presented by Ben Berry, Chief Information Officer ben.berry@odot.state.or

1. Wrestling with 21st Century Issues in the Wireless Strategic Plan Framework presented byBen Berry, Chief Information Officerben.berry@odot.state.or.us

2. Wrestling with 21st Century Issues in the Wireless Strategic Plan FrameworkWireless Landscape Agenda • Background on 21st Century Issues • Strategic Planning Process Review • Prioritization of Wireless Initiatives • Levels of Difficulty in Project Selection • Four Quadrant Analysis • Conceptual Designs • Implementation Goals Summarized

3. Wrestling with 21st Century Issues • Strategic Thinking has become a prerequisite to success. Prerequisites for Success • We’ve seen the business environment become far “tougher” and far less forgiving of mediocrity. Business Environment • We operate in a new economic reality, one of rapid change. Change in IT, in networked organizations, in knowledge workers “carrying the business around in their heads, and in globalization. New Economic Reality • Products & services being sold where income is higher • Production moving to where labor costs are lower • Labor moving to where wages are higher Globalization in three dimensions • Thinking strategically is not a once a year event. Rather, management team must think strategically 24x7 24 x 7 • Chaos of our 21st Century is continuous. It isn’t waiting patiently for your next planning cycle. If management is not constantly thinking strategic, then your organization is vulnerable. Continuous Improvement

4. 21st Century Issues • Wireless DATA • Secure data messaging required • Minimum bandwidth impact • Platform independence (PDA, laptop, radio interoperability) • Data resides inside trusted network and on our servers • Operating expense - manageable HW or SW costs for data 21st Century Issues • Wireless SOFTWARE • Installation and maintenance practical • Minimum additional load on servers • Systems compatibility with installed technology including strong security • Single point of failures eliminated • Capital expense minimized • Wireless MANAGED SERVICE • Messaging via strategic WWAN partners • Ensure secure external messaging in network • Rapid / agile activation and protection • Fail safe delivery and support • Improved Time-to-Market with external services providers 45% 29% 26%

5. Concept of Operations

6. Value-Added Innovation What is value-added innovation? Change that leads to - Increased customer satisfaction - Increased employee productivity - Reduction in staff or general costs of doing business Value-Added Innovation through Wireless Appliance PDAs Health care graphic A wireless mobility device creates value by delivering: Horizontal Applications Vertical Applications Generics used across industries - messaging - e-mail - collaboration tools - business applications Apps with Customized functionality - tailored to specific industries - ERP and CRM systems - customer-information sys - inventory control sys Innovation support graphic

7. Customer satisfaction Employee productivity Horizontal Applications Vertical Applications Staff or general cost of doing business Value-Added Innovation Point If you study it long enough, it will reveal its secrets! Value-Added Innovation Point Faster User Friendly Self Service Less cost Customer Value Perspective Bottom Line Results Range of Wireless Applications

8. BlackBerry Messaging Regional Office District Office The Goal: SSL-VPN Agency Access Solution Areas WLAN SSL-VPN WWAN Site-to-Site SSL-VPN Agency Headquarters Employees using Agency managed and controlled laptops SSL-VPN End point terminals controlled and managed via Commercial Wireless Vendors Authorized partners and customers Telecommuters & Contractors

9. ODOT COI Business IRM Plans Opportunities Trans DMV MC Central Services ODOT IS Strategic Planning Initiative IT Strategic Planning Inputs and Information Flow 2006-2010 IT Strategic Plan Workshop and Interviews ODOT Strategic Goals and Outcomes with COI Leaders ODOT IT Strategic Adjustments Strategic Planning Workshop and Interviews Plan Scorecard with IS Leaders

10. Organization Key Strategies Common Business Needs IT Strategies IT Plan Framework Information Resource Mgt.

11. Business Needs Assessment • B1 Information Exchange: We need to quickly and easily engage external partners and customers in real-time information exchange (Gov-to-Gov, Gov-to-Bus and Gov-to-Consumer). • B2 Agility: We need to respond quickly and easily to changing business requirements and new State and Federal requirements • B3 Risk Mitigation: We need to mitigate risks from inefficient & vulnerable business systems. • B4 IT ROI: We need to maximize the business value of each dollar invested in IT and minimize IT operational expenses. • B5 Internal Processes: We need to have internal processes that are well designed, efficient, integrated, easily implemented and easily changed. • B6 IS Service Delivery: We need to preserve or improve current IS service levels through the transition to the consolidation of 12 data centers to one State Data Center and beyond. • B7 Web-based Service Delivery: We need to deliver more services electronically and through the Inter-, intra-, and extra-net. • B8 Information Assets: We need fast & easy access to reliable information to support good business decisions. We must manage our information & data as a valuable enterprise asset. • B9 GIS Integration: Make GIS information easy to reference and integrate in our processes. • B10 Wireless: We need to support a mobile workforce by providing wireless and interoperable access to voice, video, and data. • B11 Workforce Collaboration: We need tools that will improve collaboration among our workforce, partners and suppliers.

12. Enterprise Wireless Workshop Assessment Analysis Conceptual Design Design Consultation by Cingular’s Solution Design Board • Initial workshop meeting and data gathering effort. (10/6/06) • Key departmental or functional areas • Critical thought and decision leaders • Interviews conducted at ODOT (10/19/06) • Data gathered from key stakeholders within departmental and functional areas. • IT Strategic Plan • Business Needs & Strategies • Interview results were reviewed and analyzed • Initiatives were identified, weighed and prioritized • A prioritized list was created • An infrastructure gap analysis was prepared • Written and oral presentation of findings and conceptual designs for the wireless network was delivered (11/9/06) • Device Options • SSL-VPN Considerations • Middleware • Platforms • Partners

13. G2C G2B G2G Wireless Services SERVICES Gov-to-Consumer - Gov-to-Business - Gov-to-Gov Wireless Initiatives – Identified in October 2006 • Mobilize Remedy ARS to BlackBerry & Windows Mobile Roadside Wireless with HWY. Support Vehicles Remote access to small maintenance facilities Wireless forms for truck inspection and inventory • Incremental data capabilities for BCP and DR • Communications in Critical Situations • Message Blast to Any Communications Device Instant wireless Conference Calling

14. G2C G2B G2G Wireless Services SERVICES Gov-to-Consumer - Gov-to-Business - Gov-to-Gov Wireless Initiatives – (Cont’d)Identified in October 2006 Handheld Document Storage Retrieval Cellular PIN-to-PIN Messaging and Archiving RFID – Radio Frequency Identification for IT inventory • Tracking Intelligent Transportation System (ITS) Assets Wireless Data Interoperability Microwave Wireless Initiative (OWIN)

15. Opportunities Threats Weaknesses Strengths External Factors SWOT Analysis: Strengths, Weaknesses, Opportunities & Threats Internal Factors Wireless Strategies Built on Strength Wireless Strategies Built on Defense

16. Weaknesses Strengths Competitive Parity Bell-shaped Curve“The Law of Things” Internal Weaknesses Score Internal Strengths Score M I N I M I Z E M A X I M I Z E 0 2 5 8 10

18. The Hockey Stick Curve“What are you doing that’s different?” Growth from single digits to double digits generally does not happen because someone or even everyone does a better job at doing the same old thing! All of a sudden improvement? Customer Service to top 90% Revenues at 10% growth

19. The Hockey Stick Curve“Two Rules of Thumb” 2. A sudden improvement from low single-digit to double-digit growth (represented by the hockey stick curve) comes from doing something different. 1. If you do what you’ve always done, you’ll get what you’ve always gotten.

20. Each initiative was linked to one or multiple business needs. • ODOT team assigned ratings to each linked initiative based on their contribution to business needs. • High (8-10), Medium (5-7), or Low (2-4) rating • Some initiatives were linked to multiple business needs. • Prioritized initiatives were sorted according to cumulative ratings. Wireless RankingMethodology

21. Wireless Initiatives – Cumulative Ratings

22. High Priority Initiatives – Cumulative Scores

23. High Priority Initiatives – Cumulative Scores These initiatives support multiple business needs.

24. Medium Priority Initiatives – Cumulative Scores

25. Medium Priority Initiatives – Cumulative Scores

26. Lower Priority Initiatives – cumulative scores

27. Lower Priority Initiatives – cumulative scores

28. How Difficult are these Initiatives? 7-10Relatively Difficult4-6Mid-level Difficulty2-3Not Difficult

29. 10 Very Difficult High importance (“high risk / high payoff projects”) Relative low difficulty High importance (“low hanging fruit”) IMPORTANCE 5 Not Difficult Not Important (“marginal projects”) Very Difficult Not Important (“high risk/low payoff”) 0 Initiatives Evaluations 0 5 10 DIFFICULTY

30. Four Quadrant Analysis These initiatives are relatively more difficult, but are more important and offer a higher payoff. 30 • Roadside Wireless • Microwave Wireless • Remote Access • Wireless (7,26) Mobilize Remedy (5,16) Message Blast Communication in Critical Situations (5,10) Tracking of ITS Assets (7,10) IMPORTANCE Wireless Interoperability Access to the Web (7,8) RFID (4,6) 6 Instant Conf Calling Handheld document Storage Cellular PIN-to-PIN (2,5) 0 DIFFICULTY 5 6 7 0 10

31. Four Quadrant Analysis • Low Difficulty / High Importance (Low Hanging Fruit): • Mobilize Remedy to 8700 -- RFID • Message Blast -- Communications in critical situation • More Difficult / High Importance (High Risk / High Payoff): • Roadside Wireless • Remote Access Wireless • Microwave Wireless • Wireless Interoperability to the Web • Tracking of ITS Assets • Not Difficult / Relatively Low Priority: • Instant Conference Calling • Emergency Information on Handheld and Handheld document storage • PIN to PIN messaging • Difficult / Not Important: • None

32. Thin and Thick Client Wireless Architecture using SSL-VPN & Application Layer Security Remedy Users Frame or Remedy ARS Network SSL-VPN Aeroprise Cingular Cingular or BEA/ Core RAN MobileAware Network Private APN Truck Inspection Application Inspection Application Users

33. Minimal Thin Client Wireless Architecture Cont’d • Browser only on the device (no client software) • Middleware (MDS, Aeroprise or BEA/MobileAware) connects to backend applications or databases and renders to the device • Aeroprise is the only turnkey solution to mobilize Remedy • Security by segment(not end-to-end) • Cingular airlink encryption between device & Cingular core • Private APN for isolated egress from Cingular core. • Network SSL-VPN between Cingular core and data center • Security not seamless or end-to-end. • Lack of session persistence negatively impacts user experience • On-line functionality only

34. End to End Netmotion persistent VPN ODOT servers 2.5G/3G WWAN Internet/Frame Relay inMotion Mobile OptimizedWireless Server Netmotion Server ODOT LAN Cingular RAN Private Wireless Network Secure Extension ofODOT Network Roadside Wireless Initiative BlackBerry Roadside Mobile Computing

35. Secure Extension ofODOT Network Wireless Access to Remote Facilities Initiative End to End Netmotion persistent VPN ODOT servers 2.5G/3GWWAN Internet/Frame Relay Netmotion Server WWAN Router ODOT LAN Cingular RAN Remote Facilities

36. Low cost data networking Increased Consumer Wireless adoption Commercial Wireless networks Digital Cellular technology evolves Low Data Rate wireless service for pagers & analog cellular Public Mobile Phone Critical Events Widespread Mobile Internet Wireless Networks (LAN & WAN) Mobility Computing Adoption • Worldwide Mobility • Affordable Performance • Mobile Computing • Smaller devices less power • Bandwidth expands • Low Bandwidth • Text Services • Electronic • Records Y2K & Upgrade Investment • Radio Voice Service – 7 miles Marconi’s Radio • First Commercial Radio Data Svc. 19thCentury 1946 1980 1990 1995 1998 1999 2000 2003 2007

37. Implementation Goals Summarized Wireless Strategy for Operational Excellence • Improved Time-to-Market • Reduced Cycle Time • Elimination of Bottlenecks • Enhanced Efficiency • Expansion of Services

38. COMPUTERWORLDMOBILE & WIRELESS WORLD Wrestling with 21st Century Issues in the Wireless Strategic Plan Framework