS Visual Analytics

Data Visualization Techniques: From Basics to Big Data with SAS Visual Analytics

High-performance data visualization turns sophisticated analyses into meaningful graphics, leading to faster and smarter decision making. In this white paper, learn how visual analytics can transform big data, with additional features such as real-time functionality, mobile compatibility, robust applications for technical groups and accessibility for nontechnical users.

Big Data: Lessons from the Leaders

Big Data: Lessons from the Leaders

Financial performance, competitive advantage, operational efficiency, strategic decision making - every business goal can extract value from big data, and the time for doubt or inaction has long passed. In this Economist Intelligence Unit report, in-depth interviews with data pioneers reveal the link between the effective use of big data and the bottom line among other results.

Decision-Driven Data Management: A Strategy for Better Decisions with Better Data

Decision-Driven Data Management: A Strategy for Better Decisions with Better Data

Which came first, the data or the decision? This white paper makes the case for having a decision in mind, then tailoring big data's volume, variety and velocity to achieve business results such as overcoming customer dissatisfaction or creating well-informed strategies in real time.

Informationweek Reports

Research: The Big Data Management Challenge

Research: The Big Data Management Challenge

The challenge of big data is real, but most organizations don't differentiate 'big data' from traditional data, and nearly 90% of respondents to our survey use conventional databases as the primary means of handling data. We'll help you understand what constitutes big data (it's not just size) and the numerous management challenges it poses.