Paper Title: e-government meets e-business c-government

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1 Paper itle: e-government meets e-business c-government Name : Öner Güngöz, hristian eel nstitute : nstitute for nformation ystems Director : Prof. Dr. Dr. h.c. mult. A.-W. cheer Postal Address : P.. Box , D aarbruecken ffice Address : tuhlsatzenhausweg 3, Building 43.8, D aarbruecken, Germany Phone : 0049(0) Fax : 0049(0) mail : L :

2 e-government meets e-business c-government Keywords e-government, life-event, c-government, service bundles, individualized internet portal, synergy potential, business processes management, service engineering, cooperation, interoperable platform, one stop government, one face to the customer, information broker, Abstract e-government meets e-business c-government onventional life event based e-government solutions offer their customers e-government services according to their life situations. n case they offer nothing more than bundles of internet links. he benefit of this concept is that customers can get through the service bundles a faster access to the corresponding services. his approach has a lack of services because customers need in a certain circumstance not only public administration services more than that they need very often a combination of business and public services in order to satisfy their need for services. c-government closes this gap of services. t allows to exhaust unused synergy potential of e-government and e-business through the integration of public and privat services. hus it brings e-government and e-business together. he bundling of these services makes a re-engineering of the current service processes and organisational structures especially of the public administration necessary. Via a technological interoperable platform public administration and enterprises can run the service bundles without a break of media. he interoperable platform allows also the participation of former isolated e-government and e- Business solutions. he customers get an access to these services via a personalized internet portal. An information broker assembles for every customer an individual best fitting service bundle out of the service pool. c-government offers for all participants huge benefits which were not used through conventional life-event based e-government solutions till this day.

3 e-government meets e-business c-government urrent e-government solutions are suffering above all on effectiveness, efficiency and acceptance. With the existing e-government approaches public administration are far from their defined e-government goals. 1 here is a huge gap between the wished and reached e- Government objectives. he reason for this lies on the e-government concepts. 2 n the one hand the existing range of e-government solutions provide useful public administrations services to the customer via nternet but almost none of these offered services can be run without a discontinuity of media. n many cases the value chain of public administration services which are offered via internet are processed only partly with information technology. 3 A great deal of the added value chain has to be run on the classical way. his leads to a loss of effectiveness and efficiency and consequently to a bad process performance. he rise of the process costs are one negative results of these e-government solutions. he figure below illustrates the value chain of a public administration. Kunde ustomer fordert eine asks Dienstleistung for services an -nterstützung upported der Wertschöpfungskette value chain Gesamtprozess Whole Process eil- V eil- V eil- V eil- V schritt 1 W schritt 2 schritt 3 W W W value chain Wertschöpfungskette schritt n ustomer gets services nterface V = Value tage Figure 1: Value hain of public administration service 4 Not all value stages are supported with because to some extend there are legal restrictions. For example the whole taxation process can not be conduct online because the tax payer has to hand in some paper based documents. his leads to a break of media and thus to a loss of process performance. But the main problem of the existing e-government solutions is that they do not use the potential of e-government. he current existing e-government-solutions are offering to their customers services according to the life-event concept. his concept bundles services of public administrations according to the life situations of the customers. he services are offered to them via an internet portal. he goal of this model is to satisfy a certain need of customers in a certain life situation ideally with only one "stop". he customer gets through this approach all 1 Guengoez, ener; eel, hristian: -Government : trategien, Prozesse, echnologien, tudie und arktübersicht (ktober 2002). aarbrücken: D cheer AG, Forschungsgesellschaft nformatik (Hrsg.): uropean nformation echnology bservatory. Wien: FG, 2002, P. 345 ff.. 3 tabsstelle oderner taat oderne Verwaltung (Hrsg.): Bundnline 2005 : msetzungsplan für die e- Government-nitiative. Berlin: Bundesministerium des nnern, 2001, P Güngöz; Öner; eel; hristian: -Government : trategien, Prozesse, echnologien, tudie und arktübersicht (ktober 2002). aarbrücken : D cheer AG, 2002 (D cheer tudien), P. 42.

4 the necessary public services with just "a single stop" - according to the principle of "one face to the customer". 5 he life-events serve normally as a navigation aid to the online services of public administration which are relevant for the respective life situation. A citizen can be e.g. in a wedding life situation. n this circumstance he gets over only one e- Government-portal an access to all the services of the respective public administration whose services are relevant in his current life situation for the customer. n the case of a marriage the citizen has the possibility to get an internet access e.g. to the services of the following authorities: registration office civil registry office tax office labour office etc. Without an e-government-solution corresponding to the life situation concept the citizens have to request all the necessary services of these mentioned offices separately in a quite inefficient way. his proceeding seems to many citizens presently due to the missing transparency on the internet as very complex and difficult. n top of this, this kind of service allocation causes longer processes processing times and higher costs not only on the side of the customers but also on the one for the public administrations. Because of this itizens reject very often e- Government solutions. his leads to a lack of e-government acceptance. An e-government-solution which is developed according to the life-event concept offers all the services of the respective authorities which are needed in a special circumstance bundled to the customer via an e-government-portal. hese life based portals provide customers with bundled public administration services more customer-orientated in a very transparency and efficient way. First of all the transparent and customer friendly supply of the online services of public administration are essential for the acceptance of e-government within the population. Without the critical mass of e-government users e-government can never run cost-effective. herefore e-government concepts should build up on customers preferences as well as effective and efficient process performance aspects. Live-event based e-government solutions are one step towards these e-government concept requirements. his form of e-government makes it for public administrations and customers possible to use not exhausted success-potential. he following illustration reflects the circumstances which are described before: Not life-event based e-government concept Life-event based e-government concept V ffice 1 ffice 2 ffice n L N Personalised nternet portal based on lifesituation V ffice 1 ffice 2 ffice n onventional e-government concept ost developed e-government concept Figure 2: Life-event based against not life-event based e-government concept 5 Wimmer, aria: egv : eine integrierte Architektur für one stop.government. visit

5 n practice, apart from pilot projects, there are hardly e-government-solutions which are implemented according to the life-event concept that can offer online services processorientated without a break of media. he lack of process-orientated e-government developments have shown in the past that the realizable success-potentials could not be realised in a satisfying measure. he realization degree of fixed e-government goals are still far away from the desired one. Apart from this e-government-solutions which are focused on the lifeevent model exhibit a further substantial lack: hey are offering their customers almost only services of public administrations in a not integrated way. However, customers call in a certain life situations generally not only for public services moreover they need an integrated combination of services which are consisting of public administration and business company services. hrough the integrated service bundles the need of customers could be satisfied really with just a single "stop". he improvement of the life-situation model leads to a new e-government generation: "e- Government meets e-business called c-government". his term involves the idea of collaborative between the public and the private sector in order to satisfy the needs of the customers together in an integrated way. he c-government concept offers customers integrated service bundles which are consisting of services of public administrations and enterprises related to the life-situation concept. n order to be able to provide customers with integrated service bundles the process integration of the involved service suppliers are essential. ustomer can get an access to these services via a personalized internet portal. his kind of collaboration leads to new success potentials (synergy essential) which could not be achieved neither by past concepts nor by currently available ones. he difference between c- Government and usual e-government solutions based on the life-event concept is that services of public administrations and enterprises are not only bundled but rather integrated. ntegrated means in this context that a customer can satisfy his demand for services in a respective lifesituation with just a single service. A single service consists of a combination of several services of public administrations and enterprises. his higher-level service exists internally again of several co-ordinated and integrated partial services from the public and the business sector. his implies that public services of the involved authorities and business companies are merged together and co-ordinated into the super ordinated service. B1 B2 Bn P1 P2 Pn Higher level service Partial ervice 3 e.g. of B n ntegrated ervice Bundles L F - V N Legend: B= Business ompany P= Public Administration Figure 3: Process based view of the concept c-government

6 he ustomers receive an entrance to the integrated service Bundles based on the life-situation concept via an individualized internet portal. his e-government concept offers a substantial increase in value contrary to the e-government solutions which are already existing. he integration of e-business and e-government offers all participants new unused synergy potentials. hey are much larger than the ones which are only based on the elementary lifeevent concept. c-government presupposes in the future a closer co-operation between the public and business sector in order to exhaust unused success potentials through collaboration. he following illustration visualizes the conceptional requirements to the new e-governmentgeneration: P 1 Back ffice Partial ervices Front ffice Higher-level ervices P 2 P n B 1 B 2 Process eengineering ervice ngineering ndividualised nternetportal nteroperable Platform ervice Bundles L 1 L 2 L 3 L n B n ervice ntegration und ngineering - ervice Bundling ne top ne Face o the clients Legend : PA = Public Authorities B = Business ompany L = Life-vent Figure 4: Architecture of c-government A customer-oriented offer of service bundles presupposes the identification and the exact definition of every single life-situation. he target group oriented organizing of the integrated services is crucial for the acceptance of this innovative concept and thus also for the feasibility of the existing success potentials. he life-events must be defined exactly, so that for each circumstance the appropriate service from the public and business sector can be identified and allocated accurately. After the definition of the life-situations and the associated services the services have to be bundled marked-focused with the use of modelling methods. he task of the service engineering is to integrate these partial services of public administrations and enterprises into a customer-oriented high-level service according the life-event concept. he integration of these services requires above all the restructuring of the back office of the existing life-event based solutions. he collaboration between the public administrations and the enterprises presupposes a modification of their service processes. odification means the re-engineering of these service processes. he focus lies especially on the integration of these service processes. his represents the largest challenge. Process changes leads often also to organizational changes. specially, when the participant parties are strongly functionally organized. c-government presupposes process orientated organisational structures. he organizational structure of the involved parties should be modified in the way so that the new organisational structure supports the new designed processes. t should enable the organisation in order to implement and run the new processes without a loss of process performance. he attention lies on the principle of "structure follows process".

7 hus information technology based support of the re-engineered processes enables to run the collaborative services processes integrated, efficiently, effective and without a break of media. he geographically scattered value chain of the service processes is bridged by the use of the internet technology. he medium-break-free execution of the processes represents in practice still substantial problem. specially, because of the heterogeneity of the e-government technological landscapes. ne of the major problems is the use of incompatible information technology especially within the field of e-government. he innovative service bundles require an interoperable technological platform in that way that current incompatible technology systems can communicate over this platform with each other. he communication between former incompatible technologies enables a collaborative and integrated execution of the subordinated service. With the help of appropriate interface adapters a c-government network can be realized. n a c-government-scenario the service supply for the life-situation wedding would look as follows: Life-situation arriage ervice Bundles atering Wedding photos Honeymoon axation Work arriage Wedding N F A N B K nformation flow ash flow atering Photo agency ravel Agency ax ffice Labour ffice ivil register Figure 5: ervice bundling according c-government he customer gets via the personalized internet portal an access to the wedding-bundleservice. With this service bundle he can select different services of different service offerers. After the selection of the necessary services the user have to enter the appropriate datas over an input mask which are necessary in order to supply the selected services. nly one input is necessary for all partial services. he entered datas are transferred via the information broker to the appropriate organizations. At the same time the costs for the individually arranged service bundle are computed and charged for. he customer can pay its payment debt e.g. on-line with a credit card. he monetary equivalent of the payment debt is loaded over the credit card company into the account of the recipient of the services. he information broker forward the credited invoice amount to the invoicing organizations according to their demands. When the customer pays his commitment there is no need anymore to do several separat online financial transaction. He has only to transfer the total amount of his dept which was calculated by the system bevor. he information broker receives a proportional provision for its services from the public administration and enterprises. he provisions are calculated according to the provision payment system of credit card organisations. hrough this proceeding the customer gets the partial services of the service bundles temporally adjusted and integrated from the information broker. He does not have to visit any

8 more each webpage of the service suppliers in order to request the desired services. he information broker assembles for each customer his demand for services out of the available tender service portfolio. hrough this proceeding the process performance is significantly improved compared with common e-government solutions. he implementation of c-government leads of course to substantial challenges which have to be mastered. ne of the greatest challenge is the bad financial situation of public administration which do not afford them to spend a lot of money into e-government without a financial benefit like cost cutting. herefore public administrations are quite reserved to invest in new e-government concepts. Another major problem is in european countries the technological and conceptual heteregenous landscape of e- Government solutions. here are a lot of e-government sland solutions. his means that public administrations run systems which are not compatible to each other. Holistic and cross organizational e-government solutions is thereby not possible. Beside this many public administrations developed their e-government solution more technological driven than process oriented. 6 should only be an enabler for the reenginnered processes and organizational structures. 7 hey run their systems very often on unefficient and uneffective process and organizational structures. 8 n top of this a lot of public administrations do not have the necessary business process management knowledge. t will be a great challenge for them to cope with process and organizational reengineering. 9 Legal restriction complicate the reengineering process. 10 Another very important restriction for c-government is that there are still legal restriction which do not allow public administration at the moment to bundle services like described before. But step by step the governments have recognized that some laws have to be changed in order to modernize the public sector. he german government for instance has defined to some extend which laws have be changed in order to enable public online services. 11 he legal framework are changed respectivly will be changed in the nearest future. 12 Public administration can cope with the challenge of c-government. he closer collaboration between public administration and business companies offers to both huge unused potential. - Government combines e-business and e-government. he new era of online government has started. 6 Guengoez, ener; eel, hristian: -Government : trategien, Prozesse, echnologien, tudie und arktübersicht (ktober 2002). aarbrücken: D cheer AG, Klumpp, Dieter; Lenk, Klaus: lectronic Government als chlüssel zur odernisierung von taat und Verwaltung: emorandum des Fachausschusses Verwaltungsinformatik der Gesellschaft für nformatik e.v. und des Fachbereichs 1 der nformationstechnischen Gesellschaft im VD. Bonn, 2000, P Heib, alf: Kein -Government ohne Prozessveränderungen. Gestaltung organisationsübergreifender Geschäftsprozesse in der öffentlichen Verwaltung. n: NAV D21 e. V. (ed.): it nternet taat machen. - Government und die Zukunft der Demokratie. Berlin: nitiative D 21, 2002, pp eir, Joel: Geschäftsprozesse im -Government. in Überblick. Bern: nstitut für Wirtschaft und Verwaltung WV Bern, cheer, August-Wilhelm; ilius, Frank: nformationsgesellschaft: rends und zenarien der eleverwaltung. n: cheer, August-Wilhelm; Friederichs, Johann (Hrsg.): nnovative Verwaltung Wiesbaden: Gabler, 1996, , tabsstelle oderner taat oderne Verwaltung (Hrsg.): Bundnline 2005 : msetzungsplan für die e- Government-nitiative. Berlin: Bundesministerium des nnern, 2001, P Bundesamt für icherheit in der nformationstechnik: -Government-odellprojekte des Bundes. L <http://www.e-government-handbuch.de>, online

9 eferences Bundesamt für icherheit in der nformationstechnik: -Government-odellprojekte des Bundes. L <http://www.e-government-handbuch.de>, online Guengoez, ener; eel, hristian: -Government : trategien, Prozesse, echnologien, tudie und arktübersicht (ktober 2002). aarbrücken: D cheer AG, Forschungsgesellschaft nformatik (Hrsg.): uropean nformation echnology bservatory. Wien: FG, Heib, alf: Kein -Government ohne Prozessveränderungen. Gestaltung organisationsübergreifender Geschäftsprozesse in der öffentlichen Verwaltung. n: NAV D21 e. V. (ed.): it nternet taat machen. -Government und die Zukunft der Demokratie. Berlin: nitiative D 21, 2002, pp Klumpp, Dieter; Lenk, Klaus: lectronic Government als chlüssel zur odernisierung von taat und Verwaltung: emorandum des Fachausschusses Verwaltungsinformatik der Gesellschaft für nformatik e.v. und des Fachbereichs 1 der nformationstechnischen Gesellschaft im VD. Bonn, eir, Joel: Geschäftsprozesse im -Government. in Überblick. Bern: nstitut für Wirtschaft und Verwaltung WV Bern, cheer, August-Wilhelm; ilius, Frank: nformationsgesellschaft: rends und zenarien der eleverwaltung. n: cheer, August-Wilhelm; Friederichs, Johann (Hrsg.): nnovative Verwaltung Wiesbaden: Gabler, 1996, tabsstelle oderner taat oderne Verwaltung (Hrsg.): Bundnline 2005 : msetzungsplan für die e-government-nitiative. Berlin: Bundesministerium des nnern, L <http://www.bund.de/anlage67126/pdf_datei.pdf>, online Wimmer, aria: egv : eine integrierte Architektur für one stop.government. visit Hauschild, imo; sselhorst, Hartmut: -Government-Handbuch. Bonn: Bundesamt für icherheit in der nformationstechnik (B), L <http://www.bsi.de/fachthem/egov/6.htm>, online

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