FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE Achieving Integrated Government-to-Business Service Delivery A Planning Guide for Reformers © 2020 The World Bank Group 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved. This volume is a product of the staff of the World Bank Group. The World Bank Group refers to the member institutions of the World Bank Group: The World Bank (International Bank for Reconstruction and Development); International Finance Corporation (IFC); and Multilateral Investment Guarantee Agency (MIGA), which are separate and distinct legal entities each organized under its respective Articles of Agreement. We encourage use for educational and noncommercial purposes. 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Photo Credit: Shutterstock.com FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE TABLE OF CONTENTS ACKNOWLEDGMENTS III ACRONYMS AND TERMS V I. INTRODUCTION 1 II. THE BENEFITS OF INTEGRATED SERVICE DELIVERY 3 III. THE INTEGRATED SERVICE DELIVERY MODEL FRAMEWORK 7 Designing the Front Office: Service Channel Options 8 Designing the Front Office: Types of Services Offered 9 Designing the Front Office: Service Experience 10 Designing the Back Office: Regulatory Authority 11 Integrated Service Delivery Classification Model 13 IV. IMPLEMENTATION CONSIDERATIONS 17 Institutional Approach 17 Back-Office Requirements 18 Technology Infrastructure 18 V. CRITICAL SUCCESS FACTORS 21 VI. FUTURE OPPORTUNITIES FOR ISD 23 VII. CONCLUSIONS 25 APPENDIX 1. COMPARISON OF ISD APPROACHES ACROSS SELECTED COUNTRIES 27 APPENDIX 2. ALBANIA CASE STUDY 29 LIST OF BOXES Box 1. What Is Integrated Service Delivery? 1 Box 2. Maintaining Public Service Delivery in a Pandemic 9 LIST OF FIGURES Figure 1. Integrated Service Delivery Model Framework 7 Figure 2. Service Experience Continuum 10 Figure 3. Integrated Service Delivery Classification Model 13 Figure 4. Key Enablers for the Four ISD Models 15 Figure 5. Technology Infrastructure: Foundational Components 19 Figure A1. Mapping of Jurisdictions Studied within the ISD Framework 28 ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY I LIST OF TABLES Table 1. ISD Approaches to Achieving Key Outcomes 3 Table 2. Service Channels 8 Table A1. Comparison of Integrated Service Delivery Approaches in Selected Countries 27 TABLE OF CONTENTS II FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE ACKNOWLEDGMENTS J ohn R. Wille (jrwille@gmail.com) is an ICT for Development expert and former WBG staff member who specializes in supporting the deployment of technology solutions to improve G2B service delivery. Lars Grava (lgrava@worldbank.org) is Senior Private Sector Specialist working on business regulation reforms in the Investment Climate Unit of the Finance, Competitiveness and Innovation (FCI) Global Practice of the World Bank Group (WBG). The authors would like to thank James Brown and Michael Davis of Davis Pier Consulting for their earlier research, which contributed to the development of this guidance note, as well as Christine Zhenwei Qiang, Sylvia Solf, Markus Kimani, Clément Uwajeneza, and Kimberly Johns for their contributions. ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY III FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE ACRONYMS AND TERMS ADISA Agency for the Delivery of Integrated Services Albania AI artificial intelligence BPM business process management ESB enterprise service bus Front counter Physical service delivery point, in a specific agency, service center, or OSS, where services from several agencies are co-located. G2B government to business G2C government to citizen ICT information, communications, and technology ISD integrated service delivery MOU memorandum of understanding NBC National Business Center NLC National Licensing Center NRC National Registration Center OSS one-stop shop PPP public-private partnership Service organization A client-facing service delivery agency providing a single point of contact with businesses on behalf of multiple government ministries and agencies. SLA service-level agreement SMEs small and medium enterprises UBI unique business identifier USSD unstructured supplementary service data UX user experience ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY V SECTION TITLE VI FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE I. INTRODUCTION G overnments worldwide are designing and implementing new institutional and technology approaches for providing integrated government-to-business (G2B) services, recognizing the many benefits that can be realized both by government regulators and businesses. The outcomes that governments are seeking by implementing these integrated service delivery (ISD) approaches include: (i) better service, (ii) improved government efficiency, (iii) enhanced regulatory oversight and compliance, (iv) reduced opportunities for corruption, and (v) increased reach of service delivery across their jurisdictions. However, many countries have had to start the process from weak positions, as they cope with ministries and agencies operating in silos, aging and fragmented technology platforms, and lack of a service-oriented ethos. This guidance note draws on the experience of several supportive legal framework, improved institutional countries that have implemented ISD solutions, capacity, state of the art technology support, and it aims to provide World Bank staff and client and a funding approach that ensures long-term governments with a practical understanding of the sustainability without additional costs to businesses. concepts behind integrated service delivery and This note seeks to provide World Bank staff and the reforms and investments required to implement client governments with a practical understanding it. A main objective of this note is to provide a of the reforms and investments necessary to create planning framework that governments can use an integrated service delivery framework for to comprehensively address the key institutional, government-to-business interactions, addressing governance, financial, and technology issues the government’s motivations to do so; the types involved in ISD initiatives. of changes necessary, based on the country’s ISD frameworks encompass both front-office development status; and good practices that (customer-facing channels and services) and will improve the initiative’s chances of success. back-office (regulatory decision making) service Governments have successfully implemented a components, in addition to the supporting wide variety of ISD approaches based on their own technologies used to integrate them. A properly country capacity and economic context. These have implemented ISD model includes effective used different mixes of service delivery channels governance, a client-focused service design, a and differing degrees of delegation of regulatory Box 1. What Is Integrated Service Delivery? Integrated service delivery (ISD) refers to the combination or coordination of multiple services in one physical or virtual location/organization. Integrated service delivery models are usually developed to create client-centric services, with the needs of individuals and businesses determining how government services are offered. This has traditionally been achieved by establishing single-window services, including physical one-stop centers and shared online portals. In recent years, some countries have also begun centralizing client-facing services in one dedicated service delivery agency (hereafter referred to as a “service organization”) and reengineering procedures to better integrate and streamline the registration, licensing, and inspection processes required by all relevant regulators. ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 1 authority from the primary regulator to the client- To successfully implement integrated service facing service organization. delivery, countries must make a number of decisions regarding its various aspects, based on thorough This note examines the benefits a country can assessments of the current state of their service achieve using an ISD framework and outlines the environment. These decisions will guide countries various service options, looking at the various in implementing a service that aligns with their potential delivery channels as well as the regulatory goals and expected outcomes while working within and organizational structures that work best to legal, political, or fiscal constraints to identify an achieve specific outcomes. It also outlines how achievable model. To deliver efficient, cost-effective information and communication technology (ICT) integrated services, countries must determine should be deployed under various scenarios as well the following: (i) the requirements of its clients as potentially useful implementation approaches. (e.g., businesses); (ii) the institutional model to be Finally, because no single “best practice” approach implemented; (iii) any changes required to existing applies in all cases, the note provides a high-level laws and regulations; (iv) a sustainable funding and analytical methodology for conducting an ISD financial model; (v) how services can be rolled out readiness assessment and determining the ISD and delivered (including change management in the approach that will work best in a given setting to client-facing agencies that will provide services); achieve the intended results. and (vi) an approach to monitoring and evaluation While many success stories provide useful lessons, that will support continuous iterative improvements in several instances governments have made major to service delivery based on lessons learned. Other investments in technology without giving due factors to be considered include the readiness of consideration to key institutional issues, such as the agencies involved to adopt and implement an building stakeholder consensus and establishing an integrated delivery model (particularly if a lead G2B effective governance structure for the ISD initiative. service organization is established); the existence Such approaches often lead to lack of buy-in and of foundational technologies (e.g., authentication, reluctance to use the system by key regulators payment, data exchange); and the availability of and, consequently, little uptake of the resulting authoritative information on businesses and common fragmented government online service offering by business identifiers. the private sector. I. INTRODUCTION 2 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE II. THE BENEFITS OF INTEGRATED SERVICE DELIVERY C ountries seek various outcomes from integrated service delivery initiatives, and every jurisdiction chooses the approach that best suits its objectives and local context. Research reveals five broad groups of desired outcomes, although these are not mutually exclusive. They are described in Table 1 below. Table 1. ISD Approaches to Achieving Key Outcomes Intended Outcome Main Approaches for Achieving the Outcome Better Service Co-locating services: This can take many forms, including one-roof1 and single-window2 one-stop shops (OSS), but their primary objective is to provide a coordinated, well-managed location where users can access government services. Creating more accessible channels:3 This approach enables users to access G2B services through their preferred channel. Improving information sharing among agencies: Information sharing reduces duplicative requests for similar information from businesses, following the “submit information once” principle. This principle, embodied both in legislative frameworks and in technology, strives to eliminate the need for users to supply the same information to government more than once and aligns with the “once-only, simplification and personalization” and “digital by default” strategies outlined in the EU’s Study on eGovernment and the Reduction of Administrative Burden,4 the EU Accounting Directive 2013/34/E,5 and the EU Transparency Directive 2013/50/EU.6 Redesigning services: Redesigning services and, where needed, regulations with the client in mind such as organizing a service in business terms not based on government organization or requirements, and performing user-experience (UX) design and testing that ensures client adoption, including the disabled. A related aim is to standardize key performance indicators across the various G2B service providers. Realigning institutions and related regulatory authorities: Realignment can take place either by integrating several institutions into one or by delegating responsibilities from several agencies to one client-facing service organization. Effectively implemented, this streamlines the service experience and enhances transparency for the business community. 1 In the “one roof” one-stop shop model, multiple regulators are co-located in a single location; however, businesses still need to visit each regulator individually to receive services. 2 The “single window” model constitutes the next level of one-stop shop, with multiple agents at a single location providing the full breadth of services offered. Businesses are thus able to go to any agent for any of the services offered at the location. 3 In service delivery terms, a channel represents a client’s point of access. The most traditional channels are in-person service (e.g., at a service counter or window) or service through an intermediary. In recent years, with the advent of technology, ad- ditional channels of service have become available, including call centers, online portals and mobile apps. 4 European Union (2014), Study on eGovernment and the Reduction of Administrative Burden, 5 European Union Law (2013), EU Accounting Directive 2013/34/E, 6 European Union Law (2013), EU Transparency Directive 2013/50/EU, ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 3 Intended Outcome Main Approaches for Achieving the Outcome Increasing client reach: Client reach can be extended by decentralizing service delivery. Decentralization has been made a priority across a wide range of developing countries, and it is especially relevant in those that have been unable to replicate traditional one-roof OSSs beyond the commercial capital. Improved Reducing the administrative burden on businesses: Integrated services can leverage Efficiency common/shared processes and services in online or co-located environments. This effort should also eliminate redundant steps by consolidating processes (e.g., instituting a single consolidated process for registering new businesses with all relevant agencies). Enhancing consistency and standardization of business processes: This approach standardizes all services through process reengineering prior to automation and involves the use of common business identifiers and industrial classification systems as well as common documentation requirements. Technology solutions can then be more easily configured to support data exchange and effectively monitor process flows. Leveraging shared assets and infrastructure: Using shared assets and infrastructure streamlines service delivery by gathering multiple services into a single location (physical and/or virtual) and common technology infrastructure. Governments gain efficiencies either physically, by co-locating services in one-roof or one-window locations; or technologically, by sharing technology service components (e.g., payment, authentication, financial management), using common technologies (e.g., development languages and frameworks, database servers, server platforms, etc.), adopting consistent standards (e.g., interoperability, user interface design, etc.), and sharing hosting facilities (e.g., government data centers or cloud hosting). These efforts can reduce ongoing operating costs and enable more efficient, centralized procurement of technology assets and services. Improved Improving access to regulatory requirements: ISD solutions typically include a repository Regulatory of the services offered that provides information on regulatory requirements, information/ Oversight and submission requirements, costs, regulatory authorities, and other relevant information. Compliance These repositories are typically searchable, and the information is provided in consistent, easy-to-understand language, thus improving the user’s knowledge of the regulatory requirements for starting or operating their business. Sharing information: Sharing information among regulatory authorities improves the government’s ability to identify businesses that are not complying with tax, licensing or permitting, registration, customs, social security, and other regulatory requirements. Reduced Streamlining services: Streamlining services makes them easier to manage, track, and Corruption and audit, thus reducing opportunities for corruption. In particular, moving to online service Revenue Leakages delivery reduces the potential graft and undue administrative discretion that can occur during face-to-face interactions between clients and civil servants. Employing e-payment mechanisms: E-payments reduce the types of revenue leakage that can occur with cash-based settlement of official fees and charges. Increased Reach Employing technology to improve access for previously underserved parts of the of Service Delivery business community: The use of online portals and mobile apps helps broaden client access to services and makes it more cost effective to decentralize “front counter” service delivery beyond the commercial capital. II. THE BENEFITS OF INTEGRATED SERVICE DELIVERY 4 The jurisdictions studied cited one or more of these five practices. An example is the ability to confirm that categories as representing the outcomes they sought a business is registered (with the business registry from implementing ISD solutions. A key enabler and/or tax authorities) prior to issuing it a license required to achieve these outcomes is an effective or permit to operate in a regulated industry. Data and efficient data interoperability7 framework and interoperability and exchange is typically enabled by supporting technologies, which enable governments adopting a common unique business identifier (UBI)8 to centralize data and implement business rules and government-wide standards on data sharing and and checks extending beyond traditional regulatory interoperability. 7 A data interoperability framework ensures that systems and services can create, exchange, and consume data with clear, shared expectations for the content, context, and meaning of that data. 8 For further information on unique business identifiers, please consult “Implementing a Unique Business Identifier in Govern- ment: Guidance Note for Practitioners and Nine Country Case Studies” (2016), ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 5 SECTION TITLE 6 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE III. THE INTEGRATED SERVICE DELIVERY MODEL FRAMEWORK T he integrated service delivery model framework within government, as outlined in Figure 1, has two dimensions: (i) the “front office” component of a service model, through which clients interact with government, and (ii) the “back office” component, which holds regulatory accountability to manage transactions and make decisions on whether a client’s request is fulfilled. In traditional government services, the agency delivering the service usually also has regulatory authority to complete all required formalities. Within this framework, the front-office component is It is recommended that governments employ this characterized by the channels providing the service, framework to develop an internal consensus on the types of services provided, and the degree of the specific approach to integrated service delivery integration in the service experience designed. The that best fits the country’s economic and business back-office component encompasses the institutional context and the political economy within the public setup and regulatory authority granted to the service administration. As noted previously, no one approach organization and the regulatory requirements (if any) is considered “best practice,” as governments have addressed as part of service provision. successfully implemented a variety of models. Figure 1. Integrated Service Delivery Model Framework Front Office Back Office Client-facing services – how businesses interact Regulatory decision-making – what the with government service provider can do for the client Client Channels Service Regulatory Experience Tools @ Online Separate Co-located Registration Mobile Integrated Regulatory Client-centric Authority Licensing Limited and In Person Service Initial Contact Permitting Type Delegated Institutional Phone Transactional Inspection Informational and Advisory Compliance Intermediary Technology Infrastructure and Software Institutional, Legal, Regulatory and Business Process Considerations ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 7 Designing the Front Office: Service channel strategy may also be influenced by larger Channel Options government objectives and strategies, such as “digital by default,” administrative simplification, Various channel options are available for delivering and personalization of services. integrated services, including online (i.e., web), mobile, phone, in-person, and intermediary. (See An individual who accesses a service through any Figure 1 and Table 2.) When implementing an ISD channel is using the front office. The front office solution, however, not all channels need be addressed; represents the point at which citizens interact with few countries have implemented all channels, and the government, regardless of channel, to complete only a few have gone completely digital. Rather, transactions or access information. governments should develop a channel strategy Table 2 describes the services typically offered by the based on an assessment of client preferences (noting various channels, the considerations or limitations of that different clients will have different preferences) using the channel, and examples of how the channels and available resources and infrastructure. The are used. Table 2. Service Channels Intended Outcome Main Approaches for Achieving the Outcome Informational and transactional services are provided through an online portal. In some @ countries, such as Kenya, the business portal is integrated with a citizens’ portal offering a wide array of government services provided in a single virtual location. In other cases (e.g., Albania, Austria, and Nova Scotia), the business and citizen portals represent separate online solutions Online that may leverage shared e-government services, such as payment and authentication. Similar to online services, mobile services are provided through online portals easily accessed using a mobile device’s web browser, a custom mobile app, or text-based services such as USSD or Quick Codes.9 In the United States, many state governments use the Gov2Go app provided by NIC10 to deliver information and support service delivery. Mobile Typically delivered through call centers, phone services can include informational, transactional (through interactive voice response (IVR) or similar technologies), or advisory services. Artificial intelligence (AI) tools, such as chatbots,11 are increasingly used to support Phone service delivery by phone, supplementing call center staff. In-person integrated services are generally provided at designated locations. There, an employee works directly with the client to obtain the needed services. Locations can include specific agencies or an OSS environment. In-Person Intermediary services involve individuals who input or access information on a client’s behalf. In many countries, for example, notaries and lawyers assist entrepreneurs in registering their businesses, sometimes using dedicated online access to company registries. Intermediary 9 USSD (Unstructured Supplementary Service Data) “can be used for WAP browsing, prepaid callback service, mobile-money services, location-based content services, menu-based information services, and as part of configuring the phone on the network”. 10 http://www.egov.com; https://getgov2go.com/. 11 A chatbot is an artificial intelligence program that simulates interactive human conversation by using precalculated key user phrases and auditory or text-based signals. III. THE INTEGRATED SERVICE DELIVERY MODEL FRAMEWORK 8 Different approaches are possible, but governments Designing the Front Office: Types of typically do not rely on a single channel for service Services Offered delivery. Multiple delivery channels are advisable, as clients have differing preferences and needs, and Integrated services take many forms and mean governments have differing capacities and resources. different things in different country environments. While one individual may opt for online service Regardless of the channel through which they delivery, another may want in-person service. Most are provided, integrated services generally fall clients value the availability of multichannel access, into three categories: informational, advisory, and so that even if they mostly use online services, they transactional. still have the option to call a center or visit an office Information Services. Many countries have complex for more specialized assistance if required. Having regulatory environments for business, and businesses multiple options also helps ensure that clients needing may be unclear about the relevant regulatory special accommodation for a disability can be served. requirements. Informational services typically In a properly designed ISD solution, all front-office consist of a central web portal or information desk channels ideally leverage the same technology that provides entrepreneurs with information on platforms and databases to provide client services, the registrations, licenses, and permits they will thus mitigating issues related to synchronizing require for their planned business activities. A good client or other information across channel-specific practice example is Canada’s BizPaL service, which technology solutions. Each jurisdiction will take a provides information to streamline the process for different approach based on, among other things, its obtaining business permits and licenses. It integrates existing technology and office infrastructure, client requirements at the federal, provincial, territorial, preferences, institutional capacities and resources, and many municipal levels to provide information on and the type of service being offered. all the formalities to establish and operate a business. By offering the information in a simple, interactive Box 2. Maintaining Public Service way, the service enables business owners to better understand the regulatory environment, including Delivery in a Pandemic both initial formalities, such as registration, and The coronavirus pandemic has ongoing requirements, like tax and annual report demonstrated the importance of a filings. Another example is New Zealand’s business multichannel approach, as in-person portal (business.govt.nz), which allows users to learn channels in many countries are unavailable what licenses are required for their specific business due to health-related restrictions on type and offers a direct link to the website where the face-to-face interaction and access to license can be obtained. Members of the European government offices. Many governments Union (EU) are required to provide similar types have been able to maintain service delivery of informational one-stop shops under the Services because their technology platforms are able Directive (2006/123/EC).12 to support staff working from home and The increasing availability of artificial intelligence communicating with clients via telephone, (AI) tools has enabled many governments to improve e-mail, chat, or video connections. In the quality of such information services across addition, jurisdictions with policies and multiple channels. The use of AI-powered chatbots technologies that remove the need for and IVR systems makes it easier for firms to identify paper documents and that enable digital and access relevant regulatory information, often in signatures and e-payments are better multiple languages. able to complete regulatory transactions without physical contact with clients. European Union Law (2006), Services Directive (2006/123/EC), 12 ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 9 Advisory Services. Advisory services provide the “starting a business” indicator. In a small number detailed, in-depth knowledge across a number of of jurisdictions, such as Nova Scotia, the process requirements (e.g., registration, licenses, permits, has been extended to include commonly required inspections) that businesses need to successfully business licenses and permits. start and maintain their operations. A number of • Implementation of a shared technology platform countries, such as Malaysia, have support agencies for issuing business licenses and permits. This that offer these services to small and medium approach allows governments to fully leverage enterprises (SMEs); in many countries, chambers of a shared services technology architecture — commerce and industry associations may play this including common user authentication, workflow role. Advisory services can be delivered across all management, e-payment, and digital signature channels by various means, including chat rooms or capabilities — to provide cost-effective service chatbots on the web and mobile devices. delivery online or via a single-window OSS Transactional Services. For transactional combining multiple agencies. Countries that have services, clients go to physical or virtual locations adopted this approach include Albania, Canada to register their businesses, apply for and receive (provincial agencies), Indonesia, and Malaysia. licenses, or pay for permits. While most ISD In several cases, such as Albania, Bosnia, and initiatives target transactional services, many Rwanda, the integration of the business entry process begin the process by implementing integrated was the first step in a larger initiative to move all information services to encourage collaboration registrations and licensing activities online. among the involved regulators. Countries have typically employed two major Designing the Front Office: Service approaches to integrating G2B service delivery: Experience • Integration of the business entry process. Service experience of clients, as illustrated in Figure Countries may combine registrations with the 2, is a continuum that describes the maturity level company registry, tax authority, statistical agency, (e.g., sophistication and comprehensiveness) and the and, often, the national health insurance and level of integration among the G2B service delivery pension authorities into one integrated process organizations. The continuum ranges from separate that occurs either online or through a front- services delivered through separate agencies or counter operation. Several countries have adopted ministries, through to a dedicated, client-centric this approach, including Albania, New Zealand, service organization, typically aligned with events in Norway, Rwanda, and Serbia, contributing the business life cycle, offering an all-in-one, highly to their high rankings on the Doing Business intuitive, user-friendly experience. Figure 2. Service Experience Continuum Separate Co-located Integrated Client-Centric Separate Agencies Delivering Dedicated Service Organization III. THE INTEGRATED SERVICE DELIVERY MODEL FRAMEWORK 10 Traditional/Separate Services. At the traditional/ can be made available to the relevant regulator, separate end of the service experience continuum, so the firm does not need to resubmit information clients must seek services from separate, completely previously provided when applying for licenses. detached entities. This is the legacy approach to Integrated services are often provided through a delivering client services. This model requires dedicated service organization responsible for providing clients to visit separate locations, whether online services across available channels. Georgia’s Public or in person, to access services and/or information. Service Halls are a good example of an integrated Examples of this type of service experience can be service environment that provides citizens access to found in most countries throughout the world. approximately 300 government services. Co-located Services (One-Roof OSS). Co- Client-Centric Services. Client-centric services located services provide a single location to access take the concept of ISD a step further by government services, but the services are not personalizing service provision for users based on integrated with each other; they are delivered by their business’s life cycle events. Here the focus is different people working for different agencies or not on sequentially addressing the requirements of ministries and using different systems. When in- individual regulators; rather, services are organized person services are involved, this model is sometimes in business terms, with integrated application referred to as a “one-roof OSS” service, since all processes that address all formalities required to regulators’ representatives are located in the same operate in a given business sector. office, providing their specific services individually. If provided online, services under this model offer a For example, Nova Scotia’s license “bundles” for portal that serves as a directory to the web sites and restaurants, accommodations, and convenience online services of individual ministries and agencies. stores provide one-stop service that guides clients One-roof OSSs for G2B (and G2C) services have in establishing these types of business. This online been implemented in variety of jurisdictions over the service integrates municipal, provincial, and federal past three decades. Unfortunately, as described in a licenses and permits at a single online location and previous World Bank publication,13 many of them takes the user through a streamlined, step-by-step end up being “one-more-stop shops” due to a lack application process. In the background, individual of process integration and data sharing among the regulators receive the relevant information and process regulators co-located in the OSS. the required registrations, licenses, and/or permits. Users benefit from clear guidance regarding required Integrated Services (Single-Window OSS). Under formalities and from the simplicity of submitting an integrated service or “single window” model, required information to government only once, rather clients visit one location and interact with one than on multiple overlapping application forms. representative to access government services across a wide variety of regulators (e.g., business registry, tax, social security, business licensing). The online Designing the Back Office: equivalent is typically a single, integrated process for Regulatory Authority satisfying all formalities required when registering a Regulatory decision-making occurs in the “back business. In more sophisticated environments, the office” of a government’s service delivery structure. government operates a shared services platform To expedite service delivery, decisions traditionally that allows users to identify and apply and pay for made within the ministry or agency with regulatory all required licenses and permits through one online responsibility for the relevant services can be interface. Through shared access to data, information delegated (in part or in full) to service organizations. on the firm contained in the company and tax registry World Bank (2010), How Many Stops in a One-Stop Shop? A Review of Recent Development in Business Registration, 13 ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 11 Regulators often find this concept difficult to accept, operate similarly, providing a single interface to as it means less knowledgeable individuals will businesses but supporting a traditional regulatory address clients’ questions, record information, or decision-making approach in the background. make decisions about whether to grant a request. Delegated Authority. In this model, responsibility Delegation also raises accountability issues if the for decision making regarding service fulfillment service organization is not effectively coordinated or has been delegated to a service organization that training and quality assurance efforts are inadequate. issues licenses, registrations, or permits on behalf Options for delegating regulatory authority are of the regulator. This model provides an enhanced outlined below. service experience for clients because fewer Limited Authority. This model places responsibility handoffs result in shorter turnaround times. It also for all components of the service with each regulator, helps provide clients with better information, since meaning the separate ministry, department, or in general the front-facing individuals making final agency is responsible for handling service inquiries, decisions will simply know more about the service accepting applications, analyzing information, and in question. However, challenges persist with this making regulatory decisions. This is how most model. For example, regulators often find it difficult government services are delivered, but an integrated to allow another agency to make decisions on their service can still work under this model, typically behalf. The regulators may believe that the service through a one-roof OSS. agency will not have the appropriate focus or subject matter knowledge to consistently make the Drawbacks of the limited authority model include right decisions. While training, support, and quality duplication of functions, inconsistent or duplicate assurance can help mitigate these issues, the concern procedures, duplication of data entry, and multiple may be legitimate, especially when service agency ICT systems, limiting information exchange across employees must be knowledgeable across several government entities and requiring clients to submit regulatory domains. the same information or documentation to multiple regulators. Albania has successfully used this model (see Appendix 2), with government regulators delegating Delegated Client Contact. In this model, authority authority for issuing some licenses to a service is delegated to a service organization that then organization, based on a classification of regulatory provides information about services on behalf of complexity. The service organization processes all included regulators and, in many cases, accepts license applications requiring only simple reviews applications for services. In practice, this model of required documentation or firms’ self-declarations can take several forms. The Public Service Halls in and then notifies the relevant regulator. License Georgia perform this role for many of the services applications requiring more detailed analysis (e.g., they deliver, providing initial information and inspections, tests, interviews, hearings, or other accepting applications but passing the information evaluations) are referred by the service organization electronically to the regulator for review. This to the relevant regulator for adjudication. approach is also seen in Canada, where federal and provincial government service organizations Institutional Consolidation. With institutional (e.g., Service Canada, Service Nova Scotia, Service consolidation, the government reorganizes Ontario) provide information and accept applications ministries to combine regulatory mandates into a for many of the services they deliver but do not review single agency responsible for related interactions. applications to determine whether a business should This model forces collaboration and integration receive the requested license or permit. Most of these through reorganization and restructuring rather than client-facing agencies operate technology platforms relying on regulators’ willingness to work differently that support a “single-window” approach to front- with client-facing service agencies. Based on the counter service delivery. Many online shared services countries studied, this model typically includes portals, such as GoBusiness Licensing in Singapore, registration, licensing, and permitting; inspection III. THE INTEGRATED SERVICE DELIVERY MODEL FRAMEWORK 12 activities are still conducted by inspectors with Integrated Service Delivery the necessary technical expertise. If implemented Classification Model correctly, the institutional consolidation model can be very cost-effective and business centric. It is not Based on decisions concerning the service design common, however, as it requires significant senior- criteria described above, it is possible to map the level vision, considerable resources to implement, selected approach, which is illustrated in Figure and acceptance of a long time horizon before benefits 3. Using this model, policy makers can map their are fully realized. One successful example of this current positions within the matrix, compare model is the National Agency of Public Registry themselves to peer countries, and identify steps in Georgia, which consolidated the registries of required for moving forward toward greater various ministries with responsibility for registering integration of services. companies, sole proprietors, and other legal entities, The model outlines four general classifications as well as property and other assets. This allowed of service delivery approaches for jurisdictions, for significant integration and economies of scale. based on the maturity of the front office (Service Other countries that have consolidated multiple Experience) and back office (Regulatory public registries within one organization include Authority). They include initial stage of Macedonia and Serbia. Figure 3. Integrated Service Delivery Classification Model Consolidation Focused Transactional Services Full Integration Institutional Q Strong support (from a few key Q Strong political and institutional ministries) support Q Moderate regulatory complexity Q Streamlined regulatory scope Q UBI in place for some agencies Q Mature eGovernment program; UBI Q Works to streamline a specific in place Delegated Authority Regulatory Authority G2B interaction Q Multi-year evolution Client Contact Initial Stage of Integration Navigation and Information Services Delegated Q Low political/institutional support Q Low to moderate support Q Complex (or unknown) regulatory Q Moderate complexity environment Q Some existing common service Q No UBI “locations” and client-focused agency Starting point for most UBI not required Authority Q Q Limited governments Q Organization works as advocate for businesses Separate Co-located Single Window Client-Centric Service Experience ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 13 integration, navigation and information services, service infrastructure. Integration of services will focused transactional services, and full integration. necessarily be phased over a multiyear period to ensure the scope of the initiative is achievable. Initial Stage of Integration. This stage represents However, this type of environment allows the a traditional government environment and is still design of truly integrated, client-focused services. commonly found in many jurisdictions with low Essentially, these conditions create the opportunity to political/institutional support for integrated service implement any version of integrated service, because delivery and a complex regulatory environment. the strong foundation of support and resources will Few of the key enablers needed to provide a strong help promote and maintain the service. foundation for modernized service delivery are present, making it imperative to begin by establishing Figure 4 provides a checklist of the key enablers the building blocks for future development. that should be in place as a government plans a move from the initial stages of integration to the Navigation and Information Services. This other ISD models. environment has low to moderate political/ institutional support, moderate regulatory While most of the countries studied have moved complexity, and some existing common service sequentially through the ISD models, some countries “locations” and shared service channels. The model have attempted to leapfrog to the transactional suits jurisdictions that are a step closer to being service model, with varying levels of success prepared to implement full, integrated services, depending on whether the prerequisite enablers were but that still lack some key components. Moving actually in place. In most of the countries studied, forward with any major implementation will provision of online business registration services require enhanced alignment of goals and objectives was an early objective, rather than just providing within government, and the regulatory/legislative information services. Business licensing systems, complexities need to be better understood. In this which are typically more complex and involve more scenario, the target approach would be to create an stakeholders, have typically been initially reformed entity that provides mainly information and support using the navigation and information model; the to businesses attempting to understand government next step is moving on to transactional services. services and structures. However, a few countries such as Albania were able to successfully move directly into the provision Focused Transactional Services. These services of transactional services once the requisite legal exist in environments with strong support from a reforms, process re-engineering and other enablers few essential ministries and moderate regulatory were addressed. complexity. In this scenario, focus should be on streamlining a specific business interaction (e.g., Using this framework to build a common business start-ups in a specific industry). Without understanding of the current situation and possible broad support across the government, efforts future scenarios, the next step would be to reach involving the advocate ministries should be a priority. agreement on the overall strategic direction of the ISD initiative. The next section outlines the Full Integration. Full integration is possible given tasks to be addressed in planning to implement the strong political and institutional support, simplified selected strategy. and streamlined regulatory scope, and significant III. THE INTEGRATED SERVICE DELIVERY MODEL FRAMEWORK 14 Figure 4. Key Enablers for the Four ISD Models Objective Initial Stage of Integration Q Is the objective clear? Q Low political institutional support Do you have a champion for the endeavor? Complex (or unknown) regulatory Primarily “No” Q Q Q Is there a specific problem you are trying to environment address? Q Identify opportunities on which to demonstrate value Q Building block for future Primarily “Yes” Requirements Q Are there commonalities between the services Navigation and Information Services you will provide? Low to moderate support required Primarily “No” Q Q Are the services simple or moderate in complexity? Q Moderate regulatory complexity Q Is the number of services considered Q Some existing common services manageable? “locations” and client-focused agency Q Are the following enablers in place? Offices, Q Agency works as advocate for Technology, Partnerships, UBI business Primarily “Yes” Institutional Model Q Is there a regulator with the mandate? Focused Transactional Services Is there an existing organization with a client Strong support (from a few key Primarily “No” Q Q service mandate or infrastructure? ministries) Q Is there coordination amongst ministries? Q Moderate regulatory complexity Q Have key areas of resistance been managed? Q Uncoordinated institutional environment or unclear service design Primarily “Yes” Q Works to streamline a specific interaction Services Primarily “No” Q Is there a consensus among the relevant regulators around the key ISD design aspects, including: Full Integration Q Service experience Q Strong political and institutional Q Service type support Q Service channels Q Streamlined regulatory scope Q Clear institutional model Q Opportunity for true integration Primarily “Yes” Q Multi-year evolution towards best-in-class government service ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 15 SECTION TITLE 16 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE IV. IMPLEMENTATION CONSIDERATIONS O nce the government’s approach to integrated service delivery has been defined and agreement reached among the stakeholders, a number of institutional, legal, business process, change management, and technology issues must be addressed during the planning stage. Institutional Approach metrics and response times; mechanisms to protect the confidentiality, accessibility, and integrity of In those cases where ISD efforts focus on a specific data; and regulators’ rights to access data. process, such as business registration, a dedicated service organization is usually unnecessary. The following are among the various ways to create Normally, the company registry manages the online a governance and institutional structure: and front-counter processes, passing the applicant’s • Create a dedicated service organization, using information electronically to the other registration either the Delegated Authority or Institutional bodies (e.g., tax, social security, and statistics). Consolidation models described previously. As noted in the previous sections, where ISD efforts This model has been employed with success in encompass most or all registration and licensing multiple countries and jurisdictions, including procedures, many countries have either established Albania, Canada, and Georgia. In Canada, service service organizations or the eGovernment agency organizations exist at the federal and provincial has set up an integrated online portal. Many levels (e.g., Service Canada, Service Nova Scotia, approaches exist to establish a government service Service Ontario, etc.). organization and delegate authority to it. The best • Involve the private sector by creating a public- approach will depend on the current regulatory private partnership (PPP). Many U.S. states infrastructure and political economy within employ this model, in which a private sector government (e.g., number of agencies involved and partner builds and operates a technology platform their present degree of autonomy/collaboration). In to support electronic delivery of most G2B and most cases, new legislation will be needed to define G2C services. The partner company typically the legal mandate, establish standards, and set up recovers its investment from transaction service accountability structures for the service agency. fees allowed under concession agreements lasting Having the appropriate and proper authorities in between five and ten years. place allows increased legitimacy and standardized practices. In addition, having the proper governance • Assign the service mandate to an existing ministry in place is essential to developing a strong foundation or agency. for effective service delivery. Governance structures Each approach has both benefits and considerations, should be formally defined through such vehicles as and the structure and norms within the jurisdiction changes to laws and regulations, but they must be should drive the choice of model. The identified supported by service level agreements (SLA) and structure should be formalized through legislation, memorandums of understanding (MOU) that provide regulation, and/or contracts, as applicable, to ensure details regarding the roles and responsibilities of the the proper supports are in place to foster success. various partner ministries and agencies. Regardless of the choice, the agreements should address, inter In addition, based on the government’s degree of alia, the following issues: details of the service centralization, it may be necessary to consider at requirements; responsibilities; defined service what level of government a service organization ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 17 will be most meaningful. In Canada, much business that gives the service agency significant authority to regulation has been delegated to the provinces, complete these transactions becomes more difficult, meaning that service agencies at the national given the number of licenses and permits that a level have very few interactions pertaining to business may require. To simplify the scope of the entrepreneurs. This also makes truly national- service, many integrated models involving licenses level service integration very difficult to achieve. and permits usually only provide information or In comparison, Austria, a relatively centralized initial contact or are limited to specific sectors. nation, has had more success with national-level Expanding beyond a limited set of licenses and service integration. permits typically requires the development of a shared license administration system accessible by Back-Office Requirements all the relevant regulators. The planning for this The service requirements with which businesses requires a detailed inventory of licenses and permits must comply can generally be categorized as and their associated regulatory authorities. Further, to registration (including firms, assets, and in make such a service more integrated and efficient, a some cases citizens), licensing and permitting, detailed process mapping and reengineering exercise inspections and compliance, and, potentially, is required. Licenses and permits have underlying financial institutions and the tax authority. The types differences in the data collected and the processes of services a government would like to integrate for approval. However, commonalities exist that will affect the best approach to the initiative. can be leveraged when implementing a common technology platform to administer these formalities Integrated services related to registration tend more cost-effectively. to be the least complex. These generally include interactions such as company, asset, tax, and social Inspections are not commonly delivered through insurance registration; require that similar pieces of an integrated service model. Inspections require information be collected, making information sharing the most extensive domain knowledge and and delegation easier; and involve intermediaries qualifications, making it difficult to train individuals (e.g., lawyers) in more complex transactions, making to complete these activities. Successful integrated it easier to work with a regular client base. This is an service models involving the delivery of inspections excellent area with which to begin when considering usually involve information sharing across regulatory integrated service delivery. It also provides the areas, the ability to utilize a common core of firm opportunity to create foundational elements information across multiple types of inspections, or for further integration (e.g., a unique business the establishment of shared responsibility for generic identifier). All businesses are required to register in compliance requirements (e.g., basic public health some manner, so the volume of clients potentially and safety standards). benefiting would create a significant business case for building this type of service. Technology Infrastructure More mature integrated service models introduce Whether in-person or virtual (e.g., online, mobile, licensing and permitting transactions. Licenses or phone), integrated services provide opportunities and permits are required to operate within specific for improving client services by leveraging modern sectors or industries, so the information required technology platforms to aid in data and process is more specific, detailed, and variable from one management. Specific technology needs are unique license to the next. These processes are generally to the jurisdiction and its existing technology more complex, as they vary by business type, capabilities as well as to the service channels, types, industry, and size and thus require a more detailed and experience to be delivered. The ISD solution understanding of the regulatory environment. should be tailored to a country’s existing ICT Implementing an integrated service delivery model infrastructure (e.g., internet, data centers, and secure intra-government communications). IV. IMPLEMENTATION CONSIDERATIONS 18 The key foundational technology components • A shared licensing platform, as seen in illustrated in Figure 5 should be addressed in the jurisdictions such as Albania, Indonesia, implementation plan. These include: Malaysia, and Nova Scotia, provides a single, virtual location where clients can apply for or • Payment and e-Payment frameworks, with renew all relevant licenses. supporting legislation, supports online payments. The ability to accept online payments provides • Business process management platforms help efficiencies for businesses and government alike, create and maintain standardized, consistent but the necessary legislative and regulatory processes for all associated services. measures should be in place. • Interoperability and data exchange frameworks • Client authentication, potentially through simple provide standards-based integration platforms credentials or even more advanced technologies (e.g., a service bus), enabling data sharing among (e.g., smart card or public key infrastructure), government agencies. A reliable shared hosting when combined with identity proofing, provides infrastructure (e.g., government or commercial higher levels of identity assurance. This can cloud) is also essential, but it can be a challenge allow more services to be provided online, for developing countries to implement. as government can be more confident when Establishing the proper technology foundations validating a user’s identity. is an essential prerequisite of a successful • A Unique Business Identifier (UBI), which like integrated service. a citizen’s national ID, allows integrated service delivery to businesses across multiple government agencies and ministries/departments. Figure 5. Technology Infrastructure: Foundational Components Shared Licensing Business Process Platform Management Interoperability and Data Exchange Payment and Client Unique Business e-Payment Authentication Identifier (UBI) ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 19 SECTION TITLE 20 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE V. CRITICAL SUCCESS FACTORS W hile there are many benefits associated with integrated service delivery, it does not come without its fair share of challenges. The experiences of the various jurisdictions analyzed indicate that there is no “one size fits all” approach to implementation. In addition, implementation is typically a long-term, evolutionary process. As seen by the variety of approaches to service types A lack of adequate prioritization or overly ambitious (informational, transactional, and/or advisory) and initial objectives are among the most frequent sources service channels (in-person, online, phone, mobile, of problems for ISD projects. For example, in one and intermediary) employed within the jurisdictions East Asian country the government attempted to studied, many approaches to service delivery can move all national and subnational licensing activities yield success. Several key factors stand out as critical onto a common technology platform. Based on to achieving a positive outcome for government and subsequent consultations with World Bank experts, the business community. it was determined that this could take as long as 30 to 90 years, given the large number of jurisdictions Understanding the Needs of the Client. involved; therefore, a more achievable, phased Understanding what clients want and need is approach was developed. In another Asian country, essential because, ultimately, they are the service the government implemented a common licensing consumers, and the service must reflect their needs. platform and began to migrate specific licenses Successful jurisdictions, such as Albania, Austria, over a period of several years. The initial uptake and Nova Scotia, have all engaged in usability and of the service by the private sector was quite low, user-experience analysis and end-user stakeholder however, mainly because the key licenses applicable sessions to guide the design of their service offerings. to SMEs were not prioritized for early phases of the This should be an agile and iterative process, with implementation. strong monitoring and evaluation to identify areas for improvement based on user experience and Strong Government Mandate and Effective feedback. Governments must also consider that Governance. A strong government mandate and businesses and business activities occur outside the effective governance are needed to support the commercial capital, thus decentralization of service implementation, management, utilization, and delivery is often an important requirement. maintenance of an integrated service delivery system. Legislation or a presidential decree alone will not be Prioritization of Services to Maximize Benefits. sufficient; ISD projects require effective leadership Implementation of specific services will need to be and a strong mandate to ensure cooperation among prioritized as the ISD transformation is typically agencies or support the creation or amalgamation a multi-year evolutionary process. Governments of agencies. In addition, the ISD solution must should establish an overall prioritization framework also consider other long-term aspects of sustaining based on key objectives, such as reducing the reforms, such as strong interinstitutional governance, administrative burden, reducing corruption, and ongoing legislative reviews, responsiveness to supporting targeted business sectors (e.g., SMEs). institutional or political change, and monitoring Based on the output of this analysis, governments and evaluation processes to ensure efficient and should develop a phased overall implementation cost-effective solutions. Governance mechanisms and transition plan and communicate it to internal to ensure sustainability include service level and external stakeholders (e.g., business users and agreements, memorandums of understanding, or private sector partners). legislation if required. Clear roles, responsibilities, ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 21 and procedures are needed to ensure everyone is Identification of Authoritative Sources of aware of what is expected of them and the proper Information and Effective Data Governance. A processes to complete their activities. This includes unique business identifier and authoritative registries defining roles for front- and back-office staff, who and information are fundamental for tracking of may be responsible for delivering multiple services. businesses and managing data and so are critically With multiple agencies/ministries ultimately important to any integrated services initiative. involved in the delivery of services, service level Supported by UBIs and a strong data governance agreements and defined processes are important for framework, an ISD solution should identify key managing these cross-agency business and technical sources of authoritative information for data, relationships. provide cost-effective and efficient methods for information exchange among stakeholder agencies, Reforms to Legal and Regulatory Frameworks. and establish a mechanism to ensure data integrity. A supportive legal and regulatory environment is Typical sources of authoritative information for essential to the success of ISD initiatives. Reform business-centric ISD solutions include the business efforts should address, inter alia: (i) the streamlining registry and tax agency, and adoption of a UBI and removal of inconsistencies within business usually involves implementing a strong linkage regulations (e.g., disparities between national and between these two sources of data. To align with subnational regulations); (ii) enacting necessary legal the “submit once” principle, an ISD solution should and regulatory support for electronic documents, also provide cost-effective and efficient methods digital signatures, electronic payments, and other for exchanging information among stakeholder key enablers of digital government; and (iii) legal agencies. The ISD solution (or ecosystem) must provisions for the delegation of authority from enable the agencies involved to exchange data with regulators to a service organization, as necessary. other stakeholder agencies to integrate G2B services Agency-Level Readiness and Commitment. An related to business entry as well as to implement ISD solution is a long-term commitment to service regulations and support compliance oversight. These delivery. As such, the service providers must mechanisms must also permit updates to information address a range of issues, including organizational related to registered businesses while maintaining capacity and culture, leadership support and data integrity and quality. Finally, the ISD solution commitment, staff training, technology, and should be transparent. Through appropriate channels, adequacy of short- and long-term funding. Agency- the public should be able to access the public data level ISD implementation plans should include it maintains (e.g., basic firm information from the detailed change management strategies to promote business registry and records of adherence to health behavioral and cultural changes aimed at improving and safety standards). service delivery. Ensuring these enablers are in place when Sustainable Funding. This type of initiative requires implementing an ISD initiative is essential to identifying a funding model that will support the creating the foundation for successful outcomes. initial transformation to integrated G2B service Appendix 2 presents a case study of Albania’s delivery as well as the addition of further services and experience implementing an ISD framework, which the ongoing maintenance of the underlying technical highlights the importance of these implementation and organizational infrastructure. Funding typically considerations and critical success factors. The comes from both government budgetary allocations Albania government created a dedicated G2B and, to a lesser extent, fee income from service service organization under a Delegated Authority provision. Governments often realize substantial model which serves as a single-window OSS for all cost savings through both improved efficiencies business registration and licensing services, reformed arising from online versus face-to-face transactions, the legal framework to enable streamlined service as well as reduced revenue leakages resulting from delivery and established a technology infrastructure moving from cash to electronic payments. which supports multiple service channels. V. CRITICAL SUCCESS FACTORS 22 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE VI. FUTURE OPPORTUNITIES TO ENHANCE INTEGRATED G2B SERVICE DELIVERY W hile most of the ISD initiatives studied have focused mainly on the business startup process, there are opportunities to extend the scope of services delivered to address the entire business lifecycle, including ongoing operations (e.g., tax payments, license renewals, business expansion) through to firm exit (closure and winding up of operations). These expanded services can leverage the same institutional and technology infrastructure to improve the efficiency and quality of service delivery. For example, some jurisdictions are using their technology platforms and data to adopt a more proactive approach to regulatory oversight, notifying firms when tax payments and license renewals are due or identifying firms which should be inspected for possible non-compliance with regulations. Governments are also increasingly employing Finally, ISD can foster the consolidation and management dashboards summarizing data on utilization of business data from different government internal process efficiency available through their sources. Namely, the improved real-time access technology platforms to monitor channel usage and to firm-level data (for example, on registered, tax identify bottlenecks. These improved technological paying businesses) provides government with a capabilities can also enable jurisdictions to quickly potential new consolidated and robust information react to emerging new requirements. For example, resource to support policy analysis and advocacy one U.S. state was able in a matter of days to adapt beyond those already available through periodic an existing integrated business licensing system to firm-level surveys or provided separately by accept applications for government support grants individual government entities. This more timely from firms impacted by the COVID-19 pandemic. and granular data can support government efforts to analyze the effectiveness of regulatory oversight and In addition, governments are beginning to integrate monitor the administrative burden of regulation in artificial intelligence tools to simplify searching for specific sectors. information on regulatory requirements, which will ultimately help make registration processes and the completion of regulatory formalities more intuitive and user friendly. ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 23 24 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE VII. CONCLUSIONS T his note highlights the important legal, operational, design, and technical considerations for implementing an integrated service delivery solution, as well as the key challenges encountered by the countries studied. No “one size fits all” solution emerged. To achieve success with ISD, governments must understand their political and legislative environment, assess their existing physical and technical infrastructure, consider the potential services to be delivered, and last but not least, clearly understand client needs. ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 25 SECTION TITLE 26 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE APPENDIX 1. COMPARISON OF ISD APPROACHES ACROSS SELECTED COUNTRIES T able A1 provides a comparison of the ISD approaches implemented in the countries studied for this note. Albania, Canada, and Georgia have established client-facing service organizations for online and in-person G2B service delivery (in two cases, for G2C as well). In contrast, Austria, Malaysia, Rwanda, and Singapore focused their ISD efforts on online channels; Rwanda also operates a traditional one-roof OSS to deliver front-counter services to businesses; the other countries have no integrated front counter. Figure A1 maps the jurisdictions studied within the ISD framework. Table A1. Comparison of Integrated Service Delivery Approaches in Selected Countries Organizational Service Regulatory Country Service Channels Approach Experience Authority Albania Dedicated service Single-window Delegated for Online (e-albania. organization for OSS licenses requiring al) and in-person registration and only presentation licensing of documentation Austria Government Online single- Little delegation Online (www.usp. operates integrated window OSS; no gv.at) and in- online transactional integrated front- person portal; front- counter services counter services in regulators’ offices Canada (Nova Dedicated service Client-centric High degree of Online (novascotia. Scotia) organization for service delivery: delegated authority ca/sns), in-person, registration and license service and call center licensing “bundles” for common business types (e.g., restaurants) Georgia Public Service Single-window Little delegation; Online (my.gov.ge), Halls provide in- OSS for most online and front- in-person, and call person services; services; integrated counter service center government registry agency requests referred operates integrated to regulator or online portal registrar ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 27 Malaysia Integrated online Separate online Little delegation; Online (www.bless. licensing portal single windows online service gov.my) and in- operated by for business requests referred person government; registration and to regulator separate business licensing; no registration agency integrated front- counter services Rwanda Online portal Online portal, Most key G2B Online (www.rdb. operated by although services services managed rw), mobile, in- the Rwanda must be accessed by Rwanda person, and agents Development individually; Development Board; front- one-roof OSS for Board counter services front-counter G2B offered in one-roof services OSS and regulator offices Singapore Integrated Separate online Little delegation; Online (www. online licensing single windows online service gobusiness.gov. portal operated for business requests referred sg), in-person, and by a service registration and to regulator call center organization; licensing; no separate business integrated front- registration agency counter services Figure A1. Mapping of Jurisdictions Studied within the ISD Framework Authority Client Contact Authority Consolidation Limited Delegated Delegated nstitutional Georgia Nova Scotia, Canada Regulatory Authority Albania Singapore Indonesia Rwanda Malaysia Austria Separate Co-located Single Window Client-Centric Service Experience APPENDIX 1. COMPARISON OF ISD APPROACHES ACROSS SELECTED COUNTRIES 28 FINANCE, COMPETITIVENESS & INNOVATION INSIGHT | INVESTMENT CLIMATE APPENDIX 2. ALBANIA CASE STUDY Overview I n 2005, Albania embarked on major reforms to its business registration, licensing, and permitting regime as well as undertaking reforms to its tax administration and public procurement. The goal of these reform efforts was to improve G2B service delivery as well as Albania’s performance on the control of corruption, business environment, and rule of law policy indicators. Between 2005 and 2009, Albania completed major was established in 2007. NAIS provides the changes in these areas, including the transition of technology backbone and interoperability platform business registration from the court system to a for information exchange among Albania’s public new organization, the National Registration Center agencies. NAIS operates the e-Albania portal (NRC). The reform of business licensing reduced the through which the NBC offers business registration overall number of federal licenses and permits from and licensing/permitting services; it also allows 200 to 45 types. In addition, the National Licensing citizens and businesses to apply online for a large Center (NLC) was established to act as an OSS to variety of other government services, including manage the issuing of licenses, authorizations, and searching for and viewing the status of applications permits as well as to support public institutions in or services and paying taxes, utility bills, and service decision making to create a friendly regulatory fees. (For more information on NAIS and e-Albania, environment. After the approval of Law No. see e-albania.al.) The e-Albania portal and the 131/2015, “On the National Business Center,” in Government Interoperability Platform (GIP), which 2015, the NRC and NLC were merged into a single provides institutions with a means to exchange data G2B service organization, the National Business in real time, are key components of the government’s Center (NBC). The NBC offers its services through strategy to deliver electronic services through a a network of 34 service windows in 31 cities, which single point of contact. Among the key objectives of are connected to the NBC main office and relevant the government’s Digital Strategy for Albania, 2015– business regulators through an integrated electronic 2020 are to improve public services and reduce rent- system. (For more information on these legal seeking opportunities through an “innovation against arrangements, see www.qkr.gov.al.) corruption” program to simplify, integrate, and unify service delivery through a single window. The mission of the consolidated institution includes: (i) maintain the trade register and associated records; (ii) carry out business registrations; (iii) Institutional Structure and issue certificates, extracts of records, and certified Governance copies of deposited acts; (iv) publish recorded data As noted above, reforms in Albania led to the and provide free public access to this information; creation of the NRC and NLC (now combined into (v) manage the National Register of Licenses, NBC) and the NAIS. These institutional changes Authorizations, and Permits; (vi) facilitate issuing of led to a transfer of authority from other government business licenses, authorizations, and permits; and institutions, such as courts and ministries. The (vii) support regulatory policy making. NRC, as an OSS to streamline business registration To support the deployment and maintenance of processes, was intended to reduce the time and cost e-Government infrastructure and services, the to start a business as well as to reduce corruption and National Agency for Information Society (NAIS) informality. Before reform, business registration was ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 29 conducted by 29 courts operating without common Law No. 10081/2009 mandated the division of the standards and using paper-based applications and licenses and permits previously issued by the various record-keeping systems. ministries and agencies into those to be handled by or through the NLC and those that would continue to be To facilitate registration services across the managed solely by the competent ministry or agency. country, the NRC established 33 service windows: The licenses and permits handled by or through the one in Tirana, 29 through municipalities, and two NLC were further divided into three groups: through Chambers of Commerce and Industry. The municipalities and chambers operated under • Group 1 consists of four licenses and permits for a delegated service principle under which NRC which the sole evaluation criterion is based on self- provided funding to the municipality or chamber declarations by the applicant. specifically for these functions (Melikyan 2012, 14). • Group 2 consists of 33 licenses and permits for Thus, the client-facing employees were municipal which the evaluation criteria are based on both self- or chamber staff who received training from NRC, declarations and documentary evidence presented which also funded some or all of their salaries. by the applicant. Registration of a business with NRC also included integrated registration with the tax authority, • Group 3 consists of 67 licenses for which the social and health insurance authorities, and labor evaluation criteria are based on self-declarations — processes that had been conducted separately and documentary evidence, but also additional before the reforms. Through its online portal, technical evaluations by the competent regulator NRC offered users the ability to search registered through ex ante inspection, tests, analysis, businesses, perform simple incorporations, make interviews, or hearings. information updates (e.g., changes of address), and submit annual returns. NLC’s technology platform featured a workflow management system to process license and permit Like the NRC, the NLC was created during the applications. Applications and supporting documents regulatory reform drive; it opened for operation for licenses in Group 3 move through the system to in 2009 and consolidated most license and permit the competent ministry or agency, and its decision issuance across Albania. In addition, NLC maintained is published in the National Register of Licenses, and provided public access to the National Registry of Authorizations, and Permits. Licenses, Authorizations, and Permits, an integrated portal, accessible by the public, which publishes, These reforms transformed Albania’s business inter alia, all the necessary information regarding registrations from a juridical process to a simple licensing and permitting procedures, all requests for administrative one and consolidated the client-facing a license or permit, and notice of all licenses and aspects of licensing and permitting into NLC. The permits issued. simultaneous approach for business registration and licensing reform involved many institutions and was NLC’s eleven physical service windows received carried out over a short time. Because of the time and handled these license/permit applications. frame for the initial reforms, the government decided The service window in Tirana was staffed by that combining NLC with NRC posed too much of an NLC employees, with the other ten operating in operational risk, given the large number of services collaboration with NRC. The NRC’s existing local to be streamlined and merged. By the end of 2015, service windows began to operate as NLC service however, Albania had commenced the process of windows, accepting applications from businesses unifying NRC and NLC into a single institution, the seeking licenses or permits. NLC’s online presence National Business Center, which became operational provided: (i) a listing of all licenses and permits, their in 2016. The NBC now operates 36 windows, requirements and associated fees, and a consolidated of which two are in Tirana with another thirty- application form; and (ii) the ability to view the four across Albania. All applications for business status of any license or permit application. APPENDIX 2. ALBANIA CASE STUDY 30 registration and licensing can be also be submitted (e.g., business name, business number, address, etc.) through the e-Albania portal. onto a common application form. As a result, many regulations or laws relating to eliminated licenses Albania has also extended their OSS approach to the or permits were repealed or amended to align with delivery of government-to-citizen (G2C) services, by the newly streamlined processes and to reflect any establishing the Agency for the Delivery of Integrated reclassification as a license or permit. Services Albania (ADISA) in 2014. ADISA operates a network of citizen service centers throughout the The primary law enabling creation of NLC, reducing country, some of which accept applications for G2B the number of licenses and permits, and refining services on behalf of the NBC. terminology was Law No. 10081, dated February 23, 2009: “On the Licenses, Authorization, and Permits Regulatory Reform Process in the Republic of Albania.” Albania’s sweeping regulatory reform goals, Results and Impact including streamlining business start-up procedures and reducing corruption, affected business While obstacles were encountered and challenges registration, public procurement, tax administration, still exist, the reforms and solutions implemented as well as business licensing and permitting. have provided benefits to both businesses and government by reducing the number of licenses and The NRC replaced what has been described as an permits and the amount of time required to register a “archaic and fragmented registration process” business, improving transparency in the compliance involving review in Tirana and district courts requirements for businesses, and reducing corruption. followed by additional registrations at national and local levels of government. On average, this Based on various research studies and surveys, process required 47 days to complete. Eight pieces implementing e-government services in Albania of legislation were enacted or amended to create reduced the administrative burden for businesses NRC and reform commercial business registration and increased efficiency in government in the in Albania. following ways: The licensing and permitting reforms that resulted • Reduced time to register a business. According in the formation of the NLC were the results of an to World Bank Doing Business (DB) data, prior to aggressive reform approach. Under this approach, the implementation of the NRC, Albania’s court- often called a licensing guillotine, criteria were based business registration system required 47 established to review existing licenses, permits, days to complete 11 procedures (DB 2004). DB certificates, authorizations, and consents — all 2009 data shows that only 8 days were required terms used in Albanian legislation granting a period to complete 6 procedures, while in 2019 only 4.5 of permission to an entity – to determine whether a days were required to complete 5 procedures. particular formality should remain or be abolished. • Reduced need for professional services. Research Even retained licenses and permits were subject to shows that fewer companies required outside simplification and reform. service providers to register: 38.4 percent after One of the first steps undertaken during the reform the introduction of NRC, down from 41.8 percent was to clearly articulate the differences between before the reform. The reduction mainly affected licenses, permits, certificates, authorizations, and larger firms, which had a higher propensity to use consents and to identify which of these could be outside services to register (Melikyan, 2012, 18). handled by the NLC. Once this was completed, • Reduced cost to register/obtain a license/ work began to simplify and clarify license and permit. NRC set a very low registration fee for permit criteria (e.g., supporting documentation) business registration, and the NLC set a very low and to consolidate standard information required licensing/permitting fee (lek 100, the equivalent ACHIEVING INTEGRATED GOVERNMENT-TO-BUSINESS SERVICE DELIVERY 31 of approximately US$1). This strategic decision championed the project. Without this high-level likely contributed to the surge of registrations support, the reforms likely would have been less by small companies after NRC was established successful and taken additional time to complete, (Melikyan, 2012, 17). especially given the institutional resistance to moving business registration out of the court • Reduced corruption. Research studies and system and licensing and permitting out of the interviews noted that the regulatory reforms individual ministries involved. reduced corruption. The 2007 World Bank Enterprise Survey reported that 57.5 percent of • Dedicated technical team. In addition to responding firms reported a request to pay a bribe strong political leadership, the implementation to receive a government service (“to get things team was dedicated to combatting corruption done”); in the 2019 survey, this figure had fallen and improving the business environment. This to 31.6 percent. team understood the details of the regulatory framework, developed the license and permit • Increased service quality. Based on the reform criteria, and implemented sweeping Millennium Challenge Corporation’s final report changes within a short time. research, “nearly 70 percent of the respondents considered it ‘very easy’ to obtain answers from • Technical and financial support from the donor the NLC staff, and nearly all respondents said community. Particularly in terms of reform advice they were either ‘very satisfied’ or ‘satisfied’ when and financing of the requisite ICT infrastructure, asked about their overall experience with NLC” technical and financial support from the donor (Melikyan, 2012, 30). community was a key contributor to success. • More effective “one-stop service.” Although several levels of government remain involved, Conclusion the one-stop shops introduced by NRC and NLC The Government of Albania made significant (now NBC), in conjunction with municipalities progress between 2005 and 2015 through regulatory and local Chambers of Commerce and Industry, reforms that resulted in creating dedicated G2B simplified the application process and reduced the service and eGovernment agencies, as well as knowledge of government that a business must a simplified regulatory environment, a reduced have to apply for and obtain the registrations, administrative burden for Albanian businesses, licenses and permits required to operate. and reduced corruption. The guillotine approach to regulatory reform reduced 200 license and permit Critical Success Factors types to 45 — all issued through NLC and later the NBC. Business registration reforms — moving from Conditions for success when implementing and a court-based system to NRC — reduced the amount delivering integrated G2B services include aspects of time to start a business from 47 to 4.5 days. While of leadership, governance, planning, and technology. some obstacles remain, the reforms have already In Albania’s case, the following conditions were provided lasting benefit to Albania. identified as contributing to the successes achieved: • Political will and strong leadership. The References government showed strong political will to combat corruption and improve the business environment. Melikyan, L. 2012. Millennium Challenge The various reform projects involved all levels of Corporation — Albania Threshold Programs: Final government, including the prime minister, who Evaluation Report. http://data.mcc.gov/evaluations/ index.php/catalog/71/download/288. APPENDIX 2. ALBANIA CASE STUDY 32