Jim HannaLead Operations Officer & eBusiness AdvisorLatin America & Caribbean Regionjhanna@worldbank.orgwww.worldbank.org/ebusinesslac

The World Bank GroupWorking for a World Free of Poverty

Ana Carrasco MartineBusiness for SME CompetitivenessLatin America & Caribbean Regionacarrasco@worldbank.org

2

The Business Case for G2BThe Business Case for G2B

• Change oriented – business processes are redesigned, people retrained, and redeployed

– Simplification– Re-engineering– Standardization

• Connected to the back end – integration with back end legacy systems

• Biz Community building - message boards, calendars, chat groups

• Content rich - relevant content for different user groups not by agency

• Customer focused - Intentions based design

• Greater effectiveness and transparency

• Promote business creation

• Reduction of number of forms and easier transactions

• Simplification of reporting requirements

• Eliminates distance and other divides for biz creation

• Eliminates cost and time for biz to do business, comply with regulations and register a business

• Help business understand what regulations apply to them and how to comply with them

It is more than computers or automating old practices….

eGovernment Maturity ModeleGovernment Maturity Model

Web Web PresencePresence

Online Online InteractionInteraction

OnlineOnlineTransactionTransaction

GovernmentGovernmentTransformationTransformation

PostInformation

on the Internet

Basic search capabilities,

download, linkages with other sites, e-

mail addresses

Cross agency

services, Self services applications

Long-term eGovernment

initiativesOne-stop-shop

for G2B activities

Provides a business case to initiate the change

Measure economic impact of investment for government and business

Reduces unnecessary bureaucracy

Coordinates inter agency information needs

Organize the site by needs (by agency instead)

Identifies needs of customer groups

Potential for restructuring GovernmentPotential for restructuring Government

Potential Reduction of Time and Money for Potential Reduction of Time and Money for BusinessesBusinesses

OPPORTUNITIES

(1) Opportunity costs (2) Time to start doing business thanks to reduction in the number of days it takes to receive payment and license (3) Postage (4) Printing (5) Gas / travel (6) Professional fees (lawyers, accountants,…) (7) Personnel (8) Regulatory saving via transition to compliance from enforcement

WHAT G2B DOES

3

G2B Elements and MetricsG2B Elements and Metrics

1. Create a single point for businesses to work with the government

2. Increase the number of G2B eServices and integrated eServices.

3. Promote greater efficiency and convenience for businesses to transaction with government

4. Increase the percentage of businesses that transact electronically with government

5. Develop means for cross-agency and cross-government cooperation, data sharing and delivery

6. Develop cross-agency governance and accountability mechanisms

7. Address the legislative issues arising from sharing delivery models across agencies

• RegisteringForming and operating a business with multiple agencies across multiple levels of government.

• LicensingObtaining a license from government for many occupations (architects, lawyers, taxi drivers, real estate brokers…)

• PermittingObtain permits for a wide range of biz activities from building or restoring a biz facility to selling alcohol beverages

• ReportingTax returns, report on environmental impacts and compliance with labor rules

• PayingLargest number of transactions between the government and businesses

Principal G2B interactions with SMEsPrincipal G2B interactions with SMEs

Business desires in Australia75% more information; 67% more downloadable

forms; 43% more integration between agencies; and 21% access to more complex transactions

Source: Australian Government, Information Management Office, eGovernment Benefits Study 2003, Citizen Advantage and The Transformation is Now: Michigan’s innovative formula for eGovernment success, Deloitte Research Public Sector

• General use: Number of visits a day or number of pages viewed

• Increased customer services

– 24x7 access

– No need to call the government due to added instructions

– Ability to receive instant confirmation that a form has been received and accepted without need for clarification or correction

– Online forms include detailed instructions to assist customers in completing information correctly

• Cycle time reduction

• Cost avoidance

• Human resources redeployment to value-producing positions

G2B Strategic ObjectivesG2B Strategic Objectives

Metrics of eGovernment PerformanceMetrics of eGovernment Performance

4

Organizational StructureOrganizational Structure

e-Michigan Officee-Michigan Office(Strategy, people, thinking, and design)

(30 permanent staff & 250 state employees)

e-Michigan Officee-Michigan Office(Strategy, people, thinking, and design)

(30 permanent staff & 250 state employees)

•Manager of Enterprise Customer Relationships•Implementer of enabling common processes•Establisher of Global Internet Standards•Reorganizer of Existing Content and Applications•Developer/Incubator of Web-based applications or initiatives

•Manager of Enterprise Customer Relationships•Implementer of enabling common processes•Establisher of Global Internet Standards•Reorganizer of Existing Content and Applications•Developer/Incubator of Web-based applications or initiatives

• Interagency governance structure

— eMichigan Office

• Single-ministerial led structure

— Ministry of Economy coordination + funding ( 50 per cent of each agency’s initiative) in Chile

— Department of Industry, Tourism, and Resources and Department for Small Business in Australia

— Ministry of Consumer and Business Services in Ontario, Canada

— Secretaria de Economia, Sub-secretaria de Mejora Regulatoria, Mexico

• Cross-agency collaboration (public and private)

— Private: Public notary, official publications, etc..— Public: Commerce, Health, Tax

Revenues

5

Implementation phasesImplementation phases

• Information Sharing• Develop web presence• Develop technology capability

• Interaction• Re-orientate business/technology thinking skills• Build integrated approach• Download forms

• Transaction processing• Re-organise people/structures• Reengineer processes• Remodel technology infrastructure

• Government Transformation• Customer-focused organization• Content-centric products/services• The new marketing’ seamless, flexible equitable

eGovernment Maturity ModeleGovernment Maturity Model

Web Web presencepresence

InteractionInteraction

TransactionTransaction

GovernmentGovernmentTransformationTransformation

Stage 1 Stage 2 Stage 3 Stage 4

+ e-commerce + e-business

G2B

bus

ines

s va

lue

Organizational capabilities gap

+ commerce

INTEGRACIONINTEGRACIONPeoplePeople

ProcessProcess

TechnologyTechnology

StrategyStrategy

6

Applications by Performance and Integration levelApplications by Performance and Integration level

• Auctions and Government procurement

• Job listings

• Online Business Information Center

• Convenient access to G2B info and services supporting services

• Auctions and Government procurement

• Job listings

• Online Business Information Center

• Convenient access to G2B info and services supporting services

• Deeper connection between business users and government

• Closer integration between desktop applications

• Government agency collaboration for basic self-service applications

• Online permitting

• eFiling

• ePayments

• Deeper connection between business users and government

• Closer integration between desktop applications

• Government agency collaboration for basic self-service applications

• Online permitting

• eFiling

• ePayments

• Government’s progress re-engineering

• Simplification of transactions and requirements

• Human resources redeployment

• One-stop-shop for Online Business Registration for compliance with all government agencies involved

• Real-time connections for immediate results

• Back-end management systems

• Government’s progress re-engineering

• Simplification of transactions and requirements

• Human resources redeployment

• One-stop-shop for Online Business Registration for compliance with all government agencies involved

• Real-time connections for immediate results

• Back-end management systems

1st Tier G2B applications1st Tier G2B applicationsPublishPublish

2nd Tier G2B applications2nd Tier G2B applicationsInteractInteract

3rd Tier G2B applications3rd Tier G2B applicationsTransaction and Transaction and TransformationTransformation

7

G2B Early AchievementsG2B Early Achievements

U.S. Pennsylvania Open for BusinessU.S. Pennsylvania Open for Business

• PAO4Biz One-Stop-Shop

• If 50% of all new biz in the state used PAO4Biz and each saved four to six hour per company per year, it would translate into a one-year opportunity cost saving in the range of US$7.4 million to US$11.1 million for Pennsylvania businesses (1)

• Online Business Registration Interview (OBRI)

• Step-by-step wizard for biz registration

• Departments of Labor & Industry

• Department of Revenue

• Department of State

• Online PA-100

• Online fill-in form

• Departments of Labor & Industry

• DOES NOT register the enterprise with the Department of State. 

(1) The calculation is based on the assumption that 118,759 businesses, which represent 50% of the total, saved between four and six hours each by using e-Government services in the State of Pennsylvania (one hour saved is equivalent to $15.60 dollars, based on hourly average salary. Citizen advantage: Enhancing Economic Competitiveness through eGovernment, Deloitte Research Public Sector Study.

• 1997 – More Time for Business initiative aimed at reducing the paperwork and red tape imposed on small businesses

• One-stop-shop registration process- Australian Business Register (Business Entry Point BEP Web site)

• Key benefits (1) Improved service delivery (2) Reduced consumer costs (3) Social benefits

• 45% eGov services users saved money. 10% saved more than $25 per transaction

• User benefits – 80% improvement finding information; 75% improvements in service quality; 75% equipped to make better decisions; 52% improved in business - $1.1 billion benefits users in 2002

• Agency Benefits- 67% improved biz processes; 64% reducing costs of servicing; 17% cross agency collaboration

• ROI – Across 24 agencies aggregate benefit/cost ration was 92.5%

Organizational Structure

• Funded by the Australian Government

• Coordinated by the Department of Industry, tourism and Resources and Ministry for Small Business

• Supported by State and territory government

Australia Business Entry Point (BEP)Australia Business Entry Point (BEP)

8

• US first experience to establish a comprehensive program to measuring not only by its direct return to Government but also to businesses

• In operation for the FY01, FY02, and FY03 budget years

• Developing a tool for measuring

• Interviews with Executives from the State Information Technology Consortium (SITC)

• Interviews with IT executives from five large Iowa biz

• Managed by Enterprise Quality Assurance Office within the Information Technology Department

• Creates and maintains an enterprise database and status reporting system which focuses on quantifying results

• ROI for non-routine IT expenditures over $100 K

• Evaluation criteria includes customer service improvements, impact on Iowa’s citizens, process re-engineering, agency participating and financial analysis.

Business Information Center

Methodology for measuring economic and social impact

Available Monday to Friday, 7 a.m. to 8:45 p.m. and unmonitored on Saturday, 12 noon to 6 p.m. Service not available on Sunday

• Savings estimator tool on the city of Tampa tries to answer that question

• Asks citizens for the type of business transaction they want to perform

• Travel distance to the appropriate government office• Number of miles per gallon their car gets• Cost of a gallon of gas• Parking meter fees• Hourly value of their time

• Estimates savings a business can expect by conducting business online rather than in person.

• 200 – 250 hits per month

G2B Early AchievementsG2B Early Achievements

Iowa - Return on Investment ProgramIowa - Return on Investment Program EDUCATING BUSINESSES ABOUT THE BENEFITS OF G2B:EDUCATING BUSINESSES ABOUT THE BENEFITS OF G2B:Why use an electronic service instead of driving to city hall?

9

United States – e-Michigan (Digital State Award 2004) United States – e-Michigan (Digital State Award 2004)

eGovernment Platform PillarseGovernment Platform Pillars

Enterprise-wide eGovernment coordination

Enterprise-wide eGovernment coordination

One-CustomerView

One-CustomerView

StreamlinedProcesses

StreamlinedProcesses

Public-PrivatePartnerships

Public-PrivatePartnerships

ConstraintsConstraints

History of decentralized planning and implementation

of eGovernment initiatives

History of decentralized planning and implementation

of eGovernment initiatives

Few State project managers experienced inleadership of enterprise –wide projects

Few State project managers experienced inleadership of enterprise –wide projects

Little knowledge of eGovernment best practices and strategic planning approaches

Little knowledge of eGovernment best practices and strategic planning approaches

Fragmented communications processes betweenIT and business staff within and between

agencies were the norm

Fragmented communications processes betweenIT and business staff within and between

agencies were the norm

ResultsResults

• Increased general usage – From 4,000 to 10,000 visits of portal

• Increased Customer Services – 24 / 7 availability, online forms, …

• Cycle time reduction - Staff spends less time in manual tasks especially updating incomplete forms which are now automatically rejected

• Cost avoidance – US$30,000 saved in commissions paid to point-to-sale agents

• Human resources redeployment

e-Michigan Officee-Michigan Office(Strategy, people, thinking, and design)

e-Michigan Officee-Michigan Office(Strategy, people, thinking, and design)

10

Mexico – Online Biz Registration in one day (UNO )Mexico – Online Biz Registration in one day (UNO )

BEFORE…

9 transactions, 9 government agencies in 9 different locations

10 different formats

71 days

AFTER…

3-5 transactions, 3-5 agencies in 1 single location, and 1 format

Online biz registration in 1 day

One-stop-shop for biz registration

IMPACT

4,250 businesses/year

1st place – National Regulatory framework improvement

1st place – Preferred by Businesses to do transactions with government for simplicity and speed

1st place in business opinion

4rd place in less corrupted government in Mexico

2,730 municipalities, only in 7 you can start a biz with 2 transactions and in less than 48 hours

• Available government resources

• Biz transactions selection• No constructing involved• No international trade involved• No notary services involved• No foreign investment involved

• Multi-channel platform• ePayments through ATM network• eBusiness one-stop-shop

• Inter-agency (municipal, estate, federal)

• Re-engineering and process simplification

• Available government resources

• Biz transactions selection• No constructing involved• No international trade involved• No notary services involved• No foreign investment involved

• Multi-channel platform• ePayments through ATM network• eBusiness one-stop-shop

• Inter-agency (municipal, estate, federal)

• Re-engineering and process simplification

Implementation StrategyImplementation Strategy

11

Chile – Ventanilla Empresa Chile – Ventanilla Empresa

G2B Implementation Process & StrategyG2B Implementation Process & Strategy

• 1st step – — National Program for IT Development 2001-2005 of Ministry of Economy — Simplified online government-to-business transactions

• 2nd step - Identification of transactions — Selected by 1,200 businesses in focus groups— Most repetitive transactions and complexity— 100 transactions prioritized involving 32 agencies

• 3rd step - Consultation with government agencies— Government agencies responsible for transactions identified by businesses — Feasibility study for simplification and online services at two levels: (1) technology infrastructure available at each agency level, and (2)

4th step - Consultation with private sector— Commerce and Production Confederation — Micro, Small and Medium Business Confederation (Conupia) — IT experts for SME

• e-Procurement (www.comprachile.cl) • Ministry of Economy • Information & bidding on public services• Contracting for more than 100 public services

• Online Business Center (www.redsercotec.com) • SERCOTEC• Supports small business management• Facilitates new business opportunities• Encourages business networks• Access to training and consulting services

• Online Export Center (www.prochile.cl) • “VideoNegocios” and “Inter-PYME”• Export market information & assessments • Export management support and training

Cost-shared among 17 government participating institutions (50% of each project’s cost funded by Economy)Implementaiton costs already paid for public budget savings (business savings to be calculated)

Simplified and Internet-enabled: New biz registration, export procedures, and labor regulations

Government’s Online Business Government’s Online Business Development ServicesDevelopment Services

Source: Government of Chile (SERCOTEC, Ministry of Economy, Prochile), Chamber of Commerce of Chile

12

Canada – Ontario Business Connects (OBC)Canada – Ontario Business Connects (OBC)

Understand the Government Business

Asses operational, strategic, technology and organizational structure to determine if they were consistent with their Electronic Service delivery services

Re-engineering process for simplification and standardization

• Ministry of Consumer and Business Services

• Business Name Registration/Renewal

• Retail Sales Tax Vendor Permit (Provincial RST)

• Employer Health Tax (EHT)

• Workplace Safety and Insurance Board (WSIB)

• Conduct a business name search

• Change/Change Business Name Registration Information

• Cancel/Close Business Name Registration

OBC Online Services PortalBusiness Registration/RenewalChange of Biz information

Private Sector ServicesLicensed Wholesalers - OBC services are available through licensed private-sector service providers

Federal and Provincial ServicesComplete online applications for up to 8 gov programs in one location using Business Registration online (BRO). Available at Canada customs & Revenue Agency web site (partner with OBC)

140 OBC Service Locations (Ontario)Internet based self-help workstations

The results…

• One-stop-shop for biz registration

• Business License receive by mail within 2 weeks

• The fee for a mailed in form for business name registration or renewal is $80 compare to $60 for online registration

• Canadian Single Business Number Registration ( (Estimated $14.52 to $26.76 million annually)

StrategyStrategy

13

ResourcesResources

• Maximizing eGovernment Value for High Performance, Accenture, April 2004

• Citizen Advantage: Enhancing economic competitiveness through e-Government, Deloitte Research, 2003

• The Transformation is now: Michigan’s Innovative formula for e-Government Success, Deloitte Research, 2002

• E-Government Next Generation, Deloitte Research, 2003

• Government of Aguascalientes, Secretaria de Desarrollo Economico (SEDEC), Sub-secretaria de Mejora Regulatoria (www.aguascalientes.gob.mx/sedec and www.ags.gob.mx ), 2004

• Canadian Business Center, Ontario Business Connects (www.cbs.gov.on.ca/obc), 2004

• Pennsylvania Open for Business, Online Business Registration, (www.paopen4business.state.pa.us)

• Australia Business Entry Point (http://www.business.gov.au/Business+Entry+Point)

• Iowa Return on Investment (http://www2.info.state.ia.us/roi/index.html)

• Ontario Business Connects (http://www.cbs.gov.on.ca/obc/english/4TJTBS.htm)