Public Sector Transformation Through E-Government

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Public Sector Transformation Through E-Government Page 31

by Christopher G Reddick


  applies to the entire public sector. It is expected to save the public some 120

  million Euros annually, in addition to savings in internal administrative

  processes. (Trias telematica, 2007a). As this case illustrates, the harmoniza-

  tion of transaction processing systems has a potential to bring tangible ben-

  efi

  fits to collaborating agencies, customers, and the society as a whole. The

  idea is to replace agency-based solutions by a standardized system, which

  contributes to the transition of the entire government structure towards

  collaborative government or joined-up government.

  5.3 Crossroads Bank of Belgium

  An interesting simplifi

  fication case from Belgium is Crossroads Bank, which

  facilitates the sharing of information between government agencies to

  rationalize information exchanges. A major business process reengineer-

  ing and computerization was carried out during the past 15 years by about

  2,000 Belgian public and private actors in the social sector from local to

  national levels, under the coordination of the Crossroads Bank for Social

  Security (CBSS). This collaboration led to the implementation of a network

  for joint electronic service delivery. All actors connected to the network

  can consult their databases and exchange up to 180 diff

  fferent types of elec-

  tronic standard messages within the system framework in a secure way. In

  2004, 380 million messages were exchanged, which reduced the printing

  of documents by roughly the same number. The reciprocal data exchange

  guarantees unique collection of data from the citizens and their employ-

  ers by the social sector as a whole, and enables the automatic granting of

  social benefi

  fits. (Trias telematica, 2008; Cabinet Offi

  ffice 2009, p. 41). This

  case reveals how important agenda data-sharing is in government process

  redesign. This kind of change has similar kind of systemic dimension as in

  harmonizing transaction processing systems.

  5.4 Pre-completed Tax Return in Finland

  A classic example of redesign is the pre-completed tax return. In the Finnish

  system every individual with taxable income needs to submit a tax return.

  Taxpayers receive pre-completed tax return forms in an envelope in spring.

  They include a set of data on income, such as wages, pensions, and receipts

  of dividends, which are collected by the tax authority from employers. Such

  a procedure is possible due to a comprehensive system of basic registers. If

  a taxpayer fi

  finds that the facts are correct, he/she need not take any further

  176 Ari-Veikko

  Anttiroiko

  action. If there are errors or omissions, the individual is expected to complete

  the form for corrections and return the documents to the tax offi

  c

  ffi e for repro-

  cessing. (Nordisk eTax, n/a). In the latter case, a user may sign in to a secure

  online tax return site. The pre-completed tax returns is also a case for how IT

  can be incorporated in the radical process reengineering. Instead of just pro-

  viding e-forms which can be used to fi

  fill in a tax return, the idea is to dispense

  with unnecessary forms, reduce unnecessary work, coordinate information

  processes and streamline the whole process with a special view to reducing the

  administrative burden of citizens and businesses. In this case the effi

  c

  ffi ient col-

  lection of information and back-offi

  c

  ffi e data sharing serve as a building block

  of an entire society, as it guarantees transparency, coherence, and effi

  c

  ffi iency in

  taxation. It also provides benefi ts

  fi to ordinary citizens, as their obligations in

  taxation are reduced to a minimum.

  5.5 Virtual Customs Offi

  ce of Sweden

  ffi

  Simplific

  fi ation of protection and control functions performed by government

  have a lot of potential due to the volume and importance of these functions in

  society. One example of the rethinking and redesigning of such services is the

  customs in Sweden, which, through the application of process management,

  has come to the conclusion that the customs process does not start or even end

  with the customs itself. This has increased discussion with other public stake-

  holders in the foreign trade process. The result was the creation of a Virtual

  Customs Office, through which Swedish Customs on behalf of other public

  entities performs a number of integrated, interdepartmental e-services adding

  value to the overall foreign trade process for the Swedish business commu-

  nity. Besides the traditional Single Window solutions, the virtual customs col-

  lect value added taxes on imports on behalf of the taxation authorities, trade

  statistics on behalf of Statistics Sweden, and facilitate foreign trade regard-

  ing licenses through innovative e-services in partnership with the Board of

  Trade and the Board of Agriculture. This means that a customer can apply

  for, monitor and compute given license quantities and/or values by using My

  Customs Offi

  c

  ffi e through the Virtual Customs Offi

  c

  ffi e, hence creating an inte-

  grated front-offi

  c

  ffi e solution. The long-term objective for the Virtual Customs

  Offi

  c

  ffi e is to enable seamless electronic processes covering the full value chain

  through the use of sophisticated e-services. (Trias telematica, 2007b). The

  previous cases were ‘systemic’ in the truest sense of the word, whereas this

  Virtual Customs Offi

  c

  ffi e represents the case of action-oriented interagency ser-

  vice collaboration.

  5.6 TYVI Model of Finland

  Another actor-based case to be discussed here is the TYVI Model (t

  l he Finnish

  name of the system is Tietovirrat Yritysten ja Viranomaisten välillä, literally Information Flows between Companies and Public Authorities) set up by the

  Collaborative Government 177

  Ministry of Finance in 1997. It is a standardized data collection and exchange

  system used by several authorities, which aims at improving data reporting

  from companies to public authorities. TYVI started as a small pilot project

  with the option of scaling up. From the beginning it was planned to become

  fi

  financially self-supporting and to rely on private providers as brokers. (Val-

  tioneuvoston kanslia, 2005). The TYVI Model has been expanding steadily

  since its inception. For example, in 1998 monthly and quarterly reporting

  from companies included some 2000 companies, the number tripled in the

  following year and has increased yearly since then. Yet in Finland a large part

  of taxation related information is still transmitted from companies to the tax

  authority conventionally on paper. This last case, the TYVI Model, is another

  example of basically voluntary interagency collaboration and also of broker-

  age, which brings an action-oriented dimension into the picture of govern-

  ment process redesign. This, j
ust like the previously discussed Swedish case, is

  essentially a case in which some agency acts on behalf of others, which brings

  effi

  c

  ffi iency gains through coordinated actions.

  Key aspects of government process redesign together with abovemen-

  tioned examples are presented in Figure 13.2.

  The most critical aspect of interagency collaboration in various types of

  redesign processes seems to be the governance of the service redesign with

  regard to its systemic nature. Yet, we may also hypothesize that there are

  nuances and diff

  fferences which refl

  flect the varying aspects of collabora-

  tion: framing requires more than anything strong political leadership and

  Type of

  Examples

  Efficiency

  intervention

  gains

  Framing

  Policy, leadership,

  Regulatory reform and

  Structural

  regulation and

  the set-up of ACTAL

  efficiency:

  institutional design

  (the Netherlands)

  better regulatory

  environment

  Systemic

  Harmonizing Standardization

  efficiency:

  eInvoice (Denmark)

  Supply-side

  and back-office

  standardized

  rationalization

  systems

  simplification

  and redesign

  measures

  Informational

  Shared databases

  CBSS (Belgium)

  Sharing

  efficiency:

  and information

  Pre-completed tax

  sharing of

  return (Finland)

  information

  Interactional

  Collaboration and

  Virtual Customs

  Acting

  efficiency:

  coordinated actions

  Office (Sweden)

  collaborative

  TYVI Model (Finland)

  arrangements

  Figure 13.2 Benefi ting from e-enabled administrative simplifi

  fi

  cation and redesign.

  fi

  178 Ari-Veikko

  Anttiroiko

  fi

  firm organization of coordinated policy measures, harmonizing requires

  power over agencies operating within the system, sharing requires trust

  and tangible benefi

  fits in order to look persuasive to potential collabo-

  rators, and acting requires clear benefi

  fits and arrangements in order to

  guarantee smooth operations. As systemic nature is a kind of determining

  factor at the threshold of strategic or radical change, we may assume that

  “systemization” is a critical strategy-level design activity. Such “system-

  ization” is needed to attune the components of services—such as service

  provider, value-adding core and support services, service setting, service

  process and delivery channel, and service user—within the public sec-

  tor context so that jurisdictional and sectoral boundaries do not impede

  the creation of integrated value-adding services. This implies that such

  an approach is not only an application of some ready-made model but a

  learning process, marked by tensions and contradictions (cf. Warmington

  et al., 2004). Such a policy paves the way to radically new collaborative

  arrangements and to joined-up or seamless production models (see, e.g.,

  Drüke & Klinger, 2011).

  6 FUTURE

  TRENDS

  The future of e-enabled interagency collaboration as a means for govern-

  ment process redesign is a political issue that is shaped according to the

  key characteristics and challenges of each national context. However,

  it is obvious that administrative simplifi

  fication and redesign will con-

  tinue to be important elements in the public sector reform throughout

  the developed world.

  Impetus from research and the private sector is directing public sector

  reforms from supply-side approaches toward a user-centered approach,

  even though at the practical level this development is gaining ground

  only slowly. Anyhow, when customers are involved in the process not

  only in the design phase but also in implementation, we will enter a truly

  new phase in the development of public service provision, which can

  be called the co-creation model of public service (cf. Bailey, 2011). To

  simplify, the current trend of e-enabled interagency collaboration within

  systemic context may transform into e-enabled co-creation taking place

  on platforms that enable open innovation and seamless composition of

  tailored service packages.

  It goes without saying that emerging technological trends will affect

  the future of public administration, including interagency collabora-

  tion. The current approach emphasizes interoperability and standard-

  ized solutions, but it is highly likely that new opportunities will arise

  from the utilization of ubiquitous technologies, augmented reality and

  social media by revolutionizing the user-centered redesign of public ser-

  vices. All this will strengthen the transition from supply-side oriented

  Collaborative Government 179

  e-government toward collaborative, joined-up, ubiquitous, or seamless

  government, depending on what features are emphasized or will domi-

  nate the future development.

  7 CONCLUSION

  Administrative simplifi ca

  fi tion and redesign form an important part of the

  reshaping of the way public organizations operate and interact with each

  other and with their stakeholders. Cutting red tape is usually an incre-

  mental change but may also be a part of a radical reform with the aim of

  reengineering government processes and reconsidering the scope of gov-

  ernment activities.

  In this chapter we have systematized the potential of e-enabled inter-

  agency collaboration as a means of government process redesign by cat-

  egorizing both degrees of the radical nature of change and the modes of

  collaboration, which are combined in framing–harmonizing–sharing–act-

  ing framework. The conventional approach to redesign is action-oriented

  interagency collaboration, which through the changing roles and division

  of labor paves the way for rationalization, simplification, and incremental

  redesign. Yet this chapter points out to a more radical redesign as well,

  which opens a vision for truly collaborative government.

  Simplifi

  fication and redesign are challenging processes, as they relate

  to collective actions that are associated with structural change, which

  naturally increases ambiguity, inertia, and tensions. In addition, they

  are embedded in cultural, political, and administrative contexts, which

  condition the agenda-setting and implementation of related processes.

  Such observations boil down to a systemic nature of most of the service

  redesign and innovation processes, especially the radical ones, which in

  turn entails paying special attention to the governance of “systemiza-

  tion” process, which is needed in translating public policies into prac-

  tices of integrate
d service systems.

  Our perspective on simplifi

  fication and redesign may need to be much

  more radical in the future than it is today, for after major simplifica-

  tion measures have been accomplished within existing political-admin-

  istrative systems and their underlying rationalities, there will be—under

  the pressure of global competitiveness, fi

  financial distress, and a legiti-

  mation crisis—an urgent need to rethink the entire role of government

  in society.

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