ICEGOV2009 - Tutorial 5 - part 2 - Strategic Impact of e-Governmenton Economy and Society

(c) W. Cellary 2009, slide 1

Wojciech Cellary

Department of Information Technology

The Poznan University of Economics

Mansfelda 4

60-854 Poznań, POLAND

e-mail: [email protected]

www: http://www.kti.ae.poznan.pl/

Strategic Impact of e-Governmenton Economy and Society

Part two


Transformationof Administrationinto e-Government


Bothering question

Why e-business develops much fasterthan e-government?


Just an exampleof e-business in Poland


Allegro marketplace

Every 20 seconds a book is sold

Every 40 seconds a mobile phone is sold

Every 60 seconds a DVD movie is sold

Every 75 seconds a pair of shoes is sold

Every 2 minutes an MP3 player is sold

Every 4 minutes a T-shirt is sold

Every 5 minutes a digital camera is sold

Every 6 minutes silver earrings are sold

Every 23 minutes a TV set is sold

Every 30 minutes a car is sold

Number of Polish citizens: 38.5 million

Number of Polish Internet users: 13.5 million

Number of Allegro users: 6 million

Dynamics in 2008: over 3 new accounts per minute !


How many citizens are transacting electronically

with administration?

Unfortunately, much less


organization is different

Similarities and differences

business administration

technology is the same

audience is the same(customers and citizens are the same people)

business

organization

administration

organization

space for

development


Today administration

19th century

organization

21st century

technology

Administration of 19th century organizationcannot benefit from 21st century technology


Organizationof today administration

Organization of today administration is a consequence of features of the paper as an information medium:

storing – binders, file cabinets

sending – surface mail

processing – clerks

Astronomical number of paper documents stored by administration


Consequences

A human clerk combines two functions: document archiving and decision making

Detailed specialization and division on smallorganizational units

Every organizational unit has its precisely determined range of responsibility, its rules of proceeding, and its document forms

As a consequence, around such an organizational unit walls rise up that block access to information materialized on paper


Information rule

„A stranger” will know as much, as the owner of information is willing to communicate

A person who is not the owner of some information, often cannot even ask for it, because he/she ignores existence of this information

Information owner, even if he/she is ready to communicate some information, is often unable to do so, because he/she does not know, who may need this information

Information blockade

A brake of transformation:

organizational, economic, and democratic


Advantagesof electronic information(electronic documents)

Low cost

Independence of geography

Immediate accessibility

A possibility of automatic processing


Low cost

A 200 GB disk costs 50 €

Such a disk is able to store 100 millionof single sheet documents half filled with text

100 hundred million sheets put one on anotherwould be 10 kilometer high

and would cost about 1 million € !


Liberation from possessing

There is no need to „posses” electronic documents to have access to information contained in them

There is no need to „posses” servers, databases, and application software to make

decisions basing on electronic documents

Transfer of access rights to documents,instead of documents themselves

Under condition that the Internetis available and reliable:


Low costof document maintenance

From the fact that in Poland there is 2500 local government districts,

does not follow that Poland needs 2500 servers accompanied by personal service,

and 2500 „unique” forms to collect the property tax

Concentration of data processing

For an office, data are important,

not the medium, or server


Cloud ComputingSoftware as a Service – SaaS

Liberation of administrative units from problems related with hardware, operating systems, databases and the application software

Applications defined as metadata instead of software

SaaS is a model of software development,

where an application is hosted

as a service provided to customers

across the InternetAdministrative

units


Advantagesof information concentration

in the „service centers” –– in the clouds

Elimination of data redundancy

Data standardization

Better data protection

Improved data accessibility for authorized persons

Dissemination of advance software for data processing

Application of data mining and knowledge exploration

Intensification of inter-office cooperation

Unification of law application in the whole country

Improved transparency and more effective democratic supervision of citizens over administration


Social costof lack of e-government

Rough estimation

of border social losses

following from collection

of income tax declarationon paper forms


Income tax declaration

A journey to the Tax Office toget paper tax forms – 30 minutes

Waiting for a clerk to get paper tax forms – 10 minutes

Come back home – 30 minutes

Fulfilling paper tax forms –60 minutes

A journey to the Tax Office to submit filled paper tax forms –30 minutes

Waiting for a clerk for confirmation – 20 minutes

Come back home – 30 minutes

TOTAL TIME: 3:50 HOURS

Switching on a computer –2 minutes

Login to the website of the Tax Office – 1 minute

Fulfilling electronic tax forms –20 minutes

Data submission – 0 minutes

TOTAL TIME: 23 MINUTES

PS

Without a computer Via a computer


Cost comparisonof paper and electronic tax declaration

Difference in minutes – 187

Difference in hours – 3,12

Number of taxpayers – 22 million

Total number of working hours – 68,5 million

Total number of working months – 430 thousands

Mean salary in Poland – 716 €

Border losses

1. All the taxpayers personally submit paper tax declarations

2. All the taxpayers submit tax declarations via Internet

Border losses – 308 million € per year


Total social losses

by all the citizens, and

all the enterprises

to all the offices

in all the cases

If we calculate in the same manner costs of submission of all the paper documents

then the losses would appear ASTRONOMICAL !!!


Process organizationof administrationas a consequence

of document de-materialization


Currentadministration organization

Currently, every office acts within a strictly limited scope.

Getting an application, first, a clerk checks, whether the case falls in the scope of duties of the office:

if so, the clerk makes a decision,

if no, the clerk refuses considering the case.

A clerk does not ask: why the applicant comes to the office with his/her application?

what will the applicant do with the received decision?

what will the applicant do, if the office refused to consider his/her case?

In other words, the office and the clerk are just to executepartial tasks, while the applicant has to manage the wholecomplex organizational process.

It is the applicant who has to know which administrative permissions are required, to which offices and in which order he/she has to apply, which documents attach, and more broadly –with which enterprises to cooperate to achieve his/her goal.


Process organizationof administration

One place, where a client could receive all the services necessary to realization of the whole his/her business process, independently of who is a provider of partial services.

From the client point of view, the following service providers should be gathered in this one place:

providers of administrative services

- local administration,

- governmental administration,

providers of notarial services,

providers of judicial services,

providers of financial services, and

providers of all necessary business services.

Client dream


Integrative websites (1)

Integrative websites provide all services required to realize holistic business (organizational) processes.

An integrative website should provide:

information,

communication, and

transactions.

An integrative website should provide:

public information – commonly accessible to large public, and

individual information – about realization state of an individual case; accessible only to authorized persons.

Via an integrative website, clients should communicate with service providers, including clerks, using different communication channels: text, voice and video.


Integrative websites (2)

Via an integrative website transactions should be made:

submitting applications,

receiving confirmations,

receiving decisions.

Via an integrative website all payments should be done


Administrationas an e-services provider

Administration offices should be seen as providers ofparticular e-services.

Administration e-services should be seen as a necessary partof holistic business processes of citizens and enterprises.

Administration e-services should be implemented in a way permitting their integration.

Office computer systems have to be open for cooperation:

office computerization for internal purposes is not sufficient

office computer systems have to contribute to servicing holisticintegrated business processes of citizens and enterprises

however, management of integrated business processes should be provided by business, not by administration


Administrative office as a contributor to integrated e-services

Necessary condition – internal integration

Purpose – external integration:

business processes related with the whole respective region: city, district, county, state, etc.

business processes comprising non-administrative units, like law courts, notary offices, banks and enterprises.


Administrationas an e-services provider

integrated services

mixed services

augmented services

e-Government serviceshas to be designed in a way

permitting businesses to provide:

Administration as a provider of:

simple final services

„resources” for advanced services

Electronic knowledge based

economy

this is the most important


A clerkin e-administration


An ideal clerk

works all the day without any interruption

works for free, or almost for free

is newer sick

does not have any holidays

is very efficient

makes no mistakes

is incorruptible

(for his/her boss)

such a clerk is an ideal one also for the society


ComputerComputer

A riddle

Who is an ideal clerk?

To facilitate let saythat two answers are possible:

Person

Good answer !!!


A modernadministration

A modern administration is defined as such,where a person does not try to

ineffectively replace a computerin routine works


Computer

Computer is just an executor

Truly, it is about:

algorithmization of procedures


Requirementsof procedure

algorithmization

Precise regulations on all the levels, from lawsenacted by the parliament up to office rules

Competent people (enterprises) able to:

first – transform procedures into algorithms

next – program those algorithms

next again – integrate those programs

Verification methods whether computer programsservicing citizens and enterprises conform law


Informal alliance against procedure

algorithmization People working in “gray” zone

they are afraid of no exceptions that may be arrange witha computer

Some clerks

they are afraid that a computer will deprive them from superiority over applicants

Alliance of gray zone with some clerks

consists in „doing nothing”. It is enough to do nothing to effectively prevent real modernization of administration

To modernize administrationthis informal alliance has to be broken


New role of a clerk

A clerk

liberated to a large extent from document archiving, and

liberated to a large extent from routine activities due to procedure algorithmization,

may focus on communication:

recognition of problems of citizens and enterprises,

advices to citizens and enterprises,

and decision making:

including profiling politics


Then:

administrationin form of

e-governmentwill be perceived by the society as:

friendly and helpful


Conclusions


Fundamental questiononce again

Whate-government revolution is?


Revolution

Replacement of paper document flowby electronic document flow is not a revolution

Revolutionary is:

elimination of any document flow

Instead of document flow we need:

management systemof access rights to electronic documents


A vision

Imagine that all the documents collected by all the administrative units are stored in just one database, though distributed on hundreds computers interconnected by the Internet

All those documents are available via Internetalways and from everywhere, but not for everybody

In each case considered by administration, an access to selected documents, as well as right to create and to modify documents have precisely determined citizens and clerks only, who play precisely determined roles


The role of the state

Principle role of the state isto build a system of access authorization

to electronic documentscollected by the whole administration


Why?

Because only having such anauthorization system it is possible to build branch systems that are – from the beginning – able to cooperate

Because only then process organizationof administration is possible

Because only then it is possible to opena market of thousands of applications facilitating life of administration clients, and

to create knowledge-base job positions for young generations


Client dream

Only then client dream may come true:

Solve the whole problem

of arbitrarily complex character

in one window via the Internet


Noveltyin e-government

Central access point to services

Central (more central) data

processing

Local decision making

New division between:“central” and “local”

single multiple

client satisfaction

cost reduction

democracy reinforcement


Keys to success

Leadership, as political will is the main driver of administration transformation to e-administration

Priority of e-administration among other social and economical goals

Agreement of more or less independent units for common solutions

Cooperation between administration, business,and academia („triple helix”)

Computer literacy that has to be upgraded and spread

Infrastructure of telecommunication that has to be developed


Thank you

Wojciech Cellary

ICEGOV2009 - Tutorial 5 - part 2 - Strategic Impact of e-Governmenton Economy and Society

Education

Transcript of ICEGOV2009 - Tutorial 5 - part 2 - Strategic Impact of e-Governmenton Economy and Society