Dell Perspectives on E-Government Electronic Services Delivery Conference, Ottawa March 6, 2000 David Toms Mark Tracey Internet will BE your business. NACo 11/99 NACo 11/99 Rule 1: Velocity Time to Purchase Short Internet World Physical World Long Difficult NACo 11/99 Easy Complexity of Purchase Services Efficiency Resolution without onsite dispatch 70% INDUSTRY 27% NACo 11/99 Quality of customer service What Drives E-Loyalty On-time delivery Product representation Shipping & handling Privacy policies Ease of transacting Product selection Product information Navigation and looks Product price NACo 11/99 Source: BizRate.com High Correlation Low Correlation What Drives E-Loyalty Quality of customer service 62% Quality of customer service is a more important driver to repeat online sales than product or price. Product price NACo 11/99 Source: BizRate.com 19% THE CHALLENGE IS CHANGE NACo 11/99 B2B Commerce : Market Size Total U.S. B2B Internet Sales • New Estimate: $1.3 Trillion by 2003 $500 Billion CY’99 •Dell’s B2B Revenue: $ 8 Billion FY’ 00 (est.) •Dell’s B2B Penetration: 1.6 % Source: the Yankee Group, 1999 NACo 11/99 John Winfrey – www.dell.com Acquisition Methods are Changing * Means of Purchasing Technology Products Today Increasing/Decreasing Use in Next 18 Months Increase Same Decrease Don’t Know EDI (5%) Middleware (2%) Intermediaries (24%) Phone / fax / email / mail (69%) EDI Middleware Solutions (eg. Ariba ORMS, Commerce One, Intelisys, etc. 26% 9% Intermediaries (eg. Premier Pages, Ariba.com, etc.) Phone / fax / email 8% / mail NACo 11/99 34% 38% 52% 38% 1% 3% 39% 50% 24% 1% 41% * Approximately 1,200 commercial business users of Premier Pages surveyed via a custom online study by a 3rd party research company. (April, 1999) John Winfrey – www.dell.com 22% 14% Government Transformation Traditional notion “Command and Control” Complex Pattern of Interdependencies collaboration / negotiation / incentives among partners Boundaries Between Government and Business are blurring Citizens expect vastly different performance easy access to information self service cost-effective services high quality NACo 11/99 Agenda The Internet Revolution Opportunities for Government Challenges in Implementation The Payoff NACo 11/99 Internet Revolution A key technology driving business and government today is the internet The internet is revolutionizing the way the people and businesses interact with each other 10 years ago, some of the most talked about managers were Jack Welch of GE and Sam Walton of Wal-mart -- today the headlines are filled with Michael Dell, Jeff Bezos (Amazon), and Steve Case (AOL) NACo 11/99 Internet Revolution It took 38 years for the Telephone to penetrate 30 percent of U.S. Households. Television took 17 Years to reach that Level Personal Computers took 13 Years It has taken the World Wide Web Less than 7 Years to reach 30 percent penetration NACo 11/99 Drivers of Citizen Expectations Convenience -- easy to access information 24-hr access -- not limited by working hours Efficiency -- can go immediately to what they want Real-time information -- accurate, up to the minute The internet economy can allow people to have information at their fingertips According to the US Commerce Dep’t, between 5070million people are on the internet at any given point in a day NACo 11/99 Technology in Government The internet is helping change the role of information technology in government Mainframe data systems Internal MIS Desktops and laptops Gov’t employees Internet Citizens NACo 11/99 Opportunity for Government Government to Citizen Government to Government Business to Government - Government to Business In each area, governments have the opportunity to provide a higher level of service to constituents and to improve the efficiency of internal operations NACo 11/99 Opportunity for Government Government to Citizen -- service delivery over the internet Can provide citizens better access to gov’t information Can increase customer satisfaction Can reduce the cost of transactions and the cost of interaction between people and government Can develop new streams of revenue for gov’t Examples of Gov’t to Citizen: Vehicle Registration Excise tax payment Job Services NACo 11/99 Opportunity for Government Government to Government -- integrated crossagency, cross-county systems Can break down traditional silos and share information across agencies and between counties Can reduce duplication of effort in record-keeping Can reduce amount of incorrect information Assists governments in providing better services for citizens and internal employees Examples of Gov’t to Gov’t: Integrated Criminal Justice Systems Child Welfare NACo 11/99 Opportunity for Government Government to Business - Business to Government Can be a competitive advantage in attracting businesses Ability to access information in real-time Differentiation of services Can streamline the procurement process Providing businesses with resources to pay taxes and file forms on-line can save them money Can give increased access to gov’t information Examples of Gov’t to Business - Business to Gov’t: On-line Tax Filing On-line RFP and Procurement Systems Business Resource Center NACo 11/99 Stages of Development Steps for Government Dell Examples Stage 1 -- Basic infrastructure in place for internet access and networking systems Stage 2 -- Web site with information posted on-line for citizens, businesses, and employees • www.dell.com • On-line product info. Stage 3 -- Interactive websites that allow transactions. Internet as substitution • On-line purchasing • On-line tech. Support • Premier pages Stage 4 -- Seamless integration between government and users NACo 11/99 • Paperless PO Introducing the Value Customer Web Site Within a Premier page you’ll discover three major areas: Valued Customer Communication Your Dell Account team contact information is always within reach Collaboration Powerful Content for your help desk or service provider and help managing your assets throughout the company Commerce Tools and information that makes purchasing Online easy Customization Your Dell Account team can add links to customized information like Dell’s Year 2000 Compliance Statement or link back to your company’s Web Site Branding Given our commitment to his business alliance, we encourage you to add your company’s logo on the sites homepage. NACo 11/99 Introducing the Value Customer Web Site Communication Fast, Easy, Efficient! Now you can have instant contact information about your Dell account team. Phone, email or page Customer Service, Sales Representatives, Account Executives and Technical Support NACo 11/99 Introducing the Value Customer Web Site Collaboration Valued Customer The Service and Support is a great online resource for current in depth information designed to assist your internal help desk with Dell Products •Packed with over 45,000 items of detailed technical information, it is designed to help your company save significant amounts of time and associated costs. NACo 11/99 Introducing the Value Customer Web Site Commerce Valued Customer Premier Pages give you fast and easy access to Dell products for online quotations and ordering. Based on your Dell contract, you can have access to your: •Corporate approved Dell products list •Online Catalogue of products and options •Dell’s Customer Employee Purchase Plan (Products for your employees to purchase for home) NACo 11/99 Online Purchasing Your Company’s Standard Product Configurations, options and prices online! Valued Customer NACo 11/99 An easy way to communicate standards throughout the organization! Online Purchasing Your company’s discounted product catalogue •Build and order Dell Systems online •Builds systems to you specifications •Calculates the contracted price Helps streamline the purchasing process! NACo 11/99 Online Purchasing Employee Purchase Program •Special discounts on great Dell home and business systems for employees of Premier Page customers. •Buy Online or use the Toll Free number. A great benefit program to offer to your employees Ideal for companies moving to telecommuting and flexible work environments NACo 11/99 Order Status Order Status Detailed Information on all orders from pending production to invoiced status. Includes PO#, order and SKU#s, Description Quantity, Invoice and Ship dates, Ship Code and Way Bill. Find out where your new purchase within it’s production or delivery cycle - anytime! Valued Customer NACo 11/99 Purchase History Reports Your company’s entire order history, anytime you need it! Premier pages provide access to various management reports based on your corporate purchases. Updated weekly or monthly, reports are archived on a 12month rolling basis NACo 11/99 Technical Support Features Technical Support Features Rapid feedback •Email •Web Talk Forum •Dell Tech Fax Fast Technical Support •Online File library •Vendor links •R&D Breakthroughs Trouble Shooting Solutions •Easy to use self diagnostic tools 24 Hour Service •Express Service Code •Premier Access Programs •Service parts order system NACo 11/99 Dell’s Architecture NACo 11/99 John Winfrey – www.dell.com Dell’s Integration Strategy Customer Dell ERP XML Market Places Tow er box Other Back Office Systems i.e. Asset Mgmt or Help Desk Integration Dell Customer’s Partner procurement Server solution “upgrade” from Dell NACo 11/99 John Winfrey – www.dell.com Tow er box B2B Direct Tow er box Dell Store Dell’s Business Community linking Premier Pages NACo 11/99 John Winfrey – www.dell.com Challenges of e-government Security Privacy and Policies Funding Access Infrastructure Education Enablers Legislation NACo 11/99 IT Resources Efficiency of Deployment Policies Global Communication eliminated Time & Place Digital Information vs information and format Governmental Entities are limited by Structure (Industrial Age) Public Policies Lag behind Technological evolution “What is Technically possible may not be organizationally feasible or socially or politically desirable” Desining the Digital Government for the 21st Century NACo 11/99 Access -- Narrowing the Divide Only 29% of households will have internet access in 2000 with 56% expected to have access by 2003 (Forrester Research report “From Dial-Up to Broadband,” April 1999) Bringing resources closer to citizens Kiosks Access in libraries and schools Computer resource centers -- social service areas Phone/on-line systems Multiple payment options NACo 11/99 The Payoff The paperless purchase order system from Dell saves the Purchasing Director of the state of Arkansas two hours on every purchase order executed over the Internet The Arizona [phone and on-line vehicle registration] system, ServiceArizona, could possibly save the Motor Vehicle Department $1.25 million annually The state’s cost is approximately $6.50 for a face-to-face transaction vs. approximately $1.50 for a ServiceArizona transaction Alaska’s traditional DMV registration renewal costs the state around $7.50 per transaction to handle the paperwork while the on-line procedure is estimated to cost less than $1.00 per transaction NACo 11/99 THE FUTURE Continued and Dramatic Change in the Workplace and in our Daily Lives brought on in Part by the Development of Information Technology Information Technology Offers Opportunities to Achieve New Levels of Cost -Effective Solutions and Services to Citizens and Customers. Technology and Business Trends will Continue to be Driving Factors in the Transformation of Government and EGovernance. NACo 11/99 B2B Commerce : Market Landscape High EDI Cost to Customer Middleware Intermediaries Low Manual / Paper Easy Hard Implementation for Customer NACo 11/99 John Winfrey – www.dell.com Business Community Architecture NACo 11/99 John Winfrey – www.dell.com What this means to Dell There will not be one standard for connectivity Customers will drive the standards Dell must work with Different users will communicate with suppliers based on different business models The virtual supply chain will become a reality NACo 11/99 John Winfrey – www.dell.com Integrating the Supply Chain Fast Tech Fast Tech NACo 11/99 John Winfrey – www.dell.com