Embed Size (px)
Citation preview
PPPs in PracticeKey Success Factors
ICT Sector Week
Chris NeffVice President of Marketing
March 28, 2011
www.nicusa.com
Overview
NIC’s PPP approach Solutions provided Business models Governance & organization structures Risk management Supporting PPP growth
2
NIC’s PPP Approach
About NIC Manage eGovernment services in 24 states Serve +3,000 federal, state & local government agencies 19 years of delivery through flexible PPP models
Pilot-to-enterprise Start small & grow Expand through voluntary success vs. mandates
Key fundamentals Government retains all controls – process, data, financial
management Self-sustaining model supported by transaction fees Reinvestment focus Partnership – all sides need to benefit
3
PPP Partners
4
Scope of Solutions
G2C / G2B / G2G Official government websites Digital government services Secure payment processing
Emphasis on self-service solutions Constituent-facing services Adding value to existing solutions & adding new ones Generating wins for government partners
+7,500 installed services Aligned by vertical / agency Mobile Point-of-purchase
5
Scope of Solutions
Technology and process neutral Interface with hundreds of legacy backend systems Align with existing processes Focus on creating efficiencies and updating processes as
a result of streamlined operations
End-to-end life cycle Hosting & infrastructure Application development Marketing & promotion Customer service Security Billing & payment processing Enhancements & upgrades
6
Business Model
7 7 7
Self-sustaining model (“self-funded”)Used by the federal government, 24 states, and
several hundred cities & countiesModest per-transaction fees applied to a select
number of servicesEmphasis on business-facing services and
commercially valuable datasetsHigh volume business services create core
revenue stream to support enterprise servicesVast majority of services (+80%) are offered to
constituents at no cost
Business Model
8 8 8
Self-sustaining model (“self-funded”)Key services that support self-sustaining
eGovernment:- corporations filings - professional licensing- trucking/transportation - court case filings- vehicle titles & plates - driver history records- payment processing
Industries value fast access to government and digital adoption does not suffer
Fees set by government based on market research
$0.50 - $3.00 typical range
All agencies benefit – eliminates the have/have not problem
Business Model
9 9 9
Self-sustaining model (“self-funded”)Zero cost solution for governmentSupports long-term growth by eliminating
reliance on the appropriations processMinimal risk when partnering with an
experienced private sector provider
Best practices for decentralized organizations: Focus on key industry verticals Remember that a small fee applied to a high
volume transaction is far better than the reverse
Fixed Cost
Time & Materials
Hybrid
Governance & Organization Structures
10
• Range of governance models to oversee PPPs
• Governing board• Public sector / key agency participation
• Some states include private sector representation from key industries
• Direct report to agency – usually IT or budget / administration office
• Direct report to individual – usually CIO or appointed agency leader
• Key success factors:• Buy-in from the highest possible levels
• Governance empowered to make decisions
• Voluntary agency participation vs. mandates
Some states have one person whose part-time role is eGovernment oversight
Contracts & Operations
11
• Contracting basics
• Umbrella / enterprise contract outlines deliverables
• Based on voluntary agency participation (defined by separate service level agreements for individual projects)
• Flexible design for all agencies (including locals)
• Key elements customized to each government: flow of funds, reporting requirements, legal specifics
• Operating structure• Local subsidiaries established in each market
• 100% dedicated to single government’s operations
• Cloud-based solutions provide enterprise support (payment processing, hosting, CMS)
• Emphasis on local hiring to support economic development
Risk Management
12
• Insurance & indemnity standard – specifics customized to each government
• Financial components also customized
• IP held in escrow and available to government after breakeven is reached (usually 1-2 years)
• Rigid security protocols• Sarbanes-Oxley and PCI DSS compliant operations
• Third party validation (Verizon Business Security Management Program) includes annual on-site assessments
Supporting PPP Growth Build awareness of alternative approaches
Procurement training is essential
Benchmark successful engagements
Pilot project-driven protocol
Provide long-term support during engagements
Take the time to understand the challenges & opportunities
Get broad internal buy-in and executive-level support before issuing a tender
Recognize that PPPs are evolutionary and being first is not easy
13
