ICEGOV2009 - Tutorial 5 - part 2 - Strategic Impact of e-Governmenton Economy and Society
1. Strategic Impact of e-Government
on Economy and Society
Part two
Wojciech Cellary
Department of Information Technology
The Poznan University of Economics
Mansfelda 4
60-854 Poznań, POLAND
e-mail: cellary@kti.ae.poznan.pl
www: http://www.kti.ae.poznan.pl/
(c) W. Cellary 2009, slide 1
2. Transformation
of Administration
into e-Government
(c) W. Cellary 2009, slide 2
3. Bothering question
Why e-business develops much faster
than e-government?
(c) W. Cellary 2009, slide 3
4. Just an example
of e-business in Poland
(c) W. Cellary 2009, slide 4
5. Allegro marketplace
Number of Polish citizens: 38.5 million
Number of Polish Internet users: 13.5 million
Number of Allegro users: 6 million
Dynamics in 2008: over 3 new accounts per minute !
Every 20 seconds a book is sold
Every 40 seconds a mobile phone is sold
Every 60 seconds a DVD movie is sold
Every 75 seconds a pair of shoes is sold
Every 2 minutes an MP3 player is sold
Every 4 minutes a T-shirt is sold
Every 5 minutes a digital camera is sold
Every 6 minutes silver earrings are sold
Every 23 minutes a TV set is sold
Every 30 minutes a car is sold
(c) W. Cellary 2009, slide 5
6. How many citizens are
transacting electronically
with administration?
Unfortunately, much less
(c) W. Cellary 2009, slide 6
7. Similarities and differences
business administration
technology is the same
audience is the same
(customers and citizens are the same people)
organization is different space for
development
business
organization administration
organization
(c) W. Cellary 2009, slide 7
8. Today administration
19th century 21st century
organization technology
Administration of 19th century organization
cannot benefit from 21st century technology
(c) W. Cellary 2009, slide 8
9. Organization
of today administration
Organization of today administration
is a consequence of features of the
paper as an information medium:
storing – binders, file cabinets
sending – surface mail
processing – clerks
Astronomical number of paper
documents stored by administration
(c) W. Cellary 2009, slide 9
10. Consequences
A human clerk combines two functions:
document archiving and decision making
Detailed specialization and division on small
organizational units
Every organizational unit has its precisely
determined range of responsibility, its rules
of proceeding, and its document forms
As a consequence, around such an
organizational unit walls rise up that block
access to information materialized on paper
(c) W. Cellary 2009, slide 10
11. Information rule
„A stranger” will know as much, as the owner of
information is willing to communicate
A person who is not the owner of some information,
often cannot even ask for it, because he/she ignores
existence of this information
Information owner, even if he/she is ready to
communicate some information, is often unable to
do so, because he/she does not know, who may need
this information
Information blockade
A brake of transformation:
organizational, economic, and democratic
(c) W. Cellary 2009, slide 11
12. Advantages
of electronic information
(electronic documents)
Low cost
Independence of geography
Immediate accessibility
A possibility of automatic
processing
(c) W. Cellary 2009, slide 12
13. Low cost
A 200 GB disk costs 50 €
Such a disk is able to store 100 million
of single sheet documents half filled with text
100 hundred million sheets put one on another
would be 10 kilometer high
and would cost about 1 million € !
(c) W. Cellary 2009, slide 13
14. Liberation from possessing
Under condition that the Internet
is available and reliable:
There is no need to „posses” electronic
documents to have access to information
contained in them
There is no need to „posses” servers,
databases, and application software to make
decisions basing on electronic documents
Transfer of access rights to documents,
instead of documents themselves
(c) W. Cellary 2009, slide 14
15. Low cost
of document maintenance
From the fact that in Poland there is 2500 local government
districts,
does not follow that Poland needs 2500 servers accompanied
by personal service,
and 2500 „unique” forms to collect the property tax
Concentration of data processing
For an office, data are important,
not the medium, or server
(c) W. Cellary 2009, slide 15
16. Cloud Computing
Software as a Service – SaaS
SaaS is a model of software development,
where an application is hosted
as a service provided to customers
across the Internet
Administrative
units
Liberation of administrative units from
problems related with hardware, operating
systems, databases and the application
software
Applications defined as metadata instead of
software
(c) W. Cellary 2009, slide 16
17. Advantages
of information concentration
in the „service centers” –
– in the clouds
Elimination of data redundancy
Data standardization
Better data protection
Improved data accessibility for authorized persons
Dissemination of advance software for data processing
Application of data mining and knowledge exploration
Intensification of inter-office cooperation
Unification of law application in the whole country
Improved transparency and more effective democratic
supervision of citizens over administration
(c) W. Cellary 2009, slide 17
18. Social cost
of lack of e-government
Rough estimation
of border social losses
following from collection
of income tax declarationon paper forms
(c) W. Cellary 2009, slide 18
19. Income tax declaration
Without a computer Via a computer
A journey to the Tax Office to
get paper tax forms – 30 minutes
Waiting for a clerk to get paper tax
forms – 10 minutes
Switching on a computer –
Come back home – 30 minutes 2 minutes
Fulfilling paper tax forms – Login to the website of the Tax
60 minutes Office – 1 minute
A journey to the Tax Office to Fulfilling electronic tax forms –
submit filled paper tax forms – 20 minutes
30 minutes
Data submission – 0 minutes
Waiting for a clerk for confirmation
– 20 minutes
Come back home – 30 minutes
TOTAL TIME: 23 MINUTES
TOTAL TIME: 3:50 HOURS
(c) W. Cellary 2009, slide 19
PS
20. Cost comparison
of paper and electronic tax declaration
Border losses
1. All the taxpayers personally submit paper tax declarations
2. All the taxpayers submit tax declarations via Internet
Difference in minutes – 187
Difference in hours – 3,12
Number of taxpayers – 22 million
Total number of working hours – 68,5 million
Total number of working months – 430 thousands
Mean salary in Poland – 716 €
Border losses – 308 million € per year
(c) W. Cellary 2009, slide 20
21. Total social losses
If we calculate in the same manner
costs of submission of all the paper documents
by all the citizens, and
all the enterprises
to all the offices
in all the cases
then the losses would appear ASTRONOMICAL !!!
(c) W. Cellary 2009, slide 21
22. Process organization
of administration
as a consequence
of document de-materialization
(c) W. Cellary 2009, slide 22
23. Current
administration organization
Currently, every office acts within a strictly limited scope.
Getting an application, first, a clerk checks, whether the case falls
in the scope of duties of the office:
if so, the clerk makes a decision,
if no, the clerk refuses considering the case.
A clerk does not ask:
why the applicant comes to the office with his/her application?
what will the applicant do with the received decision?
what will the applicant do, if the office refused to consider his/her
case?
In other words, the office and the clerk are just to execute
partial tasks, while the applicant has to manage the whole
complex organizational process.
It is the applicant who has to know which administrative
permissions are required, to which offices and in which order
he/she has to apply, which documents attach, and more broadly –
with which enterprises to cooperate to achieve his/her goal.
(c) W. Cellary 2009, slide 23
24. Process organization
of administration
Client dream
One place, where a client could receive all the services
necessary to realization of the whole his/her business
process, independently of who is a provider of partial
services.
From the client point of view, the following service
providers should be gathered in this one place:
providers of administrative services
- local administration,
- governmental administration,
providers of notarial services,
providers of judicial services,
providers of financial services, and
providers of all necessary business services.
(c) W. Cellary 2009, slide 24
25. Integrative websites (1)
Integrative websites provide all services required to realize
holistic business (organizational) processes.
An integrative website should provide:
information,
communication, and
transactions.
An integrative website should provide:
public information – commonly accessible to large public, and
individual information – about realization state of an individual
case; accessible only to authorized persons.
Via an integrative website, clients should communicate with
service providers, including clerks, using different
communication channels: text, voice and video.
(c) W. Cellary 2009, slide 25
26. Integrative websites (2)
Via an integrative website transactions should be
made:
submitting applications,
receiving confirmations,
receiving decisions.
Via an integrative website all payments should be
done
(c) W. Cellary 2009, slide 26
27. Administration
as an e-services provider
Administration offices should be seen as providers of
particular e-services.
Administration e-services should be seen as a necessary part
of holistic business processes of citizens and enterprises.
Administration e-services should be implemented in a way
permitting their integration.
Office computer systems have to be open for cooperation:
office computerization for internal purposes is not sufficient
office computer systems have to contribute to servicing holistic
integrated business processes of citizens and enterprises
however, management of integrated business processes should
be provided by business, not by administration
(c) W. Cellary 2009, slide 27
28. Administrative office
as a contributor to integrated e-services
Necessary condition – internal integration
Purpose – external integration:
business processes related with the whole respective
region: city, district, county, state, etc.
business processes comprising non-administrative units,
like law courts, notary offices, banks and enterprises.
(c) W. Cellary 2009, slide 28
29. Administration
as an e-services provider
e-Government services
has to be designed in a way
permitting businesses to provide:
integrated services Electronic
mixed services knowledge based
economy
augmented services
Administration as a provider of: this is the most
important
simple final services
„resources” for advanced services
(c) W. Cellary 2009, slide 29
30. A clerk
in e-administration
(c) W. Cellary 2009, slide 30
31. An ideal clerk
(for his/her boss)
works all the day without any interruption
works for free, or almost for free
is newer sick
does not have any holidays
is very efficient
makes no mistakes
is incorruptible
such a clerk is an ideal one also for the society
(c) W. Cellary 2009, slide 31
32. A riddle
Who is an ideal clerk?
To facilitate let say
that two answers are possible:
Computer Person
Good answer !!!
(c) W. Cellary 2009, slide 32
33. A modern
administration
A modern administration is defined as such,
where a person does not try to
ineffectively replace a computer
in routine works
(c) W. Cellary 2009, slide 33
34. Computer
Computer is just an executor
Truly, it is about:
algorithmization of procedures
(c) W. Cellary 2009, slide 34
35. Requirements
of procedure
algorithmization
Precise regulations on all the levels, from laws
enacted by the parliament up to office rules
Competent people (enterprises) able to:
first – transform procedures into algorithms
next – program those algorithms
next again – integrate those programs
Verification methods whether computer programs
servicing citizens and enterprises conform law
(c) W. Cellary 2009, slide 35
36. Informal alliance against
procedure
algorithmization
People working in “gray” zone
they are afraid of no exceptions that may be arrange with
a computer
Some clerks
they are afraid that a computer will deprive them from
superiority over applicants
Alliance of gray zone with some clerks
consists in „doing nothing”. It is enough to do nothing to
effectively prevent real modernization of administration
To modernize administration
this informal alliance has to be broken
(c) W. Cellary 2009, slide 36
37. New role of a clerk
A clerk
liberated to a large extent from document archiving, and
liberated to a large extent from routine activities due to
procedure algorithmization,
may focus on communication:
recognition of problems of citizens and enterprises,
advices to citizens and enterprises,
and decision making:
including profiling politics
(c) W. Cellary 2009, slide 37
38. Then:
administration
in form of
e-government
will be perceived by the society as:
friendly and helpful
(c) W. Cellary 2009, slide 38
40. Fundamental question
once again
What
e-government revolution is?
(c) W. Cellary 2009, slide 40
41. Revolution
Replacement of paper document flow
by electronic document flow is not a
revolution
Revolutionary is:
elimination of any document flow
Instead of document flow we need:
management system
of access rights to electronic documents
(c) W. Cellary 2009, slide 41
42. A vision
Imagine that all the documents collected by all the
administrative units are stored in just one database, though
distributed on hundreds computers interconnected by the
Internet
All those documents are available via Internet
always and from everywhere, but not for everybody
In each case considered by administration, an access to
selected documents, as well as right to create and to modify
documents have precisely determined citizens and
clerks only, who play precisely determined roles
(c) W. Cellary 2009, slide 42
43. The role of the state
Principle role of the state is
to build a system of access authorization
to electronic documents
collected by the whole administration
(c) W. Cellary 2009, slide 43
44. Why?
Because only having such an
authorization system it is possible to build
branch systems that are – from the
beginning – able to cooperate
Because only then process organization
of administration is possible
Because only then it is possible to open
a market of thousands of applications
facilitating life of administration clients, and
to create knowledge-base job positions for
young generations
(c) W. Cellary 2009, slide 44
45. Client dream
Only then client dream may
come true:
Solve the whole problem
of arbitrarily complex character
in one window via the Internet
(c) W. Cellary 2009, slide 45
46. Novelty
in e-government
New division between:
“central” and “local”
single multiple
Central access point to services client satisfaction
Central (more central) data
processing
cost reduction
Local decision making democracy reinforcement
(c) W. Cellary 2009, slide 46
47. Keys to success
Leadership, as political will is the main driver of
administration transformation to e-administration
Priority of e-administration among other social and
economical goals
Agreement of more or less independent units for
common solutions
Cooperation between administration, business,
and academia („triple helix”)
Computer literacy that has to be upgraded and
spread
Infrastructure of telecommunication that has to be
developed
(c) W. Cellary 2009, slide 47
48. Thank you
Wojciech Cellary
(c) W. Cellary 2009, slide 48