Home
>
About Us
>
Press Room
>
Tom Salonek, Intertech CEO Sunday Business Forum author of "Business forum: Deficits can be the mother of invention"
Press Release: Tom Salonek, Intertech CEO Sunday Business Forum author of "Business forum: Deficits can be the mother of invention"
Business forum: Deficits can be the mother of invention
Tom Salonek
Published Mar. 2, 2003
With tight budgets and Incredible Hulk-sized deficits, everyone in
Minnesota is looking for a "magic bullet" that will keep state
services available at current levels while cutting costs.
First the bad news: There is no magic bullet (admit it, you already
knew that).
Now the good news: Our current fiscal strain is just the push we need
to start using technology to save money and make the delivery of state
services more efficient.
Gov. Pawlenty has noted that our current circumstances represent the
perfect opportunity to redefine government. Bringing the delivery of
government services into the 21st century through the use of proven
technology that can cut costs and increase efficiency should be at the
top of the governor's list.
Investments in technology can yield an impressive return on
investment. Just ask the folks at the Department of Education who,
through the creative use of Internet-based software, are saving
taxpayers more than $100,000 annually. This technology investment also
allows the department to license new teachers in a fraction of the
time previously required. I know the details because my company worked
on this project. From our experience, it is clear that there are many
opportunities for other state departments -- and other private
companies -- to increase government efficiency and lower costs through
prudent applications of technology.
But they will require an up-front investment -- and that can be tough
when deficits call for cuts. But there's more than one way to tackle
this problem, and creative thinking about how to get things done
should be item No. 2 on the reinvent-government list.
For example, creative partnerships -- among state agencies, between
state agencies and the private sector, and between Minnesota and other
states -- can amortize or lower the initial investment for
cash-strapped state departments. The key to success will hinge on
involving people on the front lines, such as experienced department
heads with proven track records, and encouraging an entrepreneurial
environment within state agencies.
Where to start?
State agencies should look at the innovations happening in the private
sector for proven technology products and services. What we don't need
is more research teams, think tanks, or blue ribbon committees. The
technology exists today; government just needs to begin using it. Some
examples:
• Eliminate the need for "bricks and mortar" service delivery through
Internet-based self-service, such as issuing licenses online. The
licensee takes the time to complete the forms, verifies the accuracy
of the data, and pays online. In return, he or she saves the trip,
stamp, and potential frustration of waiting in line -- and the state
saves hundreds of thousands of dollars.
• Integrate systems. Today, the Internet provides a cheap national
network that enables computers to "talk" directly with one another,
eliminating the need for expensive human intervention.
Another Department of Education example: a system currently being
built by our company will digitally capture fingerprints of teachers
applying for licenses in Minnesota. Because the department can send a
digital fingerprint to the FBI for background checks instead of a
paper copy, the investigation process that used to take several months
will be reduced to several days. Not only will this make it easier for
schools to hire new teachers, it will reduce risks to school kids.
• Sell or license our solutions to other states in areas where we are
ahead. Federal mandates mean the states share many similar rules and
policies. Likewise, the systems that support these rules and policies
are similar. Minnesota's streamlined teacher licensing system is now
being marketed to other states. If one or more states decide to
purchase the system, our state will gain revenue.
• License from other states in areas where we are behind. Any
custom-built product is the most expensive. If the cost of developing
that product is amortized across many consumers, the investment per
capita is less.
• Look for opportunities to privatize. While this may seem
self-serving, privatization offers multiple benefits for taxpayers.
The most obvious: State departments use only the services they need,
when they need them. Privatization also allows the state to shift risk
to the service provider by insisting that payment be tied to
measurable results. And not incidentally, competition increases
customer service and lowers price.
Low-hanging fruit
With each new administration come new commissioners and other new
state employees. While a fresh perspective is invigorating, it's
important that we maintain the continuity that longer-term department
directors can provide. They often can quickly identify the old
processes or technologies that cost tax payers time, patience and
money. This "low hanging fruit" represents our best opportunity for
reducing costs and improving service.
Staff requirements for routine processes can be reduced through
technological innovations, allowing state employees to focus on
higher-value work. Technology also can reduce future staffing
requirements through attrition and voluntary retirement.
The governor and his commissioners should involve state department
directors by engaging them in brainstorming and encouraging them to
develop project proposals that can deliver a return on the state's
investment.
Throughout every level of state government we need to engender an
entrepreneurial spirit stressing partnerships, creative thinking,
leveraging investments and partnering with vendors and people in other
states.
The bottom line: Any technology innovations embraced by the state
should be simple and deliver a clear and measurable benefit to the
people of Minnesota. That's an investment that makes sense in hard
times and good times.
Why Intertech?
Great Places to Work
The Business Journal
14 x
One of the Fastest Growing Firms in America
Inc. 5000
9 x
Top Workplaces Award
Star Tribune
7 x
100 Top Employers
Minnesota Business Magazine
6 x
Fastest Growing Firm in Minnesota
Minnesota Technology Fast 50
4 x
Fastest Growing Privately Held Firms In US
PCI Entrex
4 x
Top 25 Computer Training Firms
The Business Journal
3 x
Top 25 Web Development Firms
The Business Journal
2 x
Fastest Growing Firm in America
Forbes ASAP
2 x
Best Small IT Consulting Firms to Work For in North America
Consulting Magazine
Top 100 Workplace Special Award Winner
Star Tribune
Top Computer Training Firms
Twin Cities Business Monthly
Finance & Operation Best Practices Winner
UpSize Magazine - Business Builder Awards
40 Under 40
The Business Journal
Minnesota Work Life Champion Award Winner
Minnesota Work Life Champion
Winning Workplaces finalist
The Wall Street Journal
Healthiest Employer
Minneapolis/St. Paul Business Journal and OptumHealth
Community Impact Finalist
UpSize Magazine - Business Builder Awards
Communications Finalist
UpSize Magazine - Business Builder Awards
Minnesota Business Builder of the Year
UpSize Magazine