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Public Administration in an E-economy

Public Administration in an E-economy. William H. Melody Managing Director, LIRNE.NET and WDR Professor, Technical University of Denmark, London School of Economics, & University of Witwatersrand Executive Seminar SLIDA, Sri Lanka, 20 September 2004.

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Public Administration in an E-economy

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  1. Public Administration in an E-economy William H. Melody Managing Director, LIRNE.NET and WDR Professor, Technical University of Denmark, London School of Economics, & University of Witwatersrand Executive Seminar SLIDA, Sri Lanka, 20 September 2004

  2. Characteristics of 21st Century Network Economies & Information Societies • Driven by the services sectors • Founded on info/communication networks • Dependent on effective reforms in the telecom sector- information infrastructure • Strengthening links among local, national, regional, international networks and markets

  3. Finance/ Banking Regional Development Disaster Management Media & Cultural Sectors Manufacturing Travel & Tourism Health/Medical Education/Training Government Services Applications Content Broadcast Media Film Libraries Software etc Interactivity (Instant & Delayed) Voice Data Sound Graphics Video Electronic Services (Pay TV, VAS, Internet) Multimedia, etc. (Public, User group, Private) Telecommunication Facilities Network (Information Superhighway) Computing / Information Technology Telecommunication Equipment Manufacturing INFORMATION INFRASTRUCTURE

  4. Global Economy and Information SocietiesFounded on Integrated E-ICT/Services • Converged ICT- Major Economic Sector • Resource Input to Production – all sectors • Provides – efficiency, opportunities for innovation • Extends the limits of markets – national, regional, global

  5. Major Forces Driving Change in the Shape of E-economy Markets • New technological opportunities - e-applications • Liberalization and upgrading of telecom networks and services – national policy • Liberalization internationally in many sectors – WTO • Intellectual property protection – content – WIPO • Rationalizing markets in human capital – liberalization, outsourcing, restrictions on movement

  6. The E-economy: Hope and Hype • Applications everywhere for productivity improvements and greater wealth for everyone • Information and knowledge as the engine of economic growth-human development • Dramatically reduce the digital divide and the wealth divide • Policies and programs for e-applications everywhere, E-commerce, E-gov’t, E-education, E-everything

  7. Applications of ICT Services: Specifics • Reduce costs • Improve services • Justify new services/products • Expand markets • Restructure organisations • Restructure industries and sectors (convergence)

  8. Why Not Adopt Applications ASAP? • Big investments required • Training and retraining • Depends on others in networks – suppliers, customers, competitors • Order of magnitude changes required • Uncertain benefits • Could make things worse

  9. Levels of Application • Task or activity specific • Organisation specific • Industry specific • Supply chain specific • Sector specific • Generic activity specific, eg. e-payments

  10. Application Examples • SWIFT-Funds transfer among big banks • EDI-Data Interchange through supply chain for an industry • JIT-Data flows to cut inventory and sometimes speed-up service time • Point of sale terminals and communication networks (payment and credit check) • ATM-faster access to cash, slower for service • Intranets and Internet

  11. Organisational Models • Trade/Commerce –B2B and B2C • What about SMB2SMB, B and C? • Government – national, provincial, local • Education – K-12, training, universities • NGOs • Other

  12. Sector Example: Banking & Finance • B2B – SWIFT • Credit authorisation – Pt of sale terminals • ATMs – access to cash • E-payments – B2B; some B2C and C2B • E-purchases – authorisation • Internet funds transfers – B2B; B2C; C2C • Note: Each step is for a very specific activity

  13. Generic Trade Activities (E-commerce) • Authorisation – eg digital signatures • Logistics (Transport) – delivery • Secure payment –greater risk • Contract enforcement – legal support • Protection from fraud • Assessing and establishing trust

  14. Steps in Application of E-services • Preparation – E-readiness • What specific activities? • Precisely how? • When? • With whom in supply chain? • With what possible short and long term consequences – financial and human resources

  15. E-Readiness Assessments • Information Infrastructure – access • VANS and Internet • ICT skills and capabilities • Transport/Logistics Infrastructure • Flexible organisational structures –eg outsourcing • Innovation & competitiveness in ICT sector and in business generally • Policy and regulation in ICT sector and in specific applications sectors

  16. Actual Implementation of E-services • Began with bottom-up, organisation specific applications • Extended to supply chains and corporate networks and shift to top-down applications • Driven primarily by the big players in the value chains • Competition becoming a more important factor between haves and have-nots • For future – network factors are key

  17. Developing Country Applications • Limited success so far; more barriers and fewer short term benefits • Pace being set primarily by value chain effects of big international players • Selected national applications where benefits exceed the costs • It is sometimes efficient to move at a slower pace with selective applications for priority local needs, and a focus on reducing barriers, especially access and VANS development

  18. Barriers to International Markets for Developing Countries • Infrastructure and services for e-economy development are important • But artificial trade barriers in agriculture, textiles, patents, intellectual property and other sectors by largest developed economies are far more significant • As artificial trade barriers are reduced, the benefits of e-economy development in developing countries increase dramatically

  19. Strategies for Developing Country E-economy Development • Expand activities in international value chains • National applications development on activities and at pace where benefits justify • Overcome key barriers of access, VANS development and application costs that now restrict development • Training as a continuous activity • Experiment widely to discover areas of local benefit

  20. Specific Problems for Public Administration • The fact that e-applications: • Enable core business activities makes them critical, strategic and unavoidable in modern day organizations • Expensive to develop makes it important for organizations to do it right the first time around • Complexity increases the risk of failure in the process • Successful development is critically dependent on better understanding of prevailing conditions and capabilities • Government lag private sector counterparts in embracing e-applications and are therefore under pressure from: • The business community to create an enabling environment for global business competitiveness. • citizens for similar treatment as they receive from their private sector counterparts.

  21. E-government: Definitional Positions • Introduced as the application of new technology for delivery of public services. • Efficient • Effective • responsive • The application of new technology to transform government, to make it • Better • Cheaper • faster • An information age government

  22. Categories of Applications • E-administration • Internal administrative efficiency • Cross-agency coordination, communication and information sharing • E-services • Information services • Transactional services • E-business • Procurement • Disposal of government assets • E-society • Giving citizens collective voice in the governance process • Participation in debates in public interest issues • Electronic voting

  23. E-Government: Categories of Services Online Transactional Services Online Communication Services Online Information Services

  24. Expected Benefits • Simplifying governance and government service delivery. • Integrating services • One-stop access • Multiple access options • Increasing availability and accessibility • Anywhere • Any time • By any means

  25. E-Readiness Assessment Tools

  26. E-Readiness Assessment Tools • Cover a wide variety of areas: • Network society • E-commerce • ICT/Internet diffusion • Government organizations • Only two specifically focus on government organizations • All define e-readiness in terms of • A set of factors or capabilities factors, such as leadership, infrastructure, access, connectivity, etc • Hierarchical levels depending on the sophistication of these factors

  27. Capability Maturity Levels

  28. Levels of Readiness for E-Government

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