2022 Biennial Performance Report

Accelerating the Next Generation of Technology in Texas

2022-2026 State Strategic Plan
Goal 4: Proactive Approach to Emerging Technologies

As agencies face the next phase of modernizing legacy IT systems, they must plan for emerging technologies that are collaborative, scalable, and adaptive to a rapidly changing technology environment.
The 2022-2026 State Strategic Plan identifies four objectives to increase state agencies’ ability to prepare for the advanced technologies of tomorrow. Desired outcomes for agency alignment with the emerging technology objectives below include approaches that integrate emerging technologies at the appropriate time; strategies that improve the way agencies plan, procure, and deploy IT services and new technologies; methodologies that identify and address legacy system modernization; and hiring and retaining a workforce capable of implementing advanced technologies that provide Texans greater access to government information and services.

Objectives

  1. Prioritize investing in platforms and projects that support emerging technologies and help accelerate legacy modernization
  2. Develop a resilient workforce that can adapt to emerging technologies and new concepts of public sector work.
  3. Develop flexible and adaptable approaches to procure and implement the innovative technologies needed to meet the modern demands of Texans.
  4. Identify opportunities to deploy emerging technologies that improve the day-to-day delivery of government services.

Assessment

Agencies reported that they are making progress on modernizing legacy systems and applications with 22% of agencies considering themselves fully modernized; 75% of agencies said at least half of their application portfolios are modernized. Issues associated with legacy applications include unavailable software maintenance upgrades, the inability to adapt or enhance software, limited expertise, and insufficient technical support and documentation. 
Agencies not only understand the urgency of modernizing but are also poised to take advantage of the benefits of artificial intelligence (AI). Over a third of state agencies report they have already deployed some form of intelligent automated solutions. Top AI priorities include increasing worker output and efficiency, freeing up staff work hours from repeatable tasks, and improving the customer experience.
In addition, state agencies completing the IRDR reported progress in areas that make them well-positioned for modernization including using open-source and Software-as-a-Service as well as having a technology roadmap.

Concerns

When asked to define the agency’s maturity with intelligent automated solutions, 85% of state agencies said they are in the initial stages. This means they lack repeatable and defined processes for implementing AI. Barriers to deploying AI include competing priorities, lack of dedicated personnel, and budgetary restrictions.
Agencies have made more progress toward some emerging technologies than others. Over a quarter of agencies are using DevOps and Application Portfolio Management while 22% have adopted low-code/no-code development; however, blockchain technology is seeing no active use and only 1% of agencies are currently planning to implement it.

Recommendations

The 87th Legislature demonstrated its commitment to technology modernization by passing two bills establishing committees and working groups to ensure that modernization projects are overseen and funded. The first of these was House Bill 4018, which established a legislative oversight committee on agency technology modernization projects and a dedicated fund for those projects. This legislation requires state agencies to identify legacy IT infrastructure risks and be proactive in planning for and deploying modern solutions that enable the integration of emerging technologies. The second of these bills, House Bill 1576, established a work group to develop a master plan for the blockchain industry’s expansion in Texas and to recommend policies and state investments in connection with blockchain technology.
For the next biennium, DIR recommends the following action to encourage state-agency adoption of emerging technologies.
Provide guidance for distributed ledger and blockchain technology best practices.