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Can e-government solutions enhance the work in
municipalities? Empirical evidence from case Lupapiste
Jari Jussila1, Timo Lehtonen2, Virpi Sillanpää1, Nina Helander1 & Julius Kallio3
Tampere University of Technology, Solita & University of Tampere
16.10.2016 2
Lupapiste service development started as a part of Action Programme on eServices and eDemocracy (SADe programme) set by the Ministry of Finance in Finland
Case Lupapiste “Permission Desk”
Aim of the study: Internal Effectiveness & Efficiency (IEEE) and Enhancement of Knowledge Work
16.10.2016 3
B2G
G2B
G2B
G2CG2G
IEEE
Municipality
Other municipalities
Citizens
Businesses
Solita e-Government
service provider
Source: see Scholl et al. (2009) E-Commerce and e-Government: How Do They Compare? What Can They Learn From Each Other?
Investigated Metrics• Throughput time is often used as an indicator of
value, where the quicker it goes the better is the result, this is not, however, always the case in services, as humans have also indirect needs.
• Flow efficiency has been defined as the sum of value-adding activities in relation to the throughput time. In measuring flow efficiency, the needs dictate what the value-adding activities are and therefore what flow efficiency is.
16.10.2016 4
Source: Modig, N. and Åhlström, P. 2012. This is lean: Resolving the efficiency paradox. Rheologica.
Research Approach• Data from Lupapiste • Interviews
16.10.2016 5
Municipality Roles of interviewees Number of interviews
Hyvinkää Building inspectorSecretary, customer service
11
Kuopio Engineer, construction permitSecretary, supervision of building
1
1Vantaa Director, supervision of building
Secretary, supervision of building
1
1Sipoo Manager, supervision of building
Secretary, supervision of building
1
1Mikkeli Leading building inspector
Office secretary11
Usage data converter: https://github.com/timole/sopernovusOperative data converter: https://github.com/timole/sopernovsa
Insights from the Interviews• Ability to process applications 24/7 wherever
internet connection is available increased flexibility of work by enabling flexible working hours and remote work
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Efficiency
Increased flexibility- Application
processing 24/7- Remote work
ApplicantAuthority
Insights from the Interviews• Time savings related to printing activities were
considerable for municipal employees, since printing large plans that was required before digital service, is time consuming and also costly
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Efficiency
Cost savings- Time and cost
savings of printing- Declined amount of
customer visits as personnel can reply to questions online and customers can see the status of their applications online
Insights from the Interviews• Increased ability to utilize resources, especially building
inspectors had more time to focus on their core tasks• E.g. productivity improvement of 65% in application
handling (with the same amount of personnel) in one of the studied municipalities.
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Efficiency
Productivity improvements- No need to search
for (or locate) paper files
- Reduction of information asymmetries
- Improved information ergonomics
Measured lead times in municipalities
Municipality Approvedapplications
Distinctoperations
Averagelead times
Medianleadtimes
Municipality A 730 41 77 57
Municipality B 55 17 57 46
Municipality C 1600 39 69 56
16.10.2016 9
Measured median flow efficiencies in municipalities
Municipality andoperation
2014 2015 2016
Municipality A groundsource heat 38 32
Municipality B groundsource heat
Municipality C groundsource heat 45 54 57
Municipality A smallhouses 43 45
Municipality B smallhouses 40
Municipality C smallhouses 44 44
16.10.2016 10
Discussion and conclusions• The main factors increasing the knowledge work
productivity were increased flexibility of the work, possibility to concentrate on the core work, information transparency and time savings due to digitalization of the application process.
• Flow efficiency calculations together with the median times used to process the applications provide new indicators for evaluating the efficiency improvement from digitalization.
• The most significant improvements in efficiency were achieved in municipality that was the most active in use of e-Government service. 100% digital provides the best results.
16.10.2016 11