E-gov Enterprise Business model

Transcription

1 E-gov Enterprise Business model Enn Õunapuu Tallinna Tehnikaülikool

2 Business model definition A business model is nothing else than a description of the value a company offers to one or several segments of customers and the architecture of the firm and its network of partners for creating, marketing and delivering this value and relationship capital, in order to generate profitable and sustainable revenue streams.

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9 Business model platform We define a platform as an extremely valuable and powerful ecosystem that quickly and easily scales, morphs, and incorporates new features (called planks in this book), users, customers, vendors, and partners.

10 Business model platform continued Today, the most powerful platforms are rooted in equally powerful technologies and their intelligent usage. In other words, they differ from traditional platforms in that they are not predicated on physical assets, land, and natural resources. The most vibrant platforms embrace third-party collaboration.

11 E-gov model Why we need?

12 Extensive duplication, overlap and gaps in critical Government functions* 50 agencies implement Federal drug control strategies 29 agencies administer 541 clean air, water, and waste programs 23 agencies administer 200 programs that provide assistance to countries formerly part of the Soviet Union 13 agencies administer 342 Federal economic development-related programs 12 agencies administer more than 35 food safety laws Page 12 9/9/ * Urgent Business for America: Revitalizing the Federal Government for the 21 st Century. The Report of the National Commission on the Public Service, January 2003.

13 Extensive duplication, overlap and gaps in critical Government functions (continued) 11 agencies administer 90 early childhood programs 9 agencies administer 86 teacher training programs 9 agencies administer 27 teen pregnancy programs 8 agencies administer 50 different programs to aid the homeless 7 agencies administer 40 different job training programs 9/9/

14 This is not a technical problem! (or is it?) Systems are specified without an enterprise-level understanding of the: How they support the Mission Objectives Business processes (e.g., supply chain) Existing technical architecture New technology initiatives In the Federal Government, there is no good way today to gain cross-agency, cross-organization insight. and the supply chain today goes BEYOND the Federal Government Post-911 coordination between Office of Homeland Security, other Federal agencies, State, and Local law enforcement, Fire departments, etc. 9/9/

15 E-Government: Unification and simplification around citizen needs For individuals Easy to find, one-stop shops for citizens creating single points of easy entry to access high-quality governmental services For businesses Reduce the burden on businesses through the use of Internet protocols, simplifying interactions, and consolidating redundant reporting requirements For government agencies Make it easier for states and localities to meet reporting requirements, while enabling better performance measurement and results (e.g., grants) Internal efficiency and effectiveness Reduce costs for Federal Government administration by using best practices in areas such as supply chain management, financial management, and knowledge management Page 15 9/9/

16 The Vision: Order of magnitude improvement in the federal government s value to the citizen; with decisions in minutes or hours, not weeks or months 9/9/

17 How? Unify Infrastructure Unify access to data stores Collect the data once (requires agreement on data definitions) Integrate customer interface Monitor and measure (define success and measure) Simplify Processes Define and build integrated delivery channels The Teeth If you don t play, you don t get funded The FEA is a framework for making IT investment decisions for FY 2015 Budget (Form 300s) 9/9/

18 The Federal Enterprise Architecture (FEA) is: A Business-Focused Framework for Cross-Agency, Governmentwide Improvement A new way of describing, analyzing, and improving the Federal Government and its ability to serve the citizen The FEA will provide the ability, for the first time, to look across the Federal Government and identify opportunities to collaborate, consolidate, and leverage IT investments 9/9/

19 The FEA is a set of inter-related reference models to facilitate collaboration and information sharing Federal Enterprise Architecture (FEA) Business-Driven Approach Performance Reference Model (PRM) Government-wide Performance Measures & Outcomes Line of Business-Specific Performance Measures & Outcomes Business Reference Model (BRM) Lines of Business Agencies, Customers, Partners Service Component Reference Model (SRM) Service Layers, Service Types Components, Access and Delivery Channels Data Reference Model (DRM) Business-focused data standardization Cross-Agency Information exchanges Technical Reference Model (TRM) Service Component Interfaces, Interoperability Technologies, Standards Recommendations 9/9/ Component-Based Architecture

20 The FEA Business Reference Model (BRM) is a framework for describing the Lines of Business performed by the Federal Government independent of the Agencies that perform them Citizen to Government Access Channels Government Employee to Employee Access Channels Telephone -Voice -Interactive Web Services Program Admin Public Asset Management Marketable Asset Management Defense & Nat l Security Ops Diplomacy & Foreign Relations Disaster Management Domestic Economy Education Energy Management Insurance Public Health Recreation & National Resources Social Services R&D & Science Telephone -Voice -Interactive E-system to System/ Web Services E-system to System Legislative Management Business Management of Information IT Management, Regulator Management Planning and Resource Allocation Public/ Private Partnerships Internet/ Portal Services for Citizens Services to Citizens Public/Private Partnerships Fax Kiosk Fax Support Delivery of Services Compliance Regulated Regulated Activity Activity Approval Approval Consumer Safety Safety Environmental Management Law Law Enforcement Legal Revenue Revenue Collection Collection Trade Trade (Import/Export) (Import/Export) Transportation Workforce Workforce Management Management Intranet/ Portal Face to Face Face to Face Mail Mail Controls and Oversight Public Affairs Internal Risk Management and Mitigation Federal Financial Assistance Inter-Agency Internal Operations / Infrastructure Human Resources, Financial Management Admin Supply Chain Management 9/9/ Human Resources, Financial Management Admin Supply Chain Management

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29 Business model dimensions What kind rights producer Distributor Rentier Broker What kind of values Physical Financial nonmaterial people

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31 Rappa Business Models Brokerage Advertising Infomediary Merchant Manufacturer (Direct) Affiliate Community Subscription Utility

32 Brokerage model Brokers are market-makers: they bring buyers and sellers together and facilitate transactions. Brokers play a frequent role in business-tobusiness (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets. Usually a broker charges a fee or commission for each transaction it enables. The formula for fees can vary. Brokerage models include: Marketplace Exchange -- offers a full range of services covering the transaction process, from market assessment to negotiation and fulfillment. Exchanges operate independently or are backed by an industry consortium. [Orbitz, ChemConnect] Buy/Sell Fulfillment -- takes customer orders to buy or sell a product or service, including terms like price and delivery. [CarsDirect, Respond.com] Demand Collection System -- the patented "name-your-price" model pioneered by Priceline.com. Prospective buyer makes a final (binding) bid for a specified good or service, and the broker arranges fulfillment. [Priceline.com] Auction Broker -- conducts auctions for sellers (individuals or merchants). Broker charges the seller a listing fee and commission scaled with the value of the transaction. Auctions vary widely in terms of the offering and bidding rules. [ebay]

33 Manufacturer Direct Model The manufacturer or "direct model", it is predicated on the power of the web to allow a manufacturer (i.e., a company that creates a product or service) to reach buyers directly and thereby compress the distribution channel. The manufacturer model can be based on efficiency, improved customer service, and a better understanding of customer preferences. [Dell Computer] Purchase -- the sale of a product in which the right of ownership is transferred to the buyer. Lease -- in exchange for a rental fee, the buyer receives the right to use the product under a terms of use agreement. The product is returned to the seller upon expiration or default of the lease agreement. One type of agreement may include a right of purchase upon expiration of the lease. License -- the sale of a product that involves only the transfer of usage rights to the buyer, in accordance with a terms of use agreement. Ownership rights remain with the manufacturer (e.g., with software licensing). Brand Integrated Content -- in contrast to the sponsored-content approach (i.e., the advertising model), brand-integrated content is created by the manufacturer itself for the sole basis of product placement. [bmwfilms].

34 Affiliate model In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, the affiliate model, provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model -- if an affiliate does not generate sales, it represents no cost to the merchant. The affiliate model is inherently well-suited to the web, which explains its popularity. Variations include, banner exchange, pay-per-click, and revenue sharing programs. [Barnes & Noble, Amazon.com] Banner Exchange -- trades banner placement among a network of affiliated sites. Pay-per-click -- site that pays affiliates for a user clickthrough. Revenue Sharing -- offers a percent-of-sale commission based on a user click-through in which the user subsequently purchases a product.

35 Community Model The viability of the community model is based on user loyalty. Users have a high investment in both time and emotion. Revenue can be based on the sale of ancillary products and services or voluntary contributions. Open Source -- software developed voluntarily by a global community of programmers who share code openly. Instead of licensing code for a fee, open source relies on revenue generated from related services like systems integration, product support, tutorials and user documentation. [Red Hat] Public Broadcasting -- user contributor model used by not-forprofit radio and television broadcasting extended to the web. The model is based on the creation of a community of users who support the site through voluntary donations. [The Classical Station (WCPE.org)] Knowledge Networks -- discussion sites that provide a source of information based on the sharing of expertise among professionals. [AllExperts]

36 Subscription Model Users are charged a periodic -- daily, monthly or annual -- fee to subscribe to a service. It is not uncommon for sites to combine free content with "premium" (i.e., subscriber- or member-only) content. Subscription fees are incurred irrespective of actual usage rates. Subscription and advertising models are frequently combined. Content Services -- provide text, audio, or video content to users who subscribe for a fee to gain access to the service. [Listen.com, Netflix] Person-to-Person Networking Services -- are conduits for the distribution of user-submitted information, such as individuals searching for former schoolmates. [Classmates] Trust Services -- come in the form of membership associations that abide by an explicit code of conduct, and in which members pay a subscription fee. [Truste] Internet Services Providers -- offer network connectivity and related services on a monthly subscription. [America Online]

37 Utility Model The utility or "on-demand" model is based on metering usage, or a "pay as you go" approach. Unlike subscriber services, metered services are based on actual usage rates. Traditionally, metering has been used for essential services (e.g., electricity water, long-distance telephone services). Internet service providers (ISPs) in some parts of the world operate as utilities, charging customers for connection minutes, as opposed to the subscriber model common in the U.S. [IBM] Metered Usage -- measures and bills users based on actual usage of a service. Metered Subscriptions -- allows subscribers to purchase access to content in metered portions (e.g., numbers of pages viewed). [Slashdot]

38 Example Balanced Scorecard: Regional Airline Mission: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Vision: Continue building on our unique position -- the only short haul, low-fare, high-frequency, point-to-point carrier in America.

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40 Summary