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Smart government assets vision case

 

October 27, 2016

Public Financial Management (PFM) plays a significant role in smart government. FreeBalance is developing numerous “vision cases” to describe the intersection of PFM and “smart”.

Smart Government includes the acquisition of capital assets like infrastructure or vehicles. PFM helps make the government asset lifecycle “smart”.

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  • Government Priorities: policy determines important programs
  • Public Investment Planning: government priorities are used to determine public investment budgets, including the acquisition of capital assets
  • E-Procurement Tender: tenders are presented on government web sites automatically after approval of budgets and requisitions
  • Winning Tender: the name and amounts of tender winners are also published
  • Capital Assets: fixed asset information such as serial number, location, manufacturer, responsible person and depreciation schedule is automatically posted on receipt
  • Smartphone: camera is used to take pictures of asset as part of the contract management system
  • E-Results: status of the public investment project is updated based on the contract updates including pictures
  • Sensor: a sensor connected to equipment, such as a bus, identifies a problem
  • Replacement Part: based on sensor information, a new part is bought or brought out of inventory
  • Issues Work Order: on receipt of the work order
  • Full Costs: calculation of all costs including replacement parts, maintenance, product lifetime is calculated – this could also improve spend management by predicting needed replacements to enable bulk purchases
  • E-Results: the full costs are presented to the public
  • Cost Drivers: the true full costs adjust price estimates for future public investments

The integration of PFM, open government and digital devices provides the “smart” in Smart Government:

  • Citizen-centric: full transparent throughout the asset lifecycle
  • Data-driven: true cost data is calculated
  • Performance-focused: procurement outputs and asset outcomes are calculated while many processes automated, such as from requisition approval to tender document and the acquisition of spare parts
  • Long-term: long-term public investment planning is used and cost drivers adapted based on true long-term costs for more accurate and credible budget plans
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Doug Hadden

Doug Hadden

Executive Vice President, Innovation at FreeBalance
Doug is responsible for identifying new global markets, new technologies and trends, and new and enhanced internal processes. Doug leads a cross-functional international team that is responsible for developing product prototypes and innovative go-to-market strategies.

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