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Stephenson Loveson, Chief Information Officer at CalPERSIn the everchanging landscape of the public sector, the integration of advanced technologies has become instrumental in driving efficiency, transparency, and service delivery to constituents—and in the case of CalPERS, to its members. Just as with the private sector, public agencies face the competingchallenges of embracing technological advancements while ensuring security and reliability. The answers delve into the recent trends in government technology from a public sector retirement system CIO's viewpoint, exploring the impact of technology innovations on retirement security.
In the light of your experience what are the trends and challenges you’ve witnessed happening with respect to the Government sector?
The convergence of technology trends offers both opportunities and challenges. The responsibility to balance innovation with the security and reliability of retirement systems requires a strategic approach. Our deliberate approach to technology trends has always been laced with a dose of reality and with a focus on producing returns on our technology investments. In short, we don’t get carried away by hype and it has served us well.
We are increasingly embracing digital transformation to enhance member needs, streamline operations, improve overall efficiency, and reduce overall costs. This includes the adoption of cloud technologies, AI-driven systems, and big data analytics to facilitatedata-driven decisions and improve service delivery. We are looking to reduce call volumes, improve health outcomes and improve the efficiency of operations.
It is fair to say that like many other organizations across the globe, CalPERS is exploring the use of Generative Artificial intelligence (Gen AI) and how it can transform our business. We have several workstreams that are focused on producing value out of the Generative AI and copilot capabilities that have taken the world by storm. In the next few months some of the work that we are doing will start to make some impact to the organization.
We have continued to invest in cloud technologies to leverage the efficiencies like scalability, costefficiency, and agility. We continue to modernize our infrastructure by using the public cloud as a strategic tool. We have adopted a cloud-intelligent approach when modernizing our workloads.
“We are looking to reduce call volumes, improve health outcomes and improve the efficiency of operations.”
Our approach is to innovate to provide value for our members rather than innovating simply because the technology is popular. And we will continue to find ways to leverage new tools and services.
In terms of challenges, cybersecurity and skill gaps tend to occupy the top of my mind. With the rising frequency and complexity of cyber threats, there's a heightened focus on cybersecurity measures to protect our sensitive data. We are adopting robust security frameworks, encryption technologies, and implementing proactive measures to safeguard against potential breaches. We incorporate security reviews across lifecycle phases to make sure best practices are followed and we can respond to zero-day threats actively.
Recruiting and retaining skilled IT professionals continues to be a challenge due to competition from the private sector and other factors. We continue to invest in talent and culture of our organization to build a future ready, skilled workforce. This is a continuous strategic priority for the IT organization which I’m personally leading.
How do you see the evolution of the Government sector arena a few years from now with regard to some of its potential disruptions and transformations?
The public sector is evolving into a future that will transform the way that government delivers services to its constituents. Public sector leaders are well versed in the use of technology and are leveraging its capabilities like never before.
We have seen a few private/public sector partnerships, particularly in academia, which is resulting in marked improvements in the quality of life of the constituents. There is plenty of collaboration between departments and agencies and CIOs are realizing the value of working together to achieve shared goals and wins.
You have already seen federated identities taking a big leap forward with services like login.gov and ID.me. Incorporating blockchain technologies into these federated services will increase security and resiliencies of these services.
California is leading the charge in many aspects, and my peers across state governments are rolling out services that are well integratedand work across departments and agencies. For instance, DMV recently rolled out its mobile driver’s license which is now accepted at TSA checkpoints. Cradle-to-Career is another transformative effort which will enhance quality of life for the constituents by connecting individuals and organizations with trusted information and resources. It takes an entire lifecycle view of data. This data then becomes key to making informed decisions.
More and more systems are going to talk to each other without compromising security and interoperability of these systems. Advanced fraud detection services will be incorporated into everything we do. Redundant services will merge to form shared services. Infusion of Gen AI capabilities will inspire the next wave of service transformation. In retirement security, AI-driven tools offer a variety of benefits in risk assessment, portfolio management, and secure ways to access records and benefits ensuring better outcomes for retirees.You will continue to see deployment of AI-powered systems for efficient data processing, fraud detection, and personalized service delivery.
Which are some of the trends which excite you for the future of government sector?
There are a few things happening in the public sector, particularly in the pension industry space, that excite me. Adoption of technology has accelerated where it is now being considered an important part of business transformations and business plan initiatives.
Partnerships between IT and the business side of organizations have grown stronger. It is no longer an IT shop delivering technology in silos,but ratherdeep partnerships are developing within the project deliveryprocess which not only contributeto a greater product,but the business partners are driving the change through strong collaboration between IT and Business. Integrated project teams are becoming common and successful. Platform-based approaches are getting more popular as low code/no code solutions are finding a stronger toehold in the IT ecosystem. IT organizations are rapidly evolving to adoptas a Service Model approaches and product management principles.
Data-driven Decision Making: The advent of big data has revolutionized how governments operate. We are leveraging analytics tools to analyse vast datasets, extract actionable insights, and make informed decisions that enable us to deliver equitable health outcomes and sustained investment returns. When applied to retirement security, data analytics helps in assessing trends, forecasting financial requirements, and delivering insights into member needs.
Cloud Technology and Security: Governments are increasingly shifting towards cloud-based solutions to improve flexibility and scalability while reducing operational costs. We have adopted many cloud solutions with robust cloud infrastructure that complies with stringent security protocols. For retirement systems, cloud technology offers enhanced data accessibility, scalability, and disaster recovery capabilities, ensuring the secure management of retirees' sensitive information.
Cybersecurity and Privacy Concerns: With the rise in cyber threats, ensuring the security of sensitive government data is paramount. CIOs and CISOs are implementing advanced cybersecurity measures, such as threat detection, encryption protocols, and continuous monitoring. Safeguarding personal information and financial data of retirees is of utmost importance.
Digital Transformation and Citizen Services: We are embracing digital transformation to enhance member services. We are implementing user-friendly digital platforms for retirees to access retirement benefits, manage accounts, and receive crucial information conveniently. Such platforms streamline processes, reduce paperwork, and improve overall user experience.
Would you like to give a piece of advice for the community as to how should they approach this industry?
The public sector IT department exists to solve business problems and are not necessarily looking to deploy technology solutions for its namesake. When the vendor community wants to approach an IT Executive, they should focus on the business value of the product/service rather than focus on how cutting edge the product is. Learning about the what the organization mission is and what its strategic priorities are,will give you an edge. You can find the CalPERS strategic plans and the business plans here.
This will give you enough signs and signals about how these technology solutions can align to fit into the overall strategy and organizational business goals. For example, if you are trying to sell a network monitoring solution you could approach me on how it is going to defend my organization against evolving threats and make me proactive in detecting fraud and secure my environment rather than focusing on the bells and whistles of the product. I would also focus on the total cost of ownership, including cost of acquisition and cost of maintaining the product over several year horizons and how it will help reduce technical debt.
In conclusion, the role of CIOs in the government sector is pivotal in driving technological innovation while upholding retirement security. By leveraging emerging technologies judiciously, CIOs can steer governmental agencies towards more secure, efficient, and accessible retirement systems, ultimately benefiting retirees and broader society.
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