Disruptive eGov

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Open Source and Collaborative development could make a huge difference in Back Office state eGovernment systems like Tax/ Revenue, ERP, etc.. This presentation covers the general ideas

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  • Using 6 state’s data points. These costs per year are most likely not-all inclusive.
  • Disruptive eGov

    1. 1. Government Back Office Systems The high cost of success and failure
    2. 2. State Back-Office Systems Since in Hawaii our Tax/ Revenue system needs to be replaced, I’ll focus on those. But this really applies to most government back-office systems. • Big • Expensive • Clunky • Horrible • Get disruptive
    3. 3. Big • There are no small tax systems • 500K > State Populations > 37M • Subsystems: • Intake: Mail, electronic, payments • Inquiry (Customer Service, Research) • Collections • Audit • Refunds • Licensing • Accounting • Imaging • Archives
    4. 4. Expensive • Four primary vendors have 75% of the business • Some states grow their own. • The cost between a failure and a success is not that different!
    5. 5. Expensive • Upfront costs are enormous • Between $25 and $100 million • Annual Support is Staggering • $2 - $10 million
    6. 6. Expensive: Cost per year! $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 0 1 2 3 4 5 6 7 Tax System Projects
    7. 7. Clunky • Based on old technology by definition • Lifecycle is 12 years • Project today starts with 6 year old tech • User interface style even older
    8. 8. Horrible • In the last 12 years 5 states have sued the vendor over the system delivered. • Others (like HI) have opted to tread onward.
    9. 9. Crap! What now? • So the vendors charge a bazillion $ • The solutions can cause more problems than they solve. • It can’t be that hard to do!
    10. 10. Examples of Other Disruptive Systems • Cashiering Systems • Paper and drawer • Adding Machines – with audit ribbon • Computer aided • Networked (NEC) • PC Based • Cell Phone Based (Square)
    11. 11. Examples of Other Disruptive Systems • Data Storage • Stone • Paper • Images (Cold Storage Systems) • Photoelectric • Magnetic • Optical • Data • Ledger • Computer data structures • Cloud
    12. 12. Examples of Other Disruptive Systems • Publishing • Printing Press • Offset Printing • Software based design • Ink-jet and laser printing • Print on demand services • Costco…
    13. 13. Why Not Open Source It? 1. Execute an RFI for the perfect Integrated Tax System. 2. Create a contest for an Open Source Integrated Tax Solution leveraging the RFI! 3. Set awards of $1M, $500K and $300K to the top three. 4. Contract or use state IT to manage the contest, evaluate and host the system
    14. 14. $3M could do a lot! • We could afford two tax systems and choose features from the best one! • State owns the code and opens the source to other states/ nations. • World Peace follows. (possible over optimism)
    15. 15. Other Systems Too This approach could work for much more! • Election system back-ends • Enterprise Resource Planning • Legislative Data Systems • More..
    16. 16. Resources • http://radar.oreilly.com/2013/03/github- government-bureaucat-open-source.html • http://linuxuser32.wordpress.com/2008/12/30/wha t-if-public-sector-software-systems-were-open- source • http://thenextweb.com/insider/2013/01/12/the- norwegian-ministry-of-finance-may-open-source- cash-registers-to-prevent-tax-fraud/ • http://www.propublica.org/article/how-the-maker- of-turbotax-fought-free-simple-tax-filing
    17. 17. More • This deck is incomplete.. The actual plan pending. • Lets change the world! • Follow up with russell@castagnaro.com

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