1. Jim Tebrake New York, March 2014 The Integrated Business Statistics Program at Statistics Canada Director General Statistics Canada Statistics Canada Statistique Canada

2. Some History  1980s and mid 1990s the business statistics program was characterized by: Multiple Frames Limited use of administrative data Numerous systems and processes Inconsistent methodologies Different concepts Program specific classifications

3. Statistics Canada Statistique Canada Early Drivers – Project to improve Provincial Economic Statistics (PIPES)  Mid 1990s – National Accounts data take on an important administrative role for the Government of Canada Allocation of Harmonized Sale Tax Revenue (VAT) between the Federal Government and Provincial/Territorial Governments Important input in determining revenue generating equalization payments from the Federal government to Provincial / Territorial Governments Large investment was made in the business statistics program in order to improve the quality and detail of the Canadian National Accounts

4. Statistics Canada Statistique Canada  The System of National Accounts was used as the coordinating framework in the modernization of the business statistics program (PIPES)  The PIPES project adhered to the SNA principles of Coherence  Central business frame  Extensive use of administrative data  Targeted collection for Large Enterprises  Common processes Harmonized concepts  Survey content  Classifications  But it did not go far enough… Early Drivers – Project to improve Provincial Economic Statistics (PIPES)

5. Statistics Canada Statistique Canada Current Drivers – Integrated Business Survey Project  Why IBSP? 1.Many survey programs remained outside of the generic process (cost effectiveness). 2.National Account requirement for flexibility (Policy driven)  Research and Development, Globalization, Service sector, introduction of new products and technologies. 3.Business Requirements  Aging infrastructure (systems and classifications)  Statistics Canada is facing financial pressures (value for money)  Government wide initiative to reduce red tape (Reduce respondent burden)  Higher than historical turnover in personnel

6. Statistics Canada Statistique Canada What is the IBSP? 1.Modernization in the way in which we produce business statistics 2.Strong governance that ensures coherence from start to finish and across the different programs that produce business statistics. 3.Uses the System of National Accounts and policy demands as the coordinating frameworks. 4.The IBSP is an important transformational project: –Examined from a conceptual point how we want to function –Operationalize the conceptual approach –Develop infrastructure

7. Statistics Canada Statistique Canada Objective of Project  Address the requirements of the macroeconomic frameworks (SNA, BOP, GFS), policy makers and key users (government, business, public, academic)  Develop generic model for producing business statistics Improve quality, in particular the coherence aspect, across the different programs Robust infrastructure Less expensive to maintain Flexible to respond to client needs Reduce respondent burden  Return efficiencies to the corporation

8. Statistics Canada Statistique Canada Scope of Project  Suite of approximately 150 existing business surveys covering manufacturing, services, retail, agriculture, capital expenditure, energy and R&D ; ad-hoc surveys as well  Covers all survey activities from frame to dissemination Financial and activity based Establishment and enterprise

9. Statistics Canada Statistique Canada Implementation of Project  Gather requirements from major stakeholders (System of National Accounts, policy departments, subject matter divisions)  Build and test the supporting infrastructure  Phase in business surveys over time RY 2013 - Manufacturing, Retail, Services and Capital Expenditures RY 2014 - Energy, Research and Development RY 2015 - Agriculture and Transportation Ry 2016 – Quarterly Financial Survey

10. Statistics Canada Statistique Canada IBSP Pillars - The Generic Statistical Business Process Model  To successfully achieve integration across many programs and processes requires:  Continuous support from Senior leaders  Very strong governance over life of project  Extensive collaboration across the organization  Ability to negotiate and adapt: generic solutions have limitations

11. Statistics Canada Statistique Canada IBSP Pillars - Horizontal Integration

12. IBSP Pillars - Vertical Integration Frame Sampling Collection Edit & Imputation Estimation Analysis Confidentiality Dissemination Target commodities with 2 phase sampling Survey specific indicators (commodity/activity) Update directly on frame Common Editing Strategy Harmonize output Quality indicators Coordination

13. Statistics Canada Statistique Canada IBSP Pillars – Content and Classifications Harmonized common content across business surveys – it is now an enforced standard Harmonized questions to extent possible One mapping between tax information and survey concepts with the Chart of Accounts Reduced content by 20% Enforced use of the North American Industrial Classification System (NAICS) and the North American Product Classification System (NAPCS)

14. Statistics Canada Statistique Canada IBSP Pillars - tools  Generic processors for:  Sampling  Edit and imputation  Estimation  Moving towards one collection platform  Common analytical tools  Used by subject matter analysts and the System of National Accounts analysts;  Simplifies staff mobility

15. Statistics Canada Statistique Canada IBSP Pillars - Methodology  Use of the Business Register Establishment and enterprise based  Two-phase sampling for commodity and activity based surveys  For the rest, Stratified Random sample Allocation industry by geography Take-all strata for complex enterprises Take-some strata for simple establishments

16. Statistics Canada Statistique Canada IBSP Pillars - Metadata The backbone of all survey processes Developed semantic model which illustrates and documents all survey concepts and their properties and relationships with other concepts within a domain of knowledge Developed standard nomenclature and numbering system for survey variables, cells, code sets Will be re-used for all surveys to be integrated into IBSP

17. Statistics Canada Statistique Canada IBSP Pillars - Collection Collection primarily via EDR Modular Approach Built in edits Spreadsheets sent via e-file channel for some large enterprises Reduce the collection window Still keep paper collection Around 70,000 Units collected 4 million $ Collection budget

18. Statistics Canada Statistique Canada IBSP Pillars - Data Processing Implementation of common editing strategy  Resolve as much as possible failed edits through automated editing and imputation to reduce follow-up Systems Common systems platform Improve generalized systems Re-use some existing systems Create Data Service Center

19. Statistics Canada Statistique Canada IBSP Pillars - Streamline the Survey Process (The Rolling Estimates) Proposed processing system - iterative Collection, processing and analysis done in parallel Quality indicators used to dynamically manage collection Basic principle: no manual intervention inside an iteration Collection Processing Analysis Sampling Dissemination

20. Statistics Canada Statistique Canada IBSP Outcomes Coherence Output from different programs integrated into the System of National Accounts Output from different programs comparable by users Eliminates potential overlap in coverage and helps identify coverage gaps Cost Effectiveness Reduction in the number of systems and processes Reduced Response Burden Focus on administrative data, coordinated sampling, electronic collection

21. Statistics Canada Statistique Canada Project Management  To successfully achieve integration across many programs and processes requires:  Continuous support from Senior leaders  Very strong governance over life of project  Extensive collaboration across the organization  Ability to negotiate and adapt: generic solutions have limitations

22. Statistics Canada Statistique Canada Leveraging the benefits of a centralized statistics system

23. Statistics Canada Statistique Canada Conclusion  Over 150 survey’s and programs integrated into the same process using the same systems, concepts and classifications  5 years to develop  Will generate and estimated $2.5 million of efficencies  Currently in the field for collection  Implemenation will continue for several years

24. Statistics Canada Statistique Canada Conclusion  For more details, please contact Marie Brodeur, DG, Industry Statistics Marie.brodeur@statcan.gc.ca