1

The Inland RevenueThe Inland Revenue

Inside and Outside

A Perspective on the Internet

2

ObjectivesObjectives

1. Look at Internet and E-Government

2. Share the experiences learned during implementation of SA on Internet

3. Suggest some suitable goals

4. Propose a plan of campaign

3

Where are we now?Where are we now?

Internet– Fad or fundamental?– What are you using it for?

Government and Internet– Immune, interested or involved?– Is it “What’s all the fuss?”– Engine for change or (yet) another channel?

4

UK StatisticsUK Statistics ~15 million regular (adult) internet users

– 38% AB, 34% C1, 16% C2, 12% DE– 80% over 25 years old– Rising to ~19 million at end 2000

4 million digital televisions– 10 million by 2003 (forecasts, forecasts!)

24 million+ cell-phones– Next generation access tool?

Source: New Media Age 22/6/00

5

Real MagicReal Magic

Internet Usage At Home

0

20

40

60

80

Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03

% t

akeu

p

USA

Europe

Source: Fortune magazine

6

More...More...

Internet Usage At Work

0

5

10

15

2025

30

35

40

45

Jan -98 Jan -99 Jan-00 Jan-01 Jan -02 Jan -03

USA

Europe

Source: Fortune magazine

7

Faster growthFaster growth

Cellphone Penetration

0

10

20

30

4050

60

70

80

90

Jan -98 Jan -99 Jan -00 Jan -01 Jan -02 Jan -03

USA

Europe

Source: Fortune magazine

8

Perhaps the real focus...Perhaps the real focus...

Internet Users With Online Banking

0

5

10

15

20

25

30

Jan -98 Jan -99 Jan -00 Jan -01 Jan -02 Jan -03

USA

Europe

Source: Fortune magazine

9

E-government so farE-government so far

Self Assessment by Internet– 50,000 registered users– Internal forecast for 300,000 returns this year

Companies House– 3,000 forms per month

VAT– 2,000 current users (pilot stage)– 700,000 returns by year end 2001

MAFF– 220 farmers piloting CAP schemes – 5-8,000 from 2001

10

Self Assessment ExperiencesSelf Assessment Experiences

50,000 registered users– Support questions - E-mail:telephone 5:1

Usage peaks in the evening (tax at 1am!)

– Inconsistencies in forms show up fast What does “UTR” mean to the citizen? And where on earth do they find it?

– Users don’t read the help Try it, if it doesn’t work, try it again, then e-mail So design has to be good first time round

11

Self Assessment Experiences (2)Self Assessment Experiences (2)

Mistakes are public– If it doesn’t work, it’s visible to everyone (fast!)

But, we can make changes fast too

– If you miss a deadline, it will be obvious (fast!) The last thing you want people to know is the first

thing they find out

– But, on the whole, so far the citizen-base is forgiving Expect changes as service becomes part of daily life

12

Self Assessment Experiences (3)Self Assessment Experiences (3)

Social inclusion can become social exclusion– Not everyone has the same technology– Not everyone even has technology

Third party vendors were ready before us– Commercial players are much better at this than

Government Keeping everyone in the loop is hard

– Communicating with network staff challenging

13

Things We ChangedThings We Changed

Decisions taken in minutes or hours– Operating with less than perfect data– And re-taken the next day– Conference calls every day

Not:

“I hope that the team will be into its stride by the autumn”

14

Things We Changed (2)Things We Changed (2)

EDS needed strong support– Processes needed updating

Rapid change – not 4 days to update a web page Build a little, test a little, enhance

– Required skill set in short supply Implementation skills lacking

– Struggling with same issues as you Significant partnership

– External organisations brought in early

15

What Shapes Your What Shapes Your Customer’s Thinking?Customer’s Thinking?

Customer

Experiencewith other (retail)

sites

Previous experience with

GovernmentPrevious

experience with IR

New IR websiteexperience

MediaSpin

Amazon

Yahoo Dell

SAOther (good) government

websites

HMCE

NegativePress Just One

Chance

Fru

stra

tion

Fru

stra

tion

Fru

stra

tion

Fru

stra

tion

Fru

stra

tion

16

What’s The Goal From Here?What’s The Goal From Here?

Hide complexity of internal processes– Be citizen-focused– Streamline your own processes

Encourage citizen to take care of herself– Provide “up to the minute” help on the web

Joined Up Government 50% by 2002, 100% by 2005

17

But the Big Goal is…But the Big Goal is…

UK will be “best place for electronic business”– Citizen will not accept that Government services are

anything less than the very best

But none of the previous goals address this need, so we have to:– Engineer radical process change behind the appealing

front-end

18

Achieving the GoalsAchieving the Goals

“More of the same”Add new Internet servicesCamouflage complexity

Rad

ical

Cha

nge

Extended Services

Joined Up Services on

managed scale

Invest in R&D• Radical change• End-to-end• Full e-environment• Target on e-enabled

companies• Implement

incrementally

Deg

ree

of C

hang

e, R

isk

and

pay-

off

Deliver 50% & 100% Joined Up UK Best Place

19

20

Limitations On DeliveryLimitations On DeliveryNew DimensionsCitizen focusLife event focusImminent deadlinesCitizen satisfactionDistributed controlInfinite varietyDemandHierarchyOpen disclosureJoined upMake decisions, move on

Limiting FactorsBack end complexityForm focusResponsiveness of vendorsInternal measures of successCentral controlOne size fits allAbility to scaleCapabilityKnowledge is powerSiloResistance to ownership

21

StreamliningStreamlining

CentralMailingService

TaxForm Citizen

Records

Tax Office

Archive

FixErrorsMail

Mail

Tax Office

Tax Systems

RiskProfile

Citizen

TaxForm

Internet

PC Records

Tax Systems

Archive

RiskProfile

Internet

Applies equally to internal and

external processes

22

Are Internet Savings Real?Are Internet Savings Real?

0

0.2

0.4

0.6

0.8

1

1.2

Banking

Branch

Phone

ATM

Internet

No bricks and mortar No legacy systems Reduced input errors Greater customer self-help

Typical Transaction Costs

23

BMSD (what?)– Merit badge– Rising seconded onto team

– Capability, not hierarchy– Team-based approach to address major goals– Fast moving teams

Challenging objectives Cross-business team-work

The PlanThe Plan(overcome the limitations, deliver the goals)(overcome the limitations, deliver the goals)

24

The Plan (2) The Plan (2) (overcome the limitations, deliver the goals)(overcome the limitations, deliver the goals)

Focus teams on each of the building blocks– Hide complexity

High investment (relatively) Little back-end/process change Works in the IR silo (high probability of success) Delivers 50% and 100% Significant partnership with commercial front ends

25

The Plan (3)The Plan (3)(overcome the limitations, deliver the goals)(overcome the limitations, deliver the goals)

Encourage citizen to take care of herself Cross-government work, gateway enabled True citizen focus – harder to achieve Get content management into the business units Upgrade support to focus on more complicated cases

– Expect fewer but longer calls to Help Desks

Think life events– I’ve started a business.com

– It’s my year end.com

26

The Plan (4)The Plan (4)(overcome the limitations, deliver the goals)(overcome the limitations, deliver the goals)

UK “Best Place for electronic business”– Lowest relative initial investment, highest change

The ONLY way to deliver radical process redesign Padded cell teams (throw away the key) Emerge with new process Target e-enabled businesses (Egg? Tempz?) Cannot get here by automating what you have Can’t wait until Autumn to get into stride

27

Next StepsNext Steps

1. Find the team of people2. Give them a padded cell, spun off from

the rest of the organization3. Let them come back with solutions to the

problems that they see.4. Accept their work and let them get on

with it. Colombus in the new world. You don’t know what they will come back with.