Back To Their Roots -- eGovernment at Work

Thought Leadership Profile | NIC

O ver the past decade, the letter “e” became ubiquitous.Just about every industry attached the letter to itsname at some point to illustrate the availability of

electronic services.It may surprise many people that government was one of

the first to add the letter “e.” In fact, eGovernment has beenaround longer than the World Wide Web. The origins ofeGovernment harken back to the days of Bulletin Boards, 300baud modems and blocky green text.

Back to Their Roots

“There is noth ing you do on paperwith the governmenttha t can’t be done faster on line .”Jeff FraserChief Executive Officer NIC

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NIC helps agencies get back to serving constituents in an effective way.

eGovernment’s purpose is to create a portal for more con-venient constituent access. Of course, prior to the Web, theInternet primarily was inhabited by researchers, professorsand scientists. But even before the Web, one company wasdeveloping eGovernment strategies. Kansas-based NIC beganmanaging eGovernment services in 1991 by offering datahosting and text-based portals for Internet-savvy citizens.

The advent of the graphical user interface made theInternet — and eGovernment — much more accessible to

Senior care centers, schools and daycare providers can now screen employees online with Arkansas’ electronic background checksystem, which reduces paperwork and allows caregivers to spend more time with their residents and students.

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the citizenry. Now with 17 states already onboard, NIC isproving that states can build a custom-made electronic bridgeto reach their constituents — all while saving money, gener-ating revenue and improving overall service.

Modern ConvenienceAs in government, people today are being asked to do more

with less. For citizens and businesses, this usually means gettingmore done in ever-shrinking windows of time.When the needto interact with government arises, many of these constituentsare too busy to stand in line at a service counter.

In Maine, the lobster capital of the world, those who harvest lobster for a living once could spend all day renewingprofessional licenses at the Department of Marine Resources —taking time out of their demanding schedules.Thanks to a part-nership with NIC’s Maine subsidiary, commercial fishermen ofall kinds now instantly renew professional licenses online.

In Tennessee, where the state partnered with NIC’s Tennesseesubsidiary, citizens can skip the line at the Department of MotorVehicles and go online for such services as driver’s licenserenewals, changes of address and duplicate license requests.

Not only do constituents gain from eGovernment, but agen-cies themselves benefit tremendously as well, said NIC ChiefExecutive Officer Jeff Fraser.“eGovernment makes sense to ourgovernment partners because they are able to increase servicelevels to constituents while generating internal efficiencies byreducing manual processes such as data entry. In addition, theself-funded model allows agencies to increase their statutoryrevenue collection because it provides an easier way for busi-nesses and citizens to interact with government.”

This strategy is central to NIC’s eGovernment solution.NIC’sself-funded model is based on the premise that many people,especially businesses, are willing to pay a small transaction fee to

avoid the hassles of physically going to a government building.And by creating quality applications, the number of users — andthus the statutory and transaction fees — increase, creating aneGovernment system that pays for itself instead of requiring taxdollars from the state’s general fund.

The bottom line is that, in most cases, the only reason people go wait in line is because a law or regulation exists that

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“Government agencies are swamWe allow agencies to go back ando what it is they were designed Harry HeringtonChief Operating OfficerNIC

Doug Elkins, chief information officer of Arkansas,is a believer in eGovernment, and his state is provinghow effective and innovative it can be . Leveragingpowerful tools from NIC has propelled Arkansas ontothe cutting edge of eGovernment by reconnectingwith citizens and businesses in a meaningful anduseful way.

“ O ur initial concept was to offer a lot of citizentransactions, but we ’ve seen a big market in the busi-ness-to-govern ment transactions . B usinesses arerequired to file a lot of things with the government so that’s where we see a large ma jority of our onlinetransactions,” said Elkins.

And with some of these transactions, a small state-approved fee is applied . This is NIC ’s self-fundedmodel , which helps governments put in-demandservices online at no upfront cost to taxpayers. Forexample , Arkansas businesses can access an onlinecriminal background check application before hiringan individual. For hiring managers, this information iswell worth the small fee charged for the service .

Arkansas and NIC also offer several innovativetools that better the citizen-government experience .Recently, Elkins said , the state began allowing citi-zens to transfer funds online to incarcerated lovedones. “In the past, family members deposited moneyinto accounts,” he said . “This offering has been unbe-lievably popular and adoption is very strong .”

The state also allows online child support pay-ments, said Elkins, adding that the system providesconvenience for both the person making the paymentand the recipient. “All parties can check the status ofpayment and the balance of the account online ,” hesaid . “This is the first time child support can be paidonline in our state through the convenience of creditcards and e-checks, and it allows both parties to be aparticipant in an online community.”

With its NIC partnership , Arkansas is reaching outand making government accessible . Elkins is proudof what they ’ve accomplished and said their effortshave been recognized .

“In 2003, we were in the C enter for D ig ita lGovernment’s Top 5 B est of the Web ,” he said . “ NICstates are consistently represented in the Top 10. NICis one of the best partners we have in this state .They ’re bringing us ideas, they ’re looking at the mar-ket, they ’re finding opportunities and sometimes it’sthe best we can do to keep up with them .”


A Natural StateNIC helps Arkansas eGovernmentbecome second nature.

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The history between NIC and the state of K ansas ismarked by a partnership that has produced the para-digm for eGovernment initiatives.

K ansas worked with NIC to create a state Web siteknown as accessK ansas, which is widely regarded as one of the best state government portals. InK ansas, building an eGovernment solution camefrom the belief that government ought to reducecosts, increase efficiencies and generate high satis-faction levels from businesses and citizens.

“ O ur f irst application, years ago, was with the un i form com m erc ia l code (U C C), ” sa id K a nsasSecretary of State Ron Thornburgh . “ That was acom monly used banking application. We partneredwith the K ansas B ankers Association and we wereable to turn a 10-day process into a 10-minuteprocess. Now 90 percent of our f i l ings and retrievalscan be done electronically.”

O ne benefit of eGovernment is the sheer amount ofnewly available time it creates. With more time avail-able , agencies can get more work done , foster newideas and execute better strategies.

“All of a sudden, we ’ve created hours and hours offreed-up time for our employees,” Thornburgh said .“ We h ave cre a ted a n opportun ity for the m to do work other than f i l ing papers. It’s a success theconsumer is not going to see , but it has a big impacton my agency.”

N ew businesses can f i le their articles of incorpora-tion online and complete forms for the Departmentof Revenue , and the state currently is creating newelectronic payment methods. Individuals can alsoget various licenses online and register for a widerange of permits.

Everything the state does on paper can be donebetter, faster and cheaper online , said Thornburgh .And the relationship with NIC has been critical to thesuccess of accessK ansas. NIC ’s business model iswhat helped accessK ansas bring eGovernment intoreality. The self-funded model — which applies smallstate-approved fees to certain transactions — allowedthe state to build its leading-edge eGovernment portalwithout relying on budget appropriations.

“This has been a great partnership with NIC ,” saidThornburgh , “and the self-funded model is the onlyway this could have worked in the state of K ansas. Itfosters solutions that are tailored to our needs. Andby creating a true partnership , we have made thisthing successful.”

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compels them to do so.“People don’t tend to go to governmentoffices unless they have to,” said Fraser.“There is nothing you doon paper with the government that can’t be done faster online.”

A Tailor-Made SolutionDespite their similarities, states are unique and individual

experiments in democracy. For this reason, a one-size-fits-all

solution may look good but ultimately will fail to address allof a state’s needs. NIC builds solutions designed specifically foreach state government partner.

“We don’t just design applications,” said NIC ChiefOperating Officer Harry Herington. “Most companies build asolution and then take the government’s money and leave.

NIC is focused on the long-term success ofeGovernment. We identify what a govern-ment needs and create a solution aroundthose needs — and we only get paid whena service is successful and being used by citizens and businesses.”

The result of such an approach is that NICmust be creative and nimble while buildingthe best possible eGovernment solution. Foragencies burdened by a shortage of funds anddemands for a higher level of service, a tailor-made NIC solution may be the answer.

“Government agencies are swamped,” said Herington.“Weallow agencies to go back and do what it is they were designedfor. Our centralized Web portals address the challenges of lega-cy systems. Our solutions improve customer satisfaction.Theysave money and make money. NIC’s approach allows govern-ment employees to focus on each agency’s core mission andprovide quality service to the people.”

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Still in KansasThe original eGovernment state provesthere’s no place like home.

Constituents in Tennessee can now go on line to obta in driver ’s license renewals,changes of address and duplicate licenses from the Department of Motor Vehicles.


To learn how self-funding can work for you ,contact Elizabeth Proud f it at 703-288-0980 oreproud f it @ nicusa .com .

Visit NIC at www.nicusa.com


What do lobsters and Stephen K ing have in com-mon? Both are from Maine and have mill ions offans . B ut while K ing is probably content to deal inpaperwork , many Maine businesses , l ike lobstering ,are turning to online eGovernment applications tomanage a variety of traditionally paper-intensivetransactions .

M aine C hie f In form ation O ff icer D ick Thompsonsaid the sta te ’s origina l eGovern ment goals lentthemselves to the self-funded model offered by N IC . “ We w a nte d to provid e a se l f-su pport in geGovern ment porta l to the cit izens of M aine .”

D epartm ent o f A d ministra tive and Financia lServices Commissioner Rebecca Wyke and formerSecretary o f S ta te D an Gw adosky played large roles in convincing the state Legislature that aneGovernment solution would not only save moneybut also improve service for Maine residents. O nceeGovernment legislation was in place , the statebegan pursuing companies to participate . It soonbecame clear NIC was the leading contender.

“ NIC sa w va lue in the sta te o f M a ine , ” sa idThompson. “They looked at our entrepreneurial spiritand the legislation we had in place . They were by farthe most viable bidder. I’m not sure there was anotherbidder we could have accepted .”

The self-funded model was at the foundation ofMaine ’s move to partner with NIC .

In return for covering the in frastructure and development costs to manage Maine ’s state portal, NIC received a small fee for certain transactions

processed online . This allowedthe state to avoid spending gen-eral fund money on the project.

Now, with an active and vibranteGovernment portal, a variety ofonline transactions are gainingpopularity. From lobster fishinglicenses to corporate filings, NIChelps Maine improve governmentservices and save money.

“ O ne of the most popular serv-ices we ’ve put out is for businesses to file their annualreports,” said Thompson. “ The adoption rates are offthe charts.

“ NIC is a partner of ours . I a m a supporter of themand their work in M aine . We have been very suc-cessful with our porta l , and it ’s been highly rankednationa lly for a long time .”

The Maine Idea

This Government Technology’s Public CIO Thought Leadership Profile was sponsored by NIC . Copyright © 2005 Public CIO . All rights reserved. Printed in USA .

“We have been very successful withour portal, and it’s been highly rankednationally for a long time.”— D ick Thompson, Chief Information Officer, Maine

The Pine Tree State has deepeGovernment roots.

Lobster harvesters and other fishermen in Ma ine no longer need to stand in line forthe ir fish ing licenses.
