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Measuring ROI in E-Government |
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THE NEED FOR MEASUREMENT
ROI AND THE PUBLIC SECTOR
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Indiana University Faculty Contribute to primer that helps
government agencies understand how e-government can help.
anexsys, a Chicago based consulting firm, has recently
issued a primer on "Measuring ROI in E-Government." The report was
written in conjunction with Indiana University's Institute for Development
Strategies and the META Group.
The purpose of the report was to:
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Demonstrate a need to confirm return on investment (ROI)
in e-government initiatives. |
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Explore how specific methodologies are employed to
determine e-government ROI. |
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Outline a recommended course of action for agencies in
implementing ROI. |
Dr. David Audretsch, Dr. Jon Gant, and Dr. Craig Johnson of
Indiana University contributed to the report published by anexsys.
For more information, please visit the
anexsys website or read an
announcement about the primer's
publication. |
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"The financial and budget offices of many
governmental agencies use some form of ROI valuation, e.g. lower transaction
cost, earlier deposits into treasury, facility reductions, to determine
e-government project spending and approval. Yet, traditional ROI models fail
to encompass the broader requirements of government. |
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"Unlike the private sector, governmental
agencies
must serve every constituent
and cannot tailor their services to a specific market niche that is
more profitable." |
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"Additionally,
governmental agencies are required to work within specific regulations and
legislation, which may eliminate specific courses of action that are more
cost effective or efficient. For example, a department of natural resources
may wish to implement a voice response telephone system to handle hunter
registrations and accept payment via a credit or debit card. If existing
legislation prohibits the use of credit cards, then a lobby for change will
be needed. Finally, not every policy goal is built around a tangible,
financial benefit for an agency or its constituents." |
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"Quite often, agencies are charged with
providing solutions that promote convenience for constituents or reduce a
specific burden such as waiting in line." |
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--from the primer
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