Interoperability - Better Data, Better Solutions

The Obama campaign has pushed the concept of empowering the citizenry through the Internet. But the Internet cannot merely be perceived as web pages and human interface for information. The concept of eGovernment must also include the interoperability of government systems both internally and externally and the expansion of the economy’s data infrastructure. While transparency in government actions will help inform citizens, better public policy can only be created if the data upon which those solutions are developed is clean and accurate. Additionally, the creation of a data infrastructure promotes innovation in the economy. Yet government has consistently avoided getting involved in the standardization of data, even though the creation of standards has been part of the role of government for over a century. 

An Obama administration would implement the following three policies in order to provide the data backbone for innovation:

• Provide a standardized and consistent interface for subscribing to government data and publishing data to the government
• Promote the consolidation and timely availability of data in areas that are part of the public good (i.e. energy data)
• Provide regulation around data standards for state and local government (i.e. education data)

Each of these elements will allow individuals to interact more easily with the government, will spur investment in new services and allow government to provide more transparency in the choices it provides it citizens.

Government’s efforts to consolidate and report on data have already created benefits for citizens. Efile for taxes has improved filing return rates and allowed citizens to get their tax refunds sooner. Access to energy data has provided services such as real-time pricing which allows customers to change their energy use patterns based on the current price of energy. Collection of education data provides both transparency to the quality of schools and mechanisms for school choice.

Efile started a joint project between the IRS and HR Block back in 1985. Since then it has blossomed to where nearly 65 percent of people file their taxes using the internet .

This is an enormous cost saver for the IRS and people get their taxes back more quickly. In addition with enhanced data collection mechanisms the IRS should be able to provide data export electronically as well. While organizations like the Tax Foundation are able to provide analysis of IRS statistics, more readily available data could allow more interactive toolsets. For example, the IRS provides significant datasets on its website, but its goal should be to allow this data to be machine readable so organizations can provide tools for understanding where their taxes fall relative to others (so that they can learn that they unlikely to see a tax raise under an Obama administration).

Similar to the IRS, utilities are starting provide customers the ability to pay bills and manage their accounts online. However, while energy consumption data is critical to our ability to manage carbon emissions and reduce energy costs, consolidating energy consumption data across individuals is difficult to do. What industries are producing the most emissions and what types of solutions should we be targeting? The Energy Information Administration provides much of this information, but like the IRS the data is often out of date and not machine readable. In addition much of the data is derived from surveys that the government implements. Understanding real usage data can lead to incredible insights. For example, research on energy prices has shown that when using real time pricing schemes for energy (as opposed to a flat price) “participants could expect to save approximately 10% of their current electric costs”,  In fact “cumulative savings of 11%” have been seen in pilot programs.

Just as eFile demonstrates the enhanced data infrastructure of the Federal government and energy usage data demonstrates the consolidation of data for the public good (other areas to consolidate data would be healthcare and complex pricing schemes such as mortgages), another avenue for data standardization and consolidation would be at the State level promoted by the Federal government. For example, data standards for education are already providing benefits to school districts.  SIF (School Interoperability Framework) allows school systems to share data and has been used to provide data for school report cards. Western Heights District in Oklahoma City, for instance, has used SIF and been able to meet NCLB requirements without any additional staff. In addition, between 2002 to 2005, test scores have improved.

Easier access to government, cost savings and environmental benefits, better schools and better choices; data is a key driver in how the economy functions. On many levels, information makes for more efficient markets. Just as government takes responsibility to maintain competitiveness and regulate consumer safety, data provides a mechanism for government to improve competition, not restrict it. Of course security and privacy concerns need to be addressed, but better data drives better solutions.

An Obama administration would support an infrastructure that allows better solutions and enhances innovation demonstrated by the success stories related here.