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Economic Function of Government - Presentation Transcript: Business-To-Government (B2G) Is A Derivative of

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Economic Function of Government - Presentation Transcript: Business-To-Government (B2G) Is A Derivative of

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Business-to-government (B2G) is a derivative of B2B marketing and often referred to as a

market definition of "public sector marketing" which encompasses marketing products and
services to various government levels - including federal, state and local - through integrated
marketing communications techniques such as strategic public relations, branding, marcom,
advertising, and web-based communications.

B2G networks provide a platform for businesses to bid on government opportunities which are
presented as solicitations in the form of RFPs in a reverse auction fashion. Public sector
organizations (PSO's) post tenders in the form of RFP's, RFI's, RFQ's, Sources Sought, etc. and
suppliers respond to them.

Government agencies typically have pre-negotiated standing contracts vetting the


vendors/suppliers and their products and services for set prices. These can be state, local or
federal contracts and some may be grandfathered in by other entities (ie. California's MAS
Multiple Award Schedule will recognize the federal government contract holder's prices on a
GSA General Services Administration Schedule).

Economic Function of Government - Presentation


Transcript
1. The Functions of Government in our Economy
2. Regulate Business Government regulation has four main purposes:  Preventing abuses-
prevents business from taking  unfair advantage of workers (discrimination, etc.) Protecting
consumers-FDA, FCC, SEC  Limiting negative externalities-limit the negative  effect of the
economy on citizens (pollution, traffic congestion, soil erosion, etc.) Promoting competition-
creating and enforcing of the  anti-trust laws (no monopolies)
3. Provide Public Goods a special type of goods or services that the  government tries to supply to
its citizens streetlights, national defense, court systems,  correctional institutions, law
enforcement merit goods-a good that is considered  “socially acceptable”
museums→Smithsonian Institute  demerit goods-a good that is considered  “socially
unacceptable” alcohol, tobacco, firearms→strict taxation and/or  regulation
4. Redistribute Income using taxes to assist citizens in need  Social Insurance Programs-MUST 
PAY TO RECEIVE Citizen’s paychecks  Pay benefits to retired and/or disabled  workers social
security  worker’s compensation 
5. Redistribute Income Public Assistance Programs-RECEIVE  REGARDLESS OF WHETHER TAXES
HAVE BEEN PAID INTO PROGRAM welfare-payments to citizen’s based on need  W.I.C.-women,
infants, & children  $ to single mothers; low income  C.H.I.P.-Children’s Health Insurance
Program  Medicaid-free healthcare for low income persons 
6. Ensure Economic Stability keep the unemployment rate low  keep the inflation rate low  a rise
in the general price level of goods  and services

 
The advantages and disadvantages of economic growth are fiercely debated by economists, environmentalists and other
commentators. In this note we consider some of the economic and social costs and benefits from expanding levels of
production and consumption. In particular we focus on the idea of sustainable growth.

The Benefits of Economic Growth

According to the UK government, ‘a healthy economy leads to higher living standards and greater prosperity for
individuals. It also helps businesses to be profitable, which generates employment and income’. This quote highlights
some of the benefits of growth – developed further below:

Improvements in living standards: Growth is an important avenue through which better living standards and lower rates of
poverty can be achieved. This is particularly true for countries who regard growth as a key route for poverty reduction
among their population. According to a report published in August 2004 by the Asian Development Bank (ADB), rapid
growth in many of the countries in the Asian region has reduced the number of people living on less than $1 a day fell to
22% of the region's population in 2002. That compares with 34% in 1990 and shows "considerable progress in the fight
against poverty."

Rising Employment: Growth stimulates higher employment. As we can see from the chart below, the sustained growth in
the British economy since 1993 has helped to bring about a large rise in total employment, the number of people in work
has risen from 2.53 million at the start of 1993 to nearly 29 million thirteen years later. This is a very impressive
employment creation record, much better than most other countries in the European Union.

The accelerator effect of growth on capital investment: Rising AD and output encourages investment in capital machinery
– this helps to sustain growth by increasing LRAS.

Greater business confidence: Growth has a positive impact on company profits & business confidence – good news for the
stock market and for the growth of small and large businesses.

The “fiscal dividend” to the government: Government finances are cyclical in nature because a growing economy boosts
the tax revenues flowing into the Treasury and it also provides the government with more money to finance spending
projects.

Potential environmental benefits – richer countries have more resources available to invest in cleaner technologies. And,
as nations move to later stages of development, energy intensity levels start to fall. Much depends on how many
resources an economy is willing to devote to environmental improvement and protection. Over the last thirty years, the
ratio of energy consumption per unit of GDP has fallen quite significantly. The reduction in energy intensity is a
reflection of improvements in production technologies and also a gradual switch towards a low carbon economy. Much
more progress needs to be made. Organisations such as the Carbon Trust sponsor research into low carbon technologies
and many environmental groups believe that greater investment should be made in alternative sources of energy.

“We now expect to live on average 30 years longer, to work almost half the amount of time we used to every year, and to
enjoy an array of new goods and services, including air travel, antibiotics, computers and televisions. Economic growth
and rising living standards has also meant a cut in rates of carbon emissions and natural resource depletion never possible
in the 20th century”
Source: Professor Nick Crafts, 2002 Royal Economic Society Public Lecture, December 2002

The Disadvantages of Economic Growth

Economic growth does not come risk-free. Although our material progress can be measured in part by the growth of
national output, income and spending, if the economy grows too quickly, it can bring about short and long-term
problems.

Inflation risks: There is the danger of demand-pull and cost-push inflation if demand grows faster than long run
productive potential High and rising inflation can be destabilizing for an economy because it puts pressure on interest
rates to rise and can cause a loss of competitiveness for domestic businesses in international markets

The environment: Economic growth cannot be separated from its environmental impact. Fast growth of production and
consumption can create negative externalities such as increased noise and air pollution and road congestion.
Environmental damage can have a negative effect on our quality of life and limits our sustainable rate of growth. For
example, road transport is responsible for 25% of UK CO2 emissions once emissions from fuel processing and vehicle
manufacturing are taken into account.

Inequalities of income and wealth: Not all of the benefits of growth are evenly distributed. We can see a rise in real
GDP but also growing income and wealth inequality in society which is reflected in an increase in relative poverty. The
Gini coefficient is one way to measure the inequalities in the distribution of income and wealth in different countries.
The higher the value for the Gini co-efficient (the maximum value is 1), then greater the inequality.  Countries such as
Japan, Denmark and Sweden typically have very low values for the Gini coefficients; whereas African and South American
countries have an enormous gulf between the incomes of the richest and the poorest elements of the population.

Regional disparities: Although average living standards may be rising, the gap between rich and poor can widen leading
to an increase in relative poverty and a widening of the gap between different regions.

Sustainability of Economic Growth

Many of the world’s most valuable finite resources are being extracted at such a rapid rate that it questions the long-
term sustainability of growth. Renewable resources are also being depleted because of over-consumption. Examples
include the destruction of rain forests, the over-exploitation of fish stocks and loss of natural habitat created through the
construction of new roads, hotels, retail malls and industrial estates. Some of the main environmental threats include:

 The depletion of global resource base and the impact of global warming. There are plenty of examples around
of the “tragedy of the commons”, the permanent loss of what should be renewable resources that result from
over-extraction of some of our environmental resources.
 A huge expansion of waste and pollution of the environment
 Over-population (particularly in urban areas) putting pressure on scarce land and other resources
 Species extinction leading to a loss of bio-diversity

Pollution in Guangzhou – China’s fast growth is creating huge environmental concern

China hit by rising air pollution

Pollution problems have grown along with China's economy. Rising sulphur dioxide emissions in China are causing
environmental harm and economic loss according to a new report from the Chinese government. China is already the
world's largest sulphur dioxide polluter, emitting nearly 26m tons of the gas in 2005. This was a 27% increase since 2000
and coincided with a rise in coal consumption. The gas contributes to acid rain, which damages buildings, soil and crops,
and can cause health problems in humans. Much of the pollution came from burning coal. Coal accounts for 70% of China's
energy consumption. There is mounting concern over the environmental impact of China's rapidly expanding economy. In
July, China announced it planned to spend 1.4 trillion Yuan ($175bn) over the next five years to improve water quality,
and cut air and land pollution and soil erosion. In July 2006, the US Environmental Protection Agency estimated that on
certain days nearly 25% of pollution in the skies above Los Angeles could be traced to China.
Adapted from news reports, August 2006

Green National Income Accounts

National income accounts have not, until recently, made any adjustment for the environmental impact of economic
growth. Critics argue that because of this omission, the statistics misrepresent improvements in social welfare. For
example, no allowance is made for environmental depletion or money spent on correcting environmental damage that
is actually recorded as an addition to GDP. GDP only records marketed transactions - at present, there is no market for
many important environmental resources and it is also difficult to place monetary values on them.

One alternative measure is the Index of Sustainable Economic Welfare (ISEW) developed by economists at the New
Economics Foundation who have been at the forefront of developing a system of environmental accounts that make
allowance for the impact of economic activity on the environment. The ISEW adjusts official data on real national output
and makes an allowance for defensive spending (i.e. that incurred in cleaning up for pollution and other forms of
environmental damage, together with money spent commuting to work). Not surprisingly, the net growth of ISEW is well
below that of the official data for national income, output and spending.

What is Sustainable Development?

The term 'sustainable' means 'enduring' and 'lasting' and 'to keep in being'. So, sustainable development is economic
development that lasts! According to one of the finest environmental economists of his generation, the late David Pearce,
sustainable development means that each generation should pass on at least as much "capital" as it inherits, the Pearce
approach defines capital in broad terms, to include physical capital (machinery and infrastructure); intellectual capital
(knowledge and technology) and also environmental capital (environmental quality and the stock of natural resources).

In 1987 the Bruntland Commission on Environment and Development defined sustainable development as: "development
that meets the needs of the present without compromising the ability of future generations to meet their own
needs”. The current Government supports the concept of sustainable development and focuses on four main objectives
set out below:

 Social progress which recognises the needs of everyone: Everyone should share in the benefits of increased
prosperity and a clean and safe environment. Needs must not be met by treating others, including future
generations and people elsewhere in the world, unfairly.
 Effective protection of the environment: We must limit global environmental threats, such as climate change
to protect human health and safety from hazards such as poor air quality and toxic chemicals and to protect
things which people need or value, such as wildlife, landscapes and historic buildings.
 Prudent use of natural resources: We need to make sure that non-renewable resources are used efficiently and
that alternatives are developed to replace them in due course. Renewable resources, such as water, should be
used in ways that do not endanger the resource or cause serious damage or pollution.
 Maintenance of high and stable levels of economic growth and employment, so that everyone can share in
high living standards and greater job opportunities.

The UK government publishes an annual report on progress towards sustainable development.

Growing interest in the impact of economic activity on our natural and man-made resource base has led to the
development of concepts such as ecological footprints and carbon footprints. The BBC has recently focused on this issue
with a series of reports on ethical man.

Many environmentalists are inherently cautious about the long term impact of growth on our living environment. They are
deeply sceptical about the effects that growth might have in preserving and or improving it. But others argue that the
pessimists are over-stretching their case. Bjorn Lomborg in “The Sceptical Environmentalist” challenges widely held
beliefs that the environmental situation is getting worse and worse. His personal web site is here.

Key points

 Economic growth provides important long-term benefits for the population of a country. It can be a route out of
poverty and it creates jobs and wealth.
 Inequalities in income and wealth mean that, in many countries, the benefits from growth are not distributed
evenly. This raises questions of equity (fairness) and impacts on our interpretations of how to measure standards
of living.
 The environmental consequences of growth cannot be ignored.
 Sustainable growth meets the needs of the present without compromising the ability of future generations to
meet their own needs.
 There are environmental benefits from countries becoming richer
 However, there are major concerns about the impact of fast growth on the world’s environmental resources.
Economic growth is just one indicator of a country’s economic performance. Alternative measures, such as the
United Nation’s Human Development Index & the Index of Sustainable Economic Welfare, take account of other
indicators.

 
Importance of Business to Government
By James Withers, eHow Contributor

Importance of Business to Government

Running a government is a costly process. Many of the world's most powerful nations heavily
rely on investments generated from Big Business negotiations. However, business interests are
also subject to supervision by the government, which alternates between philosophies of
regulation and deregulation of its nation's economy. Additionally, governments of nations around
the world must consider the ramifications of global economic trends upon each of their own
economies.

Interweaving Interests
1. Big Business concerns greatly influence government policy. Early in the history of the United
States, Treasury Secretary Alexander Hamilton lobbied for the creation of a central bank, called
the Bank of the United States. Biographer William Graham Sumner argues that Hamilton's
motive for creating this bank was to interweave the "interests of wealthy men with those of
their government." Over 200 years later, critics of government-sponsored bailouts have
lamented the fact that business entities receive funding that is poorly earmarked and crudely
documented. Thus, many citizens feel that a more clearly defined separation should exist
between a nation's government and business interests.

Emergent Nations
2. Financial stability eludes many emergent nations, which seek access to investment dollars.
Practitioners of arbitrage often aim to take advantage of such financial stability by offering long-
term loans that will guarantee the practitioners enormous returns. Such arbitrage in foreign
markets usually involves investments from a large number of constituents, as well as a team of
lawyers. Examples of emergent markets that are targeted by such arbitrage investors include
countries in Latin America, Eastern Europe, the former Soviet Union, Africa and parts of Asia.

Busting Monopolies
3. Business is not always fair. Sometimes, large corporations can dwarf small businesses and
ensure their extinction. For many citizens, impersonal corporations grow to represent the dark
side of free enterprise. Ultimately, these citizens make appeals to lawmakers and public officials
to prevent robust corporations from monopolizing power in the marketplace. Historically, anti-
trust legislation was used to halt J.P. Morgan's stranglehold on the railway market during the
presidency of Theodore Roosevelt.

Eminent Domain
4. Governments are fickle in their needs. For example, in the United States of America, rights of
land ownership are usually championed by the nation's government. However, on occasion, the
government may abrogate the interests of the owners of private property. If certain land is
deemed necessary for public use, the government may take control of this property as long as
just compensation is provided to the land's owner. In many cases, acts of eminent domain serve
business interests in addition to governmental interests. For example, in certain cases, houses
within a neighborhood may be purchased and demolished in order to facilitate a mall's
expansion.

Global Firms
5. Business concerns can sometimes reach beyond a single government's regulatory powers by
adopting an international character. Business firms may seek a global presence to capitalize on
sales opportunities in foreign markets, as well as to outsource labor in order to take advantage
of a less expensive work force. Despite these advantages to business, governments must
intervene at times to ensure that products of inferior quality (which may pose a public risk) do
not emerge from overseas production plants.

Advantages

 They can provide huge monetary rewards with just one proposal. Some government
grants can total in the millions of dollars.
 Those who receive government grants find it easier to raise money from other
government and private sources.
 These grants can be prestigious and give your organization instant credibility and public
exposure.

Disadvantages

 Government grants are usually on a reimbursement system, so if you are a cash-strapped


organization, you might face hardships.
 Preparing government grant proposals usually require hard work and tons of research and
planning. They are not easy to write.
 Government grants come with requirements to spend the funds according to a complex
set of regulations and laws that could increase your bottom line as you may need the
expertise of an attorney, accountant, or other professional.
 Government grants often come out with a set of rules for who are eligible to apply that
can be so specific that it excludes many organizations. And they tend to demand certain
activities must be included in any project to be funded -- which may increase an
organization's expenses.
 Government grants are VERY competitive. Many organizations are going after the same
pot of funds.

Government grants are a double edged sword. While the simple fact is that they are free money
to complete a set task, one must understand that there is a big difference between free money and
easy money. Government grants come with quite a bit of regulation and red tape. This is of
course designed to help prevent grant fraud and misuse. However, it makes getting these grants
sometimes a lengthy process.

Still, the benefits far outweigh the frustrations. When you consider the fact that you can receive
thousands of dollars to eliminate debt or start a small business or even go back to school, the red
tape and bureaucracy shows itself for what it is, a minor inconvenience. Ultimately you must be
the one to decide if a government grant is right for you.

Government-to-Business (G2B) Web Services


for Online Permitting
Vertical Applications that Drive Long-Term GDP Growth
Abstract
An in-depth discussion of the online permitting process and the defining differences between
first-tier and
second-tier G2B applications. Pinpoints eight major attributes required for a successful online
permitting
process. Also provides a clear explanation of the construction process and the role the
permitting/code
enforcement agencies play in this complex process.
The Emerging G2B Sector
Overview
As e-government projects expand and diversify, the distinction between consumer and
business-focused
applications becomes more evident. The e-government industry is developing into two worlds:
consumer-togovernment
(C2G) and business-to-government (B2G). Each class of applications has unique characteristics
that enable new vertical markets to flourish and determine an evolutionary pathway toward
commercial
success.
The differences between the consumer and business e-government applications include the
depth of
functionality; the level of information available; the extent of integration between legacy and
ERP systems;
the capacity to handle high-volume transactions, the duration of transactional relationships and
the ability
to improve workflow, not just provide a convenient service.
A significant B2G application sector emerging in e-government is online permitting and
inspections for the
construction industry. As construction forms approximately 14% of the GDP, an acceleration of
the
permitting process has the power to make a solid economic impact while greatly improving the
convenience
to builders and operational efficiency of government agencies. Yet to address this challenge, the
unique
B2G attributes must be used as the performance standard and serve as a framework for a new
vertical
market.
There are eight major attributes that must be present for a successful online permitting process.
A true B2G
web application for permits must:
Include a complete integration of systems, not just a front-end interface
Parallel existing processes as extensions, not replacements, of workflow
Support multi-disciplinary cross-functionality to stimulate teamwork
Support interdependencies so that critical-path work is not impeded
Enable real-time communications between team members for speed
Provide access to multiple databases and database types for flexible operations
Include action and management steps that offer greater project control
Enable long-term management of projects with archive
July 2002
PAGE 2
Government-to-Business (G2B) Web Services for Online Permitting
© Copyright 2005 Accela, Inc. All Rights Reserved.
Future implications of this new vertical market go beyond eliminating the need to stand
in line or
wait on the phone for a permit. The operational efficiencies for government and the
economy will
continue to grow with the advent of wireless technologies that push computing power to
the edge of
the 'Net, and by connecting permit approvals to ERP and procurement to increase
project
deployment velocity.
G2B vs. G2C Applications
Just as e-commerce diverged into the Business-to-Consumer (B2C) and Business-to-Business
(B2B) sectors,
e-government is also giving rise to two distinctive markets - Consumer-to-Government (G2C)
and Businessto-
Government (G2B). In both universes, the consumer and business applications are
fundamentally
different from each other. Consumer-to-Government transactions are generally simple, one-step
processes
such as paying taxes, paying parking tickets, registering motor vehicles, registering to vote, or
renewing
drivers licenses. Business-to-Government transactions, on the other hand, are more often multi-
level
processes that involve multi-disciplinary functions and multiple transactions that are often
contingent upon
one another.
Most currently available e-government applications are targeted for the G2C market and focus
on providing a
complete, across-the-board solution that addresses only simple, one-step transactions. There
are numerous
examples of Web sites focused on these types of transactions that offer helpful services to
citizens but fail
to address the more complex requirements of the G2B market.
While both e-government sectors will significantly affect the digital economy, G2B has major
implications
beyond G2C. The G2B wave will fundamentally change the way business works and interacts
with
government. As simple processes give way to effective G2B applications, true G2B Web
services will deliver
detailed functionality to address specific vertical markets. Within the G2B web applications
marketplace are
two distinct tiers of performance and integration levels. The first tier, exemplified by firms such
as EZgov,
GovWorks, NetClerk, PermitsNow or Permits.com, offers basic G2B functionality such as
auctions, job
listings or basic municipal transactions tailored to business applications. These sites also offer
diversified
services for consumers as well, but lack the true back-end integration required to achieve
efficiencies
inherent with automated processes. The second tier of performance and integration demands a
much deeper
connection between business users and government IT systems. Yet achieving this high level of
performance
requires an industry vertical-specific architecture, real-time connections for immediate results,
integration
between desktop applications and back-end management systems, significant domain expertise
and, ideally,
an existing installed base of customers ready to enhance their systems to an improved workflow
process.
Among the important Second Tier G2B business sectors is the online management, tracking,
and
acquisition of building permits. Though the notion of building permits may seem small compared
to military
procurement or other large financial transactions, the economic implications are very large. The
U.S.
construction industry is $1.3 trillion in size, representing approximately 14 percent of the Gross
Domestic
Product (GDP), so accelerating permits is key to the nation's economic growth. As such, permit
management
is a critical-path G2B application. For these reasons, a closer examination of this industry sector
is required
in order to have a complete e-government evaluation and understanding of future trends.
July 2002
PAGE 3
Government-to-Business (G2B) Web Services for Online Permitting
© Copyright 2005 Accela, Inc. All Rights Reserved.

The Construction Industry Permitting Process


There are approximately 34,000 government entities that issue some form of permits, 17,000 of
which
issue permits primarily for construction. Nationally, there are approximately 100 million building
permits
issued each year. Of these, approximately 50 percent fall into the simple repair/replacement
category,
representing approximately $130 billion of the $1.3 trillion U.S. construction industry. The rest
are
categorized as complex permits, requiring the submission and approval of various documents
including site
plans and detailed construction drawings. Such projects require multiple permits, multiple
inspections, and
collaboration among a variety of designers, contractors, subcontractors, vendors, and
government
departments. The management process for these complex permits stands to reap the greatest
benefit from
online permitting.
Simple vs. Complex Permits
Simple permits (also referred to as over-the-counter permits) do not require the submission of
plans. These
permits are generally for repair of existing structures. The process for obtaining a simple permit
involves
submitting an application that describes specific details about the project, paying the permitting
fee,
obtaining approval, and printing out the permit. The process of applying for and obtaining a
simple permit
can easily fall into the "one-step" transaction category handled by many G2C applications.
However, the
management process for even simple construction projects extends beyond merely obtaining
the document
to include status checking and inspection scheduling. A building professional may access an
agency's Web
site between 5 and 20 times to "pull" a simple permit, including research, application
processing, status
checking, and inspection scheduling.
Complex permits require the submission and approval of documents such as plat plans and
construction
drawings. These documents are considered "living" documents and are connected to the entire
project
management process. They must be updated in real-time and accessible to all interested
parties from the
time of application until the project reaches substantial completion. Complex permits involve a
multi-level
process that demands collaboration between architects, engineers, contractors, subcontractors,
and vendors,
plus multiple government departments as well.
Rather than requiring just one overall building permit, large construction projects require
multiple,
interdependent, complex permits that must be pulled by the various licensed trades involved in
the project.
Such construction projects also require multiple inspections at various milestones in the
construction
process. Because the timely acquisition of permits is so crucial to complex project management,
the two
processes are inextricably connected. This cross-disciplinary management demands real-time
collaboration
and access to information.
The G2B Difference
Because high-performance Second Tier G2B applications such as the online management of
complex
permits involve a deeper, multi-level process, eight core differences will determine success in
this vertical
market:
1. Depth of Functionality and Complexity of Task to Be Performed - As opposed to "one-
stop," unifunctional,
consumer-oriented applications, G2B requires applications that support a broad range of
different, yet
interconnected functions.
July 2002
PAGE 4
Government-to-Business (G2B) Web Services for Online Permitting
© Copyright 2005 Accela, Inc. All Rights Reserved.
2. Extent of Integration - The process involves more than simply submitting documents and
obtaining a
permit. G2B applications must support multi-process project management, linking CAD
(Computer-Aided
Drafting) applications to permit review systems and connecting all participating parties to the
examination
and revision process.
3. Detailed Information - In the case of building permits, all concerned government
departments and all
third parties involved in a project - general contractor, architects, engineers, subcontractors -
need access to
detailed plans and supporting documents in a single location. This level of detail and
centralization enables
faster processing.
4. Higher Volume of Transactions - Though online tax filing can be high-volume, it is cyclical,
occurring
primarily once a year. Permits often require multiple communication cycles and are ongoing,
year-round.
5. Duration of Relationship - Typically, business relationships of any kind require
documentation archives
for legal and other long-term purposes. This necessitates storage and access, with a level of
detail not
required for simpler, consumer-focused applications.
6. The Power to Improve Workflow and Profitability - A major issue with government is how
to improve
efficiency, yet it doesn't occur by replacing an existing process, but rather by providing
increased
communication channels and access to information. For example, many permitting processes,
rather than
supporting a client-server model, involve a sequential, linear approval cycle that requires
multiple parties to
collaborate in real-time on a given document or permit. This important point of differentiation
also
underscores the two vested parties: government and business.
7. Higher Transaction Value - Simple permits generally cost up to a few hundred dollars, while
complex
permits can quickly scale to hundreds of thousands of dollars. Governments that can efficiently
handle
complex permits and make the process more friendly and collaborative for all parties involved
stand to
attract to their jurisdiction developers and businesses that are eager to build new, high-dollar
projects. The
value of this process to the tax base of a municipality has wide-ranging implications.
8. Legal Nature of Transactions - Both government actions and approvals on permit
applications and their
supporting documents have significant legal implications. Historically, professional seals and
signatures
were required to certify that the supporting documents met all applicable codes and standards
and were
prepared by properly licensed professionals. To maintain the legal requirements and integrity of
the
documents in the complex permit process, the employment of digital signatures will be critical.
This
requirement is probably the most dramatic differentiation between G2C and G2B applications
Improving – Not Replacing – Existing Processes
Government agencies want to find ways to improve their approval processes, as overwhelmed
systems
impede workflow and create bottlenecks. The Internet enables building and planning
departments to offer
construction professionals and the public convenient and cost-effective self-service access to
services and
information without increasing agency resources. New systems designed to bring the building
permit process
online must accomplish complete integration and automation of the entire process - not just
simple trade
permits, but complex permits as well. Online systems will provide a much more efficient process
to review
projects, one that complements - but does not replace - the existing workflow.
July 2002
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Government-to-Business (G2B) Web Services for Online Permitting
© Copyright 2005 Accela, Inc. All Rights Reserved.
The online process must parallel the existing processes, both for contractors and for
government. For
contractors, Web applications must function as extensions of their existing project management
applications, creating a workflow companion. For government, a new process shouldn't change
the way the
agency works, but rather it should effectively improve and facilitate the existing process. Many
efforts have
been made over the years to change established processes, and most have failed miserably.
The government
permitting process suffers more from a lack of access and collaboration rather than a flawed
review
procedure. Permit inspectors are experts in their fields. They don't need new methods, but
rather increased
access and better communication channels with contractors.
In order to successfully integrate with existing procedures, a viable online permit management
system must
be multi-disciplinary, supporting multiple functions that are often contingent upon one another.
For
example, instead of reviewing a plan for structural/framing construction, revising it, then moving
along to
mechanical or electrical, all plans can be submitted, reviewed and amended by subcontractors
in parallel,
saving considerable time in the approval procedure. This collaborative process means that
critical-path
approvals don't hold each other up, and projects progress faster and more smoothly.
In order to facilitate successful collaboration, the permit management process must enable real-
time
communication, providing all the parties involved - contractors, sub-contractors, architects,
engineers,
permit examiners and onsite inspectors - access to a common set of electronic documents that
are updated
in real-time. This simultaneous access keeps all parties informed of changes and ensures
greater efficiency
and proper coordination of efforts. The issue of access is increasingly significant, as the new
model of
commerce means that business happens 24 hours a day, 7 days a week.
Additionally, to be truly functional, a permit management system must have the flexibility to
access and
search multiple databases. Frequently, information required to complete a review exists in more
than one
database, so savvy systems must support databases in multiple locations inside a firewall that
contain
multiple data types.
All construction projects have interdependencies, especially large-scale, commercial projects.
For example,
electrical and plumbing inspections must occur in a sequential manner before drywall and finish
work can
begin. By supporting the interdependencies of project review and inspections, the permit
management
system ensures that critical path progress is not impeded. It enables actionability and extends
manageability - providing greater control over the entire project management and permit
management
process.
Accela's Permit Management Solution
Accela is the market leader in permit automation solutions for local governments and building
professionals,
with permits for over $100 billion in construction being issued through their system last year.
The company
provides solutions that serve communities with populations ranging from 10,000 to multi-millions
and has
the largest installed base in the permit automation software industry, serving over 300 U.S.
cities and
counties with more than 50 million site addresses.
Accela has a long and successful history in the government software arena. The company was
created
through the merger of Sierra Computer Systems, Inc. and OpenData Systems, Inc., both long-
time leaders in
the permitting and G2B software application industries. Sierra Computer Systems, a specialist in
local
government software applications since 1979, was industry leader in the permit/case tracking
and activity
July 2002
PAGE 6
Government-to-Business (G2B) Web Services for Online Permitting
© Copyright 2005 Accela, Inc. All Rights Reserved.
management market. OpenData Systems, a developer and supplier of ERP applications to
governmental
agencies, successfully implemented permit and license tracking systems in key U.S. cities.
Together, the
two companies provided government software applications to more jurisdictions than the rest of
the market
combined.
Unlike the bottom tier services for basic civic transactions, Accela is the only solution that
provides
complete end-to-end integration - from the back-office ERP, to databases, to the front-end
permitting
process. Accela also uses XML protocols, enabling connections to back-end systems and other
Web
applications with greater flexibility and speed. Accela enables dynamically built pages that
combine the
information from multiple databases and includes detailed error checking for compliance,
ensuring that
information under review complies with the unique zoning conditions and requirements of a
particular
jurisdiction.
Accela delivers a hosted front-end interface that enables agencies to deploy e-government
services quickly,
securely, and effectively. Because Accela is a hosted solution, agencies do not have to
purchase specialized
Internet hardware, software, and security systems. Accela integrates seamlessly with the
agency's existing
permit automation software system for optimal productivity and efficiency. Data tables are
updated directly
in the agency's databases and agency staff can access the information through their usual
permitting
interface, without the need to learn or use another system.
Accela can interact with multiple types of databases, enabling a diverse flow of information and
documents
to converge on the submission, revision, and approval processes. Accela updates all files in
real-time, as
opposed to other applications that update in batch files, so information is always current and
available.
Building professionals and the public can use their Web browsers from the convenience of the
construction
site, office or home to connect with the permitting system via the agency's Web site or directly
through
www.accela.com. Accela then handles all the requests automatically with the agency's
permitting system
and sends responses back to the user's browser within seconds. This single, complete solution
goes beyond
the simple forms processing of other systems and includes applications, reviews, revisions,
supporting
document submission, simple payment options, inspection scheduling, security, scalability, and
the ability
to immediately print approved simple permits.
Together, the benefits of the Accela system go far beyond the elimination of contractors waiting
in line or on
the phone, and the long, frustrating delays commonly associated with the permitting process.
The greatest
benefits from this integrated, process-oriented approach include:
System Architecture
Accela's system is built on a three-tier architecture with a data layer, application layer and
presentation
layer. The three-tier architecture assures that the integration with the permitting agency's
databases and
permitting system is robust, load-balanced, and secure.
Data Layer - The data layer consists of the agency's databases and permit automation system.
By using
ODBC-compliant database technologies, Accela quickly and efficiently interacts with the agency
permit
automation system and databases to search, retrieve, and insert data.
July 2002
PAGE 7
Government-to-Business (G2B) Web Services for Online Permitting
© Copyright 2005 Accela, Inc. All Rights Reserved.
Application Layer - The application layer resides within the agency's firewall and provides the
interface
between the presentation layer and the data layer. This layer contains the Web application
server running on
Windows NT and the business rules and logic that enable heterogeneous data structures to
interact with the
presentation layer.
Presentation Layer - The presentation layer is a Web-based, front-end application that is
hosted at Qwest
Communications, a tier-1 hosting facility. This layer provides the user-friendly graphical user
interface that
the permitting public uses to interact with the agency's services. Built on a robust multi-server
architecture
with load-balancing software and fail-over capabilities, Accela's system has been engineered to
provide
consistent round-the-clock availability and quick navigation to all functionality.
Virtual Private Network - The presentation layer interacts with the application layer through a
secure,
encrypted Virtual Private Network (VPN), utilizing an innovative XML communication protocol
that is
compliant with Microsoft's Data Object Model. As part of its system package, Accela installs a
Netspect
firewall and VPN hardware device to secure and encrypt external traffic into the agency's
permitting system
and to avoid disrupting the agency's current network configuration.
The VPN enables a strong layer of security, which is crucial for businesses accessing and
transmitting
sensitive documents. Because Accela sets up a separate firewall at the agency and transmits
data using a
VPN connection, the agency's information and live data are protected from random Internet
traffic or hacker
attacks. Accela's network configuration assures security, data integrity, and optimal
performance of the
service application. The custom-designed hardware platform provides maximum throughput for
high-volume
sites, eliminating bottlenecks imposed by traditional data network firewalls.
Because Accela's system is VPN-based, it provides customizable functionality by municipality
and crossmunicipality
reach (regionally or even statewide). This allows cities to be interconnected, enabling
contractors to track permits in multiple jurisdictions. This VPN architecture provides scalability in
both size
and access. In size, the VPN ensures high reliability for large-volume transactions. For access,
the VPN
enables contractors with projects in multiple jurisdictions to access permit status and
requirements through
a single source, saving time and review cycles for all involved.
The Future of Online Permitting
As new technologies are incorporated into the system, process efficiency will be further
increased. For
example, by enabling plan checking - prescreening of plans against applicable codes - future
systems will
make the permitting process more foolproof. By providing for storage and access to graphical
images and
other supporting media, contractors and other authorized parties can have access to relevant
images, such
as digital photographs taken by inspectors. Wireless connectivity will allow contractors greater
control over
the permitting process by enabling them to check permit status, verify that crucial inspections
have been
scheduled, review vital documents, and manage the entire process at any time from their home,
office,
construction site, or virtually any other location.
As a market dynamic, the basic functionality and low level of integration in First Tier G2B
applications will
diverge considerably from the deep integration, architecture, real-time connections, and domain
expertise of
Second Tier applications. Additionally, firms that master these Second Tier applications will
capture
prominence in their core vertical markets and diversify into new sectors, leveraging the strength
of their
existing deployment model.
July 2002
PAGE 8
Government-to-Business (G2B) Web Services for Online Permitting
© Copyright 2005 Accela, Inc. All Rights Reserved.
First and foremost, the future success and expansion of online permitting services requires
complete
integration of construction project management with the permitting process. By providing tighter
integration
with collaboration services, online permitting management systems will deliver last-mile
functionality,
significantly accelerating the entire construction process, increasing efficiency at every level,
and greatly

reducing the cost of project management.

Read more:
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s#ixzz1ActeG3P4

Read more: Importance of Business to Government | eHow.com


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Business-to-business (B2B) describes commerce transactions between businesses, such as


between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting
terms are business-to-consumer (B2C) and business-to-government (B2G).

The volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C
transactions. The primary reason for this is that in a typical supply chain there will be many B2B
transactions involving sub component or raw materials, and only one B2C transaction,
specifically sale of the finished product to the end customer. For example, an automobile
manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and
rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a
single (B2C) transaction.

B2B is also used in the context of communication and collaboration. Many businesses are now
using social media to connect with their consumers (B2C); however, they are now using similar
tools within the business so employees can connect with one another. When communication is
taking place amongst employees, this can be referred to as "B2B" communication.
[edit] Etymology
The term "business-to-business" was originally coined to describe the electronic
communications between businesses or enterprises in order to distinguish it from the
communications between businesses and consumers (B2C). It eventually came to be used in
marketing as well, initially describing only industrial or capital goods marketing. Today it is
widely used to describe all products and services used by enterprises. Many professional
institutions and the trade publications focus much more on B2C than B2B, although most sales
and marketing personnel are in the B2B sector.

Business-to-consumer
From Wikipedia, the free encyclopedia

Jump to: navigation, search

Business-to-consumer (B2C, sometimes also called Business-to-Customer) describes activities


of businesses serving end consumers with products and/or services.

An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The
transactions that led to the shoes being available for purchase, that is the purchase of the leather,
laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be
considered (B2B) transactions.

Contents
[hide]

 1 Types of Business to Consumer


 2 Advantages
 3 Unique attributes
 4 See also
 5 Reference

[edit] Types of Business to Consumer


While the term e-commerce refers to all online transactions, B2C stands for "business-to-
consumer" and applies to any business or organization that sells its products or services to
consumers over the Internet for its own use. When most people think of B2C e-commerce, they
think of Amazon, the online bookseller that launched its site in 1995 and quickly took on the
nation's major retailers. In addition to online retailers, B2C has grown to include services such as
online banking, travel services, online auctions, health information and real estate sites. Peer-to-
peer sites such as Craigslist also fall under the B2C category.
B2C e-commerce went through some tough times, particularly after the technology-heavy
Nasdaq crumbled in 2000. In the ensuing dotcom carnage, hundreds of e-commerce sites shut
their virtual doors and some experts predicted years of struggle for online retail ventures. Since
then, however, shoppers have continued to flock to the web in increasing numbers. In fact, North
American consumers adopted e-commerce so much that despite growing fears about identity
theft, they spent $172 billion shopping online in 2005, up from $38.8 billion in 2000.

By 2010, consumers are expected to spend $329 billion each year online, according to Forrester
Research. What’s more, the percentage of U.S. households shopping online is expected to grow
from 39 percent this year to 48 percent in 2010.

In October 2010, an extension of B2C, B21 was coined. Whilst B2C includes all manners of a
business marketing or selling to consumers, B21 is specifically targeted towards an individual.
B21 requires specific Personalization for that individual. B21 requires Insight in order to create
the personalized experience.

[edit] Advantages
According to marketingterms "B2C businesses played a large role in the rapid development of
the commercial Internet in the late 20th century. Large sums of venture capital flowed to
consumers in the form of free online services and discounted shopping, spurring adoption of the
new medium." Business to Consumer e-consumer quickly developed as an alternative way for
companies to sell more products to a larger market.B2C e-commerce provided not only multiple
advantages to a company but also it the consumers. The main advantages for both the business
and consumer are that by opening their market up to B2C e-commerce trade they are reducing
transactions costs. Businesses usually ship their products to a number of stores to make them
visible to the consumer. However, by using B2C commerce they can instead showcase all of
their products on the internet which reduces the cost of transaction. B2C also allows their
costumers to better access information about different product and sellers which broadens the
selection available to their costumers. Business to consumer ecommerce is valuable to the
economy because it creates a more unique way for businesses and consumers to interact.[1]

[edit] Unique attributes


 Negotiation: Selling to another business involves haggling over prices, delivery and product
specifications. Not so with most consumer sales. That makes it easier for retailers to put a
catalog online, and it's why the first B2B applications were for buying finished goods or
commodities that are simple to describe and price.

 Integration: Retailers don't have to integrate with their customers' systems. Companies selling
to other businesses, however, need to make sure they can communicate without human
intervention. But Businesses Should Not Be Mean To The Consumer

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