Value of ICT and eGovernment

Objectives
• After completing this unit, you will be able to:
• Explain the need for eGovernment in digital world
• Define Information Systems, Information Technology, and eGov
components
• Explain the difference between traditional and ICT-based modern
governments
• Explain the value that information technology brings to economis,
organizations, and citizens
• Explain the importance of eGov for least developed and developing
countries
• Analyze cases of success and failure with information technology, and
• Describe the knowledge needed to be a successful eGov manager
Contents
• eGovernment in the Digital Age
• IT, ICT and IS
• The Paradigm Shift
• Economic Value of ICT
• Nature of Public Sector Organizations
• Value of ICT for Public Sector Organizations
• Challenges for IT Management
• What Public Sector Managers need to know about eGovernment
1.1 eGov in the Digital Age
• Interacting with different kind of consumer – the eCitizen
• Global internet usage dramatically (by 741% from 2000 to
2014)
• Number of current mobile subscribers exceed 6 billion
(equivalent to 87% of world’s population)
• Social networking has become a global phenomenon making
no boundary for digital reach.
• Thus, modern citizen, who have the habit of banking and
buying tickets online, expect similar service from their
government
• Means, the political leaders can no longer ignore IT and eGov
in their political agenda
• Mean : that government services can be modernized
 eGov in digital age (2)
• eGov can benefit customers and citizens by not only
improving service delivery through service
transformation
• But also indirectly by helping the country’s overall
economy and to achieve more productive, efficient
and accountable management system
• Offers of number potential benefits
• Citizens can use improved service
• Can more easily provide feedback to government
• eGov aims to achieve greater efficiency
1.2 IT, ICT and IS
• IT refers to all the hardware and software that supports the
“information system”
• ICT is a term used interchangeably with IT
• Has a wider meaning because it explicitly includes
communication technology and network
• Term ICT is more widely used in developing countries
• IS is the set of interrelated components involving collection,
processing, storing, and distribution of data that
communicate information and support decision making
• Help managers and workers analyse problems, visualize
complex subjects, and create new products
• ICT is only a portion of the IS whole, which comprises
hardware, software, and communication equipment.
1.3 The Paradigm Shift
• ICT revolution also creating a “knowledge-based society”
and “knowledge-based economy”
• eGov has emerged as one of the most powerful and
important means to drive the transition toward a
knowledge-based society and “knowledge-based economy

Raw Data Information Knowledge

• Knowledge and information are critical organization and

strategic assets
• Can be regarded as the life blood of an enterprise
• The more up-to-date and accurate the information and
knowledge is, the greater the advantage one possesses.
The Paradigm Shift (2)
• Organization survival in the 21st century largely depends on
their ability to process and capture information, transform it
into usable knowledge, and disseminate it efficiently.
• Knowledge work activity is “productivity” – that is, the
ability to create business value at the lowest cost.
• For public service organization, efficiency and effectiveness
typically contribute to productivity
• How this knowledge work can be accomplished effectively ?
• This is the role of ICT-driven smart “information systems”,
which play a vital role in the activities of knowledge work.
• Smart IS can provide a competitive advantage
• Today, in the complex and rapidly changing 21st century
society, the traditional hierarchical model of government
does not meet citizen’s demands.
The Paradigm Shift (3)
• Its influence and effectiveness are gradually fading.
• Governments who still use this model are constantly being
challenged by the need to solve ever more complex problems
• Modern government are thus gradually shifting to amore people-
centric and eGov-friendly organizational model to produce public
value.
• Characteristic of old and new organizations (Kernaghan, Marson,
Borins, 2000) :
Old colonial organizations New organizations (eGov friendly)
- Strictly hierarchical Flat and collaborative
- All power resides at the top Distributed power & responsibilities
- Rule-centered work processes People-centered work processes
- Top down/one-way inf flow Multidirectional inf flow
- More status quo oriented More result oriented
- Centralized structure Decentralized structure
- Teams work within indiv dept Teams work collaboratively across dept
The Paradigm Shift (4)
Senior
Manager/Director

Executives Executives Executives

Layers of middle managers

Citizens / Customers

Senior Manager/Director

Team A Team B Team C Team D

(Finance) (marketing) (Accounts) (HR)
Corporate
Database/ Delivery Channels
Network
Citizens/ Customers
1.4 Economic Value of ICT
• The value of ICT-related initiatives is often difficult to measure
• Cannot be determined by traditional cash flow analyses or by
norms of economic rationality
• Dimensions of value : product quality, timeliness, customization,
convenience, variety, and so on.
• There has been a long debate about wether computers contribute
to productivity growth.
• Number of studies show significant benefit from ICT adoption in
an eGovernment framework (NOEI, 2003; OECD, 2003)
• Research shows that ICT contributes to productivity growth if
used in the right way and managed effectively.
1.5 Nature of Public Sector Organizations
• Significantly differ from that of private organizations
• The consumer of public service organizations (i.e. citizens) cannot
switch to a different service delivery organization.
• Hence, public service organizations are not pressured by
competition to improve their service and business.
• While earning profit is likely to be the key driver for private
organizations, it could be entirely different for public sector
organization. Ex : providing social welfare services to citizens
does not necessarily aim to generate revenue
• The public sector is an organ of the state
• Its rules and regulations are strictly bound, and change may
require parliamentary intervention
• Another difference is that public sector service delivery is
targeted toward a market larger than that private organizations
(Bozeman & Bretschneider, 1986; Bretschneider, 1990)
1.6 Value of ICT for Public Sector
Organizations
• Productivity growth does not come from working harder .
• It comes from working smarter, which implies adopting new
technologies and new techniques for production (Brynjolfsson &
Hitt, 1998)
• ICT’s impact is not immediate in nature like many other more
tangible business resources and activities.
• Public value of ICT can be grouped into 4 categories (Liu, Derszi,
Raus & Kipp (2008, p 90) :
• Financial Value
• Social Value
• Operational (Foundation) value
• Strategic (Political) value
1.6 Value of ICT …..(2)
The major advantages of eGovernmentcan be listed as :
• Overall efficiency gains and cost reduction for the government
• Faster and quality service delivery to citizens
• Increased transparency and accountability
• Reduced corruption
• Reduce workload for staff
• Improved management of government resources
• Increased service capability
• Improvement in quality of decision making
• Simple and more integrated processes
• Less double handling and avoidance of human error
• Improved project management
• Avoid redundancy by using systems developed by other agencies
• Better diffusion and promotion of ICT in other sector of society
1.6 Value of ICT …….. (3)
1.6.1 Some real examples
• Time Saving
• Timely response and inter departmental cooperation
• Better management and control
• Cutting age solutions

1.6.2 Success and Failure Cases with ICT

• Knowledgeable about the opportunities that ICT can bring
• Understand that investments in ICT should be aimed at gaining
clear and identifiable benefits for the organization
• Institute appropriate governance procedures in planning for ICT,
managing ICT projects, and monitoring, controlling, and reviewing
the use of ICT resources across their organization
1.7 Challenges for IT Management
• Top level organizations executives may have little understanding
of, and little interest in ICT
• Managers need some knowledge of both ICT and the management
skills needed for administration and managing people
• The organization may be reluctant to resource ICT properly.
• The ICT may be critical to an organization’s operations and
reliability is essential, even if the ICT is not well resourced.
• ICT systems are often large and complex, which means that they
are difficult to develop, install, and maintain.
• Gobalization of ICT system (e.g., Internet application) means that
the system can have many links over large geographic area, which
creates more complexity.
• Rapid technology change in software and hardware means that it
can be difficult to keep pace
• Staff often have difficulty expressing their requirement for new
system
• People, in general, tend to resist change because they fear
1.8 What Public Sector Managers need
to know about eGovernment ?
It is important for all executives and managers who have any
responsibility for ICT in their organizations to have knowledge that
will enable them to ensure that ICT is used effectively and to deal
with challenges. They should have knowledge of following topics :
• ICT Governance
• Strategic Planning for ICT
• Preparing business cases & evaluating returns
• Managing and controlling ICT projects
• Technology and industry trends
• Current application software packages
• ICT operational (service) management
• Managing human resources
• Change management, and
• The security of systems
Question & Answers