World Bank GroupStaff Learning Meeting

ICT AND INVESTMENT CLIMATE REFORMICT AND INVESTMENT CLIMATE REFORMAchieving measurable impact through the use of technologyAchieving measurable impact through the use of technology

Mombasa, Kenya Mombasa, Kenya – – May 17-18May 17-18, 20, 201010

DEVELOPING A SUSTAINABLE BUSINESS REGISTRY TECHNOLOGY PLATFORM

Case study from Serbia

Branislav Dobrosavljevic,

CIO, Serbian Business Registers Agency (SBRA)

CONTENT:CONTENT:

1. SBRA – IntroductionRegistration reform in Serbia, SBRA Registers, SBRA services

2. Information system – Birth and survivalDesign, implementation, sustainability, stabilisation

3. Information system – Maturity and growthTowards SOA architecture and value-added electronic services

4. Challenges and solutionsLessons learned, future development plans

3

GOALS FOR REFORMING THE REGISTRATION SYSTEM

www.investmentclimate.org 3

To simplify and accelerate the business registration procedure in Serbia To create a more favorable business environment for foreign investments To create conditions for easier business start ups in Serbia To upgrade state administration through a greater reliance on IT To establish the conditions for creating new jobs and reducing the informal

economy and corruption.

• SBRA (Serbian Business Registers Agency) or Agencija za privredne registre – APR (Serbian) , established in 2004,

as a crucial part of the registration reform in Serbia, started its operation 3.1.2005. SBRA Information system was completed until 31.3.2006. as a result of the project funded by Swedish government and administered by the World Bank (ICB procurement method).

Until 2009, SBRA operated 3 registres: Register of Business entities, Register of Pledges and Register of Financial leasing.

Registers operated by SBRARegisters operated by SBRA

Agencija za privredne registre – APR (Serbian) orSBRA (Serbian Business Registers Agency)

Until 2009, SBRA operated 3 registres:

- Register of Business entities (Companies and Entrepreneurs);

- Register of Pledges on movable assets and rights (Collateral Registry);

- Register of Financial leasing

From October,2009 to January,2010 five more registers started

- Register of Associations (NGO) and Register of Foreign associations;

- Register of Public Media;

- Register of Financial statements and Data on solvency;

- Register of Tourism, with number of sub-registers.

Until the end of 2010, and in the first half of 2011, number of new registers will be started: *Register of Bankruptcy estate; *Register of Regional development measures and Incentives;

*Register of restraining orders; *Register of Sports Associations; *Register of Institutions; *Register of Chambers of Commerce; etc. (more than 20 registers expected until 2011)

Before and after the Establishment of the SBRA

BEFORE

DIVIDED RESPONSIBILITIES FOR REGISTRATION OF BUSINESS ENTITIES

Lack of the unique and updated records.

Non-transparent registration procedureCORRUPTED Commercial Courts in Serbia(Source: Feasibility Study for EU accession)

On the business management of various records that are currently within the SBRA’s competence, MORE THAN 1,500 EMPLOYEES were engaged (17 commercial courts, 165 municipal offices, Billing and Payment Office Statistical Office of Serbia, Ministry of Internal Affairs, Ministry of Public Administration and Local Government, Ministry of Foreign Affairs, ministries and / or sectors in charge of tourism, National Bank of Serbia ...)

Average registration time: • 71 days (2002)• 54 days (2003)

SBRA TODAY

JURISDICTION FOR THE CONDUCT OF THE PUBLIC ELECTRONIC REGISTERS

Irmplementation of registration procedures is in accordance with the principles of efficiency and transparency .The five-day “silence is consent” principle is applied.

SBRA is a self-financed institution (sustainable development) based on the registration fees and fees for other services that SBRA provides (since its establishment in 2005, SBRA has slightly changed its fees only in early April 2010)

350 persons employed or engaged in the Belgrade office and its 13 remote offices throughout Serbia - activities on integrated reception of applications, mail expedition, scanning, archiving, administration

Over EUR 2 Million- Value of existing software , hardware and equipment

Average registration time: 3 days, max 5 days (as of May 6, 2009 - One-stop shop system of business registration was introduced); Along with SBRA’s registration decree, an applicant gets a tax ID number, Health and Pension Funds and Employment Organization records.

“DOING BUSINESS 2010” 7 PROCEDURES, 13 DAYS

SBRA in FiguresSBRA in Figures• 112,405 business entities

• 224,054 entrepreneurs (“sole traders”)• 1,500 representative offices of foreign legal entities • 112,600 financial statements for 2008

• 1,898 associations• 44 foreign associations• 912 Public media

• 57,087 financial leasing contracts• 63,655 pledge contracts, securing claims of over EUR 17 billion

- 565,000 applications (processed in 2008)

- 2,500 applications per day

- over 3,000,000 records taken over from the Commercial Courts

and local authorities are filed in the SBRA archives

- over 10,000,000 scanned archived pages

- over 5,000,000 hits at the SBRA Web page (676,000 hits in Sept 2009)

- over 35,000 hits per day

- 324,022 users of the SBRA’s Info Center

RATIO BTW.

SBRA’S EMPLOYEES AND ITS CUSTOMERS

350 employees

Registered entities and contracts:

825,000

2,360 PER EMPLOYEE

Over 5 Million archived files

RATIO BTW.

SBRA’S EMPLOYEES AND ITS CUSTOMERS

350 employees

Registered entities and contracts:

825,000

2,360 PER EMPLOYEE

Over 5 Million archived files

SBRA – RESULTS

SBRA Internet site is the most visited in Serbian public sector: About 1 million monthly visits; About 50.000 daily visits.

Number of registered companies in Serbia:

e-Government in Serbia – e-Government in Serbia – Strategy, Laws and ImplementationStrategy, Laws and Implementation

• “e-Government Development Strategy” and “Action Plan” – modern, based on EU and regional SEE documents and initiatives;

• “Law on electronic signature” (December, 2004), bylaws completed mid-2008;• “Law on electronic document” (2009), bylaws completed recently;• Certificate Authorities: 1 (2008), 2 (2009), 3 (2010);

Qualified electronic certificates: penetration still low, expected growth in 2010.

• Electronic payments: Limited possibility to pay in local currency (Dinars/RSD), although electronic banking and credit cards are widely adopted;

• Electronic services in public sector: Still at low level, while substantial improvement is expected in 2010/2011 (new e-Government Portal, including electronic payments in dinars, curently in the final testig phase).

““Data delivery” Services of SBRAData delivery” Services of SBRA

• G2G services - Data delivery to other governmental institutions (more than 30 regular partners in public sector, including key ministries and agencies):• Standard data delivery: One of 5 standard data categories, delivered by

Web Service, FTP, E-mail or CD/DVD;• Special requests: Customised sets of data and/or statistical analysis

(free of charge).

• G2B/G2C services - Data delivery to businesses and citizens:• Standard data delivery: One of 4 standard data categories, delivered by

Web Service, FTP, E-mail or CD/DVD; Minimal fee (0.1-0.3 USD) per record;

• Special requests: Customised sets of data, on request; Data analysis (limited complexity);

• Free initial analysis service (selection of records, E-mail proforma invoice);Low price, Quick delivery, Online support, Contact center support;

• Important source of SBRA revenue (3-5%), fast growth expected.

G2B, G2C Services of SBRA – G2B, G2C Services of SBRA – Towards full electronic registrationTowards full electronic registration

• SBRA Information system is “e-Services ready” from the beginning;• Unfortunately, due to improper legislation (mandatory paper with signature and stamp),

and lack of electronic signatures and payments, implementation of mayority of e-Services was postponed;

• Existing electronic services for businesses and citizens are:• Complete information services, including highly usable models for all important documents;• Internet Search on entity status, with complete data for one entity, available for free; • Current status of the submisson (case) available on SBRA web site or via SMS and Contact center;• All Forms available online, in PDF format (fillable, printable, downloadable), some could be

submitted;• Registration of entrepreneurs, issuance of “extract from the Register” (“semi-electronic”).

• Services in final testing phase, to be available very soon:• Electronic issuance of the “extract from the register”, for companies and entrepreneurs;

This service will be soon available on both SBRA portal and national e-Government portal; • Registration of entrepreneurs - complete proces, including issuance of digitally signed Resolution; • Ordering and sending Financial reports and other “value-added data delivery services”;

• Services for future implementation:• As electronic payment services in local currency (Dinars/RSD) are in final testing phase, all the

services non-dependable on external partners will be published until the end of 2010, or early 2011; • Full electronic registration of companies (EU benchmark service) is ready in SBRA, but depends on

extrernal partners (usage of electronic signatures in Courts for Articles of Association).

Future SBRA business strategy -Future SBRA business strategy -Principles of sustainabilityPrinciples of sustainability

At the beginning, self-financing of SBRA was assured by: 3-month financing of all operational costs from the Swedish donation; Sufficient fees for the SBRA services, set by law; Low costs: Simplified registration process, skillful SBRA staff.

Until now, self-financing of SBRA kept by: Continually improved business processes and people productivity

(fees not changed for 5 years, while cummulative inflation was >40%); Improved “Data delivery services” (5% of income planned for 2010).

In the future, self-financing of SBRA will be based on: Further improvement of business processes, including standardisation (ISO 9001); Improvement of Information system, based on SOA and virtualisation; Improvement of services, based on the combined data from SBRA registers;

Income from “value added services” expected to grow to 10%-20% of total SBRA costs in 2012, up to 50% in 2015-2016.

2. Information system – 2. Information system – Birth and survivalBirth and survival

SBRA Information system development 2005-2009/2010: PHASE 1 (2005)

Elementary hardware (few multiple-purpose Dell servers); Temporary software solutions for all registers, basic services.

PHASE 2 (2006/III-2007) SBRR - Fully implemented World bank administered project (Oct.,2004 – March,2006);

Swedish donation cca 1.4M EUR, including ICT and 3 months SBRA operational costs; Interesting experience – included additional donations, temporary S/W solutions, etc.

Sufficient hardware (Fujitsu-Siemens servers, EMC storage, Cisco communications); Stable software solutions for registers; Improved services (G2B/G2C).

PHASE 3 (2008-2010/VI) Extended hardware and communications; Completed software solutions for registers; High-quality services (G2G, G2B/G2C): “One Stop Shop project”, phase 1 (2009/V); First steps of SOA-based integration: IRIS module (Integrated registration input). Microsoft-based platform: Windows Server 2000/2003/2008, MS SQL Server 2000/2005/2008

Development platform Microsoft .Net framework, C#.

ISSUES RESOLVED DURING THE SBRR PROJECT

Project: Serbia Business Registration Reform (SBRR)• Grant No.: TF052718• IFB Title: Supply and Installation of the new Serbian Business Registration System software and hardware • IFB Number: SAM-SBRR-ICB-001-SSB-05-TF052718• Date of issue: May 18th, 2005. • Date of completion: March 31th, 2006.

Selection of the experienced international consultant, able to adapt to the local circumstances is crucial (technical skills are not the key point);

World Bank project should be managed carefully from the very beginning:

• Wrong selection of “ICB procurement method for goods” almost killed Serbian SBRR project!

Consider realistically the timeframe for each phase of the project;

Close and proactive cooperation with the World Bank staff; Local World Bank Office in Belgrade helped a lot, especially at critical ponts.

SBRA initial system architecture SBRA initial system architecture 2009/20102009/2010

3. Information system – 3. Information system – Maturity and growthMaturity and growth

SBRA Information system development in 2010/2011:

PHASE 4 (2010/Q3,Q4) KOICA project (donation 3.2 M$ from R.Korea) implementation (2009/VI); New hardware platform (IBM), software platform (IBM) and development tools (Java); Initial SOA architecture using ESB – Web services internal and external integration; Completed set of services using qualified electronic signatures (G2G, G2B/G2C).

PHASE 5 (2011) SBRA long-term strategy, Business process allignment, Development budget assurance;

Standardisation (ISO 9001, 27001); Hardware integration (IBM, Microsoft) – H/W, communications, security, administration; Software integration - SOA architecture improvement, software standardisation and

consolidation (long-term target: Generic register rules, processing and software); Extended set of electronic services, value-added services (DW/BI/KM based).

SBRA as SBRA as a a Governmental Information HubGovernmental Information Hub

KOICA project componentsKOICA project components

o “SBRA Business process improvement project”, including new harware and software; implemented 2008-2010, donation 3.2 M$ from R.Korea;

o All components developed and installed until 2009/VI, full implementation 2009/XII.

ONE STOP SHOP for registration (OSS), Phase 2 Full automation of processes between SBRA and partner agencies, standardised WS;

INTEGRATED REGISTERS (IR) Improved IRIS module (integrated register input) – very important part of the system;

Integrated archive operation and Integrated expedition activities to follow. ELECTRONIC ARCHIVE (EA)

DMS (IBM FileNet) for unified storage and maintenance of electronic documents, both scanned images and documents produced by SBRA registers; Strong search engine.

FDI PORTAL (future FDI Register) Collects and publishes relevant Foreign Direct Investment data from multiple sources;

INFORMATION HUB PORTAL (IHP) SBRA Portal for G2B/G2C electronic services, using qualified electronic signatures;

Includes authentification, submission, payments, delivery, notification, etc.

Pension Fund

Health.Insur.

Register of LeasingRegister of Leasing

Register of PledgesRegister of Pledges

Register of Business Subjects

Register of Business Subjects

DMS

Temporary ElectronicArchive

Permanent Electronic Archive

Portal 1Portal 1

WAN

Regional Offices

Operators

LANOperators

Internet

G2C G2B G2G

Employ.office

Tax Office

Statistic.Office

Enterprises

Banks

SMES

National Bank

Municipalities

Register 4

Register 5

Register N

Communications

SBRA Software ArchitectureCurrent state

Registration Form

Part1 - SBRA

G2B

G2G

Pension Fund

Health.Insur.

Register of LeasingRegister of Leasing

Register of PledgesRegister of Pledges

Register of Business Subjects

Register of Business Subjects

DMS

Temporary ElectronicArchive

Permanent Electronic Archive

Portal 1Portal 1

WAN

Regional Offices

Operators

LANOperators

Internet

G2C

G2B G2G

Employ.office

Tax Office

Statistic.Office

SMES

Banks

Enterprises

National Bank

Municipalities

Register 4

Register 5

Register N

Communications

Figure1 – Current state

Registration Form

Part1 - SBRA

G2G

G2B

Pension Fund

Health.Insur.

IntegratedIntegratedRegistersRegisters

Register of LeasingRegister of Leasing

Register of PledgesRegister of Pledges

Register of Business Subjects

Register of Business Subjects

Portal 1Portal 1

Messages

Part N

….

Part4

Part3 –HealthInsurance

Part2 -Pension Fund

Part1 - Tax Office

WAN

Regional Offices

Operators

LANOperators

DFIDFINew DMSNew DMSee--ArchiveArchive

One StopOne StopShopShop

Portal 2Portal 2

Internet

G2C

G2BG2G

Information Hub / Information Hub / Additional security Additional security

G2B

G2C

G2G

Employ.office

Tax Office

Statistic.Office

SMES

Banks

Enterprises

National Bank

Municipalities

Register 4

Register 5

Register N

All New Modules

Registration Form

Part1 - SBRA

Figure2 – New State

Temporary ElectronicArchive

Permanent Electronic Archive

DMS

Pension Fund

Health.Insur.

IntegratedIntegratedRegistersRegisters

Register of LeasingRegister of Leasing

Register of PledgesRegister of Pledges

Register of Business Subjects

Register of Business Subjects

Portal 1Portal 1

Messages

Part N

….

Part4

Part3 –HealthInsurance

Part2 -Pension Fund

Part1 - Tax Office

WAN

Regional Offices

Operators

LANOperators

DFIDFINew DMSNew DMSee--ArchiveArchive

One StopOne StopShopShop

Portal 2Portal 2

Internet

G2C

G2BG2G

Information Hub / Information Hub / Additional security Additional security

G2B

G2C

G2G

Employ.office

Tax Office

Statistic.Office

SMES

Banks

Enterprises

National Bank

Municipalities

Register 4

Register 5

Register N

All New Modules

Registration Form

Part1 - SBRA

Figure2 – New State

Temporary ElectronicArchive

Permanent Electronic Archive

DMS

After implementation of eArchive

Scanning processKofax

FileNet

Document Management Service

IrisService

Petition

SBRA

Saves petition

Upon receive documents are sent to scan

Que

ry fo

r bar

code

met

aD

ocum

ent m

etad

ata

Create / update fo

lder

Store document and it’s metadata to appropriate folder

2

4

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5 6

7

8

9

10

11

Party

3Receipt

““One Stop Shop for registration”One Stop Shop for registration”(OSS-SBRA)(OSS-SBRA)

Successful Multi-agency project, supported by Serbian Government;Example of coordinated legal, organisational and technological efforts.

Preparation: 2006-2008 (complete study 2006/XII)

Phase 1: From May, 2009 (Government decision 2009/XI) Partner agencies: Tax Authority (TA), Pension fund (PF), Health Fund (HF); Processes partly automated (Web services, FTP data exchange).

Phase 2: From June/December, 2010 (Part of KOICA project) Additional partners: National Bank of Serbia (NBS), Employment Office (EO),

Statistical Office (SO), Ministry of Interior (MUP). Processes fully automated (coordinated Web services on IBM ESB).

Introduce a single business registration form;

Introduce a system whereby public authorities can recognise enterprises by a single identification number;

Set up single contact points where a single registration form can be deposited;

Ensure that government departments avoid introducing duplicated or superfluous forms and/or contact points;

Use IT and databases as much as possible for the transmission and authentication of information submitted and/or the exchange of information between public authorities.

OSS PRINCIPLES – DESIRED MODEL OF BUSINESS REGISTRATION

ONE-STOP SHOP IN SERBIA Streamlined Business Registration Model

USERS

TAX DIRECTORATE SBRA SBRA front-end

offices

SINGLE REG.

FORM

REGISTERED BUSINESS

NEW BUSINESS IN OPERATION

REGISTRATION ID (MB) TAX ID (PIB)

electronic transmittal of data

SERBIAN STATISTICAL OFFICE

NATIONAL LABOUR BUREAU

PENSION INSURANCE FUND

HEALTH INSURANCE FUND

OTHER STATE INSTITUTIONS

issued to businesses to be used for all

interactions with the government

Ex post procedures and monitoring (sector specific

inspections)

SBRA - SINGLE ACCESS POINT ONE STOP SHOP (as of May 6, 2009)

ISSUES RESOLVED DURING THE OSS PROJECT

Technical solutions specified in detail after resolution of the related interoperability issues, including harmonization of the database format and content, as well as business processes.

Initial Risk Analysis has shown that the main OSS challenge will be the relationship with the Tax Directorate, especially regarding issuing of the Tax Identification Number (PIB), so special attention was given to it.

Clear that strong political support from all involved parties was required for the success of the project, so it was assured (not easy!).

• Conclusion: For e-Government projects like OSS, technical solutions are not an issue ! “The Devil” is somewhere else: in the data, in the processes and in the political support!

Challenges and solutions – Challenges and solutions – Lessons learned, summaryLessons learned, summary

GENERAL Technology is just a tool to achieve strategic and tactical business goals;• But all business goals should be set considering the opportunities given by the latest

technologies.

SECTOR SPECIFIC Public sector is somethig really special!

TECHNOLOGY SPECIFIC Technology is not simple, but not a major issue, especially in Public sector projects;

Care about business-ICT allignment, organisation, people and training, etc.

INTEROPERABILITY Again, technology is not the key – XML-based Web Services as a standard,

universal solution; Semantic and operational IOP are critical in the Public sector.

Project/Program/Portfolio Management (PM) (PM) Methodology implemented - key to success!• But how to assure stable PM and technology skills in the Public sector?

PM is a Key to successSBRA/Public sector Project constraints

Time: Least flexible

Scope: Most flexible

Resources: Flexible

SBRA Information SystemCurrent Status

• ICT properly budgeted, staffed and positioned within the SBRA;“Department for ICT and Development”, headed by CIO, is the owner of ICT budget and fully involved in the services development.

• Information system completed, stable, flexible – based on SOA, highly available and fully managed by the SBRA technical team;Ready for planned growth and improvement (based on KOICA project).

• Strategic local ICT partner “Spinnaker” (from “ComTrade Group”):

– SLA defined by Long-term, annually improved “Contract for Maintenance and Development”, featuring latest ICT standards and “best practices”

– “Integrated technical team” SBRA/Spinnaker, including all ascpects of the system operation, maintenance, security and development; Other local IT companies - area experts engaged as appropriate

• In addition, close relations with local offices of the most important global ICT vendors (Microsoft, IBM, Cisco, Fujtsu-Siemens, HP)

SBRA Information System Development Plans

a) Infrastructure: – Integration of the system IBM-MS), including full redundancy and improved security;

As soon as possible achieving “No single point of failure” principle and set up complete “Disaster recovery site”; Assurance of redundant, scalable broadband links;

– Improved availability and resilience of the system and services, based on strict procedures, permanent training and full documentation;

– Standardization of the system elements and architecture (virtualization, outsourcing). b) Software:

– Further improve, standardize and integrate existing Registration software modules;– Streamlined, efficient development of the Software for new SBRA registers;– Make proper balance of Platform software, Commercial solutions and Custom

development, including usage of Open Source solutions and development tools, as well as Cloud computing solutions;

c) Services: – Continually improved, DW/BI based Value-added services for all types of customers/

partners (G2G, G2B, G2C); – Extended intenational engagement (EBR), standardisation (XBRL); – Establishment of Unique Identifying Number that will serve all government needs for

all companies;– “Universal Web Service” as a highly available data delivery channel; – Establish and maintain SBRA as a Model for e-Government services in Serbia and

SEE region, as well as a model of self-sufficent, sustainable public agency.

ADVICE FOR ANY COUNTRY REFORMING BUSINESS REGISTRATION SYSTEM

www.investmentclimate.org 3205/01/13

Prior to starting a radical reform such as reform of the business registration system, and as early as possible, it is necessary TO ENSURE as wide as possible CONSENSUS ON THE BASIC PRINCIPLES OF THE REFORM within the Government and interested institutions.

Since reform involves competencies of several ministries, it is necessary for the Government to establish an INTER-MINISTERIAL BODY to follow up and coordinate the overall reform, and to ensure consistency in the regulations and in the implementation of the Action plan ( for the reform).

Do not expect from the technology to resolve those issues!It will just help to achieve the best possible results, if the approach was right.

The same rule apply not only to the initial phase of the reform, but to any following major step in the reform (as it was/is “One Stop Shop” in Serbia).

THANK YOU FOR YOUR ATTENTION!

I am at your disposal for any further questions!

bdobrosavljevic@apr.gov.rs

www.apr.gov.rs