ASSIGNMENT NO. ASSIGNMENT NO.

E-COMMERCE A CASE STUDY OF E-GOVERNMENT (55 !"

PROGRAMME FOR DISTRICT GOVERNMENT OF FAISALABAD
Autumn 2013

B#lal Ahme$ Na%# Roll No& AP '()*+, MBA E-e./t#0e 1th Seme%te
ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD (Commonwealth MBA/MPA P o! am" 1

ABSTRACT
In the 21st century, Local Governments and public sector organizations are faced with the challenges of globalization. As drivers of social, economic and political development, Governments have a considerable responsibility for providing ey services to citizens and managing society in general. !o fulfill their mandate, a star reality is that the Local Governments need to change all over the world and in particular in the developing countries li e "a istan. #ity $istrict Government %aisalabad &#$G%' embraced the need to change with the aid of Information and #ommunication !echnologies &I#!s' based information systems. In comple( Local Governments li e in %aisalabad, achieving integration is critical to meet the ob)ectives of effective service provision. #$G% realized that I#!s can ma e a significant contribution to effective and efficient service provision by saving time and improving wor practices through improving organizational functions and processes along with the achievement of good governance in the district as part of its broader reforms program. *y realizing these benefits, #$G% embar ed on e+government program, based on the development of a number of management information systems for its various departments and the internet. !his case study outlines how %aisalabad,s e+government program, has helped alter the dynamics of governance in the $istrict and charts out how the program was developed, the conceptual basis for its inception, its ey processes, what was the impact and whether there are lessons for other Local Governments which can be drawn from the e(perience. !his study illustrates that how %aisalabad has started the process of e+government by developing information systems and why %aisalabad,s interventions succeeded when so many others may have failed.

TABLE OF CONTENTS

Serial 1 2 0 / 1 2 4 6 *ac ground

Contents

Page / 10 12/ 22 24 05 00

.ey #oncepts and the #onte(t !he #ase !he $esign !he Impacts on Governance #ost benefit analysis of I#! innovations Lessons and 3eflections #onclusion 3eferences

A CASE STUDY OF E-GOVERNMENT PROGRAMME FOR DISTRICT GOVERNMENT OF FAISALABAD

Ba !gro"n# 1. !he 7trategic "olicy 8nit &7"8' was set up by the %aisalabad $istrict Government in 2552, as a policy thin +tan . Its ey aim was to act as a conduit in the district from which all reform program could be initiated. In 255-, the 8nited .ingdom,s $epartment for International $evelopment &$%I$' agreed to provide technical assistance to the $istrict using the 7"8 as the platform from which change would be driven. !he 7"8 over a four year period has acted as a ey resource fostering social capital within the #ity $istrict Government and often being the focal point for local and international technical assistance and program development. 9ith a cohort of ey technical resources and change management agenda, it plays a ey role in facilitating public sector reforms and is replicable. It has been instrumental in assisting %aisalabad to become a modern administration. !he view is now commonplace that old patterns of industrial society are receding within much of the world and being replaced by a new form of organization associated with rapid technological change. !he industrial age is being replaced by an ,information age, in which , nowledge wor ers, and ,information labor, are emerging. Information and #ommunication !echnologies &I#!s' are at the centre of this paradigm shift, diluting dysfunctional bureaucratic forms of organization and bringing a new fle(ibility to decision ma ing. !he world has entered the era of the ,information society,. Go$ern%ent is at t&e entre o' t&is trans'or%ation Information and Government are ine(tricably lin ed and in today,s "a istan I#!s offer the tiers of Government the opportunity to ma e improvements in their services and responsiveness to citizens. !he use of I! and I#!s in the public sector is referred to as e+government. !he term e+government is broad and refers to more than )ust the use of web and internet based applications in Government. It encompasses all use of digital information technology, though primarily computers and networ s in the public sector. In %aisalabad, "a istan, the #ity $istrict Government harnessed the potential of I#!s and embar ed on a program of e+

government, radically altering the way it functions. :anagement Information 7ystems &:I7s' are locally designed, maintained and managed and are helping to transform relationships inside and outside Government. !hrough developing a range of :I7s and other measures related to interfacing with citizens in innovative ways, the #ity $istrict Government of %aisalabad &#$G%' has ta en the first important step towards e+government. !he #ity $istrict Government recognized the need to develop information systems that handled data and a delivered information to support decisions and transactions. %inance, human resource management, community development, roads and revenue were identified as the important strategic areas in need of management information systems, and the integration of these stand alone systems through a Geographic Information 7ystem &GI7' was also deemed necessary. !hese systems help to bridge poor coordination and cooperation within departments as well as empower those at the lower end of the hierarchical chain, and bring about greater levels of transparency and accountability. !hey have brought about significant efficiency and economy gains for the #ity $istrict Government enabling it to align its resources to ey development priorities more effectively.

(e) Con e*ts an# t&e Conte+t

2. ;+Government 7ystems :anagement Information 7ystems &:I7s'. !here are numerous definitions of e+government. In its simplest form, e+government is defined as the <use of I! by public sector organisations< &=ee s, 2551'. ;+government is therefore not )ust about the internet> it also encompasses office automation and internal management information systems as well as client facing web sites. !his definition fits the wor stages &=ee s 2551'? a. Automation? replacing human e(ecuted processes with computers e.g. computerizing personnel information or payroll> b. Informatisation? supporting human e(ecuted information processes e.g. decision ,support tools such as financial management systems> carried out by the #$G% during its reforms programme. A ey more comprehensive definition of e+government views it as comprising three

c. !ransformation? creating new I#! e(ecuted information processes or supporting new human e(ecuted processes e.g. creating new methods of service delivery or increasing democratic participation through electronic voting. 0. %aisalabad e(hibits aspects of first two elements> automation and

transformation highlighting how it has managed to begin saving the costs associated with carrying out functions such as finance and is moving towards third stage i.e. transformation. As a result of its wor in deploying e+government systems, %aisalabad is better connected, saves more money and time in delivering services, and is more conscientious of its e(ternal environment and sta e holders. 8sing this criterion and definition, %aisalabad is now automated and informative. In years to come, it will be in a position to offer more transformative online services. -. Manage%ent In'or%ation S)ste%s ,MISs-. !he foundation of the change

brought about by %aisalabad was the development of sound information systems to enable management decisions. !here is no universally accepted definition of an :I7. =owever the primary purpose of an :I7 is to inform people. @ne of the problems with trying to characterize an :I7 is that two distinct views e(ist of what an :I7 is supposed to do. A typical definition of :I7 is given below?<!he combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning< !his is the ,production oriented, view i.e. it concentrates upon the means of producing the information. =owever the view ta en by the %aisalabad Government in the course of the last four years is ,management oriented,. 9hereby, the means of production is secondary to ensuring that the correct problems are addressed and the right information is available to the managers and support staff that want it. !his change in emphasis from information ,systems, to information ,management, reAuires a different, more subtle, definition of a :I7. It further reAuires a focus on the interaction of systems specialists with

department managers and officers as a feature of successful :I7 development. !he definition which is of most use here and of relevance to the %aisalabad conte(t is? <A system to convert data from internal and e(ternal sources into information and communicate that information, in an important form, to managers at all levels in all functions to enable them to ma e timely and effective decisions for planning, directing and controlling the activities for which they are responsible<. /. E-Go$ern%ent S)ste%s as In'or%ation S)ste%s. !his leads us to as the

Auestion what does I! do then for public sector organisations li e. %aisalabadB It handles data to produce information. !he ne(t step to understand is that e+ government systems are information systems. At their heart lie data and information. !hese are handled by digital and sometimes non+digital information technologies. *ut this does not ma e a ,system,, a system is a collection of elements that wor s and has a purpose. !o understand e+government as an information system, we must add in some notion of activity and purpose. !his is achieved when we bring in people into the eAuation. %or e+government to be seen as a wor ing information system it must be seen as much more than )ust the technical elements of I!. Instead, it must be seen to consist of technology plus information plus people who give the system purpose and meaning, plus wor processes that are underta en. !hese dimensions shaped the information systems developed by the #ity $istrict Government in %aisalabad. 1. /&) Faisala0a# Nee#e# In'or%ation S)ste%s. !here are organisational

reasons why %aisalabad was failing to deliver effective services before the onset of its - year reforms program. In 255-, with the aid of technical assistance from the 8. Government,s $epartment for International $evelopment &$%I$', the #ity $istrict Government conducted an internal review and assessment of its management systems and processes. It highlighted a number of areas that needed to be addressed urgently where information and communication technologies &I#!s' could be used to bring about significant improvements in the way the #ity $istrict Government did business. It was noted that in almost all departments, information

was lac ing, and if available, it was scattered and was not regularly updated. #ritical decisions were thus being made on the basis of little or inaccurate information. ;ven when data was digitized, it remained in disparate formats lac ing a consolidated view to plan and analyze the resource utilization of the #$G%. !he challenge was to bring %aisalabad into the 21st century with the aid of technology based management systems. 7ome specific issues that were identified are highlighted here?+ a. 7cale of #ity $istrict Government. %aisalabad is both large and where vertical and horizontal differentiation undermines

comple(

organizational cohesiveness. AchievingC ,integration, was going to be critical to its desire to meet its wider ob)ectives of effective service provision. !his would reAuire improving access to information and a changing culture where information was openly shared for mutual benefit. !he deployment of management information systems would facilitate the brea down of boundaries. ,Doined up, Government could be achieved as a result of :I7. b. Automating =uman ;(ecuted "rocesses. !he use of computers in

%aisalabad had been limited. !hough departments possessed computers these were simply used as word processors to prepare memos or departmental budgets in simple e(cel formats. !heir potential strategic use had not been realized and there was much intransigence among lower tier officers to accept the organisational benefits of computerized systems. !raditional ways of performing routine tas s and functions were preferred. :anagement information systems would offer the opportunity to modernize to deliver more outputs with a minimum of effort. Euic er and cheaper governance would be achieved. c. "oor %inancial :anagement "rocesses 7everal important functions

lin ed to financial. management were performed badly in the absence of an automated system. %inancial information lac ed accuracy, was not reliable, was not shared with ey personnel and there was no accountability of how

public funds were being spent in ey social services. 3ecords of e(penditure often failed to match budget allocations, conseAuently affecting the way money was released to departments from finance managers. !he overall impact of poor financial management was that in 255- the #ity $istrict Government had a deficit in e(cess of millions of rupees. A management information system dedicated to predicting and managing the districts public finances would bring better transparency and accountability. d. "oor =uman 3esource :anagement 7ystems All personnel records for

02,555 employees were ept manually and dispersed. Fo system e(isted that enabled senior managers in the #ity $istrict Government to eep trac of its vast employees, identify those that were to retire, or indeed carry out any performance related valuations. All data pertaining to #ity $istrict Government employees was processed manually. !his was time consuming, e(pensive, with staff reAuirements freAuently misinterpreted and prone to human error. An automated human resource management system decision+ma ing. e. "oor #onnections between Government and #ivil 7ociety !here was would enable the department to provide better services and information, particularly for strategic

limited provision for communicating with civil society, citizens and society at large. !he #ity $istrict Government had inadeAuate mechanisms for liaising with its customers, consumers and service beneficiaries. Little or no information was provided to the outside world on successes or failures in service provision. $irect one to one contact at the front office level or service delivery level was the only way service provider and service user connected. @ften the relationship was strained with service users dissatisfied with the Auality of services. Areas of potential cooperation between Government and civil society tend to be limited in the absence of adeAuate communication tool.

f.

"oor #onnection between Government and #itizens G *usinesses of customer contribute to

7imilarly, information asymmetry characterized the relationship between the #ity $istrict Government and its wider citizenry. A lac orientation, communication and service connectedness

undermining governance in the district. !he #ity $istrict Government was not very good at providing information to citizens to enable better decisions or scrutiny. 7imilarly public input into Government decisions was limited to the district assembly where local councilors represented public interests. Hirtually no services were provided online e(cept details outlining the #$G%,s organizational structure. 2. /&at Faisala0a# &o*e# to A &ie$e . It was clear that the development of

different :I7s could help to save time and improve wor practices within #$G%,s departments. In terms of public sector organizations such as %aisalabad, there were many positive elements which could be achieved through the development of information systems. !hese can be summarized as follows? a. !he speed of service delivery? :uch more data can be processed and

retrieved faster. 9aiting time for clients is reduced and time ta en to handle information is also reduced. @verall, less time ta en handling ,normal, transactions allows more time to deal with specific ,abnormal, activities> Increased access to service agencies? Internet access and information ios s, etc. ma e it possible to broaden the availability of information to the public. "eople who want particular information can visit the agency web site when they reAuire it. c. 3emote control and transactions? Fetwor technology not only

increases participation but it also opens up the possibility of electronic payments which may be significantly more efficient than the e(isting system.

15

d. Increased transparency of clients? !he coupling and management of data bases provides more information on clients, etc. enabling better targeting and services. e. Lin ages across organizations? Fetwor of organizational boundaries and technology allows for the information sharing. !his

blurring

significantly lessens duplication and improves services in terms of seeing clients as a ,whole person,. f. Increased awareness of interdependence? 3educing the separatist

attitudes of departments and agencies and increasing awareness of interdependency of Government agencies. 4. #ritically, :I7 can be effective and efficient but also appear to be hostile to

users. @rganizations, in particular traditional Local Governments li e %aisalabad, are comple(, and information systems encroach on most areas. !hey therefore need to be sensitive to the needs of users and service managers. !his lac of sensitivity has led to many problems in implementing :I7. !he #$G% was acutely aware of the potential barriers to the introduction of new systems and ways of doing business, including? a. Lac of management involvement 9ith the design of the :I7,

sometimes translates into hostility and bloc ing off staff development and information. b. Farrow or inappropriate focus of the computer system, can result from

solutions being driven technically rather than managerially. c. @ver+concentration on low level data processing can result from

ignoring higher level applications.

11

d.

Lac

of managerial

nowledge regarding computers impedes the

process. e. f. "oor appreciation of management by :I7 professionals. Lac of top management support. of

9ith these potential challenges in mind, %aisalabad embar ed on the tas transforming its management information systems.

12

T1E CASE
6. $uring the initial phase of the reforms programme within #$G%, a detailed with clearly articulated ob)ectives for these

situation analysis of systems and processes of the departments was conducted to develop a strategic framewor departments. It was noted that in various departments, information was lac ing, and if was available, it was scattered and was not regularly updated. !he decisions were made in an un+informed manner in the absence of accurate information. !he #$G% concluded that development of different :I7s could help to save time and improve wor practices within its departments. :oreover, information systems is a ey aspect and one of the dimensions of -good governance and is mentioned in #$G%,s corporate plan. As a result, development and use of :I7s has been a ey tool in improving departmental systems and processes through the reforms programme in #$G%. Information systems have been developed for various departments li e%inance, =3, #ommunity development, 3evenue and :unicipal 7ervices etc. An integrated Geographic Information 7ystem &GI7'has also been developed which is the sub)ect of another separate case study. !he development of every :I7 has its own use, organisational process, history and development cycle. !his in itself is a great learning e(perience for #$G% i.e. moving from hard core data files to des top :I7 application and ultimately moving towards web+based solutions. !he development history of :I7s will have lessons for future users, amenders and replicators. !his case study illustrates the ey steps ta en to actually design :I7s &starting from inception', ey processes in implementing and them impacts on the service delivery mechanisms and governance in #$G%.

10

T1E DESIGN
(e) In'or%ation S)ste%s o' CDGF 15. A number of information systems were developed for

various departments of #$G%,

eeping in view their differing needs and

reAuirements and are described in this section. 7ome were developed during the early stages of the reforms programme, while others were introduced at a later point. 11. 1"%an Reso"r e Manage%ent In'or%ation S)ste% ,1RMIS-. =3:I7 has

been developed for the district,s =3 department &%igure 1', which has one of the largest wor forces amongst districts with more than 02,555 employees. =3:I7 considered critical, as basic data and information about the most important capital of #$G%, human capital, was almost non+e(istent. !he =3 department could not properly assess staff gaps, filled and vacant positions, the number of staff in offices and sub+offices, information about leave and retirement of the staff.

1-

12.

Finan ial Manage%ent In'or%ation S)ste% ,FMIS-. =uman 3esource

:anagement Information 7ystem. !he =3:I7 has automated the ey tas s of the =3 department. !he district departments are now in a better position to plan their human resources and can ma e decisions based on updated employee and establishment details. !he reAuired information can now be generated very easily which used to ta e several wee s. Given the large size of the #$G% including schools, roads, health centres, buildings, hospitals etc., it was natural that data about financial spending, fiscal reAuirements and planning was scattered in numerous paper+based files. !here were delays in the budget preparation process, reconciliation of accounts and release of funds. Access to data was limited, funds were routinely underutilized, and pro)ections for future allocation of funds were often not aligned with reAuirements on the ground. !herefore, an automated system was needed to consolidate the financial data of the #$%G and enhance financial responsibility, fiscal transparency and fle(ibility, allocative efficiency and e(penditure management. !he %:I7 was developed to help overcome these problems and it supports many of the ey functions and processes of the %inance and "lanning &%I"' department &%igure 2'. It is helpful in analyzing the financial position of the district and plays an important role in targeting pro+poor investments in the district.

1/

10.

Re$en"e MIS. !he #ity $istrict Government was facing innumerable

problems in eeping a record of local receipts being collected from different local revenue sources. "reviously there was no record available of the total potential of and actual revenue about collection, leading unrealistic budgeting. !he 3evenue ,:I7 is helping the department in eeping trac of receipts against their set targets, identifying lea ages, and preparing realistic budgets based on actual revenue potential &%igure 0'.

11

1-. Citi2en Co%%"nit) Boar#s Manage%ent In'or%ation S)ste% ,CCBMIS##*s are an institutional mechanism introduced by the devolution programme, and form a new area of wor for the Government. !hese are voluntary organisation which are formed by 2/ people resident of a 8nion #ouncil &smallest unit in "a istan' to carry out development wor in the 8nion #ouncil. All ##*s are registered with the #ommunity $evelopment department and are reAuired to have uniAue names within the $istrict. :oreover, a community board may only have members who are not members of any other ##*. 9hile simple, abiding by these reAuirements without a digitized central management information system, the process was time+consuming and difficult for the department. "rior to the ##*:I7, the records for over 1155 ##*s in the district were maintained in paper+ based files. !herefore, when an applicant submitted an application, typically the only procedure that was followed was to chec for the uniAueness of the newly proposed name. #ross chec ing members of the board against previously registered ##*s, was often not possible due to the tedium of the tas . !he ##*:I7 maintains the records and details of all ##*s and their developmental pro)ects.

12

1/.

Roa# Manage%ent In'or%ation S)ste% .

3oads are an important

asset of the #ity $istrict Government. =owever, the district had ma)or problems in identifying which road networ needed maintenance and which has had ma)or repairs more than one time. *eing unable to prioritise the maintenance needs of the roads, this important asset was being wasted. !he 3oad :I7 &%igure /' has helped the #ity $istrict Government in identifying roads and in prioritising their development need.

11. Geographic Information 7ystem &GI7' After the successful development of other stand alone information systems, the #$G% also embar ed on developing a Geographic Information 7ystem &GI7' &%igure 1'. It was realized by the $istrict Government that the unavailability of physical mapping of infrastructure and services was resulting in inappropriate pro)ects. !he GI7 was introduced to improve the targeting of poor areas and enhance the planning process for future investments. Importantly, all e(isting information systems have been lin ed with the GI7. !hrough one time clic ing, information about various services can be retrieved. %or e(ample, in a village complete information about a school e.g. physical condition of the school, staff of the school and financial allocations to

14

the school can be retrieved, which has enabled a more integrated planning process across the district.

12.

.ey "rocesses in $eveloping :anagement Information 7ystems in #$G%.

9hile a number of information systems have been developed, the development of the %inancial :anagement Information 7ystem &%:I7' and =uman 3esource :anagement Information 7ystem &=3:I7' are illustrative of the approach used by the #$G% and these processes are described in some detail in this section. 14. Institutional Leadership. It was decided from the outset that the

Information !echnology $epartment would lead the systems development wor in the #ity $istrict Government. !echnical and analytical support was provided by the pro)ect team of 7trengthening $ecentralized Local Government in %aisalabad &7$LG%' pro)ect, but responsibility for leading the day to day pro)ect management lay with the ;(ecutive $istrict @fficer &;$@' of the relevant department, with the I! department overloo ing the a

16

process. !he advantage of eeping the I! department in loop was threefold> to ensure that the pro)ect was owned by the I! department, even though it lac ed ey staff> secondly, it sent out an important message across the organization that despite a lac of capacity, the department was still responsible for ey I! functions and was ready for business and thirdly all I! related issues needed to be routed through the I! department rather than being handled independently. !his was an opportunity to give the department a more meaningful role and profile within the #$G% as envisaged within the local government ordinance. 16. 8se Local, Low #ost Indigenous 3esources and !echnology. !he #ity $istrict Government resisted the temptation to use commercial off the shelf sophisticated systems. !he I! department and other senior departmental managers opted to use the :icrosoft 9indows platform. %or a the %inancial :anagement Information 7ystem &%:I7' initially H*1 was used before graduating to A7".net for two reasons? a. A7".net afforded rapid prototyping, with a good development

framewor such as the :icrosoft Hisual 7tudios. b. !he initial H* 1 version was designed solely as a des top

application, without support for remote access. A7".net affords remote networ access, enabling a model where a single installation of a system can serve several sites. 25. %or storage purposes all the systems use :icrosoft 7EL 7erver 2555

database. !he e(isting choice of development tools was dictated by the s ill set of available programmers but more importantly the concerns of sustainable use and e(tension of the developed software. !he team responsible for developing and implementing various information systems was hired locally in %aisalabad.

25

21.

Cons"lt an# B"il# Ca*a it) along t&e /a). !he #$G% team led by the ey consultation meetings and discussions with

I! department held several

sta eholder departments on their user and system problems and reAuirements. #ounterparts from relevant departments were identified and assigned to develop information systems. !he approach,s ey strategy was to have departments as part of the process at all stages and ensuring that s ills were being transferred. !hough time+consuming, it enabled managers and officials to see the time ta en to develop such systems. $epartments discussed and identified their own problems and discussed how they could be overcome with the I! department. !his resulted in a far more robust systems development process than might have been the case had commercial off the shelf systems been used. !he ey strategy was to involve Government at all stages and incorporate the input of users into design. 22. Adopt 7oft 7ystems Approaches. %aisalabad adopted a ,soft systems, approach to develop its management information systems. !his differs from hard methods, in that they document the bounded areas of data low or systems. !he former loo s at soft methodologies in which the boundaries of systems may move as sta eholders in the system are identified and intangible elements are s etched out. !he #ity $istrict Government realized that an approach which detailed how data flowed would be insufficient and there was a need to understand the social, political and cultural conte(t within which data flowed across boundaries. !he #$G% team sat down with departmental staff initially and mapped some of the soft intangible issues, deriving purposeful systems which were then e(pressed as a conceptual model before any discussions too , place about technology. 20. !he 7ystems $evelopment Life #ycle &7$L#' Approach. !he #$G% team,

relevant ;$@s, departmental staff and I! department then moved onto analyzing and designing their respective systems and reAuirements. =ere the systems development life cycle &7$L#' was used as a ey methodology with inputs from

21

department managers and users. !his approach presented a number of advantages for the I! and client departments. ;arly applications and systems were driven by technical rather than organisational criteria. !his system, though dated, attempts to introduce better information systems in an integrated environment. !he #ity $istrict Government adopted it because it enabled its managers and officers, with limited capacity and e(perience to see the benefits of viewing information systems within a human and organizational conte(t. All of %aisalabad,s information systems were subseAuently developed using its si( main stages> finance is used for illustration purpose. !he same 7$L# approach was used for =3 as well as for other information systems. 2-. 7ituation Analysis and %easibility A detailed assessment of e(isting financial and human resource systems was )ointly underta en with I! department and the concerned department. $etailed process mapping was underta en for transactions, wor and tas ey flows. A detailed picture was built of the way in

which data was generated, stored, managed and converted into information for ey sta eholders. %or e(ample, the budgeting process was mapped completely from the point at which the budget call letter is issued to when costs and e(penditure are recorded within departments, and who were the ey internal and e(ternal actors in the process. It was critical to understand finance and =3 processes within the Government before proceeding with their re+engineering. 2/. 7ystems Investigation and Analysis. =ere the #$G% identified the

resources, capacity and direction that individual pro)ects would ta e to implement the systems. !he teams familiarized themselves with the boundaries that e(isted in financial and =3 information flows and the ind of data that needed to be processed. Analysis was carried out that would lin the information systems with the aims and structures of the organisations. In the case of finance, how the %inance and "lanning department would lin with the non+devolved $istrict Accounts @ffice and its personnelB In the case of =3, how each department would ma e the records of personnel available to the $istrict @fficers

22

=3IHI and %inance and "lanning. 8ser views and reAuirements would need to be incorporated into the analysis so that system reports reflected the information they needed and would be practically useful. Sit"ation Anal)sis an# Feasi0ilit) 21. A detailed assessment of e(isting financial and human resource systems was )ointly underta en with I! department and the concerned department. $etailed process mapping was underta en for ey transactions, wor and tas flows. A detailed picture was built of the way in which data was generated, stored, managed and converted into information for ey sta eholders. %or e(ample, the budgeting process was mapped completely from the point at which the budget call letter is issued to when costs and e(penditure are recorded within departments, and who were the ey internal and e(ternal actors in the process. It was critical to understand finance and =3 processes within the Government before proceeding with their re+engineering. 22. 7ystems $esign, Implementation and ;valuation @n the basis of the een to

analysis, new tas s and wor flows for each of the departmental systems were designed. %or e(ample, %inance and "lanning department was streamline its financial releases process. !his used to be a cumbersome process which involved too many decision ma ers G layers and led to impeding service efficiency. It was calculated that it would ta e eight stages to underta e the tas . @ptions were discussed with the %inance I "lanning and other departments, and it was agreed to re+engineer the process down to si( ey steps. 7imilarly in =3:, almost /55 personnel would be involved in ma ing data available to corporate management. An automated system was needed that would provide access to accurate and timely personnel information to corporate management. %:I7 and =3:I7 were developed and are constantly reviewed and strengthened to meet %aisalabad,s needs.

20

24. :aintaining the Information 7ystems @nce developed the information systems were not handled in isolation by the systems development team. !hey were handed over to the departments through an incremental process and the capacity of departmental staff was built throughout the process. !he I! department through its #omputer !raining #entre has been imparting trainings to male and female employees of #$G% on basic computer s ills, e+mail and Internet. !rainings on information systems for the staff including ;$@s, $istrict @fficers &$@s', $eputy $@s, $rawing and $isbursing @fficers &$$@s' and cler s of the relevant departments have also been conducted. + All management information systems are currently fully institutionalized and are being used and updated by the departments. !he GI7 is the sole e(ception, and is being maintained as a separate unit, with a view to integrating all the departments. Hideo and technical documentation and user manuals for all :I7s have been prepared to aid userJs, amenders and replicators in future.

2-

T1E IMPACTS ON GOVERNANCE

26. Academics and practitioners argue that I#!s can ma e governance more

effective and efficient, while bringing other benefits. 7ome ta e the argument further and suggest that e+government has the potential to benefit the poor too. 7imilarly some not only view e+government as changing relationships in governance but helping traditional bureaucracies ma e the gradual transition to modern administrations. %aisalabad is a case in point. !he use of e+government systems such as those deployed by %aisalabad &:I7, internet and intranet' can be divided into three main domains against which it is possible to measure progress in governance. !hese are e+administration, e+services and e+citizens. 05. ;+Administration !his refers to use of technologies to improve internal

organizational functions and processes. !ypically these will be Government to Government services &G2G' and reflects %aisalabad,s commitment to two of its core dimensions of good governance namely organizational improvement and information systems. In this case, %aisalabad used achieve substantial gains organizationally with information wide systems to ranging benefits.

Investments in management information systems have led to a reduction in the costs associated with carrying out a number of functional tas s and internal services. 7econdly the management of ey processes of the #ity $istrict forde planning has Government such as budgeting, reconciliation and wor

become easier for officers. !hirdly, the automated systems have helped departments become better connected, improving their coordination and communications which in the past were dis)ointed. 7o how do we do thisB !here have been significant achievements, with demonstrated impact on efficiency and effectiveness? the budget cycle has been reduced from 6555 man+days to 0555 man days and from -/ days to 6 days> the =3:I7 has saved almost 1/55 man hours and can generate relevant management information in minutes> the 3evenue :I7 has reduced the processing time for bills from 1 man days to 2 man days> and the ##*:I7 has reduced the registration time for ##*s from four

2/

to si( wee s to one wee . Importantly, all :I7s are now lin ed through the GI7, allowing spatial representation and a tool for evidence+based planning. Internal service costs were significantly reduced by replacing functions that were carried out manually with computers and automated information systems. 01. 7aving #osts, Improving "roductivity, Achieving Halue for :oney 7aving

#osts, Improving "roductivity, Achieving Halue for :oney internal service costs were significantly reduced by replacing functions that were carried out manually with computers and automated information systems. !wo e(amples highlight the transformation from manual to simple e+administrative processes. !hey demonstrate the potential and power of information systems and technology in ma ing Government efficient and economical. 02. ;ffective "rocess :anagement Automated systems offer opportunities for better

the better planning of resources, by avoiding duplication and using

Auality information. %aisalabad,s =uman 3esource :anagement Information 7ystem is e(ample of how manual planning processes can be streamlined to bring efficiency and productivity. !he computerization of personnel records for over 02,555employees mar s a watershed for %aisalabad. !he data is centralized in a unitary repository, which eases its management. 7ignificant time costs are reduced when generating establishment, retirement and seniority reports for district and provincial departments. 00. #reating ;mpowerment. !he creation of these information systems has

had profound power implications for a hierarchical #ity $istrict Government. In particular, information that was only previously accessible to senior managers is now available to decision ma ers further down the hierarchy. =3:I7 is accessible through the web to ;$@s, $istrict @fficers &$@s', $eputy $istrict @fficers &$$@s' and even Assistant ;(ecutive @fficers &A;@s'. %:I7 access has been provided to $rawing and $isbursing @fficers &$$@s' in the field.

21

0-.

;+7ervices and ;+#itizens !hese areas deal with relationships between

Government to citizens and Government to business interactions. ;+services allow citizens to access information electronically, and to submit information online. ;+citizenship is about two way communication, influencing public policy and practice. !he internet has changed the face of communication and it presents a number of ways in which lin s with consumers can be strengthened.

COST BENEFIT ANALYSIS OF ICT INNOVATIONS

0/. An assessment of the costs and benefits of developing many of the information systems led systems reveals economy gains for the #ity $istrict Government. #ustomized systems which were cheaper and simpler have saved the #ity $istrict Government considerable costs, than if they had opted for more e(pensive off the shelf options. !herefore these systems are affordable and can be replicated in other districts at lower costs than is anticipated. 01. Cost o' De$elo*%ent Cost. 9ithin finance the %:I7 and documentation

management system cost the #ity $istrict Government an estimated 3s 2 :illion &#$G% "erformance 3eport+1, 2552'. !his included both hardware and software in its development over a four year period. At the same time, these systems are now helping the Government to save annually more than 3s. 15 :illion in time and costs associated with the district,s financial management processes. 7imilarly, in human resource management the =3:I7 cost the Government appro(imately 3s. /./ :illion &#$G% "erformance 3eport+1, 2554'. !his is a small cost when compared to the number of person days, e(penses and other costs which were being incurred by the #ity $istrict Government as a result of manual, labor intensive systems. In the #ommunity $evelopment department its ##* :anagement Information 7ystem setbac the administration in the region of 3s. - :illion &#$G% "erformance 3eport+1, 2552'. =owever this system has helped to reduce the time ta en to register ##*s and their respective pro)ect applications from several wee s to one wee . 7imilarly, it has led to the department now releasing funds for approved pro)ects within a -/ day period

22

instead of after several months. 9ith over 1155 ##*s in the $istrict, these are significant inroads into the benefits of automated systems bringing widespread modernization and efficiency for the #ity $istrict Government. !he cost of developing the 3evenue :I7 and 3oad :I7 is 3s. / :illion and 3s. 0.15 :illion respectively. !he 3evenue :I7 will help the department in saving 3s. 1 :illion per annum through greater efficiencies. !he $istrict,s GI7 has been developed in+house, using local resources and within 3s. 25:illion. !his is considered to be cost+effective for a system of its ind.

LESSONS AND REFLECTIONS

04. !his section of the case study highlights a number of important lessons which are relevant to Local Governments and organisations in general when designing e+government systems. 06. :atch !echnology with Indigenous 7 ills It is critical to assess early on

before programme design is initiated that what level of s ills e(ist in the client organisation. In the case of %aisalabad, it became very apparent that poc ets of technological capacity were present and that the prevailing culture was one of s epticism. !he full potential of I#!s had not been realized. =ence there was a need to develop customized technological solutions rather than implant e(pensive off the shelf systems. -5. 8se Local and *uild Local #apacity and ;(pertise !he #$G% encouraged

the use of locals within Government and outside to develop and implement the programme and its systems. 8sing e(perts outside of %aisalabad would not only have been e(pensive but an unsustainable solution. *y wor ing with programmers and departments from within the #ity $istrict Government, the significant understanding and awareness of the role of I#!s in development now rests within the #ity $istrict Government.

24

-1.

7ocial, "olitical, #ultural and "eople $imensions of ;+government

$eveloping I#! programmes and+ systems with simply technology in mind is a mista e and a recipe for e+government failure. I#!s and e+government programmes do not operate in a vacuum and to assume so when designing information systems or other e+government initiatives is naive. It is therefore critical to address the organizational dimensions often founding large comple( Local Governments li e %aisalabad. 8nderstanding the people, the social interactions and cultural norms and sub+systems is a pre+reAuisite for successful information systems development and implementation. !hese systems brea organizational boundaries and improve information flows. -2. 7ta eholder Involvement !he design and e(ecution of e+government

programmes is not the sole responsibility of the I! department. %urthermore, %aisalabad demonstrates that the I! department has the potential to ma e significant intellectual contributions to the development of e+government systems such as management information systems. Incremental approaches to systems development are important where sta eholders are carried as eAual partners, rather than technocratic styles of management, and should be adopted where possible.

26

CONCLUSION
1. In %aisalabad the #ity $istrict Government has demonstrated how new

information and communication technologies can ma e a significant contribution to the achievement of good governance goals. !hrough its broad governance reforms programme the #ity $istrict Government deployed automated management information systems, invested in a new website and at the same time modernized its internal communication processes. !hese investments in I#!s have made important differences to the way the administration is governed and manages its e(ternal relationships. =owever, there is much to be done and the process of complete I#! enabled transformation is as yet incomplete. 2. Information systems have been at the heart of the #ity $istrict

Government,s shift to electronically enabled local government. !he systems and their deployment have been viewed+ as a means to an end and not an end in themselves. !he cru( of %aisalabad,s desire to change is lin ed to providing better services, to that end it has been een to e(plore how technology can support service provision. Inter+lin ed to that is to e(amine the way relationships, particularly e(ternal ones are configured. 7o, how %aisalabad can engage with citizens and society more openly and effectively therefore enable it to understand their needs. 0. %aisalabad now possesses management information systems for finance,

human resources, ##*, revenue, roads and an integrated GI7. !hese were developed by the #ity $istrict Government through a process of detailed consultation and incremental phased implementation over a four year period. #arefully designed with users in mind, the I! department led the process using soft systems approaches where consideration was given to, human systems, in which such technologies e(ist. %urthermore, the #ity $istrict Government adopted the simple 7$L# approach to many of the systems developed above. #oncurrently individual and departmental capacity was built in the process so

05

that the systems are managed and run successfully beyond the life of the reforms programme. -. In turn, these systems have brought about efficiency and effectiveness in service delivery for the various departments of #ity $istrict Government. !here is now cheaper and Auic er governance that givesK more than ever before. In %aisalabad,s important strategic areas, finance and human resource management, departments are now producing the same outputs at a lower cost and in shorter time thus significantly improving the service delivery mechanisms. In some instances such as community development services, more outputs are being delivered at the same total cost. !he Government now has an evidence+ base for planning, building on the :I7s. /. :oreover, governance is wor ing better now. !he internet provides

opportunities for Government and e(ternal users ali e. A higher Auality of service is provided through the internet. Fo longer do individuals need to travel to Government offices where in efficient services are so often offered. !herefore innovative Government has emerged providing new outputs and opportunities. =owever challenges remain. 1. @ver time the #ity $istrict Government will need to address the digital

divide and how accessibility of information to the poor can be improved. !hough internet access is good, and there is evidence from %aisalabad that what it publishes is accessed, the Government has much to do in building a nowledge+ based economy and society. !hough significant strides have been ta en by the Government through information systems, there is some way to go in achieving the gains associated with e+society. !he e+government programme needs commitment from the #ity $istrict Government to continue. !he Government needs to develop information systems for the remaining departments li e =ealth and Agriculture etc. !here is also needs to establish a monitoring mechanism, perhaps by constituting a committee to oversee and monitor the process of

01

updating the information systems. #ritically, %aisalabad highlights what can be done through technological innovation. !hese efforts can be replicated at smaller costs. 2. %inally it is important to remember that I#!s are not a magic wand

changing the problems associated with poor governance. !he role of e+ government needs to be viewed within broader organizational development goals and commitment to providing Auality public services. =owever technology must now ta e centre stage if Local Governments in "a istan are to modernize.

02

REFERENCES
1. =ee s 3 &2551' Implementing and :anaging ;+Government? An

International !e(t, 7age "ublications. 2. =ughes @ &2550' "ublic :anagement and Administration "algrave

:acmillan. 0, ;scoffier and =argreaves &2551' :a ing e+Governance wor for "oor

"eople? 8sing Information and #ommunication !echnologies to Improve Governance in $eveloping and !ransition #ountries> Governance $epartment, $epartment for International $evelopment &$%I$'. -. %erguson : &2555' ;+Government 7trategies !he $eveloping

International 7cene? "aper presented to the conference <Internet, $emocracy and "ublic Goods< 8niversidad %ederal :inas Gerais *elo =orizonte, *razi. /. =ee s 3 &2551' 8nderstanding e+Governance for $evelopment> Institute

for $evelopment "olicy and :anagement, 8niversity of :anchester I+ Government wor ing paper series. 1. #ity $istrict Government %aisalabad &2554' "erformance 3eport Fo? 1,

7trategic "olicy 8nit, "a istan.

00