egovernment services would yield up to $50 bn annual savings for Governments globally by 2020

Transcription

1 egovernment services would yield up to $50 bn annual savings or Governments globally by 2020 while increasing convenience, trust and citizen satisaction Secure Identity Alliance November 2013

2 Agenda Current state o play Quantiication o savings Additional beneits Vision Roadmap 1

3 Public services with large incremental potential through digitization and trusted digital identity Evolutionary path o digital identity value creation I Creating basic digital product experience Digitization Basic digital identity usage or secure authentication II Leveraging personal data internally Internal enhancement Usage data or R&D, delivery optimization, etc. III Tapping data ecosystem opportunities External applications Sharing data with third parties in both directions Digital identity intensity Source: SIA; Liberty Global and BCG "The Value o Our Digital Identity" (2012) 2

4 Expansion o online government services would be very well received among citizens Desired uture importance % wanting to do more digitally 45 Health Care Providers Government Services Super markets Investments Media Retail Digital satisaction is relatively low, yet pent-up demand is considerable Real Estate Telco & Cable Insurance Automobiles Both satisaction and demand or more are low Electricity, Gas, Water Airlines Hotels Apparel Retail Electronics Retail Digital satisaction is high but demand or more is limited Online Merchants Personal Banking Digital satisaction is already high but consumers want to do even more Retail Finance Utilities Travel Other sectors Relative satisaction score 1 Digital satisaction 1. Satisaction score based on respondents allocating 100 utility "points" across segments based on their perceived digital satisaction Source: SIA; BCG Digital Satisaction Survey, n=3,135, March

5 Examples governments are actively pushing egov improvements with digital service delivery Source: SIA; BCG analysis 4

6 Agenda Current state o play Quantiication o savings Additional beneits Vision Roadmap 5

7 Global share o digital s ~30% in 2020, yielding ~$30-50B annual savings Number o digital s 1 (B) Saving public admin. vs ($B) Time saving citizens vs (B h) 66 78B Per citizen aected 2 (#) $29 54B Per citizen aected 2 (#) 21-29B h Arica Oceania Middle East Asia Europe Americas 21 B Arica Oceania Middle East Asia Europe Americas $0 $30 $3 $2 $18 $15 Arica Oceania Middle East Asia Europe Americas ~65% time reduction per digitized % o s ~10% ~30% 2020 savings (vs. 2011) 2020 savings (vs. 2011) Note: Savings measured vs Government with citizens interactions (excludes businesses) 2. Person living in country with digitization eort Source: SIA; BCG analysis; Economist Intelligence Unit; UN egovernment survey

8 egovernment yields $30 50B annual savings by 2020 enabled by trusted digital identity Annual egovernment savings by 2020 ($B) Europe 2 $18B $8B Eastern Europe 3 $2B $0.4B North America $19B $13B Middle East $2B Asia $10B $6B South America 1 $1B $0.1B $0.5B Arica $0.2B $0.1B Oceania $1.5B $0.7B Annual savings < $1B $1 2B $2 10B $10 20B Note: Savings measured vs. 2011, include interactions between government and citizens (excluding businesses) 1. South America, Central America, Caribbean 2. Western Europe, Central Europe, Northern/Southern Europe 3. Eastern Europe incl. Russia Source: SIA; BCG analysis; Economist Intelligence Unit; UN egovernment survey Savings potential Minimum expected savings 7

9 Market model developed to quantiy the potential administrative savings due to egov No. o total government s No. o s in re. countries Population adjustment No. o digitalized s Reerence digital share 2011 Digital share p.a. Relative egov readiness Cost savings p.a. country A Digital share growth rate Cost savings p.a. (worldwide/ regional) + Cost savings p.a. country Cost delta analog vs. digital per - Cost per analog p.a. Cost per digital (constant) Analog cost in reerence countries GDP adjustment Inlation actor Source: SIA; BCG analysis 8

10 Cost savings p.a. worldwide/regional) Cost savings p.a. Country A Cost savings p.a. Country # o digitalized s Cost delta analog vs. digital per # o total government s Digital share p.a. Analog cost per Digital cost per (constant) # o s in reerence countries Population adjustment Reerence digital share 2011 egov index adjustment Digital share growth rate Analog cost in reerence countries GDP adjustment Inlation actor Backup Cost per analog + - Variable analog cost o $3.30 to Variable cost per analog $4.30 in reerence countries 1 extrapolated with GDP Cost per analog in reerence countries 1 ($) $ Analog cost $ Fixed analog cost $ Variable analog cost Calculations based on range o analog process cost in reerence countries 1 Only variable cost part (assumed to be 60%) used or savings calculation, as ixed cost cannot be reduced easily Analog cost is mainly labor cost, thereore can be extrapolated with GDP Analog process cost per country calculated based on scaling o GDP per capita or base year 2011 GDP per capita o country compared to GDP per capita o reerence sample Analog process cost increases over time based on projected CAGR o respective GDP 1. Reerence sample includes a set o ive countries with data available publicly or rom BCG experience Source: SIA; BCG analysis; Economist Intelligence Unit 9

11 Cost savings p.a. worldwide/regional) Cost savings p.a. Country A Cost savings p.a. Country # o digitalized s Cost delta analog vs. digital per # o total government s Digital share p.a. Analog cost per Digital cost per (constant) # o s in reerence countries Population adjustment Reerence digital share 2011 egov index adjustment Digital share growth rate Analog cost in reerence countries GDP adjustment Inlation actor Backup Cost delta analog vs. digital + - Resulting saving per in re. countries o $2.80 to $3.50 Cost saving per digitized in reerence countries ($) $ Variable analog cost $ Variable digital cost $ Cost saving per Constant digital cost compared to increasing analog cost Digital cost based on reerence countries Digital cost mainly comprised o IT and highly skilled engineer labor, thereore assumed to be equal or all countries Digital kept constant at $ over time as inlation (energy, labor part) balances out with price decrease in hardware Digital cost assumed to be 100% variable (e.g., through cloud computing) Analog cost increases as shown on previous slide Cost savings thus vary by country chart on let only shows reerence countries Source: SIA; BCG analysis; Economist Intelligence Unit 10

12 Cost savings p.a. worldwide/regional) Cost savings p.a. Country A Cost savings p.a. Country # o digitalized s Cost delta analog vs. digital per # o total government s Digital share p.a. Analog cost per Digital cost per (constant) # o s in reerence countries Population adjustment Reerence digital share 2011 egov index adjustment Digital share growth rate Analog cost in reerence countries GDP adjustment Inlation actor Backup Total number o government s per country + - Tot. interactions govt. with citizens 213B Extrapolated global volume 2011 Arica Oceania Middle East Asia Europe Americas Areas o interaction govt. with citizens 100% 3% 4% 8% 12% 16% 28% 28% Approximate split by topic in reerence countries Other Inormation Registrations Beneits/Various Service Inrastructure Tax Transaction volume calculated by extrapolating with population Transactions include all interactions with government authorities (tax collection, advice, registrations,...) Constant number o s per capita over time or all countries based on reerence sample Number o total s per country calculated based on population scaling Population o country compared to reerence sample (2011 values) Reverse eect o digitization included in model Number o (digital) s rises due to increased convenience 10% o digitization uptake is added on top o digital volume This causes a (small) negative eect on digitization savings Source: SIA; BCG analysis; Economist Intelligence Unit 11

13 Cost savings p.a. worldwide/regional) Cost savings p.a. Country A Cost savings p.a. Country # o digitalized s Cost delta analog vs. digital per # o total government s Digital share p.a. Analog cost per Digital cost per (constant) # o s in reerence countries Population adjustment Reerence digital share 2011 egov index adjustment Digital share growth rate Analog cost in reerence countries GDP adjustment Inlation actor Backup Digitization degree in base year + - S-curve unction approximates the 2011 digitization share per country Share o digital s in base year 2011 (%) 80% 60% 40% 20% Function Reerence countries Very low egov index results in disproportionately low scaling Share o digital s calculated via S-curve model Baseline used rom reerence countries Classiication o s into digital and analog s Internet, , SMS, electronic transers categorized as "digital" Onsite visits and phone calls (call center or automated/interactive system) designated as "analog UN egovernment "Readiness Index" used to compare countries to reerences S-curve scaling model used to calculate the number o digital s worldwide 0% UN egovernment Readiness Index Source: SIA; BCG analysis; UN egovernment survey

14 Cost savings p.a. worldwide/regional) Cost savings p.a. Country A Cost savings p.a. Country # o digitalized s Cost delta analog vs. digital per # o total government s Digital share p.a. Analog cost per Digital cost per (constant) # o s in reerence countries Population adjustment Reerence digital share 2011 egov index adjustment Digital share growth rate Analog cost in reerence countries GDP adjustment Inlation actor Backup Digitization growth curve until Number o digital government/citizen s worldwide (B) Worldwide digital s 2 grow to ~67B (30%) in Digitization per country based on egov index and clustering method Countries' growth rates o digitized s based on increase o egov index rom 2008 to 2012 plus manual adjustments 1 Digitization capped at 80% o s (some s cannot be digitalized) Countries clustered into categories with corresponding digitization start year based on expected local digitization uptake Level o administrative sophistication Economic outlook and stability Size o country Desire/need to control Cultural eatures BCG experience % o s ~10% ~20% ~30% Base case Model range 1. Manual adjustments made based on BCG experience 2. Government with citizens interactions (excludes businesses) Source: SIA; BCG analysis; Economist Intelligence Unit; UN egovernment survey

15 Cost savings p.a. worldwide/regional) Cost savings p.a. Country A Cost savings p.a. Country # o digitalized s Cost delta analog vs. digital per # o total government s Digital share p.a. Analog cost per Digital cost per (constant) # o s in reerence countries Population adjustment Reerence digital share 2011 egov index adjustment Digital share growth rate Analog cost in reerence countries GDP adjustment Inlation actor Backup Global egov cost savings vs Global annually recurring savings per year vs (B$) Annual savings 1 by 2020 due to egov between $29B and $54B Savings calculated based on cost reduction Savings calculated based on dierence between digital- and analog cost, multiplied by number o digitized s Reverse eect: Number o (digital) s also increases due to improved convenience o interacting with government 10% o digitization uptake is added on top o digital volume Valued with respective cost per digital at ~ $1B globally in Base case Model range 1. Compared to 2011 Source: SIA; BCG analysis; Economist Intelligence Unit; UN egovernment survey

16 Model also applied to quantiy time saving potential or citizens due to egov No. o digitalized s x No. o total govern-ment s Population adjustment No. o s in re. countries Reerence digital share 2011 Digital share p.a. Relative egov readiness Time savings p.a. country A Digital share growth rate Time savings p.a. (worldwide/ regional) + Time savings p.a. country Cost delta analog vs. digital per 15

17 Backup Time savings p.a. worldwide/regional) Time savings p.a. Country A Time savings p.a. Country # o digitalized s Time saving per Digital share p.a. Reerence digital share 2011 egov index adjustment Digital share growth rate Estimated time savings worldwide + x Citizens save transport and waiting time or each digitized Global annual time savings o 21-29B hours due to digitization o s ~ 15 min 21-29B h Analog ~ 15 min ~ 45 min Arica Oceania Middle East ~ 15 min -30min (-67%) Asia 18 Europe 4 Digital ~ 15 min Americas savings (vs. 2011) Source: SIA; BCG analysis; Economist Intelligence Unit; UN egovernment survey

18 Agenda Current state o play Quantiication o savings Additional beneits Vision Roadmap 17

19 There are substantial beneits o a trusted digital identity beyond the quantiied potential Beneits or citizens Beneits or governments Increased convenience services available 24/7 rom everywhere Faster processing lead times Increased transparency o processes Improved security o s Monetize by selling e-documents to private organizations Enhance growth o digital economy by educating citizens and introducing a trusted digital identity as key enabler Higher process quality and citizen satisaction Improved data basis or decision making through detailed data Source: SIA; BCG analysis 18

20 Governments create digital economy value by introducing a trusted digital identity ramework Digital identity sectors EU-27: Digital identity value per sector (B$) Frequency o trusted digital identity usage Public sector 1 Public services/health Manuacturing industries 2 Traditional production 95 3 Retail 53 Services industries 4 Financial services Telco and media 31 6 Web 2.0 communities 53 Internet industry 7 ecommerce Ino/ entertainment Combined value or organizations and consumers in EU Large potential in public sector due to relatively low degree o digitization today Source: SIA; Liberty Global and BCG "The Value o Our Digital Identity" (2012) 19

21 Backup Governments create digital economy value by introducing a trusted digital identity ramework Public sector Digital identity sectors 1 Public services/health Exemplary use cases or digital identity system Sel-service, automation, personalized medicine, tax collection, digital signature Frequency o trusted digital identity usage Manuacturing industries 2 Traditional production Personalized products, consumer insight, subscription-based services 3 Retail Loyalty programs, marketing, service enhancements Services industries 4 Financial services 1 1 Automization, personalized products, risk management, secure 5 Telco and media Personalized services, monetization o consumer insight, marketing, automation 6 Web 2.0 communities Service enhancements, monetization o user-generated content, marketing Internet industry 7 ecommerce Secure, monetizing consumer insight, marketing, raud prevention 8 Ino/ entertainment Personalized products, monetization o consumer insight, marketing Source: SIA; Liberty Global and BCG "The Value o Our Digital Identity" (2012) 20

22 Agenda Current state o play Quantiication o savings Additional beneits Vision Roadmap 21

23 Guiding principles or digital identity value creation Privacy Provide options or control regarding data sharing Transparency Take accountability or a trusted low o data Responsibility Increase data security in order to saeguard digital identity Beneits Communicate beneits and engage users or sustainable data usage Source: SIA; Liberty Global and BCG "The Value o Our Digital Identity" (2012) 22

24 ... and how they apply or trusted identiication solutions Implications or trusted digital identity Privacy "Privacy by design" Dashboard that allows citizens to change usage rights and to deine standard proiles or data usage Transparency Organizations using the system have to comply to a codex or how they treat and use personal data Any misuse will also impact secure identity providers' reputation Responsibility Highest degree o protection incl. the processes o organizations Trace misuse and hold oenders accountable Beneits Communication o the secure identiication solution ocuses on enabled use cases rather than product eatures 23 Source: SIA; Liberty Global and BCG "The Value o Our Digital Identity" (2012)

25 Vision 2020: Trusted digital identity is a key enabler o everyday lie 8 Maintain personal inormation Update central govt. database with new home address Communicate securely 1 Use secure digital mailbox or communication with government 7 6 Digitally sign contract Sign contract online using trusted digital identity Receive entitlement Get immediate cash reduction at supermarket checkout Trusted digital identity as center-piece o everyday lie Consult physician online 2 Sign into secure video chat to remotely consult a physician Vote online 3 Electronically vote in city mayor election 5 Use as mobile key Unlock car rom carsharing pool using trusted digital identity on mobile device Edit tax report online 4 View tax report on tablet and send clariying questions Source: SIA; BCG analysis 24

26 Framework to discuss trusted digital identity use cases and product evolution towards 2020 vision Future Physical ID, no online access ID derivation and/or wireless solutions ID technology Single-actor authentication 2 Mostly card-reader based solutions Two-actor authentication Context-sensitive multiactor authentication Authentication Limited scope o services available Broad service range across jurisdictions and sectors Terms o service Trust ramework "Take it or leave it" User has choice and transparency Government as single ID supplier Mostly market-based system1 with multiple ID suppliers Applicability and interoperability Accountability Privacy and transparency Supply o IDs Status quo case 1. Some countries (e.g., with small population and already established egov inrastructure) may still opt or a government supply model Source: SIA; BCG analysis Future case 25

27 Disadvantages Advantages Description Backup Future ID technology will be based on smartcards and ID derivation method 1 ID technology Smartcard-based eid eid derivation Smartcard-based eid securely stores personal ID inormation Devices (e.g., smartphones) access eid card via standard interace (e.g., NFC) Authentication on device via available methods (see part 2 o ramework) Secure storage o personal ID on smartcard Direct control over personal identity and data "Root ID" held in secure document Additional IDs derived rom root ID or end user devices and stored either locally (phone SIM, TEE 1, etc.) or in cloud Authentication on device via available methods (see part 2 o ramework) Maximum mobility Inherent compatibility across devices Requires standardized contactless communication interace (NFC, lowpower Bluetooth, or other) Lower lexibility compared to option 2 Highest convenience level can be achieved through cloud-based storage o eids, which may be less secure than local storage in a secure document 1. Trusted Execution Environment Source: SIA; BCG analysis 26

28 Backup Context-sensitive multi-actor ID breaks the compromise between convenience and security 2 Authentication Future ID methods break today's compromise o security vs. convenience Future ID optimizes security, convenience, and cost through context awareness Convenience Future methods break this compromise and oer convenient authentication at all security levels Identiication method depends on device type and eatures Biometric sensor (e.g., ingerprint, ace, voice) Non-biometric (e.g., PIN, TAN 1, password) Traditionally, convenience decreases with added security as authentication becomes more cumbersome Security Future Today Identiication method depends on security requirements o use case Simple authentication or lowstake applications (e.g., small payments) Multi-actor authentication or high stake applications (e.g., access health records) Identiication method is economical Most economical ID solution is chosen or particular situation and application Convenience and security can go hand in hand in next-generation identiication methods 1. Transaction Authentication Number Source: SIA; BCG analysis 27

29 Backup Today, trusted digital identities oten limited to ew use cases, preventing a broader adoption 3 Applicability and interoperability Today: Mostly non-compatible systems, each requiring separate access ID Future: Fully interoperable ecosystem, accessible by a trusted digital identity Multiple jurisdictions Public Public authorities Public authorities Social security sector Social Registry security Social Registry Taxes security Registry Taxes Automobile Taxes Automobile Visa Automobile Visa Buildings Visa Buildings Police Buildings Police Health Police Health Health Public Public Public Sector Sector sector Private sector 1 Secure, standardized data exchange and identity ederation 2 Trusted digital identity Citizens Private sector Public services/health Traditional production Retail Financial service Telco and media Web 2.0 communities ecommerce Ino/entertainment Citizens Multiple IDs one per service 1 2 Data exchange allows parties to share inormation in a convenient, yet secure and transparent way Increases data richness or decision making Reduces volume o (manual) data requests Facilitates inormation maintenance, as each type o inormation is stored in one database only Single sign-in enabled by identity ederation Trusted digital identity can be used by citizens to securely access public and private services Source: SIA; BCG analysis 28

30 Backup Trust rameworks enable widespread realization o beneits 4 Accountability What is a trust ramework? Technically... A set o policies, standards, taxonomy and inrastructure that acilitates and enables trust and conidence between members Source: SIA; BCG analysis Trust ramework Governance Agreed standards Business process, technical capabilities Members/participants in the trust ramework... but more importantly... A way to unlock better, harmonised service delivery across government (and beyond) to better respond to the needs o customers A way to take advantage o the opportunities o the emerging digital economy... and practically... Enhanced discoverability Summary digital credential "Tell us once" Inormation re-use/pre-illing Streamlined identity and data veriication Central location or ino. and communication (e.g., digital inboxes, vaults) 29

31 Backup Privacy and transparency are important pillars o a successul egov implementation 5 Privacy and transparency Inormation richness and degree o sharing correlate with egov useulness Relentless ocus on transparency and user control required or citizen trust Richness o available data determines type and quality o applications Use case easibility depends on certain set o data Quality and automation o decision making increases with data richness Data sharing enables eiciency gains Sharing enables each set o data to be stored in one place only, without duplicates Maintenance o data is acilitated Data on average is more accurate Sharing reduces data requests as system eeds itsel There are substantial beneits in generating citizen trust in the system Implementation success based on a positive perception o beneit-risk ratio Speed o digitization depends on public acceptance Transparency User control Independent audits Make data usage highly transparent Type o inormation stored and rationale or storage Access rights and access log Legal ramework or data use Give users degree o control Make trade-os regarding service availability explicit Give user choice to surrender more data or non-core services Generate credibility via regular audits Help discover and eliminate system weaknesses Additional credibility rom third-party assessment Source: SIA; BCG analysis 30

32 Risks Beneits Backup e-documents can be supplied by governments and/or private organizations 6 Supply o IDs Starting point or most countries Many countries will move to a mixed supply in the medium- to long-term uture Some countries may opt or a ull market-based solution Government as single supplier o eids eid supply by government and private organizations eid supply only by private organizations Highest trust level in e-documents Direct and ull control Leverage o existing govt. inrastructure possible Could lead to increased innovation Could save cost i designed well Could lead to increased innovation Could save cost i designed well Potentially less cost eective Potentially less innovative Need to ensure suicient trust Need to manage compatibility Increased coordination eort Need to actively ensure trust Risk o e-document prolieration and resulting compatibility issues Suicient market size required to make it attractive or companies Choice o e-document supply model depends on local conditions and preerences Source: SIA; BCG analysis 31

33 Agenda Current state o play Quantiication o savings Additional beneits Vision Roadmap 32

34 Examples o successul egov implementations pave the way or other countries Examples: UAE, South Korea, Estonia UAE South Korea Estonia Highlights Single entry Interoperable strategy Mobile strategy Business collab. Data exchange E-vote Open Data eparticipation Legal innovation Process innovation Everyday use Transparency Success story Focused egovernment eort since 2001, today one o the most advanced egovernments Detailed egovernment strategy outlining priorities until 2021 ~ 90% o govt. interactions can be perormed online today Improved data use eliminated ~ 70% o civil document requests ~ 400 government services ully integrated, more to ollow Great acceptance by the public Cumulative worldwide egov experience to guide a successul implementation in other countries Source: SIA; BCG analysis; governments o UAE, South Korea and Estonia 33

35 Examples o successul egov implementations pave the way or other countries Examples: UAE, Belgium, Estonia UAE South Belgium Korea Estonia Highlights Single entry Interoperable strategy Promotion Child protection Data exchange E-vote Open Data eparticipation Signature service Wide eid acceptance Everyday use Transparency Success story Focused egovernment eort since 2001, today one o the most advanced egovernments Detailed egovernment strategy outlining priorities until 2021 More than 600 services support eid Eective public communication Example o successul early egov adopter ~ 400 government services ully integrated, more to ollow Great acceptance by the public Cumulative worldwide egov experience to guide a successul implementation in other countries Source: SIA; BCG analysis; governments o UAE, Belgium and Estonia 34

36 Successul egov implementations ollow ive key principles 1 2 Beneits and communication Prioritize service digitization by expected beneit Explicitly communicate beneits to relevant parties Use perormance-based program mgmt. with clear goals, objectives, shortand long-term plans and deadlines Legal and process innovation View egov introduction as an administrative step change, creating opportunities or large-scale change Adjust government processes to relect new reality o digital environment Create ast track or passing egov-related laws in order to keep momentum 5 Technology and inrastructure Ensure availability o trusted digital identity technology Enorce technology and data standards or interoperability Ensure wide availability o Internet in suicient quality or egov access Incentivize use o egov solutions Central steering and commitment Showcase successul examples Chie Inormation Oicer with end-to-end 3 egov responsibility 4 Central egov agency or day-to-day project management Transparency Set up portal website or citizens to view their data and its use Regularly report on digitization eort, detailing successes, and additional improvement opportunities Conduct regular third-party audits to veriy eectiveness and security Source: SIA; BCG experience 35

37 Capabilities relevant or egov services determined via key citizen journeys in 2020 Implementation mindset based on key principles 1 Beneits and communication Forward-looking, customercentric Open or citizens' eedback High speed o s and service 2 Technology and inrastructure Standardization Ecosystem integration Accessibility 3 Legal and process innovation Innovative and integrated Focus on high automation 4 Transparency Privacy by design 5 Central steering and commitment Re-innovation o citizen journeys Citizen journey Entitlements Citizen journey Finding inormation Citizen journey Permissions/ licences Citizen journey... Resulting requirements in egov capabilities Services redesigned or digital not merely paper process online Citizen-centric design around how people use the service, not how government is structured Largely instant, automated processing o common interactions Detailed tracking o service usage Improvements based on input rom citizens and recorded usage data Learning eort to prevent unnecessary claims and to detect raud Source: SIA; BCG experience

38 Three-step process to develop digital transormation roadmap Example Determine itness gaps along egov capability dimensions List o potential initiatives to close itness gaps Sequence and prioritize initiatives in roadmap Digital marketing Intuitive, on-the-go access Channel consistency Establish process tracking mechanisms to oer insight into progress o request handling, and integrate with outsourced processes Establish sel-service portals with standardized back end and customizable ront end, and roll out across organization 2013 '14 '15 '16 Designed or user Digital by deault Process excellence Componentized product model Break down processes into standard, modular, conigurable components Fully digitize and automate all endto-end processes, typically supported by an ERP system Eective innovation process Fully integrated digital services Real-time insight rom rich, dynamic data Flexible inrastructure and architecture Digital security and privacy Cross-unctional collaboration Deine data processing strategy and derive roadmap or implementation o platorm Arrange data provisioning with partners Develop a holistic view on areas in which analytical insight could be useul and should be applied Initiatives supported by business cases and time rames see next slide or example Steering o a lexible organization Current status Status ater implementing current programs Aspired level Source: SIA; BCG experience 37

39 Backup Citizen journey entitlement process in 2020 Example Discover need/ eligibility Find service Apply or service Decision made Set up ongoing/ next steps Maria gets a baby Triggered by Maria updating her amily details, she receives notice that she should be eligible or child support Maria logs into the single online portal where she has already set up her account and proile She changes her amily status and is directed to the appropriate orm or requesting the entitlement The application is prepopulated with her inormation She enters new inormation and sends the application Conirmation o the application is sent to her secure government inbox, i the case is simple, it will be automatically and instantly approved In more complicated cases, it will be checked by an oicer In either case Maria is sent conirmation within one business day Payments are automatically set up to Maria's deault bank account Maria is inormed o the ongoing requirements to continue to receive the payment Any required appointments etc. are made automatically in her calendar The system automatically suggests other services (e.g., inormation about child care acilities) Assumes a high degree o back-end standardization, automation, and integration Source: SIA; BCG experience 38

40 Backup Business cases to support each initiative Example: developing ully automated customer sel-service portals Example Description Development o sel-service portals in order to reduce number o customer requests handled via customer service center and to increase speed o service Requires a one-time design and implementation o new, ully automated back end architecture to which multiple ront-end layers can connect and interact Additionally, ongoing development costs to design portals or new devices and touch points Timerame 3-month project to design new back-end architecture 3-month project to design customer sel-service portals 9-month project to implement design and develop portals Cost and beneits Annual cost saved $6.00M One-time cost, annualized over 5 years $0.80M Annual operational cost $0.75M Assumed cost Design o a new architecture or back end Design o new customer sel-service portals Implementation o design One-time cost Assumed beneits $0.50M $0.50M $3.00M $4.00M Personnel cost or ongoing development team $100K 5 Annual hardware and maintenance cost $0.25M Annual operational cost Annual cost saved $6.00M $6.00 M/year x Number o customer service requests prevented 240K x $0.75M Yearly number o customer service requests % o requests that will be handled through sel-service 300K 80% Annual economic proit $4.45M In addition, aster speed o service and lower potential or errors lead to higher customer satisaction, higher customer advocacy Cost per customer service request $25 Source: SIA; BCG experience 39