Role of Private Sector In ICT4DEV and E-Gov – Raising The Bar

1. Role of Private Sector In ICT4DEV and E-Gov –Raising The Bar Accra 23rd February 2006

2. This Afternoon’s Agenda • RAISING THE BAR” • A serious drive to implement e-Gov and ICT4DEV will change the face of Ghana. • Is current Government strategy leading us in the right direction? • What are the current deficits in the country's implementation programme? • Are there alternatives to achieving the goal of making the country a leader in these endeavors? • Will a strong strategic focus on the dynamics of the marketplace lead to better results by delivering a true guide to action?  • The presentation will examine these issues and offer a top-level set of actions that can guide top policymakers in their efforts in this critical future-shaping endeavour.

3. Serious e-Gov and ICT4DEV Implementation Drive Changes The Face of Government …

4. Grasping The Nettle…Everything Changes Politics Management People ICT4DEV & E-Gov Have Potential To Reengineer & Reinvent Government From Top To Bottom Systems Processes At Stake Are Big Questions Of Greater Transparency, Accountability, Human Capital & Financial Efficiency

5. Principal EGov/ICT4DEV Benefit Is Empowering Citizens To Ask … • The E-Empowered • Citizen Is At The Center Of Government • Not At Its Periphery Why Do Roads Cost More To Build In Ghana Than Brazil Why Are Our Bureaucrats Living In The Non-eWorld Why Isn’t My MP Responsive To My Community’s Needs Why Do We Not Know Our ROGI Why , O, Why! Why Aren’t We Enjoying The Savings From Procurement The Nigerians Are Enjoying Why Are Our Political Parties Being Funded The Way They Are Alleged To Be Citizens Now Have Unmediated Access To True Workings Of Government

6. goals Strategy Research Foundation Executive SCORECARD BALANCED Feedback Communication STRATEGY Leadership Implementation actuals Business Common Platform For Analysis And Planning Processes EGov/ICT4DEV Are Powerful Innovations & Destabilizers At The Same Time • The Singapore EGov Experience • (www.ecitizen.gov.sg) • 1600 e-services Accessible • - 1300 Allow Online Transaction Completion • 3 Million Monthly Hits In Country Of 4 Million • Interaction Stream Provides Direction For Running Government Overlay analytic engine graphic A Live View Of e-Citizenry Going About Its Business. By Definition e-Citizens Are Forward-Thinking, Proactive Participants In Government & Set Tone For Rest

7. goals Strategy Research Foundation Executive SCORECARD BALANCED Feedback Communication STRATEGY Leadership Implementation actuals Business Common Platform For Analysis And Planning Processes A New Model Of Democracy Aborning… • The Singapore EGov Experience • (www.ecitizen.gov.sg) • 1600 e-services Accessible • - 1300 Allow Online Transaction Completion • 3 Million Monthly Hits In Country Of 4 Million • Interaction Stream Provides Direction For Running Government Parliament Executive Judiciary Citizens At The Center Of Real EGovernment Schemes Become The Government. The Government Becomes The Governed

8. Where Is Government Strategy Heading…

9. A Little Humor Goes A Long Way… In The Long Run We Are All Dead - Keynes The US Is Addicted To Oil – George W. Bush Ghanaians Are Addicted To Planning – Kofi Blankson Ocansey EGOV & ICT4DEV Are Specialized Run-Of-The Mill Telecosm Applications- Not Interesting Technologically

10. Ghana’s ICT For Accelerated Development Policy – Original Starting Point • Vision, Missions, Strategies And Policy Goals • The Vision For Ghana • The Policy Objectives • The Broad Policy Goals – The Cornerstone For ICTAD Policy • The 14 Pillars Of the ICT4AD Policy – Defining The Policy Priority Areas & Focus • Accelerated Human Resources Development • Promoting ICTs In Education – The Deployment & Exploitation of ICTs In Education • Facilitating Government Administration & Service Delivery – Promoting Electronic Government & Governance • Facilitating The Development Of The Private Sector • Developing a Globally Competitive Value-Added Services Sector --- A Regional Business Service & ICT Hub • Developing An Export-Oriented ICT Products and Services Industry • Modernization of Agriculture & The Development Of An Agro-Business Industry • Deployment & Spread of ICTs In The Community

11. Ghana’s ICT For Accelerated Development Policy • Developing a Globally Competitive Value-Added Services Sector --- A Regional Business Service & ICT Hub • Deployment & Spread of ICTs In The Community • Promotion of National Health • Rapid ICT & Enabling Physical Infrastructure Development • Legal, Regulatory & Institutional Framework Provisions • R&D, Scientific & Industrial Research Capacity Development • Promoting Foreign & Local Direct Investment Drive In ICTs • Facilitating National Security Law & Order

12. Ghana’s ICT For Accelerated Development Policy – Rolling Plans • Goal of [2003 – 2006] Rolling Plan: Support Development Of Economic Base & Environment For Accelerated Growth & Development For Transforming Ghana Into An Information-Rich Knowledge-based Society & Economy • Priority Areas • Accelerated Human Resource Development • Promoting ICTs In Education • Facilitating Government Administration & Service Delivery • Facilitating the Development Of Private Sector • Developing Export-Oriented ICT Products and Services Industry • Modernization of Agriculture & Development Of Agro-Business Industry • Developing Globally Competitive Value-added Servcies Sector • Deployment & Spread Of ICTs In Community • Promotion of National Health • Rapid ICT & Enabling Physical Infrastructure Development • Legal, Regulatory, & Institutional Framework Provisions

13. Ghana’s ICT For Accelerated Development Policy – Rolling Plans • Goal of [2003 – 2006] Rolling Plan: Support Development Of Economic Base & Environment For Accelerated Growth & Development For Transforming Ghana Into An Information-Rich Knowledge-based Society & Economy • Priority Areas • Promoting Foreign & Local Direct Investment Drive In ICTs • National Security & Law & Order • Strategic Focus Of Plan: Laying More Emphasis on ICT Deployment & Exploitation & Less Emphasis On Production, Development & Delivery Of ICT Products & Services • Goal of [2007 – 2010] Rolling Plan: Improve The Economic Base & Environment To Further Accelerate Growth & Development Towards Transforming Ghana Into An Information-Rich Knowledge-based Society & Economy

14. Ghana’s ICT For Accelerated Development Policy – Rolling Plans 2003 – 202? • Glacial Pace Of Change – Implementation Does Not Have To Be Protracted • Ignores The Fact That eGOV & ICT4AD Incorporate Relatively Mature Technologies & Practices That Are Well-Known Today • Major Obstacle To Success Is Political Will To Carry Logic Of Change To Its Conclusion Note Of Caution: The Plans Roll Out To The 2020’s. Remember, We’ll Either Be Dead Or Terminally Bored By ICT4AD

15. Current Deficits In Strategic Implementation Programme

16. At The Present Time…The Verdict On E-Ghana: Won’t Work!!!! • Comprehensive Plan • Lots Of Hard Work • Good Thinking • Abandoned By Creators • New Emphasis On Three Priority Areas Signals Beginning Of Move Away From Existing Document • Tighter Integration With Public Sector Reform Goals • Current Version Will Suffer Fate Similar To That Of Its Predecessor • No Money • Over-reliance On Donor Support • Ignores Several Real Funding Alternatives • Public Sector Reform Entity’s Power To Enforce Meaningful Change Not Apparent • No Real Private Stakeholder Consultation • No Guidance To Businesses & Insensitive To Market Dynamics

17. Yet…eGov/ICT4AD Must Not Be Allowed To Fail • The Business Of Government Is At This Stage The Business Of Ghana • Business Adoption Of ICT In Economic Growth Areas Will Be Spurred By Success Of Governmental Programme In The Following Areas: • Greater Technology Enskilling • Telecosm Managerial Development • Freeing Up Of Resources Engendered By More Efficient Government • Success Of All Other Governmental ICT Goals Contingent On This Success : • Development Of Indigenous Business Processing Outsource Resource • Creation Of Technology Corridors • Information –based Society • Finally, This Should Be Cornerstone Of Billion-Dollar Local High-Growth ICT Industry There’s Still Time For Sapient Stakeholder Action To Re-Orient Government Programme – Given Belief That Failure Is A Non-Option

18. d Does Realistic Market-based Strategic Pathway Exist?

19. Driving Toward ICT4DEV & E-Gov Success – Understanding The Market Legal Framework Application & Content Dev Infrastructure Service Provision Strategy Regulatory Infrastructure Education Building A Nation-Specific ICT4DEV & E-GOV Environment Requires Creation Of Technology & Information Infrastructures

20. Localization of Content On Internet Creation of Legal Framework For Content Management & Intellectual Property Including Negotiation of International Treaties Governmental Direction Regarding Treatment of National Records Driving Toward ICT4DEV & E-Gov Success Application & Content Development Information Infrastructure • Approach • Light, Cooperative, Or Comprehensive • Technology Set • Network Choices (WiFi, Fixed Loop) • User Devices (Mobility) • Competition In Telephony and Internet Provision Building A Nation-Specific ICT4DEV & E-GOV Environment Requires Private Sector Participation Throughout

21. Laws Governing Electronic Business & Commercial Transactions Contracts & Transaction Fulfillment Authentication Omnibus (Commercial/)Criminal Or Multiple Laws (“Cyberlaws”) Creating Trusted & Secure Environment Criminalization of Environmental Disruption – Virus Attacks, Etc. Computer Emergency Response Team (CERT) Privacy & Data Protection Rules Driving Toward ICT4DEV & E-Gov Success Legal Framework Education • Bridging Digital Divide • Input Into Information Infrastructure • Provision Of Affordable ICT Goods & Services • Melding ICT Into Traditional Educational Infrastructure • Informatizing Education, e.g. • Use of ICT To Deliver Educational Paradigm Shift Building A Nation-Specific ICT4DEV & E-GOV Environment Requires Private Sector Participation Throughout

22. Vision Leadership (Often Heads of Gov’ts.) Targets & Milestones Roles of Key Actors Private Sector – Strengthening Local ICT Actors Individuals Government Technology Legal Framework Education Driving Toward ICT4DEV & E-Gov Success Strategy Regulatory Infrastructure • Independence • Convergence • Basing Business Decisions On Business Economics • Regulatory Change’s Role In Functioning Of Markets • Understand Constraints To Change • Drive Toward Mutually Consistent Solutions Strategic Choices Should Provide Direct Path To Action – Regulation Should Truly Level The Playing Field

23. Individual Usage Individual Readiness Market Environment Political & Regulatory Env’ment Business Usage Business Readiness Government Usage Government Readiness Infrastructure Env’ment Market Assessment: Network Readiness Index Framework Subcomponent Index Component Index Environment Main Index Networked Readiness Index Readiness Usage Definition: Degree Of Preparation Of Nation Or Community To Participate In & Benefit From ICT Developments Adapted From: Zhou; “Global Perspectives on e-Government

24. Creating Sustainable Path ForwardUsing Top-Level NRI Analysis Environment Index Rankings Networked Readiness Index Rankings Readiness Index Rankings Usage Index Rankings Opportunity Map Points To Prioritization of Readiness & Usage Variables – But Overall Improvement Is Meritorious Goal

25. Two Can Play The Game…Adapting Strategy To The Market

26. Individual Usage Individual Readiness Market Environment Political & Regulatory Env’ment Business Usage Business Readiness Government Usage Government Readiness Infrastructure Env’ment Market Assessment: Network Readiness Index Framework Subcomponent Index Component Index Environment Main Index Networked Readiness Index Readiness Usage Definition: Degree Of Preparation Of Nation Or Community To Participate In & Benefit From ICT Developments Adapted From: Zhou; “Global Perspectives on e-Government

27. Market Assessment: NRI Environment Component Variables Subcomponent Index Assessment Of Human Resource & Ancillary Business Base Needed To Support Knowledge-based Society Market Component Index Assessment Of Impact of Polity, Laws,& Regulations & Their Implementation On ICT Development & Use Environment Political & Regulatory Assessment Of Availability Level & Quality Of Key Access Infrastructure Infrastructure Measure of Conduciveness Of Country Environment For Development and Use Of ICT Adapted From: Zhou; “Global Perspectives on e-Government

28. Market Assessment: NRI Environment Variables Variables Provide Guideposts To Target Areas Within Component

29. Market Assessment: NRI Readiness Component Variables Subcomponent Index Assessment of Individual Readiness To Utilize & Leverage ICT Individual Component Index Assessment of Business Readiness To Participate In & Benefit From ICT Readiness Business Assessment Of Governmental Readiness To Employ ICT Government Overall Measure of Capability of Economy’s Principal Agents To Leverage ICT’s Potential Adapted From: Zhou; “Global Perspectives on e-Government

30. Market Assessment: NRI Readiness Variables Variables Are Measure Of National Potential

31. Market Assessment: NRI Usage Component Variables Subcomponent Index Assessment Of Citizens’ Level Of Adoption and Usage Of ICT Technologies Individual Component Index Assessment Of Businesses’ Level Of Deployment and Usage of ICT Usage Business Assessment Of Level Of Usage By Government of ICT Government Measurement of Principal Stakeholders’ Degree of ICT Usage Adapted From: Zhou; “Global Perspectives on e-Government

32. Market Assessment: NRI Usage Variables Each Variable Has Significant Private Sector Component

33. Creating The Opportunity Map…Determining The Effort & Budget

34. Creating Sustainable Path ForwardUsing Top-Level NRI Analysis Environment Index Rankings Networked Readiness Index Rankings Readiness Index Rankings Usage Index Rankings Opportunity Map Points To Prioritization of Readiness & Usage Variables – But Overall Improvement Is Meritorious Goal

35. Creating Sustainable Path ForwardUsing NRI Analysis – The Environment Market Rankings Environment Political & Regulatory Rankings Infrastructure Rankings Environmental Opportunity Prioritization Lies Within Market and Infrastructure Zones

36. Creating Sustainable Path ForwardUsing NRI Analysis - Readiness Individual Rankings Readiness Business Rankings Government Rankings Readiness Opportunity Prioritization Lies Within Individual and Business Zones

37. Recapping Our Action Steps…

38. Strategic Overview Of EGOV Market Players • Government Regulation • Government As Buyer • Client – Skills Development In Subject Matter • Developer Of Funding Mechanisms Simple Framework Can Drive Powerful Actions At Top Of Food Chain • Competition • Other National Priorities • Technology Parks • Industry • End-User Segmentation • Training • Marketing • Fulfillment (App & Cont Dev) • Aftercare EGOV/ ICT4AD • Market For Complements • Finance • Marketing • Development Expertise • Research & Strategic Consulting • Market For Substitutes • Other Organizations & Systems That • May Offer Substitutes For EGOV Services

39. Stages Of Economic Development • Investment-Driven Economy • (e.g. Taiwan) • Innovation-Driven Economy • (e.g. Japan) • Factor-Driven Economy • (e.g. Ghana) • Input Cost • Dominant • Driver: • Unique Value • Efficiency • -Efficient Production Of • Standard Goods • Standard Services • Sources of • Competitive • Advantage • -Basic Factor Condition • Low-cost Labour • Access To Natural Resources • -Manufacturing at Global Technology Frontier Using Advanced Methods • -More Sophisticated • Designed Externally • -Innovative Goods And Services • -Commodity Production • -Simple Goods Designed Elsewhere • Firm Output • Technology • Assimilation • -Imports • -FDI • -Imitation • -Internal Development Compatibility • -Imported • -Licensed • -JV • -FDI • -Imitation • -Capacity To Improve • -High levels of Innovations are Institutionalized And Are Properly • Rewarded • -Price • -Investment In Efficient Infrastructure • -Modern Production Method • Competitive • Variable Direct • Access To • Consumers • -OEM • -No Direct Access • Value-chain • -Limited • -Extended • -Deep With Strong Clusters • Focus • -Labor-Intensive Manufacturing • -Manufacturing;Outsourced Services • Exports • -Financial Crisis and External • -Sector-specific Demand Shocks • Vulnerabilities • Global Economic Cycles, Commodity • Price Trends, Exchange Rate Fluctuations • -Resilient to External Shocks

40. Investments • Capital • Labour • Assessment • Comprehensive • Rigorous First Questions – Laudable Government Programmes Or Positive NPV Projects? E-Gov & ICT4DEV Projects Supply Demand Positive NPV Projects Notwithstanding Allure Of Government Largesse, Private Sector Pursuit Of ICT4DEV & E-Gov Projects Must Be Disciplined By Positive NPV Mindset

41. A Quick Primer To Building Successful ICT4DEV/E-GOV Businesses • Understand The Market • How Big Is It? • How Fast Is It Growing? • What Should Your Position Be In It • Can You Make Money In It With The Skill And Capital Set Available? • Does The Client Have The Money? If We Do This Properly E-Gov (From Strategy Through Reengineering Through Implementation Through Outsourcing) Should Be A Self-Financing Billion Dollar Enterprise Starting Tomorrow…And Should Grow Substantially In Out-Years

42. Horizontal Vertical WhichInformation & Technical Disciplines WhichSectors & Subsectors The Demand Side Of The Equation – Both Dimensions Private Sector Plays Can Be Pure Play In Either Vertical Or Horizontal Dimensions Or Hybrid Of Both

43. Infostate Aggregation of Infodensity & Info-use Sum of all ICT Stocks (Capital & Labour) Infodensity Info-use Consumption Flows Of ICTs/Period ICT Uptake ICT Capital ICT Intensity ICT Labour Goods Services Networks Machinery Skills Internet Cable Telecommunications ICT Economy Profile ICT Economy Analysis Is Not Restricted To Pure ICT Plays, Is Cross-Sector, Offering Sum Of ICT Investment Possibilities

44. goals Strategy Research Foundation Executive BALANCED SCORECARD Feedback Communication STRATEGY Leadership Implementation actuals Business Common Platform For Analysis And Planning Processes Combination Of Serious Analytical Performance Management Intelligence And Process View Of Interactions • Embarking On PSM Journey Has Profound Implications For Running Government’s Management Of Accountability

45. Thank You!…

46. This Presentation’s Focus Is Mostly On Building Businesses In ICT4DEV & E-GOV Not On Examining Rationale For ICT4DEV & E-GOV Change to discuss changes on systems, processes, people and management Issue Today Less The Why Of ICT’s Role, And More The Role of Building Sustainable Businesses Needed To Promulgate ICT4DEV & E-GOV’s Goals

47. Yet…eGov/ICT4AD Must Not Be Allowed To Fail • The Business Of Government Is At This Stage The Business Of Ghana • Business Adoption Of ICT In Economic Growth Areas Will Be Spurred By Success Of Governmental Programme In The Following Areas: • Greater Technology Enskilling • Telecosm Managerial Development • Freeing Up Of Resources Engendered By More Efficient Government • All Other Governmental ICT Goals: • Development Of Indigenous Business Processing Outsource Resource • Creation Of Technology Corridors Insert recap of deficits and teaser about what to do: FUNDING MECHANISMS DELINEATION OF ROLES PRIVATE SECTOR SHOULD PLAY LINKAGES TO MARKET-BASED STRATEGY THE BUSINESS OF GOVERNMENT IS BUSINESS OF GHANA – E.G. BPO SUCCESS WILL DEPEND ON SUCCESS OF EGOV TRANSFORMATION BECAUSE OF IMPACT ON SYSTEMS, PEOPLE, PROCESSES AND MANAGEMENT