ICEGOV2009 - Tutorial 5 - Part 1 - Strategic Impact of e-Governmenton Economy and Society

(c) W. Cellary 2009, slide 1

Wojciech Cellary

Department of Information Technology

The Poznan University of Economics

Mansfelda 4

60-854 Poznań, POLAND

e-mail: [email protected]

www: http://www.kti.ae.poznan.pl/

Strategic Impact of e-Governmenton Economy and Society

Part one


Three challenges

information society

e-business

e-government

Realization of processes via Internetusing text, data, voice, video

mean

social processes

business processes

administrative processes

fixedmobile

digital TV


Strategic social issues


Thinking about the futureof a society

In long term, future of a country depends on young generation

Young generation is generally better educated than the old one

Young people will be fine in the country if they find job corresponding to their education, i.e., knowledge-based job

It is not possible to create enough such job positions for the whole young generation in the public sector only, so it is necessary to stimulate knowledge-based economy

To be well paid, knowledge workers have to be efficient; efficiency depends on the number of people served per time unit

To be efficient, knowledge-based job must be done electronically

Future of a society depends onelectronic knowledge-based economy


Generation change in Poland

Persons of age 45-60

„Governing” generation „Future” generationPersons of age 19-24

11%

has university education

49%

is studying at universities

Education


Social cohesion

Educated peopleneed

knowledge-based job

Non-educated peopleneed

knowledge-based services


Strategic goalof each government

knowledge-based job for well educated young people

and

knowledge-based services for the whole society and business

Developmentof electronic, knowledge-based

economy


Are not possibilitiesof a government overestimated?

Government may create conditions to develop electronic knowledge-based economy using e-government as a tool:

developing e-government in a rightway

permitting businesses to develop andto provide

augmented and integrated electronic services

based on data and services coming from the public sector

How a government may develop economy?

a role of businessin e-government

a role of e-governmentin business


e-Business and e-GovernmentRelationships

Innovative business is alwaysmore advanced than e-government

However

e-Government should be more advanced thantraditional business to stimulate its transformation


Transformationof Business

into e-Business


Digital product and service

document

money

piece of authorship

software

Digitized informationbeing an object of business


Common feature

digital product and digital service

delivered

provided

through

the Internet(mobile and multimedia)


Electronic economy

Oldeconomy

Neweconomy

Commodity:

tangible product and service

Commodity:

digital product and service

Digital product and service as a means

of business processes realization

Tangibleproductsector

Intangibleproductsector


Electronic business

Application of digital products and services

to business process realization

Business process realization through the Internet

Promotion

Negotiations

Ordering

Delivery

Payment


Electronic economy

Electroniccommerce

Application of network to access

clients and suppliers in order to

overcome geographical, time and

cost constraints limiting

income creation

Increased demand forproducts and services

Teleworking

Application of network to access

people in order to

overcome geographical, time and

cost constraints limiting

employment

Increased supply for knowledge and know-how


Main advantagesof business process realization

via Internet

time - shorter time of realization of business processes and extended availability

costs - reduced costs of realization of business processes

geography - independence of business processes from geographical location

automatic - a possibility of automatic reaction to a reaction signal initiating a business process


Current business

Features of electronic information and communication

cause

being „on-line”in space without geography

Dynamism and diversity

getting information

from everywhere in real time

possibility of being in contact

with everybody anytime


Dynamism

markets

finances

customers, suppliers, business partners

technology and methods of work

software used to work

work organization

law

Constant changeability:


Diversity

geographic diversity

legislative diversity

cultural diversity

divers markets of products

divers markets of services

Diversity in two scales:

Micro-scale

Macro-scale

aspiration to realize holistic customers needs


Proper organization

Dynamic cooperationof diverse business and administrative units

NVONetwork Virtual Organizations


Network Virtual Organization

A set of diverse units cooperating via net

presented to the clientsas if they are a single organization


Two processesof organization transformation to NVOs

Top down

Bottom up

Decomposition of hierarchical organizations

Integration of small and medium size units


Decompositionof hierarchical organizations

In the paper era, when information flow was slow, costly and geography dependent, hierarchical organizations were efficient

It was reasonable and justified to assume rigid roles and functions of organizational units, as well as their hierarchical structure

Organizationsin the paper era


Decompositionof hierarchical organizations

In the electronic information era, decisions may be made basing on communication, i.e., information exchange, instead of rigid rules and functions fixed in advance

Then, a flat network organization provides more opportunities for business process optimization and better possibilities to adapt organizations to rapid changes on the markets

Organizationsin the electronic information era


Integrationof small and medium size units

Inclusion of small and medium size units to NVOs coming from decomposition of hierarchical organizations

Self-organization of small and medium size units into NVOs to offer more complex products and services on the market and to improve their competitive position


Main feature of an NVO

Focusing on improvement of own core competences

and entrusting all other functionsto partners


Functional transformation

Out-tasking

Outsourcing

The out-tasking enterprise retains control over

the scope and the way a process is performed by

a partner enterprise

The outsourcing enterprise entrusts control of the

entire process to a partner enterprise

well known method

relatively new method


Criteriaof functional transformation

Enterprise mission critical activities

Enterprise non-mission critical activities

Risk to business

Differentiation from competitors

Enterprise core activities

Enterprise context activities

Activities which, if performed poorly,pose an immediate risk to the enterprise

Activities which directly contribute to thecompetitive advantage of the organization


out-task

outsource out-task

keepEnterprise

Partner(out-tasking)

Partner(outsourcing)


Ris

k t

o b

usin

ess

Transformation


non-missioncritical

activities

missioncritical

activities

coreactivities

contextactivities





Ris

k t

o b

usin

ess

An exampleof a telecommunication operator


non-missioncritical

activities

missioncritical

activities

coreactivities

contextactivities

Enterprise

switching services

billing services

cleaning services

accounting services


Question

By integration of cooperating computer management systems

By integration of cooperating people into a virtual team

How to out-task,but retain control

on the way a task is performedby an external partner?

Answer


Ris

k t

o b

usin

ess

A picture of an NVO




non-missioncritical

activities

missioncritical

activities

coreactivities

contextactivities

Enterprise

Integration of computermanagement systems

virtualteam



NVO Integrative Portal

at theindividuals

level

at theorganization

level

integration ofindividuals

from different partner unitsinto a virtual team

integration of:• data• systems• business processesfrom different partner units

Role of the portal:facilitation of e-cooperation by integration


Integrationat the organization level


Approaches to integration

Control of out-task processes requires integration of:

data

software systems

business processes

There are two approaches to integration:

standardization

intermediation


Standardization

Standardization of:

data

software systems, and

business processes

is far the best method of integration from the operational point of view

Standardization eliminates or reducesintermediate processing making integrated processing easy and cheap

Standardized is the NVO middleware

direct use of middleware standards

translation of partner unit standards to the middleware standards


Standardization

If standards used in an NVO are widely accepted, standardization provides onlylimited risk to a unit

If the required standards are internal de-factostandards of the dominating partner within an NVO, risk for a partner unit related with the acceptance of those standards is higher

internal de-facto standards create dependence

standards accepted within an NVO are not necessarily optimal for activities outside the NVO

standard solutions reduce costs, but do not provide competitive advantages

Standardization is a good method of integration tightly coupled NVOs


Intermediation

Intermediation is a good method of integration for loosely coupled

organizations

Intermediation conserves autonomy

of a partner unit and permits to gain

competitive advantages following from its non-standard solutions


Intermediationby software agents

In case of intermediation within an NVO, a software agent observes data of the partner unit, which reflect the current status of its business processes, and reports to the NVO management system all interesting events

Software agent is an autonomous program that independently performs

given tasks at a given place and a given time according to the pre-programmed orders of its owner


Integrationat the virtual team level


Virtual team

An NVO requires a virtual team of representatives of partner units who mutually cooperate via network to achieve NVO goals

A role of the Integrative NVO Portal is to transform a set of representatives into a virtual team providing them with appropriate information, knowledge, and cooperationtools

Cooperation tools are mostly the same as in the case of a collocated teams:

Project management tools

Time management tools

Document management tools

Change management tools

Access to NVO databases and knowledgebases

Difficulties come from the fact that partner units are by definition heterogeneous to achieve complementarities:

different organizational cultures and determining factors

often different national cultures and determining factors


Particular roleof the NVO Integrative Portal with respect

to virtual team management

Collaboration stimulation shy people do not necessarily have less valuable ideas

Building common organizational culture valuation of right behavior

Facilitating experience sharing as a way to share tacit knowledge

expression of tacit assumptions as a part of tacit knowledge

Achievement of common understanding common understanding is different from agreement

explicit confirmation as a substitute of unavailable body language

the best way to confirm understanding is to say what to do

Conflict management human mediation

Providing a channel for non-orthodox ideas as a source of innovation

“coffee machine” relationships


Conclusions

NVO is a right answer to challenges of globalized, diversified, and dynamic economy

NVO needs more than e-trade and outsourcing,namely, it needs e-collaboration and out-tasking

Right tools to integrate management systemsare available:

middleware, also: web services, service oriented architecture

agents

Right tools to communicate within virtual teams are available:

email

communicators

chats

forums

RSS

VoIP

teleconferencing

videoconferencing

wikis

blogs


Conclusions

A challenge is to developa culture of e-collaboration

in culturally diversified world


Thank you

Wojciech Cellary

ICEGOV2009 - Tutorial 5 - Part 1 - Strategic Impact of e-Governmenton Economy and Society

Education

Transcript of ICEGOV2009 - Tutorial 5 - Part 1 - Strategic Impact of e-Governmenton Economy and Society