E-Government meets E-Business: A Portal Site for Startup Companies in Switzerland

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E-Government meets E-Business:
                       A Portal Site for Startup Companies in Switzerland

                                          Petra Schubert and Urs Häusler
                                     Institute for Business Economics (IAB)
                           University for Applied Sciences Basel, Switzerland (FHBB)
                                           Email: p.schubert@fhbb.ch

Copyright 2001 IEEE. Published in the Proceedings of the Hawai'i International Conference On System Sciences,
January 3-6, 2001, Maui, Hawaii.

                        Abstract                                    The Internet also serves as an interface between
                                                                citizens and government, providing means for a more direct
Networked computer technology for business purposes is          democracy [4]. The traditional communication relationship
no longer a domain of companies alone. The Internet has         is one-to-many (government-to-citizen). The Internet
invaded private homes and is becoming a communication           provides the infrastructure for a many-to-many
interface between private parties (e.g. personal E-Mail),       communication, enabling residents to give their stand on
companies (E-Commerce) and the government (E-                   politics which is readable by peer citizens, as well as by
Government). The pervasion of the "virtual world"               representatives of the state.
triggers government agencies to think about their role in
setting a proper social and legal framework and to offer            E-Government is often referred to as "the E-Business of
electronic interfaces to citizens and companies alike.          the state". The government has a great demand for
The paper gives a description of the relations between E-       products and services and is responsible for a large
Business and E-Government with definitions of the new           proportion of the gross national product. It is imperative
terms in the E-Business arena. We describe a portal site        for the government to use electronic media in order to save
for the organization of intellectual property rights for        cost and make procurement processes run smoothly and
startup companies as a representative E-Government              more transparent. The predecessors of E-Government in
scenario. We conclude by summarizing our main findings          public procurement were big EDI-projects e.g. as described
and stressing the importance of E-Government for a              in [7] and [6]. These expensive systems could only be used
healthy economic and socio-political environment.               by companies. Web technology brings E-Government into
                                                                the private home.

1. Introduction                                                 2. E-Business and E-Government

   With the unexpected and explosive growth of the                 2.1.E-Business
Internet, E-Commerce has become a serious issue for the
private and public sector alike. Park [10] states that             Definition 1. E-Business is a business model and
Electronic Commerce can be summarized in three words:           focuses on the support of processes and relationships
paperless, timeless, borderless. The classical limitations of   between business partners, employees and customers by
time and space dwindle – thanks to E-Commerce – and             means of electronic media. The communication
competition on a local and international scale is               relationships of a company with suppliers, business
consequently being intensified. E-Commerce in                   partners, customers and staff members are defined in the
combination with EDI (e.g. XML/EDI) is destined to have a       framework of an E-Business strategy. E-Business is the
tremendous impact on the competitiveness of firms and the       electronic support of business relationships from the
structure of markets and industries as predicted by early E-    perspective of an enterprise (at the center of figure 1). The
Commerce authors [8], [2].                                      term E-Business is normally associated with the use of new
                                                                media or Internet technology. The electronic support of
business relationships has already existed in the past (e.g.
EDI, IOS, Videotex telebanking etc.). Because of its many                      Figure 2 shows the relations between E-Government,
advantages (less expensive, common standards,                                  E-Business and related terms.
infrastructure, globally available, interfacing with
households, etc.) Internet technology has enabled                       Definition 2. E-Commerce is that part of E-Business
electronic communication to make the breakthrough. Most              which is oriented on the arrangement and execution of
(in particular large) companies already have legacy                  legally binding business transactions. It encompasses the
systems which are currently integrated into the new                  three transaction phases Information, Arrangement and
infrastructure (bookkeeping programs, ERP, PPS, special              Execution [11].
applications e.g. of banks and insurance companies). E-
Business encompasses the substrategies for E-Commerce,                         Information
E-Procurement and E-Organization.                                                                          Arrangement                 Execution
                                                                          Knowle         Intent
                                                                          dge

   E-Business is focussed on ...
                                                                      Inform         Definition of      Negotiation                Performance
                                                                                     goals

(1) New media ... The Internet and its protocols as an               Figure 2: Transaction Phases
    inexpensive, global carrier medium. The emerging
    systems are “electronic business media”.                            In this context distinction is made between the different
(2) Relationships ... The exchange of business                       types of relationships
    documentation, communication and transactions                    • Business-to-Business
    between business partners and staff members.                          Business relationships between companies at various
(3) Integration ... The creation of (electronic) interfaces               levels of the value chain (e.g. LeShop  Post,
    between existing systems (legacy systems) and new,                    Derendinger  Garages, Amazon.com  UPS)
    internet-based E-Business applications which are                 • Business-to-Consumer
    directly accessible for the partners, thereby                         Relationships between companies and end customers;
    necessitating coordination of the company-internal                    end customers are companies or private households
    processes (Business Process Reengineering - BPR).                     (e.g. Migros Online, Obi Baumarkt, etc.)
(4) Cooperation ... The cooperation with partners which in           • Consumer-to-Consumer
    E-Business acts as a leverage effect. Complementary                   Relationships between end consumers (e.g. EBay,
    goods which are offered in E-Commerce applications                    Classifieds2000)
    supplement the vendors offering to the maximum
    benefit of the customer. “Performance systems”                       E-Commerce support systems are also referred to as
    emerge [1]. The (sometimes quite necessary)                      Customer Relationship Management (CRM) systems. CRM
    cooperation with competitors is also referred to as              is the sales-oriented component of E-Business (cf. Figure
    “Co-opetition”.                                                  1) [9].

                                                            E-Government

                                                              E-Business
                                        E-Procurement                                 E-Commerce

                    Partners and                                 My
                    Suppliers               Extranet                                         Internet                 Clients
                                                                Company
                                    Business-to-Business                             Business-to-Business
                                                            E-Organization          Business-to-Consumer
                                                                                    Consumer-to-Consumer
                       Supply Chain Management                  Intranet            Customer Relationship Management

                                                       Business intern (employees)

                    Government                       Interactive E-Government                                         Citizens /
                    Agencies                                                                                          Companies

                                                                  E-Policy

            Figure 1: E-Business/E-Government
of IT-infrastructure for procurement, distribution of
                                                                       services and internal organization.
   Definition 3. E-Procurement
   E-Procurement is the electronic support of procurement           The weighting of interactive (participating) E-
processes (purchasing) of a company via new media.              Government lies in the rendering of services to the outside.
Whereas Enterprise Resource Planning (ERP) systems              The objective is to render these services oriented on target
frequently support the procurement of direct goods, in          group, efficiently and in a simple manner via the Internet.
recent times web technology-based systems which are             The concept E-Government is relatively new and has not
known as Desktop Purchasing Systems are being launched          yet been anchored in literature. Accordingly, to date there
on the market which support the purchasing of indirect          is no generally valid definition. A possible definition which
goods. E-Procurement is organized in the scope of Supply        embodies both E-Government aspects presented by us is
Chain Management (SCM) which defines the procurement-           provided by Bernhard [3]:
oriented measures in the overall E-Business concept of a
company (cf. Figure 1) [5].                                         “Under the term “E-Government” all measures of public
                                                                administration institutions are to be understood that have
   Definition 4. E-Organization                                 the goal of a primarily external, but also internal
   E-Organization is concentrated on the electronic             performance improvement with regard to the defined task
support of internal communication between the members of        or satisfaction of customer needs. The final objective is the
the staff of a company with the aid of the new media. The       achievement of positive business management and social
objective is to render the company data available to the        effects through the optimization and simplification of
employee at the right time in an appropriate form, as well as   business process and by means of the use of modern
to image as much know-how and “tacit knowledge” of the          information technology in order to maintain the
staff members in information systems. This internal             attractiveness of the operating location for companies, as
orientation of E-Business is supported by the use of            well as for other elements that play a role in the economy”.
document management systems, content management                 Whereas the first part of Bernhard’s definition, the
systems, groupware and the entire office automation             “fulfillment of customers’ needs”, relates principally to the
sector. The company tasks in this category fall within the      part of E-Government referred to by us as “interactive E-
sector of knowledge management.                                 Government”, in the second part Bernhard also makes
                                                                reference to increasing the attractiveness of a country as a
3. E-Government                                                 business location, which relates to the second component,
                                                                the E-Policy.
  The government is confronted by new technologies in
two different ways.                                                 Definition 5. E-Government
                                                                    Our definition of E-Government which includes both
   (1) E-Policy                                                 aspects – policies and the use of IT – is the following: E-
       It has to define the legal framework for the use of IT   Government includes the governmental task of setting a
       in the respective country (e.g. recognition of the       valid legal framework for the effective use of the electronic
       digital signature). Furthermore, it must award           media in a society as well as the application of these media
       subsidies or other means of support, e.g.                for public procurement, services to companies and citizens
       installation of computers in schools, financial          and the management of the internal organization. E-
       assistance for IT startups, etc. This first task we      Government has two dimensions: (1) Endowing the
       will call E-Policy.                                      economy with the necessary legal framework ("making E-
                                                                Business possible") and (2) applying it cost-effectively for
   (2) Interactive E-Government                                 governmental tasks. With this definition in mind it
       The second task the government has to deal with is       becomes clear that a well-planned, modern E-Government
       defining its role as a market player in the virtual      strategy will be the key to a competitive economy which
       environment. Public information has to be made           attracts companies in an increasingly global marketplace.
       available to companies and citizens. Services can
       be offered over the Internet. E-Commerce can be
       used to support public procurement. These and
       related questions span the field of E-Government in
       its purest sense: E-Government as the
       governmental counterpart to E-Business – the use
4. Starting a business in Switzerland                                      their services on the Internet, this process could be greatly
                                                                           simplified. All these agencies are already present on the
    Let us look at an entrepreneur who wants to found a                    Internet even though they do not yet offer their full range
company in Switzerland. He will have to go through a                       of services. Most of them are limited to supplying
complicated administrative process which includes                          information to their clients. Interaction possibilities with
interaction with multiple government agencies. In order to                 these websites are scarce.
found an "Aktiengesellschaft" (a stock corporation) the                        Due to the federated system in Switzerland concerted
company has to be registered in the "Handelsregister"                      action between the different agencies rarely occurs.
(trade register). In order to protect a brand name or product              Almost every local agency is currently developing its own
name the company has to submit an application to the                       Internet approach. The proposed portal could be the
"Eidgenössisches Institut für Geistiges Eigentum" (the                     "single point of entry" to multiple services from multiple
patent office). The same applies for registering a patent. In              agencies. This is what modern E-Government should look
order to build up an online presence a domain name has to                  like.
be registered. The Swiss country code domain can be
obtained from Switch (the registration service for .ch                     5. The “immaterial property law” topic-related
domains). An additional .com domain has to be registered                      portal
using an accredited registrar, e.g. Network Solutions, Inc.
(a list of these can be found on the IANA Website). In                        The following considerations describe the idea of a
addition, the company has to pay taxes to the tax authority,               topic-related portal that deals with the possible services
and to set up social security for its employees (AHV).                     and information needs that have to do with the topics
                                                                           “immaterial property law” and “immaterial property”.

                               Registration in the federal       Patent-Registration               Taxes:
                               commercial Register:              Swiss Federal Institute of        Responsible Tax
                               Responsible F.C.R. office in      Intelectual Properties            Administration in the Canton
                               the Canton in which the                                             which the company is located
                               company is located                Services supported online:
                                                                 Possibility to download the
                                                                                                   Services supported online:
                               Services supported online:        relevant forms                    Possibility to download the
                               Possibility to download the
                                                                                                   relevant forms
                               relevant forms

  New Company in Switzerland
                                                  Possible interactions with government agencies

                               Employee Insurance:               Domain-Registration:                Trademark-Registration:
                               Federal Office for social         Swiss Academic & Research           Swiss Federal Institute of
                               security                          Network (SWITCH), Zurich            Intelectual Properties

                               Services supported online:        Services supported online:          Electronic Service:
                               Online Information                Online-Registration                 Possibility to download the
                                                                                                     relevant forms

                   Figure 3: Interactions with authorities on the founding of companies

  Figure 3 shows the necessary initial contacts with
government agencies.                                                           5.1.Definition of portal
   The figure illustrates the long administrative procedure                   An Internet Portal is a structured website that provides
for starting up a new company. If all these agencies offered               a point of entry into an array of structured web contents.
The individual contents are grouped together by the portal             Acting figures
operator and made available to interested parities. Portals            The groups which are entitled to benefit in one way or
are typically multi-functional and make a multiplicity of           another from the use of the portal are designated the acting
various informations and services available at a single             figures. In this context they can assume various roles:
location. The basic prerequisite for the success of a portal        vendor, purchaser, advertiser, interested party etc.
is the optimum makeup of the contents which is prepared
according to various roles (e.g. company founder) or topic             Primary acting figures
fields (e.g. taxes).                                                   This entitled group is principally a recipient of the
                                                                    output of a portal. The acting figures are interested in fast
                                                                    and efficient attendance to their needs in the field of
   5.2.General concept of a possible topic-                         immaterial property law. However, the primary acting
      related portal for immaterial property law                    figures can also act as input suppliers. For examples, as
                                                                    advertisers or vendors in the individual exchanges.

Title                  Description             Interests                 Provider of           Uses

Trademark attorney On mandate by third         General access to         Services (searches    Information (texts of
                   parties searches are        information. Quick        and registrations     laws, statutes etc.) and
                   made and trademarks         processing of             on behalf of third    services (electronic
                   registered. Advises         trademark                 parties) as well as   trademark registrations,
                   comp anies in the           registrations and         consulting            searches etc.) relating to
                   field of trademark          searches.                 services.             immaterial property law.
                   law.                                                  Advertising of
                                                                         services.
Patent attorney        Searches and patent     General access to         Services (searches    Information (texts of
                       registrations are       information. Quick        and registrations     laws, statutes etc.) and
                       made on behalf of       processing of patent      on behalf of third    services (patent
                       third parties.          applications and          parties).             applications, searches)
                       Consulting of           searches for his/her      Advertising of        relating to immaterial
                       companies in patent     client.                   services.             property law.
                       law.
Large companies        Companies with in-      General access to         Patent and          Information and services
                       house R&D               information. Quick        trademark offerings relating to immaterial
                       departments perform     processing of             on the patent and   property law.
                       searches and register   searches and              trademark           Registration and
                       patents and             registrations.            exchanges.          searches of patents and
                       trademarks.                                                           trademarks. Offerings on
                                                                                             patent and trademark
                                                                                             exchanges.
Small and medium-      Small and medium-       General access to         Patent and          Information and services
sized companies        sized companies         information. Quick        trademark offerings relating to immaterial
                       perform searches        processing of             on the exchanges. property law and other
                       and registrations of    searches and                                  fields.
                       patents and             registrations.
                       trademarks
                       independently.
Universities /         In-house R&D            General access to         Patent offerings.     Information and services
universities of        departments conduct     information. Quick        Inventions with       relating to immaterial
applied sciences       searches and patent     processing of             commercialization     property law. Data on
                       registrations.          searches, and search      potential.            potential startups that
                       Knowledge used for      for potential partners.                         would be interested in
                       purposes of                                                             commercialization.
                       instruction.
Title                   Description                Interests                 Provider of            Uses
 Startups                Companies in               General access to                                Consulting services in
                         process of being           information and                                  the field of trademark
                         founded                    information relative to                          and patent law,
                                                    startup in the field of                          registrations and
                                                    immaterial property                              searches, mediation of
                                                    law.                                             professional partners
                                                    Fast processing of                               (venture capital donors,
                                                    searches and                                     design ateliers, large
                                                    registrations, search                            corporations).
                                                    for professional
                                                    partners and advisers.
 Private parties /       Private parties and        General access to         Patent and          Information and services
 inventors               inventors conduct          information and           trademark offerings relating to immaterial
                         searches and patent        information relative to   on the exchanges. property law.
                         registrations.             startup.
                                                    Fast processing of
                                                    searches and
                                                    registrations
 Table 1: Primary acting figures

   Secondary acting figures
   This group represents the expanded circle of parties
interested in the topic-related portal. They are principally
service and information input suppliers. Acting figures
which can be categorized in related areas of immaterial
property law are also represented. They also use the
platform for advertising for and information on their
services because it gives them an optimum medium
through which to address their target group.

   Title                     Description                 Interests                Supplies
   Commercial             Governmental               Simple and efficient     Information on
   registration office    registration office for    processing of entries    entries in commercial
                          companies in               in the commercial        register, listing of all
                          Switzerland                register.                entered companies
   Switch                 Registration office        Simple and efficient     Information on
                          for domains                processing. Wide         domain registrations,
                                                     dissemination of         electronic
                                                     services.                registration of
                                                                              domains.
   Federal authorities    Executive /                Publication of           Information (laws
                          Legislative / Judicial     information on laws      and statutes) in the
                                                     and statutes             field of immaterial
                                                                              property law.
Title              Description                 Interests                Supplies
Regions / communes Location providers          Publishing of            Information on
                   for companies and           information.             parties with a
                   corporations                Acquisition of           potential interest in
                                               companies and            location, data on tax
                                               corporations for their   rates, business
                                               jurisdictional           promotion etc.
                                               territory
Portal operators      Ensures operation        High utilization of      Communication
                      and technical            the portal,              tools, patent and
                      development,             advertising income.      trademark
                      responsible for                                   exchanges,
                      content and banner                                advertising areas,
                      management,                                       user accounts,
                      provision of                                      prepared content.
                      information tools
Venture capital       Provision of risk      Acquisition of             Information on
donor                 capital.               potential creditors,       services, advertising.
                                             search for
                                             innovations and
                                             inventions with
                                             future earnings
                                             potential.
IIP                   Institute for          Earning of customer        Services (searches
                      Intellectual Property. loyalty.                   and registrations) on
                      Administration of      Simple and efficient       behalf of third
                      trademarks and         processing.                parties.
                      patents.               Distinction from           Trademark and
                                             European                   patent information,
                                             registration offices.      instruction offerings,
                                                                        publications.
Design ateliers       Prototype                Acquisition of           Service
                      construction for         potential customers      offering/advertising
                      others
Further acting           Other acting          Dissemination of         Services and
figures BWL           figures who reach        information.             advertising.
                      their target group via   Advertising.
                      this portal              Customer
                                               acquisition.
Further acting        Other acting figures     Dissemination of         Services and
figures in the        who reach their          information.             advertising.
technical sector      target group via this    Advertising.
                      portal                   Customer
Table 2: Secondary acting figures              acquisition.
5.3 Portal services

   In the table below possible services are described which
could be offered in the topic-related portal. Further
services can be added at any time inasmuch as they fit into
one of the user profiles.

             Title                      Provider                Type of service                    Cost
 Trademark search             IGE                         Independent online search    Free of charge
 Patent search                IGE                            Independent online        Search free of
                                                          search with existing tools   charge/download subject
                                                          (IBM patent server,          to charge
                                                          Espace-Net)
 Order for trademark search   IGE                         Online order for trademark Charges according to
                                                          search                     existing cost structure
 Order for patent search    IGE                           Online order for patent    Charges according to
                                                          search                     existing cost structure
 Trademark registration     IGE                           Online trademark           Charges according to
                                                          registration               existing cost structure
 Patent registration        IGE                           Online patent registration Charges according to
                                                                                     existing cost structure
 Commercial register search Commercial register office Independent online search Free of charge
 Commercial register entry  Commercial register office Online entry in commercial Charges according to
                                                         register                    existing cost structure
 Domain name search and     Switch                       Independent online search Charges according to
 registration                                            and registration            existing cost structure
 Patent and trademark       Portal operator              Patent and trademark        Free of charge
 exchange                                                “bulletin board”
 Online forum               Portal operator              Platform for mutual direct  Free of charge
                                                         contact of the acting
                                                         figures, structured
                                                         according to topic
 Acting figure- and topic-  Portal operator              Platform custom-tailored to Free of charge / against fee
 specific platforms                                      suit respective customer    (according to acting
                                                         group                       figure)
 Information given by       Federal authorities, regions Information sorted by       Free of charge
 authorities                / communes                   customer group on laws
                                                         and statutes (specifically
                                                         in the field of immaterial
                                                         property law).
 Collection of links        Portal operator              Collection of links matched Free of charge
                                                         to the respective customer
                                                         group (edited and
                                                         updated).
 Advertising platform       Portal operator              Possibility of advertising  Subject to charge at cost
                                                         placement according to      rate
                                                         customer segment
Table 3: Services
6. Conclusions                                                          [7]  Kim, Eun; Schubert, Petra; Selz, Dorian (1997): The EMBG
                                                                             Reference Model on Electronic Markets: The Korean Case
   With this paper an attempt is being made to bring light                   of Jodal, in: Joint Working Paper of the Institute for
into the jungle of the various terms and concepts in the                     Information Management, University of St. Gallen and the
sector of E-Business. In this context, under E-Government                    National Computerization Agency, Korea, October 1997.
we understand more than just “Governmental E-Business”.                 [8] Malone, Thomas; Yates, Joanne; Benjamin, Robert (1987):
E-Government additionally encompasses the stately                            Electronic Markets and Electronic Hierarchies, in:
mission of providing the possibility of a sound, flourishing                 Communications of the ACM, June 1987, Vol. 30, No. 6,
electronic trading environment by defining or                                pp. 484-497.
systematically creating the legal and social framework                  [9] McKenna, Regis (1991): Relationship Marketing -
conditions. It thereby contributes to the rendering of                       Successful Stratregies for the Age of the Customer, New
Switzerland as an attractive business location. The                          York: Addison-Wesley, 1991.
government, which with its demands and also with its                    [10] Park, IK (1996): National Competitiveness and EC, in: The
offerings occupies a monopolistic position in many                           Journal of Informatization (Korean), Vol. 3, December1996,
sectors, is subject to different rules than a company that is                pp.20-41.
in competition with others on the market. This is a possible            [11] Schmid, Beat (1999): Elektronische Märkte - Merkmale,
explanation of why the use of electronic media by                            Organisation und Potentiale, in: Hermanns, Arnold; Sauter,
governmental authorities has a tendency to progress                          Michael (eds.): Management-Handbuch Electronic
slower than in private companies. To this is added the                       Commerce, München: Franz Vahlen Verlag, 1999, pp. 31-
characteristic of the federalistic system in Switzerland of                  48.
delegating competencies down to the lowest hierarchical
level which results in a large number of small, isolated E-
Business initiatives.
   The example of the portal site for startup companies
shows that in the governmental sector intermediaries are
also able to play the role of a mediator and to generate
added value by the functional and topical grouping of E-
Business offerings.

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[3]   Bernhard, T. (1997): Electronic-Government in der
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