Strategic Impact of e-Government
             on Economy and Society
                                            Part two
...
Transformation
                                of Administration
                               into e-Government




(c) ...
Bothering question



        Why e-business develops much faster
               than e-government?




(c) W. Cellary 200...
Just an example
                               of e-business in Poland




(c) W. Cellary 2009, slide 4
Allegro marketplace
             Number of Polish citizens: 38.5 million
          Number of Polish Internet users: 13.5 m...
How many citizens are
                               transacting electronically
                                 with admi...
Similarities and differences

                    business                             administration
                    ...
Today administration


                  19th century               21st century
                  organization           ...
Organization
                               of today administration
                                Organization of today...
Consequences

                 A human clerk combines two functions:
                         document archiving and deci...
Information rule
                     „A stranger” will know as much, as the owner of
                      information i...
Advantages
                                of electronic information
                                 (electronic document...
Low cost

                   A 200 GB disk costs 50 €
                   Such a disk is able to store 100 million
      ...
Liberation from possessing
                                Under condition that the Internet
                             ...
Low cost
                         of document maintenance
            From the fact that in Poland there is 2500 local go...
Cloud Computing
               Software as a Service – SaaS
            SaaS is a model of software development,
         ...
Advantages
                     of information concentration
                       in the „service centers” –
           ...
Social cost
                                of lack of e-government



                           Rough estimation
       ...
Income tax declaration
Without a computer                                  Via a computer
 A journey to the Tax Office to...
Cost comparison
                  of paper and electronic tax declaration

                                          Borde...
Total social losses

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

    ...
Process organization
                of administration
                as a consequence
         of document de-materializ...
Current
                          administration organization
    Currently, every office acts within a strictly limited ...
Process organization
                                 of administration

                                      Client drea...
Integrative websites (1)

  Integrative websites provide all services required to realize
   holistic business (organizat...
Integrative websites (2)

              Via an integrative website transactions should be
                     made:
    ...
Administration
                                as an e-services provider
            Administration offices should be see...
Administrative office
as a contributor to integrated e-services

            Necessary condition – internal integration
 ...
Administration
                                as an e-services provider
                               e-Government servi...
A clerk
                                in e-administration




(c) W. Cellary 2009, slide 30
An ideal clerk

                                       (for his/her boss)
                                     works all ...
A riddle

                                Who is an ideal clerk?

                               To facilitate let say
   ...
A modern
                                administration


         A modern administration is defined as such,
           ...
Computer

                          Computer is just an executor

                                Truly, it is about:


  ...
Requirements
                                  of procedure
                                algorithmization
 Precise reg...
Informal alliance against
                             procedure
                          algorithmization
              ...
New role of a clerk

               A clerk
                           liberated to a large extent from document archivi...
Then:


                                   administration
                                      in form of
               ...
Conclusions




(c) W. Cellary 2009, slide 39
Fundamental question
                                     once again



                            What
                 ...
Revolution

                                 Replacement of paper document flow
                                  by elec...
A vision
       Imagine that all the documents collected by all the
        administrative units are stored in just one d...
The role of the state


        Principle role of the state is
 to build a system of access authorization
          to ele...
Why?

                       Because only having such an
                                authorization system it is possi...
Client dream

                                Only then client dream may
                                        come true...
Novelty
                                    in e-government
                                  New division between:
      ...
Keys to success
                        Leadership, as political will is the main driver of
                             ...
Thank you


                                       Wojciech Cellary




(c) W. Cellary 2009, slide 48
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ICEGOV2009 - Tutorial 5 - part 2 - Strategic Impact of e-Governmenton Economy and Society

  1. 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. 2. Transformation of Administration into e-Government (c) W. Cellary 2009, slide 2
  3. 3. Bothering question Why e-business develops much faster than e-government? (c) W. Cellary 2009, slide 3
  4. 4. Just an example of e-business in Poland (c) W. Cellary 2009, slide 4
  5. 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. 6. How many citizens are transacting electronically with administration? Unfortunately, much less  (c) W. Cellary 2009, slide 6
  7. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 22. Process organization of administration as a consequence of document de-materialization (c) W. Cellary 2009, slide 22
  23. 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. 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. 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. 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. 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. 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. 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. 30. A clerk in e-administration (c) W. Cellary 2009, slide 30
  31. 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. 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. 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. 34. Computer Computer is just an executor Truly, it is about: algorithmization of procedures (c) W. Cellary 2009, slide 34
  35. 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. 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. 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. 38. Then: administration in form of e-government will be perceived by the society as: friendly and helpful (c) W. Cellary 2009, slide 38
  39. 39. Conclusions (c) W. Cellary 2009, slide 39
  40. 40. Fundamental question once again What e-government revolution is? (c) W. Cellary 2009, slide 40
  41. 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. 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. 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. 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. 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. 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. 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. 48. Thank you Wojciech Cellary (c) W. Cellary 2009, slide 48
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