Reengineering Through Information Technology

Executive Summary

When it comes to information technology, horror stories abound in both
the public and private sectors.  In some cases, the federal government
is woefully behind the times, unable to use even the most basic
technology to conduct its business. At one point, for instance, three
Agriculture Department bureaus were supposed to share a computer system
toimprove the management of food and subsidy programs. Five years later,
they still could not resolve differences over testing, installation, and
maintenance.

In society at large, the widespread use of new technology has caused
problems that include threats to personal privacy and safety. In
Brooklyn not long ago, crooks used a hidden video camera to watch people
withdrawing money at ATM machines. By recording personal identification
numbers, the cameras helped the crooks later make unauthorized
withdrawals.

Nevertheless, information technology has brought the convenience of
revolutionary change to everyday life, from ATM machines at banks to
global transfers of funds, from 800 telephone services to personal home
computers, "e-mail", and the worldwide Internet computer
telecommunications system. Whatever its problems, the information
technology revolution is upon us. One author calls such technology the
most powerful tool for change in the modern era.[1]

American businesses, particularly the smarter ones, are taking notice.
As the cover text of a recent book proclaims, "Computers and
telecommunications are reshaping the basic structure of American
enterprise, and any competitive business must realize the new technology
either to improve its products and services or to create entirely new
ones.[2] The private sector is employing information technology to
reengineer the way it does business, using human and material resources
more efficiently and competing more effectively.

-Lagging Behind-

For various reasons--some regulatory, some legislative, some
cultural--the federal government lacks appropriate access to the most
efficient, costeffective information technology products and services.
The government has lacked not only strong leadership in this area, but
also a coherent plan on how to most effectively tap information
technology 's potential. This report provides Washington with a road map
to the future.

The government must not apply information technology haphazardly or
sporadically. It also should not simply automate existing practices.
Instead, public officials should view information technology as the
essential infrastructure for government of the 21st Century, a
modernized "electronic government" to give citizens broader, more timely
access to information and services through efficient, customer-
responsive processes.

For practically everyone, dealing with the government is complicated.
Americans complain that government is too slow or confusing in
delivering its services or that they have too many places to call or go.
Government employees complain even more about trying to deal with other
parts of government. A big reason is the incredible volume of
information that government processes and files.

Information technology, with its ability to electronically store and
rapidly sort, transmit, and access information, is the key to solving
this problem. If MasterCard can resolve a credit card issue at 1 a.m.
and Federal Express can find the location of a package anywhere in the
world, then, theoretically at least, government can do as well. But
while technology solutions exist, government is falling dangerously
behind the private sector in using technology to deliver services.

-Catching Up-

President Clinton and Vice President Gore want to use information
technology to improve Americans' quality of life and reinvigorate the
economy. The administration has identified technology as the "engine of
economic growth." [3] Among its top priorities is accelerating the
development of a National Information Infrastructure of high-speed
telecommunications networks, advanced computer systems, and software.

Today, information technology can create the government of the future,
the electronic government. Electronic government overcomes the barriers
of time and distance to perform the business of government and give
people public information and services when and where they want them. It
can swiftly transfer funds, answer questions, collect and validate data,
and keep information flowing smoothly within and outside government. But
making electronic government a reality requires two things: (1)
leadership to place information technology at the center of the business
of governing, and (2) commitment to the necessary support mechanisms.

This report outlines a three-part agenda for spreading information
technology's benefits to the federal government: (1) Strengthen
Leadership in Information Technology, (2) Implement Electronic
Government, and (3) Establish Support Mechanisms for Electronic
Government.

-Strengthen Leadership in Information Technology-.

The recently created Information Infrastructure Task Force (IITF) can
provide leadership in integrating information technology into systems
that support government's operation.[4] Chaired by the Secretary of
Commerce, this task force is responsible for articulating and
implementing the President's vision for advanced telecommunications and
computing technology. It is uniquely positioned to help develop the
governmental aspects of America's information infrastructure. The
President should expand the task force's work to include a Government
Information Technology Services (GITS) Working Group which, in turn,
would collaborate with state and local governments as well as the
private sector.

The GITS Working Group should work with the IITF to develop a strategic
vision and an implementation plan for using government information
resources across and within agencies, and develop steps to improve how
government provides information and services to the public.  The working
group should also develop strategies to empower information technology
management in federal agencies and set priorities for sharing
information among agencies. In addition, GITS should be the focal point
for implementing the actions of this report.

-Implement Electronic Government-

Electronic government extends the idea first seen in electronic banking.
Just as ATMs, plastic access cards, and nationwide networks have made
banking more convenient, electronic government will make communicating
with government easier and faster. Obviously, as in electronic banking,
privacy and security issues must be addressed here as well.

We propose seven initiatives to inaugurate the electronic government.
They provide dynamic opportunities to improve the efficiency and easy
use of government services. Their implementation will provide
substantial return on investment through increases in productivity.

-Integrated Electronic Benefit Transfer-

Electronic benefit transfer will use information technology present in
the financial industry to deliver, nationwide, fast and efficient
government assistance--including Food Stamps, Social Security benefits,
and veterans' benefits.

-Integrated Electronic Access to Government Information and Services-

Access to government is a right of Americans. Existing technology makes
possible the integrated electronic access to government information and
services. The use of a single nationwide 800 telephone number would
simplify access to government agencies. Electronic government kiosks
that use technology similar to that in ATMs can provide "one-stop
shopping" for both government information and services. Personal
computers may also be used to access electronic bulletin board systems,
databases, and agency directory services.

-National Law Enforcement/Public Safety Network-

A National Law Enforcement/Public Safety Wireless Network will improve
coordination and communication among federal, state, and local law
enforcement and public safety agencies, and will save money. It must
first focus on establishing standards for sharing information and
implementing appropriate privacy and security measures.

-Intergovernmental Tax Filing, Reporting, and Payments Processing-

The IRS already has on file all the tax information needed to calculate
the taxes due for about 60 million taxpayers because financial
institutions and employers are required to report this information. Yet
IRS and state tax agencies still require taxpayers to compute what IRS
already knows. If IRS computed taxes and sent a statement, and if
electronic filing were used for all others, IRS and state agencies could
forgo the mailing of 75 boxcars of forms to taxpayers--and certain
classes of taxpayers could ultimately not need to file. For others, they
will need to file only once. Enormous administrative savings would
accrue to government and the burden on taxpayers would be reduced.

-International Trade Data System-

To help ensure the nation's competitiveness inglobal markets, the
Treasury Department should create an all-inclusive database for
disseminating international trade data, for use by the government and
the trade community.

-National Environmental Data Index-

The National Oceanic and Atmospheric Administration should create a
National Environmental Data Index to coordinate the development and use
of environmental data gathered by various government agencies. Its goal-
-to give government, the private sector, academia, and citizens easy
access to environmental information.

-Governmentwide Electronic Mail-

In the private sector, e-mail and messaging systems are becoming as
common as the desktop computer. Governmentwide electronic mail is a
natural progression from paper-based government to an electronic govern-
ment. E-mail allows rapid communication among employees across agency
boundaries. The administration should work with Congress to resolve
issues regarding what constitutes a government record created by e-mail,
and how to ensure appropriate security in using e-mail.

-Establish Support Mechanisms for Electronic Government-

The administration isworking with the private sector to more quickly
develop a broad, privately operated national information infrastructure
(NII). The NII "will revolutionize the way we work, learn, shop, and
live, and will provide Americans the information they need, when they
need it, and where they need it--whether in the form of text, images,
sound, or video."[5] This capability will "enhance the productivity of
work and lead to dramatic improvements in social services, education,
and entertainment."[6] Nevertheless, this bright future can only become
a reality if we adopt "forward-looking policies that promote the
development of new technologies and if we invest in the information
infrastructure for the 21st Century."

The public and private sectors both must help improve the nation's
information infrastructure. Federal officials have a special
responsibility since the government produces information resources, uses
them and makes policy for their use, acts as a catalyst for their
development, and delivers services through them.[7] The government
should extensively use the emerging national information infrastructure
that American industry is creating and refining. In a recent report, the
President of the National Academy of Public Administration writes,

Information is pivotal to the vitality and productivity of government
services and the nation's economic competitiveness.  At issue is whether
we can use information technology effectively to empower government, the
private sector, and citizens alike. The complexity of today's world
demands that the public and private sectors not only learn to master
this tool, but also work cooperatively to maximize the national
benefits.[8]

The infrastructure will allow the government to consolidate and
modernize its data processing centers and standardize some of
government's basic administrative functions, such as payroll, personnel
record-keeping, management information systems, and financial and
general ledger accounting. The GITS Working Group should develop an
implementation plan for consolidating data processing installations and
reengineering common application systems.

The administration recognizes that initiatives to bring electronic
government to the public require strategic relationships between
government and the private sector. These relationships must include
necessary incentives for innovation. Agencies should be able to retain a
portion of savings produced through information technology for
reinvestment, and use multi-year funding for information technology
projects. The government should promote performance-based contracting
for information technology products, allowing the private sector to
increase its profits if it can find ways to make government run more
efficiently and cost-effectively.  It should create a governmentwide
venture capital fund to finance innovative information technology
projects within agencies.

Success in implementing electronic government also depends on public
confidence. Electronic government must protect the information it
processes and ensure individual privacy. It also must protect national
security interests, permit legitimate law enforcement activities,
enhance global competitiveness and productivity for American business
and industry, and ensure civil liberties. The government must define
uniform privacy protection practices and generally accepted principles
for information security. It also must adopt a digital signature
standard, and it must promulgate encryption standards for sensitive
information.

The government also must expedite and simplify how it acquires
information technology.The market for computer hardware and software
involves products for which the shelf life can be as short as a few
months. In this environment, the government needs aggressive, innovative
purchasing methods. The General Services Administration's (GSA's)
current schedules should be replaced with a real-time, on-line
electronic marketplace.  Dollar limits on agency delegations of
procurement authority and on credit card purchases for commercial
information technology items should be raised significantly.

Federal employees must get training and technical assistance in
information technology. The government should create a program to train
nontechnical senior executives and political appointees. Moreover, the
Office of Personnel Management and GSA should establish information
resources management (IRM) competencies for federal employees pursuing
appointments to IRM management positions.

Finally, because the new technology allows a physical restructuring of
the organization, making it less hierarchical, employees at all levels
should be able to interact electronically, sharing ideas and helping one
another with on-line resolution of information technology problems.[9]

The quicker the federal workforce embraces the possibilities of
information technology, the sooner the initiatives of electronic
government can become a reality benefiting the public. By reengineering
through information technology, the Clinton administration will provide
the leadership, vision, and commitment to bring government into the
Information Age.

Endnotes

1. Davenport, Thomas H., Process Innovation: Re-engineering Work through
Information Technology (Boston: Ernst & Young, 1993), p. 1.

2. Davis, Stan, and Bill Davidson, 2020 Vision (New York: Simon and
Schuster, 1991), front cover.

3. President William J. Clinton and Vice President Albert Gore, Jr.,
Technology for America's Growth, A New Direction to Build Economic
Strength (Washington, D.C.: U.S. Government Printing Office (GPO),
1993), p. 7.

4. The Information Infrastructure Task Force was formed by the National
EconomicCouncil and the Office of Science and Technology Policy in May
1993. It is a federal government interagency task force consisting of
representatives from federal agencies involved in telecommunications and
information policy. The task force addresses issues that promote the
application of the National Information Infrastructure.

5. See Federal Coordinating Council for Science, Engineering, and
Technology, High Performance Computing and Communications: Toward a
National Information Structure (Washington, D.C.: Office of Science and
Technology Policy, 1993).

6. Council for Competitiveness, "Vision for a 21st Century Information
Infrastructure," Washington, D.C., May 1993.

7. U.S. Office of Management and Budget, Information Resources
Management Plan of the Federal Government (Washington, D.C.: GPO, 1992),
p. III-8.

8. National Academy of Public Administration, The Information
Government: National Agenda for Improving Government through Information
Technology (Washington, D.C., 1993), p. iii.

9. Morgan, Gareth, Riding the Waves of Change (San Francisco: Jossey-
Bass, 1990), p. 102.