Business One Stop Presentation

Business One Stop BriefingJanuary 6, 2009

David FriedlineDirector eGovernment Solutions

TiBA Solutions

ONE STOP FRAMEWORK PRESENTATION

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, "Will I have a job?" 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 use the resources we have – and the experience we possess – to maximize the potential for job growth and investment in Kentucky.”

Kentucky Governor

Steve Beshear

“Small business births are the single-largest determinant of growth in Gross State Product, employment, and State Personal Income.”

– Small Business and State Growth: An Econometric Investigation, Donald Bruce, John A. Deskins, Brian C. Hill, and Jonathan C. Rork

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

Framework Components

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:


Economic Impact:

Cost

• Average in excess of 47 hours to

obtain all of the LPRs, necessary to

begin operations.

Savings

• BOS has reduced this effort by 50%

• Saving customers more than

$18,489,213since going live.

Additional Business Days

• 18 days * 31,471 businesses

= 566,478additional business days

• Equivalent to adding 1522

additional businesses

Annual SC Business Births 43,000Days gained per business 18Business Adoption (year end 6/30/07) 35%

Daily Business Revenue $500.01

Business Revenue Created $116,100,000Economic Impact Multiplier 3.0x2

Additional Gross State Product $348,300,000

Average State Revenue as % GSP 4.7%3

Additional Annual Revenue to State =

$16,370,100


1. US SBA Statistics

2. University of South Carolina,

Moore School of Business

3. Total State GF Revenue/Gross

State Product

Potential Economic Impact

Annual KY Business Births 42,000Days gained per business1 10Business Adoption 60%

Annual Add’l Business Days 252,000

Equivalent New Businesses 900

New businesses account for 74% of all new job creation2

1. SC averaged 18 days gained per business2. Small Business and State Growth: An Econometric Investigation, Donald Bruce,

John A. Deskins, Brian C. Hill, and Jonathan C. Rork3. Palmetto Institute, Darla Moore School of Business, University of SC4. US SBA statistics 2005.

Daily Business Revenue $500.004

Business Revenue Created $126,000,000Economic Impact Multiplier 3.0x3

Total New Tax Base $378,000,000

Average State Tax Rate 5.4%

Additional Annual Revenue to State =

$20,412,000

Secretary of State Department of Revenue

Page 24



We asked: Yes

Would you use SCBOS again? 97.3%

Would you recommend SCBOS to others? 94.1%

Do you like receiving Renewal Reminders via email? 97.3%

Do you like being able to Update Demographics online? 88.9%

Do you like having a single login ID for all State Agencies? 94.2%

South Carolina Business One Stop User Satisfaction

One Measure of Satisfaction: Independent Survey

- Independent survey conducted by the University of South Carolina- Compiled and summarized by Dr. Tom Madden

• “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!!!”

Quotes from responders -

Business One Stop Survey

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.

C O N T A C T

David FriedlineDirector of eGovernment Solutions

[email protected]

Technology

Business One Stop Presentation