E-Government: Transformation of Government
1.
Introduction
With the advent of the information age, the ways in which we work, study, and live have been
experiencing dramatic changes. Due to the influence of economic and information globalization and the
rise of the digital economy, governments are ‘reinventing’ themselves to meet new expectations and the
priorities of citizens and businesses. These dynamics are compelling many governments to create a
new vision for their relationship with businesses and citizens, and to create a new organizational
structure to fulfill their mandate.
Many governments are seizing the opportunity to establish a government of the information age.
This transformation stems from many powerful influences of the information revolution and is still in its
nascent stages. Obviously, the ultimate objective of developing a new organizational structure of
government is not only for effectiveness and efficiency, but also for building a new modality of
government. This long journey includes formulating a new vision of how governments view citizens and
businesses, and building a citizen-centered, service-oriented, public-participated government.
2.
Traditional Structure of Government
The traditional, industrialized management system arose in the middle of the nineteenth century
and has had more than 150 years of history. This kind of managerial system was initially targeted at the
management of railroad and postage transportation services. The system to manage these services,
which appeared in the 1850s in the United States, is deemed as the earliest example of modern
management. The main purpose of these management systems was to secure the safety of railroad
transportation. The system essentially designed for data collection and to expedite information delivery,
is recognized by historians as ‘the first modern, carefully designed, internal organizational structure
used by American business enterprise’. The multidivisional organizational model introduced by General
Motors in the 1920s marked the maturity of the modern management corporation operating within this
framework.
The traditional structure of government is very much like the multidivisional organizational model
that exists in many industrial organizations. The basic characteristic of such a management system is its
hierarchical management structure, i.e., the typical organizational chart of a government appears as a
pyramid. Clerks and staff are at the bottom of the hierarchy, ascending levels of office staff rise up the
hierarchy, and a head of the government, such as a chief executive officer, perches on the top of the
pyramid. Within this hierarchy, officials at every tier are assigned functions and duties and report
directly to his/her supervisor. Vital information concerning government business flows up the chain of
command where it is processed at each level and then carried to the next, until it eventually reaches top
management, which in turn uses the information to make decisions and commands that are then
transmitted down the hierarchy and implemented at each descending level of the government structure.
In some large governments, the organizational chart contains hierarchies within hierarchies. Each
department or agency has its own chain of command embedded inside the larger structure and
Transformation of Government
formulates a quite complicated, multi-hierarchy management system.
The traditional structure of government can be viewed as a three tired pyramid (Figure 1.1):
decision-making (strategic) at the top, managerial or administrative (tactical) in the middle, and
operational at the bottom. Each tier represents a different level of control and has a different level of
information requirement and view of the government agency.
Figure 1.1 The Traditional Structure of Government
This kind of government structure, which came into being with the industrial revolution, has existed
for more than one hundred fifty years. It meets the demands of an industrialized administrative and
managerial society and corresponds to the economic and technical environment of the industrial age.
This kind of management system has dominated the organizational modality of government for almost
the entire twentieth century. An evident characteristic of it is its dependence on the tiers of the middle
management, both for processing the internal vertical flow of information (there is almost no horizontal
flow of information between divisions) and for the control and coordination of the business activities of
the government. As a result, the tiers of middle management are increasingly large and overstaffed and
have become the largest portion of the organization. Due to the over-centralized decision-making
structure, the system seems rigid, lacking in flexibility, and slow to respond to the changes of the
changing world. With the development of globalization, the drawbacks of such a management system
have been progressively more exposed; it can make governments lose their competitiveness. Many
advantages of the system in the industrial age have become disadvantages in the information age. With
the progress of the information revolution and the advent of the information age, such an organizational
structure can no longer meet the challenges that governments are facing today.
2.1 Impact of ICT on Management
Modern information and communication technologies (ICT) have had a significant impact on
existing management systems. The first impact is that it is easier to acquire information. Actually,
information can be accessed anywhere, anytime and by anyone authorized to do so. By means of
databases and computer networks, especially the Internet, different people within the same business or
the same business process are able to share and process information and perform their duties even
though they may be in different geographical locations.
The second impact is that control and coordination of various business activities can be done at
the lower tiers of the managerial hierarchy, i.e., the level closer to the operational aspects of the
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Transformation of Government
business, because the information needed can be obtained wherever there is a demand. Information
can be processed horizontally as well, and it is not at all necessary to hand information up and down, tier
by tier, for the sake of transferring it to other divisions. Hence, the traditional pyramid modality and
structure is no longer justifiable or even necessary.
The third impact is that decisions can be decentralized and made by any authorized person who has
adequate information and knows the criteria of the decision-making process. In practice, this can be
done by means of a networked personal computer and a decision-making system which does not
require requesting approvals from each level of the hierarchy of the traditional pyramid.
The fourth impact is that the development of a sophisticated ‘knowledge-base’, using modern
information technology, further increases the possibility of decentralizing decision-making. With the
assistance of a knowledge-base, the capacity for decision-making by government staff at the lower tiers
will be strengthened. They will become increasingly knowledgeable, and, accordingly, increasingly
competent decision-makers.
Within this context, the larger middle-tier of management and administration in traditional
government gradually loses its role and becomes overstaffed, and the pyramid modality of traditional
government seems less effective and efficient, and consequently becomes out-of-date. Therefore, the
collapse of the pyramid modality of the traditional industrial organizational structure is unavoidable.
The choice between centralization and decentralization is a difficult one and it is a question that is
always posed in the theories and practices of management science. However, informatization may
make this difficult question redundant. By means of modern information technology, decisions can be
taken close to where the business activity takes place; but at the same time, management is still able to
keep centralized control of relevant information. With the advent of the Internet age and a networked
economy, the modality of management is shifting from a pyramid to a networked structure.
Correspondingly, the new organizational modality of government, relevant to the information age, is very
much like a flat, horizontal and networked structure, within which all the elements of society are
connected, and able to share information and knowledge and to communicate easily with each other.
3.
New Role of ICT in Government
The new role of information and communication technologies, therefore, is not only to computerize
or re-engineer existing government businesses, but more significantly, to assist government in
materializing the kind of transformation mentioned above. The ultimate destination of this transformation
is an e-government, which has been recognized, in addition to e-commerce, as one of the most
important arenas of ICT applications in today’s world. It provides a focus for the reform of public
administration.
It can be said that government transformation is a characteristic as well as a benchmark of a
mature e-government. All the programmes and projects to be implemented in the creation of an egovernment, such as e-documentation, e-record, and e-workflow, etc., will inevitably lead to a redesign
of business flow as well as a restructuring of governments. The interface with clients is moving from
offices, counters and windows to computer screens. Links with customers are shifting from telephones,
telegraphs, and facsimiles to networks supported by the Internet. Together, these changes will lead to
changes in the operational mode and to the restructuring of a government. Therefore, should a
government agency claim that it has become an e-government agency even though its structure and
operational mode remain the same as before, then, it can be concluded that the transition to egovernment by this agency was not successful. It will not have made use of all the opportunities
available to it.
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Transformation of Government
The formulation of a distributed information processing environment has led to a new way of
thinking that takes full advantage of information technology. However, transformation of government is
neither primarily a technical issue nor the sole responsibility of technical professionals. It must be
recognized that the transformation of an organizational structure represents a revolution of the
management system made possible by modern information technology. Hence, the drive and
determination of the top management tier of an organization is essential if the transformation is to
succeed. During the transformation process, a variety of social resistances will emerge and try to find
ways to block the transformation.
4.
Business Process Re-engineering
A government agency is organized to perform its functions. A function is carried out by a
managerial control unit with responsibility for and authority over a series of related activities involving one
or more entities and performed for the direct or indirect purpose of fulfilling one or more missions or
objectives of the agency. Specific functional responsibility and authority may rest with an individual, a
group of individuals, groups of individuals, one or more areas of the agency, or the whole agency itself.
The functional performance of a government agency must be identifiable, definable, and measurable.
Generally, a function can be equated to a management control point, with one manager
representing one function. Thus the functional composition of a government agency follows the
management reporting structure, which may or may not follow the organizational lines, and a function is
whatever a manager is responsible for. Functions correspond to managerial authority and responsibility,
which can only be delegated from above. Hence, the functional model of an agency can be represented by
a simple hierarchy.
A business process is a sequence of related activities, or a sequence of related tasks, which make up
an activity. These activities or tasks are usually independent, but there is a well-defined flow from one activity
to another or from one task to another. The definition and description of business processes identify these
activity and task dependencies. Business processes usually consist of major units of bounded, repetitive
work, and they are often more easily modelled in horizontal form than in vertical form. Business
processes are groups of business activities organized around data or process dependencies. For a wellorganized government agency, there must be a well-defined flow from one activity to another or from one
task to another.
The chain from business functions to process and then to activities are the chains used in business
systems analysis to analyse and create a model of a government agency. A well-organized government
agency should have a set of well-defined function-process-activities chains, or systems.
The real power of e-government is not that it can make the original, or the old, business processes
work better but that it enables government agencies to break old rules and outdated assumptions and
create new ways of doing the work. That process is usually called business re-engineering although other
terms and names include business process redesign, business redesign and process redesign.
4.1 E-Procurement: an Example of Government Re-engineering
An example of an e-procurement system can illustrate how re-engineering works in practice. An eprocurement system consists of three elements: government, supplier, and e-procurement institution or
department which is a new phenomenon of the information age and plays a key role in e-procurement
(Figure 1.2).
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Transformation of Government
Figure 1.2 An e-Procurement System
Within this system, the e-procurement institution provides consultancy and offers the infrastructure
necessary for the implementation of the new procurement model; implementation which includes
defining purchasing strategies, promoting services, and designing and developing e-procurement
models. The government agency handles demand, makes purchases online, and plans budgets. The
supplier signs the frame contracts with the e-procurement institution and provides goods and services
to the government agencies.
The e-procurement institution interacts with suppliers activating and receiving reports about
contracts. It interacts with government agencies on their needs and requirements and receives
feedback regarding the degree of satisfaction. It also provides comparative analyses of goods and
services from different suppliers and other support agencies and mechanisms. Government agencies
send orders either online or by fax; and receive goods and services and expense reports from
suppliers. Within the system, online catalogues are available on a dedicated website for each active
frame contract and online purchasing is available for most active contracts. In addition, only authorized
users can access the e-shopping area (online purchasing), but all web users may have access to the
rest of the information (user profiling not required).
The benefits of e-procurement are obvious. First of all, it simplifies the process of government
procurement and saves tremendous human and financial resources. Secondly, a fair market
competition can be organized and reduced prices for goods and services can be obtained through
batch procurement. Thirdly, the entire procurement process of a government agency can be monitored
and reported in a timely way so as to better control the budget and expenditure of the agency. The last
but not the least important consideration is that a transparent procurement process can be achieved and
monitored by the public.
There are also non-quantifiable savings to the government in such re-organizations (Figure 1.3).
Within a traditional procurement process, seven steps may have to be taken by the government: needs
analysis, drafting of contract and documents for tender, supplier selection, drawing up of final contract,
possible involvement in litigation with suppliers, goods/services supply, and payment. With the new e-
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Transformation of Government
procurement system, however, the steps are reduced to four: needs analysis, online order,
goods/services supply, and payment notification. With implementation of e-procurement, obviously, the
procurement branches of government agencies can be removed or simplified and government must be
re-engineered to adapt to the new model of procurement business.
This example also shows that one of the keys for successfully re-engineering business processes
is to understand the fundamental changes that modern information technologies have brought to the
world and how these changes will transform the ways in which people conduct their business.
Figure 1.3 The e-Procurement: Re-engineering the Government
5.
Methodology of Government Re-engineering
There is a methodology of government re-engineering used for streamlining activities affecting the
business and information flow of an organization. This methodology aims to transform and streamline the
business processes of an organization by using a combination of the techniques and tools of modern
industrial engineering, operational research, management theory, and system analysis. It results in
breakthroughs in the organization’s quality, responsiveness, flexibility and efficiency. For example,
process flow analysis is a problem identification technique that has its roots in industrial engineering. It
has been successfully used for several decades in various engineering disciplines to study the general
flow of processes that can cross several businesses, shop floors or engineering departments within an
organization.
Implementing a re-engineering project requires significant effort. The main steps included in the
process are as follows:
1. Organizing a steering committee and a project team that will be responsible for the entire reengineering process.
2. Defining and measuring current business processes, including documentation of current
business process flows and steps, as well as information flows.
3. Identifying change opportunities, through a series of brainstorming workshops and
presentations to the steering committee and key stakeholders.
4. Defining the new business process and information flow for the organization, as well as
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Transformation of Government
documenting the organizational changes necessary for implementation.
5. Obtaining government approval for the recommendations on the new business process of
the organization.
6. Implementing the changes identified in re-engineering process.
Within these steps, three major activities essential for a successful re-engineering programme can be
observed. They are reviewing the existing business processes, identifying the opportunities for change,
and redesigning the business processes.
Re-engineering can help organizations achieve radical improvement over a short period of time.
However, such re-engineering is neither a straightforward nor easy undertaking. It requires vision,
willpower, and a comprehensive approach to change that includes following elements:
•
Leadership and commitment from the top management tier of the organization throughout
the entire re-engineering process; leadership and commitment that can guide change and
lead the implementation.
•
An external perspective seeking why and how to improve existing business processes.
•
Sound methods for re-engineering work processes to meet the strategic objectives and
performance goals of the organization.
•
The appropriate use of modern information technology to enable breakthrough performance.
•
Effective change management to adjust the organization’s people and culture to new ways of
working.
•
Continuous improvement methods to sustain and increase the dramatic gains achieved
during re-engineering.
In practice, re-engineering has been found to be a difficult undertaking. The difficulties start with the
task of documenting the systems currently in place. Actually, the important work of evaluating the current
state of the organization’s systems and business processes is not highly technical work. It requires time
and dedication, both of which are often in short supply. It also requires the formation and growth of a
community of interest within the organization.
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E-Government Strategies
1.
Introduction
The development of e-government is a long term business. A strategic direction is needed to
identify and guide the way a government should transform itself in response to new opportunities and
challenges. Well organized plans and strategies are needed in the early stages to pave the way for the
success of e-government development. Especially for developing countries, e-government development
strategies can help to achieve e-government milestones in a relatively short time. The success of egovernment initiatives depends on how well they are planned and implemented. Although the basis for
e-government development, such as e-government readiness, infrastructure, and business processes
may vary from country to country, the ultimate goal of e-government is more or less the same.
2.
Priority Setting and Where to Start
It is not enough simply to computerize existing business processes merely for greater efficiency or
cost effectiveness. The processes and the structures themselves and the organizations that deliver them
need to change. However, even in many developed countries, e-government is still very much about
computerizing existing government businesses, rather than reengineering or transforming them and this
fails to take full advantage of the opportunities available.
E-government is a powerful means for administrative reform. Whenever e-government
projects/programmes are being formulated or are going to be launched, opportunities and ways for
transforming the existing administrative structure must be studied. Moreover, it is crucial not to follow
blindly what the other countries are doing with respect to e-government development. Instead, each
country should aim to
•
Understand the global trends of e-government and the potential of ICT for good
governance.
•
Identify its own opportunities for e-government development based on its own situation.
•
Define its own priority areas and develop its own strategy for e-government development.
It is important to analyze existing global e-government projects and to apply the best practices from
successful models as well as to learn from their mistakes. Creating a tailor-made strategic plan relevant to
the actual requirements of a country is the first thing one needs to do when thinking about e-government
development.
Hundreds of issues face government agencies and departments. It is critical to decide where to start, or
how to set the priorities of an e-government development plan. Obviously, the foremost consideration
when planning an e-government project is the nature and extent of the potential benefit. In other words,
whenever an e-government project is going to be launched, the first question is: What can be achieved or
what return on investment is likely to be achieved by the e-government project? No one would be willing
to invest in an e-government project which has neither explicit benefits nor returns. Global experience
E-Government Strategies
indicates that there are three types of benefits or returns that can be achieved from e-government
development. They are economic benefits, social benefits, and benefits of government.
2.1 Priority to Economic Benefits
Those e-government projects which have brought remarkable economic benefits have done so
through
•
Revenue increase, this includes all kinds of systems that can be used for increasing
government revenue, such as: taxation management systems, VAT management systems,
property tax management systems, and custom management systems, as well as
management systems that deal with all kinds of public charges (e.g. toll fees, vehicle
registration fees, and license fees, etc.).
•
Better financial management, this includes payroll management, payment and expenses
management, and different kinds of project and investment management designed to
maintain an effective management of cash flow.
•
Improving resources and planning management, such as geographic information systems
(GIS is the foundation), resource information systems, land and property management
systems, national assets management systems, and city planning and construction
management systems, etc. All these systems can improve management effectiveness so as
to achieve economic benefits.
•
Create a better marketing and investment environment, for example, industrial and
commercial business management systems; national/international trading management
systems; market information systems, providing statistics and an analysis of the economy and
of new technology; patent management systems; foreign capital management information
systems; and legal information systems.
Government information systems which bring such remarkable economic benefits can no doubt
help governments provide better services to businesses and citizens. Moreover, they can increase
government revenue as well. Obviously, increased government revenue may give governments more
financial power to re-invest in e-government projects. Therefore, e-government projects with the
potential to bring economic benefits are the first priority area to be selected in many countries.
Successful implementation of these projects will create a favorable cycle for sustainable e-government
development.
2.2 Priority to Social Benefits
Those e-government projects which have obvious social benefits include
•
Improving services to citizens, including systems for the management of registration
services, such as births, deaths, marriages, divorce, and migration; management systems
for issuing ID cards, passports, driver licenses, unemployment allowance, and
employment support; and management systems for land and housing registration, etc.
•
Strengthening police and public safety, including management systems for immigration
control, criminal and prison management, drug control, transportation monitoring and
management, and other associated public management systems.
•
Better public education and cultural management systems, including systems for
electronic enrolment, for enquiring about diploma and degree certificates, for facilities such
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E-Government Strategies
as e-library and community information centres, and for providing access to the Internet in
schools and colleges.
•
Improving medical and health care, including hospital information systems and systems for
making appointments online, providing distant medical care, and supporting the online
selling of medicines, as well as organ transplant information systems, blood centres, and
medical insurance systems.
•
Environment protection and environment information systems, including environment
protection information systems, weather forecasting systems, earthquake monitoring, and
alarm systems, etc.
Some e-government projects which bring sufficient social benefits require significant investment.
Although in some instances it may be possible to get a quick return on this investment, in other cases it
may be difficult to get the investment back within a short period. Even though some e-government
projects may not have immediate social benefits, they provide convenience and safety for citizens, and
they improve the quality of government services. At the same time, citizens’ personal skills are
improved through easy access to information and knowledge. Therefore, these kinds of e-government
projects benefit social progress and economic development. Moreover, initiatives of this type can
secure enthusiastic and genuine support from citizens and thereby help maintain social stability and
safety.
2.3 Priority to Benefits of Government
Informatization is a powerful tool that can not only improve government but also transform it. Egovernment projects benefit government by
•
Improving effectiveness and efficiency of core government business, through systems for:
national defense, security and intelligence; the provision of information to executives and
high-levels of government; management of public communications and internal
telecommunications systems; decision-making; and information and knowledge
management.
•
Increasing transparency and strengthening anti-corruption, by providing more effective
systems for internal financial management, personnel management, auditing, eProcurement, public tendering for government goods and services, etc.
•
Development of government information, through systems for the management of different
kinds of legal information and information about government instruction/orders and
systems for the management of documents, records and archives.
E-government covers a wide variety of government business; all the systems and the projects
listed above are examples that can be taken into consideration when the development of e-government
is being planned. Which ones are selected will, of course, depend on the priorities of the government
which must also take into account diverse points of view.
3.
‘Think Big, Start Small, Scale Fast!’
In moving towards e-government, one thing is clear above all else, initiatives must be more than
front-end showcases that mask internal chaos. Instead they must demonstrate new ways of thinking,
new ways of doing business, new alliances and new technology. Therefore, for any e-government
development, it is important to follow the strategic principle: ‘Think Big, Start Small, Scale Fast’ (Figure
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E-Government Strategies
1.1). This principle has become fundamental in global e-government development and information
systems engineering. Follow it and succeed; otherwise ignore it and, most probably, fail! This is due to
the complexity of information system engineering which is susceptible to dominating factors which
include: the nature of closely–related business, the influences of human behavior, the costliness of ICT
products and the necessity for big investment with possible ambiguous investment returns and rapidly
advancing technologies.
Figure 1.1 Think Big, Start Small, Scale Fast
‘Think Big’ means that an overall picture of e-government development should be sketched out
before any concrete e-government initiative is implemented. In this regard, first of all, ‘Think Big’ implies
that a vision and an insight for e-government must be formulated. Secondly, the short- and long-term
objectives and goals of e-government development in a country or region must be clearly defined.
Thirdly, the priority areas of e-government development must be identified and a development plan
worked out. Fourthly, the funds for the planned e-government projects need to be in place. Finally, all
the issues which influence the projects to be implemented should be given careful consideration. Issues
include legitimacy, regulations, norms and standards, and organization and management. ‘Think Big’
does not mean planners of e-government should have a large-scale e-government plan with huge
investment. On the contrary, the imperative is to make the e-government development realistic,
sustainable and carried out with full discernment and imagination.
‘Start Small’ suggests that no matter how grandiose an e-government plan is, or how large an egovernment project is, they must start on a relatively small scale or with a relatively small portion of the
total plan. The purpose of ‘Start Small’ is to ensure the success of e-government initiatives. As far as
how to select the ‘relatively small portion’ is concerned, it must be simple, easy to achieve, require
reasonable investment, and carry the least risk. By carrying out the initial project successfully in this
way, the project team will be given credit, gain substantive experiences, learn lessons, and win further
support from users and top management. More importantly, all the problems, resistance, and potential
obstacles will be exposed which will definitely benefit the entire e-government plan or project.
‘Scale Fast’ implies that anything achieved in e-government initiation should be applied and/or
extended to similar business activities within the entire government agencies or branches promptly so as
to enlarge the ‘victory’ and obtain as much economic and social benefit as possible. ‘Scale Fast’ also
means keeping pace with and making full use of the advanced technologies, otherwise the ICT
products which are procured would soon become either obsolete or out of date.
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E-Government Strategies
4.
Development Strategies
There are a number of other development strategies related to e-government development.
4.1 Early identification and resolution of common policy issues and practical
challenges
As government agencies place information and services online and begin to implement their egovernment projects, it is inevitable that they will face a series of common policy, administrative and
managerial issues; and a lot of practical challenges, such as the creation of government standards for
public data and information, norms for common government business, and standards for information
security. An important strategy that governments should place emphasis on is the early identification
and resolution of common issues and challenges. Some of these enablers will assist agencies to
overcome practical problems, while others will provide guidance about which approach to adopt where
no obvious choice currently exists. Doing so will not only accelerate the progress of e-government
development but will also save much investment.
4.2 Building User’s Confidence
One strategic priority for a government to consider is the early development of a legal and
regulatory framework to facilitate electronic commerce. It is important to gain the confidence of all
people that online information and transactions are private and secure, and, where necessary, that the
identity of the counter-party is authenticated. Some aspects of user’s confidence can be dealt with in an
economy-wide manner, such as the passage of an Electronic Transaction Act to provide legal certainty
for online transactions. In this respect it is important to secure the following three features if egovernment is to be successful:
4.2.1 Authentication
A common feature of online service delivery and financial transactions is the need for each party in
the transaction to ensure the authenticity of the other party, and to ensure the integrity and security of
the information exchanged as part of the transaction. Electronic authentication technologies, such as
‘public key infrastructure (PKI)’, provide a means to meet these requirements. Many governments have
already set up a priority for developing these facilities while others already have them in place. A specific
public key digital signature process that assists both business and government agencies in dealing with
government is also important for electronic transactions or electronic document exchanges. An online
digital signature certificate, which authenticates the identity of a business or government agency,
should be linked to a government’s PKI and be used by all agencies.
Electronic authentication technologies should be a part of online service delivery initiatives if a
substantive e-government system is going to be established.
4.2.2 Privacy
The protection of personal information on the Internet is widely regarded as a threshold issue for
many people who use, or who are considering using, the Internet for providing information to, or
transacting with, government agencies. Therefore, many governments attach great importance to
finding a solution for this. A survey carried out in the United States in the year 2000 showed that 65% of
American people hoped that the pace of e-government would slow down because of concerns about the
ability of the Government to protect citizens’ privacy.
Many governments are already bound by a Privacy Act passed by their legislative body and already
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E-Government Strategies
handle personal information in accordance with the information privacy principles. It is the responsibility
of government departments and agencies to ensure that their websites and other online activities
comply with the Privacy Act. Some governments also articulate guidelines to agencies to assist them in
ensuring that the privacy practices of their websites and other online activities comply with the Privacy
Act. Such guidelines cover openness, collection of personal information, security of personal
information, publishing personal information, and so forth. As part of the e-government strategy, some
governments also require agencies to comply with these guidelines within a timetable or a specified
timeframe.
4.2.3 Security
The security of personal information is also a threshold issue of concern to potential and current
online users, even if the user is confident about the privacy practices of the agency. Cryptographic and
authentication technologies can provide security while a transaction is conducted, but users require
more than this. They want reassurance about the totality of an agency’s security, including the storage
of information after a transaction is completed.
For this reason, agencies are required to devise an information systems security policy and
implement plans to ensure government information systems are appropriately protected. Government
agencies are also required to comply with security guidelines developed by relevant government
authorities, in order to protect classified or unclassified online information. Usually, such guidelines will
describe the steps to be taken to evaluate a number of features including the security situation faced by
the agency, threats to security, consequences of security attacks, and the planning and implementation
of information security measures required by the government.
4.3 Agency-Based Approach
Each government agency should be requested to develop its understanding of the online
environment; what the online needs of clients are, what the possibilities are, and how best to deliver
services. Each agency needs to adopt a thorough and systematic approach to placing its information
and services online.
Each agency’s government online action plan should
•
Be based on the analysis of existing government information capacities, including national
or regional information infrastructure, various information systems and computing powers,
and human resources.
•
Be based on a comprehensive audit of the agency’s information, transactions, purchasing
arrangements, and other external dealings.
•
Be related to the agency’s customer service charter and identify all functions which
potentially could be made available online.
•
Identify services which could be coordinated with the delivery of services of other agencies.
•
Identify an indicative timeframe for bringing all their functions online.
•
Indicate impediments which need to be removed to achieve the goals of e-government.
An e-government plan should also address issues such as legislative issues, costs and benefits of
the Internet service delivery, and risk control strategies for the Internet and other electronic service
delivery. The strategies will also need to ensure that there are minimum mandated common standards
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E-Government Strategies
and online requirements.
Some government business processes are common to all agencies and are particularly well suited
to being delivered online. Each government agency should commit to moving all appropriate common
and routine business processes either online or to other electronic mechanisms in order to maximize the
efficiency of these processes for both the government and those that deal with the government. For
example, government e-procurement will reinforce the trend towards simplified electronic systems and
will perform an exemplar role.
4.4 Monitoring Best Practice and Progress
Experience to date has already illustrated the potential for all government agencies to benefit from
well-documented examples of best practice. In such a dynamic environment as the Internet, if best
practice examples of information and service delivery can be quickly identified and disseminated to
agencies, it will be possible to accelerate the movement of government to an online environment, and
thereby improve service quality and reduce costs more quickly. A lack of knowledge of examples of
best practice can be an impediment for an agency looking to move information and services online.
5.
Bridging the Digital Divide
Information technology opens new vistas for humankind and promises to improve our study, work,
and leisure. Information technology offers possibilities to broaden and to accelerate the global integration
of information networks, of economic activities, and of social, political, and cultural pursuits. Casting a
shadow, however, on these inviting prospects are multiple asymmetries that still bedevil the progress of
an information society. Currently, as a result, many developing countries and countries with economies
in transition are only passively integrated, if at all, into the global economy. An absolute majority of
enterprises in these countries have neither the capacity nor the means to be an active player in the
globalization process. Thus, the primary beneficiaries of globalization are trans-national corporations
and developed countries.
One of the principal causes of the asymmetries produced by technological progress is the widening
divide between those who can access and actively participate and those who do not have access to
global information networks. This is the digital divide. In a knowledge-based economy, economic
activities have become increasingly information intensive. Information has become as important as, or
more valuable than, land and physical capital. The ability to utilize the information available worldwide,
including the Internet, and to translate it into knowledge for productive activities has become a critical
factor not only for the survival of enterprises, but ultimately also for public organizations. Remaining on
the cutting edge requires the acquisition of state-of-the-art technology to capture, process, generate,
and transmit information.
Yet, in today’s world, the digital divide is emerging everywhere, not only between the developed and
developing nations but also within countries. Recent surveys indicate that, even in the industrialized
world, typical network users are middle-class, young adult or adolescent, and male. The poor, disabled,
older, or poorly educated have not been introduced to new technology and may continue to be
excluded from it. In many developing countries, access to the Internet remains a distant dream. Ability
to access information and knowledge has turned into a ridge dividing rich and poor.
A series of measures has been taken to bridge the digital divide worldwide. In the United Kingdom,
governments have set up PCs with Internet access at public libraries free of charge. In Jamaica, PCs
with access to the Internet are available in Post Offices at affordably low fees. In Italy, some city
governments provide free Internet access and e-mails to all the citizens. In Canada and Singapore,
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E-Government Strategies
governments offer financial assistance to families with low incomes. In India and in some other
countries, information kiosks are becoming popular, where not only is Internet access available but
access to the public services, such as receiving payments for water, gas, electricity, and others is also
available.
When transforming government into e-government, providing access to technology is viewed as a
powerful enabler helping to bridge the digital divide. However, in a citizen-centered approach to the
digitization of information, citizens’ needs and requirements must be identified first. Technology is used
to meet these needs so as to encourage and attract citizens to access the Internet, and, as a result,
bridge the digital divide.
Actually, in many countries the digital divide issue has been addressed at a higher level through
the development of various policies. Governments attempt to break down both the physical and
psychological barriers associated with the digital divide. A range of suitable media is used to maximize
the use of available telecommunication infrastructure and existing community resources. A proliferation
of delivery channels is used to mitigate against limited access due to a lack of ICT knowledge or skills,
financial restrictions, language, or disability barriers.
Most e-government initiatives provide citizens with easy access to relevant, consolidated district,
county, and national information and services. At the same time, e-government initiatives should focus
on producing a locally named and designed website. Local websites provide citizens with access to local
knowledge, services, and learning opportunities. A community portal with a local identity, rather than a
national or regional perspective, can make citizens more likely to trust electronic interaction and learning.
This acts as a catalyst for greater knowledge sharing and the development of learning opportunities.
These websites provide a personalized interface for citizens to explore areas of interest and need and
to interact with other local and wider community members.
Wider community isolation and employment issues are resolved through the use of web-based
information, local business information, email services, and online access to educational facilities.
Citizens on an individual level are helped to acquire knowledge, develop skills, and to pursue leisure
interests and opportunities. Citizens are also empowered to campaign and to participate in the
democratic process, and to publish and broadcast opinions and ideas. Moreover, web-based
government business can support and develop small businesses, open up new avenues of
communication, improve public agency service delivery, and support existing regeneration objectives
and programmes.
Governments have to innovate and exploit the existing information infrastructure and to build
services around citizens’ needs in order to make public information and services accessible and useful.
Sustainable returns in e-government can be made if citizens’ ICT skills and knowledge are improved to
fit the new e-driven business processes.
The creation of a knowledge-based economy is not an impossible dream for developing countries.
However, moving to a knowledge-based economy may not be either feasible or meaningful for all
countries, especially in the short term. It is important to note that bridging the digital divide is not simply
an issue of building an information infrastructure, nor of buying and handing out computers and modems
to all citizens. Indeed, moving to a knowledge-based economy involves more than just acquiring and
using information technologies. Specific policy choices, the ability to absorb new technologies, and
success in creating a favorable national culture are also important factors.
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Related Laws and Regulations
1.
Introduction
The tremendous importance of computer applications and information systems has made issues
surrounding relevant laws and regulations increasingly crucial for any country developing or implementing
e-government initiatives. In e-government development some issues require immediate attention while
others can be faced in the medium or long term. Early attention to laws and regulations will benefit the
creation of an environment that will facilitate the development of e-government. Issues that are of
immediate and pressing importance include electronic documents, data security, privacy, statistical
disclosure, protection of intellectual property, vulnerability, computer crime and fraud, and transborder data
flow.
However, technology is developing much faster than the legal systems and law making process. No
adequate laws may exist, and sometimes there is no legal protection offered against the misuse of
certain new technology. In these circumstances, it is imperative that ethics take over to manage what
would otherwise be a very chaotic situation. Since it is not feasible to discuss the legal practices with
respect to computers and the Internet in every country around the world, a number of selected laws and
regulations covering common issues will be mentioned in this module.
2.
On Access Control
As a result of computerization, there is an increased danger of unauthorized penetration and use of
sensitive and confidential data and of the destruction of databases and communication networks. Concern
over the security of data and information systems has led to regulations that address information system
design, personnel, operation and data transmission. For example, a standard rule for data security may
include guidelines on
•
The designation of a data security manager.
•
The management of magnetic data files and records of inputs and outputs.
•
The management of documents (on system design, operation procedures, code books etc.).
•
The management of the operation of computers and terminals.
•
The maintenance and security of computer rooms and facilities to store magnetic files.
•
The contracting out of computer work.
•
The provision of data to outside people. Regulations regarding the handling and
transmission of classified data and information stipulate that scramblers and encoding
devices must be used to prevent unauthorized access to information while it is being
transmitted.
Related Laws and Regulations
The Access to Information Act and Regulations of Canada provides a right of access to information in
records under the control of a government institution in accordance with the principle that government
information should be available to the public. Necessary exceptions to the right of access are limited and
specific and decisions on the disclosure of government information are reviewed independently of
government. This act ensures that effective and consistent administration concerning the access to
information in records is controlled by government. Records defined in the Act are extendable to records
that do not currently exist but are able to be produced from a machine-readable record using computer
hardware and software and the technical expertise normally used by the government institution.
The Criminal Code of Canada has two related sections on unauthorized access (hacking), i.e.,
Section 342.1: Unauthorized use of computer and Section 342.2: Possession of device to obtain
computer service. These two sections address issues on using unauthorized user names, passwords,
computer addresses, or identities. They also address modifying assigned network settings that are used
to gain access to computer resources and/or data, or to evade, disable, or ‘crack’ the security provisions of
organizational or external systems. They stress that every effort must be made to prevent the unauthorized
disclosure and distribution of information that is the property of an organization.
3.
On Data Privacy
The provision for the privacy of data normally involves legislation and administrative guidelines for
ensuring that the collection, maintenance, and dissemination of an individual’s information by the
government are consistent with the laws relating to confidentiality. The acceptability of the use of the data
must be based on the individual’s fundamental confidence that government organs and other data users
will deal justly with him/her, that he/she is legally protected and that despite his/her relative impotence,
he/she will not be abused. The government information systems should prevent access to data that is
legitimately secret, confidential, private, or otherwise not accessible under the law and prevent improper
interference with or erasure of the record. A most controversial issue is the use of national individual
identification numbers that information systems can use for various administrative purposes. Easy access
to data on individuals from various administrative offices makes public administration extremely
efficient. However, crucial questions arise concerning the protection of the privacy of individuals, the extent
to which the data can be retrieved, and so on. Consequently, different mechanisms of securing privacy
must be devised.
Much of the data gathered or information compiled by government agencies is legitimately of interest
to organizations and individuals outside the government. Accordingly, legislation should exist to make
information of interest available to the public. In particular, surveys and statistics on various subjects
should be routinely made available to the public. In addition, individuals should know what personal
data relating to them is on file, why this data is needed, how it will be used, who will use it, for what
purpose, and for how long. Data subjects should be able to verify data related to them and have the right
of redress.
The Data Privacy Act of the United States of America (H.R. 2368) introduced in 1997 helps to cut
out, at the source, the dissemination of Social Security numbers, unlisted telephone numbers, and
other personal information, such as date of birth, postal address, and mother’s maiden name. This is
important because this kind of information is subject to serious abuse. For instance, this information
can be used to open fraudulent charge accounts, to manipulate bank accounts, and to gain access to
the personal records of others.
The Privacy Act of 2003 of the United States of America attempts to stem the rising tide of identity
theft and other privacy abuses through legislation by setting a national standard for the protection of
personal information, including social security numbers, driver’s licenses, and health and financial data.
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Related Laws and Regulations
The Act establishes a two-tiered system of protection for all personal information. For the most sensitive
personal information such as social security numbers, an opt-in system has been put in place that requires
organizations to obtain an individual’s explicit permission prior to the sale, licensing, or renting of the
information to third parties.
The Data Protection Act of the U. K was first introduced in 1984. The amendment in 1998 brings
the Act into line with other European countries, in particular Germany and France. The main objectives
of the Act are to protect personal privacy and to enable the international free flow of personal data
through harmonization. The principles of data protection state that personal data must be processed
fairly and lawfully (e.g. include preconditions); obtained and processed for specific purposes; relevant
and not excessive; accurate and up-to-date (where appropriate); kept no longer than necessary;
processed in accordance with data subject’s rights; kept appropriately secure; kept within the EEA
(European Economic Area) unless adequate protection is available outside.
4.
On Electronic Documents
Electronic Document means data that is recorded or stored on any medium, in or by a computer
system or other similar device, and that can be read or perceived by a person, a computer system, or
other similar device. It includes a display, printout, or any other output of that data. (See also below:
The Personal Information Protection and Electronic Documents Act of Canada)
The purpose of laws or regulations on electronic documents is to provide for the use of electronic
alternatives where the law specifies the use of paper to record or communicate information or
transactions. Together with secure electronic signatures, electronic documents can be used to
authenticate business transactions and to provide evidence in legal proceedings.
The Personal Information Protection and Electronic Documents Act of Canada was introduced in
2000. The second part of this Act defines that an electronic document is data that is recorded or stored
on any medium, in or by a computer system or other similar device, and that can be read or perceived
by a person, a computer system, or other similar device. It includes a display, printout, or any other
output of that data. In government terms, the Act allows the provision of information and documents in
an electronic form that are signed by the Minister or a public officer with that person’s secure electronic
signature to be admissible as evidence as it satisfies federal laws. The Act states that the electronic
document should be retained for a specified period in the format in which it was made, sent or received,
or in a format that does not change the information contained in it. The Act also states that:
1. Information in the electronic document will be readable or perceivable by any person who
is entitled to have access to the electronic document or who is authorized to require the
production of the electronic document.
2. Any information that identifies the origin and destination of the electronic document, and
the date and time when it was sent or received should also be retained.
ISO/DIS 17933 of 1998 is an international standard on generic electronic document interchange. It
defines a format for the exchange of electronic documents between computer systems. In this regard,
the standard places emphasis on two areas: the definition of electronic document format, and the
description of the interchange mechanism. The standard provides a common ground for the
development of electronic document delivery services. Use of the standard makes it relatively easy to
develop links between different delivery services and presents a general model for the interchange
process underpinning electronic document delivery. It provides suppliers and consumers with the facility
to enable the transfer of electronic documents.
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Related Laws and Regulations
The Electronic Freedom of Information Act Amendment 1996 of the USA requires all federal
agencies to use electronic information technology to foster the public availability of electronic
documents. Government agencies increasingly use information technology to conduct agency
business, and to store records of value to the public as well as information in electronic forms. The Act
provides individuals with the right to access those records that are in the possession of the federal
government.
5.
On Copyright and Patent
One of the major areas with which the terms of computer law are concerned is the relationship
between copyright and patent law, and the legal protection of software. The emergence of sophisticated
equipment, software programmes, and application packages emphasizes the importance of legal protection
for intellectual property through national legislation. This includes software protection, patenting, and
copyrighting. The development of software and computers must be protected against illegal copying to
ensure that developers are properly rewarded for their work and to encourage others to enter the
marketplace. Traditional means of protecting intellectual property are copyrights and patents. Information
technology brings a number of problems to this area, for example: the problem of distinguishing between
the central idea captured in a programme and the programme itself; and the distinction between hardware
and software is increasingly blurred.
The Copyright Act of Canada establishes and protects ownership and the corresponding rights to
produce or reproduce works, or any substantial part of them, in any material form, and to perform or publish
them. The Act identifies actions representing infringement, identifies remedies to which the owner is
entitled in cases of infringement, and establishes the process of copyright requests and of maintaining a
register of copyright. The Copyright Board administers the Act, rules on issues, and certifies royalties.
The Software Copyright of UK states that it is a criminal offence to copy/use licensed software
without permission. Proprietary software products are usually supplied under a license agreement that
limits the use of the products to specific machines and may limit copying to the creation of back-up
copies only. FAST (Federation Against Software Theft) and BSA (Business Software Alliance) actively
seek out prestigious organizations to prosecute. Whilst it takes significant effort to keep track of
licensing, it is important to improve everyone’s awareness about software copyright.
6.
On Computer Crime
Computer crime is one of the major areas of concern in terms of computers and the law. It has
become one of the most publicized aspects of computer use. The various crimes associated with computers
are difficult to evaluate in terms of either magnitude or frequency, but it seems safe to say that the number
and variety are increasing and that the stakes are growing. Computer crime involves the use of the
computer, with or without computer networks, to steal or embezzle money in a manner that could not
easily have been done otherwise. There are also such crimes as stealing computer time, unlawful access
to files, the acquisition of privileged information, and the actual destruction of computer files. This last
activity has probably become the most highly publicized, and terms such as ‘virus’ and ‘worm’ have
penetrated the public consciousness. In industrial countries, while much computer crime has traditionally
been perpetrated in banks, small and large companies, and government bureaucracies, viruses have had a
direct impact on ordinary citizens at home. Computer viruses seem to arrive as regularly as biological ones
and occasionally with the same devastating effects.
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Related Laws and Regulations
To safeguard against computer crime in government information systems, it is necessary to adopt
‘minimum’ legislation with regard to
•
Data safety and requirements, which should be based on internationally accepted technical
standards.
•
The protection of users and the public under predetermined conditions.
•
The transborder flow of data to ensure that confidential or sensitive information of vital
national interest is stored and processed only within the borders of the country itself.
The Computer Fraud and Abuse Act of the United States of America (CFAA) was introduced in
1986. This Act punishes anyone who intentionally accesses without authorization a category of
computers known as ‘federal interest computers’ and damages or prevents authorized use of
information in such computers, causing the loss of $1000 or more. The issues raised are (i) whether the
government must prove not only that the defendant intended to access a federal interest computer, but
also that the defendant intended to prevent authorized use of the computer’s information and thereby
cause loss; and (ii) what satisfies the statutory requirement of ‘access without authorization’.
The Computer Misuse Act of the United Kingdom was introduced in 1990. It covers unauthorized
access (hacking) and unauthorized alteration/destruction (e.g. through viruses, Trojan horses, logic
bombs, etc). ‘Unauthorized’ includes exceeding authority. It is essential, therefore, that all users are
aware of the precise scope of their permitted access. Any use of the information processing facilities for
non-business or unauthorized purposes, without management approval, should be regarded as
improper use of the facilities. This Act widely protects all systems. It is a criminal offence to misuse
computers in most countries and, now, almost all developed countries have a relevant Act. However,
this is not completely the case internationally and it is difficult to prosecute people or organizations
involved in such activities outside the protected countries.
7.
On Electronic Signature
The primary intent of the laws and regulations on electronic signatures is to spur e-commerce and
e-government by clearing legal impediments to electronically signed records. This ensures security and
trust in electronic communication. Although some are more technology-specific requiring public-keybased digital signatures, most of them promote both flexibility and diversity in government e-signature
use.
The EU Electronic Signature Directive 1999 covers the use and legal recognition of electronic
signatures within the European Union. It ensures that electronic signatures can be used as evidence in
legal proceedings in all Member States. It establishes a legal framework for electronic signatures and
certain certification-services in order to ensure the proper functioning of the Internet market. The
Directive requires each Member State to ensure the establishment of an appropriate system that allows
for the supervision of the certification-services-providers established on its territory and which issue
certificates to the public. Member States may make the use of electronic signatures in the public sector
subject to possible additional requirements. The Directive does not seek to harmonize national rules
concerning contract law with reference to e-signatures, particularly the formation and performance of
contracts, or other formalities of a non-contractual nature. However, Member States shall bring into
force the laws, regulations, and administrative provisions necessary to comply with the Directive.
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Related Laws and Regulations
The Government of the United States of America has enacted a variety of electronic
signature laws. Electronic Signatures in Global and National Commerce Act went into effect in
2000. The Uniform Electronic Transactions Act and the federal Government Paperwork
Elimination Act also encourages the use of e-signatures. These laws provide U.S. federal, state,
and local governments with the flexibility to implement a variety of e-signature technologies to
meet specific needs.
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E-Government Related Standards1
1.
Introduction
Standards play a key role in the healthy and smooth development of governmental information
infrastructure and systems. The compatibilities of hardware, software, and communication facilities of
organizational information systems are secured by standardization as are the compatibilities that enable
sharing of data/information within and outside government agencies. The broad social and economic
benefits in the proliferation of information systems largely rely on standardization because standards are
the tools for raising productivity, avoiding duplication of efforts, and reducing the risk of investing in
complex systems. Standardization practices help government agencies to more fully utilize the skills of
their staff members and reduce their training costs. Standardization is a tool for managing change and for
protecting the increasing volume of computer data/information, as well as a method of raising the level of
science and technology and the quality of management.
2.
Developing and Issuing Standards
Government performs a key role in the standardization of information systems. It is the government’s
mandate to set clear policies and objectives for the standardization of government information systems. It
can do this through the precise definition of their fields of applications and their nature (descriptive or
normative) and through the process of their development, updating and maintenance. Of course, the State
Bureau of Standardization, if it exists, would take the main responsibility for the development of various
standards of information systems. If it does not exist it is helpful to set up an ad hoc national commission
responsible for setting priorities, planning, organizing, supervising, and maintaining the various kinds of
standards identified. The recommended terms of reference of the commission are
1. To make sure that standards are taken into account in all fields of information system policy,
training, procurement and in associated regulations and laws.
2. To organize a review of existing information systems according to development priorities to
ensure the use of standards where necessary.
3. To review all significant information system projects to ensure that information standards are
taken into account.
4. To organize the updating of standards (especially classifications) in order to keep them
consistent with developments in legislation as well as in technology.
5. To make sure that when changes are made in legislation, the necessary time is allowed to
1
‘Database Management Systems Standards Committee Recommendation’ and ‘Email,
Directory Services & Security’ by State of Colorado; ‘Desktop Standards’ by CIO Forum Desktop
Subcommittee are the main references of this session.
E-Government Related Strategies
adapt the affected information systems.
6. To avoid obstacles to innovation or the setting of standards that could prove inapplicable and
counterproductive, by involving all the relevant institutions of the public and/or private
sectors in their development.
While developing and issuing the standards for government information systems, it is essential to edit
and disseminate various guidelines to the government agencies. These guidelines may
•
Assist in the selection and evaluation of information technology resources.
•
Provide technical or economic criteria for making choices among several alternative practices.
•
Assist in the implementation of a standard.
•
Establish a recommended practice when a mandatory standard might inhibit developing
technology or overly constrain management options. In addition, sufficient attention should
be paid to existing corporate, national, and international standards, such as ANSI
(American National Standards Institute), ISO (International Standards Organization), and
de facto industrial standards, such as those developed by Microsoft.
Standards for Government information systems are usually composed of data standards, technical
standards, methodological standards, and security standards.
3.
Data Standards
Data standards help to eliminate duplication and incompatibilities in the collection, processing and
dissemination of data and promote useful information interchange. Standards facilitate inter- and intradepartmental data sharing. Data standards are used by core business functions to promote maximum
efficiency, accuracy, and return on investment. Their use is a necessary step towards data integration
across boundaries between government agencies.
To fully realize the organizational benefits, data standardization should also include data elements
and data exchange standards. Standard data elements and representations for geographic places, dates,
time, industrial classifications, government organizations, and other identified priority entities (individuals,
business enterprises, land units, buildings, vehicles, etc.) are prerequisites for the development of
government information systems.
During the establishment of data standards, lists of basic entities and priorities should be identified
first and unambiguous definitions should then be assigned to the basic entities according to the legal
environment. A thorough evaluation of the quality (coverage, reliability) of existing registers needs to be
conducted and amended as necessary. Meanwhile missing registers should be identified and steps
taken to establish them. Adequate common identifiers for each basic entity will then be designated to
identify the minimum information sets to be included in the basic register consistent with existing privacy
regulations. Finally, access to and use of the basic registers within the public sector information systems
can be organized.
Data classification is another important issue in developing data standards. In this instance, it is
necessary to identify key information items of common use in government information systems or those
which are essential for planning and development such as economic data. Each information item should
be defined and related to the relevant basic entity. Classification(s) to be used for these information
items can then be identified.
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E-Government Related Strategies
While developing its national or governmental data standards it is important for any country to make
full use of, and act in consistency with, the relevant existing international standards. This is because, on
the one hand, it would benefit global information sharing, which has been particularly important in the
Internet age; and, on the other hand, it would provide a short-cut to setting up national standards.
Developing national data standards requires tremendous human and financial resources and can be
time consuming. For many countries, in particular, the least-developed countries, this is a heavy burden
and likely an unaffordable one. The use of international standards can reduce the burden.
4.
Technical Standards
Technical standards include those for hardware, software, and telecommunications, as well as
information systems as a whole. As the common foundation for developing government information
systems, a consistent set of standards for the description of the technical architecture of government
information systems (such as networks, servers, security systems, etc.) should be chosen. A limited set of
hardware standards needs to be selected to facilitate compatibility and data communications, including
operating systems and formatting. A unique set of telecommunication standards and protocols should be
designated in order to ensure the development of data transmission within the government, from the
cabling systems to the user interface. A limited set of software for mainframes, servers, as well as
microcomputers (e.g., database management systems, word processing) should also be chosen in order
to facilitate the setting up and use of common databases, and to reduce the costs of applications
development and training.
The objectives of these standardizations are to
•
Leverage the buying power of the entire organization to acquire the most economical
units.
•
Enable easier maintenance of standardized units by reducing fragmented configurations
and improving the ability to troubleshoot that would have otherwise increased the cost of
ownership.
•
Reduce resources required to acquire hardware and software.
•
Eliminate ‘rogue’ applications.
•
Enforce software licensing.
•
Facilitate communication and information transfers among the organization’s employees.
•
Improve technical support and training by reallocating funds saved at the initial purchase.
It is obvious that the main reason organizations should adopt these standards is to improve overall
business productivity, which means cost savings. Organizations should focus on the functions and
specifications required for standardization rather than on the specific products. This is because of the
pace of technological change and the fact that this approach increases the possibility of leveraging buying
power during product acquisition.
5.
Methodological Standards
Methodology is an approach, a method, or a technique for developing information systems. The
methodology employed guides planners in the desired working method. These standards define common
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E-Government Related Strategies
terminologies and offer a standardized job plan, while allowing greater diversity in individual practices that
is characteristic of successfully developed projects. They can also reduce confusion.
Methodological standards involve choosing a unique and consistent set of methodologies covering all
the steps of information system planning, design, implementation, and evaluation, for example:
•
Information system planning methods.
•
Information system design methods.
•
Software engineering methods.
•
Quality assurance and testing methods.
•
Security and maintenance methods.
•
Performance assessment methods.
It is the popularization, publication, and use of these standards and methods that guarantees the
quality and success of information systems development. Therefore, it is necessary to make sure that these
methods are made mandatory and are applied by contractors in all public sector service projects, including
procurement. It is also necessary to make sure that these methods are introduced at the appropriate level
in the training curricula provided by the various institutions contributing to the initial and in-service training
for public administration professionals and managers. In addition, it is important that the processes are
designed in such a way that they can be amended or replaced whenever necessary or appropriate.
6.
Security Standards
Security standards help organizations to protect their information systems from possible threats
through effective and sufficient countermeasures and activities that safeguard the information used in the
course of government business activities. A government policy should be issued to establish and fix the
responsibility for security within the government. This will also be useful in setting the stage for the
subsequent issuance of security standards within the government.
Security standards should be formulated on the basis of risk assessment. These standards should
specify security issues and problems, the ownership of government information resources, and the
protection afforded to them, including the responsibility of users/owners for the care of the information
resources entrusted to them. They will also cover access control and formal programmes. The
responsibility of users and owners of information resources should include the physical security of
physical resources, e.g. microcomputers, servers, LANs, and the Internet connections, etc., under their
care.
Security standards are developed to support
•
The categorization of information and information systems for security purposes.
•
Selection of appropriate security controls for information systems.
•
Verification of security control effectiveness and determination of information system
vulnerabilities.
•
Operational authorization for the processing (security accreditation) of information systems.
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E-Government Related Strategies
Therefore, security standards aim to achieve
7.
•
More consistent, comparable, and repeatable evaluations of security controls applied to
information systems.
•
A better understanding of organization-wide mission risks resulting from the operation of
information systems.
•
More complete, reliable, and trustworthy information for authorizing officials – thereby
facilitating better informed security accreditation decisions.
•
More secure information systems within government agencies including the critical
infrastructure of the country.
Normalization of Government Business Processes
As described in the horizontal model of a government presented in ‘Modelling Government
Business’ (Part 1, Module 4) government agencies share many common functions, such as financial
management, personnel management, document management, archive management, etc. Obviously,
there is no need for every agency to develop its own financial, personnel, document, and archive
systems. Standardized software sets for these commonly-used systems will no doubt minimize a
government’s need to invest in system development, facilitate information sharing, and promote the
popularization of the application systems. In certain cases, it will promote the development of the
national software industry as well.
In order to achieve this, however, the prerequisite is to normalize the business processes of
government agencies for financial management, personnel management, document management,
archive management, and so forth. Data and data models of a business process can be standardized
only once the business processes are normalized. From this point of view, normalization of government
business processes is not only significant in the improvement of the quality of government administration
and management; it is also important to the development of e-government.
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Methodologies of e-Government Systems Development
1.
Methodologies for Information System Development
Methodologies, specifically systems development life-cycle methodologies, provide the framework and
the sets of procedures within which the myriad of tasks involved in the development of e-government can be
performed. Most methodologies cover the entire span of development activities from project initiation
through to post-implementation review. A methodology for system development is a formal and
structured approach that outlines and describes sequentially all phases, tasks and considerations that
are necessary for a successful project. The framework and the set of procedures will ensure that each
development phase is carefully planned, controlled and approved; that each complies with set
standards; that each is adequately documented; and that each is properly staffed.
From the viewpoint of management and control, the methodologies of information systems will
•
Use the experience of experts and other system developers for reference, and thus provide
managers who are new to the process with a check list of steps that should be taken and
questions that should be answered so as to facilitate the development of information
systems.
•
Provide a historical record of the development process, through the use of a formal
methodology and required documentation that could be used for the future planning and
evaluation of information systems.
•
Allow user-managers better control over the progress of the project and thus increase the
usability of the end results.
•
Permit the transfer of design from one application to another and the transfer of personnel
from one project to another.
It is essential, therefore, that the development of e-government systems be undertaken according to a
set of formal procedures or methodologies.
Before an e-government system is developed, an in-depth examination of the business processes
associated with the system, including interactions within or between the government agencies, must be
carried out. Information systems are designed to computerize and re-engineer related business
processes so as to improve effectiveness, efficiency, and productivity of government business. Obviously,
without streamlined business processes, or business flow, there will never be streamlined information
flow within or between government agencies. That is the reason why Business Process Redesign (BPR)
and re-engineering have been very popular in industrial countries since the 1980s.
There are three different types of information system development resulting variously in
•
Information systems which have custom-designed software, i.e., system application software
are custom-designed to meet the special needs of the users of the information systems to
Methodologies of e-Government Systems Development
be developed.
•
Information systems which use packaged software, i.e., software developed by a third party,
either vendors or consultants, which is used as the fundamental application software. Of
course, some customization work may be inevitable.
•
Information systems re-engineered from existing ones, i.e., existing code and data is reengineered and migrated to a new advanced software technology environment and
platform in order to modernize and enhance the functionality of existing information
systems. Or, getting old ‘legacy’ systems to fit into a modern system, by the use of
connectivity products.
With the development of software technology, information systems are increasingly being developed
by packaged software. Regardless of which type of information system mentioned above is being
developed, an appropriate methodology of information system engineering must be adopted to ensure the
success of the system development.
There are four different methods of systems development as follows:
1. The Data Oriented Method, used when data/information necessary to carry out the
institution’s work forms the basis of the system change. The data oriented method is suitable
for processing large, non-homogeneous amounts of information and very dynamic
procedures.
2. The Functional Method, used when the organizational units (functions) and their mutual
communications form the basis. The functional method is suitable for processing complicated
procedures with many surfaces or points of contact and processing rules. In addition, the
method is suitable for well defined tasks.
3. The Evolutionary Method, which involves a successive development. Higher priority system
parts are introduced before the lower priority parts, but in such a way that all parts of the
system form part of a planned totality. The evolutionary method is suitable for the introduction
of systems in phases, or when parts of the system are more important than the others.
Furthermore, the method is well suited for complicated systems.
4. The Prototyping Method, used when a functioning model of a future system is desired. The
prototyping method is suitable for highly non-structured tasks, e.g., dynamic environments,
experimental situations, dialogue systems, and for preparing organizations for the
introduction of e-government systems. Prototyping is a method where development of test
versions (prototypes) of the system is carried out at a very early stage. The method is also
called experimental system development, systems development with prototypes, or
interactive systems development.
Selection of a systems development method is based on an evaluation of the totality of the four main
areas and takes into account: the nature of the tasks; the organization involved; the technology available;
and the personnel, which includes users and technical professionals.
2.
E-Government System Engineering
The effective, efficient development of e-government systems is based on many factors, including
understanding the user’s requirements and being able to determine the most effective means to satisfy
them. The former requires detailed knowledge and expertise in the user’s business. This is essential and
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requires the availability and involvement of managers and users with an expert knowledge of their
business. The latter, determining the means to meet user requirements, requires the involvement of egovernment system analysts who have expertise in the state-of-the-art information technology. Therefore,
e-government system development requires a design partnership: the users provide business design;
the e-government system analysts provide technical design.
This is easy to say, but in practice very difficult to do. E-government system design, as with business
processes analysis, is at best an inexact science, one that is highly dependent upon a clear, precise,
and accurate communication of information and ideas between users, analysts, and designers. If
successful e-government system development is to be achieved, e-government system engineering
methodologies, which summarize and incorporate the experience and lessons of previous system
development, whether successful or not, must be followed.
In order to accomplish any given set of tasks effectively, the team must have a work plan or
procedure. Without it, activities are performed in a haphazard manner and with little, if any, coordination.
The results are that various intermediate products rarely fit together into a cohesive whole, and worse
yet, the finished product rarely meets the initial specifications. In some cases, because of the lack of a
work plan, there are no initial specifications. The detailed work plans for e-government systems
development are called methodologies. In fact, a methodology is a system of principles, practices, and
procedures applied to, and informed by, a specific branch of knowledge. As mentioned in the opening
paragraph methodologies provide the framework and the sets of procedures within which the myriad of
development tasks can be performed. Most methodologies cover the entire span of development activities,
from project initiation through to post-implementation review.
E-government system engineering leads to gains in productivity and to the quality of system
development. Some of the significant issues relating to information system development that are
addressed by e-government system engineering methods are as follows.
2.1 Data Administration and Information Resource Management
E-government system engineering attaches great importance to data administration and information
resource management and is a powerful vehicle for the establishment of data administration and
information resource management functions in an organization. Data administration is a function that
defines standards, stewardship, and control of information in an organization. Information resource
management has a similar purpose to data administration, but also includes the planning, organizing, and
control of data and process models and designs, defining configurations of hardware, software, and
network facilities, and training of the people required to support the e-government systems of the
organization.
2.2 Productivity and System Quality
Increased productivity with poor quality will not achieve the desired result of e-government;
productivity and quality must be improved together. E-government system engineering stresses and
assures quality by capturing business requirements before creating solutions. The rigor in the
techniques and phases of this methodology ensures that the initial quality is carried through to
implementation. Although it certainly costs an organization precious resources to establish and maintain
information resource management functions, the increase in the productivity of systems development using
e-government system engineering more than compensates for this investment.
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2.3 Change Management and Evolution
E-government system engineering provides a mechanism to manage change in an organization. The
addition, deletion, or revision of a business rule requires evaluation of the data and process model from a
broad perspective. This might lead to modifications in many systems. Changes in technology or system
requirements require modifications to system designs as well as to systems already implemented. By
separating technology-independent aspects of change management from technology-dependent
implementations, system maintenance is an evolutionary process that allows an organization to control
its own destiny.
2.4 Migrating to Alternative Architecture
Once technology-independent data and process models have been developed for a functional area,
they provide the basis for system design and implementation. In some cases the target environment for
implementation of a particular functional area may have already been specified. In many situations,
however, the data and business models become the baseline to evaluate alternative technologies. This
allows an organization to select the optimum configurations of hardware and software, and the network
based on the available budget to meet its needs. More than one target environment may be required to
satisfy the business needs depicted by the data and process models. Rather than merely interfacing these
different environments, however, they can be fully integrated, thereby taking advantage of the key
features of each environment.
2.5 Re-engineering and Reverse Engineering
Re-engineering emphasizes streamlining the business processes of an organization to take full
advantage of modern information technology and takes a top-down approach to building data and business
models. It yields high-quality results in a short period of time, while also ensuring user understanding. For
organizations with current systems that are not well documented, a bottom-up approach, reverse
engineering, might be necessary. E-government system engineering uses business normalization and
reverse engineering principles to extract database designs from data structures and programme code,
and develops technology-independent data and process models that are able to adapt to different
technology-dependent platforms. This process of reverse engineering is feasible for those organizations that
are not subject to business change because of regulatory or other constraints.
3.
Structured e-Government Systems Development
E-government system engineering enables an organization to maximize the advantages gained
from emerging technologies. The benefits realized range from new insights into the strategic business
vision of an organization, to detailed planning and optimized use of new technologies. Both short- and
long-term benefits can be attained. Once established, the returns from implementing e-government
system engineering ensure not only productivity and quality but also the long-term success of the
organization.
For this reason, this module gives a brief introduction to the methodology of structured egovernment system development, which is one of the important techniques of e-government system
engineering and is very useful, in particular, for large and complex e-government system development. As
the size of the project decreases, some development phases might be combined.
Assuming that an e-government project proceeds in a normal and orderly fashion, it can be expected to
follow the following general phases:
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•
Project initiation.
•
Requirements analysis, including business analysis, evaluation of the existing system
components, problem identification, and feasibility analysis of alternative approaches; logical
design, including redesign of the business flow, streamlining the information flow, and design
of system architecture.
•
Physical design, including specifications of hardware, software, and communication facilities,
network design and wiring, and system security.
•
Implementation, including establishment of databases, data entry, and application software
development.
•
Operation, including merging the system into the normal business environment, data
updating, and system maintenance.
•
Post-implementation evaluation.
There are many different ways to phase the life cycle of an information system development.
However, they all can be simplified into three main stages: analysis, design, and implementation. These
three are bracketed (preceded and succeeded) by project initiation and project review. Additionally, all
these activities include the administrative tasks of planning, scheduling, and control.
3.1 Preliminary Analysis
Project initiation is carried out through a preliminary analysis. The preliminary analysis forms the first
and perhaps the most critical phase of the project development. In many cases, it becomes the entire
project itself since the information developed in this phase may indicate that no further work is
necessary, feasible, or desirable. In all cases, the results of the analysis phase determine if there is a
problem to be addressed; if there is a feasible solution to the problem; and if developing a solution to the
problem is cost-beneficial to the user and to the government agency as a whole.
The primary objective of the preliminary analysis is to decide whether or not a project should be
initiated to develop an e-government system requested by the users. Even at this early stage, the results of
the preliminary study will determine if there are sufficient anticipated benefits to justify continuing the project
into the next development phase.
A detailed preliminary analysis would address the following:
•
The current problems to be eliminated from the user environment and the exploitation of
current and future business opportunities.
•
The definition of the system mission and the translation of user business needs into a clear
set of project business objectives.
•
The setting of delimiters for the area of study of the project.
•
The identification of possible project constraints and risks.
•
The initial search for potential system implementation solutions.
•
Cost-benefit analysis.
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While identifying the current problems, much attention usually is given to how information technology
could be used to improve the effectiveness, efficiency, productivity, and quality of government agencies.
However, this is far from enough. Strong emphasis should be placed on examining the current business
processes of the organization to see if they are fit for purpose. The new e-government system should be
integrated into the existing business environment only if justified by the demonstrable efficiency of the
current business processes. Otherwise, redesigning the business processes must be considered.
The problems and/or opportunities identified or described by the users should be prioritized by order
of importance. This ranking is necessary to differentiate between those issues that are very important
and those that, although useful to address, are not essential to the project at hand. One possible way of
categorizing them would be as follows:
1. Essential. Requirements without which the user could not properly operate in the business
environment.
2. Adaptable. Requirements that, if necessary, can be partly modified to allow alternative
modes of operation.
3. Nice to have. Requirements that the user is willing to document but that can be excluded from
the system list of requirements, if they prove to be too costly to satisfy.
Project objectives should address the problems and/or opportunities that were identified during the
analysis of the current situation. The project objectives should be stated in a concise, measurable, and
attainable format.
As a matter of fact, a formal feasibility study should be conducted during this phase. Through the study,
an agreement on the scope of the project should be obtained between the management of the user
organization and the project team. Included with the report are justifications for the project, clearly defined
boundaries for the development, and a work plan outline indicating how the development should be
completed.
3.2 Requirement Analysis
Requirement analysis attempts to discover what is desired and actually needed by the users; clarify
the products that will try to satisfy a complex set of desires; and to discover who should play a major part
in, the requirements process. Obviously, requirements analysis is crucial to the successful development
of an e-government system because if the system developers do not know what the users (i.e. businesses
or citizens) need, or do not communicate with the users adequately, the system functions and
performance cannot be correctly defined. Any e-government system, which fails to meet the real needs
of the end-users, will not last long.
Determining requirements begins with a thorough analysis of the current business flows and
organizational structures of relevance to the proposed system. Through data collection and by
interviewing the users of the system to be developed, the analysis aims to answer the questions specified
in the following paragraphs.
3.3 Activities of the Analysis Phase
The most important way to conduct a requirement analysis is to interview the users, in particular the
people essential to the business process and the end-users of the system. For different levels of egovernment systems, different levels of users need to be selected for interviewing. When interviewing
the users, the key issues are to learn all about the user’s business, understand the user’s terminology,
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and ask all the right questions. The logical sequence of the interview is
•
First, find out about the flow of business and information in the organization. Start with the
outputs: What is the information needed to run the business? How must the data flow among
agencies and individuals? Determine the frequency, timing, and accuracy.
•
Second, identify the inputs driven by the outputs: What information is required to produce
each of the outputs? What information is available, when, where? What new information
will have to be gathered?
The aim of requirement analysis is to document the existing user functions, processes, activities,
and data. The activities in the analysis phase are as follows: current function analysis; development of the
current functional model; current process and activity analysis; development of the current process model;
current data source and use analysis; current data analysis; and development of the current data model.
Following the analysis, the appropriate approach to meet the user requirements may be recommended,
usually selecting from: developing a customized system; implementing a vendor-supplied package with
or without modification; and re-engineering the existing computer system. The design of any new system
must be predicated upon an understanding of the old system. Even for a completely new system,
making full use of existing resources must be carefully considered.
The validation of the requirements analysis is important enough to warrant separate treatment. The
completed analytic documentation must be validated to ensure that all parties agree that the conditions
presented in the documentation accurately represent the environment, and that the documents generated
contain statements that are complete, accurate, unambiguous, and testable.
The requirements analysis should result in a Requirement Document (RD), which states the user’s
problems and demands and the general solutions required. The language should be oriented to the user’s
business, and avoid computer jargon. The RD is sometimes used as a Request for Proposal (RFP) when
the user tenders the project to outside contractors. However, a user written RD is usually inadequate for
estimating development because the user may be unaware of what a computer-based system can do, and
so the RD is often vague. A user may not even perceive his/her own needs correctly if they are not up-todate with computer and communication technologies. Other problems arise out of communication
difficulties. A non-technical person cannot be expected to learn computer language and jargon in order to
explain his/her requirements to the computer analyst. It is up to the project team to notice and solve any
problem related to this. The experiences of many system analysts have shown that it is worthwhile for the
project team to spend some time working with the user to help him/her to write a good requirement
document.
3.4 Users Participation
It is mandatory during this phase to obtain the active participation of users, including business,
citizens and government employees, and anyone else who may be necessary because they are
significant in the system. This is, beyond a shadow of a doubt, a very critical success factor. For instance,
the business needs and objectives of the project cannot be properly developed without the user’s firm
commitment to assist in the initial process to define them. This is the only way to ensure that the requested
system will precisely align with the business goals of their departments and those of the entire
organization. Hence, users must actively participate and articulate their own needs. In fact, this statement
remains true for all the deliverables that are produced during the preliminary analysis and requirement
analysis phases. This emphasis on user involvement should be seen as conducive to the success of the
project. The system that will be developed will be as effective in supporting the user’s functional areas as
the users are in participating in the development of the system’s requirements, especially during the
critical stages of the analysis process. By means of user-oriented development techniques, such as
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Methodologies of e-Government Systems Development
prototyping, more and more e-government systems will be developed successfully by a team of users and
systems analysts who work closely together during the entire project.
The most successful projects are often those placed under the formal responsibility of the users.
Although the system may be developed by computer and communication professionals, the ultimate
responsibility of the project lies in the hands of knowledgeable and capable user representatives who are
officially held accountable for the new system.
3.5 Users Training
It is important to familiarize the users who will directly participate in the project with the requirement
definition techniques that will be used. This will help in bridging the communication gap that might exist
between the users and the system developers. Courses should be designed specifically to help in
removing the cloud of mystery surrounding the development of an e-government system. In general,
these courses describe the system development process in simple terms that are easy to understand
from a user point of view. During these seminars, the specialized (and often esoteric) e-government system
concepts and vocabulary used by information system developers are also explained, along with a brief
description of the various graphical tools and techniques that are applied during the business process
and data modeling tasks. Given the investment that will be poured into the development of a large egovernment system, not to mention the fact that it is likely that such a system will last between 10 to 15
years, a one- to five-day course for users is a small price to pay for attempting to deliver a high-quality
system that aims to truly meet user needs.
3.6 System Design
The purpose of the system design is to define the internal architecture of the e-government system.
For a large, complex application, the design issues associated with the performance, usability, and
maintainability characteristics of the system are of paramount importance. Consequently, the physical data
and process models should be engineered in such a way as to offer as much flexibility as possible while
taking into account the physical constraints that might be imposed by the technology being selected to
implement the system. Any deviation from the original requirements in the functional process and data
models that might be necessary to accommodate specific system operational criteria should be properly
documented and thoroughly discussed with the users. The strategies for the testing of the system, data
conversion, end-user training, and installation of the system should also be carefully designed.
On the basis of user requirement analysis, the functions of the system to be developed can be
defined. While defining the functions, system developers must capture all relevant functions and
understand evident, hidden, and frill functions. Evident functions are those to be performed in a manner
that is as visible, or evident, to the users as possible. Hidden functions are to be as imperceptible to the
user as possible. Frill functions are those that the user would like, but not if they cost anything, either
directly or if they compromises other functions. Classifying the functions list into hidden and evident
functions helps to identify possibilities that may be overlooked. This is because classifying in this way
highlights functions essential to the system that might otherwise be taken for granted.
The definition of the functions should be produced collaboratively with the users by developing an
initial list of potential functions and by classifying each function as evident, hidden, or frill. Brainstorming
may assist to uncover unmentioned hidden functions that will augment the function list. In the process of
classifying these functions, look for functions with wording that implies some constraint on solutions and
transform the wording to become problem statements, rather than solution statements and, finally, create
a list of the frill functions.
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Methodologies of e-Government Systems Development
There are several issues which are also important and must be elaborated in a logical system design.
They are identifying the constraints and risks, defining preference, and limiting expectations of the system
being developed.
Identifying constraints and risks that exist in the system development is an important issue. The
business and technical constraints and risks pertain to those conditions that are considered outside the
direct influence or control of project team members. At the same time, however, they might have a direct
impact on the scope of the project, its schedule, and the proposed implementation solution alternatives.
Constraints or risks that might affect the project include the following: organizational stability in terms of
policies, functions and structures; government regulations; budget limitations; political considerations;
schedule considerations; legal considerations; environment considerations; operational limitations; data
availability; hardware/software/networking considerations; personnel considerations; technical limitations;
and risks associated with use of untested new technology. For the final design solution to be acceptable,
every constraint or risk must be satisfied. Therefore, a constraint or a risk must be defined in terms that will
enable participants to determine objectively whether or not it has been satisfied in the finished product.
Defining preference is another task in the system analysis phase. A preference is a desirable but
optional condition placed on an attribute. Any final design solution that satisfies every constraint is an
acceptable solution, but some acceptable solutions might be more preferable than others. Preferences
enable the designer to compare acceptable solutions and to choose the better ones. It is better to make
preferences measurable since preferences are used by designers to guide them in satisfying their clients.
Therefore, preferences would not be of much use unless each is defined in terms that will enable
designers to determine to what degree the preference has been satisfied.
Limiting expectations of the system to be developed is important as well. If the developer thinks of the
design process as a way of providing for all expectations and avoiding all disappointment, he/she will
never be successful. It is important to understand, define, communicate, and control the expectations of
everyone involved. In order to raise and document expectations and limitations, a list of specific
expectations from representative users should be generated first. System developers must work with the
list to understand and generalize each expectation. They must then negotiate to limit expectations to a
reasonable level, leaving open possibilities for future modifications of the system, but definitely ruling out
anything that cannot reasonably be expected. When setting a limit, the source of the limitation should be
documented, because today’s limitation may become tomorrow’s opportunity.
Logical system design identifies the logical relationships of essential elements internal and external
to the system, i.e., the business process flows that the system will support, and the information flows
that will be processed by the system. Business process flows represent the business model of the
organization, and information flows depict the data/information model of the organization. Business
models and data/information models are both technology-independent and address the system
architecture at the logic level. Logical system design will also identify the functions performed by the new
or improved system and specify what the new or improved system will do to support the business flow of
the organization.
The logical design should be a non-technical document accessible to system professionals and
users alike. Once the user-manager is confident that the new system will meet the organization’s needs
and approves the logical design, the physical design of the system can begin.
Physical design determines the system architecture at the physical level, which is technologydependent, and develops the system model. The physical design of an e-government system includes
the specifications for how the logical design will be implemented. This involves things such as
specifications of all manual and computerized procedures; system architecture and network topology;
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computer hardware and software selection; design of physical data files required; specifications of all
necessary programmes and/or procedures; and the system’s physical security. This process is a fairly
technical one and requires user participation, especially in detailing the manual data processing
procedures.
The completed physical system design should be documented at two levels. A design overview
should be written that includes descriptions of the system and application subsystems; inter-relationships
of the subsystems; system architecture; the procedures of operation or data capture; and the auditing
procedure. It should also include a description of its databases, a sample of all input/output documents
or formats, and the measures of system security. It should also detail the relationship and interface of the
present system to other e-government systems within the organization’s environment. This design
overview should be approved by the management of the government agency before the detailed
technical specifications are specified.
In addition to design overview and at the second level of documentation, there should be detailed
specifications for a data dictionary, files, databases, input/output documents, display screens,
programmes and procedures, a wiring system, and user training programmes.
3.7 System Implementation
The primary purpose of the implementation phase is to deliver a fully operational system to the users.
Based on the system design specifications that were produced during the previous phases, the software
programmes are coded, tested, and gradually integrated into a complete system. The manual and
administrative procedures of the system are finalized and tested in conjunction with the automated
portion of the system. The user and system documentation manuals are completed and the staff is
appropriately trained. The data in the old files are located into the new file/database structures of the
system. The proper hardware/software/networking equipment and facilities are installed at the user sites,
and the system and its supporting materials are transferred into the production environment. If necessary,
the system is fine-tuned during the first month following its installation in production.
The users must participate in the testing of the application software, programmes, procedures and
databases so as to better understand the system. A number of techniques can be used to ensure quality.
Special attention should be given to documentation. Training programmes for users at different levels and
materials related to the new system should be developed as part of the implementation process. These
should include the preparation of notices and seminars for conveying general information about the system;
class outlines and materials for providing detailed training in system concepts and procedures; on-thejob or in-service training programmes for those who would be assigned daily work with the new system.
An acceptance test is necessary before putting a new system into operation. All of the promised
functions and deliverables should be demonstrated in the acceptance test. The system is complete as a
whole project when:
•
The new system is set up and running smoothly.
•
Conversion or cutover from any older systems is complete. Cutover should be done in
stages if possible.
•
The end users are trained and comfortable with the new system.
•
A post project review is held and all items that can benefit future projects are documented.
•
The responsibility and method of ongoing maintenance is defined.
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There is always a need to change a system in order to improve it, add new features, or fix any
problems still left after the system acceptance or warranty is over. Most of the time, the user’s business will
change with time and so will his/her requirements. These changes or enhancements make system
maintenance indispensable.
Conversion should be a well-planned process in its own right, in which users should participate. Files
and documents must be created, forms printed, and new procedures instituted.
A preliminary version of the different types of system manuals required to use, operate, and maintain
the system in production should be developed. At the early stage of the implementation phase, these
manuals can be developed in a draft manner. However, they should contain enough information to
support the users and eventually the system operations staff during the user acceptance and production
acceptance testing cycle.
The system user’s guide should always be written in a language that is easy to understand from a
user’s point of view. Technical jargon should be avoided. Users do not need to know how the system works
internally but rather how to interface with its automated component properly and efficiently.
The system maintenance guide describes the high-level functions and facilities that are carried out by
the software application, primarily focusing on a technical perspective. It contains general programme
narratives and describes the important technical characteristics of the system (i.e., its internal and
external architecture). It is primarily aimed at supporting the maintenance team’s efforts. However, it does
not necessarily describe in detail the programme specifications. The detailed information associated with a
programme could be in a separate guide.
The system operations guide provides a description of the detailed documentation required by the
data/information center personnel to operate the system in production. Typically, the type of information
that should be described for each production job within a specific processing cycle (daily, weekly,
monthly, yearly) includes job preparation, job execution, and job output distribution.
A system-training package should be prepared during the implementation phase. The training
materials can be developed in a draft form at the early stage of this phase. The draft should contain
enough information to support the initial training of the user team participants who will conduct the user
acceptance tests. The detailed system training strategy should be reviewed in light of all the information
that has been produced so far on the new system. In addition, the draft system-training package should be
walked through to verify that it is accurate and meets the stated training objectives.
The final draft of the formal training materials should adequately prepare and train users and system
operations and maintenance personnel how to use, operate, and support the system in the most effective
manner, prior to its implementation in the production environment. The training materials could include
handouts, slides, overhead transparencies, and so forth. These materials should be designed in a topdown manner, describing the system from the very general down to the very specific. In some instances, it
will be necessary to tailor some specific components of the training package to suit the specific needs of
the target audience.
Once the system is in operation, a post-implementation evaluation should be conducted. The
purpose of doing so is to determine how well the system meets its design objectives. The overall
performance and level of operability of the entire system should be judged from the viewpoint of
response time of the online programmes; execution time of the batch programmes; execution time of
the software utility runs; security facilities; installed computer equipment; computer operating and job
control instructions; user/system documentation in general; and the effectiveness of the system
communication network, as well as any additional indicators related to the original objectives. The
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Methodologies of e-Government Systems Development
evaluation may be performed by the project team or by internal systems auditors.
System post-implementation optimization can be performed based on the outcomes of the evaluation.
The specific areas where the original system requirements have not been fully attained should be
identified. The project team should also determine the causes of the problems and apply the appropriate
remedies. A complete set of system documents and the production system optimization should also be
included in the optimization task.
The methodology of e-government system development introduced in this module is based on the
principles and practices of a system development life cycle. There are different types of e-government
systems. However, the main three stages remain the same, i.e., analysis, design, and implementation.
Some of the phases and activities within the stages will be different depending on which type of egovernment system development is being carried out.
4.
Project Management
Planning, organizing, staffing, and controlling are the four key activities that make
programmes/projects successful.
Successful projects must have a clear beginning - a written plan that defines what will be delivered,
and how it will be accomplished. Measurable acceptance criteria should be documented so that they can be
used as a reference to establish that the promises have been met.
During development, close monitoring should be conducted to ensure that the project proceeds as
planned. The staff of the project team should have adequate experience to produce the product. The right
documents for the right people must be produced even in a tight situation, because management should
realize that documentation is one of the most important aspects of the project. Frequent reviews of the
project are necessary to measure progress against the schedule. When a problem occurs, it should be
noticed at once, and solved if possible; otherwise estimates and schedules should be redrawn, and
expectations should be reset as necessary.
In the end, the user’s satisfaction should be the primary concern of the project team. The product that
the team has delivered should be as promised. The project cost must be controlled so as to be
‘reasonably close’ to the estimates quoted. There should be no disagreement about acceptance. The
precise and detailed method that will be used to demonstrate the required functions of the product
should be approved by the users ahead of time.
An effective team organization, for a small or medium e-government system project, consists of
project manager, project leader, system analysts, and software programmers.
Each person on the team has a specific job description. The system analysts are responsible for
system analysis and logical design of the system. The physical design and implementation of the system
are jointly accomplished by system analysts and programmers. The programmers programme applications
software and conduct database design. The project leader provides close supervision by leading
technical activities and solving any system problems. The major responsibility of the project leader is to
ensure product quality. The project manager, to whom the project leader reports, is there to provide
management leadership and handle all communications between the project team and the outside. The
responsibilities of the project manager include the overall management of the project’s resources and the
successful implementation of the project’s objectives, outputs and activities.
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Methodologies of e-Government Systems Development
For a larger project, system analysts and programmers can be divided into several teams. Through
this approach individual teams can treat their portion of the project as a subsystem, or stand-alone project.
The terms of reference of team leaders need to be clearly defined and all team leaders should report to, and
be supervised by, the project leader.
Project managers are key to ensure the success of any e-government system project. They are
responsible for the successful design, implementation, integration, operation, and maintenance of the
systems. The most difficult part in e-government system development is to make sure that the project
manager, as the system integrator, understands exactly what the users want and to ensure that they do not
speak a different language from the users. In general, users are looking for more than technical expertise
from their systems integrators. Project managers should have a good understanding of the core
businesses of e-government system users. A purely technical solution can only minimally benefit users. A
project manager should have the following attributes:
1. Must possess a thorough knowledge of the vertical organization of the industry and
preferably should have held an executive post in that line.
2. Should be able to work with line managers in the business to define requirements and carry
out the actual implementation of e-government systems.
3. Should have an in-depth understanding of the relevant technical concepts and the ability to
translate between business requirements and requirements for the technical development of
systems.
4. Must be a good communicator who works well with teams and has good negotiating skills.
5. Must be a detail-oriented person who can chart out actual time lines for the completion of a
given project, track milestones and be the single point of reference, as the systems
integrator, for users.
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Critical Success Factors of e-Government
1.
Introduction
Although many governments have attached great importance to the development of e-government and
have invested considerable resources, the rate of success has not been high. Over the past twenty years or
more, the rate of success for the implementation of information systems, whether in business or in
government, has been between 30 – 40 percent. According to the Standish Group, in the year 2000 only
28 percent of information technology projects introduced in businesses and government in the United
States of America, succeeded, 23 percent were withdrawn and the remaining projects were deemed to be
not entirely successful. Three indices formed the basis for these assessments: budget, functions, and the
extent to which they were on time.
Hence, Government leaders need to be aware that it is not easy to make an e-government project
succeed. The experience and lessons from both business and government circles in many countries show
that the following critical success factors are important and must be taken into consideration when an egovernment project is going to be launched. The factors of success are grouped under three headings:
Leadership and Commitment of Top Management; Effective User Relationships; and Institutional
Arrangements.
2.
Leadership and Commitment of Top Management
The top management’s awareness of and commitment to the role that e-government systems play is
crucial to effective systems development.
They should be aware of how the new systems can provide support to government decision-making,
policy development, administration and management. It is obvious that a commitment to the
development of e-government must also begin with the top management of the government. Research
shows that overall progress in e-government is not closely correlated with social, political or economic
characteristics. Rather, leadership, political will, commitment to deliverables and accountability for
results show greater correlation and are the factors that appear to have the greatest influence on
progress.
Leadership and commitment from top management is essential because:
•
Governments need leadership in order to articulate a vision of e-government; a vision
that identifies the purpose of the development of e-government and sets out the longterm objectives and short- or medium-term goals.
•
Governments need leadership to formulate and establish political will. Obviously,
without strong political will the resources needed by e-government projects will not
materialize and obstacles in e-government development cannot be overcome.
•
Governments need leadership to create an enabling environment for the development
Critical Success Factors of e-Government
of e-government, including putting into place the right administrative and
management mechanisms for defining the objectives and goals, setting priorities,
defining the deliverables, and allocating the necessary resources, both human and
financial.
An important factor underpins the above three reasons for top management involvement in egovernment developments. The implementation of e-government requires strong political leadership
instead of technical leadership. This is because, rather than dealing with technical problems, the most
difficult issue in implementation is to overcome various social resistances and to coordinate the
conflicting interests between the diverse departments and agencies of the government.
The leadership and commitment of top management have a number of aspects that require further
scrutiny and explanation. First of all, top management’s awareness and appreciation of ICT for
development helps to articulate a vision of e-government. Various international and regional
conferences, workshops, and seminars are helpful in raising awareness and appreciation in this regard;
and attendance at them may be useful at key stages in the life of the development.
Secondly, top management needs to be convinced by the opportunities that e-government and ICT
represent for a country’s development, either because they can help find solutions to the urgent needs
of the country in terms of its economic and social development, or because they can provide more
effective support to the conduct of its internal or external affairs.
Top management will need to be sure that there will be substantive and observable benefits from
e-government projects if it is to be confident in formulating and establishing the necessary political will.
In addition, it may help the top management of a government to continue to exert political will if the
chief information officer can frequently report to the highest levels of the government to keep them
informed and up to date on the progress, experiences, achievements, and advances of information
technology and e-government worldwide.
In particular, the government chief information officer should enter into dialogue with the highest
level of government in order to understand the issues with which the top management team is most
concerned and to explore the possible solutions that could be provided by modern information
technology and e-government. This should help the top team identify opportunities and maintain
determination.
Early political leadership builds momentum. In order to keep the momentum going and to make the
leadership sustainable, projects for e-government should be selected and decided by the highest level of
government, instead of by the chief information officer alone.
E-government projects must address and provide solutions to the urgent issues faced by the
country in its economic and social development, as seen through the eyes of the highest level of
government. In other words, these projects should be demand-driven instead of technology-driven. The
projects should have the potential for evident economic or social benefit, and be able to deliver costbenefit effectiveness. In other words, it will be better if the projects do not only ‘burn money’ but also
show a return on investment in one form or another. The projects should not be too big and should be
implemented within an acceptable timeframe.
Overtly successful implementation of e-government projects is another key to keeping the political
leadership active and sustainable. To achieve this, the right administrative mechanism for egovernment development should be established; standardization and normalization must be carried out
in the process of e-government development; and the necessary resources, either human or financial,
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Critical Success Factors of e-Government
must be in place. A continuous dialogue with the highest level of the government is the key to success
as it enables the project team to understand their needs and their concerns.
It is worth repeating that effective communication between the chief information officer and top
management, as well as participation by senior management in information management decisions, is
essential to the success of e-government particularly in securing top management’s support for the
necessary actions and resources. It is the information manager’s job, to promote this involvement, not top
management’s. In general, surprisingly few information managers make a concerted effort to get time with
senior management in order to help them understand the issues, trends, and problems of e-government
development and few information managers report directly to the top. A good place to start is with
education. This is achieved by helping members of the top management team and others to develop
knowledge and understanding, not of the technical aspects of computers, but of the impact of
information management and e-government on the business of the organization. This will include an
explanation of business and management issues and the key decisions to be made in the information
management arena. It will also include the issues, trends, and impact of technological forecasting on the
business of the organization.
A year plan is an important medium of communications with senior management. Preparation of a
year plan in support of the annual e-government budget could help to win top management’s support for
needed resources. The budget review process could be used as a means of communicating to senior
executives current technological issues and trends together with their likely impact on the organization.
The year plan also shows how information management objectives are tied to the organization objectives
and it links major accomplishments with those objectives in the year just past, as well as identifying plans
to meet objectives in the year to come. The year plan should not only be distributed to the chief
executive officers but also to the executive directors of all user divisions. Although a simple device, it can
be an effective communication tool with top and line managements. More importantly, it can help gain
senior management support for needed resources.
One of the persistent problems that information managers have always had is the inability of top
management to evaluate and measure the contribution of e-government to the organization. Although
computers and systems services benefit the users of those services, it is not always easy to demonstrate
the productivity and the project contribution which different information management functions make
possible for an organization. Therefore, performance reporting is required if e-government is to gain top
management support.
The strategy of performance reporting is concerned with measuring the contribution of e-government
systems to the organization. Measuring improved productivity or effectiveness has not always been easy
because there are no industry standards against which it can be measured. Thus, there is no easy way for
management to evaluate the true contribution of e-government to the organization. Evaluation is made
even more difficult because few top managers understand enough about computerization and
information systems business to make intelligent judgments about its performance. Hence, the chief
information officer is left with the task of finding ways to demonstrate the value of their contribution and
performance, if for no other reason than to get approval for needed resources. In this regard, a cost-benefit
analysis of e-government systems is a good tool to employ.
There is another performance management strategy which can be useful to information managers
and top management as a vehicle for measuring the performance of e-government systems in an
organization. It is the establishment of an information management performance reporting and evaluation
system. Information managers usually manage six major areas: planning, projects, data/information,
human resources, technology, and money. Through the use of a reporting and evaluation system, the
efficiency and effectiveness of the six areas can be measured and reported. On the efficiency side, it
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Critical Success Factors of e-Government
measures how resources are utilized (equipment and people). On the effectiveness side, it measures user
service levels and systems project performance (user concerns). Finally, it measures overall financial
performance.
Chief information officers cannot afford to neglect the information needs of government’s senior
management. Efforts to provide information services to senior management can result in a far greater
investment in the performance of the organization and higher rewards for information management,
relative to those resources allocated to serve lower-level managers and clerical staff.
3.
Effective User Relationship
Another critical factor to the success of any e-government systems lies in the effectiveness of its user
relations. However, this is one of the most difficult challenges faced by information managers. Many
organizations do an excellent job in managing their technical resources but a dismal job in user relations.
The inadequacy in this area has, in fact, caused the fall of many information managers over the years.
The reasons are not simple. High demands and expectations, shortages of resources, the rapid pace of
technological growth, the long lead times needed for equipment planning and systems development,
constantly changing requirements, technical obsolescence, communications problems, and interpersonal
relationships - all of these are contributing factors. However, part of the answer must lie in a better
understanding by information mangers and users of each other’s business problems and opportunities.
Information managers need to understand the user’s business needs; user managers need to understand
more about data processing and information systems work. Learning more about each other requires
greater involvement in each other’s business. The successful marriage of business and technology
requires participatory management by information managers and user managers. In addition, it is important
to understand that attitude, sensitivity, and effective communication, rather than technical competence, is
what impresses users.
E-government systems serve various users in the different levels of a government organization, as
well as businesses and citizens. Discovering user characteristics is important. There are passive users
who will almost never ask for assistance from information systems regardless of the opportunities for
improved management effectiveness or operational efficiency that can be achieved. There are overly active
users who want information systems to produce solutions even when such applications cannot be costjustified. This kind of user tends not to consider the costs versus the benefits when requesting such
service. There are semi-informed users who consider themselves systems-wise and tend to insist on
their right to make decisions about information services and equipment. This is a frequent cause of the
serious difficulties that have given e-government systems a bad reputation in some organizations.
A user-service strategy should be developed taking into account that users can range from top
management to a middle-level director to a junior clerk, and from internal to external of the government.
Often, information professionals spend most of their time serving junior level people, neglecting the needs
of top and middle-level management. In fact, users who contribute most to the organization’s business
should receive more services from e-government systems; and users who are receiving high-quality
services from the system should be aware of it. Of course, a user-service strategy will be closely
associated with the development of a long-term plan for future information utilization at the organization,
division, and functional levels of management.
A formal user-satisfaction survey can be conducted to monitor user satisfaction with e-government
systems services. The survey can be carried out by the e-government development branch itself,
although this approach might inhibit frank and candid responses. As an alternative, the management of
the organization can initiate the survey through either some other function (e.g. auditing) or the
appointment of an ad hoc committee. Another option is for the survey to be conducted by an outside
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Critical Success Factors of e-Government
consultant or consulting firm. The value of the latter approach is that it assures objectivity and, in some
cases, allows for outside comparisons. Obviously, a positive report validates user satisfaction ratings and
provides meaningful feedback to top management.
The questions a survey could address include: overall evaluation; accuracy; timeliness; ease of use;
responsiveness to requests for change in functions (outputs, etc.); the quality of support provided by egovernment systems (e.g. answers to questions, user assistance); integration with other applications;
average number of questions for each application; number of responses; and so forth.
User involvement in e-government system development should cover the entire life cycle of the
project, from getting started and strategic planning, through to system development and the information
management activity of the users.
It is frequently a strategic error to attempt a major improvement in the utilization of e-government
systems resources when the potential user has had little experience with modern technology. Such users
are ill prepared to cope with a massive infusion of new technology. Even if information systems specialists
see a very favourable cost-benefit ratio for a big investment in information technology, a cautious
strategy may be warranted for several reasons: a big proposal may frighten management in the user
division; the user may not be prepared to assimilate a major change in business processes; and the user’s
lack of knowledge of systems and technology could result in communication difficulties and
misunderstandings. In such cases, the e-government manager should take a ‘gradual advance’ strategy one that demonstrates the costs and benefits of the proposed project, starting by providing simple, low-cost,
rapid response to users.
The involvement of users in their own projects has been a demonstrable success strategy for many
years. This joint system development strategy includes the involvement of users in the following four
facets of system projects: planning, project team organization, system development, and post-evaluation.
The planning phase deals with business system planning; that is, determination of needs and
identification of e-government projects that will solve user’s business problems. This phase would be
more accurately described as system involvement with the users, rather than the other way around.
High-level user representatives with a thorough grounding in their business should be assigned full
time to every major system project for the duration of the project. This should be a matter of an
organization’s policy that is endorsed and supported by top management. The user’s representatives on the
project are responsible for ensuring that the system delivered is, in fact, what is wanted and needed. This
means they are responsible for defining the functional requirements of the system, not the technical
development.
The user should be committed throughout the project. User management should also be involved in
periodic project reviews and approval processes. The user’s representatives on the project look out for
the user’s interests by checking that system specifications accurately match needs. System development
must not simply be left to system professionals; it is the user’s responsibility as well.
When a project is completed, a post-evaluation should be conducted to determine whether the
project has met its goals, what benefits have been derived, what problems were encountered, what
lessons were learned, and what improvements should be made, etc. Once again, the users should
participate in the review process.
Users play a key role in e-government system development. Without active participation of the
users, any information system development will lose its direction. For instance, the business needs and
objectives of an information system cannot be properly developed without the user’s firm commitment to
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Critical Success Factors of e-Government
assist in the initial process of defining them. This is the only way to ensure that the requested system will
be precisely aligned with the business goals of their departments and of the entire government. Hence,
users must actively participate and articulate their own requirements. The system that is developed will be
as effective in supporting the user’s functional areas, as the users will be in participating in the
development of the system’s requirements, especially during the crucial stages of the system analysis
process. User’s participation is also crucial to developing a transition plan which reflects a realistic and
feasible measure of improvement that is gradually attainable within a reasonable time frame. Therefore,
users must be convinced that their input is not only invited, but also meaningful.
The advantages of user participation in purchasing, support and other development activities are
obvious as well. First of all, application development cycles can be shortened if users are involved in all
aspects of the effort, from initial requirement analysis to design and implementation. Secondly,
government organizations can reduce technology evaluation and testing time, and the potential for missing
critical bugs or glitches, if users can participate in widespread pilot or test programmes. Thirdly,
organizations can dramatically reduce support costs if users can help each other on routine operational
questions and take responsibility as specialists for more advanced questions. Finally, especially for
developing countries, end-user participation will favor the internalization of all the project outputs as well
as the sustainability of the institution building effort after project completion.
A simple strategy for improving user satisfaction is the establishment of a help desk or customer
service center by the e-government department. The responsibility of the service center is to keep itself
appraised of both production and output distribution problems so as to keep users informed when
downtime, reruns, or backlog problems will effect online operations, report deliveries, and the like. The
service center could give users a single telephone number to call about service problems, or the option of
simply registering complaints about services (e.g. late reports, etc.) through the Internet.
The benefits of a customer service center include higher user service levels through an increased
service orientation; quick response to and resolution of user problems; provision of a single interface for
users with service problems; and assistance to users so that they use the center more efficiently. However,
the center’s response to the customers must be rapid, accurate, and credible. If the center works in this
way, it will be likely to be welcomed by users as an aid to the resolution of service problems. Otherwise,
users will soon lose confidence in its efficacy.
It should also be noted that there may be some disadvantages that accompany user participation. For
example, a large, varied user community can have difficulty reaching a consensus on important
development issues. Generally speaking, users are not always aware of the latest technology and not
always able to make the best judgments about future directions. Accordingly, users can often fail to see
the broader and long-term picture, and are driven by what is needed at a particular moment and fail to
see the long-range effects of adopting a particular technology. Therefore, if user participation proceeds
without periodic appraisal, particularly in the development and implementation of a new system, the result
could be negative.
Another important reason for organizing successful user participation is managing the expectations of
the users involved. It can help resolve difficulties that may arise when employee suggestions or opinions
cannot be adopted or when they conflict with each other.
4.
Institutional Arrangements
Appropriate institutional arrangements are required for the smooth and effective development of egovernment, particularly for developing countries. Rational formulation and implementation of
government policies, integrated planning, development strategies, and standardization of e-government
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Critical Success Factors of e-Government
systems, cannot be carried out without the appropriate institutional arrangements within the government.
Centralized technical support, including methodologies of modern systems development, hardware and
software procurement and maintenance, education and training, etc., will undoubtedly economize a
great deal on scarce resources for the government and greatly benefit system development, operation, and
maintenance. Whatever these institutional arrangements may be, there should be a central focal agency.
When there is no existing appropriate central agency, a new institution must be created for this purpose.
Both the creation of new agencies and the adaptation of existing agencies have proved successful in
different countries.
At the national level, a ministerial level commission with appropriate representation on both the
legislative and executive branches needs to be organized. This commission must concentrate on the
formulation of government policies on e-government systems; the establishment of long-term goals and
strategies for stimulating e-government development in public administration; setting priorities; and the
allocation of information resources. The role of the committee or council is to concentrate on
•
Instructions for the formulation of government policies for information technology.
•
The establishment of long-term goals, strategies, priorities, and plans of the government for
e-government.
•
The allocation of government resources for e-government systems and establishment of
realistic funding limits.
•
The coordination, interpretation and resolution of conflicting interests, needs, and
expectations of the ministries and agencies of the government.
•
The review of long-term and annual plans, as well as evaluation of important investment
proposals and approval of key e-government system projects on a prioritized basis
consistent with the available resources and the needs of the government.
•
Other important issues that need to be addressed by the Committee.
One of the most important, but often overlooked, benefits of such a commission is its use as a vehicle
for improving communications between government decision-makers and information officers. For instance,
minutes of meetings should be circulated to the members of cabinet as well as to the members of the
commission.
A central focal agency, which has principal responsibility for developing e-government systems in
the country, should be of high-level and headed by a top-ranking official. In many cases this official
should be of cabinet or ministerial rank. This confirms the importance of the agency’s mission and
strengthens its position in negotiating matters of policy or coordination with the other ministries and
departments.
This central focal agency, if established, could not only be an information technology policy initiation
body, but also an e-government system development and management center. In some developing
countries, it could also be a technical support center, at least for the use of information technology in the
public sector. Functions of the agency are mainly:
•
To initiate, develop, and ensure the execution of government policies for e-government
development.
•
To work out a long-term strategic plan and the annual development plans of egovernment.
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Critical Success Factors of e-Government
•
To administer, manage and coordinate the development projects regarding e-government
systems in the government.
•
To administer, manage and coordinate data/information resources as a national information
center.
•
To promote the application of methodologies and the development of standardization of egovernment systems.
•
To provide technical assistance and support services to government agencies in their
information system development, operation, and maintenance.
•
To organize and conduct various training programmes and to stimulate the popularization
of information technology in the public sector.
This agency will play a leading role in the computerization and e-government systems development
of a country. Therefore, it should be equipped with advanced IT facilities and be staffed by well educated,
highly trained, and experienced personnel.
In the practice of many developing countries, it is often found that it is easier to create a central
focal agency than it is to maintain and keep it going. The problems are generally two-fold: on the one
hand, the government needs to understand that it takes time for such an agency to get on right track and
that it is not an easy job to fulfill its functions; on the other hand, searching for a qualified head of the central
agency is critically important. The head of agency should not only have knowledge of modern information
technology but also, more importantly, the management capabilities and the political skills to deal with
various aspects of government. However, as long as the central focal agency delivers services of direct
value to e-government system development, there should be no problem in justifying its existence.
Unfortunately, if this is not the case, then the agency runs the risk of being dismantled quite rapidly. During
that time, government will only focus on the cost of supporting the functioning of the central agency set
against the benefits generated in return.
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Funding of e-Government
1.
Introduction
Most IT systems become obsolete in three to five years. Hence, continuous funding for IT should
be made available in the government sector in order to keep the systems up to date and moving forward.
Funding mechanisms should be planned out effectively to make sure that all the infrastructure
requirements are met through the project cycle.
2.
Public-Private Partnership
For the long-term success of any e-government project, it is crucial that sustainable relationships
are developed across the public, private, and other sectors. Links with ICT companies and central or
local government agencies are important for the development of technical infrastructure, equipment,
and services. Effective relationships with other associate organizations for the distribution of
government services are also key to success. There is no doubt that, without proper funding
mechanisms, e-government projects cannot advance.
E-government projects can be marketable and attractive to organizations in the private as well as
the public sector. In fact, their development might benefit considerably from partnerships between the
public and private sectors. Although direct funding from the government may be fundamental for certain
projects, or at certain times in the project lifecycle, it is important to raise awareness in both the public
and private sectors and to explore possibilities of funding from other sources.
However, direct investment by government may be inevitable where: the e-government initiative is
knowingly non-profitable; returns are going to take a long time to arrive; or, returns will always be less
than the investment required.
Whatever the particular circumstance, there are at least two types of benefit from partnerships.
Firstly, the investment of resources and expertise from other enterprises can help projects improve their
productivity, while the investors themselves will benefit from and expand through the e-government
project. Secondly, the investment made by other enterprises in the public or private sectors gives them
an active role in e-government projects, and this is important for the healthy development of egovernment.
Any partnership will be strongly in favor of the development of a clear national strategy to enable
local government and enterprise to develop their e-government work. Both the benefits and risks of egovernment will be shared between the public and private members of the partnership. Moreover, such
partnerships are good for the development of government as well as for the enterprises themselves.
From the government side, with limited revenue, it is impossible to invest endlessly in e-government
projects and so the involvement of other organizations may be critical to success of these projects.
From the enterprise side, through an investment in e-government projects, enterprises will help develop
the market for their products thus creating opportunities to expand their business. This is a win-win
strategy for the continuous development of both government and enterprise.
Funding of e-Government
Figure 1.1 The Government and Enterprise Partnership in e-Government Development
In this regard, an impressive achievement was made by the Motor Vehicle Department of the State
of Arizona of the United States (Figure 1.1). The drivers’ license management system of the State was
outsourced to IBM. IBM took full responsibility for the system, from system design and implementation
to operation and maintenance. The State Government had no input into the system in terms of the
financial aspect and the agreement was that IBM would charge 1 US dollar for each driver’s license
issued. After the system was established, a triple-win situation was achieved
•
The cost to the State Government for each driver’s license issued was reduced from 6.6
US dollars to 1.6 US dollars, - a five dollars saving. In addition, the efficiency and
productivity of license-issuing work was greatly improved.
•
IBM created an almost endless source of income for the company given that the demand
for driver’s licenses to be issued is likely to be on-going.
•
The waiting time to receive a new license was reduced from 45 minutes to 3 minutes
without extra charge to the client.
This typical example illustrates and confirms that:
•
It is not the case that every e-government project must be invested in only by government.
Instead, a public and private partnership, if it can be developed, can play a highly
significant role in e-government development.
•
Information systems development is not within the mandate or competence of government.
What government should do in e-government development is to concentrate on
streamlining their business processes. Development of the information system can be left
to qualified enterprises with the appropriate expertise.
As a matter of fact, a lot of effort has been made to find new ways to fund the development of egovernment and to make it sustainable. A number of models have emerged and they are described in
the following paragraphs.
3.
Government - Enterprise Partnership
The government – enterprise partnership is a win-win model exemplified by the example from
Arizona. Under this model, the development of e-government is the responsibility of the enterprise, not
only for system design and implementation, but also for system maintenance and upgrading.
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Funding of e-Government
Government, remains the owner of the e-government system, but does not invest in any of the activities.
The investment of the enterprise can be covered by the processing fees of government business,
license fees, consultancy services, or any combination of these. As the government is the owner of the
system it has complete authority over it and so can ensure the system’s vision and its compliance with
legal requirements. The portal of the Government of Tennessee State is another example of this model
since the National Information Consortium in the United States designed and maintains it.
4.
Outsourcing
With this model, government invests directly in an e-government project, but system design,
implementation and/or maintenance are outsourced to associated enterprises. The government owns
the system and has complete control of the project. The government focuses on its business functions
and it is not required to maintain a team of technical professionals to support the operation and
maintenance of the e-government system. The system is designed by professionals and maintained by
technicians from the contracted enterprise; the quality of the system is ensured and the risk of project
failure is reduced.
With this model, even though government must still invest in its e-government projects, it obtains
savings by not keeping a team of professionals, and benefits from the quality of the services and from
the use of state -of -the -art technologies. Therefore, from a long-term perspective, outsourcing is a
good model.
5.
Divide the Work Between Government and Enterprise
With this model, government is responsible for the operation and management of its own internal
management information systems, while all the services to enterprises and citizens are implemented by
contracted enterprises. This model divides the work between the government and the enterprise, i.e.,
the government is in charge of ‘the internal part’ and the enterprise is in charge of ‘the external part’. For
the external part, government will neither invest, nor participate in the development, operation and
maintenance of the system. The contracted enterprise will invest and be responsible for: design of the
website and interface with users; development of indispensable software; and integration of
government information systems with the website and the external system. Businesses and citizens can
use the website to access government services and to accomplish business transactions.
The enterprise will receive a return on its investment through software license fees, system
maintenance charges and other service tolls. The govWorks initiative in the United States developed this
model and successfully connected 62 federal and local governments to its website so as to provide
various government services to businesses and citizens.
This model minimizes a government’s investment and energy in the development of e-government
while businesses and citizens can still benefit from the availability of online services. However, a mature
set of internal management information systems within government is a prerequisite for applying this
model. In addition, under this model, the government may lose opportunities of transforming
government through the development of e-government because there will be no momentum to effect
changes.
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Funding of e-Government
6.
Issuance of Bonds
This model provides an effective way of raising funds for e-government development. In some
countries and regions, governments issue bonds of e-government to facilitate the construction of a
national or regional information infrastructure. This may apply especially to the development of data
communication networks where the purpose is to create a favorable and fundamental environment for
e-government development. These funds could be paid back from the service charges applied to the
infrastructure.
Of course, there is a risk with the adoption of this model. If the infrastructure is not adequately
used, or if the service charges prove insufficient, it will be impossible to provide returns from the bonds.
If this is the case, government will have to find some other resources from which to pay the bonds back,
and this model becomes a model of ‘deficit spending’, i.e., ‘eating one’s corn in the blade’. Deficit
spending may add an extra burden to the current government or its successor.
7.
Advertising
Advertisement is a very traditional tool for marketing and promotion. With a large user group and a
good reputation, government websites have become an ideal and attractive place for commercial
advertisements. Even though there is still debate on the appropriateness of, advertising on government
websites, it has become acceptable to the public. The income generated by advertisements not only
supports the operation and maintenance of e-government systems, but also reduces government’s
expenditure on e-government projects.
However, it is important that government should set up a strict policy on advertising on government
websites, in order to avoid abuse or overuse of government websites for commercial purposes. To
protect the reputation of a government, some countries have established laws and regulations which
restrict advertising texts that misguide users. In addition, laws and regulations that prevent pornography
advertisements from appearing on government websites may also restrict advertisements for cigarettes
or alcohol.
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Funding of e-Government
Table 1. Examples of Public/Private Cooperation Initiatives related to Public Key
Infrastructure and Digital Signature1
COUNTRY PROJECT
DESCRIPTION
EU
Italy
AIPA (Authority for IT in
In support of an effective spread of electronic signatures, a
the Public Administration), “Working Group for the Certification Authorities (CAs)’
Banca d’Italia, Italian
Interoperability” was established by AIPA to understand if and
how interoperability among CA’s could be established. The
WG has produced the ‘Interoperability Guidelines’ as the
result of the definition and operational verification of a set of
technology independent interoperability rules. The definition
approach has been based on operational and practical
solutions to the identified problems, on the market availability
of the tools needed to realize them, on simplicity and
applicability to all CA’s. Consistency with on-going
standardization processes in the field of electronic signatures
has also been taken into account.
UK
Barclays Endorse
Smart card digital signature service, launched in June 1998.
The Government was first to make use of this service
enabling the newly self-employed to register their tax status
across Internet. Service is open to all, neither the acceptor
nor the cardholder need to be existing customers of Barclays
Bank. Different levels of security and liability are provided.
Looking for new commercial opportunities within the private
sector as well as continuing to support Government’s
applications in the public sector.
UK
Vodafone UK,
Government Department of Trade &
Industry, Radio
Communications Agency
(RA), Smart Trust
Start of a technology trial on July 2001. 50 staff complete and
sign travel or subsistence forms on the Internet and sign the
complete form by using their mobile handset. A hash of the
form and completed information is sent to the user via SMS,
who signs this information by entering a signature PIN on his
mobile. Project is a proof of concept, focusing on technology.
Norway
Telenor and Ergo Group
(previously Posten SDS)
Have built a CA that provides services to the government.
1
Source: Centeno C. 2002 “Securing Internet Payment – The Potential of Public Key Cryptography,
Public Key Infrastructure and Digital Signatures”, Institute of Prospective Technological Studies.
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Funding of e-Government
Sweden
Swedish Post and Telia
Finland,
EEPOCH (eEurope SC)
France,
Germany,
Irland,
Israel, Italy,
& Spain
Provide certificate for internal government services. Contract
negotiations undergoing for banks to issue citizen certificates.
Multi-application card with EID, digital signature and financial
applications (timing: under definition in the eEurope Smart
Card initiative)
Outside Europe
Japan
Co-operation platform
Pilot planned for a contact-less multi-application smart card
based cyberspace passport, an electronic ID to check the
cardholders’ citizenship, issued by the government on request
when people want to receive e-government services in the
cyberspace. May also record services that the holder receives
at his request (public and private applications) and could also
support electronic signature (PKI). 1 - 3 million cards were
planned by the end of 2001, 10-50 million people were
expected to have cards from Aug 2003.
Malaysia
Co-operation smart card
platform
A government multi-purpose card (24 July 2001). The GMPC,
the Government Multi-Purpose Card will replace the
Malaysian national identity card and driving license. Will also
contain passport information, national health application and
non-government applications such as e-purse, ATM cash
withdrawal application and digital signature application based
on the PKI. 600,000 cards are planned by end of 2001, rising
to 19 million by the end of 2008.
More information about Public Key Infrastructure and digital signature can be found in the module
‘Authentication and Digital Signature’ (Part 2 Module No. 2). Also, Part 2, Module 4 details the
importance of a government portal as a key feature of e-government. Funding is a key issue to the
long-term sustainability of a portal. While many funding models exist, none provide the perfect solution.
Individual agencies can jointly fund a portal. However, because a portal involves organizations
throughout the government, a central fund for such efforts is preferred. To ensure that a portal is self
sufficient, funding options include the resale of data, the sale of advertising space on the site, or
subscription or transaction/convenience fees.
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