1. Strategic Impact of e-Government
on Economy and Society
Part one
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. Three challenges
 information society  social processes
 e-business  business processes
 e-government  administrative processes
fixed
mean mobile
digital TV
Realization of processes via Internet
using text, data, voice, video
(c) W. Cellary 2009, slide 2

3. Strategic social issues
(c) W. Cellary 2009, slide 3

4. Thinking about the future
of a society
 In long term, future of a country depends on young generation
 Young generation is generally better educated than the old one
 Young people will be fine in the country if they find job
corresponding to their education, i.e., knowledge-based job
 It is not possible to create enough such job positions for the whole
young generation in the public sector only, so it is necessary to
stimulate knowledge-based economy
 To be well paid, knowledge workers have to be efficient; efficiency
depends on the number of people served per time unit
 To be efficient, knowledge-based job must be done electronically
Future of a society depends on
electronic knowledge-based economy
(c) W. Cellary 2009, slide 4

5. Generation change in Poland
Education
„Governing” generation „Future” generation
Persons of age 45-60 Persons of age 19-24
11% 49%
has university education is studying at universities
(c) W. Cellary 2009, slide 5

6. Social cohesion
Educated people
need
knowledge-based job
Non-educated people
need
knowledge-based services
(c) W. Cellary 2009, slide 6

7. Strategic goal
of each government
Development
of electronic, knowledge-based
economy
 knowledge-based job for well
educated young people
and
 knowledge-based services for the
whole society and business
(c) W. Cellary 2009, slide 7

8. Are not possibilities
of a government overestimated?
How a government may develop economy?
 Government may create conditions to
develop electronic knowledge-based
economy using e-government as a tool:
 developing e-government in a right a role of business
way in e-government
 permitting businesses to develop and
to provide
augmented and integrated electronic a role of e-government
services in business
based on data and services coming from
the public sector
(c) W. Cellary 2009, slide 8

9. e-Business and e-Government
Relationships
Innovative business is always
more advanced than e-government
However
e-Government should be more advanced than
traditional business to stimulate its transformation
(c) W. Cellary 2009, slide 9

10. Transformation
of Business
into e-Business
(c) W. Cellary 2009, slide 10

11. Digital product and service
Digitized information
being an object of business
 document
 money
 piece of authorship
 software
(c) W. Cellary 2009, slide 11

12. Common feature
digital product and digital service
 
delivered provided
through
the Internet
(mobile and multimedia)
(c) W. Cellary 2009, slide 12

13. Electronic economy
Digital product and service as a means
of business processes realization
Tangible
Old Intangible
New
product
economy product
economy
sector sector
Commodity: Commodity:
tangible product and service digital product and service
(c) W. Cellary 2009, slide 13

14. Electronic business
Application of
digital products and services
to business process realization
Business process realization
through the Internet
 Promotion
 Negotiations
 Ordering
 Delivery
 Payment
(c) W. Cellary 2009, slide 14

15. Electronic economy
Electronic
commerce Teleworking
Application of network to access Application of network to access
clients and suppliers in order to people in order to
overcome geographical, time and overcome geographical, time and
cost constraints limiting cost constraints limiting
income creation employment
Increased demand for Increased supply for
products and services knowledge and know-how
(c) W. Cellary 2009, slide 15

16. Main advantages
of business process realization
via Internet
 time - shorter time of realization of business
processes and extended availability
 costs - reduced costs of realization of business
processes
 geography - independence of business processes from
geographical location
 automatic - a possibility of automatic reaction to a
reaction signal initiating a business process
(c) W. Cellary 2009, slide 16

17. Current business
Features of electronic information and communication
cause
being „on-line”
in space without geography
getting information possibility of being in contact
from everywhere in real time
 with everybody anytime
Dynamism and diversity
(c) W. Cellary 2009, slide 17

18. Dynamism
Constant changeability:
 markets
 finances
 customers, suppliers, business partners
 technology and methods of work
 software used to work
 work organization
 law
(c) W. Cellary 2009, slide 18

19. Diversity
Diversity in two scales:
Macro-scale
 geographic diversity
 legislative diversity
 cultural diversity
 divers markets of products
 divers markets of services
Micro-scale
 aspiration to realize holistic customers needs
(c) W. Cellary 2009, slide 19

20. Proper organization
Dynamic cooperation
of diverse business and administrative units
NVO
Network Virtual Organizations
(c) W. Cellary 2009, slide 20

21. Network Virtual
Organization
A set of diverse units
cooperating via net
presented to the clients
as if they are a single organization
(c) W. Cellary 2009, slide 21

22. Two processes
of organization transformation to NVOs
 Top down
Decomposition of hierarchical organizations
 Bottom up
Integration of small and medium size units
(c) W. Cellary 2009, slide 22

23. Decomposition
of hierarchical organizations
Organizations
in the paper era
 In the paper era, when information flow was
slow, costly and geography dependent,
hierarchical organizations were efficient
 It was reasonable and justified to assume
rigid roles and functions of organizational
units, as well as their hierarchical structure
(c) W. Cellary 2009, slide 23

24. Decomposition
of hierarchical organizations
Organizations
in the electronic information era
 In the electronic information era, decisions may be
made basing on communication, i.e., information
exchange, instead of rigid rules and functions fixed
in advance
 Then, a flat network organization provides more
opportunities for business process optimization and
better possibilities to adapt organizations to rapid
changes on the markets
(c) W. Cellary 2009, slide 24

25. Integration
of small and medium size units
 Inclusion of small and medium size units to
NVOs coming from decomposition of
hierarchical organizations
 Self-organization of small and medium size
units into NVOs to offer more complex
products and services on the market and to
improve their competitive position
(c) W. Cellary 2009, slide 25

26. Main feature of an NVO
Focusing on improvement
of own core competences
and entrusting all other functions
to partners
(c) W. Cellary 2009, slide 26

27. Functional transformation
well known method
 Outsourcing
The outsourcing enterprise entrusts control of the
entire process to a partner enterprise
relatively new method
 Out-tasking
The out-tasking enterprise retains control over
the scope and the way a process is performed by
a partner enterprise
(c) W. Cellary 2009, slide 27

28. Criteria
of functional transformation
Risk to business
Activities which, if performed poorly,
pose an immediate risk to the enterprise
 Enterprise mission critical activities
 Enterprise non-mission critical activities
Differentiation from competitors
Activities which directly contribute to the
competitive advantage of the organization
 Enterprise core activities
 Enterprise context activities
(c) W. Cellary 2009, slide 28

29. Transformation
context core
activities activities
mission
Partner critical
Risk to business
out-task
(out-tasking)
Enterprise
keep activities
non-mission
Partner
outsource Partner
out-task critical
(outsourcing) (out-tasking) activities
Differentiation from competitors
(c) W. Cellary 2009, slide 29

30. An example
of a telecommunication operator
accounting context core switching
services activities activities services
mission
Partner critical
Risk to business
(out-tasking)
Enterprise activities
non-mission
Partner Partner critical
(outsourcing) (out-tasking) activities
cleaning billing
Differentiation from competitors
services services
(c) W. Cellary 2009, slide 30

31. Question
How to out-task,
but retain control
on the way a task is performed
by an external partner?
Answer
 By integration of cooperating
computer management systems
 By integration of cooperating people
into a virtual team
(c) W. Cellary 2009, slide 31

32. A picture of an NVO
Integration of computer
management systems
context core
activities activities
mission
Partner critical
Risk to business
(out-tasking)
Enterprise activities
non-mission
Partner Partner critical
(outsourcing) (out-tasking) activities
virtual
team Differentiation from competitors
(c) W. Cellary 2009, slide 32

33. NVO Integrative Portal
Role of the portal:
facilitation of e-cooperation by integration
integration of:
at the • data
organization • systems
level
• business processes
from different partner units
integration of
at the individuals
individuals
level from different partner units
into a virtual team
(c) W. Cellary 2009, slide 33

34. Integration
at the organization level
(c) W. Cellary 2009, slide 34

35. Approaches to integration
 Control of out-task processes requires
integration of:
 data
 software systems
 business processes
 There are two approaches to integration:
 standardization
 intermediation
(c) W. Cellary 2009, slide 35

36. Standardization
 Standardization of:
 data
 software systems, and
 business processes
is far the best method of integration from the
operational point of view
 Standardization eliminates or reduces
intermediate processing making integrated
processing easy and cheap
 Standardized is the NVO middleware
 direct use of middleware standards
 translation of partner unit standards to the
middleware standards
(c) W. Cellary 2009, slide 36

37. Standardization
 If standards used in an NVO are widely
accepted, standardization provides only
limited risk to a unit
 If the required standards are internal de-facto
standards of the dominating partner within an
NVO, risk for a partner unit related with the
acceptance of those standards is higher
 internal de-facto standards create dependence
 standards accepted within an NVO are not
necessarily optimal for activities outside the NVO
 standard solutions reduce costs, but do not
provide competitive advantages
 Standardization is a good method of integration
tightly coupled NVOs
(c) W. Cellary 2009, slide 37

38. Intermediation
 Intermediation is a good method of
integration for loosely coupled
organizations
 Intermediation conserves autonomy
of a partner unit and permits to gain
competitive advantages following
from its non-standard solutions
(c) W. Cellary 2009, slide 38

39. Intermediation
by software agents
Software agent is an autonomous program
that independently performs
given tasks at a given place and a given time
according to the pre-programmed orders of its owner
 In case of intermediation within an NVO, a
software agent observes data of the partner
unit, which reflect the current status of its
business processes, and reports to the NVO
management system all interesting events
(c) W. Cellary 2009, slide 39

40. Integration
at the virtual team level
(c) W. Cellary 2009, slide 40

41. Virtual team
 An NVO requires a virtual team of representatives of
partner units who mutually cooperate via network to
achieve NVO goals
 A role of the Integrative NVO Portal is to transform a set
of representatives into a virtual team providing them with
appropriate information, knowledge, and cooperation
tools
 Cooperation tools are mostly the same as in the case of a
collocated teams:
 Project management tools
 Time management tools
 Document management tools
 Change management tools
 Access to NVO databases and knowledgebases
 Difficulties come from the fact that partner units are by
definition heterogeneous to achieve complementarities:
 different organizational cultures and determining factors
 often different national cultures and determining factors
(c) W. Cellary 2009, slide 41

42. Particular role
of the NVO Integrative Portal with respect
to virtual team management
 Collaboration stimulation
 shy people do not necessarily have less valuable ideas
 Building common organizational culture
 valuation of right behavior
 Facilitating experience sharing as a way to share tacit
knowledge
 expression of tacit assumptions as a part of tacit knowledge
 Achievement of common understanding
 common understanding is different from agreement
 explicit confirmation as a substitute of unavailable body language
 the best way to confirm understanding is to say what to do
 Conflict management
 human mediation
 Providing a channel for non-orthodox ideas as a
source of innovation
 “coffee machine” relationships
(c) W. Cellary 2009, slide 42

43. Conclusions
 NVO is a right answer to challenges of globalized,
diversified, and dynamic economy
 NVO needs more than e-trade and outsourcing,
namely, it needs e-collaboration and out-tasking
 Right tools to integrate management systems
are available:
 middleware, also: web services, service oriented architecture
 agents
 Right tools to communicate within virtual teams are
available:
 email  VoIP
 communicators  teleconferencing
 chats  videoconferencing
 forums  wikis
 RSS  blogs
(c) W. Cellary 2009, slide 43

44. Conclusions
A challenge is to develop
a culture of e-collaboration
in culturally diversified world
(c) W. Cellary 2009, slide 44

45. Thank you
Wojciech Cellary
(c) W. Cellary 2009, slide 45