MANAGEMENT INFORMATION SYSTEMS Presented by Neels Bothma 26 January 2006.

MANAGEMENT INFORMATION SYSTEMS

Presented by

Neels Bothma

26 January 2006

TOPICS FOR THE DAY

• What is information?• Why do you need information• Characteristics of information• Information and managers• Uptake of information in the new economy• Key challenges• Information systems• Information in organisations• Information as a key resource• Nature of managerial work• Types of information systems• Information systems in functional areas• Effectiveness and efficiency• Groupware, telecomms, networks & protocols• System Development Lifecycle• Project Management• System integration

• The Internet• Intranets and Extranets• E-commerce• B2B and B2C e-commerce• Search engines and the role of

portals• E-government• What is e-government• E-government services• Critical e-government factors• Human resources for e-gov• Implementing e-government• Ethics & information

TOPICS FOR THE DAY

WHAT IS INFORMATION?

• The word information is derived from Latin

informare which means "give form to". • Information can thus be defined as data that

has been processed, manipulated and

organised in a way suitable for human

interpretation and that adds to the

knowledge of the person receiving it• Information is usually compiled in response

to a specific need and often with the purpose

of revealing trends or patterns

WHAT IS DATA?

• Data can be defined as “a collection of facts from

which conclusions may be drawn” • Put another way, data are distinct pieces of factual

information used as a basis for reasoning; a

“given” or fact; a number, a statement, or a

picture, discussion, or calculation• Data is the raw material – the input – of

information

WHAT IS KNOWLEDGE?

• Knowledge is "a fluid mix of experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information.“

• Knowledge can further be described as the awareness and understanding of interconnected details, facts, truths or information gained through experience or learning, which, in isolation, are of lesser value.

• In other words, knowledge is about what one knows and understands

WHAT IS KNOWLEDGE…cont?

• Knowledge can be categorised as either unstructured or structured or explicit or tacit.

• What one knows one knows is explicit knowledge. • Knowledge that is unstructured and understood, but

not clearly expressed is implicit knowledge. • If the knowledge is organised and easy to share then it

is called structured knowledge. • To convert implicit knowledge into explicit knowledge,

it must be extracted and formatted

WHY DO PEOPLE NEED INFORMATION?

• Decision-making

• Problem-solving

• Entertainment

• Enlightenment

INFORMATION, POLITICS, AND POWER

• Politics– Development and control of Information

Systems often involves problematic politics• Power

– Information affords power which can be problematic

• Who owns the system?• Who pays for developing the system?• Who accesses what information?• Who has update privileges?

• Competition• 24x7• Global village• Travel• Television

THE UPTAKE OF INFORMATIONEmergence of the global economy

• Knowledge- and information-based economies

in developed world • Knowledge: a central productive and strategic

asset• High margin and tougher to replicate• Marked by time-based competition, shorter

product life, and turbulent environment• Low-knowledge jobs more commodity-like and

mostly fled to LDCs• Allows some poorer economies to leapfrog in

status (e.g., Finland, India and Ireland)

THE UPTAKE OF INFORMATIONTransformation of industrial economies

THE UPTAKE OF INFORMATIONTransformation of industrial economies …cont.

IT accommodates management in orgs that are:• Flattening

• Decentralising• Flexible• Location independent• And striving for:

–Low transaction and coordination costs; empowerment; collaborative work and teamwork

THE UPTAKE OF INFORMATIONTransformation of the modern enterprise

THE UPTAKE OF INFORMATIONTransformation of the modern enterprise …cont.

• Basically, digital firms use digital networks throughout their processes. Digital networks send digital information across them.

• For purposes of understanding what it is to be a digital firm, please consider the following definition from Whatis.com

– Prior to digital technology, electronic transmission was limited to analog technology, which conveys data as electronic signals of varying frequency or amplitude that are added to carrier waves of a given frequency. Broadcast and phone transmission has conventionally used analog technology.

– Digital technology is primarily used with new physical communications media, such as satellite and fiber optic transmission. A modem is used to convert the digital information in your computer to analog signals for your phone line and to convert analog phone signals to digital information for your computer.

THE UPTAKE OF INFORMATION

Emergence of the digital firm

• Computers• Networks• Satellites• Telecommunications• Microchip• Nanotechnology• Cellular technology• Internet

THE UPTAKE OF INFORMATION

Convergence of technology

CHARACTERISTICS OF USEFUL INFORMATION

For information to be useful, it must be…

•Relevant

•Complete

•Accurate

•Current

•Cost effective

Simple, timely, verifiable, accessible, secure, flexible, reliable

GENERATING INFORMATION

Raw data are processed in an IS to create final useful information• Process:

Manipulation of data

• Computer-based ISs: process data to produce information

INFORMATION AND MANAGERS

Systems thinking:

• Viewing organisation in terms of sub-

organisations or subsystems

• A framework for problem solving and

decision making

• Managers focus on overall goals and

operations of business

INFORMATION AND MANAGERS…cont.

Systems thinking (Cont.)• Information Map: data and information flow

within an organisation• Information Technology: all technologies

that facilitate construction and

maintenance of information systems

THE BENEFITS OF HUMAN-COMPUTER SYNERGY

• Synergy: combined resources produce output exceeding the sum of the outputs of the same resources employed separately

• Translates human thought into efficient processing of large amounts of data

MANAGEMENT CHALLENGES

MANAGEMENT CHALLENGESANOTHER VIEW

• Reduced Control over Information

Resources• Reduced Budgetary Control• Cost/Benefit Analysis• Scalability• Security• Education

OUR PERSPECTIVES ABOUT INFORMATION TECHNOLOGY IS CHANGING...

• Automate– use IT to do same things

• “Informate”– use IT to learn and continuously improve

• “Strategimate”– use IT to support organisation’s mission

and strategy• Integrate

– Use IT to bring organisations together

INFORMATION AGE REFORM

• Increased efficiency• Decentralisation• Increased accountability• Improved resource management• Marketisation

WHAT IS AN INFORMATION SYSTEM?

Technical definition:

An organized set of interrelated components that collect (or retrieve), transmit, process, store, and distribute information to support decision making, control, analysis and visualization in an organization.

REFINED OBJECTIVES OF INFORMATION SYSTEMS

• Must support the strategic direction of organisation

• Must allow access to a broad group of users

• Must enhance organisational learning• Must do in a cost-effective manner

WHAT IS A SYSTEM?

• System: A set of components that work together to achieve a common goal

• Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal

• Closed system: Stand-alone system that has no contact with other systems

• Open system: System that interfaces with other systems

SYSTEMS AND SUBSYSTEMS

WE NEED TO EXPLOIT INFORMATION SYSTEMS TO PRODUCE RESULTS

Capabilities of

Information Systems

ProcessRedesign

OrganizationalResults

• Increased Productivity• Improved quality• Greater citizen satisfaction• Improved decision making• Quicker response• Better communication and

coordination• Enhanced goodwill of

employees

KEYS TO SUCCESS

INFORMATION

People

Organization Strategy

Technology

CAPABILITIES OF INFORMATION SYSTEMS

• Fast and accurate data processing with large-capacity storage and rapid communication between sites

• Instantaneous access to information • Means of coordination• Boundary spanning• Support for decision making

• Supporting organizational memory and learning

• Routinising organisational practice• Differentiation of services• Modeling• Automation

CAPABILITIES OF INFORMATION SYSTEMS…cont.

MANAGERS AND INFORMATION

• Different levels of managers need different types of information for different types of decisions

• Increased flexibility of IS allows for changes in organisational structure

• However, politics of information is an issue

THE TRADITIONAL ORGANISATIONAL PYRAMID

Many organisations follow a pyramid model• CEO at top• Small group of senior managers• Many more lower-level managers

• Strategic Management– Decisions affect entire or large parts of the

organisation; “what to do” decisions– Aggregate past organisational data and make

future predictions– Improve organisational strategy and planning

• Tactical Management– Wide-ranging decisions within general directions

handed down; “how to do it” decisions– Automation of monitoring and controlling of

organisational activities– Improve organisational effectiveness

THE TRADITIONAL ORGANISATIONAL PYRAMID…cont.

• Operational Management, Forepersons, Supervisors– Comply with general policies handed down– Automation of routine and repetitive activities– Improve organisational efficiency

• Clerical and Shop Floor Workers– No management-level decisions required

THE TRADITIONAL ORGANISATIONAL PYRAMID …cont.

IT AND THE ORGANISATIONAL STRUCTURE

IT Flattens the Organisation– Eliminates middle managers

CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS

• Data Scope– Amount of data from which information

is extracted• Time Span

– How long a period the data covers• Level of Detail

– Degree to which information is specific

• Source: Internal vs. External– Internal data: collected within the

organisation– External data: collected from outside

sources• Media, newsletters, government

agencies, Internet

CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS …cont.

Structured and Unstructured data• Structured data: numbers and facts

easily stored and retrieved• Unstructured data: drawn from

meetings, conversations, documents, presentations, etc.

CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS…cont.

CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS…cont.

INFORMATION AS A KEY RESOURCE Personal dimensions of information

• The three personal dimensions of information include:– Time– Location– Form

INFORMATION AS A KEY RESOURCE Organisational dimensions of information


• Strategic management – provides overall

direction and guidance• Tactical management – develops the goals

and strategies• Operational management – manages and

directs the day-to-day operations• Nonmanagement employees – perform daily

activities

The four flows of information include:– Upward – describes the current state of

the organisation based on its daily

transactions– Downward – consists of the strategies,

goals, and directives that originate at one

level and are passed to lower levels


…Information flows continued– Horizontal – between functional business

units and work teams.– Outward – information that is

communicated to customers, suppliers, distributors, and other partners for the purpose of doing business.


• Information granularity – refers to the extent of detail within the information


What the information describes can include:– Internal information – specific operational

aspects of the organization.– External information – the environment

surrounding the organization.– Objective information – something that is

known.– Subjective information – something that is

unknown.


THE MATRIX STRUCTURE

• People report to different supervisors, depending on

project, product, or location of work• More successful for smaller, entrepreneurial firms• IT supports matrix structure

– Easier access to cross-functional information

THE MATRIX STRUCTURE

THE NATURE OF MANAGERIAL WORK

• Planning at different levels– Long-term mission and vision– Strategic goals– Tactical objectives

• Most important planning activities– Scheduling– Budgeting– Resource allocation

PLANNING

PLANNING…cont.

Control activities by comparing plans to results

CONTROLLING

• Both planning and control call for decision making

• The higher the level of management:– The less routine the manager’s activities– The more open the options– The more decision-making involved

DECISION MAKING

Review only exceptions from expected results that are of a certain size or type to save time

MANAGEMENT BY EXCEPTION

• Vision and creating confidence in others• Encouraging and inspiring subordinates• Initiating activities for efficient and effective work• Creating new techniques to achieve corporate

goals• Presenting a role model for desired behavior• Taking responsibility for undesired consequences• Delegating authority

LEADING MANAGERS REQUIRE THESE SKILLS AND ABILITIES

• Tabular and Graphical Representation– Certain information better presented graphically

• Trends as lines• Distributions as pie charts• Performance comparisons as bar charts

– Many people prefer tabular data for complex

problem solving

CHARACTERISTICS OF EFFECTIVE INFORMATION

LOVE-HATE RELATIONSHIP WITH INFORMATION TECHNOLOGY

“If the auto industry had kept up with technology like the computer industry has, we would all be driving $25 cars that get 1,000 miles per gallon”.

– CEO, Fortune 1000 software fime, spring 1998

WELL… THIS IS TRUE BUT…

• Your car would crash twice a day• Every time they repainted the lines in the

road, you have to buy a new car.• The air bag system would say, “Are you

sure?” before going off.• When your car died on the freeway for no

reason, you would just accept this, restart, and drive on.

• Executing a maneuver would cause your car to stop, and you would have to reinstall the engine. For some strange reason, you would accept this, too.

COMPONENTS OF AN INFORMATION SYSTEM

People

Hardware

Software

Telecommunications

Data

Information Systems

Procedures1..2..3..4..

COMPONENTS OF AN INFORMATION SYSTEM…cont.

PEOPLE AS A KEY RESOURCEInformation and technology literacy

• The single most important resource in any

organisation is its people.• Technology-literate knowledge worker – a

person who knows how and when to apply

technology.

THE FOUR STAGES OF DATA PROCESSING

• Input: Data are collected and entered into computer

• Data processing: Data are manipulated into information using mathematical, statistical, and other tools

• Output: Information is displayed or presented

• Storage: Data and information are maintained for later use

COMPUTER EQUIPMENT FOR INFORMATION SYSTEM

• Input devices: introduce data into the IS

• Processor: manipulates data through the IS

• Output devices: display information

• Storage devices: store data and information

INPUT-PROCESS-OUTPUT-STORAGE DEVICES

TYPES OF

MANAGEMENT INFORMATION SYSTEMS

• Transaction Processing Systems (TPS)– Record data and perform basic

processing– Cash registers and ATMs

• Management Information Systems (MIS)– Recorded transactions and other data

produce information for problem solving and decision making

• Decision Support Systems (DSS)– Contain models, or formulas, that

manipulate data into information– Often answer “what if?” questions

• Group Decision Support Systems (GDSS)– Generate ideas, establish priorities, and reach

decisions in group environment• Executive Information Systems (EIS)

– Can gather information from vast amounts of data for high-level executives

– Highly useful in control and planning• Expert Systems (ES)

– Programmed with human expertise– Can help solve problems of unstructured nature– Also referred to as a knowledge worker system

(KWS)

TYPES OF

INFORMATION SYSTEMS…cont.

• Geographic Information Systems (GIS)– Represents local conditions or features– Allows planning, decision-making, and monitoring of

local conditions or activities• On-demand Output

– Managers can obtain reports tailored to their needs at any time

• Office automations system (OAS)– Managers can obtain reports tailored to their needs at

any time

TYPES OF

INFORMATION SYSTEMS…cont.

MANAGERS AND THEIRINFORMATION SYSTEMS

INFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS

• Accounting– Record business transactions, produce periodic

financial statements, and create reports required by law

• Finance– Organise budgets, manage the flow of cash,

analyse investments, and make decisions that could reduce interest payments and increase revenues

• Marketing – Analyse demand for various products in

different regions and population groups

• Human Resources– Help with record keeping and employee

evaluation• Manufacturing

– Allocate resources such as personnel, raw material, and time

– Control inventory, process customer orders, prepare production schedules, perform quality assurance, and prepare shipping documents

INFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS…cont.

• Service– ISs are often the backbone of service

organisations• Retail

– Some retail stores (e.g., Wal-Mart, Sears) are now linked to communication networks by satellite

– Management can determine which items move quickly and which do not

INFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS…cont.

INFORMATION SYSTEMS IN DIFFERENT BUSINESS SECTORS

• New Businesses– ISs have made new products and

services possible, such as credit reports and shipment tracking, online businesses

• Government– Tax authorities, national insurance and

welfare agencies, defense departments, economic organisations, immigration authorities

EFFECTIVENESS AND EFFICIENCY

Information Systems can help companies attain more effective and efficient business processes

• Effectiveness– The degree to which a task is accomplished

• Efficiency– Determined by the relationship between

resources expended and benefits gained in achieving a goal

EFFECTIVENESS AND EFFICIENCY…cont.

ENTERPRISE RESOURCE PLANNING (ERP)

• All business functions served by one system that supports different activities for different departments

• Support supply chain management, the series of main and supporting activities from order to delivery

ENTERPRISE RESOURCE PLANNING (ERP)…cont.

GROUPWARE ANDCOLLABORATIVE WORK

• GroupWare lets workers in different locations communicate ideas, brainstorm, and work together as if they were in the same place

• Document Control– Users can distribute and track electronic

documents without working with outdated information

• Collaborative Projects– Users can coordinate work on a single

document from many different terminals

TELECOMMUNICATIONS IN BUSINESS

• Transmittal of data from one computer to

another over a distance• Telecommunications has improved business

in three main ways:– Better communication– Higher efficiency – Better distribution of data

TELECOMMUNICATIONS IN DAILY USE

• Cellular phones

• SMSs/MMs

• Video-conferenceing

• Voice mail

• Facsimile

• Information kiosks

• Pay-at-the-Pump

• Instant messaging

• VoIP - Skype

• Communications medium – Physical medium through which data can be

communicated– Telephone lines, television cables

• Capacity– Speed at which data are communicated– Also called the transmission rate– It is often called “bandwidth”

• Bandwidth is measured in bits per second (bps)– The greater the capacity, the faster the

transmission

BANDWIDTH AND MEDIA

BANDWIDTH AND MEDIA …cont.

• Bandwidth– Narrowband is low speed– Broadband has greater capacity

• Media– A medium is any means by which data

can be transmitted

BANDWIDTH AND MEDIA …cont.

NETWORKS

• LANs (Local Area Networks)– Networks within a building, or within a

group of adjacent buildings• WANs (Wide Area Networks)

– Networks that cross organisational

boundaries or reach outside the company• Value-added networks (VANs/VPNs)• Wireless communication

PROTOCOLS

• Communication protocols– Rules governing the communication

between computers or between

computers and other computer-related

devices (TCP/IP and HTTP)• Network protocols

– Rules governing a network of devices

THE WIRELESS REVOLUTION

• Popular wireless technologies– Wi-Fi, Bluetooth, InfraRed, Wireless. Mircowave,

GPS, Edge, 3G

• Would you like Wi-Fi with that?

• Combining technologies

WIRELESS TECHNOLOGIES …cont.

• Data presented in real time• Includes moving images

representing speed or direction• Changing colors represent rate of

change• Use expected to grow

DYNAMIC REPRESENTATION

THE SYSTEM DEVELOPMENT LIFECYCLE (SDLC)

WHY DEVELOP AN INFORMATION SYSTEM?

• An opportunity (proactive)– Potential increase in revenue– Reduction of costs– Gain in competitive advantage

• A problem (reactive)– Undesired situation

• A directive– An order to take action

THE SYSTEMS DEVELOPMENTLIFE CYCLE

THE SYSTEMS DEVELOPMENTLIFE CYCLE …cont.

ANALYSIS

• Investigation• Developers interview managers and

perspective users to determine

business needs • Three feasibility studies performed

• Technical Feasibility Study– Ensures hardware and software exist to

build the system• Economic Feasibility Study

– Determines resources needed for

implementation– Determines if benefits outweigh the

costs

ANALYSIS …cont.

• Operational Feasibility Study– Determines if system will be used as

intended at its full capacity• Requirements Definition

– Specific features and interface

requirements of the system defined

ANALYSIS …cont.

DESIGN

• Translation of user requirements into

detailed functions of the system– Input files– Procedures– Output files– User Dialog– Interfaces

DESIGN …cont.

• Software development tools– Flowcharts

• Graphical symbols illustrating system• Logical and physical elements• Over 30 symbols for events,

hardware, processes and more

DESIGN …cont.

DESIGN …cont.

• Software development tools– Data flow diagram

• Describe flow of data in system with

only four symbols:– External entities– Processes– Data stores– Data direction

DESIGN …cont.

• Software development tools– Unified Modeling Language

• Graphical standard for visualizing,

specifying, and documenting software• Independent of programming language• Describe types of software• Use case, class, interaction, state,

activity, and physical components

DESIGN …cont.

• Construction– Programming

• Systems Testing– Checked against system

requirements– Attempts to make system fail

DESIGN …cont.

• Training• Conversion

– Parallel Conversion– Phased Conversion– Cut Over Conversion– Pilot Conversion

IMPLEMENTATION

IMPLEMENTATION …cont.

SUPPORT

PROTOTYPING

• Systems developed using an iterative process– Purpose is to develop a working model as

quickly as possible, which can be tweaked

and revised– Significantly shortens systems development

backlog– Can increase risk of incompatibility and

other unforeseen mishaps

PROTOTYPING …cont.

PROJECT MANAGEMENTOF INFORMATION SYSTEM

SYSTEMS INTEGRATION

• Takes a look at the information needs of an entire

organisation (or a major division)• Analysts integrate existing systems so that:

– Data can flow more easily among business

units– Users can access different types of data via a

single interface

SYSTEMS INTEGRATION …cont.

THE INTERNET, THE WEB AND E-COMMERCE

WHAT IS THE INTERNET?WHAT IS THE WEB?

• The Internet is generally defined as a global network of computer networks

• The Web is a way of organising, presenting and accessing the Information on the Internet

GROWTH OF THE INTERNET

• Number of servers– 147 million in mid-2003

• Number of users– More than 600 million; 10 percent of the

world population

GROWTH OF THE INTERNET… cont.

GROWTH OF THE INTERNET

HOW THE INTERNET WORKS

Definitions

• Uniform Resource Locator (URL)

• Hypertext Transfer Protocol (HTTP)

• Domain Name

• Hypertext Markup Language (HTML)

• Top Level Domain (TLD)

HOW THE INTERNET WORKS …cont.

• IP Number

• Domain Naming System (DNS)

• A domain name is assigned to each IP address

• Domain names are registered by one of a group

of companies authorized to assign unique

names

INTERNET DOMAINS

INTERNET DOMAINS…cont.

COMMON INTERNET APPLICATIONS

• E-mail (POP & SMTP)

• File transfer (FTP)

• Usenet newsgroups and Blogs

• Instant Messaging

• Internet Telephoning (VoIP – Skype)

• Web browsers

• Search engines

INTRANETS AND EXTRANETS

Intranet

• A within-organisation computer network that uses Internet technologies to communicate

Extranet

• Uses Internet technologies to facilitate communication and trade between an organisation and its business partners, such as suppliers (VPN – virtual private network)

INTRANETS AND EXTRANETS…cont.

E-COMMERCE

• Business-to-business and business-

to-consumer transactions done

electronically via networks• Database management online makes

information cheaper to distribute• E-commerce is now synonymous

with “doing business on the

Internet”

B2B E-COMMERCE

• Electronic Data Interchange• Market exchanges and auctions• Online Business Alliances• Application and Storage Service

Providers• Vortals

ELECTRONIC DATA INTERCHANGEELECTRONIC DATA INTERCHANGE

• EDI an early example of IT in e-commerce• EDI over the internet using secure VPNs

is a growing application

• Advertising & PR

• Marketplaces

• Brochureware sites

• Auctions & reverse auctions

• E-tailing

• Portals

B2C E-COMMERCE

B2C E-COMMERCE …cont.

SEARCH ENGINES AND PORTALS

• Target the right customer

• Own the customer’s total experience

• Personalise and customise the service

• Shorten the business cycle

• Let the customers help themselves

• Be proactive and interactive

• Engender a feeling of belonging

• Create a community

TIPS FOR SUCCESSFUL ONLINE BUSINESS TRANSACTIONS

E-COMMERCE PRACTICES ON THE INTERNET

High

Business Value

Low

Short-Term Strategies Long-Term Strategies

Operations Automation

High

Short-Term Projects

Time to Implement

CustomerSelf-Service

ProcurementAutomation

ExtranetsAnd Exchanges

B2BPortal

CustomerRelationshipManagement

SupplyChain

Management

Web Storefront& e-Catalog

InteractiveMarketing

IntegratedWeb Store

Self-ServiceWeb Stores

B2CPortal

e-BusinessEmpowerment

B2C

B2B

E-COMMERCE TRENDS

B2C and B2B growth to e-business empowerment

E-COMMERCE SUCCESS FACTORS

Selection & ValueSelection & Value

Performance & ServicePerformance & Service

Look & FeelLook & Feel

Advertising & IncentivesAdvertising & Incentives

Personalisation & CustomisatnPersonalisation & Customisatn

Community RelationshipsCommunity Relationships

Security & ReliabilitySecurity & Reliability

Some KeyFactorsfor Successin E-commerce

E-GOVERNMENT

GOVERNANCE : AN INFORMATION PERSPECTIVE

• Representative democracy relies on supposition that best way to make a decision is wider participation for all its citizens having access to relevant information

• Government is by nature an information intensive organization

• Information is power and information management is political

WWW.THEDTI.GOV.ZA

HOW WELL INFORMED ARE GOVERNMENT EXECUTIVES ON IT ISSUES?

CIO’s

CEO’s

GeneralManagers

Executive Oversight and Budget Personnel

Legislative Bodies

0 50 100

86%

45%

36%

28%

7%

Source: JFK School of Government, Harvard UniversitySlide Courtesy, Don Pearson, VP, Government Technology

INFORMATION TECHNOLOGY’S ROLE IN GOVERNMENT

Government largest collector, user, holder and producer of information

• “In pursuing the democratic/political process, in managing resources, executing functions, measuring performance and in service delivery, information is the basic ingredient”

GOVERNMENT WORK IS INFORMATION-INTENSIVE

• Information to support internal management

• Information to support public administration and regulation

• Information to support public services• Information made publicly available

WHAT IS E-GOVERNMENT?

E-Government refers to the use by government agencies of information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions. Source: World Bank

E-GOVERNMENT SERVICES

G2C• Income taxes• Job search• Social security

benefits• Personal documents• Car registration• Application for

building permission• Declaration to the

police• Public libraries• Birth & marriage

certificates• Enrolment in higher

education• Announcement of

moving• Health-related

services

G2B• Social contribution

for employees• Corporate tax• VAT• Registration of a new

company• Submission of

statistical data• Custom declaration• Environmental

permits• Public procurement

G2G• Governments

establishing regional alliances –for purchasing, warehousing, data sharing

• Government sharing data among departments

• State government agencies aggregating data from the municipalities via the web

• Linking customer front ends with legacy systems

G2C: GOVERNMENT TO CITIZEN

Achievements• Almost all

government institutions publish information on Internet

• Few institutions provide different forms on Internet

• E-Signature legislation

Challenges• Improved

management and presentation of information

• Interactive communication

• Providing e-services for citizens, incl. taxes declaration and payment

G2B: GOVERNMENT TO BUSINESS

Achievements• Public

procurement e-register

• Administrative structures e-register

Challenges• Improved information

management and presentation

• E-market place for public procurements

• Providing e-services for companies, incl. tax declaration and payment

G2G: GOVERNMENT TO GOVERNMENT

Achievements• Use of Internet for

information • Availability of basic

infrastructure • Using E-mail for

unofficial communication between institutions

Challenges• Internet – official

communication environment for the Government

• High level of security• Building of legacy

system integration

E-GOVERNMENT PRIORITIES

• Develop Internet-based services for access to public sector information

• Improve transparency • Involve citizens and business in interactive

ways • Full exploitation of ICT in administrations

including e-signatures and open source software

• E-markets for public sector procurement

INTERNAL EFFECTIVENESS AND EFFICIENCY

Adoption of business best practices in government operations:

knowledge management operations research and optimisation supply chain management, incl. CRM human resources automation and integration document workflow

E-GOVERNMENT RESULTING BENEFITS

• Increased transparency => less corruption• New and better services, incl. Reduced time

delays and speed up delivery of services and

information• Services delivery independent of place and

time – open 24/7• Greater convenience • Revenue growth and/or cost reductions

CRITICAL FACTORS

• Presence of political will• Provision of vision, strategy and necessary financial

resources• Awareness in the society of the need for e-

government development• Education and training, practical skills of the human

resource pool for participation in the e-government• Provision of employment for highly qualified IT

professionals• Effective feedback

Based on the realities mentioned, the following critical factors for a successful e-government have been defined:

CRITICAL FACTORS…cont.

• Creation of IT Infrastructure• Standards for e-governance procedures• Reengineering the existing system• Technology should be used to enable the delivery of results

not merely as a substitute to reduce inertia within processes• Technological innovations for public services• Technology should not be used to preserve legacy systems• Focus on results not on process• Governance should be a collaborative approach• Create leadership in Technology ; Security & Privacy

HUMAN RESOURCES

• The implementation of new technologies requires constant knowledge acquisition. The education level of the public administration employees is comparatively high, but their training for the use of IT does not comply with the requirements of e-government.

• It is difficult to attract and keep highly qualified IT and management specialists in the state administration because of the more attractive remuneration terms and clearer career perspectives in the private sector

IMPLEMENTING E-GOVERNMENT - STAGES

Stage 1InformationInformation on the Web

Stage 2Interaction

Downloadingof forms

Stage 3Two-way

interactionProcessing of

form

Stage 4Transactions

Complex services

Complexity & Time

Val

ue

GOVERNMENT OBJECTIVE: GOVERNMENT OBJECTIVE: INTERNET INFRASTRUCTUREINTERNET INFRASTRUCTURE

• Invest, develop and exploit sensibly telecommunication network

• Reach the average level of Internet capacity in the region

• Satisfy quantity and quality of Internet lines • Extend internet access points • ADSL in industrial parks

E-GOVERNMENT VISION OF BULGARIA

The vision for the e-government in Bulgaria is:

The Government of the Republic of Bulgaria will provide modern and efficient governance, while using the means of contemporary information technologies in order to meet the real needs of citizens and businesses at any time and any place

E-GOVERNMENT STRATEGIC OBJECTIVES OF BULGARIA

The Government of the Republic of Bulgaria has formulated the following strategic objectives with regard to e-government:

• To provide, through electronic means, high-quality, efficient and accessible public services to citizens and business;

• To expand the technological capabilities of citizens and businesses for participation in the government decision-making process;

• To form organisational, communication and information environment for effective and transparent functioning of the public administration in accordance with the principles, standards and best practices of the European Union

RELUCTANCE TO EMBRACE E-GOVERNMENT

The major concerns in implementing e-government are:

• Confidence and reliability of the electronic process• Expensive infrastructure required• Internal competence-building issues• Security of the system and data integrity• Legal issues associated with e-commerce• Competence in providing support• Licenses and cost of development of solutions• Digital divide• Fear of loosing power base

It is not only about Software and Hardware competence.It is about working environment and process understanding as a whole.

GOVERNANCE: IN IT FRAMEWORK

• Expansion of Internet and electronic commerce, is redefining relationships among various stake holders in the process of Governance.

• A new model of governance would be based upon the transactions in virtual space, digital economy and dealing with knowledge oriented societies .

• Electronic Governance is an emerging trend to re-invent the way the Government works.

BASIC FEATURES OF PRESENT MODEL OF E-GOVERNANCE

• Government is simple ; moral; transparent ; efficient.

• Commodity to deliver is service but delivering agency is Government

• Legacy problems of existing Government is assumed to be resolved over Technology Backbone

• Basic orientation of this model is not to reduce the role of Government in Citizen’s life but to serve it more efficiently.

• Citizen is demanded to orient himself to fit with the way government works.

E-GOVERNANCE: PRESENT MODEL

G

C

B

RE-ORIENTING G TO G : AN ALTERNATIVE MODEL OF E-GOVERNANCE

• Emphasis is accorded for self-service. Citizen is more self reliant. He may access “online” government as per the need. But he is in charge of the affairs.

• Role of governance is limited as facilitator. The internal fabrics of G to G system is having higher intelligence. The regulatory interface with business and revenue activities are more market and community driven

• It is the government which tries to fit with the life of the Citizen, particularly those who are under-privileged, whereas in previous model it was other way round

ALTERNATIVE E-GOVERNANCE MODEL

C

G

B

Digital Governance Digital Government

Choice

Cost

Core Function

Channels

Capacity

Conversation

Contribution

•Public safety•Health•Education•Economic activity•Infrastructure

•Collaborative infrastructure•Transparency• Efficient procedure &

rules/permission•Mobile money•Public/Private Partnership

TRANSFORMATION FROM E- GOVERNMENT TO DIGITAL GOVERNANCE

•Citizens •Business•NGOsServing the end user

Commodity(Delivery of Citizen services)

First generation Second generation

E-GOVERNANCE : E-GOVERNANCE : CHALLENGES FOR RURAL AREAS CHALLENGES FOR RURAL AREAS

The other set of challenges lie in extending the reach of e-governance services to large portions of the population that live in rural areas. These include:

• Assessment of local needs and customising

e-governance solutions to meet those needs

• Connectivity

• Content (local content based on local language)

• Building human capacities

• E-commerce

• Sustainability

E-GOVERNANCE : CHALLENGESE-GOVERNANCE : CHALLENGES

The key challenges with electronic governance are not technology or internet issues but organisational issues like• Redefining rules and procedures• Information transparency• Legal issues• Infrastructure ;Skill and awareness• Access to right information• Interdepartmental collaboration• Tendency to resist the change in work culture

ETHICS AND INFORMATION

ETHICAL AND SOCIETAL ISSUESThe not-so-bright side

• Consumer Privacy– Organizations collect (and sometimes

sell) huge amounts of data on

individuals• Employee Privacy

– IT supports remote monitoring of

employees, violating privacy and

creating stress

• Freedom of Speech– Opportunities increase for

pornography, hate speech, intellectual

property crime, and other intrusions– Prevention may abridge free speech


• IT Professionalism– No mandatory or enforced code of ethics

for IT professionals--unlike other

professions• Social Inequality

– Less than 20% of the world’s population

have ever used a PC; less than 3% have

Internet access


• What is Privacy?– One’s right to control information about oneself– Not a constitutional right per se; secured by laws

or convention– Increasing number of organizations may access

information via better IT hardware and software– Business and civil rights advocates dispute degree

of privacy vs. utility of information access

ETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?

• Business Arguments– Necessary to collect basic financial and

personal information as cheaply as

possible– Consumers benefit eventually from

competitive environment augmented by

readily available information


• Consumer Arguments– Resent unsolicited mail and telephone calls – Resent being refused credit because of

credit bureau mistakes– Frightened by “dossier phenomenon”– Loss of control over information unfair– information gathered for a particular

purpose with permission should remain

restricted


• Seven Commandments of Personal Data

Collection and Maintenance– Purpose: Companies should inform people

who provide information of specific, exclusive

purpose– Relevance: Companies should record and use

only data necessary to fulfill their own

purposes– Accuracy: Companies should ensure that their

data are accurate



• Currency: Companies should make sure that all data about an individual are current

• Security: Companies should limit data access to only those who need to know

• Time Limitation: Companies should retain data only for the time period necessary

• Scrutiny: Companies should establish procedures to let individuals review their records and correct inaccuracies

ETHICAL AND SOCIETAL ISSUESElectronic monitoring of employees

• The Microchips Are Watching– Video cameras– Software to count keystrokes– Artificial intelligence to monitor cash

disbursement and detect fraud– Monitoring e-mail and Web access

• The Employers’ Position– Entitled to know how employees spend

time– Believe monitoring is an objective,

nondiscriminatory method to gauge output

• The Employees’ Position– Deprives them of autonomy and dignity– Increases stress and stress-related

illness and injury

ETHICAL AND SOCIETAL ISSUESElectronic monitoring of employees

Pros• Saves travel cost and time• Decreases pollution• May reduce unemployment• Productivity higher among

telecommuters

ETHICAL AND SOCIETAL ISSUESTelecommuting: pros and cons

ETHICAL AND SOCIETAL ISSUESTelecommuting: pros and cons

Cons• Employers tend to pressure

telecommuters to work harder than workers in the office.

• No office to foster new social ties and camaraderie.

• May negatively impact some segments of the economy

– Restaurants– Downtown business and industries

Thank You!

Neels [email protected]

[email protected]: 082 8808549Tel: 012 6676064

Fax: 012-6676065

Reaching the UnreachedDr. N. Vijayaditya

Essentials of Management Essentials of Management Information SystemsInformation Systems

SOURCES

Trends

• Power of computers increasing; prices dropping

• Increase in programming variety and ingenuity

• Internet access faster and more reliable

• Internet growth resulting in opportunities

• Increasing ratio of computer-literate workforce

MANAGEMENT INFORMATION SYSTEMS Presented by Neels Bothma 26 January 2006.

Documents

Transcript of MANAGEMENT INFORMATION SYSTEMS Presented by Neels Bothma 26 January 2006.