UNNExT Capacity Building Workshop on Single Window Planning and Implementation Module 4 – SW ...

UNNExT Capacity Building Workshop on Single Window Planning and Implementation

Module 4 – SW architecture-based Implementation

Framework (SWIF)

Authored byDr. Somnuk Keretho

UNNExT Advisory CommitteeDirector, Institute for IT Innovation

Kasetsart [email protected]

14-15 December 2011Palais des Nations, Geneva

Supported by

mailto:[email protected]

After a strategic vision/goals, and the overall roadmap (including more

detailed goals/targets) have been discussed, we need to have

an appropriate methodology to systematically guide the

implementation of these vision & goals/targets into

reality.

SWIF – an architecture-based implementation framework is proposed here for systematically addressing

key components and issues that need to be analyzed, planned and implemented

such that the vision/goals can be realized.

UNNExT Workshop on SW Planning and Implementation, 14-15 December 2011, Geneva

The Objectives of this module

To propose a holistic architecture-based concept, called SW Implementation Framework (SWIF), for guiding the planning and implementation of SW projects, including Architecture principles – Decomposition, Viewpoints,

and Blueprints (diagrams and/or clear descriptions) Decomposition of SW challenges into smaller and

easier manageable components (10 key components are proposed.)

SW Development Cycles

The framework and its development cycles discussed in this module provide the essential concepts and key components to be addressed in the SW project analysis, planning and implementation phases (which will be explained the following modules).


* Referring to World Bank’s Index (www.doingbusiness.org)

Vision

Reality

Complicated Trade Procedures

Because there are so many challenges to be tackledto transform this Vision into Reality.

Laws and Regulations

Many Document Requirements

Inadequacy in Technology Infrastructure

Many StakeholdersConflict of Interest

ComplianceGovernanceMany different ICT systems

People and Business In-Readiness

Difficulty in trade data exchange

Barriers in Interoperability

Regional Connectivity

Connectivity withinthe country

System Development

Change Management

achieving trade transaction

cost and time reduction

goals

e.g. of APEC member

economies

25% better, faster,

cheaper trading

across border* within 5 years

(2011-2015)

Standards

Lack of Understanding

Why a holistic and systematic framework is needed?


What is SWIF? SWIF is a systematic architecture-based framework*

for guiding the Single Window Planning and Implementation into reality.

SWIF adapts the concept of enterprise architecture and development methodology** to describe approaches on how to– systematically derive the SW strategic architecture, – formulate its master plan, and – guide the implementation of SW projects.

** Adapted from An Enterprise Architecture Framework, called TOGAF-9.

* Authored by Eveline van Stijn, Thayanan Phuaphanthong, Somnuk Keretho, Markus Pikart, Wout Hofman, and Yao-Hua Tan, “Single Window Implementation Framework (SWIF),“ Free University Amsterdam, Kasetsart University Bangkok, UNECE

and published as an EU-supported ITAIDE D5.0:4b deliverable.


Key Concepts and Guidelines within SWIF

1. Visions & Goals Alignment – formulating SW visions and goals, where possible with quantitative indicators, but by aligning also with national and/or regional policy directions.

2. Decomposition - systematically decomposing and structuring SW implementation challenges into smaller and easier manageable components (10 components are proposed here).

3. Iterative Development Cycle – “as-is” or current conditions of those 10 components should be analyzed, and then “to-be” or future architectures (again of those 10 components) need to be developed and agreed (normally many iterations needed before we can really agree).

4. Viewpoints – showing the same thing but with a different level of details based on the interest of target audiences (normally with diagrams).

5. Stepwise activities for analysis, planning and overseeing the SW projects (by walking through those 10 components iteratively).

1. SW Visions & Goalsmust be aligned with national and/or

regional economic policy directions, and quantitative indicators should be identified

where possible.

National SW vision, goals and planning should be integrated as a part of related national/regional development agenda,

e.g. aligning with national trade facilitation and logistics initiatives. Vision: Enhancing national trade competitiveness by improving import/export procedures and documentation handlings Quantitative Goals: 25% better, faster, and cheaper in trading across borders* within 5 years**

** An example from APEC Vision & Goals for 2011-2015.



National Logistics Development Master Plan (2007 -2011)

endorsed by the Thai Cabinet on Feb 2007

High-level Master Plan to develop data exchange platform

among different government agencies and business related to

import/export procedures

National Single Window (e-Logistics)To reduce the trade logistics costfrom 19% (2007) to

16% (2011)(comparing to GDP)

Towards A World-class National Logistics Environmentto become a Trade Hub for Indochina Vision

Objectives1.Reducing logistics cost (Cost Efficiency), increase business

Responsiveness, Reliability and Security2.Create Value-Added on logistics industry and related business

StrategicAgenda

Improve Logistics efficiency in industry

Improve efficiency

in transport

and logistics

BuildLogisticsService

Providers Business

EnhanceTrade

Facilitation

BuildHuman

Resources in

Logistics

54321

Thai Case Example


Thailand Vision: from multiple windows to Single Window (Regulatory SW)

(since Paperless Customs has already been developed.)

National Single

Window

Carriers & LSP

ExporterAnd

Importer 36

GovernmentAgencies

~350 data items andno travel needed

Single entry processD

ata

Har

mon

izat

ion

To reduce time used

on document

procedures

~ 24 days *(World Bank 2006)

Less than 10 Days

Impa

ct to

ec

onom

y One day delay costs 1% reduction in export value (World Bank, 2006) Direct and indirect costs incurred in documentary process account for 1-15

% of finished goods (OECD, 2003)

Thai Case Example

2. Decomposition


Systematically decomposing and structuring

SW implementation challenges into smaller and easier manageable

components (10 components are proposed here).


Complexity of Single Window can be handled by decomposing

its challenges into smaller and more manageable sub-components.

* Referring to World Bank’s Index (www.doingbusiness.org)

Vision

Reality

Complicated Trade Procedures

There are a lot of challenges to be tackled.

Laws and Regulations

Many Document Requirements

Inadequacy in Technology Infrastructure

Many Stakeholders Conflict of Interest Compliance

GovernanceMany different ICT systems

People and Business In-Readiness

Difficulty in trade data exchange

Barriers in Interoperability

Regional Connectivity

Connectivity withinthe country

System Development

Change Management

achieving trade transaction

cost and time reduction

goals

e.g. APEC-Thailand,Chinese Taipei:

25% better, faster,

cheaper trading

across border* within 5 years

1. Stakeholders’ needs and requirements

3. Stakeholders Collaboration2. Single Window Visionand Political Will

4. BusinessProcessAnalysis

5. DataHarmonization

andDocuments

6. ServiceFunctions

(ApplicationsArchitecture)

7. Technical Standards

and Interoperability

9. Business Models,Financial Issuesand Governance

8. Legal Infrastructure

10. IT Infrastructure

and IT Solutions

From the “As-Is”conditions (architectures) of all these components

Migrating to the target “To-Be” architectures

of all these 10 components

timeline

Decomposing the SW challenges into ten key components

3. Iterative Development Cycles

The “as-is” or current conditions of these 10 components must be analyzed, and then

the target or “to-be” architectures (again of these 10 components)

need to be developed and agreed.

Normally many iterations of the above activities are needed before we can politically, organizationally and financially agree on the “to-be” architectures

before we make any commitments to implement.


SW Development CycleKey Compenents that need to be analyzed, planned, coordinated

and/or implemented.

Note that the above development cycles are normally conducted in several iterations.For example, the whole cycle can be revisited during the feasibility analysis phase,

and again the whole cycle during the planning phase, and during the implementation phase, etc.

0. Preliminary

3.Stakeholder

Collaboration

4.BusinessProcess

5.Data

Harmonization

7.Interoperability and Standards

9. Finance and Governance

10. IT Infrastructureand Solutions

2. SWVision

6.ApplicationArchitecture

8. Legal

Infrastructure

1.Stakeholders’RequirementsManagement


Understand the “As-Is” and propose the “To-Be”

of these 10 Key Components 1. Stakeholders’ Needs and Requirements2. SW Vision and Political Will

3. Stakeholders Collaboration Platform4. Business Process Analysis and Improvement5. Data Harmonization and Document Architecture6. Service Functions/Applications Architecture7. Technical Standards and Interoperability8. Legal Infrastructure9. Business Models, Financial Issues & Governance10. IT Infrastructure & Technical Architecture


“As-Is” Documents related to Exportation of Rice

(from purchase order until the cargo container leaving the sea port)

21. Master Sea Cargo Manifest(17)22. House Sea Cargo Manifest (37)

23. Export Declaration (75,39)24. Good Transition Control List (22,3)25. Application for Permission to Export Rice (KP. 2)26. Sales Report (KP 3) (21)27. Application for the Collection of the Permit for the Export of

Rice (A. 3)28. Permit for the Export of Rice (A. 4) (32)29. Application for Certificate of Standards of Product (MS. 13/1)

(44)30. Certificate of Analysis (17)

31. Certificate of Product Standards (MS. 24/1) (45)32. Certificate of Fumigation (21)

33. Application for Phytosanitary Certificate (PQ. 7) (29)34. Phytosanitary Certificate (34)

35. Application for Certificate of Origin36. Certificate of Origin (38)

1. Proforma Invoice (35)2. Purchase Order (39)3. Commercial Invoice (50)

4. Application for Letter of Credit (24)5. Letter of Credit (32)

6. Packing List (25)7. Cargo Insurance Application Form (20)8. Cover Note (23)9. Insurance Policy (24)10. Booking Request Form – Border Crossing (24)11. Booking Confirmation – Border Crossing (31)

12. Booking Request Form – Inland Transport (16)13. Booking Confirmation – Inland Transport (18)14. Bill of Lading (40)15. Empty Container Movement Request (TKT 305) (19)16. Request for Port Entry (TKT 308.2) (27)17. Equipment Interchange Report (EIR) (24)

18. Container Loading List (18)19. Container List Message (32)

20. Outward Container List (34)* Number in parenthesis is the no. of data elements

36 Documents involving 15 parties, and more than 700 data elements to be filled in

Thai Case Example

Only few of these documents are in electronic format


”As-Is” Business Process - Exporting Jasmine Rice from Thailand -

1. Buy - Conclude sales contract and trade terms2. Obtain export permit3. Arrange transport4. Arrange the inspection and fumigation 5. Obtain cargo insurance6. Provide customs declaration 7. Collect empty container(s) from yard

8. Stuff container(s)9. Transfer to port of departure10. Clear goods through customs 11. Handle container at terminal and stow on vessel12. Prepare documents required by importer13. Verify the accuracy/authenticity of exported cargo14. Pay - Claim payment of goods

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Day

Process

20

10

0

5

15

3 days

2 days

3 days

4 days

1 day

1

3

56 7 8 9

12

14

22 days

42 days

101 day

131 day

16

11

Time-Procedure Chart

16 days required for procedures & documents handling

4. Viewpoints Viewpoints are diagrams (sometimes

called blueprints) along with verbal/written descriptions for explaining the same topic but with different levels of

details based on the interest of the target

audience

An architect uses different diagrams to explain about the same building, e.g.

one diagram showing the interior design to communicate with normal users,

one diagram showing concrete structures to be used by civil engineers, one diagram showing wiring for electrical technicians, etc.

Likewise, several detailed levels of diagrams and descriptions should be used to communicate about SW components but each suitable for different

target audiences (e.g. viewpoints/diagrams suitable for high-level policy makers,

policy managers, business operators, and technical IT staffs)


Exporter

Paperless Customs Declaration and Clearance

Customs DeptServer

New Generation of EDI(ebXML MS/XML Messages/Digital Singnatures)

- Declaration- Invoice- Packing List

Web-Based Application(Certificate of Origin)

Dept of Foreign Trade

Browser (Request for C/O)

Web-Based Application(Health Certificate)

Dept of Livestock Development

Browser (Request for Health Cert.)except Shrimp (Request from Dept of Fisheries)

Web-Based Application(Health Certificate)

Dept of FisheriesPaper Handling and/or Web-Based Application

(Bill of Lading)Carriers or other logistics service providers

Many Paper Documents

“As-Is“Application Architecture in 2007

About 80% of required documents

arephysical

papers not electronic

papers yet.

SeparateICT islands

Thai Case Example


A Conceptual Architecture ofthe “To-Be” National Single Window

Goal - Single Window/e-DocumentsOne time submission for each data element but multiple usage for different purposes on different ICT platforms

Exporter

Paperless Customs Declaration and Clearance

Customs Dept

Web-Services (ebXML) Application(Certificate of Origin)

Dept of Foreign Trade

Web-Services (ebXML) Application(Health Certificate)

Dept of Livestock Development

Web-Services (ebXML) Application(Health Certificate)

Dept of FisheriesWeb-Services Applications

(e.g. Bill of Lading, and other documents)Carriers or other logistics service providers

NationalSingle Window

Now, technical interoperability standard (e.g. based on ebXML MS) is needed, andcommon definitions of data elements, and

semantic data structures (common data models) among different documents required by

different organizations are required also.

Thai Case Example

36 RegulatoryAgencies


“To-Be” Thailand SW Architecture

Importer/Exporter

Carrier

Ship Agent, Airlines Agent

Custom Broker/Freight Forwarder

Bank and Insurance

Other LogisticsService Providers

Private Sector&Transport Agencies

Other Business Parties

VAS

VAS

VAS

VAS

Value-AddedService

Providers

Value-AddedServices for Single Window Entry andBusiness ProcessManagement

56

National Single Window(NSW)By CustomsDepartment

e-Document Exchange Hub

for Cross-boarder Trade and Transport

1

ICT National Infrastructure and related IT Laws responsible by Ministry of ICT4

Governance Mechanism – policy decision, service charge regulation, service level agreement etc.2

Pro

cess

Re-

desi

gn &

Dat

a H

arm

oniz

atio

n

3

Customs Dept

Dept. of Foreign Trade

Dept. ofDisease Control

Dept. of Fisheries

Port AuthorityOf Thailand

Port/Airport

36 Governmentand facilitating

Agencies

Other agencies

ebMS

ebMS

ebMS

ebMS

ebMS

ebMS

Pro

cess

Re-

desi

gn &

Dat

a H

arm

oniz

atio

n

A Case Example

VAS

Gat

eway

VAS

Gat

eway

VAS

Gat

eway

7 7


”As-Is” Regulatory Business Processand Documentations for Exporting Jasmine Rice

Thai Case Example

Problems :- Duplicated Information & multiple physical visits to different locations- High Cost and Time for sending and receiving documents - Possible Data Inconsistency

5 regulatory agencies

and17 differentdocumentsare required

(not counting those required

by other businessentities, e.g.

banks,transporters,

logisticsproviders)


”To-Be” Data Harmonizationto harmonize for the common-meaning data elements among

different documents

Thai Case Exampleexporting rice

Regulatory-required Documents to be prepared by the rice exporter

As-is (no. of data elements)

To obtain a permit for the export of rice (A. 4)•Application for permission to export rice (KP. 2)•Sales report (KP. 3)

• Application for the collection of the permit for the export of rice (A. 3)• Draft A. 4• Commercial invoice

150

To obtain a certificate of standards of product (MS. 24/1)• Application for certificate of standards of product (MS. 13/1)• Commercial invoice• Permit for the export of rice (A. 4)• Certificate of analysis

32

To declare to-be exported goods• Export declaration 114

To inform Customs the movement of goods to port• Goods transition list 27

To obtain phytosanitary certificate (PQ. 9)• Application for phytosanitary certificate (PQ. 7)• Bill of lading• Certificate of fumigation

29

To obtain certificate of origin• Application for certificate of origin• Draft certificate of origin• Commercial invoice• Certificate of standards of product (MS. 24/1)• Bill of lading• Letter of credit

67

To report actual quantity exported 10

429

Dat

a H

arm

oniz

atio

n

180180

commondata

elementsamong

these 17 documents


Example – Exchanged Documents

Permit for the export of rice by Department of Foreign

Trade

Rice Quality CertificateBy The Thai Chamber of

Commerce

Thai Case Example


Example – Defining data element names and definitions for

2 documents by comparing with International Standards

Permit for the export of rice

Rice Quality Certificate

Data Element Name

Definition

weight (kg.) Net Weight (kg.) Net Weight (item) [TDED 6020] The measure of the net weight (mass) of this cross-border trade line item, excluding all packaging.

Unit Price Price Unit Price (item) [TDED 5110] Price per unit of quantity on which an article item amount is calculated.

Name of transport Ship’s name Name of Transport [TDED 8212] Name of a specific means of transport such as the vessel name

2 documents about exportation of rice


”To-Be” Data Harmonization and”To-Be” Business Process (Improvement)

Thai Case Example

As-Is• 429 data elements to be filled

in different physical documents • Multiple submissions of identical

data• Multiple visits to government

agencies (to submit and collect documents as well as to report actual quantity of goods exported)

To-Be•180 data elements to be

filled in electronically

• No repetitive submission of identical data

• No physical visit• Electronic data cross-checking

between controlling agencies• Electronic data sharing between

controlling agencies


Laws and Regulation Electronic Transaction Act* (2001, 2008)

(legalizing electronic documents and transactions) Royal Decrees on e-Government Implementation (2006) Decrees and Guides on Secured e-Transaction (2010)

(based on ISO 27001) Regulations on Paper Digitization (2010), etc

Each government department still needs some regulations for officials and business users to use e-document submissions and paperless systems, e.g. as officially mandated by the Director General.

Thai Case Example

* Reference: UNCITRAL Model Law on Electronic Commerce,1996 UNCITRAL Model Law on Electronic Signatures, 2001

5. Stepwise Activities/Phases

for planning and overseeing the SW projects by walking through those 10 components iteratively

in each phase(to be discussed further in the following

modules).

1. Preliminary/Inception Phase – Developing a concept paper for preliminary and initial discussion

2. Elaboration Phase – Conducting detailed feasibility study3. Planning Phase – Formulating a High-level SW master plan4. Execution Phase – Executing and overseeing the project plan5. Lessons-learned/Feedback Phase – Collecting lessons learned


Summary SW Implementation Framework (SWIF) is recommended

as a holistic and systematic framework for guiding the planning and implementation of SW projects, including Decomposition of SW challenges into 10 key components SW Development Cycles

Step-wise SW project management phases include inception phase, detailed feasibility phase, planning phase, implementation oversight phase, and feedback phase. In each phase, the 10 key components and associated

activities/deliverables in the recommended SW development cycles should be revisited and refined iteratively until the “to-be” architectures of those key components are commonly agreed and committed.

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