BC OnLine: An Enterprise Alternative for Government Information Access1

Jeffrey Betts, BC Online2

ABSTRACT: More governments see electronic information access as a method to increase service, lower costs and increase revenues. British Columbia operates the BC Online service as an enterprise, creating both profits for government and high satisfaction for BC Online's customers. BC Online may provide a model for other jurisdictions contemplating like services.

RÉSUMÉ: De plus en plus de gouvernements considèrent l'accès à l'information électronique comme un moyen d'accroître le service, de réduire les coûts et d'augmenter les revenus. Le gouvernement de la Colombie-Britannique exploite le service BC Online comme une entreprise, ce qui génère des profits et entraîne un haut niveau de satisfaction chez les clients de ce service. Le service BC Online est un modèle dont pourraient s'inspirer d'autres gouvernements songeant à offrir des services analogues.

More From Less...

Governments everywhere are asking their managers to do more with less, and in fact to make more from less--improve service while reducing cost, and at the same time increase non-tax revenues. The sale of government information is one area where governments look for these apparently contradictory benefits.

Delivering on this triple bind of better service, lower cost and increased revenues can be daunting, but there are opportunities to leverage governments' huge investment in information technologies to meet the first two goals. Governments must reconcile themselves to charging a price for their information in order to meet the third. While there is an ongoing public policy dialogue as to whether governments should charge for information created and maintained by tax dollars, in many jurisdictions this precedent is well established and accepted by administrations and information consumers alike.

BC OnLine is an example of a successful user-pay government information enterprise that has operated in British Columbia since 1989. It is profitable and runs without subsidy from the Province. It serves over 15,000 users in over 5,000 law practices, bank branches, real estate offices and other businesses in British Columbia, and its gross revenues in 1993/94 were over $32 million on a volume of about 4.2 million transactions. Its customers maintain that BC OnLine provides them with improved service and good value, and its customer base has grown by 10% to 15% a year since its inception.

While there are a growing number of government information access services in Canada and around the world, few operate without subsidy and fewer still enjoy the number of subscribers that BC OnLine does. Why has BC OnLine been so successful, and what can other jurisdictions learn from BC OnLine's experience?

BC OnLine Overview

BC OnLine is an electronic information service that retails a number of British Columbia Government databases to the private and public sectors. Customers serve themselves from their place of business using their own modem-equipped personal computers.

Available information includes:

Major customer groups are:

BC OnLine's customers often have a structural demand for registry data; a lawyer, for instance, cannot convey real estate without referring to the Land Title Registry several times throughout the conveyancing process.

Similarly, a bank lending money to a consumer for the purchase of a new car will almost always register a security interest in that car through the Personal Property Registry system.

Customers pay a retail price for each search or registration. Payment is managed through an automated deposit account system. Customers keep a positive balance on account and the system decrements the cost of each search or registration as the service is provided through BC OnLine.

Customers can refresh their deposit account balance by making a payment at over seventy-five Government Agent, Land Title, Companies, Personal Property or Assessment Authority offices throughout British Columbia, or by using an EFT (Electronic Funds Transfer) option to automatically replenish their deposit account.

Price for each transaction is set by the database owner. The BC Assessment Authority, for example, sets the retail price for a property assessment search. BC OnLine collects that fee and retains a set portion of it to defray its own costs, and remits the remainder to the Authority's bank account.

In essence BC OnLine acts as an information broker for government ministries and entities. BC OnLine owns no information itself, but provides an electronic distribution mechanism and requisite support services for ministries to electronically retail their information. BC OnLine does not replace traditional counter services for access to government databases, and customers can still go to government offices and get their information in paper form from ministry staff. BC OnLine simply provides an electronic access option.

BC OnLine is a service of BC Systems Corporation, delivered in partnership with data-owning ministries and entities of the Provincial government. As a Crown corporation, BC Systems manages one of the largest private networks and one of the largest datacentres in Canada on behalf of the Province, as well as providing a wide range of professional information technology services to the public sector.

BC OnLine customers are happy

In our last customer survey, 85% of respondents said they were either very satisfied or satisfied with BC OnLine. While we continually strive to improve customer satisfaction, these numbers do represent a high achievement for any enterprise, public or private. BC OnLine's benefits to customers are:

Extended hours of access to government registry data
BC OnLine is available from 8am to 8pm, Monday to Saturday, significantly extending the standard 8:30 to 4:30 Monday to Friday government office hours. Real estate professionals can access critical land information while completing deals on evenings or weekends, and auto dealers can check for security interest when taking cars on trade on a Saturday. Extended access shortens business processes and allows BC OnLine customers to provide better service to their customers in turn;
Access without regional bias
BC OnLine is accessible from anywhere in British Columbia via a local telephone call. A lawyer in Burns Lake now has access to government registry information equal to the lawyer in downtown Victoria or Vancouver. Before BC OnLine, a lawyer not practicing near a registry office faced higher costs and longer process time to complete similar transactions on behalf of clients. BC OnLine eliminates that inequity;
Simple pricing
BC OnLine works on a "pay as you play" basis, without subscription fees, sign-up or monthly maintenance costs. Customers pay only for the services they use, without hidden costs, and they pay the lowest available price for that information; and
High service levels
Customers have access to a toll-free HelpDesk during operating hours, with trained staff to help them through any problem they might encounter. BC OnLine also provides new customers with professionally written User Guides and a computer-based training diskette simulating a BC OnLine session. As well, the technical infrastructure that delivers BC OnLine enjoys over 99% uptime for all components, including network.
In short, BC OnLine is the cheapest, fastest, most convenient way for business to access government registry data. BC OnLine strives to provide service levels equal to or exceeding those of private-sector information services.

BC OnLine's government partners are happy

BC OnLine helps government meet those triple bind objectives of better service, reduced cost and increased revenues. The user-pay model eliminates cross-subsidy between programs and accurately allocates costs and revenues, leading to better management decisions. More business people serving themselves digitally means less overhead costs incurred by ministries for counter service, allowing government to reallocate resources to other program priorities. The enterprise model also allows BC OnLine to finance its own expansion and enhancement, without seeking annual funding through appropriation. Most importantly, customers see value in BC OnLine and are satisfied, so the reputation of government as a service provider is enhanced.

Critical Success Factors

A number of factors contribute to BC OnLine's ongoing success, and could be extrapolated to similar situations in other jurisdictions. A primary factor is BC OnLine's marketing strategy of retailing "need to know" information, not the "nice to know" variety. Structural demand for databases like the Land Titles Registry ensures the transaction volumes needed to achieve economies of scale. All information is not equal in the eyes of a marketplace, so BC OnLine tries to choose its product offerings based on measured demand.

If the information enjoys structural demand, interruption of electronic access to this information will cause hardship to BC OnLine customers and to their customers in turn. Reliability, availability and serviceability are truly components of BC OnLine's "product", and are critical to its market acceptance. If computers and networks don't operate reliably, customers will return to previous, predictable methods of access.

While BC OnLine does maintain admirable uptime statistics, reliability and availability are only part of the "usability" picture for customers. When their modem fails, they don't know how to request the exact information they require, or their communication software isn't operating as it should, BC OnLine customers can get help with a 1-800 call to BC OnLine's HelpDesk. In BC OnLine's most recent client survey, 44% of customers rated the HelpDesk service as "excellent". The quality of this service and support is a key component of customer satisfaction.

From an infrastructure perspective, BC Online had a head start. The information BC OnLine distributes was already stored in automated databases running on BC Systems' mainframes. BC Systems' provincial network infrastructure was also in place to allow BC OnLine customers toll-free dial access to it. As a Crown corporation, BC Systems was also ready with the financial flexibility to create and grow an information enterprise in a way that appropriation-based ministries could not.

Pricing policy has been one reason for BC OnLine's rapid acceptance and continued growth. Government established a two-tiered pricing structure at BC OnLine's inception in 1989. Reasoning that if business people used their own staff and computers to retrieve government information instead of government staff and equipment, that digital information should be cheaper than the same information in paper form obtained over the counter. A price differential of one or two dollars was established between electronic and counter service, and this incentive was enough to quickly build BC OnLine's customer base.

Finally, BC OnLine was lucky enough to work with managers in data-owning ministries who were willing to take a risk and try a new service delivery method. Their willingness to step outside the traditional service delivery paradigm and attempt an electronic method has led to the development of strong partnerships and cooperative working relationships between BC OnLine and government data owners.

Conclusion

BC OnLine is obviously not the only model for government information access; fee-based, enterprise-oriented services are not suited to all types of government information delivery. BC OnLine does demonstrate that a government information enterprise is a viable option when necessary criteria are met. Continuing triple bind pressures of more service, less cost and more revenue are likely to spawn other government information services on the BC OnLine model.


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