Published on January 14, 2009
ONE STOP FRAMEWORK PRESENTATION Business One Stop Briefing January 6, 2009 David Friedline Director eGovernment Solutions TiBA Solutions
Ultimate Stimulus Package Initiative • Increases State Revenue by $10s million annually • Facilitates the creation of thousands of jobs • Drastically reduces state agency cost and effort • Promotes collaboration and increases efficiency across the state enterprise
Small Business start-ups account for 74% of all new jobs.
Small Business Job Creation Engine …the first concern of the consumer is, quot;Will I have a job?quot; And that's why getting the job creation engine going is so important… small businesses are the engine of job creation in this country. Two-thirds of the jobs come from small-business owners. So we have to make it easier for small businesses to form and hire and grow and prosper. Carly Fiorina on Meet the Press 12/14/08
Importance of Business “We must act boldly to “Small business births use the resources we have are the single-largest – and the experience we determinant of growth possess – to maximize the in Gross State Product, potential for job growth employment, and State and investment in Personal Income.” Kentucky.” – Small Business and State Growth: An Econometric Kentucky Governor Investigation, Donald Bruce, John A. Deskins, Brian C. Hill, and Jonathan C. Rork Steve Beshear
Panel Study of Entrepreneurial Dynamics Key Findings: • Approximately 10.1 million US adults attempt to create a new business at any given time, representing 5.6 million potential new businesses. • Start-up participation is as common as getting married or the birth of a baby. In 2005, there were 2.3 million marriages and 4.1 million births in the US. • Entrepreneurship involves adults at all ages: highest - men ages 25 – 34. • Blacks are 50% more likely and Hispanics slightly more likely to engage in start-up activities than whites. • Education and household income significantly predict entrepreneurship, particularly for Blacks & Hispanics.
Business Registration Process
Business Challenges Business Registration can be a complicated & time consuming process: • Dealing with large number of licenses, agencies and departments • Complex processes • Ambiguous criteria • Difficult to determine licenses required and where to obtain • Lack of consolidated user friendly electronic processing • Non-Compliance penalties • Lengthy issuance times
There Has to Be a Better Way. Given that: • Small business creates over 70% of jobs • Conducting business is challenging enough • Compliance with governmental agencies is complex, ambiguous and confusing • Gray market exists of companies not registered with government • Yet “the American Dream” thrives
What Is Business One Stop? Framework that allows businesses to: • Register their business (new or existing) • Obtain and Maintain Licenses, Permits & Registrations (LPRs) • File and Pay business taxes • Communicate with multiple state agencies • Link to helpful business resources
One-Stop Vision Overall Governing Vision: • Provide faster, friendlier, easier, more reliable, and cost effective services to customers. • Create a SINGLE FACE OF GOVERNMENT where state departments and services along with Counties and Municipalities are viewed as an integrated whole, working together to support customers as one organization.
Benefits to Businesses One place. One process. One payment. • 24/7 access to their own virtual workspace • Secure all LPR’s, pay all fees in a single payment from convenience of home or office. • Shorter time to market • Ensured compliance • Less frustration and a more direct path • A better customer experience BOS Streamlines the Entire Business Registration Process
State Technical Challenges Agencies and departments all have unique systems & processes in place resulting in: • Disparate databases/systems • Inconsistent information about a customer (business or individual) • Manual processes • Variety of technologies including legacy systems • Absence of collaboration between agencies and departments.
Benefits to State Business One Stop e-Framework promotes economic development while increasing voluntary compliance AND delivering cutting edge connectivity: • More accurate and consistent data • Improved cross-agency data sharing • Less duplication of information and services • More efficient use of employees • Savings in departmental operating cost • Better and more accurate customer service • Immediate collection of funds • Add-on capability for future applications
Hub and Spoke Efficiency Advantages: • Agencies and applicants do not communicate directly • Rather, each communicates through BOS (hub) • BOS decides how to handle the information • Agencies are not relying on each other for information
A Proven Application Foundation Framework Overview: • Implemented in multiple applications • One Stop Framework enhances Microsoft® Net Framework • Proven solid technology • Standardization reduces cost and time BOS delivers built-in efficiencies by starting with a proven foundation that shortens delivery time.
E-Framework Advantages BOS’s Service Oriented Architecture makes departmental legacy systems interoperable and delivers real time, secure communication with multiple state agencies. Departments: • Do not need to reengineer systems and databases to process BOS data or share authorized information • Maintain the database of record and continue to ensure privacy and security of user data • Remain the business rule owner.
Case Study: South Carolina Business One Stop • To date, over 30,000 businesses have been formed utilizing SCBOS.com • 97.3% of users said they would gladly utilize SCBOS.com again • Significantly cut the application processing time by as much as 50% Developed in collaboration with:
Case Study: South Carolina Business One Stop Economic Impact: Additional Business Days Cost • 18 days * 31,471 businesses • Average in excess of 47 hours to = 566,478 obtain all of the LPRs, necessary to additional business days begin operations. • Equivalent to adding 1522 Savings additional businesses • BOS has reduced this effort by 50% • Saving customers more than $18,489,213 since going live.
Case Study: South Carolina Business One Stop Annual SC Business Births 43,000 Days gained per business 18 Business Adoption (year end 6/30/07) 35% $500.01 Daily Business Revenue Business Revenue Created $116,100,000 3.0x2 Economic Impact Multiplier Additional Gross State Product $348,300,000 4.7%3 Average State Revenue as % GSP Additional Annual Revenue to State = 1. US SBA Statistics 2. University of South Carolina, $16,370,100 Moore School of Business 3. Total State GF Revenue/Gross State Product
Potential Economic Impact $500.004 Annual KY Business Births 42,000 Daily Business Revenue Days gained per business1 10 Business Revenue Created $126,000,000 3.0x3 Business Adoption 60% Economic Impact Multiplier Total New Tax Base $378,000,000 Annual Add’l Business Days 252,000 Average State Tax Rate 5.4% Equivalent New Businesses 900 Additional Annual Revenue to State = New businesses account for 74% of all new job creation2 $20,412,000 1. SC averaged 18 days gained per business 2. Small Business and State Growth: An Econometric Investigation, Donald Bruce, John A. Deskins, Brian C. Hill, and Jonathan C. Rork 3. Palmetto Institute, Darla Moore School of Business, University of SC 4. US SBA statistics 2005.
Case Study: South Carolina Business One Stop Secretary of State Department of Revenue Page 24
Case Study: South Carolina Business One Stop
One Measure of Satisfaction: Independent Survey South Carolina Business One Stop User Satisfaction We asked: Yes 97.3% Would you use SCBOS again? 94.1% Would you recommend SCBOS to others? 97.3% Do you like receiving Renewal Reminders via email? 88.9% Do you like being able to Update Demographics online? 94.2% Do you like having a single login ID for all State Agencies? - Independent survey conducted by the University of South Carolina - Compiled and summarized by Dr. Tom Madden
Business One Stop Survey Quotes from responders - • “I was able to obtain my sales license immediately, at my convenience without having to call anyone or fill out a number of forms.” • “I can access it any day at any time. This is most critical as time is my most valued resource at this time in my business.” • “One stop, including paying taxes and fees!!!”
Our Strategy • Leverage current Legacy System investment • Break the project into manageable phases: – implement framework that supports overall vision – show early success, gain momentum • Start small, add functionally, user bases and other services to meet your goals and budget
Getting Started Our approach: • Readiness Assessment Study – Determine initial agencies, LPR’s, workflow documentation, timeframe and budget • Project Scope – Determine level of implementation (Full Program or Start New Business only)
Only Business One Stop Delivers It All • The most advanced, robust e-framework designed for state governments • A fully customized rollout scaled to the scope and vision of your goals • Turnkey support by the nation’s most experienced IT team in e-government solutions • Superior customer satisfaction rating and functionality
Our goal is to help you start a working version of Business One Stop as soon as possible. CONTACT David Friedline Director of eGovernment Solutions 864.679.3413 Dave.Friedline@TiBASolutions.com
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