Citizen Advantage - World Bank

25

Deloitte Research – Citizen Advantage™A Deloitte Research Public Sector Study

Deloitte Research

CITIZEN ADVANTAGE™:ENHANCING ECONOMIC COMPETITIVENESS

THROUGH E-GOVERNMENT

The second of a two-part series on IT value in the public sector

Executive Summary .................................................................. 1

Introduction ............................................................................. 3

Broadening the Business Case ................................................... 5

“If you would like a time rebate, press 5…” .............................. 7

How Much Is Your Time Worth? Determining the Burden ....... 9

Capturing Constituent Benefits .............................................. 11

Putting it all Together ............................................................. 17

Insets

Principal Government-to-Business andGovernment-to-Citizen Interactions ...................................... 6

Impetus for Reform: Paperwork Reduction Acts .................... 8

University of Texas System’s University Lands OnlineAccounting System: Broadening the Business Case .............. 10

Digitization at the FDA: Speeding the Time to Market ........ 14

Streamlining Building Regulatory Processes Through IT...... 16

End Notes ............................................................................... 20

About Deloitte Research ......................................................... 22

TABLE OF CONTENTS

1

Deloitte Research – Citizen Advantage™

EXECUTIVE SUMMARY

One reality of globalization is that businesses can move theiroperations more easily than ever before. This is forcing cities,states, provinces, and countries to compete more vigorouslyin a host of areas to attract and retain businesses andknowledge workers. Tax laws, the legal system, and theregulatory environment, are critical to a company’s decisionon where to locate. Other factors such as the quality of life,education, and infrastructure also shape the view of howattractive the business climate is in a particular jurisdiction.The sum of how a government competes along thesedimensions is a gauge of its economic competitiveness.

One critical area of competitiveness where governments havea defining role to play is regulatory compliance. When Boeingannounced its decision in 2002 to move its headquartersfrom Washington State to Illinois, it cited burdensomeconstruction, zoning, and land use regulations in the stateas a prime factor for its decision. It should come as no surprisethen, that many governments have made regulatorystreamlining a top priority.

One of the most powerful ways to reduce compliance costsis through electronic government. Web-enabling andstreamlining permitting, licensing, and reportingrequirements can save businesses and citizens considerabletime and money as these examples demonstrate:

� The State of Oregon’s one-stop process for buildingconstruction approvals, which includes online permittingand reporting, saves the construction industry 10 percent,or $100 million annually, in reduced delays and permitprocessing costs according to state officials. If governmentsat all levels were to follow Oregon’s lead, the USconstruction industry as a whole could save between $15to $20 billion per year.

� The US Small Business Association’s BusinessCompliance One Stop Web site, saves businesses about$526 million a year by helping them find, understand,and comply with regulations.

� In Canada, the province of British Columbia’s OneStopBCWeb site cuts down on government paperwork costs forbusinesses by making it possible to apply for federal,provincial, and municipal business license registrationsonline in one place, rather than having to file with eachlevel of government. The cost savings to businesses fromhaving such a Single Business Number registration numberare estimated to be in the range of $14 million to $27million annually.

2


Unfortunately, such benefits are rarely reflected inthe evaluation of government IT investments. Mostgovernment Return on Investment (ROI) and business casemethodologies don’t measure the very real and quantifiablebenefits that accrue to citizens and businesses frome-government investments. This needs to change.

The value of a government investment has to be measurednot only by its direct return to government but by its returnto the people on whose behalf the investment is actuallymade —the citizens government represents and the businessesthat citizens work for and invest in. ROI should take intoaccount, to the extent feasible, the complete spectrum ofeconomic, social, and cultural benefits and costs of eachindividual element of an IT investment. This model ofROI—which we call Citizen Advantage™—measures thebenefits to government as well as to businesses and citizens,providing decision makers with a fuller picture of the costsand benefits associated with IT investment opportunities.

Constituent Costs and BenefitsThe costs that government rules and regulations imposeon citizens and businesses generally fall into threecategories:

1) Finding which rules and regulations are needed forcompliance.

2) Understanding what the regulations mean andfiguring out how to comply with them.

3) Complying with rules and regulations (typically thebiggest cost driver for citizens and businesses).

E-government isn’t usually the first thing that comes topoliticians’ minds when they’re debating whatgovernment can do to enhance constituent value, makecompliance with government rules and regulations easier,or create a favorable business climate. However, byminimizing the amount of time and effort it takes tocomply with government red tape and completegovernment transactions, e-government can have apositive impact on both business productivity andpeople’s quality of life.

3


INTRODUCTION

Technology is making the economy more global, moreinterdependent, and more decentralized. With capital,including human capital, more mobile than ever before,companies and individuals unhappy with their currentsituation can vote with their feet and move to a jurisdictionthat will better address their needs. In this environment, cities,states, provinces, and countries that provide a climatecongenial to wealth creation will prosper; those that don’twill stagnate.

Many factors come into play in determining what constitutesa healthy business climate: infrastructure, education, qualityof life, tax and regulatory structures, the legal system, laborand energy costs, the proximity to top-notch researchinstitutions, and so on. The sum of how a jurisdictionmatches up against others in these areas represents what’soften called its economic competitiveness.

Government can’t affect every factor that goes into assessingits economic competitiveness—for example, there’s not muchit can do about the weather, often a major consideration inquality of life. However, for most of these categories,government has a major—and sometimes defining—role toplay. It can improve the quality of life by reducing crime;lower labor costs by reforming workers compensation;enhance mobility by building more roadways or reducingcongestion; and ensure the supply of a skilled workforce byproviding a strong educational system.

Another area where governments have a central role to playin economic competitiveness is in the regulatoryenvironment. Doing just about anything today involvingcommerce entails complying with a host of regulations at alllevels of government. It’s estimated that complying withregulations costs between two and four percent of a typicalcompany’s receipts.1 In the US, manufacturers spend anaverage of $2.2 million per company just to comply withfederal workplace regulations.2 All in all, federal regulationscost citizens and businesses in the US $843 billion annually.3

Adding state and local regulations brings the costs ofregulation to nearly 17 percent of US national income, orone out of every six dollars produced in America.4 In Canada,regulatory compliance costs are estimated to total about 12percent of GDP.5

There is no shortage of strategies that governments can useto ease regulatory compliance burdens: cost-benefit analyses,regulatory impact assessments, sunset reviews, performancestandards, and deregulation are just a few of the options.One of the least understood—but most powerful—weaponsavailable for reducing compliance costs is informationtechnology. The strategic application of IT—particularlye-government—has the potential to radically reduce theamount of time and money that businesses and citizens mustspend to comply with rules and regulations. It can do so infive ways: 1) providing information in one easy-to-accesslocation; 2) simplifying and streamlining reporting

4


requirements; 3) reducing the number of forms; 4) makingtransactions (paying fees, obtaining permits) easier; and 5)helping businesses understand what regulations apply tothem, and how to comply with them.

Together, these capabilities could have a significant impacton a business’ bottom line. For example, several years ago,the State of Oregon embarked on a major effort to streamlinebuilding permitting processes as part of a broader programto improve the state’s business climate. The end result was aone-stop business process for obtaining approvals for buildingconstruction. Oregon officials estimate that the streamlinedreview process, complete with online permitting andreporting and a preapproval process for special constructionprojects, saves the construction industry 10 percent, or $100million annually, in reduced delays and permit processingcosts.6

Oregon’s efforts caught the attention of many businesses.One of them was Intel. While the state was busy streamliningits building permit process, the chip maker was searchingfor a place to build a new factory. One of Intel’s majorconsiderations was compliance costs. At the time, anywherefrom $14-16 million of the $2 billion it cost to build a large

chip facility was the result of complying with myriad stateand local regulatory requirements—permitting, plan reviews,reporting, inspections, etc. Intel was understandably anxiousto shave these costs.

After looking closely at a number of states, Intel selectedHillsboro, Oregon, a city of nearly 75,000 people, for thesite of its new chip plant. Oregon’s streamlined permittingprocess played a major factor in the decision to build theplant, which employs 2,000 Oregonians at full productionand took only 18 months to complete.7

Unfortunately, the Oregon example is still something of ananomaly. Most politicians and business people have no ideawhat a significant impact IT could potentially have oneconomic competitiveness. The first step in enlighteningthem is to change how government officials defineinformation technology’s Return on Investment (ROI)— thesubject to which we now turn our attention.

5


BROADENINGTHE BUSINESS CASE

With governments at all levels struggling with huge budgetdeficits, robust business cases have become de rigeur for allnew information technology outlays. While a few of theseefforts have yielded impressive results—the State ofIowa’s Return On Investment methodology is one notableexample—most government ROI and business casemethodologies suffer from at least one major flaw: a failureto measure the very real and quantifiable benefits that accrueto citizens and businesses from e-government investments.According to an official from the US Office of Managementand Budget (OMB), of the hundreds of e-governmentbusiness cases the agency reviews each year, only a tinyfraction even attempt to calculate the potential benefits tobusinesses and citizens.

This represents a significant hole in the business case analysisbecause information technology’s ROI can’t be measured onlyby direct return—by being more efficient for efficiency’s sake,or even only for the sake of generating cost efficiencies. Bothare vitally important, and should play a central role in ROIcalculations, but neither is sufficient; government competesnot for its own benefit but for the benefit of a wide range ofstakeholders with different needs and priorities. In privateindustry, value is defined ultimately by the value to theshareholders. Similarly, the value of a government investmenthas to be measured not only by its direct return to governmentbut by its return to the people on whose behalf the investmentis actually made—the citizens government represents andthe businesses that citizens work for and invest in.

Clearly, we need to expand the definition of informationtechnology’s ROI to include how the investment enhancesvalue throughout the entire value chain of governmentinvestment. To the extent feasible, the complete spectrum ofeconomic, social, and cultural benefits, and costs of eachindividual element of an IT investment or e-governmentprogram should be taken into account. This model of ROI,which we call Citizen Advantage, rigorously measures benefitsto government, businesses, and citizens. By defining,capturing, and measuring benefits associated with e-government that aren’t currently accounted for in most ROIcalculations, this model provides decision-makers with a fullerpicture of the costs and benefits associated with informationtechnology investment opportunities.

Consider one relatively simple example: When thegovernment of Pennsylvania enhances access to recreationfacilities in the state—by improving the process for obtainingcamping licenses, for example—the ROI can’t simply bemeasured by the impact of an incremental amount of newcamping license fees flowing into the state treasury. In thiscase, true ROI should also take into account the economicbenefits to citizens—improved access to recreation facilitiesleads to increased tourism, which doesn’t just increase taxrevenues for the state government but also increases newbusiness opportunities, which, in turn, creates new wealthfor the state’s citizens.

6


But even that is not the end of the value chain. The mostimportant impact of Pennsylvania’s improved process forobtaining camping licenses may not be just the economicdevelopment it generates for citizens but what it allowscitizens to do—how it contributes not only to their standardof living but to their overall quality of life.

This is only one example of how Web-enabling an interactionwith government, in this case a licensing application, canprovide additional value in a number of unforeseen ways.The same will generally be true for each of the other principalinteractions businesses and citizens have with government:registering, permitting, reporting and paying. (See box.)

Principal G-to-B and G-to-C Interactions:� Registering. Legally forming and operating a business

requires registering the business with multiplegovernment agencies across multiple levels ofgovernment. For citizens, countless activities alsorequire registering with the state, from getting a licenseplate to obtaining unemployment benefits.

� Credentialing/licensing. Many occupations requireobtaining a license or credentials from government,including architects, land surveyors, barbers, lawyers,real estate brokers and taxi drivers. Citizens are requiredto obtain licenses for everything from going fishing todriving a car.

� Permitting. Governments require citizens andbusinesses to obtain permits for thousands of differentactivities, ranging from building an addition onto ahouse to transporting nuclear waste.

� Reporting. Every citizen and business face some levelof reporting burden to government. For most citizensthe bulk of this burden lies in the tax returns theymust file each year, while businesses must file reportson everything from environmental impacts tocompliance with labor rules.

� Paying. The largest number of transactions peoplehave with government fall in this category. Payments,of course, will often overlap with one of the other fourcategories.

In addition to being the right thing to do, measuring andquantifying the value of e-government to constituents is alsopolitically shrewd because it helps IT leaders build a morepowerful, multi-faceted case for funding. Politicians’ eyes tendto glaze over when discussions turn to the internal benefitsof technology projects. Demonstrating the value ofdigitization as an economic competitiveness tool, on the otherhand, would resonate with them because it helps a veryimportant constituency: the business community.

This gives CIOs an opportunity to enlist a new ally in thefight to get e-government projects funded. The businesscommunity has long been on the front lines in battles tofight off new regulations or get rid of existing ones. However,when it comes to promoting e-government—potentially apowerful means of reducing compliance costs—business hasbeen AWOL from the debate. Why? Because most companiesdon’t have even the slightest conception of how e-governmentwould affect their bottom line—no one in government hasever tried to make this case to them.8

7


“IF YOU WOULD LIKE A TIME REBATE,PRESS 5…”

E-Government is not about putting thousands ofgovernment forms or reams of information online. Rather,it is about government making better use of technology tobetter serve citizens and improve government efficiency,cutting government’s time to make decisions from weeksor months to hours or days.”

–President George W. Bush’s Management Agenda

The late 1970s saw the launch of a tax revolt sparked byCalifornia’s Proposition 13. Similarly, the first decade of the21st Century may see the emergence of a time revolt, as peoplegrow increasingly frustrated with standing in line to get theirdriver’s license renewed or waiting on hold to talk to theIRS.

The old saying that “time is money” has never seemed truer.In the midst of time-saving technologies, people feel theirday is stretched thinner than ever. Marianne Lewis, anassistant professor of management at the University ofCincinnati, calls it a “vicious cycle.” Says Lewis, “The morewe supposedly save time, the more we intensify the need forspeed. We’re constantly intensifying.” Ironically, technologyis often seen as the villain in the time wars, as consumers ofboth commercial and government services chafe at how longthey spend completing seemingly simple transactions.

Just as government has faced the demand for tax cuts byissuing tax rebates, government may now need to address agrowing public desire for a “time rebate”—a single-minded

focus on cutting down the time it takes to comply withgovernment regulations and complete transactions. Thechallenge is to employ technologies more widely and moreeffectively by looking at government systems and processesfrom citizens’ and businesses’ points of view.

One of the most unpleasant experiences an individual canhave with government is having to reregister their car or truckafter moving to a new state. This seemingly simple transactioncan be enormously frustrating and time-consuming,involving considerable research, endless phone calls, hourson hold, multiple letters, and several trips to the departmentof motor vehicles. One Maryland resident who went throughthis process said it was the most difficult, frustrating processshe has ever been through. Each time she called theDepartment of Motor Vehicles she received a different answerto her questions about what information she was required tobring with her to the DMV office. All in all, the process ofchanging her plates and driver’s license ate up more than 10hours of this professional’s time.9

What if a streamlined process and a Web-based applicationcould cut this time by 90 percent? How much would such a“time rebate” be worth to this busy executive whose time isworth $200 an hour, or to the school district that won’t haveto pay a substitute teacher for the day away from theclassroom that their newly recruited out-of-state teacher mustspend handling her own DMV transactions?

8


The same kinds of questions can be asked about all kinds ofinteractions with government. Consider a medium-sizedbusiness trying to get a permit to expand their operations.How much time and money could be saved by not having tohire lobbyists and consultants to navigate their way througha maze of multiple agencies? What are the savings in paperand postage that result from not having to fill out and mailmultiple forms? Or to take another example: What wouldthe value to a pharmaceutical company be if the Food and

Drug Agency (FDA) were able to use information technologyto cut the time it takes to approve a new drug by one-third?

Is it possible to quantify such savings? Yes. Can the samemetrics be used to determine the benefits as those used fortraditional ROI calculations for government? No. Evaluatingthe savings to business and citizens requires a new approachand a different set of metrics. The first step is figuring outthe costs of doing business with government.

IMPETUS FOR REFORM: PAPERWORK REDUCTION ACTS

A major impetus for many IT-driven efforts to trimcompliance costs are the paperwork reduction acts passedin recent years in several industrialized countries. Theselaws typically require agencies to reduce paperwork burdensand make government forms and transactions availableonline.

Australia. In 1997, the government of Australia launched“More Time for Business,” a major initiative aimed atreducing the paperwork and red tape imposed on smallbusinesses. More Time for Business required agencies tocut the burden of statistical collections on small businessesby 20%; instituted a provision to abolish outdatedregulations and make new ones affecting businesses subjectto a sunset clause; and called for a single point of access forbusiness information across all levels of government. Itfurther committed to streamlining business licensing andapprovals and merging similar licenses into single, commonlicenses over the next four years. The goal was to turnregistering a business Down Under from a nightmarishmaze involving a dozen or more agencies that administeredover 6600 different licenses into a one-stop registrationprocess at the Australian Business Register. The BusinessEntry Point (BEP) Web site came online in July 1998 andnow has a number of resources available, including anonline application for a tax file number and a BusinessRegistration Process number. The site gives each Australianbusiness one “business number” that identifies them toeach of the 5000 different government entities they mightencounter in Australia.

Canada. The Business Paper Reduction Act was passed in1998 in response to a series of initiatives by the federalgovernment to make Canadian businesses more

competitive. A 1994 survey by the Canadian Federationof Independent Business (CFIB) revealed that more than70 percent of their members identified governmentpaperwork as a serious problem.10 While the burden hourson small businesses had dropped from a high of 803 hoursin 1978 to 183 hours in 1995, the federal governmentbelieved the paperwork cost to small businesses was stillunacceptably high. The government’s Treasury Boardteamed with CFIB in a Joint Forum on Paper BurdenReduction to address 100 “information burden irritants”that small businesses had identified. Among other things,the government responded by reducing the frequency ofpayroll reporting, streamlining the cumbersome Recordof Employment form, accelerating payments to suppliers,test marketing new government forms, surveys, and auditmanuals and offering electronic filings and payments.

United States. In 1995, Americans spent close to sevenbillion hours on federal government paperwork.11 Thistranslates into roughly 26 hours per person. In an effortto reduce this burden, Congress passed the PaperworkReduction Act, forcing all federal government agencies toreview the forms they require of the public. The goal:reduce the total information collection burden for fiscalyears 1996 and 1997 by ten percent, and by five percentfor 1998 through 2001. In effect, the Act has compelledmany federal agencies to streamline their forms and bettercoordinate with other agencies in order to improve thecollection, use, and dissemination of the informationrequired of the public. According to the Office ofManagement and Budget, the act has caused federalagencies to reduce the “hassle factor,” simplify content,and work towards identifying and collecting onlyinformation that is actually needed and used.

9


The costs that go into doing business with government—whether it’s applying for benefits, paying a parking ticket orcomplying with government rules and regulations—can bebroken down into roughly three main categories:

� Find. The discovery cost of simply finding out what rulesand regulations you need to comply with are oftenextremely high. These range from the opportunity costs ofhaving to deploy internal resources to complete certainactivities to the hard dollar costs of hiring a lawyer,accountant or consultant to carry out more complexinteractions. We typically think about such costs mostlyin terms of their cost to businesses, but they can also bequite high for citizens, even for fairly simple transactions.

HOW MUCH IS YOUR TIME WORTH?DETERMINING THE BURDEN

� Understand. After finding the rule or regulation thatapplies to your situation, you still have to figure out whatit means and how to comply with it. While this soundsrelatively straightforward, the vast number of governmentregulations and their complexity can make it extremelycostly and time-intensive. The Occupational Safety andHealth Administration (OSHA), for example, issues over4,000 detailed regulations that cover everything fromslippery floors to proper railing height. Without help froma consultant or lawyer, it’s nearly impossible for the averagesmall business owner to understand, never mind comply,with all these regulations. “Most businesses will try to dothe right thing, but they don’t even know which rules applyto them or how to comply,” says OSHA economist EdStern.

FIGURE 1. DETERMINING THE BURDEN

SOURCE: DELOITTE RESEARCH

FIND

The cost of finding out what rulesand regulations you need tocomply with range from theopportunity costs of having todeploy internal resources tocomplete these activities, to thehard dollar costs of hiring alawyer, accountant, or consultant.

Stage 1

UNDERSTAND

This stage involves figuring outwhat the rule means and how tocomply with it. The complexityand vast number of governmentregulations can make this anextremely costly and time-intensive activity.

Stage 2

COMPLY

Actual compliance, the thirdstage, is typically the biggest costdriver for businesses and citizens;costs can include everything fromgas, postage, time, and consultantcosts, to the costs associated withbuying and installing newequipment.

Stage 3

10


� Comply. Actually complying with rules and regulations—including paying fees and user charges—is typically thebiggest cost driver for businesses and citizens. The costs ofcompliance can include everything from gas, postage, time,and consultant fees, to the expense associated with buyingand installing new equipment and hiring more people.Thomas Hopkins, the Dean of Rochester Institute ofTechnology’s Business school in Rochester, New York,estimates that in 2000, the costs of complying with federallaws alone exceeded $843 billion—or more than $8,000per household!12

All three categories should be considered when measuringthe burden of government. Generally, the burden of findingand understanding which rules and regulations apply to yoursituation tends to be much higher for those less familiar withthe sometimes Byzantine workings of government. Usually,because they lack a stable of lawyers to help them navigatethe public sector, each of the three stages is proportionatelymore costly for individual citizens and small businesses thanfor larger companies.

Donna Klein is an accountant at J. Cleo Thompson &James Cleo Thompson, Jr., a small Texas oil and gasproducer with 20 full-time corporate employees and twofield offices. As part of her job, she’s stuck with theunenviable task of filling out all the governmentpaperwork that allows the firm to go about its businesswithout running afoul of the law. To do her job well, Kleinhas had to learn on her own something she was nevertaught in accounting class: the art of navigatinggovernment red tape. Each month she fills out 11 differentforms for four separate state agencies—and that’s not evencounting the federal paperwork. “I spend about one weekof my time each month just doing government paperworkand reporting,” she says.

One of the reports is for the West Texas Operations ofthe University of Texas System’s University LandsAccounting Office. The reports are required of all oilcompanies that operate oil and gas leases on PermanentUniversity Fund lands in oil-rich west Texas. Under theold paper-based system, she spent three full work dayseach month filing reports and amendments to theUniversity Lands office. Not anymore. Thanks to two newWeb-enabled systems, called ERS and e-CARE, that allowcompanies to submit reports and payments online, Klein

now spends only four hours a month completing thereporting requirements. Over the course of a year, thisreduces the amount of time she must spend on paperworkfrom 288 hours to only 48 hours—a difference of a factorof six. This saves J. Cleo Thompson about $12,000 peryear—not an insignificant sum for the small company.

Equally important, the online system has given DonnaKlein peace of mind. “I can anticipate the next reportand go on vacation without having to worry aboutmissing a payment,” she explains.

The cost savings to the University of Texas from Web-enablement amount to a little more than $300,000 ayear. While the University Lands office hasn’t officiallycalculated the savings to business, a back-of-the-envelopecalculation makes clear that they dwarf the savings tothe state itself. Extrapolating from the $12,000 in savingsrealized by J. Cleo Thompson to the 225 other oil andgas companies now filing electronically rather than withpaper, would yield a very conservative $2.7 million insavings (Since many companies have more leases than J.Cleo Thompson and therefore would have to devote moreeffort to the government paperwork, the actual savingsare likely to be much higher.)

UNIVERSITY OF TEXAS SYSTEM’S UNIVERSITYLANDS ONLINE ACCOUNTING SYSTEM

11


CAPTURINGCONSTITUENT BENEFITS

Depending on the nature of the interaction and the type ofWeb-based solution employed, e-government couldpotentially impact all three cost categories—find, understand,and comply—for each of the five common types oftransactions citizens and businesses have with government—registering, licensing, permitting, reporting, and paying.

FindFor any entrepreneur trying to start a business, deal with anetwork of vendors, or do business with a state or federalagency, navigating the bureaucratic backwaters ofgovernment regulations can dim even the brightest dreams.Fortunately, the cost of finding the applicable rules andregulations needed for compliance can be reduced by Webportals, search engines, and expert advisor systems thatinform a business of exactly what rules and regulations applyto them, based on their answers to a series of questions.Governments worldwide have begun to set up one-stopshopping sites for businesses that incorporate many of thesecapabilities. The U.S. Small Business Compliance one-stopshop portal, discussed in more detail later, has more than20,000 links to federal, state, local, and legal organizationsorganized around 39 topics ranging from licensing andpermitting to exporting.13

FIGURE 2. THE CITIZEN ADVANTAGE FRAMEWORK


FIND

UNDERSTAND

COMPLY• Register• Credentialing/

Licensing• Permitting• Reporting• Paying

12


In addition, the State of Michigan created a one-stop shopon its eMichigan site for everything from businesses surveyingpossible expansion options to small business start-ups andvendors seeking to sell goods and services to state agencies.The site even games out common questions from typicalsmall business users. (See below).

Starting a Business“I want to open up a pizza place in Saginaw…what doI have to do? How many of these requirements can Ifulfill at my computer?”

“I want to find out if the name Viji’s Pizza and Pasta isavailable or whether someone in the State is alreadyusing it.”

“How do I trademark my product or service with theState?”

“Do you have any information about availablecommercial or industrial property in Michigan…I’mconsidering expanding/relocating in the State.”

“Is Michigan an attractive location economically formy small business?”

UnderstandExpert systems, as well as other forms of artificial intelligence,can trim the costs involved in understanding regulations bydiagnosing how rules apply to an individual business orcitizen. OSHA, for example, has built ten expert systems,termed “Expert Advisors,” that provide online ordownloadable customized compliance assistance for variousOSHA regulations. Based on answers to a dynamically-created series of questions, the expert advisors explain exactlywhat needs to be done to comply with a particular regulation.For example, in 10 to 15 minutes the Hazard AwarenessAdvisor can interview a restaurant owner, analyze herworkplace based on her answers, and write a customized,five-to-twenty page report on probable hazards.14 Typically,such a report would require a very knowledgeable professionala day for a visit and another day or two to write the report.OSHA estimates savings to small businesses from just thissingle expert advisor to amount to between $40 and $83million a year, depending on the number of users.

Other ways that e-government can reduce the costs ofunderstanding regulations include: posting detailed answersto frequently asked questions; prepopulating forms; andhosting bulletin board discussions about the regulations.

Indirect Costs

� Opportunity Costs (time savings for business compliance and filing)

� Time to Market (a company can go to market more quickly thanksto a reduction in the number of days it takes to receive a permitand license)

Direct Costs

� Postage

� Printing

� Gas/travel

� Professional fees (lawyers, accountants, and consultants)

� Personnel (fewer people needed to engage in regulatorycompliance)

� Regulatory savings via transition to compliance from enforcement

TABLE 1. SAVINGS OPPORTUNITIES FORCONSTITUENTS FROM E-GOVERNMENT


ComplyJust as compliance constitutes the largest government-imposed cost driver, it is also the area where savings frome-government are potentially the greatest. Gas, postage, time,and resource savings are all possible from providing Web-enabled forms and transactions.

To illustrate, the city of Tampa has developed a tool thatallows a citizen to calculate the cost savings of doing businessonline versus traveling to government offices for several ofthe services offered by the city. The e-government savingsinclude variables preloaded to reflect common conditions ofthe average time it takes to complete a variety of transactions,such as business tax renewals, express permits, parkingcitations, and the parking lot monthly renewals payments.15

Information needed to make this calculation includes traveldistance to the city agency, average car miles per gallon, costper gallon of gasoline, parking meter or lot fee, and the valueof the individual’s time per hour. Based on this information,the calculator will estimate the savings to the constituent ofdoing business with the city online instead of in line. (SeeFigure 3 on page 13)

13


FIGURE 3. TAMPA SAVINGS CALCULATORSavings from Paying Parking Citations Online vs. in Person

SOURCE: DELOITTE RESEARCH AND THE CITY OF TAMPA

National Telecommunications and Information Administration (September 2001)American City Business Journals (July 2001)Pew Internet and American Life Project, Government Web Site Survey (September 2001)

1

2

3

• Internet users in Tampa (52% )• Parking citations per year (200,000 )

104,000 potentially paid online

Indirect Costs

1

2

• How many of those citizens will“pay” the parking citation online?

55% or 57,2003

• Average time it takes to payonline

10 minutes

• Average time it takes to pay inperson, including travel and waittime

1 hour and 10 minutes

Time Saved1 hour

• Income per capita in Tampa

$29,3974

• Average cost per hour of Tamparesidents

$14.12 per hour

x cost per hour

$807,664

• Gasoline cost of paying in person

$1.50

• Parking cost of paying in person

$1.00

$143,000

$950,664

Total savings

Direct Costs

14


Compliance savings are also possible when governments usecommon data standards and middleware technology to mergeforms and applications, thereby enabling businesses andcitizens to do one-stop shopping online instead of filling outmultiple forms with the same information for multipleagencies. The State of Pennsylvania’s “PA Open for Business”Web site, for example, allows a business to enter all theinformation needed to register with the state in one place,

Few areas demonstrate the potentially powerful effects thatIT can have on reducing compliance costs better than theFDA’s drug and medical device approval process. Nomanufacturer can market a drug or medical device, alterits manufacturing processes, or propose a new use for itwithout the approval of the US Food and DrugAdministration (FDA). The average time it takes for adrug or medical device to go through the FDA’s reviewprocess is about 400 days, over twice the statutory limitof 180 days (this is about a 100 percent improvementfrom just a few years ago).16 This is important becauseevery day that their product is kept off the market costsmedical device manufacturers and pharmaceuticalcompanies anywhere from one to four million dollars.

While information technology alone can’t “fix” thissituation, it can play a big role in improving it. “Astandardized electronic reporting and submission processwould increase our efficiency, enhance our ability to reviewsafety data, and help us communicate better withindustry,” asserts Dr. Randy Levin, Director for the Officeof Information Management in the Center for DrugEvaluation and Research at the FDA.17

Some experts believe that digitization of all the FDA’sprocesses could ultimately cut the average time it takes toapprove a new drug by one-third to one-half.18 Accordingto Tufts University’s Center for the Study of DrugDevelopment, a 25 percent reduction in the time it takesto approve an application would reduce the average costsof developing each new drug by a whopping $100 million.Cumulatively, this would translate into billions of dollarsin savings to the pharmaceutical industry.19

instead of having to go to five different agencies. A processthat once took days or weeks has been reduced to one hour.If 50 percent of all new businesses in the state used PA Openfor Business and each saved four to six hours per companyper year, it would translate into a one-year opportunity costsavings in the range of $7.4 million to $11.1 million forPennsylvania businesses.20

DIGITIZATION AT THE FDA: SPEEDING THE TIME TO MARKET

There are three major ways that digitization of the FDA’sapproval process could save businesses time and money:

Reduced paper and postage costs. Each new drugapplication represents about 500,000 pages worth ofinformation. The FDA receives hundreds of these giantapplications each year, along with thousands of phonebook-sized post-marketing safety reports from industry.This costs companies tens of millions of dollars in printingand mailing costs. Electronic submission could slash thesecosts dramatically.

One way technology can do this is through e-submissions:moving the new product application and follow-upreporting into an electronic framework. The FDA receivesthousands of submissions each year—many containinghundreds of thousands of pages worth of information.Applications that come in on paper can take an FDAreviewer at least two weeks just to go through a singlesegment of the clinical trial section of the submission. Why?Because she has to wade through volume after volume ofdata sets manually, not to mention cross-referencing allthe relevant information. E-filing shaves this process totwo days because the computer does most of the searching.The FDA has made some progress moving applications toe-filing—the average number of paper volumes has fallenby half and about three-fourths of drug applications nowhave at least an electronic component. However, still onlya small fraction of applications are submitted entirelyelectronically.

15


Reduced risk exposure for FDA through better datacapture. When the FDA gives tentative approval tomanufacture a drug or medical device, it is contingent ona year-long monitoring effort of thousands or millions ofpatients. This stage is called post-marketing surveillance.Previously, due to concerns that it will be much harder topull the plug on the drug once it’s actually out on themarket, the FDA has been very reluctant to move to thisstage until they are absolutely sure the drug is safe. Real-time data analysis could significantly reduce the FDA’s risksin moving drugs more quickly to this stage. “If we hadbetter post-marketing surveillance we could comfortablymove the approval process up, and we would not be in theposition where we’re uncomfortable with the approvalbecause we’re not sure we have all the data and we’re notsure we’ll ever get it. So people sit on their hands and donothing, or keep putting off the approval,” says FDA expertAlistair Wood, President of Vanderbilt’s College ofMedicine. “If we had a process that we had a high level ofcomfort with, we could approve drugs more rapidly withan information technology plan in place that bettercaptured data from tests.”

A pilot project launched by the FDA would create a sharedelectronic repository where companies would submit theirclinical trial data to a trusted third party who would hostthe secure site. Instead of having to wait months and

months to get tens of thousands of pages worth of statisticsthat require a team of FDA scientists just to decipher, theFDA would be able to look at the clinical trial data in real-time. The agency would then be more comfortableapproving drugs on a trial basis. “The way we can accessinformation and communicate with industry would begreatly improved with this capability,” says the FDA’s Levin.

Improved collaboration and communications betweenthe FDA and industry. Improving collaboration andcommunications between FDA and drug companies is alsocritical to speeding the approval process. Getting the FDAand a manufacturer to agree on labeling for a drug can beextremely time-consuming; each tiny label is packed withlots of scientific and intellectual content. Often the labelwill go back and forth many times before agreement on itswording is reached. Even today, this process is oftenconducted by mail, fax, and phone. “Nothing kills moretime than getting a single question answered,” says JimBenson, the former Vice President of AdvaMed, the tradeassociation of medical device manufacturers. “Days orweeks might pass as the FDA or the company waits for ananswer to a simple question.” AdvaMed and other tradeassociations are pushing for an access-protected secure chatroom where a company could submit part or all of theapplication online, allowing companies and FDA reviewersto go back and forth in real-time. “It would save anenormous amount of time,” Benson says.

Better knowledge-sharing could not only speed up the labelapproval process, but by fostering a deeper understandingbetween the FDA and a drug manufacturer about a givenapplication, it could also help to avoid delays later in theprocess caused by a lack of shared understanding ofprotocols and review processes. Recognizing this, the FDAhas embarked on several projects to speed and improveinformation exchange between industry and FDAreviewers, ranging from secure e-mail to creating a sharedelectronic repository where companies would submit theirapplications to a trusted third party who would host thesecure site.

TABLE 2. KEY FDA ELECTRONIC INITIATIVES

Electronic Submissions

SOURCE: U.S. FOOD AND DRUG ADMINISTRATION CENTER FOR DRUG EVALUATIONAND RESEARCH

• New Drug Applications (NDAs)• Abbreviated New Drug Applications (ANDAs)• Investigational New Drug Applications (INDs)• Biologic Licensing Applications (BLAs)• Individual Postmarketing Safety Reports (ICSRs)• Drug Master Files (DMF)• Postmarketing Adverse Events Reporting• Drug Advertising Material

Electronic Review

• Electronic Document Room• Secure Email• Division Files System

16


Even greater benefits are possible when governments useWeb-based technology to share information across state orprovincial boundaries and across levels of government,enabling a business operating in multiple states or provincesto reduce the paperwork it has to complete with each differentjurisdiction. In Canada, the province of British Columbia’sOneStopBC site makes it possible to apply for federal,provincial, and municipal business license registrations onlinein one place. Also available on the site are applications for aSingle Business Number registration, Worker’sCompensation Board registration, and a proprietorship orpartnership business name registration. The cost savings toCanadian businesses from the Single Business Numberregistration alone are estimated to be in the range of $14.52million to $26.76 million annually.21

The US federal government is also seeking to reduce thetime and resources businesses and individuals have to expendcomplying with paperwork across levels of government bycreating a registry and repository that would enable thesharing and reuse of electronic information across both federalgovernment agencies and federal, state, and localgovernments. The key technology enabler is XML, a moreinformation-intensive variant of the hypertext markuplanguage (HTML) used to code most Web pages. XML letsWeb users exchange data between different devices runningall sorts of applications, even if they use different platformsand languages. By standardizing data formats in XML andlinking government systems, the centralized system wouldallow the federal government to collect information onceand use it many times. This would eliminate the need forbusinesses, individuals, and different levels of governmentto file the same information over and over again.

The National Conference of States on Building Codes and Standards estimates that the construction industry could savebetween $15 to $20 billion per year if governments at all levels in the US were to streamline their compliance processesthrough the use of information technology. The cost savings estimate is based on actual experiences in state and local governments:

STREAMLINING BUILDING REGULATORY PROCESSES THROUGH IT

Jurisdiction Project Results

State of Oregon

Los Angeles, California

Fairfax County, Virginia

San Diego, California

Savannah, Georgia

Commonwealth ofPennsylvania

One-stop business process for buildingconstruction approvals.

Redesign of the building regulatory processinvolving online permitting, IVR inspectionrequest system and electronic planssubmittals.

Online permitting processes and inspectionrequest systems

Process 2000-Speeds up the permittingprocess and fast tracks plans reviews andtracking through IT.

Follows San Diego’s Process 2000 model

Adoption of a uniform statewide buildingcode, effective April 2004. Applies uniformlyacross 2,600 local jurisdictions.

SOURCE: NATIONAL CONFERENCE OF STATES ON BUILDING CODES AND STANDARDS

10% savings to the state in building permit processing costs;10% savings to the construction industry through reduction ofdelays. In 2001, these savings were $7.5 million and $100million, respectively.

Reduced median wait time at the permit center from 2 or 3hours to 7 minutes; reduced plan check time from 10 weeks to10 days; reduced inspection wait from 4-5 days to 24 hours for99% of inspections. Savings to the private sector are in the tensof millions of dollars. The city handled an 88% increase inconstruction activity with only a 1.5% increase in staff.

County services available online anytime; $1.5 millionoperational savings to the city in 2001.

60% reduction in regulatory processing time and $10 millionsavings to the city over 4 years; $3.4 million savings to theindustry in direct time labor.

Savings of 19 days in direct building department staff time;savings to the industry of 60% reduction in time for regulatoryreview and over $1,000 in permit fees.

State legislation passed in 1999; code to go into effect April2004.

TABLE 3.

17


Every year 4,000 regulatory changes are introduced by theU.S. federal government.22 Lacking a stable of in-houselawyers to help them navigate the regulatory maze, smallbusinesses are the hardest hit by the regulatory tsunami. Theyspend about $500 billion a year, or $7,000 per employee,complying with federal government regulations, accordingto the Small Business Administration (SBA).23 “The smallerthe business, the greater the relative time to comply,” explainsRon Miller, the SBA’s Assistant Administrator forE-Government.24

PUTTING IT ALL TOGETHER

TABLE 4. SBA’S BUSINESS COMPLIANCE ONE STOP

Phase IBusiness Law.gov

“Library”

Resource guides on 39 business topics

Answers to common questions

Links to over 20,000 state and localgovernment sites

Information on the latest legal andregulatory changes

Compliance assistance tools

Limited online transactions, such asregistering for an Employer IdentificationNumber (EIN).

What laws and regulations apply to me?

Where do I find them?

What do they mean?

What do I need to do to comply?

How can I do it online?

Where can I get additional assistance?

SOURCE: U.S. SMALL BUSINESS ADMINISTRATION

Industry specific: test pilot is truckingindustry with rollout to health care, food,mining, and chemicals

Specialized resources

Compliance assistance tools

Streamlined data collection anddissemination to appropriate agencies

Online transactions

Phase IIBusiness Compliance One Stop

“Librarian”

Next PhaseIndustry Portals

Spin-offs

Services include: Helps to answer questions: Services planned:

Miller works for an agency whose main job is to advocate onbehalf of small businesses. A big part of that mission is seekingto reduce their compliance burdens. In recent years, theagency has become convinced that e-government has a criticalrole to play in achieving this objective. “We believe we cansave small businesses significant amounts of money that theyare now devoting to compliance by building tools to makethe current regulatory burden less onerous,” says Miller.

18


FIGURE 5. SBA’s BUSINESSLAW.GOV AND BUSINESS COMPLIANCE ONE STOPESTIMATED ANNUAL COST SAVINGS

SOURCE: U.S. SMALL BUSINESS ADMINISTRATION

FIND

One Stop PortalCost Savings: $56 million

Profiler Project(Database of complianceassistance tools at majorregulatory agencies)Cost Savings: $62 million

TOTAL: $118 million

UNDERSTAND

Compliance Assistance ToolsCost Savings: $300 million

TOTAL: $300 million

COMPLY

Integrated State and FederalEmployer Identification Number(FEIN) ApplicationCost Savings: $96 million

Interactive Employment EligibilityVerification FormCost Savings: $12 million

TOTAL: $108 million

the necessary information once, in one place. This wouldreduce the amount of time each trucker spends ongovernment paperwork by 40 percent, according to SBA,saving truckers approximately $334 million annually.26

The trucking portal is projected to be up and runningsometime in 2004. If all goes well, other industry portals,including those for health care, chemicals, food, and miningare planned. Cumulative projected savings to industry,according to the SBA: $2 billion.

The maximum benefits to economic competitiveness fromdigitization will materialize when government agencies beginto offer end-to-end digital transactions that walk businessesand citizens through each phase of the compliance process.This is the end goal at the Department of Labor and OSHA,where policymakers eventually hope to build electroniccompliance assistance advisors for every major regulation.The idea is that an employer would log onto the Web site,answer a number of questions—the size of his business, thestate it is located in, whether it has government contracts,

TABLE 5. MOTOR CARRIER ONE STOPPotential Cost Savings to the Trucking Industry

Regulatory Burden in FY2002

SOURCES: U.S. SMALL BUSINESS ADMINISTRATION AND OFFICE OF MANAGEMENTAND BUDGET

$836 million x

Based on 20.9 millionburden hours multipliedby $40 per hour rate

40%

SBA is focusing onstreamlining 12 out of 38required forms,representing 99%of the burden.

CostSavings

= $334 million

SBA’sReduction Target

Towards that end, the SBA has built a BusinessCompliance One Stop Web site for small businesses(www.BusinessLaw.gov). The site, which will eventuallybecome the federal government’s business gateway, helpsbusinesses find, understand, and comply with regulationsby providing resource guides on 39 business topics, answersto common questions, links to over 20,000 state and localgovernment sites, information on the latest legal andregulatory changes, personalized compliance assistance toolsand various online transactions, such as registering for anEmployer Identification Number (EIN).

All in all, SBA estimates the Business Compliance One Stopsaves businesses about $526 million a year by reducing theamount of time and money they must spend finding theregulations that apply to them, understanding their meaning,and then ultimately complying with them.25

The next phase of the SBA’s electronic compliance assistanceproject will take this concept a step further by providingindustry-specific compliance capabilities. The test pilot isthe heavily regulated trucking industry. Today, just to operatea rig, a trucker might have to fill out up to 38 forms from ajumble of federal and state agencies. According to thetrucking industry, this costs the average trucker about $500in lost time.

The SBA is working with industry and the Department ofTransportation to streamline this process by standardizingfederal and state information collection requirements andemploying interactive, electronic “smart” forms and expertadvisor or Wizard tools. The goal: allow truckers to fill in all

19


etc. The program would then tell him exactly whichregulations applied to his business, list specific advisorsrelevant to the firm, and suggest the best order for usingthem. Every business would be able to get a complete list ofall the health, safety, and labor requirements it had to complywith by law, as well as videos and other tools that explainedhow to do so. All reporting and payment requirements wouldalso be offered online.

ConclusionE-government isn’t typically the first thing that comes topoliticians’ minds when they’re debating what governmentcan do to enhance economic competitiveness. But thatdoesn’t make it any less potent as a tool for doing so. Byminimizing the amount of time and effort it takes to complywith government red tape and complete governmenttransactions, e-government can positively impact bothbusiness productivity and people’s quality of life. Not onlyis this good for citizens and businesses, but ultimately it willalso be good for the government treasury. “Savings tobusinesses can be reinvested,” explains SBA’s Miller.“Reinvestments can lead to productivity enhancements andjob creation which, in turn, can increase revenues togovernment coffers.”

20


Endnotes1 W. Mark Crain and Thomas D. Hopkins, “The Impact of

Regulatory Costs on Small Firms,” A Report for the U.S. SmallBusiness Administration’s Office of Advocacy, Washington, DC,2001, and e-mail from Mark Crain to the author, August 6,2003. In Australia, a 1996 survey by the Queensland Chamberof Commerce (QCCI) of Australian businesses found theongoing cost of compliance to be between 1.9 percent and 3.5percent of firms’ turnover.

2 W. Mark Crain and Joseph Johnson, “Compliance Costs ofFederal Workplace Regulations: Survey Results for U.S.Manufacturers,” Mercatus Center, George Mason University,December , 2001.

3 W. Mark Crain and Thomas D. Hopkins, “The Impact ofRegulatory Costs on Small Firms,” A Report for the U.S. SmallBusiness Administration’s Office of Advocacy, Washington, DC,2001 and e-mail from Mark Crain to the author, August 6,2003, p.6.

4 Peter J. Ferrara & Daniel M. Clifton, “Cost of Government DayReport Calendar: Year 2002,” Americans for Tax ReformFoundation, 2003, p.13.

5 Fazil Mihlar, “Regulatory Overkill: The Costs of Regulation inCanada,” Fraser Institute, Vancouver, British Columbia,Canada, 1996.

6 “The Business Case for Streamlining the Nation’s BuildingRegulatory Process Through the Effective Use of InformationTechnology,” National Conference of States on Building Codesand Standards, available online at www.ncsbcs.org.

7 Ibid.

8 One reason the business community does not know how e-government could help them is that regulatory impact analysestypically do not reveal the time and cost of finding out whichrules apply to specific factual situations. In fact, these costs arein the billions of dollars.

9 Labor economics theory holds that when working, the individualis paid a wage of “w” dollars per hour, in which the wagemeasures the opportunity cost of leisure. Surveys find that mostpeople value their leisure time about half their wage rate. See:Avinash K. Dixit, Barry J. Nalebuff, With Barry Nalebuff,Thinking Strategically: The Competitive Edge in Business, Politicsand Everyday Life, New York: Norton, W. W. & Company, Inc,1993.

10 “Reducing the Paper Burden on Small Business,” A ProgressReport by the President of the Treasury Board, October, 1997.

11 “Reports to Congress under the Paperwork Reduction Act of1995,” Office of Management and Budget, Office ofInformation and Regulatory Affairs, September, 1997.

12 W. Mark Crain and Thomas D. Hopkins, “The Impact ofRegulatory Costs on Small Firms,” A Report for the U.S. SmallBusiness Administration’s Office of Advocacy, Washington, DC,2001, p.6. It costs an additional $21 billion a year for thegovernment to write, administer, and enforce regulations. See:Susan Dudley and Melinda Warren, “Regulatory Response: AnAnalysis of the Shifting Priorities of the U.S. Budget for FiscalYears 2002 and 2003,” Regulatory Budget Report No. 24,Weidenbaum Center on the Economy, Government, and PublicPolicy, Washington University, and Mercatus Center at GeorgeMason University, June 2002, p.2.

13 Jason Miller, “SBA’s new portal portrays OMB’s idea of e-gov,”Government Computer News, www.gcn.com, January 7, 2002.

14 E-mail communication from Edward Stern, an economist atthe Occupational Safety and Health Administration, April 1,2003.

15 The calculator is available at http://www.tampagov.net/egov/savings_estimator.

16 Roger D. Feldman and Mark V. Pauly, “American Health Care:Government, Market Processes and the Public Interest,”Independent Institute Website, Oakland, CA.

17 Dr. Randy Levin, interview with the author, May 2003.

18 These estimates come from various interviews with industryexperts, academics, policy analysts, and FDA staffers.

19 U.S. Food and Drug Administration News Release, “FDALaunches Initiative to Improve the Development andAvailability of Innovative Medical Products,” January 31, 2003,available online at http://www.fda.gov/bbs/topics/NEWS/2003.

20 The calculation is based on the assumption that 118,759businesses, which represent 50% of the total, saved betweenfour and six hours each by using e-government services in theState of Pennsylvania (one hour saved is equivalent to $15.60dollars, based on hourly average salary).

21 Time and direct cost savings for business registration wereestimated to be $1.04 million to $1.94 million, while savingsin reporting, remittance, and account management wereestimated to be anywhere from $13.48 million to $24.82million. See: “Business Case for Establishment of a BC SingleBusiness Number,” R.A. Malatest & Associates Ltd., February2002. The study indicates that these figures were derived fromdata collected from interviews with business owners andmanagers representing 25 companies.

21


22 James M. Van Wert, “E-Government and Performance: ACitizen-Centered Imperative,” The Public Manager, Summer2002, p. 18.

23 U.S. Small Business Administration presentation onBusinesslaw.gov/Business Compliance One Stop entitled“Breaking Down Barriers”: Cross-Agency/IntergovernmentalCollaboration, Washington, D.C., February 26, 2003.

24 Interview with Ron Miller, May 30, 2003.

25 U.S. Small Business Administration, “Business Compliance OneStop Projected Cost Savings,” provided by Ron Miller, May30, 2003.

26 Ibid.

22


About the AuthorWILLIAM D. EGGERSTel: 202 772 8394e-mail: [email protected]

William D. Eggers is the Global Director for DeloitteResearch-Public Sector. His research focuses on governmentreform, e-government, public-private partnerships, costreduction, and information technology. He is also a SeniorFellow at the New York-based Manhattan Institute for PolicyResearch and former appointee to the Office of Managementand Budget’s Performance Measurement Advisory Council(PMAC). He is the co-author of Revolution at the Roots:Making our Government Smaller, Better, and Closer to Home(The Free Press, 1995). His upcoming book on howtechnology is transforming government will be published in2004.

AcknowledgmentsDeloitte colleague Greg Pellegrino (Boston, MA), the GlobalIndustry Director for the Public Sector, played a major rolein developing many of the concepts and key insights in thestudy. Research Associate Jeannie Rhee (Washington, DC)also contributed significantly to this study, particularly inhelping to develop the case studies. Other helpful commentsand insights from Deloitte colleagues came from BobCampbell (Austin, TX), Dan Helfrich (Washington, DC),Michael Breggar (Philadelphia, PA), and Ann Baxter (SanFrancisco, CA).

About Deloitte ResearchDeloitte Research identifies, analyzes, and explains the majorissues driving today’s business dynamics and shapingtomorrow’s global marketplace. From provocative points ofview about strategy and organizational change to straight talkabout economics, regulation, and technology, DeloitteResearch delivers innovative, practical insights companies canuse to improve their bottom line performance. Operatingthrough a network of dedicated research professionals, seniorconsulting practitioners, and academic and technologypartners, Deloitte Research exhibits deep industry knowledge,functional expertise, and a commitment to thought leadership.In boardrooms and business journals, Deloitte Research isknown for bringing new perspective to real-world concerns.

For more information about Deloitte Research, please contactthe Global Director, Ann Baxter, at +415 268 1026 or viae-mail: [email protected].

Recent Deloitte ResearchThought LeadershipIT Value in the Public SectorCutting Fat, Adding Muscle: The Power of InformationTechnology in Addressing Budget Shortfalls

What are the best opportunities for using technology to reduceoperational costs? How do you squeeze savings from current ITbudgets? Where are the greatest savings likely to come from? Theseare just a few of the important questions that are addressed is inthis study, which is the first of a two-part series on IT value in thePublic Sector.

Putting IT on the Short List: Key Findings from the HarvardUniversity, John F. Kennedy School of Government's“Leadership Workshop for the New Governors,” February2003.

Put information technology on the short list of critical initiativesthat the country’s 24 new governors should be focusing on in theirfirst term? The very notion sounds counter-intuitive, but as thisDeloitte Research Brief illustrates, deep budget deficits, newhomeland security demands, and public expectations can't bereconciled without dramatic, yet feasible, reforms in howgovernment operates and delivers services. As a result, informationtechnology should be a key component of each governor’smanagement agenda.

22

©2003 Deloitte Consulting. All rights reserved.ISBN 1-892384-69-1


23


For Further Information,Please Contact

State Fiscal CrisesShow Me the Money: Budget-Cutting Strategies forCash-Strapped StatesAs hard as it is to fathom, state budget problems in fiscalyear 2003 will be even worse than they were in 2002. Thisstudy seeks to provide budget-cutting strategies that willaddress current budget shortfalls as well as much- neededmedium- and long-term reforms in state finances.

Homeland Security profileThe Homeland Security Market: The World’s MostChallenging Emerging Business EnvironmentGovernment and business leaders believe that securing thehomeland against potential terrorist threats could costbetween $93 billion and $138 billion in 2003. Based onoriginal survey data and interviews, this study profileshomeland security spending in the public and private sectorsand describes approaches for both to make criticalinvestments pay off.

Strategic Partnering in the Public SectorRelationship Portfolio for the Public Sector: A StrategicApproach to Partnering in Turbulent TimesToday, governments around the world are looking more tothe private sector for help with major technology andoperations projects. And while limited contracting,outsourcing, and public/private partnerships are the tacticsto get the jobs done, governments need to think strategicallyabout the partners they choose with special attention oncurrent and potential value to the organization. Using theRelationship Portfolio enterprise approach to partnering,governments can position themselves strongly for projectsuccesses today and hedge against severe risks in the future.

Getting Results in GovernmentThe keys to smart enterprise transformation for thePublic Sector: 2002-2003When money is tight and the future uncertain, ambitiousenterprise transformation projects in the public sector needto yield positive results. Here are the top eight transformationissues government executives need to confront, and the keysto tackling them for maximum success.

Business Model Innovation in e-GovernmentThe Transformation is Now: Michigan’s Innovative Formula fore-Government SuccessThis case study reveals how the State of Michigan followed a newmodel of e-Government evolution to produce accelerated benefits forcustomers and itself. The secret is an entirely new approach to enterprisetransformation that turns it from a destination into a driver.

Benefits of Customer Servicee-Government’s Next Generation: Transforming the GovernmentEnterprise Through Customer ServiceThrough analysis of the current state of e-Government initiativesthroughout the world, this report develops a strategic roadmap thatwill help governments make sure their investments continually pay offfor their constituents and themselves.

Please visit www.dc.com/research for the latest DeloitteResearch thought leadership or contact us at:[email protected].

23


GlobalGREG PELLEGRINOTel: +617 850 2770e-mail: [email protected]

FRANK WILSONTel: +44 161 832 3555e-mail: [email protected]

PAUL DOOPTel: +31 182 575200e-mail: [email protected]

EuropePETER ALLREDTel: +44 20 7779 5511e-mail: [email protected]

HANS BOSSERTTel: +31 33 4537200e-mail: [email protected]

ROBERT WILSONTel: +44 131 5357437e-mail: [email protected]

AmericasBOB CAMPBELLTel: +512 226 4210e-mail: [email protected]

DOUG TAYLORTel: +703 885 6100e-mail: [email protected]

DAVID JONESTel: +973 683 7125e-mail: [email protected]

STEW ROGTel: +973 683 6821e-mail: [email protected]

GLEN ORSAKTel: +1 613 786 7537e-mail: [email protected]

Asia

MATTHEW HITCH

Tel: +61 03 8615 7201e-mail: [email protected]

24


www.dc.com/research

Citizen Advantage - World Bank

Documents

Transcript of Citizen Advantage - World Bank