eGovernment Role and Challenges of CIO Public Private Partnership (PPP) in eGovernment Examples of PPP Conclusion

Kong Ban Yip Country Director NCSI Lanka & Director eGovernment Consulting NCS Pte Ltd 25th September 2006

Government Service Transformation

Online services is but a starting point to e-Government. . e-Government is about improving and enhancing the way you work it is about accountability to your people and the business

e-Government is

a transformation of the way the government serve its people. a transformation to achieve

Service Level Experience for its People

Define Value .Starting Right

MANAGEMENT

eHealth

TECHNICAL

T R A N S I T I O N F R A M E W O R K

eTaxFiling

eSERVICES

eBilling eMotoring eStatistics

Utility Building

Service
Education Transportation Environment Justice & Security

Oriented Platform
Government Benefits Healthcare Employment Social & Community

STANDARDS

S T A K E H O L D E R

BUSINESS
E G O V E R N A N C E F R A M E W O R K

SERV ICE ARCHITECTURE Del i very C h a n n e l s

Government to Business Government to Employees
Information Bank

Government to Citizen

ENTERPRISE
eEmployment

IT

ARCHITECTURE
eEducation

APPLICATION ARCHITECTURE

People Hub

Government Backend Services

HR Financial eProcurement Gov Directory

Government Shared Services

INFRASTRUCTURE ARCHITECTURE
E-Government Supporting Infrastructure Nation- Wide ICT Infrastructure

BUSINESS

Land Hub

INFORMATION
Management

ARCHITECTURE
Analysis

Establishment Hub

Retrieval

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

ICT Channels in Sri Lanka

Telephone Main Lines (2004) Mobile Subscribers (2004) PCs (2004)

51 per 1000 people 114 per 1000 people 13 per 1000 people

Figures from WB

Focusing on eGovernment Implementation

eGovernment Policy eGovernment Design Project Concept Project Execution Project Maintenance

e-Governance Framework

POLICY

Establish IT Vision, Set Enterprise Direction Project Approval for large budget projects. Establish/Approve IT Policy, Budgets, Goals, Objectives

CONTROL

Develop & recommends IT resource policies / procedures Controls the implementation of the Policies/Procedures Govern the Architecture and Standards Process

MANAGEMENT

Establish Agency Level Strategic Master Plan Develop IT and Business Strategies Adopt Recommendations from National Level Headed by CIO in respective Agency

IMPLEMENTATION
Manage the implementation of projects, policies Judiciary legislative

e-Governance Framework
Executive Steering Committee /CIO Sponsor

National Information Technology Board

A D V I S O R Y B O A R D

POLICY
Chief IT / Domain Architect Enterprise Architecture & Standards Board

National Level

CONTROL
Agencys IT Board Agency (Business/Technical) Agencys IT Board Agency (Business/Technical)

Agency Level

MANAGEMENT
IT Officers IT Officers IT Officers IT Officers

IMPLEMENTATION
Judiciary legislative

Driving eGovernment in Singapore

chaired by the Head of Civil Service and comprises Permanent Secretaries of Ministries ;

e-Gov Policy Comm. (e-GPC)

CIOs engaged to various ministries

Infocomm Development Authority (IDA)

chaired by the Head of Civil Service and comprises representatives from private and public sectors to help steer eGovernment effort

eGov Advisory Panel

Challenges for Sri Lanka

Definition of Roles and Responsibilities of Stakeholders Leadership Awareness Continuity Project Implementation Procurement Experience Skills

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 Roles and Interfaces

Business Management

Senior Mgmt
CIO, IT Director, CTO

Enterprise Architect

Enterprise Architecture

Finance & ICT Budget

Quality & Audit

CIO Office

Budget Planner

Business Continuity

HR Management

IT Security

SME

HR
Competency Development

External Consultant

Driving Forces for CIO

Greater business demands

Higher external customer expectations

CIO

Expanding internal coordination responsibilities

Increasing technical complexity

CIO Role Easier said than done

Beside developing technical expertise in information and technology management, CIO are also leaders in management 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 decentralized technology development; between centralized authority versus business units need both! CIOs must be trusted and skilled in working within their organizations to effect change therefore need support of agency head and senior management team Electronic Government requires inter-agency collaboration and planning this is a new role for CIOs

NCS Project Management

Organise Team Organise Team Define Roles & Define Roles & Responsibilities Responsibilities Establish major Establish major milestones milestones Assess risks & Assess risks & develop contingency develop contingency plans plans Establish control Establish control Manage mechanism mechanism Situation Analyse problem & Analyse problem & determine root determine root cause Completion cause Identify & take Identify & take adaptive actions adaptive actions

Organise & Plan

Sco pe

Initiate Project Initiate Project Execute Plan Execute Plan Control Activities Control Activities Anticipate Anticipate problems & take problems & take preventive actions preventive actions
Execute

Define

Resource

Track

le du he Sc

Monitor project Monitor project progress progress Periodic & regular Periodic & regular progress meetings progress meetings Anticipate problems Anticipate problems & take preventive & take preventive actions actions Periodic reports Periodic reports

Methodologies

NCS QMS
Project Management Methodology the foundation of project delivery provides framework and systematic approach to managing a project to meet its intended objectives

Integrated suite of policies, processes, methodologies, tools & techniques established from industry best practices verified over 20 years of experience in consulting and implementing IT for our customers tested framework disciplined approach

Business Focus Reliability & Scalability Partnership

Now on Public Private Partnership

Lets discuss the role of Private Sector in eGovernment

Government IT Budgets are Increasing

Australia xxx
South Korea India Rest of AP Taiwan Malaysia Singapore Hong Kong Thailand New Zealand Indonesia 0 2,165 1,802 [6%] 1,329 1,757 [4%] 1,430 1,287 [6%] 965 1,255 [5%] 1,001 1,162 [2%] 1,033 799 [6%] 591 790 [3%] 668 740 [8%] 505 2,000 China 8,665 11,247

[5%]

6,209 [3%] 5,328 5,718 [6%] 4,337 4,289 [15%]

[ ] denotes CAGR 2004-2009

2009 2004

4,000

6,000 US$M

8,000

10,000

12,000

Source: Gartner

PPP Models

Strategic Procurement of IT Services Outsourcing involves strategic relationship with

Private Sector

The Government Executive Series Outsourcing in Government: The Path to Transformation

Trends in Service Transformation

Public Private Partnership in procurement and delivery of services

Public Service Citizens and Businesses Private Enterprise

Public Service

Private Enterprise

Citizens and Businesses

Public Private Partnership

An agreement between the Government and a Private Company, to share on the risk and rewards of a business venture involving public services. In an eGovernment context, it means that a technology vendor invests money in the project in return for the chance to profit if it is successful and will suffer if it fails

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

Combines the advantages of both sectors
social responsibility, environmental awareness and public accountability of the public sector finance, technology, managerial efficiency and entrepreneurial spirit and innovation skills of the private sector

Promotes the transfer of knowledge, know-how, management skills and new technologies. Risk sharing and allocation to the party best able to manage and mitigate

Whats in it for the Private Sector

Long Term Income New Sectors, More services Business Transformation More Activity

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

Public Agency Design Contract Design Company

Design & Build Phase

Govt Finances Project Govt buys this Asset

Implementation Contract Implementation Company Maintenance Contract O & M Phase

Govt buys Maintenance Services Govt Operates

Government Services Maintenance Company

Operations

PPP-DBFO Model
Public Agency Buys Services Service Purchase Agreement Delivers Services Special Purpose Vehicle Provides Financing Equity Investor Debt Provider
Operations company Implementation Company Government Services Maintenance Company Design Company

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 sectors requirements Operates and maintain all the facilities and equipment needed to deliver the required services Identifies opportunities for the Government to share the use of the facilities with other users to reduce the total cost to the public sector eg. Registry of Companies and Tax Operates commercial facilities that can generate thirdparty revenue to reduce total project cost

Fee Based Funding

Private sector derive revenue from providing information and transactions Revenue shared between private sector and Government
Agency 1 PORTAL

Agency 2

Commercial services

Example

www.onemotoring.com.sg
Caters to Public and Businesses. Incorporates:
Transactional services
Road Tax Fines and Fees Change of Vehicle Colour etc Daily traffic information Information on import and keeping a vehicle in Singapore LTA publications Vehicle makes and scrap values Enquiries to LTA etc Car Insurance Road maps Mobile alerts and enquiries

Information services

Commercial services

Integrated Land Information Services

Full Service Delivery

Private Sector takes over Process Private Sector may take over assets and people Service Contract Utility based model Government set policy and desired outcomes

Full Service Delivery - Example

Single Operating Environment(SOE) for the Singapore Public Service
Standardised desktop operating environment, network operating environment and messaging environment Private Sector assumes ownership of assets and software Charge based on per user per month

Full Service Delivery - Example

Project to offer Broadband access to over 150000 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
Design risk Construction risk Availability risk

Role allocation between Private and Public Sector and Risk Sharing
Public Tender Local Authority Terms & Conditions Control Performance Control Network Design Network Building Network Funding Operations network Maintenance Network enhancement X X X X X X X X Private Partner PPP Local Authority X X X X X X X X Private Partner

Results
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 Public tender PPP costs less for the local authority
Equipment optimisation Better service productivity & performance as operations is secured by private actor Risks taken by private actor

Opportunities for PPP

Revisit eGovernment Framework : Infrastructure Outsourcing and Operations Service Centres Portals Common Cross Ministry Applications - Messaging - Payment etc

Issues to Consider
Review national policies, legislative and institutional 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
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

kbyip@ncs.com.sg