During the year last year, after the publication of news on the share of the new version of CACIC code inventory system, coordinated by the Ministry of Planning, I began to reflect on the symbolic value of this action simple appearance [1 ]. It is not trivial to coat a covert act for simplicity by an amount opposite parametralmente. Understand the concept of the virtuous cycle can help me defend the relevance of CACIC experience, which turns 10 in June 2015.
Alvin Toffler in his book Revolutionary Wealth, points out that in the future wealth will be generated a completely different from the current form. He mentioned that “we live in a parallel, fascinating and unexplored economy, which filled many of our vital needs without paying for it” [2]. According to Toffler, “is the combination of the economy focused on monetary aspects – money – and to that focused on intangibles – knowledge – forming what we will call Wealth System”. The virtuous cycle of the production chain and the economy are part of the Wealth System defended by Toffler.
The first decision to explain the concept of virtuous cycle was to wait a year to publish this article. This decision was justified by the intention to monitor the effects and consequences of the government initiative, which always needs a longer time for analysis. The main concern of this suspensive effect is that the conceptual discussion would not suffer the embargo of a contractual problem, which could be a natural result of a collaborative production process, or technical, due to installation problems of a new system, that is, not wanted to contaminate an analysis of the business model for a problem of contractual or technical.
For the analysis of the aspects that make up the virtuous cycle, you must invoke the beginning of public software. There are several records on the internet about the importance of CACIC inventory system for the model public software [3] and some of them should be rememorados: this is the first software owned by the federal government which was made available to society with a free license and shared in accordance with the Brazilian legal prerogatives. It is the pioneer act to Dataprev- Enterprise Information Technology Social Security, when in 2005 released the system publicly to society.
Even then, the company’s decision in partnership with the Ministry of Planning , corresponded to the first aspect of the virtuous cycle, as a public good (for software), was shared model of permissive license for society, so could take advantage of this solution and create new opportunities in service delivery. The CACIC seems to bring luck to the model, because just from the experience of this “wise Indian” was also possible to register the first results of virtuous cycle.
Although the company is benefited in general with the release of software, the government itself can also take advantage of the result of collaborative production. Based on this principle develops the second aspect of the cycle. Another public entity, the Attorney General’s Farm-PGFN, interested in CACIC system, decided to operate a system installation to make the inventory of their park. When facing some technical difficulties and the need customization tool, the institution decided to hold a contraction for the provision of services in the market, which was terminated in 2011, at which time the contract was signed, exactly six years after the CACIC was published on the website of the Brazilian Public-SPB Software.
The Prosecutor’s decision opens a third aspect which is a direct administrative authority to look for a private service provider to accelerate the process of software development. It would also be something common to such engagement was not a major accounting change: it was not more than an investment for Public Administration, but a service. The investment is related to acquisition of an asset, which hired object is not part of the activities already funded and in the future should be appropriate to the government’s equity. The contracted service does not consist in the production of material assets, so will not be incorporated into the government equity directly.
While the second aspect is related to the provision of a public entity of a software to another, it would be to some extent a seemingly simple step, the third aspect of the cycle adds an important ingredient because we have a public good with the addition of the provision of private services, which by contract the result of the service will be added back to the very public environment , supported in Portal SPB. This means, as explained in the first aspect, that after the delivery of the new version of the public good software, the whole society turned out to be benefited by the result of the contracted service.
Two other relevant facts must be recorded in this contract performed by the Attorney. First the chosen modality was the electronic trading. An arrangement that has proven generated big savings for the government [4]. The second, and that caught the attention too, was attended by seven companies at the event, demonstrating a level of competitiveness for the provision of this service. The opposite scenario envisioned by the opponents of public software model, which defended the inability of the initiative generate competitiveness.
Only the two factors above could open a series of analyzes of public software model, for two best practices are employed forcefully: the mode of electronic trading and the multitude of suppliers. But here we treat them as side effects, since Article focus is the virtuous cycle.
The cycle enters its final phase when the Ministry of Planning in legal mechanism of Accession to the price Registration Act [5], decides to hire some service items for domestic consumption and for carrying out a far-reaching inventory for the administration itself. Then characterized a fourth aspect of the cycle, as the initial relationship between the contractor (PGFN) and the contractor (private company), there is a network operation, especially in this collaborative production practices, where a third one is benefited to use the new version of a shared solution.
A fifth aspect deserves special mention due to ecosystem management model CACIC community. From the beginning, the PGFN and the Ministry of Planning, held meetings to jointly define the requirements that are hired. This means that resources were allocated more rationally, saving to the public purse and, secondly, at the same time accelerated the development process, since these were defined incremental services together.
Important strengthen the open models do not require users to give back the developed upgrades. That is, the fact of PGFN and the Ministry of Planning MP-use CACIC and hire development services, does not require that the result of contractual effort to be shared. This means that those involved need to believe in the logic of virtuous cycle to ensure that the hiring and joint management mechanism manages full results for the whole community. This is an important accumulation profiles, as the institution becomes at the same time, system user and catalyst for collaborative production process.
When investigating the path of virtuous cycle, there is everyone involved in the process earn somehow. This phenomenon can be seen in the summary of the cycle: a software developed by a public company (Dataprev), had the beneficiary a direct administrative authority (PGFN), who sought services in the market (public notice) and the results favored the contracting agency (PGFN), parallel to the offeror (Dataprev) and the third party (Ministry of Planning-MP). Then the two public agencies after the combined action, started to benefit the whole society (CACIC community).
With regard to the economic aspect the public resource (PGFN and MP) was used for the benefit of the public sector itself (Dataprev) generated business opportunity in the market (contracted private company) and the result of the development was intended for the whole society (CACIC community), including the own service provider that could not even be part of the community.
In the end, still appears a sixth aspect: the initiative of the public sector at any time prevented other business opportunities were generated for the market. The central issue is the result of the ownership regime that is public, not private, where the own chain of ownership does not prevent new business opportunities arise, because the focus is not the product but the service. The important thing is that the next contract will consider the progress made in the previous contract. In this case, it is evident the characterization of a virtuous cycle.
It is observed that the six aspects reported here to be treated in isolation appear to have some novelty. However, when mentioned conjugate and interconnected way, clearly demonstrate the existence of a virtuous cycle that generates a commonly denomidada win-win relationship. An important component of this relationship is that this “gain” end exceeds directly involved in the process, because it is an intangible developed in the collaborative production.
So the public software closes its first cycle virtuous and puts into practice a concept addressed by Alvin Toffler theoretical and his wife Heidi, in the book Revolutionary Wealth, where the two discuss the future of Wealth System is the result of monetary aspects – set up by the contracting of services from the CACIC the market – and intangible aspects – the result of the production of the new version of the system was shared with all producers and users of the chain
Notes:
[1] Portal SPB:. available new version of Cacic
http://www.softwarepublico.gov.br/news-item350
(last accessed 02.04.2015)
[2] Book Revolutionary Wealth – the meaning of wealth in the future, Alvin and Heidi Toffler, 2007 Publisher Future
[3] The materialization of Public Software concept:. the initiative of CACIC, Public Computing Magazine .
www.ip.pbh.gov.br/ANO7_N2_PDF/IP7N2_peterle.pdf
(last accessed 02.04.2015)
[4] Use the Electronic Auction generates savings of R $ 9.1 billion in 2013, 10 February 2014, the Ministry of Planning Portal.
http://www.planejamento.gov.br/conteudo.asp? p = news & amp; read = 10918
(last accessed 04.02.2015)
[5] Portal SPB: price Registration Act, hiring PGFN
http://www.softwarepublico.gov.br/spb/download/file/2012-Ata_PGFN
(last accessed 04.02.2015)
* Corinth Meffe is advisor to Serpro board.
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