# Presentation: 065142

## Assuring the Business Case for Emerging Technologies

**Assuring the Business Case for Emerging Technologies**

- For electronic services to citizens, businesses, other governments, and employees

- Mary J. Mitchell
- Office of Electronic Government mary.mitchell@gsa.gov
- 202 501-7092web: egov.gov

**IIBT**
**April 17, 2002**

## E-Government Management Agenda

***Vision:*****  **Deliver an **order of magnitude **improvement in the government’s value to the citizen
***Integral ******Part of President’s Management Agenda***
***Definition****:*  Using digital technologies to transform government operations in order to improve effectiveness, efficiency, and service delivery.
***The Principles:***
*** *****Citizen-centric, Market-based, Results-oriented**
** ****Simplify and Unify**

## E-Gov’t Services Landscape

- Internal
- Effectiveness and Efficiency

- Government to Government

- Government to Business

- Government to Citizen

## E-Gov Strategy Initiatives 

**Internal Effective & Efficiency**

- 1.  USA Service
- 2.  EZ Tax Filing
- 3.  Online Access for Loans
- 4.  Recreation One Stop
- 5.  Eligibility Assistance
-      Online

- 1.  e-Vital
- 2.  e-Grants
- 3.  Disaster Assistance
-      and Crisis Response
- 4.  Geospatial Information
-      One Stop
- 5.  Wireless Networks

- 1.  e-Training
- 2.  Recruitment One Stop
- 3.  Enterprise HR	Integration
- 	e-Travel
- 	eClearance
- 	ePayroll
- 4.  Integrated Acquisition
- 5.  e-Records Management

**E-Gov Strategy Initiatives **

**Managing Partner**
- OPM
- OPM
- OPM
- GSA
- OPM
- OPM
- GSA
- NARA

**Managing Partner**
- SSA
- HHS
- FEMA
- DOI
- Treasury

**Managing Partner**
- GSA
- Treasury
- DoEd
- DOI
- Labor

- 1.  Federal Asset Sales
- 2.  Online Rulemaking
-      Management
- 3.  Simplified and Unified
-      Tax and Wage Reporting
- 4.  Consolidated Health	** **
-      Informatics
- 5.  Business Compliance 1 Stop
- 6. Int’l Trade Process Streamlining

**Cross-cutting Barrier**:	eAuthentication GSA, Enterprise Architecture OMB

**Government to Business**

**Managing Partner**
- GSA
- DOT
- Treasury
- HHS
- SBA
- DOC

**Government to Government**

## Criteria for Initial E-Gov Initiatives

**Criteria for Initial E-Gov Initiatives**

## Value Propositions

_**On-line Access for Loans**_
- Value to Citizen:  faster, easier access to loan information and transactions.
- Loan processing time will be shortened from 30
-       days to 20 days.
_**One-Stop Business Compliance**_
- Value to Citizen:  single, cross-agency business compliance portal to reduce the regulatory burden.
- Permits processed and issued online 24
-       hours a day, 7 days a week.
_**Early Gov’twide Success:  FedBizOpps.gov**_
- Firms can access all Federal Contract Opportunities

**Notes:**
On-line Access for Loans – enables citizens to apply online for money from the government.

Imagine finding a loan at the lowest rate with the best terms and conditions and getting your answers without having to figure out the Government’s bureaucracy.

One-Stop Business Compliance-   simplifies and unifies compliance information and related permits.  

Allows businesses to determine regulatory compliance requirements at the federal, state and local levels and plan for compliance as opposed to negative impact of non-compliance.  In fact, early access to regulatory changes can result in better investment decisions. 

## Improving the Measurement Approach

- development
- Methodology
- Teaching case

- discussion
- Symposium
- Workshop

- presentation

- research & analysis

- Approach

- Team

- Study Team

**Booz Allen**
**Harvard University**
**Kennedy School of Government**
**E-Gov Executive Education Program**

- Purpose

**Develop a methodology for measuring the value of e-services that may be used by organizations across the federal government.**
**Duration **
**07/2001 – 01/2002**

**Social Security **
**Administration**
**General Services**
**Administration**

## Understanding Performance (Benefits) & Costs  The Base Case Option

**Understanding Performance ****(****Benefits****)**** & Costs  *****The Base Case Option***

- Projects the results of maintaining current systems and processes while attempting to keep pace with changes over time.

**T          I          M          E**

- rising demand

- customer
- satisfaction

**status quo**

**base case option**

## 6 Essential Factors

***6 Essential Factors***

- A framework for the multi-dimensional analysis required to understand and capture the full value of e-services.
- Applicable to e-services in all business lines...
- Government to Citizen
- Government to Government
- Government to Business
- Internal Effectiveness and Efficiency
- Imperatives (sub-criteria) for success in each factor are used to guide analysis

## 6 Essential Factors (cont.)

- Factor

- Definition

**Direct Customer ****(user) Value**

- associated with the value realized by the user

- Possible Sub-Criteria

- G2C - Quantify time saved
- G2G - Monetized customer time
- G2B - Monetized customer time
- IE&E - Monetized employee time

**Social (non-user) Value**

- realized by individuals and organizations that are neither direct users of the service nor the service provider

- G2C - Improved trust in government
- G2G - Improved sharing of information
- G2B - Improved monitoring of regulatory compliance
- IE&E - Greater visibility

**Government Operational/****Foundational Value**

- an order of magnitude improvement achieved in current performance and in preparation for future requirements

*For All Business Lines*
- On-time Completion Rate
- Redundancy
- Net Congestion
- Flexibility

## 6 Essential Factors (cont.)

- Factor

- Definition

**Strategic/Political Value **

- is associated with the ability to move an organization toward fulfilling its mission

- Possible Sub-Criteria

*For All Business Lines*
- Political Image (# of positive press articles)
- Legislative guidelines met
- Advancement toward meeting goals

**Government Financial Value**

- benefits that have a direct impact on organizational and other federal government budgets

*For All Business Lines*
- Cost per step
- Cost per transaction
- Decreased cost of materials
- Reduced costs of correcting errors

**Risk **

- associated with the variables that might directly cause a project to be unable to meet goals

*For All Business Lines*
- Project success ratio by project team
- Project Risk: cancellation, scope creep, schedule, program management
- Organizational risk: demand/usage, impact on other delivery channels
- Technical risk: feasibility, obsolescence, security, integration complexity

## Framework and Assessment Analytics

***Framework and Assessment Analytics***

**6**
**Essential****Factors**

**User Value**

**Social Value**

**Gov. Financial ****Value**

**Gov. Operational /****Foundational Value**

**Strategic Political****Value**

**Sub-****Criteria**

**Points**

**Risk Score and Tolerance Boundaries**

**Understanding Performance (benefits)**

**Understanding**
**Costs**

**Decision Framework**

**Cost Element Structure**

## Measuring the Value of E-Services

_**Five Step Process**_
- Develop Decision Framework
-    - Includes OMB evaluation criteria for setting priorities
- Consider Risk
-   - Falls within organization’s risk tolerance boundaries
- Define Measures of Success and Targets
-   - Linked to OMB evaluation criteria
- Estimate Costs
-   - Considers a full range of costs for IT investments
- Pull together the information
-   - Perform value-per-dollar assessment

**Notes:**
Open:  Be able to better understand, capture, and evaluate the value of an IT investment  

1.Basis for investment decisions
-reflects organizational priorities
-links to value factors
-helps to understand investment alternatives

2. Understand the impact of risk
-attempt to mitigate the risk to the greatest degree possible

3. Want measures to align w/OMB’s evaluation criteria
-what is being measured is linked to what OMB is evaluating

4. Wide range of costs, different scenarios
-probability assessments to increase confidence level (e.g., reducing uncertainty in order to improve decision-making)
-Monte Carlo capabilities (plug into EXCEL spreadsheet)

5. Looking at the value (points) per dollar invested 

## OMB E-Gov Evaluation Criteria

**Measure Weight**
- Statutory/other requirements mandating proposed effort
- Customer service improvements
- Impact on desires of customer base
- Tangible and/or intangible benefits
- Use of IT in re-engineering government processes
- Risks associated with the  project
- Continued funding requirements
- Collaboration with other agencies
- Maximizing (optimizing) resources
- Overall return-on-investment

## ROI Study on Authentication

- Standard methodology for agencies to use in projecting ROI when deploying strong authentication
- Synthesize findings from a comprehensive analysis of government and industry business cases and (ROI) studies
- Implications of the different cost models
- Delivery May 2002

## Closing Words

- Enabling E-Government through
- Cross-governmental Initiatives and Collaboration
- Value to Customer (user)
- Value to Agency/improvements to business processes
- Impact Assessment
- Identify initiatives with the most merit
- Track progress against value proposition
- Criteria will vary based on phase of investment