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Can e-government solutions enhance the work in municipalities


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Can e-government solutions enhance the work in municipalities? Empirical evidence from case Lupapiste. Academic Mindtrek 2016 presentation. Jari Jussila and co-authors: Timo Lehtonen, Virpi Sillanpää, Nina Helander & Julius Kallio.

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Can e-government solutions enhance the work in municipalities

  1. 1. Can e-government solutions enhance the work in municipalities? Empirical evidence from case Lupapiste Jari Jussila1, Timo Lehtonen2, Virpi Sillanpää1, Nina Helander1 & Julius Kallio3 Tampere University of Technology, Solita & University of Tampere
  2. 2. 16.10.2016 2 Lupapiste service development started as a part of Action Programme on eServices and eDemocracy (SADe programme) set by the Ministry of Finance in Finland Case Lupapiste “Permission Desk”
  3. 3. Aim of the study: Internal Effectiveness & Efficiency (IEEE) and Enhancement of Knowledge Work 16.10.2016 3 B2G G2B G2B G2C G2G IEEE Municipality Other municipalities Citizens Businesses Solita e-Government service provider Source: see Scholl et al. (2009) E-Commerce and e- Government: How Do They Compare? What Can They Learn From Each Other?
  4. 4. Investigated Metrics • Throughput time is often used as an indicator of value, where the quicker it goes the better is the result, this is not, however, always the case in services, as humans have also indirect needs. • Flow efficiency has been defined as the sum of value-adding activities in relation to the throughput time. In measuring flow efficiency, the needs dictate what the value-adding activities are and therefore what flow efficiency is. 16.10.2016 4 Source: Modig, N. and Åhlström, P. 2012. This is lean: Resolving the efficiency paradox. Rheologica.
  5. 5. Research Approach • Data from Lupapiste • Interviews 16.10.2016 5 Municipality Roles of interviewees Number of interviews Hyvinkää Building inspector Secretary, customer service 1 1 Kuopio Engineer, construction permit Secretary, supervision of building 1 1 Vantaa Director, supervision of building Secretary, supervision of building 1 1 Sipoo Manager, supervision of building Secretary, supervision of building 1 1 Mikkeli Leading building inspector Office secretary 1 1 Usage data converter: Operative data converter:
  6. 6. Insights from the Interviews • Ability to process applications 24/7 wherever internet connection is available increased flexibility of work by enabling flexible working hours and remote work 16.10.2016 6 Efficiency Increased flexibility - Application processing 24/7 - Remote work Applicant Authority
  7. 7. Insights from the Interviews • Time savings related to printing activities were considerable for municipal employees, since printing large plans that was required before digital service, is time consuming and also costly 16.10.2016 7 Efficiency Cost savings - Time and cost savings of printing - Declined amount of customer visits as personnel can reply to questions online and customers can see the status of their applications online
  8. 8. Insights from the Interviews • Increased ability to utilize resources, especially building inspectors had more time to focus on their core tasks • E.g. productivity improvement of 65% in application handling (with the same amount of personnel) in one of the studied municipalities. 16.10.2016 8 Efficiency Productivity improvements - No need to search for (or locate) paper files - Reduction of information asymmetries - Improved information ergonomics
  9. 9. Measured lead times in municipalities Municipality Approved applications Distinct operations Average lead times Median lead times Municipality A 730 41 77 57 Municipality B 55 17 57 46 Municipality C 1600 39 69 56 16.10.2016 9
  10. 10. Measured median flow efficiencies in municipalities Municipality and operation 2014 2015 2016 Municipality A ground source heat 38 32 Municipality B ground source heat Municipality C ground source heat 45 54 57 Municipality A small houses 43 45 Municipality B small houses 40 Municipality C small houses 44 44 16.10.2016 10
  11. 11. Discussion and conclusions • The main factors increasing the knowledge work productivity were increased flexibility of the work, possibility to concentrate on the core work, information transparency and time savings due to digitalization of the application process. • Flow efficiency calculations together with the median times used to process the applications provide new indicators for evaluating the efficiency improvement from digitalization. • The most significant improvements in efficiency were achieved in municipality that was the most active in use of e-Government service. 100% digital provides the best results. 16.10.2016 11