E-Government Interoperability Infrastructure in Hong Kong

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Organization: OASIS /
Location: Open Standards for Business and Government Forum, Goacher Auditorium Wesley College, 40 Coode Street, South Perth, Australia /
Time: 1 PM to 5 PM /
Event Date: Jan 23, 2009

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E-Government Interoperability Infrastructure in Hong Kong

  1. 1. E-Government InteroperabilityInfrastructure in Hong Kong Thomas Lee Project Manager Center for E-Commerce Infrastructure Development The University of Hong Kong
  2. 2. AgendaBackground of Hong KongDigital 21 Strategy and E-Government InteroperabilityFrameworkGovernment’s Support in Technology InnovationCase Study: G2B and B2B E-Commerce InfrastructureConclusions
  3. 3. Facts about Hong KongSpecial administrative region of China Administered by her own government under “one-country-two- systems” policy7M of population within 1,104km2 of area 6,459 people per km2Core industries: Finance Trade Logistics / Transportation Tourism98% of companies (~300,000) are small mediumenterprises (SMEs) Khun Flo @ Flickr
  4. 4. Pinnacles Desert in Australia
  5. 5. HK as Gateway of China, still?HK economy relies on re-export trade / transportationMainland China is opening up trade very aggressively Opened three direct links between China and Taiwan (postal, transportation, trade) Established world-class transportation infrastructureCritical factors to maintain HK’s role Proven legal, financial, business, transportation systems… HK demands a leading information infrastructure (e-trade)
  6. 6. Digital 21 StrategySet out the vision of developing HK to be a leadingdigital city First published in 1998 by HKSARG, updated in 2001, 2004, 20082008 edition: Facilitating a digital economy Promoting advanced technology and innovation Developing HK as a hub for technological cooperation and trade Enabling the next generation of public services Building an inclusive, knowledge-based society
  7. 7. Some Action Items of 2008 Digital 21Position HK as a regional test-bedand launching pad of innovativetechnologies…Collaborate with different sectors todevelop industry specific datastandards…The focus of the e-governmentprogramme is a citizen-centricmode of service delivery…Increased efforts will be made tointegrate services acrossgovernment bureaux, departments,agencies…
  8. 8. E-Business InteroperabilitySeamless integration of heterogeneous systems across organizations Technology interoperability: ability to exchange data across different system platforms Information interoperability: compatibility on representations and semantics of information used by different organizations Process interoperability: compatibility on business workflows used by different organizationsE-government interoperability Government-to-Government (G2G) Government-to-Business (G2B)
  9. 9. HK E-Government Interoperability FrameworkFaciliates implementation of client-centric, joined-up, one-stope-govt services http://www.ogcio.gov.hk/eng/infra/eif.htmEvery IT contractor must follow to develop e-govt joined-up servicesTechnology interoperability: IF technical specifications Recommendation on use of open standards for different applicationsInformation Interoperability: XML Schema Design and Management Guide Govt Registry of Data Standards: www.xml.gov.hk
  10. 10. IF Technical Specifications *Analysis underpinning The HKSARG Interoperability Framework Recommendations Recommendations
  11. 11. XML Schema Design and Management GuideMethodology to design business processes, information models, andXML schemas for G2G/G2B data exchange Customized proven standardization methodologies, e.g. ebXML and UBLPolicy, guidelines, organizations to manage e-govt data standardsUsed to implement various G2G/G2B services and standards Common schemas on address, person name, business registration,… Weather information standard Works Projects Information Standard, etc.Some companies used it to develop enterprise data standardsMacao govt is adapting this guide to standardize ‘address’
  12. 12. Process Modeling
  13. 13. Information Modeling Purchase Order : Document Purchase Order : ABIE Delivery Date Delivery Address Signature others... : BBIE : ASBIE : ASBIEDate Date Time Physical Address External : CCT : ABIE Street City Country : BBIE : BBIE : BBIEName Name Code Text Text Code : CCT : CCT : CCT
  14. 14. XML Schema Development Automatic conversion
  15. 15. XML Schema StandardsManagement
  16. 16. Registry of Data Standards(http://www.xml.gov.hk) Address Schema
  17. 17. Government Support in Technology InnovationR&D projects funded by Innovation and Technology Commission tomake HK become a knowledge-based economyUniversity and industry collaboration projects 90% govt funding, 10% industry sponsorship IP rights owned by university 50% govt funding, 50% investment from a company IP rights owned by the companyCECID received 7.7M USD for various projects on B2B, G2B, ebXML/ Web Services / UBL standards, data privacy
  18. 18. Paper-Based Trading PO PO 1/9/2005 1/9/2005 ABC Co. ABC Co.order food order food Proven, simple, low-cost Repetitive data entry Low productivity Prone to human errors
  19. 19. B2B E-Commerce for SMEs (Paperless Trading)How to make it as proven, simple and affordable as using FAX? System-to-system data exchange 01010101 01010101 10101010 Repetitive data entry eliminated 10101010 01010101 01010101 Accurate and efficient Human fraud avoided Round-the-clock operation
  20. 20. E-Commerce Infrastructure for SMEsOpen standards Enable software interoperability Eliminate vendor lock-in Promote software development by small businesses / vendorsOpen source software Transparent in source code security, standards compliance, extensibility, reliability Permits adoption by users and extensions by developers at minimum costs
  21. 21. Hermes B2B Messaging ServerMulti-protocol-standards B2B data exchange platform ebXML Message Service, AS2, Web Services, …Development funded by ITC of HKSARGStandards compliance and interoperability certified ebXML Asia Committee, Drummond group,…Recognized by local and regional awards Asia Pacific ICT Awards, HK IT Excellence Awards, HK Linux Business Awards
  22. 22. Hermes 2 Open-source (H2O)Open-sourced at www.freebXML.org An international effort to promote adoption and development of ebXML software initiated by CECIDDownloads from 80+ countries recorded
  23. 23. B2B EDI on the Internet EDI Private Network Order Doc EDI gateway EDI gateway (EDI)Buyer Seller Expensive !!With Hermes Internet Order Doc Hermes HermesBuyer (XML) Seller Cost effective, affordable by SMEs !!
  24. 24. Cost of Ownership EDI * HermesInitial cost US$40,000 – $80,000 Free (Unix or Windows based) If running on Linux US$120,000 (mainframe)Programming US$40,000 - $120,000 US$3,000cost (app development)Operational US$0.25 - $1 per document Internet subscription * Source: “The Total Economic Impact of EDI” by Forrester Researchexpenses (flat fee for unlimited usage) * Source: “The Total Economic Impact of EDI” by Forrester Research
  25. 25. Submission of Dangerous Goods Manifests through ebXML MessagingShipping Agent Paper submission 1 W eb Marine su bm Dept 2 iss ion B2B Connector Internet ebXML submission Hermes 3 over HTTPS or VPN MSH
  26. 26. e-Government InfrastructureService (EGIS) Centralized G2G and G2B GatewayOGCIO Dept A Dept B EGIS Web Services Platform by Hermes / ebXML OGCIORecruitment Issuance Shipping Clinics Agents Companies Agents Hermes Other B2B product Connector s
  27. 27. Another ChallengeHermes is open-source and open-standards based.Why isn’t it so widely adopted by SMEs?Because of complexity. SMEs don’t have technicalexpertise to use open-source software.They need technology as simple as FAX.We developed B2B Connector Internet Appliance basedon Hermes to address this problem.
  28. 28. B2B ConnectorPlug-and-play, affordable (~1,000 Euro)Internet applianceSimple, browser administered,no programming requiredExchanges documents through sharedfolders via reliable and secure InternetchannelsSupport conversion between differente-business standardsUsed by many companies and governmentdepartments in HKExported to China, Australia, Spain,Canada, Italy, UK, Taiwan
  29. 29. Vehicle License Renewal – Transport Department of HK GovtTo streamline vehicle license renewal procedure and curbfraudulent vehicle insurance6 insurance companies (AXA, Falcon, Mingan, MSIG, QBE, andZurich) have participated in the pilotTo synchronize vehicle insurance databases between TransportDepartment and insurance companiesDeploy B2B Connectors for exchange of vehicle insuranceinformation between insurance companies and TransportDepartment of HKSARGPotential market size 80+ (which cover all vehicle insurance companies in Hong Kong) Over 600,000 vehicle license renewals per yearPilot in Q3 2008, mass rollout in Q2 2009 29
  30. 30. Vehicle License RenewalTechnical Architecture
  31. 31. ConclusionsB2B and G2B e-commerce interoperability infrastructure: Open standards Open source softwareTechnology innovation for SMEs Simple, plug-and-play Affordable initial and recurrent costs Predictable results (ROI)Government leadership in e-commerce adoption is a keysuccess factor
  32. 32. Thank YouURL: http://www.cecid.hku.hk Email: ytlee@cecid.hku.hk

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