CHAPTER VIII CRITICAL SUCCESS FACTORS AND SWOT OF E...

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273 CHAPTER VIII CRITICAL SUCCESS FACTORS AND SWOT OF E-GOVERNANCE Identification and evaluation of critical success factors and Strength, Weakness, Opportunity and Threat (SWOT) of E-governance initiative provide a platform for policy makers to steer its course in a desirable direction with a futuristic perspective. The present chapter has two parts. The first part deals with the critical success factors and the second one deals with SWOT analysis. 8.1 Critical Success Factors of E-governance The critical success factors and their performance are considered as key indicators to measure the degree of success of E-governance. Critical success factors refer to those factors responsible for the successful implementation of E-governance. The key to the E- governance success is that the performance parameters have to be well-defined at the planning stage of each government computerisation project and evaluated at the deployment stage (Madon S. and G.K. Kiran 2003). These pre-defined critical success factors and key performance indicators are essential to justify the return on investment in E-government projects. The critical success factors related to organizational readiness are focused around three key drivers: the process, the people, and the technology. First, it is important to ensure that the processes are reviewed and re-engineered when it is necessary to support a new way of doing business. As with any application of technology, business process review should be performed, streamlining of opportunities should be identified, processes and procedures should be improved, and solutions should be designed around these improved processes. The second driver, the people, relates to having an adequate level of well-trained people to both support and use these systems. The third driver of organizational readiness, the technology, focuses on assessment of the current infrastructure, identification of improvements needed to support E-governance

Transcript of CHAPTER VIII CRITICAL SUCCESS FACTORS AND SWOT OF E...

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CHAPTER VIII

CRITICAL SUCCESS FACTORS AND SWOT OF

E-GOVERNANCE

Identification and evaluation of critical success factors and Strength, Weakness,

Opportunity and Threat (SWOT) of E-governance initiative provide a platform for policy

makers to steer its course in a desirable direction with a futuristic perspective. The

present chapter has two parts. The first part deals with the critical success factors and the

second one deals with SWOT analysis.

8.1 Critical Success Factors of E-governance

The critical success factors and their performance are considered as key indicators

to measure the degree of success of E-governance. Critical success factors refer to those

factors responsible for the successful implementation of E-governance. The key to the E-

governance success is that the performance parameters have to be well-defined at the

planning stage of each government computerisation project and evaluated at the

deployment stage (Madon S. and G.K. Kiran 2003). These pre-defined critical success

factors and key performance indicators are essential to justify the return on investment in

E-government projects.

The critical success factors related to organizational readiness are focused around

three key drivers: the process, the people, and the technology. First, it is important to

ensure that the processes are reviewed and re-engineered when it is necessary to support a

new way of doing business. As with any application of technology, business process

review should be performed, streamlining of opportunities should be identified, processes

and procedures should be improved, and solutions should be designed around these

improved processes. The second driver, the people, relates to having an adequate level of

well-trained people to both support and use these systems. The third driver of

organizational readiness, the technology, focuses on assessment of the current

infrastructure, identification of improvements needed to support E-governance

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initiatives, implementation of those improvements, and integration of existing

autonomous systems and between new and legacy systems, with a focus on providing a

total solution. Implementation of a uniform messaging standard, adequate bandwidth and

reliable, redundant networks are examples of critical infrastructure requirements that

support E-governance initiatives.

A prerequisite for the successful implementation of innovative practices such as

E-governance is to identify a set of variables, which condition the success of E-

governance and evaluate these variables over time. A procedure has developed for the

identification and evaluation of the important critical success factors. Initially, a set of

experts, which include technical experts, academicians, administrators, political

personnel, who are actively engaged in E-governance practices are selected. The selected

experts were asked to prioritise factors, which influences the success of E-governance.

The factors, which received rank correlation coefficient greater than 0.5 are selected from

each category. The existing level of those variables under each category is assessed in a

five point Likert Scale. The five points are very low, low, normal, high and very high and

they receive a value 1, 2, 3, 4 and 5 respectively. Following are the major categories used

for the evaluation of critical success factors.

I. Institutional Factors

Institutional factors are organizational factors responsible for the

successful implementation of E-governance programme. The important institutional

factors identified at Panchayat level are: clear cut and effective definition of the functions

of Panchayat; better direction to the E-governance strategy; commitment from the part of

government to implement E-governance programme; commitment to spread E-

governance initiative to entire administrative units; internal political desire drive to

promote E-governance initiatives; allocation of adequate and timely funds for fresh E-

governance initiatives; allocation of adequate funds for maintenance of E-governance

system; enterprise approach for managing the system; a plan for access of the service

from E-governance to all sections in the society; and the existence of robust and reliable

infrastructure.

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II. Technical Factors

Technical factors are those factors, which relates to both hardware

and software of E-governance system. Online infrastructure like server availability,

uninterrupted electricity supply, smooth back office front office integration etc are

considered as major hardware technical factors responsible for the successful E-

governance installation. Software factor is also considered as the prime determining

factor of the success of E-governance. The major items comes into this category are user-

friendly application software, error and bug freeness, high speed data transfer ete.

III. Managerial Factors

The management category deals with strategic issues such as dynamic management;

political leadership; institutionalizing, continuous monitoring and evaluation of the

projects. Political leadership with a clear vision is essential to ensure successful

implementation and efficient management of E-governance. The solution for

organizational and cultural inertia lies in a strong leadership. The organizational and

cultural changes are often more difficult to execute than the technological challenges.

The change in management and a strong political leadership are other necessary

conditions for the successful implementation of E- governance.

IV. People Factors

Creation of a better atmosphere of computerisation by the people is considered as

the major pre requisite for the successful installation of E-governance. Better awareness

about the Panchayat activities along with a steep fall in digital divide has created a

favourable atmosphere for E-governance operation among most of the Panchayats in

Kerala. Customers want to spend less time in Panchayat to get service and they prefer

impersonalisation of services to avoid corruption and discrimination. People factors are

the demand side factors and hence it always focus on reducing cost and ensuring a fair

and friendly treatment from the suppliers. Thus the growth of literacy along with

improved accountability and responsibility of the citizens are the major critical success

factors from the people side.

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V. Employee’s Factors

Employees are the real service providers of local self government. They are

standing in midway between management or political leadership and customers. Hence

employees’ factors are pivotal critical success factors of E-governance. The major

employees’ factors include level of computer knowledge, positive attitude towards

computerisation, better quality training, spending more time with computers, entering

error free back up data etc. More over there should be a positive perception among the

government officials about the benefits of E-governance initiative to the citizens.

VI. Cultural Factors

Socio-cultural factors play a very important role in the successful

installation of E-governance programmes especially in rural areas. Trust between

employees and customers should grow hand in hand and that may create a cordial

environment for realising customers satisfaction. As a result of that corruption, red tapism

and vested interest can be reduced to minimum. Degree of fair treatment of the

employees, willingness of the people to accept new modalities of E-governance,

willingness to learn skill for accessing services through computers, positive and

constructive attitude of political leadership in implementing the new system are

considered as major cultural factors responsible for the successful E-governance

programme implementation.

Data collection, sample and analysis

Survey method has been used to collect data for identifying critical success

factors and for SWOT analysis. The data has been collected from well informed persons

in connection with E-governance which include policy makers, administrators,

academicians, politicians and employees.

The first step in the analysis is to ensure the construct validity of the questionnaire

to improve the validity of the study to reflect the reality. Construct validity is broadly

defined as the extent to which an operational measure the concepts it is presumed to

measure.

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Validity analysis

Validity is defined as the extent to which any measuring instrument measures

what it is intended to measure (Carmines and Zeller 1990). The comprehensive list of

validity types that are mentioned in texts and research literature include face, content,

convergent, discriminate and criterion- related validity. This proposed instrument has

been tested for validity, so that it could be used for meaningful analysis. The three

aspects of validity namely, face validity; content validity and convergent validity have

been tested as explained below.

Content Validity

Content validity depends on how well the researchers created measurement items

to cover the content domain of the variable being measured (Ahire et. al.1996). As a

result, it is subjectively judged by the researchers. Indeed, the selection of measurement

items was based on an extensive review of the literature. Content validity of an

instrument refers to the degree to which it provides an adequate depiction of the

conceptual domain that is designed to cover. In the case of content validity, the evidence

is subjective and logical, rather than statistical. Establishment of content validity warrants

sound, logic, good intuitive skills and high perseverance on the part of the instrument

designer. Content validity can be ensured if the items representing the various constructs

of an instrument are substantiated by a comprehensive review of the relevant literature

(Issac et.al.2004). The present instrument has been developed on the basis of a detailed

review and analysis of the prescriptive, conceptual, practitioner and empirical literature,

so as to ensure content validity.

Face Validity

Face validity is concerned if the items are reasonably related to the perceived

purpose of the measure (Kaplan and Scauzzo, 1993). Face validity is the subjective

assessment of the correspondence between the individual items and the concept through

rating by expert judges. Face validity is also a subjective and logical measure, similar to

content validity. The face validity can also established through review of the instrument

by experts in the field. The experts have been requested to scrutinize the questionnaire

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and to give their impressions regarding the relevance and contents of the questionnaire.

They were asked to examine the questionnaire critically, and give feedback and suggest

with regard to comprehensiveness, redundancy level, and consistency in each variable. It

may be noted that the content validity and face validity have assured in the initial stages

of questionnaire development itself.

Convergent Validity

The evidence for convergent validity is obtained when a measure correlates well

with other measures that are believed to measure the same construct. In other words,

convergent validity is the degrees to which the approaches to construct measurement are

similar to other approaches that they theoretically should be similar. It can also be seen

that each item in a scale is treated as different approach to measure the construct (Ahire

1996). Using Confirmative Factor Analysis technique, the convergent validity can be

checked with the help of a coefficient called Bentler-Bonett Fit Index (BFI). Bentler-

Bonett Fit Index is the ratio of the differences between the chi-square value of the null

measurement model (the null model has no hypothesized factor loading on a common

construct in the confirmatory factor analysis) and the chi-square value of the specified

measurement model to the chi-square value of the null model. A scale with BFI values of

0.90 or above that is an indication of strong convergent validity (Ahire et. al. 1996).

Unidimensionality analysis

Unidimensionality refers to the existence of a construct underlying a set of

measures. The most important and fundamental assumption in measurement theory is that

a set of items forming an instrument measures just one thing in common. Items within a

measure are useful only to the extent they share a common nucleus the characteristics to

be measured. It is highly difficult to represent a value of a scale by a solitary number

without the concept of unidimensionality (Sureshchandar et. al. 2001). The

unidimensionality index helps to solve the problems associated with unidimensionality.

The instrument can be fine tuned in this manner.

Individual items in the model are investigated to see how closely they represent

the same construct (Ahire et. al. 1996). A Comparative Fit Index of 0.90 or above for the

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model implies that there is strong evidence of unidimensionality (Sureshchandar

et.al.2001). Unidimensionality, though a necessary condition, is not sufficient by itself to

establish the usefulness of a scale. Once unidimensionality is established, its statistical

reliability should be assessed before it is subjected to any further validation analysis.

Reliability of a measure determines its ability to yield consistent results. Even a perfectly

unidimensional scale would be rendered futile if the resultant aggregate score is

ascertained basically by measurement error, which the values of the scores broadly

fluctuating over repeated measures.

Reliability analysis

The initial consistency of a set of measurement items refers to the degree to which

items in the set are homogenous. Internal consistency can be estimated to which items in

the set are homogenous. Internal consistency can be estimated using a reliability

coefficient such as Cronbach’s Alpha (Ahire et. al. 1996). The coefficient is computed for

a scale based on a set of items or any subject of the items. It is therefore possible to

identify the subset that has the highest reliability coefficient. Reliability of an instrument

is defined as the extent to which any measuring instrument yields the same results on

repeated trials. It is the degree to which the instrument yields a true score of the variable

under consideration. The instrument is not considered as reliable to the extent to which it

contains measurement error. The several methods to establish the reliability include test

retest method, equivalent forms, split-halves method, and internal consistency method. Of

all these methods, the internal consistency method is most effective, since it has the

advantage that it requires only one administration, and consequently this method is

considered to be the most general form of reliability estimation. Reliability is

operationalised as internal consistency, which is the degree of inter correlation among the

items that constitute the scale. An alpha value of 0.70 or more is considered as strong

consistency of established scales (Sureshchandar et. al. 2001). If a scale is found to

violate the above stipulations, its items are examined and those items with leasttotal

correlation are removed.

The estimated values of Comparative Fit Index (CFI), Bentler-Bonnet Fit Index

(BFI) and Cronbach’s Alpha index are given along the values of various critical success

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factors. The structural equation modeling software AMOS and SPSS version 15 were

used for estimating these indices.

Comparison of Critical Success Factors

In the following analysis, the identified critical success factors under various

categories are evaluated. The Table :-( 8.1.1) shows the mean value of various

critical success factors under institutional dimension.

Table: - 8.1.1 Mean Value of Institutional Factors and Its Ranking

Source: Field Survey, 2011

It is clear from Table that major institutional factors responsible for the successful

implementation of E-governance is the better direction to the E-governance strategy.

Kerala’s E-governance strategy is well defined especially at the Panchayat level. The

implementation agency of E-governance for local self government institutions, has

defined a clear cut strategy to implement E-governance system in all the Panchayat. The

Institutional Factors N Mean Rank

Clear cut and effective definition of the functions of Panchayat 50 3.42 2

Better direction to the E-governance strategy 50 3.46 1

Commitment from the govt. to implement E-governance

programme 50 3.18

4

Commitment to spread E-governance initiative to entire

administrative units 50 2.92

10

Internal political desire drive 50 3.00 8

Allocation of adequate and timely fund for fresh E-governance

initiatives 50 3.08

6

Allocation of adequate fund for maintenance of E-governance

system 50 3.10

5

Enterprise approach 50 3.02 7

A plan for access by all facets of society 50 2.94 9

Robust and reliable infrastructure 50 3.20 3

Convergent validity, uni-dimensionality and reliability indices

Comparative Fit Index (CFI) 0.912

Bentler-Bonnet Fit Index (BFI) 0.951

Cronbach’s Alpha 0.899

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better direction, clear cut and effective law in providing service delivery and project

formulation are other important institutional factors. In addition, a robust and reliable

infrastructure at the Panchayat is a critical factor for the successful implementation of E-

governance initiative. However, the speed by which the spread of E-governance to all

layers of administrative structure is not very robust at present.

The following Table shows the mean value of various technical factors that act as

critical for successful implementation of E-governance at Panchayat level.

Table: -8.1.2 Mean Value of Technical Factors and Its Ranking

Source: Field Survey, 2011

Technical Factors N Mean Rank

Availability of sufficient hardware equipments 50 3.26 11

The available hardware having required quality 50 3.18 12

Availability of other infrastructure facilities 50 3.19 13

Use of strong and robust application software 50 3.48 07

User friendly application software 50 3.80 03

Application software is flexible to add new functionalities 50 3.44 08

Application software is free from error and bugs 50 3.72 04

Integration and embedment of all civic services 50 3.28 10

Remote access of services provided through E-governance 50 3.36 09

Integration of online application 50 3.54 06

Lower processing time due to front end validation 50 3.88 02

High speed data transfer facilities 50 3.98 01

The possibility of combining data from multiple sources 50 3.58 05

Effective sharing of E-governance information 50 3.64 04

Convergent validity, uni-dimensionality and reliability indices

Comparative Fit Index (CFI) 0.901

Bentler-Bonnet Fit Index (BFI) 0.962

Cronbach’s Alpha 0.826

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The important technical factors which show very high development in the context

of Kerala are the availability of high speed data transfer facilities and resultant lower

processing time of data. The existing application software’s are more user friendly and

facilitates effective sharing of E-governance information are other high ranked positive

technical factors for the implementation of E-governance. However, the frequent power

cuts and the absence of the proper infrastructure facilities such as availability of

generator, air-conditioned room for the server etc. act as a drag on the process of E-

governance initiatives.

The following Table:-8.1.3 summarises the various managerial factors and their

present status of development. The highly developed managerial factors are the quick

and timely decision making, identification of decision priorities and regular monitoring

and evaluation of key critical processes. The least developed managerial factors are

proper and effective allocation of responsibilities and clarity in decision making process.

Table: -8.1.3 Mean Value of Managerial Factors and Its Ranking

Managerial Factors N Mean Rank

Clarity in decision making process 50 3.56 11

Quick and timely decision making 50 4.00 01

Proper and effective allocation of responsibilities 50 3.48 12

The decision making process are based on data processed

through E-governance 50 3.66 08

Integration of data flow among various layers 50 3.58 10

Adaptability and flexibility in decision making approach 50 3.70 07

Systematic assessment of quality standards 50 3.76 05

Regular monitoring and evaluation of critical key process 50 3.82 03

Decision priorities are identified 50 3.88 02

Better coordination of local, state and national E-governance

initiatives 50 3.64 09

Presence of confidence of better and effective management 50 3.78 04

Inculcating a change in attitude 50 3.72 06

Convergent validity, uni-dimensionality and reliability indices

Comparative Fit Index (CFI) 0.931

Bentler-Bonnet Fit Index (BFI) 0.913

Cronbach’s Alpha 0.881

Source: Field Survey, 2011

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The Table:-8.1.4 summarises the status of development of various factors

connected with people.

Table: - 8.1.4 Mean Value of People Factors and Its Ranking

People Factors N Mean Rank

Spending less time to obtain information 50 4.08 01

Getting quick and error free service 50 4.06 02

Reduce the cost of obtaining services 50 3.82 04

Customers get anywhere any time services 50 3.16 10

Enabled the access of e-services for people with disabilities and

others 50 3.40 09

Avoiding the possibilities of discrimination 50 3.72 08

Protect the confidentiality 50 3.76 05

Customers receive a fair and friendly treatment from employees 50 3.70 07

Growth of general literacy and e-literacy 50 3.94 03

The improved accountability and responsibility 50 3.70 06

Convergent validity, uni-dimensionality and reliability indices

Comparative Fit Index (CFI) 0.905

Bentler-Bonnet Fit Index (BFI) 0.907

Cronbach’s Alpha 0.890

Source: Field Survey, 2011

The important factors centered on people in the process of E-governance initiative

at Panchayat level are the possibility of spending less time and obtain information and

services quickly and error free. In the context of Kerala, the growth of general literacy

and E-literacy supported by various government programmes ensures a better

environment for the speedy implementation of E-governance initiatives. However, the

possibility of getting anywhere any time services is still not much improved when

compared to other factors.

The Table:-8.1.5 shows the status of development of various employee factors.

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Table: - 8.1.5 Mean Value of Employee Factors and Its Ranking

Employee Factors N Mean Rank

Improved computer knowledge and skill among employees 50 3.80 07

Positive attitude of employees 50 4.10 01

Employees level of training in latest technology 50 3.74 09

The degree to which the employees are trained 50 3.70 10

Level of training to identify the right persons 50 3.42 12

Training in quality management system 50 3.44 11

Training in developing communication skill 50 3.82 06

Training in monitoring and controlling projects 50 4.04 02

Training in team building and group dynamics 50 3.92 05

Employees skill to identify error and bugs 50 3.94 04

Employees ability to correct errors and bugs 50 3.98 03

Employees initiatives in upholding and updating the citizen charter 50 3.78 08

Convergent validity, uni-dimensionality and reliability indices

Comparative Fit Index (CFI) 0.936

Bentler-Bonnet Fit Index (BFI) 0.901

Cronbach’s Alpha 0.893

Source: Field Survey, 2011

Employee’s factors are considered as one of the prime critical success factors of

E-governance as they are considered as the key for implementing it. The significant

development is the positive attitude of the employees, which acts as a dominant factor in

the progress of E-governance beyond technology and rules and regulation. The present

status of general training to employees in monitoring and controlling the projects and

correcting the errors and buggs are critical for the successful implementation of E-

governance initiatives. However, the attempt of identifying the right person for the right

job and quality management training need much improvement.

The Table:-8.1.6 summarises the development of various cultural factors

associated with the development of E-governance in Kerala.

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Table: - 8.1.6 Mean Value of Cultural Factors and Its Ranking

Cultural Factors N Mean Rank

Customer satisfaction in achieving quality 50 3.82 09

Trust and openness among employees and customers 50 3.82 10

Clear vision on the role and responsibilities of employees 50 4.04 04

Employees accept quality and timely provision of services 50 3.94 07

Existence of organizational structure to minimise bureaucratic

red tapism 50 4.04 03

Presence of incentives schemes to motivate employees 50 3.86 08

Degree of respect and fairness treatment 50 3.98 06

Improvement in the accountability as good and law abiding

citizens among people 50 3.74 11

The willingness to accept the new modalities 50 4.10 02

The willingness to learn the skill for accessing the services 50 4.08 03

Positive and constructive attitude of policy makers 50 4.46 01

Positive and constructive attitude of political leadership 50 4.00 05

Convergent validity, uni-dimensionality and reliability indices

Comparative Fit Index (CFI) 0.934

Bentler-Bonnet Fit Index (BFI) 0.918

Cronbach’s Alpha 0.901

Source: Field Survey, 2011

A positive change in the cultural attitude of customers, employees and elected

representatives is one of the aims of E-governance. The positive and constructive

attitudinal change among policy makers for accepting the new modalities and reduction

in bureaucratic red tapism have received a positive change in Kerala. However, the trust

and openness between employees and employers and accountability of people as good

and law abiding citizens need much more improvement.

The following Table:-8.1.7 shows the comparative status in the development of

various critical success factors of E-governance initiative at local level in Kerala. The

mean value shows the summary status of development of all these critical success factors.

Among the various factors, the positive change in cultural attitude and employees’ factors

are more developed compared to others. The role played by these factors is highly

responsible for the present successful implementation of E-governance in Kerala at local

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level. The least developed critical success factor is the needed institutional change

including infrastructure improvements.

Table: - 8.1.7Average Score of Critical Success Factors

Average Score of N Minimum Maximum Mean Std. Deviation

Institutional Factors 50 1.70 4.40 3.13 0.616

Technical Factors 50 2.42 4.42 3.51 0.432

Managerial Factors 50 2.75 4.75 3.71 0.575

People Factors 50 2.70 4.50 3.73 0.410

Employees Factors 50 2.83 5.00 3.80 0.514

Cultural Factors 50 2.83 4.83 3.99 0.496

Source: Field Survey, 2011

The correlation coefficient given in the Table:-8.1.8 shows that all critical success

factors are highly correlated. It implies that the all round development of E-governance

initiative warrants a holistic approach by which the stress should be given for the

development of all the critical factors simultaneously.

Table: -8.1.8 Correlations Coefficient between Critical Success Factors

Average

score of

Inst

itu

tion

Tec

hn

ical

Man

ager

i

al

Peo

ple

Em

plo

yee

Cu

ltu

re

Institutional

Factors

Pearson

correlation 1 .520(**) .535(**) .555(**) .593(**) .663(**)

Sig. (2-

tailed) .000 .000 .000 .000 .000

N 50 50 50 50 50 50

Technical

Factors

Pearson

correlation .520(**) 1 .877(**) .792(**) .862(**) .754(**)

Sig. (2-

tailed) .000 .000 .000 .000 .000

N 50 50 50 50 50 50

Managerial Pearson .535(**) .877(**) 1 .877(**) .766(**) .722(**)

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Factors

correlation

Sig. (2-

tailed) .000 .000 .000 .000 .000

N 50 50 50 50 50 50

People’s

Factors

Pearson

correlation .555(**) .792(**) .877(**) 1 .720(**) .712(**)

Sig. (2-

tailed) .000 .000 .000 .000 .000

N 50 50 50 50 50 50

Employees’

Factors

Pearson

correlation .593(**) .862(**) .766(**) .720(**) 1 .853(**)

Sig. (2-

tailed) .000 .000 .000 .000 .000

N 50 50 50 50 50 50

Cultural

Factors

Pearson

correlation .663(**) .754(**) .722(**) .712(**) .853(**) 1

Sig. (2-

tailed) .000 .000 .000 .000 .000

N 50 50 50 50 50 50

** Correlation is significant at the 0.01 level (2-tailed).

Existing structural pattern of development of critical success factors of

E-governance

It is observed from the analysis that the E-governance development at Panchayat

level depends on the critical success factors such as institutional, technical, managerial,

people, employee and cultural factors. The overall development of the critical success

factors is the outcome of the development of individual factors. Principal Component

Technique of Factor Analysis is used to extricate the percentage variations explained by

various components.

Initially, from each critical success factors, five indicators are selected. The

indicators selected from each factor are based on the values of inter-correlation

coefficients. Those indicators, which have high inter-correlation coefficient within a

particular dimension, are selected. The Table:-8.1.9 summarises the indicators which are

selected from each critical success factors.

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8.1.9 Indicators of critical success factors for Factor Analysis

Variable

list

Dimension Indicators

1 Institutional Commitment from the Govt. to implement E-governance programme

2

Commitment to spread E-governance initiative to entire administrative

units

3 Internal political desire drive

4 Enterprise approach

5 Robust and reliable infrastructure

6 Technical Availability of sufficient hardware equipments

7 The available hardware having required quality

8 Availability of other infrastructure facilities

9 Lower processing time due to front end validation

10 Effective sharing of E-governance information

11 Managerial Quick and timely decision making

12

The decision making process are based on data processed through E-

governance

13 Adaptability and flexibility in decision making approach

14 Systematic assessment of quality standards

15 Regular monitoring and evaluation of critical key process

16 People Reduce the cost of obtaining services

17 Protect the confidentiality

18 Customers receive a fair and friendly treatment from employees

19 Growth of general literacy and e-literacy

20 The improved accountability and responsibility

21 Employee Positive attitude of employees

22 The degree to which the employees are trained

23 Training in developing communication skill

24 Training in team building and group dynamics

25 Employees ability to correct errors and bugs

26 Cultural Trust and openness among employees and customers

27 Clear vision on the role and responsibilities of employees

28 Employees accept quality and timely provision of services

29 Existence of organisational structure to minimise bureaucratic redtapism

30 Positive and constructive attitude of policy makers

Source: Estimated Results

The Factor loadings of the Principal Component Analysis are given in the

following Table:- 8.1.10. Only first four Principal Components are explained here, which

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altogether accounts for 82.34 percent of total variation in the existing development in

critical success factors.

Table: 8.1.10 Factor Loadings of Principal Components of the

Development of Critical Success Factors of E-Governance

Variable List F1 F2 F3 F4

1 -.009 .913 .116 -.007

2 .175 .875 .148 .079

3 .409 .626 .092 .344

4 .272 .851 .061 .100

5 .334 .731 .411 .027

6 .572 .538 .185 -.018

7 .049 .160 .285 .264

8 .352 .058 .129 .263

9 .264 .129 .839 .092

10 .889 -.034 .320 .193

11 .720 -.119 .481 .078

12 .646 .258 .366 .122

13 .899 .338 .088 .167

14 .779 .471 .103 .240

15 .933 .103 .232 .099

16 .724 .290 .055 .336

17 .228 -.072 .621 .481

18 .282 .133 -.049 .890

19 .047 .375 .345 .761

20 .359 -.416 .301 .711

21 .473 .482 .385 .248

22 .762 .260 .343 .111

23 .808 .303 .360 .036

24 .594 .420 .523 .224

25 .240 .127 .917 .212

26 .450 .567 .540 .073

27 .385 .609 .639 -.007

28 .466 .472 .513 .029

29 .208 .248 .876 .097

30 .452 .489 .531 -.246

Percentage of variation explained

54.43 12.96 7.99 6.97

Source: Estimated Results

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The first derived Principal Factor represents the overall development in critical

success factors supported by managerial and employee’s factors. Out of total variation in

the development of critical success factors, the first factor accounts nearly 54.43

percentage of total variation. The second factor explains the development of institutional

factors, which contribute nearly 12.96 percent of the development in critical success

factors. The third factor represents the development in cultural factors as a critical for the

successful implementation of E-governance initiatives in Kerala. The cultural factor

nearly accounts 7.99 percent of total variation. The development in people centered

aspects is the next significant factor contributes variation in the critical success factors.

The people factor contributes 6.97 percentage of total change in critical factors.

8.2 Strength, Weakness, Threat and Opportunities of E-governance in

Decentralised Planning

This part deals with various aspects of strength(S), weakness (W), opportunities

(O), and threats (T) of E-governance in the state. To extricate various factors of these

dimensions, a SWOT analysis is done. Similar to Critical Success Factors, opinions from

fifty experts in the field of E-governance administration including academicians,

practioners, employees and political personal were sought to identify various factors in

connection with strength, weakness, opportunities and threat of E-governance. The

selected experts were asked to prioritise factors under various SWOT headings. The

factors, which received a rank correlation coefficient greater than 0.5, are selected for

each category. The existing level of those variables under each category is assessed in a

five point Likert Scale. The five points are very low, low, normal, high and very high and

they receive a value 1, 2, 3, 4 and 5 respectively.

Strength

Panchayats are often accused of lagness or delay in providing services to the

customers (Oommen. M A, 2008, Ministry of Information Technology, 2006). One of the

reasons cited for this is the overburden of employees in the manual system. As the very

objective of E-governance is better and quicker service delivery, this problem could be

ameliorated by its installation at the Panchayat level. Furthermore, increasing demand for

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computerization among citizens and elected representatives especially younger

generations can be considered as a strength factor of E-governance. Information Kerala

Mission (IKM) and Kerala Institute of Local Administration (KILA), the two responsible

agencies in E-governance implementation at LSG level have been giving training to a

large number of employees and elected representatives. This enhanced the responsiveness

of authorities and that automatically reduces corruption and possible low cost services.

There is more pressure from public for increased accountability to get public service for

value of money paid. Also, recent budget provision of a higher devolution of funds to

LSGs augments the speedy process of E-governance in local administration.

Weakness

One of the important weaknesses of E-governance in Panchayat in Kerala is lack

of delegation of power. Still there exist lack of clarity regarding the extent of delegation

of power to the lower authorities and employees. Another weakness noticed is that even

though Kerala stands high in literacy, its digital divide is also high. Nodal agencies of E-

governance are also facing the problem of paucity of funds and leading to the delay in

software installation and operation. An alternative to escape from this problem is to go

for public-private participation (PPP). It is also seen that often the acquisition and

implementation processes are not monitored in an effective fashion and deliverables are

often less than the specifications. Moreover, there is no effective communication between

the users and the system developer(s) to share the domain knowledge. The vested interest

on the part of executives and political leaders is another limiting factor which affects the

smooth functioning of E-governance programmes. In addition, the lack of confidentiality

of data pertaining to certain vital services through E-governance such as e-tendering acts

as a drag on the effective implementation of E-governance projects.

Opportunities

Attainment of major objectives of decentralised planning can be possible through

the better installment of E-governance. One important scope of E-governance is in the

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area of revenue mobilisation. Many studies show that the application of new technology

such as Geographical Information System (GIS) helps the LSGs to improve the

assessment of property taxes and by which more resources can be mobilised for local

level development. Another opportunity of E-governance in local self government is

enhancing responsibility of citizens and employees that may lead to increased social

commitment on the part of employees of the Panchayat. This may pave the way for

complete transparency in financial dealings that results in elimination of bribery. In

addition, E-governance progress leads to development of e-commerce, e-courier at the

Panchayat level, which may create more employment opportunities at the grass root level

and provides chances for flexibility and adaptability in the plan process.

Threats

Even though E-governance programme has many advantages, it is not free from

threats. A major threat is the security of data (Information Kerala Mission, 2001). There

exists the problem of hawking of data due to outsourcing of data backup works to outside

individuals. The inhibition of the part of Panchayat authorities regarding the delegation of

power to lower levels and the increasing rift between Technology Delivery Agency

(TDA) and Panchayat authorities can cause a serious threat to E-governance

implementation. The software prepared by a central agency (like IKM) lacks

heterogeneity that may adversely affect the local specific service delivery. The lack of

sufficient funding from the state exchequer and the indifferent attitude of administrators

in this regard is considered as other major threat of E-governance. In addition, the stiff

rules and regulations of decentralised plan movement in the state adversely affect the

smooth implementation of E-governance initiatives.

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STRENGTH WEAKNESS OPPORTUNITIES THREATS

1. Reaping GIS

advantages

2. Better designing

of Projects

3. Enhancing

Panchayat

Responsibility

4. Social

Commitment of

Employees

5. Enhancing

citizen’s

Responsibility

6. Total

Transparency

7. Single Window

Scheme

8. Development of

e-commerce at

LSGs

9. More

Employment

Opportunities

10. Digital Inclusion

11. Adaptability and

Flexibility in Plan

Process

1. Problem of

hawking

2. Higher

authorities never

delegate power

3. Rift between

Technology

Delivery Agency

(TDA) and

panchayat

authorities

4. Financial

problems of state

govt.

5. Inefficient

technical assistants

6. Hybrid approach

is still a fairy tale.

7. High Political

Biasness

8. Incorrect Back

up Data

9. Insufficient

electricity

arrangements

10. Stiff rules and

regulations of

peoples planning

1. Better and

Quicker service

2. Increasing

Demand for

Computerisation

3. Better Training

4. Elimination of

Bribery

5. More Ideas with

Technology

6. Low Cost

7. Front office

Management

8. Fastly changing

Rules

9. Kerala’s highest

e-literacy

10. Higher

demand for

Transparency and

Accountability

11. Higher

devolution of

funds

Chart:-8.1 SWOT Components

1. Lack of

Delegation of

Power

2. Improper

Training

3. People’s less

awareness about E-

governance

4. Paucity of funds

5. Procedural

Delays

6. Lack of

Monitoring

7. Lack of

Communication

b/w customers and

system developers

8. Vested Interest

9. Confidentiality

Issues

10. Lack of

Integration

11. Not change in

cost for customers

12. No chance for

PPP.

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The Table:-8.2.1 shows the mean value of selected strength factors. The present

degree of better and quicker service delivery, leverage of large amount of funds to local

bodies from higher authorities and public’s pressure for more accountability are top most

strength factors of E-governance initiatives in the decentralised planning process of

Kerala. However, authorities do not try the potential of the new ideas and technology

experimentation in a better way.

Table: -8.2.1 Mean Value of Strength Factors and Its Ranking

Strength Factors N Mean Rank

Better and quicker service delivery 50 4.43 01

Increasing demand for computerisation among citizens 50 3.93 09

Large number of trained personal 50 4.03 05

Elimination of bribery through impersonalisation 50 4.13 04

Open for ideas and experimentation of new technology 50 3.60 11

Low cost service with regional language 50 3.80 10

Existence of front office and information kiosk 50 4.03 07

Fastly changing rules and regulation for IT and Web

enabled services 50 4.03 06

Highest e-literacy 50 4.00 08

More public pressure for increased accountability 50 4.17 03

Leveraging higher resources from higher level govt 50 4.30 02

Source: Field Survey, 2011

The Table:-8.2.2 summarises the status of various weak factors identified in the

context of Kerala. Among the weaknesses of the E-governance in decentralised planning,

the improper training to employees and elected representatives; vested interest on the part

of a section of politicians; and the lack of integration of backend process with front end

and web sites are major weaknesses. The paucity of funds is not considered as a serious

weakness in the promotion of E-governance at local level in Kerala.

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Table: - 8.2.2 Mean Value of Weak Factors and Its Ranking

Weak Factors N Mean Rank

Less delegation of power 50 4.07 08

Improper training among employees 50 4.40 01

Lack of proper awareness among people 50 3.77 09

Paucity of funds 50 3.57 12

Delay in software installation 50 4.20 04

Lack of monitoring of projects 50 3.77 10

No communication between the users with system developers 50 4.19 05

Vested interest among political parties 50 4.27 02

Lack of confidentiality 50 4.17 06

Lack of integration of back end processes with front end and

web site 50 4.23

03

No reduction in cost and improvement of convenience 50 3.70 11

Less amenability for public private partnership 50 4.13 07

Source: Field Survey, 2011

The Table:-8.2.3 summarises the status of opportunity factors of E-governance in

Kerala. Among the various opportunities, the possibility of digital inclusion of all

sections in the society is the paramount. As E-governance is the process of educating the

society, it not only benefits the employees, it also benefits the entire society with

reduction of digital divide. The E-governance initiative such as ‘Sulekha’ software would

enhance the possibility of flexibility and adaptability of plan process in future. In

addition, the enhancement of social commitment on the part of employees and possibility

of mobilisation of more local resources are other opportunities lies with local level E-

governance initiatives.

Table: -8.2.3 Mean Value of Opportunity Factors and Its Ranking

Opportunity Factors N Mean Rank

Mobilisation of local resources 50 4.37 04

Designing of development projects becomes easier 50 4.37 05

Responsible Panchayat authorities 50 4.07 09

Increase the social commitment of employees 50 4.43 03

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Increase the responsibility of citizens 50 3.87 11

Enhances the complete transparency 50 4.23 07

Availing all services under one roof 50 4.30 06

Development of e-commerce, e-courier at Panchayat level 50 4.00 10

Creation of more employment opportunities 50 4.20 08

Better possibility of digital inclusion 50 4.48 01

Flexibility and adaptability in the plan process 50 4.47 02

Source: Field Survey, 2011

The Table:-8.2.4 summarises the major threat factors of E-governance in the

context of Kerala.

Table: - 8.2.4 Mean Value of Threat Factors and Its Ranking

Threat Factors N Mean Rank

Problem of hawking 50 3.70 10

Psychological problems of Panchayat authorities 50 4.20 07

Increasing rift between technology delivery agency and

Panchayat authorities 50 4.17 08

Financial problems of state govt. 50 4.37 04

Inefficiency of technical assistant 50 4.80 01

Centralisation of software preparation 50 4.21 06

Politically biased actions and decisions of Panchayat

politicians 50 4.50

03

Incorrect backup data stored by private contract 50 4.33 05

Insufficient electricity arrangements 50 4.73 02

Stiff rules and regulations of peoples planning 50 3.80 09

Source: Field Survey, 2011

Among the various threat factors, the inefficiency of the technical assistants is

paramount. Information Kerala Mission (IKM) appoints technical assistants and often

their services are not available in emergencies at Panchayats. Unforeseen electricity

shortages and the absence of generators are considered as other threats of E-governance.

The reluctance on the part of politicians for total computerisation of Panchayat which

arise out of fear of losing power from transparent transaction is another important hurdle

in the process of E-governance at local level. The threat of hawking of data has received

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least priority. The possibility of data hawking is very minimum since separate server is

used by the IKM to store information.

Thus the foregoing analysis indicates that the state have nurtured a very

conducive environment for E-governance initiative in decentralised governance. The

critical success factors are very essential for the successful implementation of ICT in

governance and all selected critical success factors such as institutional, technical,

managerial, people, employee and cultural are equally relevant. However, within the

factors, the positive change in cultural attitude and employees’ perception are more

prominent in this context. The existing nature of better and quicker service delivery,

public pressure on more accountability and advantage of large devolution of resources

from state budget etc can strengthen the E-governance movement at the local level.

Among shortcomings of present initiatives, stress should be given for enhanced training

to employees and alleviate the fears of dispossession of authority due to ICT in

governance from the minds of local politicians. Among the various threats, the

infrastructural bottlenecks particularly insufficient electrical arrangement is very critical.

However, these threats and weakness of existing E-governance apparatus can be resolved

by the better use of the opportunities.

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