NIC: Building the E-Government Interface

We have experienced the surge of B2B, B2B, and C2C. What about G2G or B2G
or G2C? That is, government to government, business to government, and
government to consumer. These three segments represent the e-government
marketplace.

Government is the antithesis of the Internet. It is slow, resists change,
and has high barriers of entry. However, the Net represents a great avenue
for governments — because the Net helps to reduce costs.

National Information Consortium (EGOV)
is at the forefront, looking to dominate the e-government marketplace.
Simply put, NIC designs, builds and operates Internet-based portals on
behalf of state and local governments to provide access to government
information and to complete government-based transactions online.

This e-government interface allows businesses and citizens to access
government information and to complete government-based transactions. Some
examples of applications include: professional license renewals, Internet
tax filings, driver’s license and motor vehicle record searches, automated
UCC file searches and automobile registration renewals.

The business model is simple: They take a cut of the transactions from the
sites they set up for free. In fact, NIC already has eleven statewide
portal partnerships and application agreements with nine states. The
majority of revenues are generated from selling driver’s license records to
companies in the car insurance business. This may not sound exciting, but
it makes money.

Yesterday, NIC’s stock closed at $46-1/2. The range this year has been
$11-1/4 to $78. The company went public on July 20, 1999.

The company is gaining ground. Revenues soared to $57.0 million for the
year ended December 31, 1999 compared to the previous year’s $28.6 million.

NIC has been expanding its business via acquisitions. Last month, the
company made a particularly savvy move by purchasing SDR, a provider of
Internet-based applications for governments. SDR designs and develops
online election and ethics filing systems for federal, state and local
government agencies. eFed is another company that NIC purchased.

The e-government marketplace is still in its infancy. So far, NIC has made
much progress with its first-mover advantage. Continue to see much more
action from the company — and for shareholders.

—–
“B2G is the next wave! The barriers-to-entry and market opportunities are greater than B2B. EGOV clearly has the first mover advantage…”
Discuss it here



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