Public Services Reengineering Through Cost Analysis and Simulation: The eGOVSIM II Platform
Formal methods for measuring the impact of transformation of public services to digital transactions is an important research challenge in the non-bureaucratic government. The eGOVSIM II toolset is a prototype Web-based application aiming to provide administrations with a methodology and an information system to calculate the gains from automating and delivering interoperable services for citizens and businesses. The chapter presents the eGOVSIM II platform, which has been developed on the basis of the eGOVSIM analytical cost calculation and simulation model. It is based on the SCM and ABC methods and has extensive capabilities in capturing and measuring the various cost elements of governmental services, calculating both the cost for the administrations and the citizens or enterprises, in different levels and scenarios of automation. The eGOVSIM II platform facilitates the definition of several service provision scenarios, allowing the calculation of time, effort, and cost elements of each scenario. The chapter provides a full view of the publicly available system and its functionalities, by showcasing an application scenario testing the reengineering of public services in a Greek Public Sector organization. Results from this application and different scenarios executed in the past are showcased to provide a view on the applicability and overall value of the approach. Finally, lessons learned and future research directions for cost estimation are described.
KeywordsPublic service Electronic government Cost analysis Service transformation Activity-based costing Standard Cost Model Simulation tool Business process modeling
- Alabanos, N., Theodoropoulos, S. (2016) A key-point comparison & the new challenges for the existent Administrative Burden Models (ABM’s). SPOUDAI-Journal of Economics and Business 66(1–2):32–45.Google Scholar
- Askarany, D., Yazdifar, H. (2007) “Why ABC is not widely implemented?”, International Journal of Business Research VII(1):93–98.Google Scholar
- Becker J., Bergener P., Kleist S., Pfeiffer, D., Raeckers, M. (2008) Business Process Model-Based Evaluation of ICT Investments in Public Administrations. In: AMCIS 2008 Proceedings, Paper 353.Google Scholar
- Brown, R. E., Myring, M., Gard, C. G. (1999) Activity-Based Costing in Government: Possibilities and Pitfalls. Public Budgeting & Finance 19(3–21).Google Scholar
- Charalabidis, Y., Askounis, D. (2010) eGOVSIM: A Model for Calculating the Financial Gains of Governmental Services Transformation, for Administration and Citizens. Paper presented at the 2010 43rd Hawaii International Conference on System Sciences (HICSS), Hawaii, 5–8 January 2010.Google Scholar
- Charalabidis Y., Lampathaki F., Psarras J. (2009) Combination of Interoperability Registries with Process and Data Management Tools for Governmental Services Transformation. Paper presented at 42nd Hawaiian International Conference on System Sciences (HICSS), Hawaii, 3–5 January 2009.Google Scholar
- Chung, H. M., Khan, M. B. (2007) An Analysis of Activity-Based Costing (ABC) Project Implementations. Baltimore, Maryland, 39th Annual Meeting of the Decision Sciences Institute 4381–4386.Google Scholar
- The Chartered Institute of Management Accountants - CIMA (2001) Activity based management – An overview. Technical briefing. http://www.cimaglobal.com/Documents/ImportedDocuments/ABM_techrpt_0401.pdf. Accessed 27 August 2016.
- Cooper, R. J., Kaplan, R.S. (1992)Activity-based systems: measuring the costs of resource usage. Accounting Horizons 6(3):1.Google Scholar
- Downs, A., Rand Corporation. (1967) Inside bureaucracy. Boston: Little, Brown.Google Scholar
- European Commission (2006) DG INFSO, Modinis Programme: “The eGovernment Economics Project – eGEP. Measurement Framework”. http://www.epractice.eu/files/ media/media1299.pdf. Accessed 27 August 2016.
- European Commission (2007). Action programme for reducing administrative burdens in the European Union. http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=URISERV%3Al10101. Accessed 27 August 2016.
- European Commission (2008) Value Proposition for Enterprise Interoperability. http://cordis.europa.eu/fp7/ict/enet/ei-isg_en.html. Accessed 27 August 2016.
- European Commission (2010) European Interoperability Framework (EIF) for European Public Services. http://ec.europa.eu/isa/documents/isa_annex_ii_eif_en.pdf. Accessed 28 August 2016.
- European Commission (2012) Action Programme for Reducing Administrative Burdens in the EU Final Report. http://ec.europa.eu/dgs/secretariat_general/admin_burden/docs/com2012_746_swd_ap_en.pdf. Accessed 28 August 2016.
- European Commission (2015) ISA2 - Developing and sharing IT solutions for less bureaucracy. http://ec.europa.eu/isa/documents/celex_en.pdf.Accessed 28 August 2016.
- European Union (2014) Final Report: Study on e-Government and the Reduction of Administrative Burden. https://ec.europa.eu/digital-sin gle-market/en/news/final-report-study-egovernment-and-reduction-administrative-burden-smart-20120061.Accessed 28 August 2016.
- Government Finance Officers Accosiation (2002) Measuring the Full Cost of Government Service. Best Practice. http://www.gfoa.org/measuring-full-cost-government-service Accessed 25 August 2016.
- Guijarro, L. (2007) Interoperability Frameworks and Enterprise Architectures in E-Government Initiatives in Europe and the United States, Government Information Quarterly 24(1).Google Scholar
- Hadzilias, E. (2005) A Methodology Framework for Calculating the Cost of e-Government Services. In Böhlen M. et al. (eds. TCGOV 2005, LNAI 3416 p 247–256.Google Scholar
- HM Treasury (2014) Supporting public service transformation: cost benefit analysis guidance for local partnerships. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/300214/cost_benefit_analysis_guidance_for_local_partnerships.pdf. Accessed 26 August 2016.
- IDABC (2009) European Interoperability Framework (EIF). http://ec.europa.eu/idabc/servlets/Doc?id=31508. Accessed 25 August 2016.
- International working group on Administrative Burdens (2004) The Standard Cost Model. A framework for defining and quantifying administrative burdens for businesses. http://ec.europa.eu/eurostat/documents/64157/4374310/11-STANDARD-COST-MODEL-DK-SE-NO-BE-UK-NL-2004-EN-1.pdf/e703a6d8-42b8-48c8-bdd9-572ab4484dd3 Accessed 29 August 2016.
- Kaplan, R.S., Cooper, R.J. (1997) Cost & Effect: Using Integrated Cost Systems to Drive Profitability and Performance, Harvard Business School Press, Boston, MA.Google Scholar
- Kehoe, J., Dodson, W., Reeve, R., Plato, G. (1995). Activity-Based Management in Government, Coopers and Lybrand, Arlington, VA. Khan, A.Google Scholar
- Keller, J. (1997) Activity-based costing and management tools in government and the privateGoogle Scholar
- OECD (2007) Organisation for Economic Cooperation and Development: “From Red Tape to Smart Tape. Administrative Simplification in OECD Countries”, OECD publications.Google Scholar
- OECD (2011) “Presentation: The SCM – main issues, advantages and challenges of quantification of administrative costs”, Regulatory Policy Division, Directorate for Public Governance and Territorial Development – OECD.Google Scholar
- OMG (2006) Business Process Modelling Notation (BPMN) Specification, Available at: http://www.bpmn.org/Documents/OMG%20Final%20Adopted%20BPMN%201-%20Spec%2006-02-1.pdf.
- Paulin, A. (2014). Through liquid democracy to sustainable non-bureaucratic government. In Proc. Int. Conf. for E-Democracy and Open Government (pp. 205–217).Google Scholar
- Riegg C.ellini, S., & Edwin KeeK., J. (2015). Cost-Effectiveness and Cost-Benefit Analysis Handbook of Practical Program Evaluation (pp. 636–672): John Wiley & Sons, Inc.Google Scholar
- Scholl, H. J. (2005) Interoperability in e-government: More than just smart middleware. In: Proceedings of the 38th Hawaii International Conference on System Sciences (HICSS-38), Big Island, Hawaii, 3–6 January 2005.Google Scholar
- Schrage, M. (2009) Interoperability: The Great Enabler, in Financial Times, Friday 6th February 2009.Google Scholar
- SCM Network (2006) The Standard International Cost Model Network Manual, Measuring and reducing administrative burdens for businesses. http://www.oecd.org/gov/regulatory-policy/34227698.pdf. Accessed 27 August 2016.
- Scottish Government Social Research (2010) Using the Standard Cost Model to Measure Administrative Burden: a Pilot Using Scotland’s Environmental and Rural Services (SEARS) as a Case Study. Halcrow Group Limited.Google Scholar
- Searcy, D. L. (2004) Using Activity-Based Costing to Assess Channel/customer Profitability. Management Accounting Quarterly 5(2):51.Google Scholar
- Weiss, B. (1997) Activity-based costing and management: Issues and practices in local government. Chicago, Ill: Government Finance Officers Association.Google Scholar
- Young, R. D. (2005) On Cost Analysis Comparisons: Government In-house Provision versus Contracting Out. USC, Institute for Public Service and Policy Research.Google Scholar