Determining
Stages of e-Government
AS a mid-year treat to all our
readers, I will devote today's column to describing
the basis for which stages of e-government development
are measured.
Most of you may have already
noticed that benefits derived from ICT initiatives
of BOC and PPA are often evaluated in terms of
how they transform both government agencies into
a certain level of technology sophistication and
usefulness.
The two measurement models I
will describe below are those of UN-ASPA and Gartner
Research.
Please take note that both BOC
and PPA aim to be at Stage 4 (Transactional) under
the UN-ASPA model.
UN/ASPA Study: 5 Stages of Development
Emerging: A country commits to
becoming an e-government player. A formal but
limited web presence is established through a
few independent government websites which provide
users with static organizational or political
information. Sites may include contact information
(i.e. telephone numbers and addresses of public
officials). In rare cases, special features like
FAQs may be found.
Enhanced: A country's online
presence begins to expand as its number of official
websites increase. Content will consist more of
dynamic and specialized information that is frequently
updated; sites will link to other official pages.
Government publications, legislation, newsletters
are available. Search features, and e-mail addresses
are available. A site for the national or ruling
government may also be present that links the
user to ministries or departments.
Interactive: A country's presence
on the Internet expands dramatically with access
to a wide range of government institutions and
services. More sophisticated level of formal interactions
between citizens and service providers is present
like e-mail and post comments areas. The capacity
to search specialized databases and download forms
and applications or submit them is also available.
The content and information is regularly updated.
Transactional: Complete and secure
transactions like obtaining visas, passports,
birth and death records, licenses, permits where
a user can actually pay online for services such
as parking fines, automobile registration fees,
utility bills and taxes. Digital signatures may
be recognized in an effort to facilitate procurement
and doing business with the government. Secure
sites and user passwords are also present.
Fully integrated or seamless:
Capacity to instantly access any service in a
"unified package". Ministerial/departmental/agency
lines of demarcation are removed in cyberspace.
Services will be clustered along common needs.
Gartner Research: Four Phases
of E-Government Model
Presence: This phase of e-government development
is characterized by the land rush to simply have
a cyberspace placeholder on the Internet. The
primary goal is to post information such as agency
mission, addresses, opening hours and possibly
some official documents of relevance to the public.
Interaction: This phase is characterized by Web
sites that provide basic search capabilities,
host forms to download, and linkages with other
relevant sites, as well as e-mail addresses of
offices or officials. This stage enables the public
to access critical information online and receive
forms that may have previously required a visit
to a government office.
Transaction: This phase is characterized
by allowing constituents to conduct and complete
entire tasks online. The focus of this stage is
to build self-service applications for the public
to access online, but also to use the Web as a
complement to other delivery channels.
Typical services that are migrated
to this stage of development include tax filing
and payment, driver's license renewal, and payment
of fines, permits and licenses. Additionally,
many governments put requests for proposals and
bidding regulations online as a precursor to e-procurement.
This is the current stage for several agencies
and the most immediate target for many e-government
initiatives worldwide. It not only highlights
the benefits of 24x7 availability but also provides
opportunities to develop cross-agency common,
shared services.
Transformation: This phase is
the long-term goal of almost all national and
local e-government initiatives. It is characterized
by redefining the delivery of government services
by providing a single point of contact to constituents
that makes government organization totally transparent
to citizens.
This phase relies on robust customer
relationship management tools and new methods
of alternative service delivery capabilities that
reshape relationships between citizens, businesses
and governments. It also enhances the ability
of constituents to participate more directly in
government activities (i.e. "e-referendums"
and e-voting"). Examples of transformation
include highly tailored Web sites, or "virtual
agencies," where government information is
pushed to citizens, and where they can pay local
property taxes, renew state driver's licenses
and apply for federal passports all in one place,
with seamless interfaces back to the respective
agencies involved in the transactions.
This phase will also include
the development of state-of-the-art intranets
that can link government employees who work in
different agencies. Governmental transfor-mation
will also include the design of extranets that
allow the seamless flow of information and collaborative
decision-making among federal, state and local
government agencies; private and not-for-profit
sector partners; and the public.
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Simple Guide in Implementing
Internet Portals
I recently had the opportunity
to meet a number of young IT practitioners connected
with several cargo transport and warehousing firms
who face a common challenge: how to set up web
- based portals for their respective companies.
I found it interesting that among
the model sites they have looked at are American
President Lines' HomePort, ICTSI's MICT iBox,
Asian Terminals Incorporated Webtrack and Aboitiz
Transport Systems 2GO portals.
I said there is no easily available
and tested guide on how to design and implement
portals but I promised to refer them to information
reference sites from where they can learn more
about portals.
As a good starting point to understand
how to implement portals, I am reproducing hereunder
some excerpts from information found in www.portalscommunity.com
.
Topics important to planning
and implementing a successful Portal are described
below:
Strategy - Investigating, implementing,
measuring, and maintaining your Portal solution
should all be factored into your company's overall
business strategy. Properly understanding the
corporate strategy can allow you to place the
correct functional components in the appropriate
phases of your implementation to allow your enterprise
to derive as much business value as these phases
are delivered.
Trends - Portals have emerged
in many markets as strong component of any solution
delivery. Understanding the new and noteworthy
directions affecting the portal market are an
important step of defining the solution for corporate
strategy for deployment for any project manager
or technologist working with or planning for portal
solutions.
Planning and Investigating - Just getting started?
The first stage involves research, business case
writing, metrics setting, etc. This section contains
articles and research papers regarding vendor's
solutions and the methodology.
Business Case - The business case consists mapping
business drivers to user requirements, along with
a financial impact if the requirement can be met.
The financial impact can come in multiple ways,
but must be related to hard, quantifiable results.
Feasibility Study - In the case of portals, it
is highly beneficial to embark upon a feasibility
study.
A study targets specific objectives:
1) accessing and prioritizing business requirements,
2) determining the feasibility of the fundamental
concept, 3) identifying and weighing the issues
surrounding the implementations, 4) identifying
critical success factors, and 5) determining the
likely cost of meeting the business requirements
based on the priority scheme. Feasibility for
an enterprise wide implementation can typically
be demonstrated via a prototype or pilot of the
proposed solution.
Critical Success Factors - Enterprise
- wide portal implementations are giving rise
to a new set of Critical Success Factors (CSF's).
Most implementations have standard success factors
such as the following: well - understood requirements,
top management support, business area representation
and a culture that supports collaboration and
teamwork. Additionally, there are more refined
success factors specific to Portals implementations
that involve striking an important balance between
items such as centralization and decentralization;
ease of use and security, and pure technology
vs. pure business focus.
Return on Investment (ROI) - A calculation of
how much money will be saved or earned as the
result of an investment in a Portal Solution.
ROI Calculations should be used in developing
a business case for a given proposal. Be sure
to factor in investments of both time and capital.
Typically in Portal implementations, streamlining
business processes commonly returns ROI, however
for each implementation of a portal the detailed
ROI can be calculated.
Information Requirements - Understanding
the business information usage is the first major
step involved prior to selecting the Portal technology.
Conducting a business information study to understand
how information is used within an organization,
the objectives of such are to understand the following:
1) who uses the information, 2) how the information
is used, and 3) how it flows into, within and
out of each of the business areas.
Business Process/Workflow - The general understanding
of the business process of all consumers of the
portal (individual, department, division or entire
company) can be leveraged within the portal solution
to provide additional business value via timesavings
or general cost reduction.
Enterprise Architecture - This architecture includes
the plans, methods, and tools aimed at providing
a single point of access to information and applications
from across an enterprise. Enterprise architecture
defines the technological blueprint for how all
the technical components of the enterprise fit
together.
Implementation and Deployment - Now that you have
defined your portal strategy, reviewed your business
requirements and validated the ROI for your solution,
this is where this information helps you plan
for a successful implementation and deployment.
Portal implementations are unique enough in the
speed to market components and others to understand
the unique issues for consideration when developing
your implementation and deployment plans.
To all those young IT practitioners,
my most important recommendation is - make a thorough
study of your company's business requirements
and expectations on why it wants to put up its
portal. Knowing about the hardware and software
technologies constitute the easy part. The challenge
lies in how to make your company's portal useful
and beneficial for customers, trading partners
and even company employees.
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Reality Check: Are Port
Users Now More Ready to Pay for Electronic Transactions?
(Continued from 23 May
issue)
In Part 1 of this two-part article,
we briefly reviewed the cost impact (fees, charges,
and other expenses incurred by port users) when
utilizing electronic and other ICT services directly
related to the movement and transport of cargo.
The activities enumerated range from SMS-based
cargo track & trace, web-based electronic payment
of port charges using bank e-payment facilities,
submission of electronic inward manifest, electronic
filing of import declarations, and electronic
submission of port documentation required for
vessel arrival and berthing.
Internet-Based vs EDI-Based Electronic Transactions
From a technology investment perspective, among
the primary reasons for implementing electronic
commerce on the Internet platform is its very
low operating cost and ease of use.
For one thing, the web browser
software is free. Internet Explorer is bundled
with Windows operating system installed on every
PC. In addition, an Internet connection through
any service provider has multiple usage: electronic
mail, voice-over IP, educational research, chatting,
personal communications, etc. Hence, the Internet
subscription fee is very much worth several times
compared to its cost. If software interfaces are
required in order for a business application to
process data transmitted through the Internet,
the required software programming skill-sets and
resources abound in large numbers.
In contrast, an EDI-based system almost always
has high costs of operations and maintenance.
Available expertise on EDI transaction sets (UN/EDIFACT,
ANSI X12, etc) are very limited - therefore expensive
to recruit and retain. EDI networks and service
providers charge transaction fees on a per kilobyte
basis (translation: the more characters in an
electronic message or file, the higher is the
transaction fee). Hence, EDI message data structures
are cryptic. The ultimate result is that
specialist skills - which are expensive - are
necessary to operate and maintain EDI-based systems.
Pricing Models for e-Transactions & Services There
are generally two main types of pricing models
involved.
One is the fixed price model. Electronic services
that require annual or monthly subscription fees
belong to this category. Whether or not the registered
user avails of the service, the cost involved
remains the same. Some service providers have
actually become creative in their offerings based
on this cost model. A common example is unlimited
Internet connection for a fixed fee.
The other model is categorized as dynamic pricing.
Most transaction-based cost models belong to this.
The way it works is that when electronic transactions
reach a pre-determined threshold (example: 500
purchase orders or 500 B/Ls a month), the cost
per transaction is reduced. A variation also happens
by way of the pre-determined threshold quantified
in terms of peso value (i.e., total transaction
value of P5,000 a month).
Downside of Paying Fees For Electronic Transactions
While electronic transactions in most business
sectors are creating real business value in terms
of user convenience, business process
simplification and reduced duration of transaction
processing time, we already see their downside
in some areas.
Examples are growing public complaints on ATM
fees charged when a person transacts through an
ATM machine owned by a bank where he does not
have an account, as well as growing clamor for
banks to reduce transaction costs for OFW fund
remittances.
A bank which offers electronic payment of port
and cargo charges is said to be insisting on a
very high daily maintaining balance for accounts
to be used for this type of electronic payment
transaction. Moreover, a number of complaints
are being made by some port users about the time
delay it takes between actual payment of duties
and taxes at a bank branch and the time the BOC
ACOS system receives electronic payment advise.
The Reality For Port Users Now: Be More Ready
To Pay For Electronic Transactions After the Electronic
Commerce Law was enacted, I sensed that many of
those who made an advocacy for promoting e-Commerce
somehow failed to provide a more balanced focus
by way of making everyone appreciate the fact
that there will be costs involved on the part
of the transacting public. The most important
point to have been articulated upon is that the
tangible benefits of e-commerce (1) far outweigh
any cost the public has to pay and (2) that such
costs will be kept at minimal levels.
Right now, the impetus for more port user transactions
to be implemented electronically are with us.
The Automated Export Declaration System and RosettaNet
pioneered by the semiconductor industry is proving
itself to be a big success in terms of creating
efficient and secure trade facilitation. Thus,
semiconductor companies and participating exporters
and freight forwarders are more than willing to
pay for these electronic transactions.
I will not be surprised if the new customs computerization
project includes an investment recovery model
for implementing a web-based platform.
Single, common gateway Likewise, there have been
indications since last year that a new electronic
payment facility is being developed that will
enable electronic payment of duties and taxes
as well another government fees through a single,
common gateway.
The ultimate challenge here is
to undertake a serious effort to obtain buy-in
and acceptance on the part of port users by way
of demonstrating tangible benefits insofar as,
among others, substantially reducing vessel and
cargo stay-time within the port and eliminating
inefficiencies endemic in a manual document processing
environment.
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A Reality
Check: Are Port Users Now More Ready To Pay For
Electronic Transactions?
– Part 1
Before I wrote today’s
column, I consulted my editor and informed her
that my topic actually constitutes a reality check
and might elicit active reaction from some PortCalls
readers. We are now almost halfway through 2005
and I believe it’s time to briefly review
what’s happening insofar as the information
& communication technology landscape is concerned,
particularly on how available electronic services,
ongoing initiatives, & e-commerce trends impact
port users in terms of costs.
The cost impact I will focus
on refers to fees, charges, and other expenses
incurred by port users when utilizing electronic
and other ICT services directly related to the
movement & transport of cargo.
Let us first identify the ways
through which port users currently incur these
costs, both knowingly or unknowingly.
First Reminder: “Track & Trace”
On SMS Text Messaging Is Never Free
Several years ago text messaging
started to catch fire – so to speak –
as the newest platform for cargo track & trace
among transport & logistics service providers.
We all know of course how much Globe & Smart
charge each time you send a text message to inquire
on the latest whereabouts of your cargo shipment.
In the case of some logistics companies, the client
automatically receives a text message on cargo
status without sending an SMS inquiry. In a case
like this, the cost for such automated event notification
is normally incorporated in the total service
fee paid by the client as part of shipment processing
& delivery.
Bank Charges for Web-Based Electronic
Payment of Port Charges
A number of banks currently provide
electronic facilities for the payment of port
charges (arrastre, stevedoring, storage, etc)
in MICT and, to a limited extent, in South Harbor
(only for vessel charges through Union Bank).
These are Union Bank, UCPB, Equitable PCI and
East West Bank. When clients use these Internet-based
facilities and electronically pay cargo charges
through deposit accounts in said banks, a transaction
fee is normally deducted from client’s account.
The amount involved varies from one bank to another.
Electronic Inward Foreign Manifest
Submission to Customs
Shipping line manifests and consolidation
manifests are submitted to BOC through the facilities
of ATI and ICTSI. Both port operators do not charge
for these services since November 1994 when full
compliance to electronic submission was first
mandated by BOC. Significantly, customs memorandum
order 45-94 and 11-99 contain a provision wherein
port operators may actually charge for the use
of their facilities for electronic manifest submission.
Modes of submission are electronic
mail and data diskette. It is interesting to note
that main vessel manifests are submitted by vessel
operators separately from rider manifests of vessel
co-loaders as well as consolidation manifest Thus,
it is not surprising to encounter a situation
wherein rider manifest is submitted ahead of the
main vessel manifest. The worst scenario is when
consolidation manifest is submitted ahead of both
main and rider manifests. I describe this as worst
because BOC ACOS system validation will not allow
uploading of the former if the latter are not
yet found in its manifest database.
As I said above, electronic manifest
submission is currently free of charge. However,
I believe that the modes of submission using electronic
email, data diskette and manual data encoding
have long outlived their usefulness in terms of
technology and are now putting a heavy strain
on the resources of everyone concerned –
port operators, shipping lines/agents, NVOCCs,
freight forwarders, consolidators.
The costs incurred by port users
are in terms of process inefficiencies resulting
from repetitive manual download/upload, delays
in submission due to defective diskettes, and
clerical costs of manifest data encoding.
In the case of import shipments
handled by Harbour Centre Port Terminal Incorporated,
shipping line inward manifest have to be submitted
in electronic form (data diskette) either directly
to office of Port of Manila Deputy Collector for
Operations or coursed through HCPTI in data diskette.
So far, there is only one service
provider which provides an automated facility
for consolidation manifest submission. Cargo Data
Exchange Center which started operations in the
mid-1990s for electronic submission of airfreight
consolidator/freight forwarder manifest submission
to BOC NAIA. Some CDEC clients at NAIA presently
use the same electronic facility in submitting
seafreight manifest to BOC since CDEC has network
connectivity with both ATI and ICTSI. CDEC charges
a transaction fee per house B/L for airfreight/seafreight
manifest submission.
Electronic Filing of Import Declaration
to BOC
Only 2 service providers –
CDEC and Intercommerce Network Services (INS)
– are accredited by BOC for the electronic
filing of import declaration. It is interesting
to note that very much less than 10% of electronic
import declarations in both South Harbor and MICT
are handled by CDEC and INS. The main bulk is
processed through the service bureau offering
of PCCI Data Encoding Center.
CDEC and INS charge transaction
fees per import declaration, Since these transactions
actually go through an electronic gateway service
(called EDI Gateway) before being forwarded to
BOC ACOS system, CDEC and INS also pay service
fees to EDI Gateway.
Electronic Port Documentation
Submission to PPA
The new PPA computerized system
features an e-Port facility wherein electronic
notice of vessel arrival, application for berth/anchorage,
and domestic cargo manifest are submitted in order
to be processed by its port management system.
Domestic shipping lines which will use e-Port
will later incur a cost in terms of annual fee
for digital signature certification.
(Part 2 to be continued on 06
June 2005 issue)
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