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M Kashif Farooq Lahore University of Management Sciences (LUMS),                                             Pakistan     ...
Springer published this paper as a bookchapter. Now this book is available at GoogleBooks & Amazon
Objective            This paper presents        a framework of devolutionfor a Virtual Enterprise (like e-government)    W...
Issues   Centralized Virtual Enterprise   Decentralized Virtual Enterprise   Devolution     Top-down     Political, a...
Centralized Initiatives   Typical characteristics     all IT functions centralized in one organizational unit     gener...
Decentralized Initiatives   Typical characteristics     policy is required for       decision making, project managemen...
Soufflé Theory of Decentralization   Scale of devolution depends upon the size    of the country, its resource base, huma...
The Souf flé Theor y of Decentralization                                                                                  ...
Proposed Framework: (1)    Devolution in Virtual Enterprise               Based on   Soufflé Theory of Decentralization
Proposed Framework: (2)   Scale of devolution depends upon       the size of the Enterprise,       its resource base,  ...
Proposed Framework (3)        Extension of Soufflé Theory of Decentralization for                   Devolution in e-Govern...
Proposed Framework (4)           Virtual Enterprise E-Government is most famous social  virtual enterprise. So, we appli...
Proposed Framework (5)          Why Devolution in e-Government?   How should responsibilities for e-government establishm...
Proposed Framework (6)            Devolved powers            of local            government 1                       e-Serv...
Proposed Framework (7) “the sum of Devolution Powers (DP) of e-governance is directly proportional to the sum of Devolutio...
a real scenario   A Provincial Government initiated a    centralized web portal through an IT    agency of provincial gov...
a real scenario: Issues11 Local governments and 11 departments launched their   independent websites (deviation from centr...
Solution: Degree of devolution for avirtual enterprise   We have tested our framework for degree    of devolution on thre...
The impor tance level of decentralized choices for political, financial and administrative devolved powers Devolution     ...
Implementation      We considered three local governments.      We assess the political, Fiscal and Administrative matur...
Devolved Powers Powers to be devolved as per political, fiscal and administrative maturity of considered local government ...
Calculation of k valuek= # of devolved powers that exercised / total  decentralized choices     Local Govt.   Political k1...
Conclusion   It is analyzed that degree of devolution in e-governance    is proportional to other devolutions (political,...
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Devolution in a virtual enterprise

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E-Government as a virtual enterprise, having many vertical portals, works in collaborative network to deliver e-services. The decentralization in egovernance depends on how much a governance structure decentralizes its political, fiscal and administrative powers. E-governance devolution areas may be planning, business process re-engineering, change management, enterprise architecture, networks, portals, back-offices, e-services, etc. Improper devolution in e-governance may affect cost, implementation, manageability, trust, outsourcing and localization. In this paper, we analyze a centralized web portal with its outcomes and derive a framework for devolution in e-governance. We propose an extension in the Soufflé theory of decentralization to calibrate suitable degree of devolution in e-governance. At the end we explain our approach by applying it to a real scenario.

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  • e-Government leaders should consider the political, administrative and fiscal decentralization in the formation of e-Gov.
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Devolution in a virtual enterprise

  1. 1. M Kashif Farooq Lahore University of Management Sciences (LUMS), Pakistan Supervised by Dr. Shafay Shamail, Dr. M Awais Presented at PRO-VE089th IFIP Working Conference on Virtual Enterprises Poznan, POLAND. 8 - 10 September 2008
  2. 2. Springer published this paper as a bookchapter. Now this book is available at GoogleBooks & Amazon
  3. 3. Objective This paper presents a framework of devolutionfor a Virtual Enterprise (like e-government) Working as Collaborative Network
  4. 4. Issues Centralized Virtual Enterprise Decentralized Virtual Enterprise Devolution  Top-down  Political, administrative, fiscal
  5. 5. Centralized Initiatives Typical characteristics  all IT functions centralized in one organizational unit  generally limited IT costs but less effective  impacts IT governance by providing a generally tight governance model that is easy to enforce.
  6. 6. Decentralized Initiatives Typical characteristics  policy is required for  decision making, project management, portals, services, funding, revenue collection and operations  distributes IT functions between the various divisions or organizations  generally has a high coordination cost  IT governance is focused on the coordination effort between central and local activities
  7. 7. Soufflé Theory of Decentralization Scale of devolution depends upon the size of the country, its resource base, human capacity and governance style (Parker, 1995). The Soufflé theory of decentralization explains the role of political, fiscal and administrative devolutions and their result. We extend this theory for devolution in Virtual Enterprise.
  8. 8. The Souf flé Theor y of Decentralization Development Decentralization Choices System Outcomes System Results ImpactPolitical  Political Accountability Civil Liberties  Political Transparency Political Rights  Political Democratic Pluralistic  Soft/hard Budget  Increased Representation System Constraint IncomesFiscal & Financial  Resource Mobilization  Moral Hazard  Increased Fiscal Resources  Resource Allocation Productivity  Macroeconomic Fiscal Autonomy Instability  Increased  Fiscal Capacity Literacy Fiscal Decision-making  Responsive Services  Subnational  Decreased Subnational Borrowing Indebtedness  Effective Services MortalityAdministrative  Efficient Services  Administrative  Growth of Civil Administrative Structures Capacity  Sustainable Services Society etc. and Systems  Admin. Accountability Participation  Admin. Transparency
  9. 9. Proposed Framework: (1) Devolution in Virtual Enterprise Based on Soufflé Theory of Decentralization
  10. 10. Proposed Framework: (2) Scale of devolution depends upon  the size of the Enterprise,  its resource base,  human capacity, and  governance style. There are two types of devolution  Enterprise devolution  among multilevel governance structure  Portal devolution  among different agencies or departments
  11. 11. Proposed Framework (3) Extension of Soufflé Theory of Decentralization for Devolution in e-Governance Decentralization System Development System Results Choices Outcomes Impact e-Governance  Shadow Enterprise  Localization Architectures  Affordable and  Bridging the  Business Process Re- Secure e-  Informative Digital Divide engineering Services Society  Capacity  Change Management  Innovative  Cyber State Building Services  Development  Access for all  Cyber Laws  Operations
  12. 12. Proposed Framework (4) Virtual Enterprise E-Government is most famous social virtual enterprise. So, we applied devolution in virtual enterprise concept on e-government.
  13. 13. Proposed Framework (5) Why Devolution in e-Government? How should responsibilities for e-government establishment be divided among the various levels of government (national, regional, provincial, and local)? To what extent should a program be centralized (i.e.,run at a national government level) versus decentralized (i.e., run at local government level)? Which government agencies will be involved, e.g.,education, health and tourism agencies will be the partner of G2C: Government to Citizen portal? Should there be individual efforts to provide an Electronic Service Delivery (ESD) or the need of collaboration of agencies? To what extent should a program make use of citizens and other non-government resources? To what extent should technical staff and consultants be integrated within a single organization and inter-organizations?
  14. 14. Proposed Framework (6) Devolved powers of local government 1 e-Service delivery Local government 1 Devolved powers of local government 2 e-Service delivery Devolved powers Local government 2 of local government n e-Service delivery Local government n Figure 1 – Vertical Portal Having Devolved Powers
  15. 15. Proposed Framework (7) “the sum of Devolution Powers (DP) of e-governance is directly proportional to the sum of Devolution Powers related to Political, Financial and Administrative factors”. This can be represented in the following form: DPeGov= Devolved Power of e-governance DPPol = Devolved Power of Political DPFin = Devolved Power of Financial DPAdm = Devolved Power of Administration ΣDPeGov α (ΣDPPol + ΣDPFin + ΣDPAdmin) (1) ΣDPeGov = k (ΣDPPol + ΣDPFin + ΣDPAdmin) (2) ΣDPeGov = k1ΣDPPol + k2 ΣDPFin + k3 ΣDPAdm (3)
  16. 16. a real scenario A Provincial Government initiated a centralized web portal through an IT agency of provincial government To represent 35 local governments and 40 provincial departments. The IT agency trained personnel from portal partner departments and local governments to update contents.
  17. 17. a real scenario: Issues11 Local governments and 11 departments launched their independent websites (deviation from centralized effort)Portal partners wanted4. their own graphic design to represent their specific cultural, geographic and professional themes,5. multi language interface,6. local news highlights,7. independent URLs,8. innovative ideas,9. more administrative authority than just content updating and10. more dynamic pages, database access and interactivity
  18. 18. Solution: Degree of devolution for avirtual enterprise We have tested our framework for degree of devolution on three selected local governments A, B, and C These local governments launched their own websites and came out from the sphere of centralized portal. We estimated capability maturity of these local governments by analyzing their websites and estimating how much devolved powers have been exercised in the area of political, fiscal and administration
  19. 19. The impor tance level of decentralized choices for political, financial and administrative devolved powers Devolution EA BPR CM Cyber Laws Development Operations Powers Political High High Medium Medium Low Low Financial High High Medium Medium Medium LowAdministrative High High High Medium Medium Medium EA: Enterprise Architecture CM: Change Management
  20. 20. Implementation  We considered three local governments.  We assess the political, Fiscal and Administrative maturity in the governance of selected local governments Local Political Fiscal Administrative Govt. A High High High B Medium Medium High C Medium Medium Medium
  21. 21. Devolved Powers Powers to be devolved as per political, fiscal and administrative maturity of considered local government Local Powers to be devolved Govt. A All B CM, Cyber Laws, Development and Operations C Cyber Laws, Development and Operations
  22. 22. Calculation of k valuek= # of devolved powers that exercised / total decentralized choices Local Govt. Political k1 Fiscal k2 Administrative k3 A 1 1 1 B 0.67 0.67 1 C 0.67 0.67 0.67
  23. 23. Conclusion It is analyzed that degree of devolution in e-governance is proportional to other devolutions (political, fiscal and administrative). Proper degree of devolution is important for effective e- services. We have also proposed the extension in Soufflé theory and verified that it also supports the devolution in e- governance. We have applied our proposed framework of devolution in a virtual enterprise in the background of devolution in e-Government and calculated the relative degree of devolution in terms political, fiscal, and administrative strengths.

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