EG Does It

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EG Does It

• Dot Coming the Public Sector
• PK Agarwal
• CIO, Franchise Tax Board
• March 20, 2000

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Objective

• Offer you a perspective on Electronic Government
• Short term (Tactical)
• Long term (Strategic)

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Short Term (Tactical)

• Value creation
• Portals
• Technology
• Change management
• Case studies

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1. Value Creation
Value Preservation
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1. Value Creation
Value Creation

• Customer Measured
• Traditional ROI ??

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1. Value Creation
Value Creation Tools
Electronic Commerce

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The New Economy

• Microsoft
• Market Value
• 548B
• Annual Sales
• 22.0B

• GM, Ford, DM Chrysler
• American, United, Delta
• Sears, JC Penney
• Wal-Mart
• McDonalds
• ANNUAL SALES
• 900B

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Value Proposition Changes
Cost
Utility
Convenience
Experience
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2. Think Portals

• Integration to create value
• Think outside of your boundaries
• State level integration inevitable
• Channels
• X-govt integration

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Portal Evolution
Publish
Inquire
Transact
Transform
Integrate
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My California
My California
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Real People
Big Business
Tourists
Small Business
Vendor Partner
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My Money
My Health
My Education
My vacation
My Neighborhood
My job
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My Car

• My registration
• My license (violations)
• My insurance company
• My traffic (commute)
• My recall notices
• My car and clean air
• My gas prices (in my area)

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Click here if you love me,_
or if you don't
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3. Technology

• Middle ware driven architecture
• Data integration
• Legacy to web transition
• Legacy systems on-line
• Skills
• Development
• Architecture
• Security
• Governance
• Marketing

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4. Change Management

• Need for vision and leadership
• Technology or change management
• The centralization - decentralization debate

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5. Case Studies

• Maryland professional licensing
• Massachusetts DMV

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MD DLLR Homepage
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Boards Commissions
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Usage Exceeds Projections!
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Massachusetts RMV Site

• ROI..negative
• Getting people out of branches.some
• Replaced employees..none
• Aug 1996 - July 1997 30,704
• Aug 1997 - July 1998 32,110
• Aug 1998 - July 1999 27,893

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Long Term (Strategic)

• Digital State Framework
• Digital divide
• Tax facts
• Strategies for digital age
• Report card

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1. Strategic Framework

• IT as an economic force
• 8 of GDP
• 35 of real GDP growth
• 60 of capital investment
• Digital State
• Parallel of Industrial revolution
• Competition between states/countries

The economist October 30, 1999
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The EG framework
VISION
Infrastructure
Policy (Econ. Dev)
Education (Smart people)
Govt. Services Role
INVESTMENT
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Four New Economy Issues

• How will California
• Retain its share of the global economy?
• Develop the 21st century e-infrastructures?
• Implement e-services and e-governance?
• Develop its work force for the knowledge economy?

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2. Digital Divide
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2. Digital Divide
NTIA 1997 data
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3. Tax facts

• The revenue crisis ?
• Internet retail sales in 1998 20b
• Internet retail sales as of consumer
  spending 3/10
• Sales tax lost in 1998 170m
• Sales tax lost as collected 1/10
• B2B transactions not subject to tax 80
• B2C transactions not subject to tax 63
• E- transactions that substitute remote
  transactions 60

Source Ernst and Young, June 1999
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3. Tax Facts

• Internet Consumer Sales 1998 3.5b
• Internet Consumer Sales 1999 10b
• Catalog Sales 1999 72b

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4. Five Key Strategies

• Workforce skills
• Infrastructure for innovation
• Innovation and customer oriented government
• Transformation to digital economy
• Civic collaboration

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5. Report Card

• Massachusetts
• California
• Colorado
• Washington
• Connecticut
• Utah
• New Hampshire
• New Jersey
• Delaware

• Arizona
• Maryland
• Virginia
• Alaska
• Minnesota
• Oregon
• New York
• Texas
• Vermont

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NEC3 Blueprint

• Enterprise Admin.
• Leadership Governance
• Privacy
• Security
• Electronic Payments
• Technologies
• Portals
• Applications
• Infrastructure
• Standards

• Management
• Funding
• Marketing
• Personnel Training
• Policy
• Electronic Access
• Economic Development

www.ec3.org
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Wrap up

• Tactical
• Value creation
• Portals
• Leadership
• Strategic
• Digital age and economic success
• Charting a very unknown future
• Exciting