Tapping into existing information flows: The transformation to compliance by design in business-to-government information exchange

Transforming Business-to-Government (B2G) information exchange is a next frontier for reducing government spending while improving performance. This paper examines two different B2G information exchange architectures that reflect continuing transformations that empower some government agencies to do better compliance monitoring tasks with fewer resources. The win for the reporting companies is the lower cost of compliance. Instead of focusing on collecting compliance information from individual companies, the government agencies in this study focus on collecting information on the supply chain level, allowing for automated data reconciliation. Our findings reveal that pushing controls (automated checks) upstream (in company software and data sources) results in more efficiency, higher information quality and reduces redundant controls. The examined architectures exhibit high levels of compliance by design, meaning that many control objectives are by default encompassed in the design. This requires a well-aligned combination of data standardization (using shared syntax and semantics) and automated information processing (using an intelligent gateway between businesses and government agencies). However, achieving such an alignment is a difficult challenge; especially when taking into account that such transformations require solid governance, trust and high initial investments — prerequisites that are rare in many public-private partnerships.