DFID e-Business Strategy - 2001


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DFID e-Business Strategy - 2001

  1. 1. Department for International Development eBusiness Strategy July 2001
  2. 2. Contents Glossary Foreword Section 1 Executive summary 1 2 DFID’s strategic context and business drivers 5 3 Customer segmentation 10 4 Types of interaction 12 5 Programme planning and implementation 22 6 Risk assessment 29 7 The structural framework 32 Appendix Appendix 1: DFID's Public Service and Service Delivery Agreements Appendix 2: Detail of DFID's draft customer segmentation tree Appendix 3: Draft Knowledge and Communications Committee Terms of Reference Appendix 4: Definitions of eBusiness applications Appendix 5: Details of DFID’s eBusiness programs Appendix 6: Case studies Appendix 7: The ICT Group and its initiatives Appendix 8: The ways in which ICT and eBusiness is helping DFID deliver its IDTs Appendix 9: DFID’s original analysis of types of customer interactions Appendix 10: Contributors and consultees for this report Appendix 11: Electronic Service Delivery
  3. 3. Glossary The following abbreviations and acronyms are used in this document: Departmental abbreviations and acronyms AD Accounts Department CHAD Conflict and Humanitarian Aid Department DPD Development Policy Department DFID Department for International Development Eval Evaluation Department Fin Dept Finance Department HRD Human Resource Division IAR Information Asset Register IDML International Development Markup Language KCC Knowledge and Communications Committee KPU Knowledge Policy Unit Inf Dept Information Department ISSD Information Systems and Services Department IUDD Infrastructure and Urban Development Division MIS Management Information System MTF Medium Term Framework OGC Office of Government Commerce OPD Overseas Pensions Department PO Private Office Proc Dept Procurement Department SDD Social Development Department Stats Dept Statistics Department TMG Top Management Group Other abbreviations and acronyms AIDA Accessible Information on Development Activities CMIS Contracts Management Information System CRM Customer Relationship Management DOT force Digital Opportunity Task Force ECOSOC Economic and Social Council (of UN) EDM Electronic Document Management eGIF eGovernment Interoperability Framework
  4. 4. ERM Electronic Records Management FOI Freedom of Information Act FICHE Fund for International Co-operation in Higher Education GDNet Global Development Network GSI Government Secure Intranet HMT Her Majesty’s Treasury ISDM Information Systems Development Methodology KN Knowledge Network OeE Office of the eEnvoy PEP Public Enquiry Point PRINCE Projects In Controlled Environments PRISM Project Reporting and Information System for Management PSA Public Service Agreement SDA Service Delivery Agreement SDP Service Delivery Partner VPN Virtual Private Network XML eXtensible Markup Language
  5. 5. Foreword DFID’s e-Business Strategy DFID is undergoing major changes in the nature of its business as it embraces the challenges set out in the 1997 and 2000 International Development White Papers. The aim of eliminating global poverty set out in these and DFID’s Public Service Agreement is ambitious and requires us to work in new ways, both within the Department, in partnership with the international community, across Whitehall, with Civil Society, the Private Sector and with the poor in developing countries. The use of information and communication technologies is essential to us achieving these goals, not least through enabling effective communication, policy formulation, lesson learning and knowledge sharing within the Department and with our partners. The role of ICT in the development process more widely is also important and is the subject of a separate study. This document sets out how DFID is introducing eBusiness solutions and how we will make use of ICT in responding to these challenges. It supports the vision of DFID as a decentralised and globally dispersed network where we can maintain continuous dialogue with our developing country stakeholders, develop relationships and achieve a better understanding of the issues and environment in which we are working, yet rely on common eBusiness and communications services to ensure efficient support and genuine sharing of skills and experience. Richard Manning DFID eChampion
  6. 6. 1 Executive summary Introduction This document sets out the e-Business Strategy of the Department for International Development (“DFID”). It has been created in order to define an overall context for the implementation of eBusiness processes and technology in DFID as part of the implementation of the eGovernment strategy within the Modernising Government agenda. The report sets out how DFID intends to meet the challenge of providing eBusiness services to its wide range of service delivery partners and customers both in the UK and abroad. This is our second report and it builds on the information supplied in the last submission in the light of the Office of the eEnvoy’s (“OeE’s”) comments on the first report. This report draws on a number of existing strategy documents including DFID’s Public Service Agreement (“PSA”) and Service Delivery Agreement (“SDA”), the International Development Targets (“IDTs”), the Modernising Government White Paper and the 1997 and 2000 International Development White Papers. The document is complementary with the Departmental Investment Strategy, the Medium Term Framework, the Strategic Framework for Information Management and the IS Architecture Values Statement. The last report concentrated on DFID’s use of eBusiness products and channels in its indirect interactions with customers. This report is similarly focused on projects built around DFID’s interaction with partners and with the UK citizen (although for DFID this is generally limited to providing information as a transparent and accountable government department). However DFID is also working with partners to use ICT to deliver services directly to the poor in developing countries in wide-ranging and innovative ways - an overview of these direct initiatives is given in Appendix 7. DFID’s vision and objectives DFID’s vision remains the reduction and eventual elimination of poverty in poorer countries. It seeks to achieve this through the promotion of sustainable development through co-ordinated UK and international action. In the delivery of this vision DFID does not undertake a large number of transactions with UK citizens. However, its interaction with partners is extensive and essential to the delivery of its services. Therefore, DFID’s eBusiness strategy extends to the co-ordination of all programmes and applications which enable it to achieve its objectives more efficiently and effectively. This revised report still supports the finding that the applications that can realise the greatest benefit in terms of DFID’s ability to achieve its objectives are: • Knowledge Management; and • Electronic Communications. Therefore, DFID sees the key benefit of implementing this eBusiness strategy as the faster and more efficient dissemination of knowledge and information to better facilitate the reduction of poverty in poorer countries. The progress made since the last report in the Knowledge Management programme and in eCommunications, particularly the newly redesigned intranet and the infrastructure projects, bears testament to this strategic focus. DFID 1
  7. 7. Delivery of DFID’s eBusiness programme DFID is managing a range of programmes to deliver its eBusiness vision and objectives. The 8 key programmes that have a combined capital expenditure budget of £22.8 million, are shown below (for more details see Section 5). • EDRM: Electronic Document and Record Management; • PRISM: system for recording, analysing and disseminating project performance information; • MIS Rewrite: redesign of the management information system and the other systems it feeds into; • CMIS & eTendering: system to manage the contracting and tendering process electronically; • InSight & Knowledge Management: development of intranet and DFID knowledge management processes; • HR & Payroll System: system to allow electronic recruitment, training, scheduling and integrated payroll; • Satellite Links: use of satellite links to ensure access to internal systems for all overseas staff; and • Assist 2000: new desktop PC and software upgrade to MS Office 2000 for all DFID staff. Since the last report there has been significant progress on many of these projects, including: • The installation of eTendering business applications and DFID’s participation in the 3 month OGC eTendering pilot; • The roll out of PRISM as a web based application on all employees’ desktops; • The selection of an eHR system and the commencement of its implementation; and • The launch of InSight – DFIDs second generation intranet. DFID recognises that effective data management is fundamental to meeting the business needs of the Department and that it underpins the success of all its eBusiness projects. Therefore, much work has been put into developing processes for managing documents and records more effectively, since the objectives of EDRM projects go beyond meeting the PRO targets for electronic storage and transfer of records. A key milestone has been the production and approval by the (then) IMC of the Electronic Records Corporate Policy document in April 2001. In addition, a project team is being set up with a full time manager and the aim is for an EDRM solution to be piloted in 2002 in both a UK and overseas office. DFID is aware that there are potential design, delivery and co-ordination risks when managing a portfolio of programmes such as this. To mitigate against these (and other risks), DFID is finalising the Information Systems Development Methodology (“ISDM”) as a framework for effective programme and project management (see Section 5 for more details). Training is being offered to selected personnel to ensure the consistent implementation of this framework. DFID 2
  8. 8. Joined up working In developing these supporting eBusiness projects DFID has been eager to identify where such initiatives hold cross-cutting opportunities and make use of them by collaborating with other Government departments. To this end, DFID is involved in government-wide pilot projects, for example, eTendering with the OGC. In much of DFID’s work, the Department behaves like a knowledge management organisation for whom managing the flow of information between itself and its partners (such as the World Bank or the OECD DAC) is fundamental. Consequently DFID’s portfolio of e-projects displays a high degree of collaboration with partners both inside and outside of Government to make this information flow efficient and directed towards meeting business objectives. Already within DFID, OGDs and international bodies form key members of communities which are being used to develop policy and build consensus. The recent Digital Opportunity Task (DOT) Force is an example where DFID is working with partners to achieve the common aim of maximising the contribution of ICT to the reduction of poverty. A range of interventions ­ from policy and regulatory frameworks to training people - will be necessary, with different aspects being supplied by government, business and Civil Society organisations in assorted combinations. Anther example, AIDA (Accessible Information on Development Activities) uses IDML (International Development Markup Language) to integrate information from multiple sources for searching and retrieval from a single point of access. DFID is participating in the pilot to illustrate how data from multiple sources can be brought together under a common framework to facilitate information sharing (see Appendix 5). The process of customer segmentation encourages the identification of opportunities for joined up working. Since the November 2000 submission, DFID has updated its customer segmentation analysis in line with the methodology proposed recently by the OeE. The Department expects to discuss this analysis with key OGD partners (the MoD and FCO) in July, to better understand the opportunities for joined up working The structural framework DFID is reviewing the internal structures and corporate governance frameworks that support the eBusiness strategy. To ensure a portfolio of eBusiness projects that display the right strategic direction the central body for the strategy’s implementation (the IMC) has been replaced by a new body, the Knowledge and Communications Committee (“KCC”) reporting directly to the Management Board. The key significance of the change is the seniority of representation on the KCC, which is now made up of heads of department and directors rather than general departmental representation and chaired by the Permanent Secretary. The KCC reports directly to the Management Board. Supporting the KCC will be focused steering committees, programme and project boards that manage projects using a standard approach and according to the priorities of the KCC. This is not the only business change being considered by DFID. Consultants from Cranfield Management School have been commissioned to consider, amongst other things, structural issues and project prioritisation. They are due to present official findings to the KCC in July. DFID 3
  9. 9. Next steps These changes represents an ongoing process of review and adjustment of the way in which DFID functions, concentrating on business process and frameworks that support a coherent strategic approach to eBusiness. The current organisational changes within DFID are being made in recognition of the integral role eBusiness has to play in the Department. Things are changing rapidly across DFID in response to and in anticipation of changes outside the organisation. DFID foresees that the benefits of current organisational changes will be in evidence in the coming months, and expects to report further progress in the Department's next eBusiness strategy submission to the Cabinet Office. DFID 4
  10. 10. 2 DFID’s strategic context and business drivers The context for DFID’s objectives and operations The overarching context for DFID’s objectives and operations are set out in the 1997 White Paper 'Eliminating World Poverty: A Challenge for the 21st Century'1 and the 2000 White Paper “Eliminating World Poverty: Making Globalisation Work for the Poor”. The central focus of these policy documents is a commitment to the international development targets of halving the proportion of people living in extreme poverty by 2015. Other associated targets include ensuring basic health care provision and universal access to primary education by the same date. Figure 1: DFID’s strategic context Vision 1997 & 2000 White Papers: Eliminating Poverty: A Challenge 1997 & 2000 White Papers: Eliminating Poverty: A Challenge Statement for the 21 st Century & Making Globalisation Work for the poor st Target Strategy Papers (IDT) Target Strategy Papers (IDT) Policy/ Strategy Organisational Strategy & Country, Institutional and Country, Institutional and Public Service Public Service Medium Medium Planning Other Strategy papers Other Strategy papers Agreement & Term Term Statements Service Delivery Service Delivery Framework Framework Agreement Agreement Strategy Reviews & Resource Annual Plan & Annual Plan & Policy & Resource Plans Policy & Resource Plans Allocation performance Reviews performance Reviews Annual Personal Annual Personal Development plans Development plans Operational Engaging with Partners, Programmes, Engaging with Partners, Programmes, projects and Technical Co-operation projects and Technical Co-operation Further detail on this contextual setting is provided by the International Development Targets (“IDTs”) and target strategy papers (TSPs)2. These provide milestones against which progress towards the elimination of poverty can be measured. In the 2000 White Paper, DFID has committed to work to manage globalisation in the interest of poor people, thereby creating faster progress towards the IDTs. 1 These papers are published online at http://www.dfid.gov.uk/. 2 Details are available online at http://www.dfid.gov.uk/. DFID 5
  11. 11. The IDTs are: • halving the proportion of people living in extreme poverty by 2015; • universal primary education in all countries by 2015; • demonstrated progress towards gender equality and the empowerment of women by eliminating gender disparity in primary and secondary education by 2005; • reducing by two-thirds the mortality rate for infants and children under 5 and a reduction by three- quarters in maternal mortality, all by 2015; • access through the primary healthcare system to reproductive health services for all individuals of appropriate ages as soon as possible and no later than 2015; and • implementation of national strategies for sustainable development in all countries by 2005, so as to ensure that current trends in the loss of environmental resources are effectively reversed at both global and national levels by 2015. It is therefore within the context of the White Paper and the IDTs that DFID’s defined its organisational Public Service Agreement (“PSA”) objectives and targets. The purpose of these targets is to measure DFID’s own contribution towards these international goals by 2003/4. The Medium Term Framework (“MTF”) provides priorities for how DFID organises itself and deploys its resources (money, staff and knowledge) in order to maximise its impact with stakeholders. It draws from, and seeks to pull together, lessons from recent experience and suggests how DFID needs to develop further in order to contribute to an integrated and focused international development effort as effectively as possible. The MTF is due to be revised by September 2001. DFID’s vision and objectives DFID’s vision, as defined in its PSA, is the reduction and eventual elimination of poverty in poorer countries. The PSA describes how DFID aims to achieve this vision through the promotion of sustainable development and in particular by: • building development partnerships with poorer countries; • working more closely with the private and voluntary sectors, and the research community; • working with and influencing multilateral development organisations; • working with other Government Departments to promote consistent policies affecting poorer countries; and • using our knowledge and resources effectively and efficiently. DFID 6
  12. 12. These aims and objectives have been defined in more detail in DFID’s PSA and Service Delivery Agreement (“SDA”)3. As Figure 2 shows, the delivery of the PSA objectives is being done through two main methods of customer interaction: • indirectly to customers via Partners where DFID’s role of influencing international development policy, acting as a contract manager and fund provider, and facilitating policy dialogue; and • directly to customers through existing channels (although this is a very small proportion of the total interaction) Figure 2: Delivery channels for DFID’s objectives4 Aims Services Partners (PSA) (SDA) Customers The elimination • Effective development • DFID departments • UK citizens of world poverty assistance (Multilateral & • UK OGDs and bilateral donors) • UK Parliament organisations • Sustainable development • Contractors/ • Poor people • Reduction in unsustainable suppliers and debt • Civil Society, North organisations • Health promotion including and South in developing HIV action • Governments in countries • Conflict prevention developing • Improved education countries • Humanitarian assistance • Multilateral • Global economy integration institutions (trade & enterprise) • Bilateral donors • Building stronger constituency for development Indirect / supporting interaction via Partners Direct interaction with Customer on the ground How eBusiness can assist in delivering DFID’s vision The acquisition, analysis and communication of information and knowledge are central to the effective implementation of DFID’s vision. DFID has historically used a variety of methods to collect and analyse information. This information has then been disseminated through a range of channels, depending on the partners’ needs, facilities and IT capabilities. 3 Not all DFID’s activities are captured in the PSA e.g. work with middle income countries and conflict and humanitarian affairs. Copies of DFID’s PSA and SDA is available online at http://www.dfid.gov.uk/public/who/who_frame.html. A copy of DFID’s PSA and related SDA is provided in Appendix 1. 4 Greater details on the analysis that support this figure are provided in sections 3 (customer segmentation) and 4 (types of interaction) respectively. DFID 7
  13. 13. As Figure 3 shows, the development of eBusiness products and channels provides other valued means to interact with stakeholders, both directly and indirectly (through the Department’s work with service delivery partners). In the future DFID sees that eBusiness products and channels will support the organisation as it increasingly decentralises and opens more offices in the locations where it provides assistance. The advantage of being located in country (the ability to have a continuous dialogue with our stakeholders, develop relationships and achieve a better understanding of the issues and environment in which we are working) combined with an increase in the scale of our development assistance to many countries has materially shifted the perceived cost-benefit calculation in favour of country offices. Our eBusiness products have already started facilitating this organisational shift and will continue to do so by improving communication both between Headquarters and overseas offices and also laterally between regional departments. The model of communication and organisation is thus shifting from a central hub with satellites to a seamless global web where knowledge is exchanged in all directions (both internally and with partners). DFID welcomes this opportunity and is investigating ways of using eBusiness products and channels to manage the change within the Department and to best serve its stakeholders. Figure 3: The role of eBusiness in delivering DFID’s vision Now Now How to Future vision Future vision “Hubs & spokes” get there “Seamless global web” eBusiness strategy DFID 8
  14. 14. Of the two forms of customer interaction shown at the bottom of Figure 2, DFID’s recent use of eBusiness products and channels to date has been more focused on indirect interactions with customers through partners, managing agents, suppliers and internal DFID processes and systems5. Hence the focus of this document is on those eBusiness initiatives. However, an ICT Group has been established recently to help co-ordinate the innovative use of eBusiness products and channels in the direct delivery of DFID’s services. The role of the ICT Group, its forward plan and the related eBusiness projects that are already under way, are discussed in more detail in Appendix 7. Analysis already performed by the ICT Group on how eBusiness can assist DFID deliver its IDTs is also provided. DFID has initiated a study to assess the most appropriate strategy for DFID to use ICT to achieve its development goals. The study will be completed at the end of September 2001. This document describes DFID’s strategy for using eBusiness to achieve its vision and in particular the objectives as stated in its PSA and SDA. This document reflects the analysis and work undertaken since DFID’s first submission in October 2000. It reflects the progress made and also outlines the areas of further work required to meet its objectives. 5 There are some notable exceptions to this, such as Health & Population, Education and Rural Livelihoods Departments, that have been supporting and delivering projects using ‘lower level’ forms of eBusiness products such as radio and television to engage directly with the poor in developing countries (rather than the ‘higher level’ forms such as the internet). DFID 9
  15. 15. 3 Customer segmentation Introduction This section describes the refined customer segmentation analysis that was undertaken by DFID in response to the developments made by OeE in this area in recent weeks. The purpose of this analysis was to enable DFID to identify, in a manner consistent with its partners, the key groups of customers and partners with whom DFID needs to interact in order to achieve its organisational objectives (as defined in its PSA). The output from this section is then used in Section 4 to refine the types of interactions that DFID undertakes with its various partners and customers. Output from this analysis has been discussed with OeE in June and a workshop is scheduled with FCO and MOD for the middle of July to assist in refining joined up working initiatives with these two departments. Customer segmentation analysis The analysis was conducted in interviews involving key business managers from a full range of DFID's departments. Details of the interviewees for the customer segmentation are provided in Appendix 10. Although the resulting segmentation is a draft form and may need to be further revised, it has proved useful in understanding the largely indirect nature of DFID’s service provision, both through conventional and eBusiness channels. From discussions with the OeE, DFID took the definition of ‘customer’ to be: “The ultimate recipient of a direct and tangible product, service or activity provided by a public body or one or more public bodies acting in partnership with either public or private entities.” Figure 4: DFID's customer base Aims Services Partners (PSA) (SDA) Customers The elimination • Effective development • DFID departments • UK citizens of world poverty assistance (Multilateral & • UK OGDs and bilateral donors) • UK Parliament organisations • Sustainable development • Contractors/ • Poor people • Reduction in unsustainable suppliers and debt • Civil Society, North organisations • Health promotion including and South in developing HIV action • Governments in countries • Conflict prevention developing • Improved education countries • Humanitarian assistance • Multilateral • Global economy integration institutions (trade & enterprise) • Bilateral donors • Building stronger constituency for development Indirect / supporting interaction via Partners Direct interaction with Customer on the ground DFID 10
  16. 16. As the figure shows, DFID identified two ultimate recipients of DFID’s services: • UK citizens; and • citizens from developing countries. DFID has also identified a wide range of partners with whom DFID interacts when carrying out its business. For the purposes of analysis these have been categorised into seven groups: • internal staff and Departments; • governments in developing countries; • suppliers and contractors (businesses, research institutions); • Civil Society; • other international development organisations (bilateral donors, multilateral institutions); • other government departments in the UK (“OGDs”); and • UK Parliament. In keeping with the OeE’s methodology, a customer segmentation tree with top, high and low levels were developed to show the relationship with both partners and ultimate customers. A more detailed tree is provided in Appendix 2. Figure 5: DFID’s customer segmentation Top level The world High level UKOGDs UK Parliament Civil Society Suppliers/contractors Developing cty gov.s Internat'l Development Orgs Low level Developing cty citizens UK citizens Details of the types of interactions that DFID has with, and the services it provides to, its customers and partners are described in the next section. DFID 11
  17. 17. 4 Types of interaction Introduction This section describes the analysis conducted by DFID in reviewing and refining its interactions with partners and customers using the new guidelines developed by OeE in recent weeks. DFID feels that the original classification (which used six types of customer segmentation rather than the three now proposed by OeE) is more appropriate for its internal workings. However, DFID recognises the value of defining its customer base using a method that is being used across OGDs so that opportunities for joined up working may be identified more easily. A high level overview of DFID’s interactions with its partners and customers is shown in the figure below. Figure 6: An overview of the types of interaction between DFID and its customers /partners Civil Society Civil Society • Assistance in the reduction UK citizens UK citizens Multilateral Agencies & Multilateral Agencies & • Assistance in the reduction Citizens from developing of poverty through • Information about • Information about Bilateral Donors Bilateral Donors Citizens from developing of poverty through countries emergency and ongoing emergency and ongoing developing countries developing countries • Co -operation • Co-operation countries • “Accountability information • Policy proposals • Policy proposals ••Emergency assistance Emergency assistance assistance through assistance through • “Accountability information • Employer • Employer • Information collection, • Information collection, ••Ongoing assistance on: Ongoing assistance on: • Fund/grant giving • Fund/grant giving • Pensions provider analysis, sharing & analysis, sharing & ••Health Health • Information collection, • Information collection, • Pensions provider dissemination dissemination ••Education Education analysis, dissemination analysis, dissemination • Funding/grant giving • Funding/grant giving ••Governance Governance & awareness raising & awareness raising ••Finance & trade issues Finance & trade issues • Policy dialogue • Policy dialogue ••Infrastructure Infrastructure ••Natural resource issues Natural resource issues ••Human development & Human development & growth growth DFID internal staff DFID internal staff ••Policy development & Policy development & consensus DFID consensus ••Resource allocation Resource allocation ••Programme management Programme management ••Management of the Management of the Governments from Governments from organisation organisation developing countries developing countries ••Fund/grant giving Fund/grant giving ••Emergency assistance Emergency assistance ••Ongoing assistance on: Ongoing assistance on: ••Health Health ••Education Education ••Governance Governance ••Finance & trade issues Finance & trade issues Parliament Parliament UK Government UK Government ••Infrastructure Infrastructure ••Parliamentary questions Parliamentary questions departments Suppliers/ Contractors Suppliers/ Contractors departments ••Natural resource issues Natural resource issues ••Debates Debates • Fund/grant giving • Fund/grant giving ••Joint delivery of services Joint delivery of services ••Human development & Human development & ••Reports & evidence to select • Information collection, • Information collection, Reports & evidence to select (e.g. CHAD & MOD, FCO) (e.g. CHAD & MOD, FCO) growth Pensions growth Pensions committees committees analysis & dissemination analysis & dissemination ••Documents information Documents information provider provider ••Help on foreign visits • Employer • Employer Help on foreign visits ••Analysis of trade policy Analysis of trade policy Original analysis of interactions – 6 categories For its first eBusiness strategy report, DFID conducted a conceptual analysis and defined six types of interaction: • Policy and strategy formulation Undertaking research and analysis, the development of policy and strategy options and agreement of DFID’s detailed development policy priorities for regional and international issues. • Policy consensus The process of discussing policy initiatives, influencing and persuading other parties to adopt consistent courses of action around agreed common objectives. DFID 12
  18. 18. • Resource allocation The allocation of funding and other scarce resources across the policy priorities which have been agreed. • Programme management The management of programmes to deliver DFID’s priorities whether directly or through third parties, including evaluation and monitoring. • Management of the organisation Conducting all of the internal processes which are necessary for the organisation to run effectively including, for example, record and document management, payroll, HR, IS support and staff appraisal and development. • Demonstrating accountability The processes involved in being accountable to the public, Parliament, the Civil Society and central governmental structures. Updated analysis of interactions – 3 categories DFID then conducted an analysis to map its original types of interaction definitions to the three consolidated headings provided by OeE in discussions in June 20016. The definitions provided by OeE are: • Infrastructure Those interactions that create the framework of rules and regulations. The relevant customers are those who derive a benefit from the presence and operation of a system but who do not interact directly with Government. • Policy/Consultation The processes involved in the creation of policy. Relevant customers are those who are directly consulted about policy issues and formation: – all citizens through the electoral process; – specific citizens on a specific issue. • Service delivery The processes involved in the creation of a tangible benefit, information or eService; either the giving or receiving of this tangible benefit. Relevant customers are those who are the direct recipient of a tangible benefit, information or eService. Below the types of interaction are mapped directly from DFID’s original six to the consolidated three categories. 6 DFID understands that these three consolidated headings have superseded the five categories five a provided in the OeE guidance of April 2001 – namely Provide information, Collect revenue, Provide grants and benefits, Consult and Regulate (license etc). DFID 13
  19. 19. Table 1: Mapping DFID’s interactions to the current OeE definitions7 Original definition of types of Current definition of types of interaction interaction Policy and strategy formulation Policy/Consultation Policy consensus Policy/Consultation Management of the organisation Infrastructure Resource allocation Service Delivery, Infrastructure Programme management Service Delivery, Infrastructure Demonstrating accountability Service Delivery, Infrastructure It is clear that the categories do not map exactly. Therefore DFID undertook a fresh review, rather than attempting to simply map the old categories onto the new ones. DFID wishes to note that there were significant difficulties in applying the new categories provided by OeE as they were not refined enough to cater for the distinct nature of DFID’s services or customer base. In particular it was difficult to analyse DFID’s relationship with partners and ultimate customers under the terms Service Delivery and Infrastructure. This is because DFID has almost no Service Delivery interactions with its final customers and if the interaction types were to refer only to final customers, much of DFID’s valued services would not be reflected. To resolve this issue, DFID has included both partners (high level customers as defined in Figure 5) and final customers (low level customers as defined in Figure 5) in both Service Delivery and Infrastructure and scored these interactions accordingly. The figure overleaf summarises this analysis. Due to its greater refinement and the subsequent ease in its application, DFID feels that the original customer segmentation provided in its first eBusiness submission is more appropriate for its internal purposes, and will continue to use in this context8. However, DFID recognises the value of defining its customer base using a method that is being used across OGDs so that opportunities for joined up working may be identified more easily. This updated description of interactions will be used by DFID in its discussions with partners (such as FCO and MOD in July). 7 Some of the original definitions do not map exactly onto the new types of interaction. This is because the ultimate recipient of much of DFID’s services are citizens in developing countries but their interaction with DFID is indirect and so aspects of these interactions fall under Infrastructure. However, to deliver the services (either through conventional or eBusiness channels) , DFID interacts directly with SDPs and so other aspects of these interactions fall under Service Delivery. 8 A copy of DFID’s original analysis of interactions mapped to customer segments is provided in Appendix 9. DFID 14
  20. 20. Table 2: Customer/partner interactions very high intensity of interaction; high intensity of interaction; medium intensity of interaction low intensity of interaction Customer /Partner Policy/Consultation Service Delivery Infrastructure Comment UK citizens • Interactions between DFID and the UK citizen occur through a number of media. Many of these interactions are generated by citizens with a specific academic or personal interest in development issues. • DFID’s redesigned website will help raise awareness of development issues with UK public. • Participation in the Pilot Publications Scheme under FOI will increase UK citizens’ access to government information, as will development of the Public Enquiry Point (“PEP”). • UK citizens’ interaction with DFID is mainly Infrastructural as they will receive indirect benefits from DFID’s actions (indirect economic gains or ethical satisfaction) Citizens from developing • DFID’s direct interaction with these citizens is countries currently minimal - hence low Service Delivery but high Infrastructure interactions. • In line with the priority to bring in southern voices into policy formation, DFID is increasing its drive towards locating offices in developing countries. As a result, direct consultation at a micro level is increasing. • Channels of communication with citizens in developing countries are somewhat limited. Large-scale e-interaction is not yet possible but the PEP has received some email enquiries from southern countries. DFID 15
  21. 21. Customer /Partner Policy/Consultation Service Delivery Infrastructure Comment Internal staff and • Most UK-based staff have access to the full Departments range of access channels. These channels have recently been improved with the relaunch of the intranet site (inSight). • Delivery channels for staff based abroad have significantly improved in recent years. Increasingly staff are being based abroad and DFID is working jointly with FCO to address some of the communications infrastructure issues that have occurred. UK OGDs • DFID consult with OGDs on many policy issues, and work closely with MOD and FCO on Conflict and Humanitarian Aid issues. • There is interaction with OGDs, in particular FCO and DTI on ICT issues. • DFID’s shows accountability and effective use of delegated funds to HMT. UK Parliament • The key focus of interaction with Parliament is under policy/consultation to demonstrate accountability and effective and efficient utilisation of delegated funds. Multilateral Agencies & • The key focus of interactions with these Bilateral Donors organisations is at a strategic, funding and consensus building level. Interactions are concentrated on ensuring effective cross­ organisational working to achieve similar international development objectives. • It assumed that most organisations will have access to a full range of service delivery channels but organisations based in developing countries may have technical infrastructure difficulties. DFID 16
  22. 22. Customer /Partner Policy/Consultation Service Delivery Infrastructure Comment Suppliers/ Contractors • Interactions focus on those relating to the supply of services and obtaining payment from DFID to deliver those services. • In carrying out these tasks suppliers are involved in gathering information which feeds into the other types of interaction. • It is assumed that most suppliers have access to a full range of channels but those based in developing countries may have technical infrastructure difficulties. DFID accepts that the technology access varies by organisation. Civil Society • Interactions with these organisations focus on strategy, funding and consensus building. They are concentrated on ensuring effective cross­ organisational working to achieve similar international development objectives. • It assumed that most organisations will have access to a full range of channels but organisations based overseas may have technical infrastructure difficulties. • Interactions by Academic Institutions feature highly in Policy/Consultation. Governments from • The primary focus of interaction is to influence developing countries policy to achieve DFID's objectives and to carry out needs assessment in consultation with these Governments to inform policy formulation. • Channels of communication are limited, but developing. Central administrations may have web access but this may not be the case for local administrations. DFID 17
  23. 23. This revised analysis reinforces the DFID view that it interacts in a mostly indirect way with its ultimate customers (UK citizens and citizens from developing countries), but interacts directly with its partners to deliver those services to final customers. The interaction with the highest intensity is policy formulation and consultation, which is carried out across a range of partners and stakeholders. Next are the interactions that relate to Infrastructure. Although, service delivery (via the partners) shows the lowest level of interactions, it is still clearly important in the delivery of services across a range of partners including suppliers, contractors and Civil Society. The comments in the above tables show that virtually all the key customer/ stakeholder/ partner groups have access to most of the key channels of service delivery. Exceptions include organisations and individuals based in developing countries where access to a variety of service delivery channels can be limited. Sections 5 (Programme planning) and 6 (Risk analysis) outline how this issue is being addressed. Updated analysis of services and eBusiness applications There is a wide range of eBusiness applications DFID could use to facilitate the interactions described above. Given the revision in types of interaction, it was felt appropriate to revisit the types of eBusiness applications that DFID has undertaken to review the priorities given to each. For the purpose of this analysis, the eBusiness applications have been classified as: • information and knowledge management (including Electronic Document Management (EDM), Electronic Records Management (ERM) and collaborative technologies); • customer relationship management (CRM); • eProcurement; • eFinance; • eHR; • eCommunications; • eOperations management; and • eInfrastructure. Full definitions of these applications are available in Appendix 4. These applications were mapped onto the three types of customer interaction in order to understand the extent to which eBusiness applications could support and facilitate the interactions most prevalent in DFID’s operations. Listed in priority, the interactions of most importance are: DFID 18
  24. 24. • Policy/Consultation; • Infrastructure; and • Service Delivery. The output from this analysis is shown in Figure 7 overleaf. Using the refined customer segmentation, DFID’s analysis still supports the findings of its first eBusiness report that although each category of eBusiness application is relevant in some way to the work DFID does, two applications are most relevant to the needs of its partners and final consumers. These are Information and knowledge management and eCommunications. However, for its Service Delivery types of interaction, eProcurement (including eTendering) and eFinance are also important. It is therefore clear that these applications will have the highest impact on DFID's business and should be prioritised accordingly. Details of DFID’s eBusiness programmes are provided in the next section. DFID 19
  25. 25. Figure 7: What types of interactions DFID’s eBusiness applications support very high relevance; high relevance; medium relevance; low relevance; very low relevance. eBusiness application Policy/Consultation Service Delivery Infrastructure Comment Information and • The EDM/ERM programme is key to supporting knowledge management information and knowledge management across the full range of DFID’s interactions with customers. • The newly launched inSight intranet is being used not only as a means of communication but also of quicker and easier knowledge sharing. CRM • CRM in DFID’s case refers to its relationship with the UK citizen. This is mainly one of information sharing, accountability and awareness raising– i.e. an indirect Infrastructure relationship. eProcurement • eProcurement is a direct service provided by DFID to our partners. • The value of this service is felt to a lesser extent by citizens in developing nations (an indirect, Infrastructure interaction). • An example of an eProcurement initiative is the recent eTendering pilot being undertaken with OGC and proposed electronic grant applications. eFinance • eFinance is a limited, direct service provided by DFID to our partners through the BACs payments of accounts. • e-Finance initiatives will enable internal processes to be streamlined and so creates an indirect (Infrastructure) benefit to partners and customers. DFID 20
  26. 26. eBusiness application Policy/Consultation Service Delivery Infrastructure Comment eCommunications • Like information and knowledge management, the benefits of eCommunication are felt throughout DFID’s interactions. • An example of this is the impact of email and video conferencing that spreads across all types of interaction. eHR • eHR initiatives have some impact on Infrastructure interactions by making internal processes more efficient. eOperations • Through programmes such as PRISM and CMIS, management eOperations management has an impact on both direct (Service Delivery) and indirect (Infrastructure) interactions with customers. eInfrastructure • Development of the physical infrastructure that supports effective eBusiness actions (both knowledge sharing and transactional) makes a strong, but indirect impact on DFID’s interactions with stakeholders (partners and customers). DFID 21
  27. 27. 5 Programme planning and implementation Introduction This Section discusses the programmes DFID is currently undertaking and also sets out possible future programmes. The projects discussed are those that provide indirect service support rather than direct support to customers (these are the ICT projects that are discussed in Appendix 7). Current programmes There are 8 key programs within DFID’s current portfolio of e-initiatives, two of which relate to infrastructure. As key programs in DFID’s e-Business strategy they receive substantial resources throughout their development. Their total allocated budget and Senior Responsible Officer (“SRO”) is detailed in the table below. Table 3: Key DFID programmes Programme Description Capital SRO Expenditure EDRM Electronic Document and Record £1.5 million Head of Management Information Dept. PRISM System for storing project performance £1.8 million Head of information Evaluations Dept. MIS Rewrite Redesign of the management information £2.5 million Principal Finance system and the other systems it feeds into Officer / Head of Finance CMIS & e- System to manage the contracting and £300,000 Head of Tendering tendering process electronically Procurement Intranet & Development of inSight and DFID £800,000 Head of Knowledge knowledge management processes Knowledge Management Management HR & Payroll System to allow electronic recruitment, £1.4 million HR Director System training, scheduling and payslips Satellite Links Use of satellite links to ensure access to £7 million Head of ISSD internal networks for all DFID staff Assist 2000 Desktop upgrades to office 2000 for all £7.5 million Head of ISSD DFID staff DFID 22
  28. 28. In addition two major e-infrastructure renewal and upgrade programmes are currently under consideration to improve resilience through hardware clustering, operating system upgrades, improved capacity and upgraded security. These are estimated to cost an additional £6 - £8 million. For details see appendix 5. Table 4 below summarises the timescales and milestones relating to these key programmes (and other initiatives) that support DFID’s eBusiness strategy. For full details on these programmes (including partners for delivery) see Appendix 5. Table 4: Milestones for current programmes9 Project 2001 2002 2003 2004 EDM/ERM Information Asset Register Electronic Library CMIS TenderTrust MIS Rewrite UK CODA Overseas CODA HR System (REBUS) Intranet & Knowledge Management Electronic news feeds Key words project PRISM Satellite Links VPN implementation Assist 2000 Web site redesign Web based expenditure and forecasting FOI Pilot Publication Scheme Public Enquiry Point UK procurement card Resource Allocation and Monitoring GSI implementation & Knowledge Network Remote Working Pilot DFID is already implementing a range of e-Business projects, which have been designed to use new technology to enable more efficient communications and business processes. The table below lists these projects within the e-Business categories outlined at the beginning of this Section. Again, full descriptions, including timescales, of each project are shown at Appendix 5. 9 Triangles indicate milestones. For example when a pilot is being run, or when a new phase in the project’s implementation is to begin. DFID 23
  29. 29. Table 5: Current eBusiness programmes10 Information and CRM eProcurement eFinance knowledge management 1. Electronic Library 1. DFID Website 1. UK procurement card 1. Resource allocation pilot and monitoring 2. Electronic data 2. Public Enquiry point management – EDM project 2. Contracts 2. Overseas CODA and ERM management 3. Pilot Publications 3. UK CODA information system 3. Electronic news feeds Scheme (CMIS) 4. Web based 4. Key words project 4. Information Asset forecasting and 3. Tender Trust Register expenditure tools 5. Web content System management tools 6. Website redesign 7. Intranet redesign 8. Knowledge Network project eHR eCommunications eOperational Infrastructure Manage ment 1. Rebus: Unified 1. Video conferencing 1. MIS Rewrite 1. Satellite links electronic HR and facilities 2. PRISM 2. Assist 2000 payroll system (e - 2. Internet site payslips, e ­ recruitment, e - 3. Intranet site redesign training (Insight) 2. Metadirectory 4. GSI implementation 3. Pensions payments 5. Virtual Private network partnership with Bank implementation of Scotland 6. 100% internal staff access to the internet 7. Remote working pilots This table shows that DFID is carrying out or developing projects in all the key categories of eBusiness applications. There is an emphasis upon Knowledge Management and eCommunications projects. Within the various policy departments smaller, individual e-initiatives, generally in the knowledge management category, are also being developed (see Appendix 5) and co-ordinated with the larger eBusiness projects. DFID is therefore already addressing its key strategic eBusiness needs. DFID has provided three case studies in Appendix 6 to bring to life to the information provided in Appendix 5. These case studies give an in depth account of how DFID is investigating and pursuing collaboration with partners inside and outside of government, including private enterprise, in order to deliver services more effectively. The three case studies are: 10 New programmes since the last eBusiness report are highlighted in bold and underlined. DFID 24
  30. 30. • Livelihoods Connect - using eBusiness channels to effectively influence business partners to make services ‘people focused’; • TenderTrust - joined up working with OGDs and the private sector to enable eTendering with suppliers and contractors; and • PRISM – developing e-projects in a modular way that lends cohesion to the eBusiness strategy. These case studies demonstrate that DFID’s approach to eBusiness is not just about technology issues, but as recommended by OeE, this approach embraces new ways of working to respond to business needs. There are a wide range of other projects which have been suggested by staff which may enhance, complement or succeed these projects. These future options are outlined below. Future options The additional projects outlined in the table below were identified in consultation with staff from a range of DFID's departments. Many of the future projects refer to plans to extend and build on projects that are currently underway (e.g. CMIS and IAR) but we have listed them here for completeness and also to assist in monitoring how they are incorporated and managed in the future. Table 6: Possible future eBusiness programmes Information and knowledge CRM e-Procurement e-Finance management 1. Further develop Intranet 1. Develop Information 1. Extend CMIS e- 1. Electronic invoicing and Extranet communities Asset Register Tendering 2. Central web on key subject areas functionality 2. Online grant accounts system 2. More facilitated e-Forums applications e.g. 2. Electronic grant to enhance specific Development applications communities Awareness Fund, Civil Society 3. Online conferences and Challenge Fund etc. presentations 4. Desktop video conferencing 5. Personalisation of intranet 6. Collation and dissemination of “stories”. 7. Staff yellow pages e-HR e-Communications e-Operations e-Infrastructure Management 1. e-Learning environment 1. Workflow 1. Develop Web-based 1. GSI compliance and applications forecasting and status upgrades 2. e-Payslips e.g. travel, expenses expenditure tools 2. Capacity and 3. e-Performance appraisals etc Resilience Upgrade and competency models 2. Remote working Programme packages 3. Network and 3. Push technologies Systems Programme DFID 25
  31. 31. Project development process DFID uses the Information Systems Development Method (“ISDM”) as a framework for all information systems projects. ISDM combines the PRINCE 2 and DSDM approaches to project management to establish a standard project approach specifically tailored to the needs of DFID. Training in the ISDM method will be given to those members of staff involved in the implementation of an IS project. The DFID Intranet site (inSight) guides all DFID staff through the lifecycle of a project and provides the appropriate procedures and links to templates for project documents such risk management, benefits analysis and to assist with quality assurance procedures. The need to identify and appoint people with the authority to oversee and manage each project is also integral to the methodology. These people fulfil the roles of: • Senior Responsible Officer (SRO); • Project Board Members; and • Project Manager. The ISDM approach is inherently modular and so provides different paths through project management depending on the nature of the project. Although all projects will start with a Proposal Assessment, beyond this phase, projects are managed incrementally. For example, a small, bespoke development project may have only one increment being the move from the assessment and feasibility phase to the business prototyping and implementation phase. In the Feasibility stage, the business requirements are investigated, the Business Case is created, the project is planned with regard to resources, staffing and timescales, and authorisation for development is given or denied. The Business Prototyping or Implementation stage involves building and testing the solution and creating training packages and user documentation. Ongoing processes are • Managing risks; • Controlling finance; • Managing time; • Monitoring and Reporting Progress; and • Managing quality. The ISDM methodology not only provides a framework for project management, but also will facilitate knowledge sharing on how best to run and manage projects. The standard approach will facilitate the sharing of lessons learnt across projects. DFID 26
  32. 32. Take-up and customer satisfaction DFID is committed to monitoring levels of take-up and customer satisfaction with its eBusiness applications, and for most of the projects a process of user consultation and review is incorporated into the project plan. For example, to measure the success of the newly redesigned intranet, focus groups are being set up and meetings planned to get feedback on usefulness. Customer satisfaction monitoring includes: • Monitoring usage of sites on the internet, extranets and intranet – including recording hits and tracking access to content and discussion functionality; • Seeking on-line user feedback and comment; • Conducting more detailed feedback by e-mail, telephone or face to face; • Regularly seeking input from across DFID’s own functions to determine usefulness and usage levels; • Post-implementation reviews; • Feedback at KCC meetings; • Actively discussing usage with other departments and organisations outside DFID. Prioritising future options Clearly, DFID cannot consider investing in all these options at the same time. It therefore important to prioritise these options according to: • the contribution that they make to achieving DFID's business objectives; • the ease of implementation. The first of these criteria considers all the issues outlined above i.e. the type of interaction that the application facilitates and the importance of that application to DFID's business. The second criterion considers the ease with which the application can implemented and therefore with which the benefits can be realised. A number of factors contribute to the ease of implementing an application including: • costs and resources required; • timescales to deliver; • risks involved. The availability of commercial off the shelf software often makes a project easier to implement because the costs, timescales and risks are all limited compared to a bespoke system design. This is recognised by DFID in the Architecture Values Statement. The table below summarises the prioritisation of the applications identified against these two criteria. DFID 27
  33. 33. Table 7: Risk and implementation issues of possible future eBusiness programmes Possible Future Projects Contribution made to Ease of achieving DFID's implementation objectives High Medium Low Easy Medium Difficult Provide, on internet, more Medium Medium facilitated e-Forums to enhance specific communities Online conferences and High Medium presentations Desktop video conferencing Low Difficult Personalisation of intranet Low Difficult Develop Information Asset Low Medium Register Extend CMIS e-Tendering High Medium functionality Electronic invoicing Medium Difficult e-Learning environment Medium Medium e-Performance appraisals and Medium Medium competency models Workflow applications e.g. travel, Medium Medium expenses, job applications etc Remote working packages High Medium Staff Yellow Pages High Medium Central web accounts system High Difficult Server Resilience Project High Medium Push technologies Low Medium This initial analysis shows, at the highest level, what priority might be applied to each of the possible new applications for consideration by the KCC. As discussed in Section 7 the KCC is reviewing, amongst other things, its prioritisation process and will consider this issue at its July meeting. More analysis will be needed on the impact and ease of deployment of possible applications and this will be taken forward later in the year. DFID 28
  34. 34. 6 Risk assessment Introduction DFID recognises the risks that the implementation of the eBusiness strategy entails in relation to both business and technology. In the last eBusiness report, DFID included a detailed study of the possible risks that might arise from new eBusiness initiatives. In this report, the comments made by the OeE 11 in their response to the last eBusiness report have been reviewed and risks specific to current e-initiatives and mitigating actions undertaken are detailed in this section. In line with good business practice and program management procedures DFID has identified risks ensuing from individual e-projects. Assessment of these risks unsurprisingly highlighted a range of risks common to several projects and these provide the focus for efforts to classify risks. The risk classification facilitates the identification of the source of risk and encourages the management of risk by clearly identifying appropriate mitigating actions. It also encourages consideration of the extent to which risks correlate with each other. Risks to e-Business Risks have been identified by DFID staff for individual projects and are outlined in Appendix 5. Below the risks are categorised according to whether they are associated with people or IT systems, and whether they derive from inside or outside government: Figure 8: Risk classification Outside External People Risks External Systems Risks Government • Divergent aims of partners with whom • Exclusion of groups in developing DFID engages countries without access to e- • Buy-in by suppliers in e-procurement Business channels and consequent projects ‘Northern’ bias • Low take up of eBusiness • Incompatibility of applications with applications from outside DFID external systems • Hosting and technology problems • Insufficient data security Inside Internal People Risks Internal Systems Risks Government • Information initiative overload • Integration of existing payroll • Lack of skills to implement projects systems with new HR System • Resistance due to perception of • Incompatibility with government wide increased overload (self service systems (KN on Lotus Notes) aspect of e-Business) • Infrastructure limiting access to • Lack of leadership/ leadership government systems (GSI) structure does not eBusiness • Insufficient capacity strategy objectives • Lack of system flexibility • Insufficient incentives to change working methods resulting in poor data quality (PRISM) People Associated Systems Associated 11 eGovernment response to DFID e-Business Strategy, letter to Richard Manning from Stefan Czerniawski. DFID 29