Professional Documents
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Impact of Technology On Organusationx
Impact of Technology On Organusationx
BUSINESS ENVIRONMENT
Subject:-
Presented By:
(B-09) Divyesh Sharma
(B-20) Mitul Kamdar
(B-34) Bankim Parmar
(B-42) Pradeep Prajapati
(B-47) Sandeep Todarmal
CONTENT
Impact of Technology on Organization structure.
Example of modern day technologies.
Impact on banking industry.
Status of technology in India.
Status of technology in Gujarat.
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changing work demands. Small-batch technology is relatively expensive to operate because the work process is
unpredictable and the production of made-to-order products makes production planning difficult.
Fear of Risk
There is always the fear of risk. Take the case of DuPonts Corfam, an intended substitute for the
forecasted shortage of shoe leather. After an investment of $ 300 million, the company abandoned the project in
1971 because of quality and cost problems. Even a research-oriented company like DuPont, which was
responsible for adding totally new dimensions to the textile industry with its introduction of synthetic fibres
beginning in 1939, was unable to manage technology without great risk and some subsequent failures.
Resistance to change
The manager of a given business unit shall face resistance to change. New technology poses new
problems which may not be to the liking of the organizational men. The resistance to change is purely
psychological.
A typical businessman himself is opposed to new technology. He does not encourage new technology.
Reasons are not purely psychological. Adopting new technology is expensive and risky. When he is making
enough money with obsolete technology why must he worry about new technology? Take the case of erstwhile
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Telco for example. Telcos trucks were still antiquated models only found in developing countries. But the
turnover of Telco was Rs. 1,969 crores during 1989-90. Another example is Bajaj Auto, Ltd. The company
claims to be number two in the world in the manufacture of two wheelers. But during the last two decades the
company could not develop a self-starting scooter. Or take the case of Indian Telephone Industries (ITI) which
was till recently manufacturing strowger crossed switching equipment that became outdated 10 years ago with
the development of electronic switching system.
Specifically, resistance change stems from the following reasons:
a)
b)
c)
d)
e)
f)
g)
h)
Meet the customers requirement on time, the first time, and 100% of the time.
Strive to do error-free work.
Manage by prevention, not by correction.
Measure the cost of quality.
TQM has been introduced by almost all organizations. It has several implications for employees and
organizations. Managers are required continuously to search for improved policies and activities.
Employees can no longer rest on their past achievements. They too are required to search for newer and
better ways of doing things. Some of them may experience stress from a work climate that no longer accepts
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complacency with the status quo. Employees will be more and more involved in process improvement.
Management will look at them as a source of improvement of ideas.
Some of our companies have excelled in quality and have won the prestigious prize for excellence in
quality.
Initially the work was done with simple machines using human or animal power like bullock carts were
used for transport, clothes were manmade and no industrialisation was there.
With the invention of steam engine locomotives were used for transportation, textile mills using steam
power came up and steam engines were been used for many purposes.
Then came the internal combustion engine (diesel and petrol engines) and many industries using steam
engines now started using the internal combustion engines like steam engine for train were replaced
with diesel engines.
With the inventions of electricity and electric motor the steam engines were replaced with electric
power like in textile industries which used heavy steam engine to run its machinery started using
electric power and because of its advantages all the companies had to shift to electric power to stay
competitive.
Now with the new development of instrumentation and control a lot of automation has happened and
most of the machinery is now computer controlled. This has increased the productivity and efficiency of
the companies.
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Convenience in conducting business worldwide; facilitating communication across borders which brings
globe closer.
An electronic meeting and trading place, which adds efficiency in conducting business.
Power to consumers as they gain access to limitless options and price differentials.
Efficiency in distribution.
The following table shows some of the most important business models that have emerged. All in one way or
the, use the internet to add extra value to existing products and services or to provide the foundation for new
product and service.
Category
Description
Examples
Virtual Storefront
Amazon.com
RedEnvelope.com
Information broker
Edmunds.com
Insweb.com,
Realto.com
Transaction broker
E*trade.com
Expedia.com
Online
marketplace
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eBay.com
Priceline.com
Chemconnect.com
Category
Description
Examples
Content provider
Online service
provider
Streamload.com
Xdrive.com
Salesforce.com
Virtual community
YouTube.com
MySpace.com
Portal
Yahoo.com
MSN.com
This shows that how technology has impacted and changed the entire way of doing business. Many of
the changes are such that no one could have imagined a few years before.
Technological advancements in internet, software and electronic hardware have also led to open
sourcing, outsourcing and in sourcing, lets have an idea of what these terms mean:
Open sourcing:
Open-sourcing means that companies or ad hoc groups would make available online the source code-the
underlying programming instructions that make a piece of software work-and then let anyone who has
something to contribute improve it and let millions of others just download it for their own use for free. While
commercial software is copyrighted and sold, and companies guard the source code as they would their crown
jewels so they can charge money to anyone who wants to use it and thereby generate income to develop new
versions, open-source software is shared, constantly improved by its users, and made available for free to
anyone. In return, every user who comes up with an improvement-a patch that makes this software sing or dance
better-is encouraged to make that patch available to every other user for free.
Outsourcing:
Outsourcing means getting a part of your work done by some other company in a cheaper and more
efficient way. Every company has its core competency and its always advisable to concentrate on ones core
competency. This can be done by getting the other work or the back office jobs done by someone else at some
other place. This has become possible with the help of high speed internet and telecommunication facilities.
Many of the US companies have outsourced their work to Indian IT firms like Wipro, Infosys, and TCS etc.
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In sourcing:
In sourcing means getting some part of your work or some business process done by some other company which
has its core competency in that process. For example Toshiba has in sourced its repairing of laptops to UPS.
Toshiba had developed an image problem several years ago, with some customers concluding that its repair
process for broken machines took too long. So they in sourced that work to UPS. When any Toshibas laptop
breaks down and the customer calls for repair then the UPS employee would pick that laptop from the customer
takes it to the UPS hub repairs it and gives it and gives it back to the customer, this saves the for transporting the
laptop from UPS hub to Toshiba repairing facility and then back to UPS hub and then to the customer. This
brought down the repair time of Toshiba to three days and helped them improve there image.
The banking sector has been the subjected to tremendous change because of new technology so let us
discuss the technological environment in banking sector.
Section 1:
ROLE OF INFORMATION TECHNOLOGY
The financial sector, comprising banks, stock exchanges and insurance organizations, have been the backbone
of every country. They are agents to implement and bring about economic reforms. The development in
information collection, storage, processing, transmission technologies have influenced all aspects of the
banking activity. The objectives of this are to describe the extent to which these developments have been taking
place in the banking industry with special reference to India and analyse adaptation and risks related to
technologies progress as well as relevant issues.
Information technology development affects banking in two ways.
1. First, they contribute in the reduction of costs associated with management of information by replacing paper
based and labour intensive methods with automated processes.
2. Secondly, they modify the ways in which customers have accesses to a banks services and products, mainly
through the use to automated processes such as remote banking. The phenomenon of remote banking is very
recent.
Remote banking is currently offered by all the major banks in India. Most of the standards retail banking
services is offered through the use of Automatic Teller Machine, tale banking and online banking. Online
banking is generally not widespread, yet all major banks have their online banking portals. Internet banking is
expected to have the highest growth potential incorporating increasingly sophisticated products. The use of
electronic money is one such innovation. The main reasons for slow acceptance of internet banking are cost as
well as security concerns, low reach of internet and weak legal system.
Section 2
REMOTE BANKING
Remote banking refers to the provision of extending banking services without face to face
communication between the bank employees and customers. The following types of services fall within the
range of remote banking defined above.
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Uses of ATMs:
Use of ATMs has seen an exponential growth in India ICICI bank is most aggressive deployer of ATMs
and has seen its base surge from 125 ATMs in January 2000 to more than 3000 ATMs today. Such has been the
impact of ATMs that ICICI Banks customer base has grown from two million to ten million. Now they are
targeting 8 ATMs per branch.
Online Banking
The total number of registered users for internet banking in India is over five million. India has a little
less than three million active internet banking users. And though this in just 0.3 per cent of the total population,
it represents a high percent of the Indias Internet user population, thus indicating that the concept of internet
banking is surely catching on.
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Telephone Banking
Telephone banking is also catching up across the countries. Transaction such as request for loan, credit
cards and account balance enquiries, are increasingly being carried out through a phone or mobile.
Spectacular growth in the use of online banking facilities to manage money rather just for account
reportingin both retail and corporate sectors.
New digital signature legally binding in many countries leading to entirely new patterns of consumer
activity.
Huge growth in wireless banking and payment services using mobile phones.
They are facing problems like security, identification, increasingly costs and legal frame works also pose a
challenge.
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The TRGS system is operated by the Reserve Bank has, in line with the international trend moved them
(except the Inter-bank Clearings at other than Mumbai and the High Value Clearings) to either secure and
guaranteed systems or the Real Time Gross Settlement System (RTGS).
Safety addresses risk. Payment Systems, by their nature, are risk prone and so, the need for addressing
these risks assumes significance, Sound designs, rules, and practices promote the safety of payment for
users and their financial institutions.
Security addresses the issues relating to confidence with specific reference to the users of these systems.
Public confidence in the integrity of basic paper payment instruments was built up over very long period
of time. Prudent users will require strong evidence that these new systems will meet their needs in both
normal and exceptional circumstances. The payment service providers realize that confidence is an asset
to be guarded.
Soundness aims at ensuring that the systems are built on strong edifices and that they perform over a
long period of time. All the systems are envisaged to be on sound footing, with adequate legal backing,
firm operational procedures, and transparency norms.
Efficiency represents the measures aimed at efficiencies in terms of costs so as to provide optimal and
cost effective solutions.
Application of IT into banks internal operations, products and distribution methods in order to gain
competitive advantages and increase the markets share as well as to improve efficiency and risk
management.
The formation of alliances with technology partners, telecommunication providers and IT vendors in
order to create common platforms which allow further developments in the effective application of the
most up-to-date IT and to optimize R&D implementation costs; and
Diversification into other business such as electronic commerce and non-financial services. Technology
is an important strategic tool for banks to safeguard long-term competitiveness, cost efficiency and
profitability. Technology enables banks to obtain additional marketing instruments and reductions. In
any case, bank also needs to evaluate the risks involved in adopting any technology.
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COST ASPECTS
The most important driver of quick adoption of technology in any sector is the possibility of achieving
significant cost reductions in the long term. Banking sector is no different. The use of technology in banking
sector might reduce the per transaction cost and hence the overall operating expenses in the long run. The
cost reduction may be attributed to the following factors:
The reduced cost of automated processes as compared to labour intensive ways to process the various
bank transactions. This is a long term phenomenon.
The lower Turn around Time (TAT) and the response time for the response time for the transactions.
Existence of greater economies of scale in the case of automated processes as compared to manual
processes.
Centralization of information and processing functions lead to reduction in costs in the long run.
Typically, it might cost a bank close to Rs50 per transaction if conduced in a branch. The same, if done
through an ATM, cost about Rs 15. A look at the volume of ATM transactions conducted reflects the
level of success of this delivery channel. The adoption of Internet banking by the banks customers is
important since the costs per transaction in this case are even lower than those of an ATM. A net-based
transaction costs the bank only about Rs 4
There might be certain catches while implementing technology in banking. These are:
A relatively large number of transactions might have to be built up before economies of scale are
achieved.
Some redundancies might build up. For example, a remote banking channel and conventional channel
catering to the same segment of customers will involve redundancy since multiple channels are present
for the same use.
Higher use of technology requires highly trained manpower. This involves significant training costs for
the existing employees and a general rise in salaries.
The technology keeps changing very rapidly and hence, banks must keep pace with the latest IT tool,
which will further push up the cost.
In the banks, significant cost advantages will accrue only in long term, however, these reductions might not
be dramatic. The variable costs will decrease while the fixed costs might increase. At present, it is difficult to
assess how much cost advantage has been achieved by banks; however, the labour costs have seen a decline
with the gradual implementation of technology.
Revenue Aspects
The investments in IT are not just on the basis of cost considerations but also with a view to attract more
customers and thereby to increase the revenues. This is done offering new services using technology and
attracting more number of tech-savvy customers. Many banks have seen a surge in customer base and revenues
since the time they implemented technology.
Technology has a major impact on a banks relationship with its customer since the implementation of CRM
(Customer Relationship Management) tools in banking.
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Personal information and banking behaviour of each customer is re-tracked and stored which helps in
coming up with customized solutions for the person. This improves the customer loyalty and also helps in
targeted marketing for the bank.
Another aspect is the emergence of competition with the websites of banks just a mouse click away. This
helps the customer look out for the best deal in the market. The market has today seen that much customer deal
with multiple banks trying to locate the best player for their specific needs. One might have an account in ICICI
but avail of a loan from SBI and carry a Citibank credit card. Increased competition might create a pressure to
change a system to cost-based pricing. The new entrants, which avoid the cost related to a branch network, will
have a certain cost advantage compared to established banks. Customers demand the best service and
implementation of technology can help retain the customers in long run.
Numbers of Customers
The branch networks are witnessing an impact as a result of technology. This is being done by deciding
the number of customers to be serviced through both remote banking and conventional banking.
Bank Branches
In the short term, the branch network will remain as it is, since the physical presence is still considered
necessary because the remote channel would not become complete substitutes.
Bank Personnel
The redundancy among bank employees will rise due to the automation of previously manual functions.
The technical competency among the employees will rise and bulk of employee work will shift to marketing,
telephone operations and maintenance of the system. Thus, the employee strength might not exactly change.
Outsourcing
Bank outsourcing activities, such as IT support, printing, security, transportation and document
processing. Outsourcing is slated to increase drastically in future as organizations identify their correct position
in the value chain. Outsourcing is being considered due to various reasons which include absence of in-house
competence, improvement in efficiency and economies of scale or flexibility.
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Strategic Risks
The strategic risk includes:
Increased competition
Excessive investments in technology
Long time lag for break even
Legal Risks:
The legal risks are attributable to laws and regulations in the wake of the ever changing technology.
These laws relate to validity of proof of electronic signatures, customers privacy, technical failure
responsibilities and data protection. The legal disputes may arise due to disputed cash withdrawals, sharing
responsibility between banks vulnerability of transaction on internet, hacking and breakdown of computers.
Operational Risks
For banks, there is always an operational risk of technological failures. Open internet architecture poses
a risk of external intrusion while employees pose a risk of data leakage. Some operational risks are the
mishandling of IT products, inadequate safety of IT infrastructure, leakage of password, dependence on the
third parties, obsolescence of technology or ill designed IT package. Operational risks also pose a major
reputation risk which can lead to loss of customers.
Credit Risks
An increased use technology of technology leads to easing of mechanisms to disburse loans. The use of IT has
enabled better quantification and management of credit risks.
Business Complexity
Past
Simple products
Low volumes
Focus on high value
Corporate business
Present
Retail push
Complex products
Multiple channels
Challenge of increasing
volume
Future
Continued retail focus
Transaction intensive
Need to push down per
transaction costs
Changing business needs paved the way for new technology and channel migration. The key areas of
application of technology can be classified into two as mentioned below:
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I.
II.
Transaction processing
Easier
Faster
Accurate
Cheaper
Focused factory concept for processes link account opening and cheque clearing
Economies of scale
Reduced load on branches
Improved turnaround times
Automated check processing
Cost cutting
Private
Banking
Young
Stars/Student
Banking Services
Credit/Debit
cards
Loans-Home
Car, etc
Deposits
Saving Account
(Quantum
Optima)
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Mobile
Banking
Internet
Banking
ATM
Branch
Banking
Phone
Banking
Table 1. Channels
Internet Banking
Services
Automatic Teller
Machine
Routine Banking transactions like balance enquiry, cash withdrawal, funds transfer and
cheque book request
Features like airtime recharge for pre-paid mobile phone, donations to temples/trusts
ATMs for visually challenged customers
Mobile Banking
SMS alert for salary credit, account getting credited, cheque bounce
SMS alert for credit card due date reminders, approaching credit limit reminders
Call Centre
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ATM
2000
Call Centre Internet
15%
5%
Branch
ATM
78%
46%
2%
Functions of channels
Functions that channels must perform can be as:
Sales
Transaction
Activities under Sales are:
i.
ii.
Pre sale
Account opening
Post sale
Cross sell
Relationship depending
Case payment/withdrawal
Request for Demand Drafts/Pay Order
Account opening/closure/transfer
Investment Consultancy
Balance Enquiry/last few transactions
Statement of account
Cheque Book Request
Cheque Status Enquiry
D-MAT Queries
Standing Instructions
Fixed deposit renewal/closure/opening
Address Change
Stop payment
Cheque deposit
Funds transfer
Balance/internet Certificates
others
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Call
Centre
12%
2004
Internet
12%
Branch
30%
Types of Channels
Predominantly Human
(Branch channel)
Predominant Technology
(ATM channel, Internet Channel, Phone
channel)
Branch Channel
Strengths
Personal touch
Personalized information
Facilitates complex banking activities
Customers retention
Deepens relationships
Brand visibility
Inculcates customer loyalty
Perceived as a trusted advisor
Opportunities
Financial advisor
Facilitates channel migration
Effective cross selling
Weaknesses
Requires high manpower
High infrastructure cost
Restricted accessibility
Limited accessibility
Time consuming
Threats
Increasing cost of transactions in the branch
High footfall vis--vis employee ratio
ATM Channel
Strengths
Cost effective
Better reach
Brand visibility
Round-the clock availability
Quicker transactions
Networked to centralized database enabling
Adds a fillip to banks customer base
Opportunities
Platform for cross selling
Value-added services like donations and
mobile
phone prepaid recharging
Shared ATMs to reduce cost and maximize
reach
Mobile ATMs to reach remotely located
customers
Weakness
Cost of set-up
Limited cash dispensing ability
Lack of human interface
Waiting time is not eliminated completely
Threats
Security concerns
Lower brand loyalty
Communication gap
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Internet Channel
Strengths
Weakness
Opportunities
Threats
Security concerns
Lack of strong trust environment
Perceived notion that internet is not a safe
place to conduct financial transactions
Not accessible to masses
Phone Channel
Strengths
Weaknesses
Cost of set up
Limited transactions
Communication barrier
High AHT ( Actual Handling Time)
Opportunities
Campaign & cross selling opportunities
Threats
Customer perception of incurring cost while
transacting
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National
Orientation
Singapore
Japan
South Korea
Malaysia and Taiwan
Hongkong
Indonesia
China
India
Socio-economic
Infrastructure
Taiwan
Singapore
Japan
South Korea
Hongkong
Malaysia
Indonesia
China
Technological
Infrastructure
Japan
South Korea
Singapore
China
Taiwan
Malaysia
India
Indonesia
Productive
Capacity
Japan
Singapore
Malaysia
South Korea
Taiwan
Hongkong
India
China &Indonesia
The Government also came out with a policy on science and technology spelling out its aim and thrust
areas. The salient features of the 2003 policy are mentioned below:
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For instance, with reference to 1950, the gains in productivity are nearly 3.3 times in food grains, 1.6
times in fruits, 2.1 times in vegetables, 5.6 times in fish, 1.8 times in milk 6.4 times in eggs.
It is also revealing to note that modern technologies have contributed to saving of the area, other
resources and in increasing revenues and exports. For instance, modern varieties of rice saved nearly 39 million
hectares and the varieties saved about 37 million hectares of area.
ITC uses information technology for:
Delivering real time information and customize knowledge to improve farmers decision-making
ability to align farm output to market demands and secure quality ,productivity and improved price
discovery.
Aggregating demand in the nature of a virtual producers cooperative to access high quality farm inputs
and knowledge at the lowest cost.
Setting a direct marketing channel virtually linked to the mandi system for the system of price
discovery, yet eliminating wasteful intermediation, multiple handling and thus reducing transaction
costs and making logistic efficient and cost effective.
Thus modern technology is not only bringing wealth to India and its rural parts
but is also generating various business opportunities for the Indian corporate sector.
To ensure that the message of science (and technology) reaches every citizen of India.
To ensure food, agriculture, nutritional, environmental, waste, health and energy security of the people
on a sustainable basis.
To mount a direct and sustained effort on the alleviation of poverty, enhancing livelihood security,
removal of hunger and malnutrition, reduction of drudgery and regional imbalances and generation of
employment.
To vigorously faster scientific research in universities and other institutions.
To promote the empowerment of women in all science and technology activities and ensure their full and
equal participation.
To provide necessary autonomy and freedom of functioning for all academic and R&D institutions.
To use the full potential of modern science and technology to protect, preserve, evaluate, update, add
value to, and utilize the extensive knowledge over the long civilization experience of India.
To accomplish national strategic and security-related objectives, by using the latest advances in science
and technology.
To encourage research and innovation in areas of relevance for the economy and society, particularly by
promoting close and productive interaction between private and public institutions in science and
technology.
To substantially strengthen enabling mechanisms that relate to technology development, evaluation,
absorption and upgradation from concept to utilization.
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To establish an Intellectual Property Rights (IPR) regime this maximizes the incentives for the
generation and protection of intellectual property by all types of inventors.
To ensure that all efforts are made to have high speed access to information at affordable cost.
To encourage research and application for forecasting, prevention and mitigation of natural hazards,
particularly, foods, cyclones, earthquakes, drought and landslides.
To promote international science and technology cooperation towards achieving the goals of national
development and security, and make it a key element of Indias international relations.
To integrate scientific knowledge with insights from other disciplines.
Institutional Arrangement:
1. Apex Level Organizations
Department of Scientific and Industrial Research (DSIR)
National Research Development Corporation (NRDC)
Council of Scientific and Industrial Research (CSIR)
Department of Science and Technology (DTS)
Department of Biotechnology (DBT)
Department of Space (DOS)
Department of Atomic Energy (DAE)
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3. Incentives
Income Tax relief on R&D expenditure
Weighted tax deduction for sponsored research
Accelerated depreciation allowance
Five year tax holiday to commercial R&D companies
Customs duty exemption on good imported for R&D project
Excise duty waiver on patented products
Excise duty waiver on non-commercial research institutions
Price control exemption on domestic R&D based bulk drugs
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Some of the remarkable achievements in the field of science and technology over the last
62 years of independence:
Indias own satellites have soared into space on rockets developed by Indian scientist
indigenously.
Indias super computer confronts the most complex strategic and civilian challenges. Biotechnologists
have produced the first leprosy vaccine.
Alternative energy technologies are transforming life in isolated villages.
When India initiated a space research program, the world scoffed, and critics declared that such a
research had no relevance in a poor and underdeveloped country.
India today is, is one of the only seven nations in the world with its own satellite launch capabilities.
Development of remote sensing and communication satellites that encompasses
1. Mastery of solid propulsion fuels
2. Development of cryogenic engines
3. Development of closed loop control and guidance system.
4. Development of step on staging satellite launches technologies.
Satellite monitoring of earth- atmosphere-ocean systems has revolutionized the forecasting and
management of natural disasters. High speed computers run sophisticated mathematical models to
forecast extreme weather, saving thousands of lives every year.
India has installed capacity of 1840 MW of atomic power, and possess the potential for setting up a
thorium based generating capacity of 200,0000 GW of electric energy.
Indian atomic scientists have successfully mastered the entire atomic fuel cycle and production of atomic
materials.
India has developed three indigenous diagnostic kits for detection of AIDS.
A sophisticated leposome delivery system for drugs to cure fungal infections.
Diagnostic kit for tuberculosis, Hepatitis-B, A&C, kalabazar, and Japanese Encephalitis in advanced
state of development.
A wide range for bio-fertilizers and biological control agents to supplement and reduce the use of
harmful chemical pesticides and fertilizers. Development in drugs, therapeutics, medicine and the wide
field of health services have resulted in the doubling of life expectancy since independence.
Dreaded diseases such as smallpox have been eradicated completely.
Defense research organization has excelled in the development of missiles, and India is more secure
because of the wide range of tactical missiles now available to the defense forces.
1. Prithvi: surface-to-air tactical battle field missile.
2. Akash: medium range surface-to-air missile.
3. Trishul: short range quick reaction surface-to-air missile.
4. Nag: a third generation anti-tank missile, rated among the best in the world.
5. Agni: re-entry missile with capabilities to perform as an intermediate range ballistic system.
A sophisticated low-level warning radar, Indra, has been developed.
Multi-barrel rocket system Pinaka has been developed.
India has its own battle tanks: Arjun and Ajeya.
India has, to its credit, the development of fourteen new drugs, many of which are now being exported.
Page 26
Compound rate of growth of IT industry has been: 55% over the last five years. India commands over
16% of world market for customized software services.
State of Technolog
Technology
y in Gujarat
Awarded for Best e-Governance,
Governance, Gujarat is a frontline State in the implementation of e-governance
e
policies & projects and setting up of key infrastructure for E Governance.
Gujarat Government focuses on growth and development of new & emergin
emerging
g technology areas. It has
been increasingly using the ICT (Information and Communication Technologies) to offer citizen based service
as per convenient location with an initiative to improve the reach, make services more transparent and reduce
response time
me with reducing costs. The Government is also pro active in its Initiatives and ranks first state in the
country to have made e-Governance
Governance functional in all its Municipalitie
Municipalitiess and Municipal Corporations.
Gujarat Government promotes information sharing w
with
ith the citizen by way of display and disclosure of
information of large number of functional departments and their subordinate organizations through their
respective websites which act as Information tools in tthe State.
State Govt. has adopted Innovati
Innovative,
ve, constructive and result oriented progressive policies for the
promotion of e-governance
governance in the State. Through the Nodal Agency, the Governments Science and Technology
Department positions Gujarat, as a Key State in the Knowledge Economy sector and acts
act as a medium to make
Government-Citizen
Citizen Interface more effectiv
effective, transparent and efficient.
Gujarat is an aspiring leader with ee-readiness
readiness Initiatives with the IT Policy 2006-2011.
2006
Gujarat has been
position at L2 Stage in Information Communication Techn
Technologies
ologies (ICTs) which is categorized based on
Environment, Readiness and Usage Applications. It stands as an aspiring leader ranking to 31st Top Hotspots in
the World and minimizing to reach the goal
Through the Bisag Satellite, the CM addresses the Distanc
Distancee Teachers' Training Programme for the
Elementary school teachers through Satellite Technology. Over 11, 94,000 Teachers over 4000 receiving Centres
participated in the Interactive Training Program. Teachers get to watch and listen to eminent scholars as well
we as
academicians as well as interact with them
The following are projects undertaken in Gujarat:
GSWAN Performance:
Connecting 7 Districts on 8 Mbps, 18 Districts on 4 Mbps and 1 District with 2 Mbps to State Centre at
Gandhinagar using leased circuits provided by BSNL, Reliance and Tata Tele Services.
Connecting 225 Talukas to 26 District HQ on 2 Mbps leased circuits.
Interconnecting more than 3600 District and Taluka level GoG offices
Average 70 departmental offices at District locations and 5 offices at Taluka Locations have been
connected to GSWAN
Facilitates uninterrupted and easy IP based Video
Video-conferencing
conferencing between various GoG offices.
Over 20015 E-mail
mail IDs created for Government officers all over the state.
Over 255 Websites are hosted for various departments.
14 Mbps Internet Bandwidth terminated at GSWAN State Centre among 5000 Internet Users.
Facilitates uninterrupted and easy IP based video
video-conferencing
conferencing between various GoG offices.
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VAT
(Value Added Tax)
The Project implemented by Commissionerate of Commercial TAX, GoG, was initiated to ensure prompt
capturing of data at its origination in digitized form so that the VAT administration could be more informed
and controlled with a view to simplify Administrative procedures. It provides Efficient, Effective, Economical
and Transparent Tax Administration. The project was initiated to ensure prompt capturing of data at its
origination in digitized form so that the VAT administration could be more informed and controlled. As the
VAT implementation process involving VAT returns, scrutiny, assessment and refunds get streamlined, it was
envisaged that the data also gets digitized to help the administration have an in-depth analysis of information
for better decision support with respect to strategizing the tax administration processes. Gujarat VAT
Information System (VATIS) project is logically divided into various business services, shared services, MIS
and House keeping.
E Procurement
SICN is a network owned by Government of Gujarat for their Voice, Data & Video Communication needs.
This is Asias biggest network of Govt. of its kind. This Network is spread in the periphery of 12 kms.
Connecting almost all the Govt. Boards and Corporations offices in capital of Gujarat Gandhinagar.
SICN
(Sachivalya Integrated Communication Network)
SICN is a network owned by Government of Gujarat for their Voice, Data & Video Communication needs.
This is Asias biggest network of Govt. of its kind. This Network is spread in the periphery of 12 kms.
Connecting almost all the Govt. Boards and Corporations offices in capital of Gujarat Gandhinagar.
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Home Department
The portal of Home Department www.home.gujarat.gov.in covers total 70 individual websites, including
that of the Home Department, all its HODs like Anti Corruption Bureau, Prohibition & Excise, IG Prisons etc.
and Gujarat Police (DGP, Commissionerate, DSPs, Armed Unit, Training, and Human Rights etc.), Port &
Transport Department, Commissioner Transport and all RTOs & ARTOs. It is completely Dynamic (Unicode
based) Web-Portal & Websites based on CMS (Content Management System) and having Online Updating
Facility, User Interaction to the various Applications and Database, Search Engine enabled features, Online
Complain and User Feedback facility.
The Portal is set with Objectives to bring the government department closer to the citizens and make the work
and procedures of the Department speedy and transparent. It makes all the HoDs far more approachable and
accessible; provide in-depth information about each office, going much beyond the requirements under the
Right to Information Act. It also provides public interface to the applications like whom to contact (contact
matrix), online complain, report & find missing/ stolen persons/ vehicle/ things, Track FIR status, find police
station, Getting Tenant / Servant Registration etc.
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TRANSFER OF TECHNOLOGY
Technology transfer is the process by which commercial technology is disseminated. This will take the form
of a technology transfer transaction, which may or may not be a legally binding contract, but which will involve
the communication, by the transferor, of the relevant knowledge to the recipient. Among the types of transfer
transactions that may be used, the draft TOT Code by the United Nations Conference on Trade and
Development (UNCTAD) has listed the following:
a) The assignment, sale and licensing of all forms of industrial property, except for trademarks, service
marks and trade names when they are not part of transfer of technology transactions;
b) The provision of know-how and technical expertise in the form of feasibility studies, plans, diagrams,
models, instructions, guides, formulae, basic or detailed engineering designs, specifications and
equipment for training, services involving technical advisory and managerial personnel, and personnel
training;
c) The provision for technological knowledge necessary for the installation, operation and functioning of
plant and equipment, and turnkey projects;
d) The provision for technological knowledge necessary to acquire, install and use machinery, equipment,
intermediate goods and/or raw material which have been acquired by purchase, lease or other means;
e) The provision of technological content of industrial and technical cooperation arrangements.
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not only small scale project but also in number of large scale industries where the nature of technology is
not particularly complex.
3. Licensing Agreements:
Licensing agreements, under which the licensor enters into an agreement with a licensee in
another country to use the technical expertise of the former, is an important means for the transfer of
technology. Licensing agreements are usually enter into when foreign direct investment is not possible or
desirable.
4. Turnkey Contract:
Transfer of complex technology often takes place through turnkey project contracts, which
include the supply of such service as design, creation, commissioning or supervision of a system or a
facility to the client, apart from the supply of goods.
Many times, a combination of two or more of the above mentioned method is used. Turnkey contracts,
obviously, are the most comprehensive of such combinations.
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may determine the share of the inventor(s) and other persons from such actual earnings. Such share(s)
shall be limited to 1/3rd of the actual earnings.
3. Inventions by Institutions and Industrial concerns: IPR generated through joint research by
institution(s) and industrial concern(s) through joint effort scan be owned jointly by them as may be
mutually agreed to by them through a written agreement. The Institution and Industrial concern may
transfer the technology to a third party for commercialisation on exclusive/ non-exclusive basis. The
third party, exclusively licensed to market the innovation in India, must manufacture the product in
India. The joint owners may share the benefits and earnings arising out of commercial exploitation of
the IPR. The institution may determine the share of the inventor(s) and other persons from such actual
earnings. Such share(s) shall not exceed 1/3rd of the actual earnings
4. Patent Facilitating Fund: The Institution shall set apart not less than 25% of such earnings for
crediting into a fund called Patent Facilitating Fund. This Fund shall be utilised by the institution for
updating the innovation, for filing new patent applications, protecting their rights against infringements,
for creating awareness and building competency on IPR and related issues.
5. Information: The institutions shall submit information relating to the details of the patent obtained the
benefits and earnings arising out of IPR and the turnover of the products periodically to the Department /
Ministry which has provided funds.
6. Royalty-free licence: The Government shall have a royalty-free licence for the use of the Intellectual
Property for the purposes of the Government of India.
7.
Review: These instructions shall be reviewed by the Central Government after a period of five years.
8.
The instructions are issued with the concurrence of the Ministry of Finance, Department of Expenditure
vide heir OM No 33(5) PF-II 99, dated 22nd February, 2000.
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