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    eGovernment

    Role and Challenges of CIO

    Public Private Partnership (PPP) in

    eGovernment

    Examples of PPP

    ConclusionKong Ban YipCountry Director NCSI Lanka &

    DirectoreGovernment ConsultingNCS Pte Ltd

    25th September 2006

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    Government Service Transformation

    Online services is but a starting point to e-Government.

    ee--Government isGovernment is

    . e-Government is about improving and enhancing the way you work

    it is about accountability to your people and the business

    a transformation of the way the government serve ia transformation of the way the government serve its people.ts people.

    a transformation to achievea transformation to achieve

    Service Level Experience for its PeopleService Level Experience for its People

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    Copyright 1996 - 2006 NCS Pte. Ltd. All Rights Reserved.

    B U S I N E S S S E R V I C E A R C H I T E C T U R E

    I N F R A S T R U C T U R E A R C H I T E C T U R E

    People Hub

    EstablishmentHub

    Land Hub

    A P P L I C A T I O N A R C H I T E C T U R E

    D e l i v e r y C h a n n e l s

    In format ion

    Bank

    E N T E R P R I S E I T A R C H I T E C T U R E

    Management

    Nation- Wide ICT Infrastructure

    E-Government Supporting Infrastructure

    Government to Citizen Government to Business Government to Employees

    I N F O R M A T I O N A R C H I T E C T U R E

    Retrieval Analysis

    eBillingeEducation

    eMotoring eStatistics

    eEmployment

    eTaxFiling

    eHealtheSERVICES

    S e r v i c e O r i e n t e d P l a t f o r m

    Education Transportation

    Justice & Security Building

    Utility

    Environment

    Employment

    Social & Community

    Government Shared Services

    eProcurementHR Financial Gov Directory

    Government Backend Services

    S

    T

    A

    K

    E

    H

    O

    L

    D

    E

    R

    T

    RA

    N

    S

    I

    T

    I

    O

    N

    F

    R

    A

    M

    E

    W

    O

    R

    K

    E

    -

    G

    O

    V

    E

    R

    N

    AN

    C

    E

    F

    R

    A

    M

    EW

    O

    R

    K

    B

    U

    SIN

    ESS

    MA

    N

    A

    GE

    M

    EN

    T

    TEC

    H

    N

    ICA

    L

    STA

    N

    DA

    R

    D

    S

    Government Benefits

    Healthcare

    Define Value .Starting Right

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    ICT Channels in Sri Lanka

    Telephone Main Lines (2004) 51 per 1000 people

    Mobile Subscribers (2004) 114 per 1000 people

    PCs (2004) 13 per 1000 people

    Figures from WB

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    Focusing on eGovernment Implementation

    eGovernment Policy

    eGovernment Design

    Project Concept

    Project Execution

    Project Maintenance

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    M A N A G E M E N TA N A G E M E N T

    I M P L E M E N T A T I O NM P L E M E N T A T I O N

    C O N T R O LO N T R O L

    P O L I C YO L I C Y Establish IT Vision, Set Enterprise DirectionEstablish IT Vision, Set Enterprise Direction

    Project Approval for large budget projects.Project Approval for large budget projects.

    Establish/Approve IT Policy, Budgets, Goals, ObjectivesEstablish/Approve IT Policy, Budgets, Goals, Objectives

    Develop & recommends IT resource policies / proceduresDevelop & recommends IT resource policies / procedures

    Controls the implementation of the Policies/ProceduresControls the implementation of the Policies/Procedures

    Govern the Architecture and Standards ProcessGovern the Architecture and Standards Process

    Establish Agency Level Strategic Master PlanEstablish Agency Level Strategic Master Plan

    Develop IT and Business StrategiesDevelop IT and Business Strategies

    Adopt Recommendations from National LevelAdopt Recommendations from National Level Headed by CIO in respective AgencyHeaded by CIO in respective Agency

    Manage the implementation of projects, policiesManage the implementation of projects, policies

    J u d i c i a r yJ u d i c i a r y l e g i s l a t i v el e g i s l a t i v e

    e-Governance Framework

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    M A N A G E M E N TA N A G E M E N T

    I M P L E M E N T A T I O NM P L E M E N T A T I O N

    C O N T R O LO N T R O L

    P O L I C YO L I C Y

    J u d i c i a r yJ u d i c i a r y l e g i s l a t i v el e g i s l a t i v e

    NationalNational

    LevelLevel

    AgencyAgency

    LevelLevel

    Chief IT / DomainChief IT / Domain

    ArchitectArchitect

    EnterpriseEnterprise

    Architecture & StandardsArchitecture & Standards

    BoardBoard

    AgencyAgencys IT Boards IT Board

    (Business/Technical)(Business/Technical)AgencyAgencys IT Boards IT Board

    (Business/Technical)(Business/Technical)

    IT OfficersIT Officers IT OfficersIT Officers IT OfficersIT Officers IT OfficersIT Officers

    AA

    DD

    VV

    II

    SS

    OO

    RR

    YY

    BB

    OO

    AA

    RR

    DD

    ExecutiveExecutiveSteering Committee /CIOSteering Committee /CIO

    NationalNational

    Information Technology BoardInformation Technology Board

    SponsorSponsor

    e-Governance Framework

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    Driving eGovernment in Singapore

    eGov Advisory Panel

    InfocommDevelopment

    Authority (IDA)

    chaired by the Head of Civil Service

    and comprises Permanent Secretaries

    of Ministries ;

    CIOs engaged to various ministries

    chaired by the Head of Civil Service and

    comprises representatives from private

    and public sectors to help steer e-

    Government effort

    e-Gov Policy Comm.(e-GPC)

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    Challenges for Sri Lanka

    Definition of Roles and Responsibilities ofStakeholders

    Leadership

    Awareness

    Continuity

    Project Implementation Procurement

    Experience

    Skills

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    Role of CIOs

    Budgeting

    ICT Planning

    ICT Resourcing Procurement of Services

    Setting Goal posts objectives and hence

    requirements of projects Quality Control Project Reviews

    Training

    Maintenance

    CIO R l d I t f

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    CIO Roles and Interfaces

    CIO Office

    SeniorMgmt

    SME

    Business Continuity

    IT SecurityHR

    HR Management

    Competency Development

    External Consultant

    Enterprise

    Architecture

    Finance &ICT Budget

    CIO, IT Director, CTO

    EnterpriseArchitect

    Quality& Audit

    Budget

    Planner

    Business Management

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    CIO

    Greaterbusiness demands

    Increasingtechnical complexity

    Expanding

    internalcoordinationresponsibilities

    Higher

    externalcustomer

    expectations

    Driving Forces for CIO

    CIO R l E i id th d

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    CIO Role Easier said than done

    Beside developing technical expertise in information andtechnology management, CIO are also leaders inmanagement and organizational change

    Serves as a critical member of senior management team

    a trusted partner much like CFO, COO, etc. CIOs needed to professionally develop and implement

    technology for an agency in a cost-effective way

    Always a tension between centralized and decentralizedtechnology development; between centralized authorityversus business units need both!

    CIOs must be trusted and skilled in working within theirorganizations to effect change therefore need supportof agency head and senior management team

    Electronic Government requires inter-agency

    collaboration and planning this is a new role for CIOs

    NCS P j t M t

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    DefineScope

    Resource

    Schedule

    Completion

    Organise& Plan

    Execute

    Track

    ManageSituation

    Initiate Project

    Execute Plan Control Activities

    Anticipateproblems & take

    preventive actions

    Initiate Project

    Execute Plan

    Control Activities

    Anticipateproblems & takepreventive actions

    Monitor project

    progress Periodic & regular

    progress meetings

    Anticipate problems& take preventiveactions

    Periodic reports

    Monitor projectprogress

    Periodic & regularprogress meetings

    Anticipate problems& take preventive

    actions Periodic reports

    Analyse problem &determine rootcause

    Identify & takeadaptive actions

    Analyse problem &

    determine rootcause

    Identify & takeadaptive actions

    Organise Team

    Define Roles &

    Responsibilities Establish major

    milestones

    Assess risks &develop contingencyplans

    Establish controlmechanism

    Organise Team

    Define Roles &Responsibilities

    Establish majormilestones

    Assess risks &develop contingency

    plans Establish control

    mechanism

    NCS Project Management

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    Methodolog ies NCS QMS

    Integrated suite ofpolicies, processes,methodologies, tools

    & techniques

    established fromindustry bestpractices

    verified over 20

    years of experiencein consulting andimplementing IT forour customers

    tested framework

    disciplined approach

    Business Focus

    Reliability &Scalability

    Partnership

    Project Management Methodologythe foundation of project delivery

    provides framework and systematic approachto managing a project

    to meet its intended objectives

    N P bli P i t P t hi

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    Now on Public Private Partnership

    Lets discuss the role of Private Sector ineGovernment

    Government IT Budgets are Increasing

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    Government IT Budgets are Increasing

    xxx

    740

    790

    799

    1,162

    1,255

    1,287

    1,757

    1,802

    4,2895,718

    6,209

    11,247

    505

    668

    591

    1,033

    1,001

    9651,430

    1,329

    2,165

    4,337

    5,328

    8,665

    0 2,000 4,000 6,000 8,000 10,000 12,000

    Indonesia

    New Zealand

    Thailand

    Hong Kong

    Singapore

    Malaysia

    Taiwan

    Rest o f AP

    India

    South Korea

    Australia

    China

    US$M

    2009

    2004

    [ ] denotes CAGR 2004-2009

    [5%]

    [3%]

    [6%][15%]

    [6%]

    [4%]

    [6%]

    [5%]

    [2%]

    [6%][3%]

    [8%]

    Source: GartnerSource: Gartner

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    PPP Models

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    Trends in Service Transformation

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    Trends in Service Transformation

    Public Private Partnership in procurementand delivery of services

    Public Service

    Private Enterprise

    Citizens and Businesses

    Public Service Private Enterprise Citizens and Businesses

    Public Private Partnership

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    Public Private Partnership

    An agreement between the Governmentand a Private Company, to share on the

    risk and rewards of a business ventureinvolving public services. In aneGovernment context, it means that atechnology vendor invests money in theproject in return for the chance to profit if it

    is successful and will suffer if it fails

    Why Private Partners?

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    Why Private Partners?

    Innovation of Government processes

    Bundling of Government services

    Limitation of start up budget

    Government procurement process

    Technology

    Service demands

    PPPs Value Add

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    PPP s Value Add

    Combines the advantages of both sectors social responsibility, environmental awareness and

    public accountability of the public sector

    finance, technology, managerial efficiency andentrepreneurial spirit and innovation skills of theprivate sector

    Promotes the transfer of knowledge,know-how, management skills and newtechnologies.

    Risk sharing and allocation to the partybest able to manage and mitigate

    Whats in it for the Private Sector

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    What s in it for the Private Sector

    Long Term Income

    New Sectors, More services Business Transformation

    More Activity

    In eGovernment your Private

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    In eGovernment your Private

    Partners could be.

    Telcos

    IT Service Providers

    Equipment Lease Firms

    Hardware Vendors

    Business Process Outsourcing Firms

    Financial Institutions

    Conventional Procurement Model

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    Public Agency Design Contract

    ImplementationContract

    MaintenanceContract

    Operations

    Conventional Procurement Model

    Design Company

    ImplementationCompany

    Maintenance Company

    Design & Build Phase

    Govt Finances Project

    Govt buys this Asset

    O & M PhaseGovt buys Maintenance Services

    Govt Operates

    GovernmentServices

    PPP-DBFO Model

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    Public Agency

    Service PurchaseAgreement

    Special Purpose Vehicle

    Equity InvestorDebt Provider

    PPP DBFO Model

    Buys Services

    Delivers Services

    Provides Financing

    ImplementationCompany

    MaintenanceCompany

    Operationscompany

    DesignCompany

    GovernmentServices

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    Typically, the private sector PPP provider:

    Raises financing from equity or debt providers Designs the facilities, equipment and work processes

    that provide services to the public or the Government

    Builds the facilities needed to meet the public sectorsrequirements

    Operates and maintain all the facilities and equipmentneeded to deliver the required services

    Identifies opportunities for the Government to share theuse of the facilities with other users to reduce the totalcost to the public sector eg. Registry of Companiesand Tax

    Operates commercial facilities that can generate third-party revenue to reduce total project cost

    Fee Based Funding

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    Private sector derive revenue fromproviding information and transactions

    Revenue shared between private sectorand Government

    Agency 1

    POR

    TAL

    Commercial services

    Agency 2

    Fee Based Funding

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    www.onemotoring.com.sg

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    www.onemotoring.com.sg

    Caters to Public and Businesses. Incorporates: Transactional services

    Road Tax Fines and Fees Change of Vehicle Colour

    etc Information services

    Daily traffic information Information on import and keeping a vehicle in Singapore LTA publications Vehicle makes and scrap values Enquiries to LTA etc

    Commercial services Car Insurance

    Road maps Mobile alerts and enquiries

    Integrated Land Information Services

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    Integrated Land Information Services

    Full Service Delivery

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    Private Sector takes over Process Private Sector may take over assets and

    people Service Contract

    Utility based model Government set policy and desired

    outcomes

    u Se ce e e y

    Full Service Delivery - Example

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    y p

    Single Operating Environment(SOE) forthe Singapore Public Service

    Standardised desktop operating environment,network operating environment andmessaging environment

    Private Sector assumes ownership of assetsand software

    Charge based on per user per month

    Full Service Delivery - Example

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    y p

    Project to offer Broadband access to over150000 end users

    Design and Technology choice Network construction and gradual deployment

    Connecting end users to the network

    Network operations & administration

    Network maintenance and enhancement

    Main Risks

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    Design risk

    Construction risk Availability risk

    Role allocation between Private and Public Sector and

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    Public Tender PPP

    LocalAuthority

    PrivatePartner

    LocalAuthority

    PrivatePartner

    Terms & Conditions Control X X

    Performance Control X X

    Network Design X X

    Network Building X X

    Network Funding X X

    Operations network X X

    Maintenance X X

    Network enhancement X X

    Risk Sharing

    Results

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    Initial investment saving of 15% PPP faster deployment 6 years vs. 7 years PPP secures better maintenance : constant usage of the

    network

    PPP secures a better residual value at end of contract In PPP design costs 30% lower, construction and

    operations cost 15% lower

    Internal rate of return 14% for PPP vs. 6.5% for Publictender PPP costs less for the local authority

    Equipment optimisation

    Better service productivity & performance as operations issecured by private actor

    Risks taken by private actor

    Opportunities for PPP

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    Revisit eGovernment Framework : Infrastructure Outsourcing and

    Operations Service Centres

    Portals

    Common Cross Ministry Applications

    - Messaging

    - Paymentetc

    Issues to Consider

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    Review national policies, legislative andinstitutional framework

    Ensure Probity and Accountability Treatment of Intellectual Property

    Build Skills and Expertise Open, ongoing discussions and

    information sharing among partners Cost of Submitting Proposals

    Conclusion

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    PPPs can and should be Win-Win

    But there are pitfalls Government needs to be committed and

    have perspective Private Sector needs to be committed and

    selective

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    [email protected]