BUSINESS PROCESS MANAGEMENT

1. BUSINESS PROCESS MANAGEMENT EUPAN/eGovernment WG O-P Rissanen Ministry of Finance

2. BPM in E-Gov<Objectives of the Study><Research Methodology> 04.05.2006 Vienna Prof. Dr. Friedrich Roithmayr & Dr. René RiedlJohannes Kepler University LinzDepartment of Business Informatics – Information Engineering

3. Motivation for e-government • Reduction in administrative costs Governmental budgets are decreasing Direct measurement of costs is possible • Increase in service quality and customer satisfaction Increase in citizens‘ and firms‘ requirements Quality and satisfaction are incapable of direct measurement - Measurement with questionnaires that represent a subjective rating - Measurement by the number of complaints

4. Objectives of the study • Investigation of success factors and potential drawbacks for BPM in e-government • Identification of good and bad practices of reorganisation of government back office processes • Identification and systematisation of different business process management issues • Investigation of effectiveness and efficiency effects of business process management approaches • Giving recommendations for e-government decision makers in order to make e-government projects a success

5. Research Methodology • Theory-driven methodology (development of a research framework) • Empirical approach (all evidence must be empirically based, that is, dependent on evidence that is observable by the senses) • Qualitative approach (involves the use of qualitative data – such as text from interviews or questionnaires – to understand and explain social phenomena) • Interpretive approach (access to reality – given or socially constructed – is only possible through social constructions such as language, consciousness and shared meanings) • Case-based approach (small sample size, but in-depth analysis) • Explorative research (generation of hypothesis/theory) • Data collection (web-based questionnaire, experts in the field of e-government projects, from February to April 2006)

6. Research framework (basics) Success (Failure) of ane-government project Is X the cause of Y? If yes, what is the intensity of the effect?

7. Measurement of thedependent variable (Y)

8. Process effectiveness • The output of the process meets the requirements of the end customers • The output of every sub-process meets the input requirements of internal customers • The inputs from the suppliers meet the requirements of the process • Typical lack-of-process-effectiveness indicators are: • Unacceptable service quality • Complaints by citizens or firms • Backlog • Redoing completed work • Rejected output • Late output • Incomplete output

9. Process efficiency • Cycle time per unit or transaction • Process time per unit or transaction • Wait time per unit or transaction • Transport time per unit or transaction • Resources (in monetary units, people, space) per unit of output • Process cost • Poor-quality cost per unit of output

10. Business Process Management in E-Government A cooperation project between the Department of Business Informatics – Information Engineering at the University of Linz and the Austrian Federal Chancellery 04.05.2006 Vienna Prof. Dr. Friedrich Roithmayr & Dr. René RiedlJohannes Kepler University LinzDepartment of Business Informatics – Information Engineering

11. Differences between non E-government projects and E-government projects E-government • requires a holistic view of the (government) organization, its culture, systems, processes and stakeholders. There is a dynamic and long term of process change. • requires a long term view and flexible planning due to the iterative and disruptive nature of the change process. • The success of an E-government project depends on the cooperation of stakeholders. Government strategy and E-Business strategy must be coupled Non E-government • requires (in theory) a holistic view of the organization, its culture, systems processes and stakeholders. Applications follow very slowly the theoretical concept. There is a short term of process change. • requires a short term view due to the change process. • requires a short term view due to the change process.

12. Differences between non E-government projects and E-government projects E-government • poses a new challenge application independent (in terms of creation, maintenance, preservation, security, integrity and accessibility of records). • Speeding up business process and services are among the major motives for launching e-government projects. Business process improvement is the next step in e-government process management. Non E-government • poses challenges depending on the applications, • Process business improvement is an up growing motive in process management.

13. Differences between non E-government projects and E-government projects E-government • Stakeholder interests effect the development of e-government projects. • In order to be successful, before a e-government project is launched, a through understanding and detailed inventoryof business processes, IT, skills, environmental situation is necessary. • Candidates for e-government projects are: • core business processes, • G2G processes, • G2B processes, • Cross functional business processes. Non E-government • Stakeholder interests are important but they don't effect the development of the e-projects. • In order to be successful, before a project is launched, a detailed inventory of business processes is necessary. • Candidates for e-business processes are: • processes for cost reducing; • processes increasing performance.

14. Conclusion • Business process improvement is a good methodical approach for satisfying citizens expectations. • Business process improvement is a good methodical approach for cost reduction in E-government and for increasing efficiency. • Best case practices can help in spreading e-government concepts in the EU. • Develop an “E-government Process Index” (EGPI) • EGPI can help for determining priority and performance of individual processes • EGPI can help evaluating the E-government processes. • EGPI can help comparing E-government processes between different object (countries, applications, …) • EGPI can help in defining the IT-Strategy

15. Contact Department of Business Informatics – Information Engineering Johannes Kepler University (JKU) Linz Altenberger Straße 69 4040 Linz, Austria

16. Discussion • Is BPM a valuable methodology? • Are IT-departments key players? • Who should be responsible of the BPM projects? • Could BPM be a common interest for IPSG and eGov working groups?