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Information for Business Project
Department of Business Development
Thailand

The Problem

Department of Business Development (DBD) is a government agency under Ministry of Commerce with responsibilities in business registration and business documentation services. After the registration, the applicants shall submit information including business objectives, address, capitalization, shareholder list, number of shares and the promoters, as well as financial statement according to the law. Government sector needs to keep this registered business document and provide the information to the public by data searching and certified copies.

Since the business registration data is very important information in business decision making, therefore, DBD gathers this information to compose a report of registration statistics. Currently, DBD has Business Registration database (juristic person or companies) of 800,000 companies and the number of registration continuously increases every year, the database also include financial information of around 300,000 companies per year, and also share holding listing of about 180,000 companies per year. The target group (customers) comprises of entrepreneurs, scholars, researchers, as well as government and private agencies. The customers have to walk-in, which is a time consuming process as well as causing transportation, photo copies, and in some case, additional fees for data analysis by the experts in order to analyze such data. In addition, the foreign businesses need to officially request DBD through the office of Commercial Affairs in each country.

For the aforementioned, DBD has to allocate its officers to provide the reports of data analysis and business registration statistics, which is a resource consuming process. Each year, there are about 1,500,000 customers who use the business documentation service and tend to increase 15% annually.

However, in the past, business registration data service was only business documentation and business registration information such as registered name and business location. Statistical and analytical data were processed only in primary level such as the number of registration and its comparison with the number of the past 3 – 5 years. For that reason, if the customers want in-depth business data analysis, the advanced statistics - data processing program would then be needed. Today, there are private companies which provide these services at a membership fees, the data however is the concession from DBD. Because of the high expenses, SMEs cannot afford these member fees, unlike larger businesses, listed companies, and banks which can afford membership.

According to the abovementioned issues, DBD initiated the Knowledged-Based Project to provide business data via DBD’s website (www.dbd.go.th) for individuals, entrepreneurs, scholars and the government and private agencies.

Solution and Key Benefits

 What is the initiative about? (the solution)
Benefits for individuals from this project are

1. Businesses, investors, students, researchers, and government agencies may conveniently search for data including business registration, foreign investment, financial analysis, business partners, competitors and trade opportunities from the internet.
2. Individuals are provided with accurate, up-to-date, and credible business data through DBD’s regular business database update. These enable effective business data services, as well as the operational transparency of government agency.

Outcomes from the service alteration are

1. Up-to-date business database and analysis of various types of business reports by accurate programs;
2. Providing internet based services which enable customers a fast and convenient access to the database, which allow quick print-out and time saving, yet cost effective operation;
3. Enhancing customers’ satisfaction by providing alternative of business data;
4. Reducing time, cost, and service processes by the internet based services;
5. Reducing government expenses in terms of manpower and facilities, since the government cannot constantly increase manpower and facilities to meet customers’ growing demand

The outcomes of achievement assessment are :

1. During the first month, 8,171 users visited the website including 26,562 searches on various information. Within the period of nearly one year, there are 74,223 visitors of the website, accessed the data system 452,752 times, while 87 users gave their comments.
2. The evaluation of 100 questionnaires from the website showed that 38% of customers were entrepreneurs, 30 % were producers for distribution, and the remaining were other businesses. The results showed that this project was in the high degree of efficiency and customers’ satisfaction. Beneficiaries were Thai businesses, foreign businesses, accountants, students, researchers, trade associations, individuals, and government and private agencies.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
Period 1 (2005 – May 2006)
Determining the guidelines for hiring professional consultant to design a system for database, analysis, as well as data presentation.

Alteration Initiator
Ms.Orajit Singkalavanich, the former – Director General of Department of Business Development, Ministry of Commerce
Operator
Mr.Ongart Vongvaroral, Director of Bureau of Business Documentation and the government officers of Bureau of Business Documentation, Information Technology Center, and Efficiency Unit, Department of Business Development.

Period 2 (January - June, 2006)
Approval and the implementation of the project

Period 3 (2007 – present)
Additional system improvement to meet all requirements

Alteration Initiator
Mr. Kanissorn Navanugraha, Director General of Department of Business Development

Operator
Mrs. Phanit Lortragool, Director of Bureau of Business Documentation and the government officers of Bureau of Business Documentation, Information Technology Center, Bureau of Business Supervision and Efficiency Unit, Department of Business Development, Ministry of Commerce

Other related organizations
This project supported by both government and private sector including Mrs.Pranee Phasipol, Inspector-General of Ministry of Commerce, The Stock Exchange of Thailand, Thai Chamber of Commerce, The Revenue Department, The Federation of Thai Industries, The Thai Bankers’ Association, Securities Analysts Association, Thammasat University and Chulalongkorn University.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
Regarding the duty of DBD, the department has the main role in providing business information for customers. However, the majority of information on the website is information based which is imperfect and impractical data. To keep abreast in globalization era, therefore, the department has prepared to improve the information system to knowledge based. Both current and new entrepreneurs can use this information to assist their decision-makings, business developments, and reinvestment. The department director and staff have consulted with all government departments and private sectors for developing this.

Important strategies are:

1. Increasing value of information : from Information - based to Knowledge-based
2. Bringing stakeholders from both government departments and private sectors to participate in this project
3. Promoting information to target groups
4. Analyzing data by using Statistic and Financial Programs

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
The DBD will gather and categorize business information, financial statement, financial ratio, and statistics on the website (www.dbd.go.th). In 2005, there are 5 main areas including;
1. Business Registration
2. Foreign Business
3. Data and Statistics
4. Business to Business
5. Business Opportunities

Procedures

1. Gathering company registration and financial statement data
2. Selecting and Categorizing target Businesses
Retailing: electric appliance, pharmacy, construction material Production: jewelry, land development, canned food Service: construction, traveling, e-commerce
3. Financial measuring for analysis
4. Providing hardware and installing software
5. Providing information on the website and service center
6. PR to target group

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
1. According to the law, juristic person is required to submit their financial statement to DBD within 5 months after accounting period (5 months after 30 December). This creates an abnormally high annual work-load in data entering during the period of March – May;
2. Information Technology system cannot support high volume data processing;
3. Businesses are not clearly categorized which cause difficulties in searching for data;
4. Most of the private sectors do not aware about the website and its services;
5. Some users do not understand an information searching method of this website;
6. Lack of capability in developing the system

How to solve the problem

1. Budget for feasibility study in submitting financial statement via the internet;
2. Budget for improving information technology to support data processing;
3. A clear categorizing of business types for ease of data search;
4. PR this service to both government and private sectors;
5. Improving WebPages to be more user friendly and providing training for entrepreneurs about how to utilize the website;
6. Budget for staff development training

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
Total Expense is 7,577,201 Baht ($US 222,858) (exchange rates $US1 = 34 Baht)

- Hiring consultants (6,850,000 Baht)
- Improving Database (Stage 1 expense 500,000 Baht)
- Creating press-kit including documents and CDs (165,000 Baht)
- Training 307 staff between 14 December 2007 -12 January 2008
- Seminars & Workshops for local staff (61,701 Baht)
- Seminars & Workshops for 5,198 accountants between 15 – 17 January 2007
- Exhibition between 15 – 17 January 2007
- 3 Exhibitions in Regional entrepreneurs development project (900 entrepreneurs)
- 300 visitors in Franchising Trade Fair
- 300 contributors in Trade associations Fairs
- 500 visitors in World Smart SMEs 2007
- 300 visitors in annual conference 2007 of international Code Institute

Sustainability and Transferability

  Is the initiative sustainable and transferable?
Since January 15, 2007, the Department has been offering the service via website (www.dbd.go.th). From then, there are approximately 42,000 users per month, 60 percents of the users search through the financial statement analysis followed by juristic person, foreign investment, and business opportunities data.

The Department has PR the benefits of the service and also organized the training for entrepreneurs and officers on how to access the information. The programs include

1. Seminars/Workshop for 5,198 accountants (7 groups);
2. Seminars/Workshop for 900 regional entrepreneurs in the country (3 times);
3. Preparation for 307 Department’s officers;
4. Preparing 5,000 VCDs on how to access the data (printable data)

Currently, it has been nearly a year that the Department has provided the service. The Department is trying different ways to improve the website for users’ interests. Therefore, the department is requesting for new budgets from the government. Moreover, the department has examined successful cases of developing business database, and e-registration in foreign countries.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
The main reason of the success is that it is a new highly effective tool which benefits to all users by offering an alternative for individuals to search for business information in an easier, faster, and cheaper fashion. If the information received is not sufficient, the users can come to the Department for further requests.

After the success of the first project, the Department continues to improve the service by

1. Selecting the companies which have best practice in area such as correctly submit the financial statement and publicize as a good example for others to follow.
2. Extending the service in more categories including business registration data, trade association, and foreign business.

Contact Information

Institution Name:   Department of Business Development
Institution Type:   Government Department  
Contact Person:   kANISSORN NAVANUGRAHA
Title:   Director - General  
Telephone/ Fax:   +(66)2 547 4480-1
Institution's / Project's Website:   +(66)2 547 4481
E-mail:   efficiency@bdb.go.th  
Address:   44/100 Nonthaburi 1 Rd. Bangkrasor, Muang Nonthaburi 11000 Thailand
Postal Code:   11000
City:   Muang Nonthaburi
State/Province:   Nonthaburi
Country:   Thailand

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