What is eGovernment

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					What is eGovernment?
         Eris@ workshop on e-Government Procurement
based on cased study - Malta VAT and Inland Revenue departments
                         Jonathan Sage
                   Brussels 11 December 2001
    Agenda for today:
    • Overview of eGovernment
    • Lessons from others
    • Understanding the framework
    •“Real”eGov applications
    • Revenue Services Online case study
    • Example Tax Authority Spain
    • VAT and IR online initiatives

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Some FACTS about eGov implementation

Agencies have interpreted “be online” to mean
“get a website” - this is not the right approach
39% of services that could have interact or transaction
capabilities, are simply at the publish level

Very few agencies have a true internet strategy

Citizens and businesses have derived little benefit from
this plethora of government websites!

    (based on recent research by Accenture)
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    eGovernment - a starting                                        What is

eGovernment is an ongoing
process of transformation of the
Government towards the provision
of government services
(information, transactions)
through electronic means,                                    Demand
accessing government information
and the carrying out government
transactions on an “anywhere,
anytime” basis.
                                                Internal users
Users are: - citizens,
           - businesses
           - government (as internal
users, consumers and suppliers)
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         Is there a standard approach                                                 What is
         to eGovernment?

           It is still early in eGovernment development and there
           are many misconceptions, e.g. that:
                                                 eGovernment is about transforming
                                                 processes and improving the way in
•   eGovernment is mainly about technology which governments deal with external
                                                 parties using the Internet
                                                    Most are in the very early stages of
                                                    the transformation process and
•   Many governments have deployed                  organisational change to optimise
                                                    benefits from eGovernment.
    eGovernment                                        Initially eGovernment involves the
                                                       establishment of a new channel in
                                                       reaching both suppliers and
•   eGovernment will result in substantial cost        customers. While this channel will be
                                                       comparatively cheaper than other
    savings immediately                                traditional fulfilment channels, savings
                                                       will will be realised once processes
                                            eGovernmentonly require major
                                                       changes, and channel shift has
                                            transformation of culture, policies work been
•   eGovernment is easy to implement                   properly managed
                                            processes and organisational design to be
                                            effective. The implementation of
                                            eGovernment will challenge many of the
    5                                       existing procedures and systems.PricewaterhouseCoopers
    The case for change                      What are the benefits?

                          •Citizens and businesses prefer to
                          interact with government via the
                          web in the same way as they
                          interact with other service providers
                          •The Internet can radically improve
                          customer service levels, from the
                          citizen and business perspective
                          • an eGovernment initiative can
                          “lead by example” and stimulate
                          change towards new business
                          models in the private sector
                          • the Internet is the most cost
                          effective channel and enables large
                          scale gain in efficiency
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       Need for champion                                           Lessons from others
                                                                     on e-Government

       at highest level
       eGovernment will only succeed if it is
       championed at the highest level

    Examples of change driven from above:

    • The UK has set up Information Age Government (IAG) with challenging
      Electronic Service Delivery (ESD) targets and an E-Envoy
    • In Australia, the Prime Minister committed the federal government in 1997
      to providing all appropriate government services on-line via the Internet by
    • US has recently announced the development of two major initiatives in the
      US, First.gov (a central point for all government online resources) and
      Pay.gov (a one stop shop for all government payments).

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    eGovernment is about                                         Lessons from others
                                                                   on e-Government

    fundamental change

• eGovernment involves substantial changes to how governments operate
    – it requires more integration across government
    – it removes bureaucracy barriers - citizens and businesses gain greater

• effective eGovernment is a “whole of government” initiative
    – Web enabling means customer-centric range of services for customer
      (services bundling) for a holistic approach rather than separate
      ministries dealing individually
    – But unified customer interface means effective integration at back end
      and common content and knowledge “standards”
    – These steps mean that a government Information Portal is possible
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    Combination of old and new                               Lessons from others
                                                               on e-Government


• Governments need a “clicks and mortar” model
   – Intelligent pairing of online and offline assets - the dot.com crash
     tought us that “e-everything” and only e is not the best solution
   – Different channels for different purposes The Internet will be both a
     delivery channel itself, and the communications backbone for all
     channels eg telephone network
   – Telephone is currently the most frequently used electronic channel, but
     the Internet is rapidly increasing in popularity and is helping many
     organisations to achieve their stated aim of delivering services on a
     24x7 basis and is favoured by particular types of users (disabled,
     people in remote communities etc). Channels need to be intelligently

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     How to fund                                                   Lessons from others
                                                                     on e-Government

 • The need for investment to achieve proper eGovernment is an issue:
    – Change management and controlled migration to new model is as
      important an investment as the technology
    – Upgrading infrastructure, including security and encryption
    – Integration of legacy systems and interoperability
 • There is a need for substantial upfront funding - yet it is difficult to secure
   upfront investment in return for future benefits within government
 • Public private partnerships are a good source for investment - but you
   need business models and economies of scale (eg use of telecoms,
   advertising, charge for use). These revenues are not easy to generate in
   smaller markets
 • Cost savings generally not realised quickly - parallel channels need to
   operate in transition phase. In some cases unacceptability of argument
   that workplaces will be saved

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     Our framework for looking                                                                                                Understanding
                                                                                                                              the framework

     at eGovernment
                                                             Enabling Environment
                                                             - Leadership and coordination
      Enabling Environment

                                                             - Policy
                                                             - Culture
                                                             - Infrastructure and standards

                                                  Supplier            The ‘business’ of           Customer
                                                  Network               Government                Network
      eGovernment Applications

                                 Government to Supplier        Government to Government       Government to Customer
                                 eProcurement                  Knowledge management           (citizens and business)
                                 Supply chain management       eHRM                           Electronic Service Delivery
                                 eTendering                    Internal eProcurement          Online portal
                                                               workflow management            Integrated call centre

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                                               Four maturity levels for eGovernment                                                                                 Understanding
                                                                                                                                                                    the framework

                                               Assessment framework for flagship applications

                                                                          Redefining Government Role and Relationships                          Redefining Govt
     Degree of business model transformation

                                                                          Traditional division between government and private
                                                                          sector roles and responsibilities in delivery blur.                      Role and

                                                  Cross-Government Transformation
                                                  Fundamental transformation within Government.
                                                  - enabling joined up government                             Cross-Government
                                                  - divesting of non-core/low value activities                 Transformation
                                                  - consolidation of common functions

                                                                                Integrating End to                          Integrating End to End Processes
                                                                                                                            Re-engineering of common processes and close
                                                                                       End                                  integration with processes/systems of external
                                                                                                                            customers and suppliers.

                                                                                              Internet as an Additional Channel
                                                   Internet as an                             Online information and basic transactions.
                                                                                              (with minimal change in Government
                                                 Additional Channel                           business processes)

                                                                Enabler                                                           Transformer
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Public adminsistrations are exploiting new                                        Specific examples
                                                                                   of eGoverment
possibilities of interacting with customers across the                              applications
whole value chain - suppliers, internal customers and
end users of government services

                                                                                         - CITIZENS
SUPPLIERS                                                                                - BUSINESSES
                                             ELECTRONIC SERVICE       Direct               WORKS
               BACK OFFICE                       DELIVERY            Contacts

                                                     Services in      Public
            Need for                                contact with     partners
                         Internal Services
            supplies                              external parties


                               INFRASTRUCTURE ENABLING

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 Improving customer service in supplying official                                           Specific examples
 documents electronically - passport, driving licence,                                       of eGoverment
 other certificates

SUPPLIERS                                                                                       CITIZENS
                         BACK OFFICE                    ELECTRONIC SERVICE       Direct
                           SYSTEM                           DELIVERY            Contacts

                                                                Services in       Public
                      Need for      Internal Services          contact with      partners
                      supplies                               external parties

                                          INFRASTRUCTURE ENABLING

       A web-based system groups information and processes for the delivery of services (such as
       official documentation in passports, driving licences,and other certificates. This bundling of
       information and services at one point means time and costs in dealing with red tape are reduced,
  14   there are simpler processes and thus a gain in efficiency for the customer and provider
E-Services for enterprise mean easier setting up of                                      Specific examples
                                                                                          of eGoverment
a new business and faster growth                                                           applications


                                                  ELECTRONIC SERVICE        Direct
                      BACK OFFICE
                                                      DELIVERY             Contacts

                                                         Services in         Public
                  Demand             Internal           contact with        partners
                  for supplies       Services         external parties

                                      INFRASTRUCTURE ENABLING
                                            E-COMMERCE                                         E-services

      A web-based system groups information and processes for assistance and incentives and
      administrative steps. This bundling of information and services at one point means time and
      costs in dealing with red tape are reduced, there are simpler processes and thus a gain in
      productivity, both for manufactures and service providers
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                                                                                       Specific examples
                                                                                        of eGoverment
eHRM is a way of improving internal processes in                                         applications
respect of Human Resources

SUPPLIERS                                                                                      BUSINESSES
                                                                                              PUBLIC WORKS
                                                  ELECTRONIC SERVICE      Direct
                       BACK OFFICE
                                                      DELIVERY           Contacts

                                                         Services in       Public
                  Demand             Internal           contact with      partners
                  for supplies       Services         external parties


.A single Internet enabled eHRM platform implemented across government that supports and
automates workflow, eliminates the need for paper (eg electronic payslips), and provides
 self-service features such as maintaining own personal details, selecting benefits.
This should be a component of the government wide ERP system

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                                                                                      Specific examples
e-Facility Management enables optimisation of the                                      of eGoverment
management of buildings and facilities put at the                                       applications

disposal of public services
SUPPLIERS                                                                                     BUSINESSES
                                                                                             PUBLIC WORKS
                                               ELECTRONIC SERVICE        Direct
                   BACK OFFICE
                                                   DELIVERY             Contacts

                                                      Services in         Public
                Demand            Internal           contact with        partners
                for supplies      Services         external parties

                                   INFRASTRUCTURE ENABLING

     A database containing all the requirements of different communal services with integrated
     management, taking account of how services are organised, what the best usage of locations and
     space is- reducing maintenance and utilisation

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                                                                                   Specific examples
             ..                                                                     of eGoverment
eProcurement is one of the most effective methods                                    applications
ways to optimise the process of purchasing

SUPPLIERS                                                                                   BUSINESSES
                                                                                           PUBLIC WORKS
                                                ELECTRONIC SERVICE      Direct
                     BACK OFFICE
                                                    DELIVERY           Contacts

                                                       Services in      Public
                  Demand           Internal           contact with     partners
                  for supplies     Services         external parties

                                       INFRASTRUCTURE ENABLING

     Single Internet enabled procurement system for all government standard, large volume
       purchases that support integrated process from sourcing, requisition to fulfilment.
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     Target customers that e Government can serve:                                   Scope and dimensions
                                                                                        of eGoverment
     where do you set priorities?                                                        applications

                      Citizens :all people living or working in the country or an administrative

                                                   Businesses : one the one hand, those already
                                                   situated within the country or administrative district,
                                                   and on the other those who conduct (or plan to
                                                   conduct) commercial activities with the
                                                   administration or within the district.

Government offices and public administrations :
     all government and public offices, looking at
   internal processes, interacting with citizens and
   businesses and interaction between government
                offices and public administrations.

              Tourists : all people who enter the country or an administrative
               district for activities other than residential (excluding cultural
19                                                                     activities)   PricewaterhouseCoopers
                                                                            Scope and dimensions
     Different geographical zones mean that                                    of eGoverment
     different stakeholders can be addressed with the
     global reach of the Internet

             Valetta   Malta

                                                                   Global reach

       Citizens          Citizens
      Entreprises        Enterprises      Enterprises
                         Public bodies   Public bodies       Enterprises          Enterprises
                         Tourists          Tourists           Tourists             Tourists

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                                                                                     Concluding remarks:
Moving from the traditional to an e-model means a                                  the new business model
radical change in the business model..

               The path of transformation towards the new economy is through focus on
                  image, reduction in physical assets and an increase in interactivity
                                                                          Source: MetaCapitalism, Means and Schneider
                      “Push”                        “Pull”
                       Focus           Brand        Focus

                          Production                   Customer
                            Focus        Human          Focus

                               High          Working          Low

                                      High       Physical         Low
                                                 Capital                                     (Outsourcing,
                                                                                           alliance, cluster...)

     Traditional model                                                  New Economy model
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                                                            Lessons from others
      Research shows that Revenue                           on Revenue Services

      agencies are leading the way

     • Revenue            agencies have exploited the advantage of a
     clear business case and value proposition to be early
     movers online

     • Faster revenue collection, lower costs and improved
     compliance have driven their investment

     • Hong Kong, Ireland, Portugal and Spain have moved
     revenue processes online
     (carried out byAccenture)

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                                          Lessons from others
     Revenue agencies are leading         on Revenue Services

     the way

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                               Research conducted by Accenture
                                                              Lessons from others

     Key learnings from Spanish                               on Revenue Services
                                                                 example Spain

     AEAT (Tax Agency)

 Take care! Proximity to taxpayer by the use of electronic means
  must be introduced carefully and in stages.
 The citizen prefers to limit his/her relations with the TA to a minimum.
 From the taxpayer concept to the citizen concept.
 From serial production to a flexible production.
 Articulation of a good system survey on the different services
(not only to look for the opinions but to also know citizen expectations).

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                                                                Lessons from others

       How we started in Spain                                  on Revenue Services
                                                                   example Spain

      The starting point was a good fiscal Census (national database).
      Started with information services (first stage) and then
       implemented online presentation of tax returns and electronic
      Quick transformation of the business process from the use of new
       technologies (e.g. importantant alterations in the human
       resources structure).
      We freed up human resources to other value tasks.
      We developed and disseminated computer programs to aid in the
       preparation of the tax returns
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                                                        Lessons from others

     What is in place now                               on Revenue Services
                                                           example Spain

  The P.A.D.R.E. (Income Tax Statement Aid Program) used by
   more of 95% of taxpayers.
  It is available on a 24*7 service basis.
  Citizens can access the AEAT information system to query their
   data (cheaper to facilitate this access to the information than
   regularize afterwards the omissions).
  It is highly valued by the users (more than 50% of returns are
   received in afternoon hours or even at night; 10% in the week-
  Streamlining the tax process (information can be directly
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                                                         Lessons from others

     The near future..                                   on Revenue Services
                                                            example Spain

      From a data storing system to a system that processes
       multimedia information and that allows to carry out
       Knowledge Management (through the Intranet).
      The current information system is the result of 15 years of
       work. All administrative procedures are computerized.
      Not only data but documents elaborated by the taxpayers
       with a text processor.
      The information system will not only contain relevant
       document data, but the document itself.
      The system can store and manage graphic files, sound files,
       fixed and moving images.
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                                       Lessons from others

     Process for obtaining a tax certificate
                                       on Revenue Services
                                          example Spain

     from Spanish AEAT (Tax Agency)

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                                                                Lessons from others

      Issues to solve in using the                              on Revenue Services
                                                                   example Spain

      Internet for tax authority transactions

      To allow the citizens to relate with the TA (particularly through the
       Internet) is necessary to find answers to three questions:
      How to identify the party that performs the transaction, to avoid
       repudiation or supplanting of personality.
      How to guarantee the integrity of transactions.
      How to solve problems related to security of the online relations.

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      Lessons from others
      on Revenue Services
         example Spain

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                                                              Lessons from others

      Final Considerations                                    on Revenue Services
                                                                 example Spain

     The AEAT offers through the Internet the totality of the
       taxpayers needs to meet their tax obligations.
      May know taxation standards
      Criteria applied by the TA.
      Information available to the AEAT on the taxpayer.
      Aid programs to prepare the return, print or send it through
       the Internet.
      The payment of the tax liability or the tax refund.
      Potential problems with the tax return
      Provision of Tax Certificates.
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      Web sites referenced in the presentation

Irish Revenue Online Services (ROS)   http://www.ros.ie/
Singapore ecitizen portal             http://www.ecitizen.gov.sg/
Singapore gov shopping mall           https://www.psi.gov.sg
Indianapolis city site                http://www.indygov.com/
Indianapolis internet tax filing      http://www.in.gov/dor/tax/faq.html
Indianopolis eGoverment site          http://www.indygov.com/egov.htm
Spanish Tax Authority                 http:/www.aeat.es

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