Next Generation e-Government:

The Cloud and Beyond

Oleg Petrov, Program Coordinator, e-Development Thematic Group, Global ICT Department, The World Bank

E-Government Summit

Hong Kong, 8 October 2010

• The E-Gov Story: from Computerization to e-Transformation

• Key Aspects of e-Gov 2.0• Latest Technology Trends Shaping the Future• Focus on G-Cloud• World Bank’s Support for e-Government

Outline

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E-Government Vision: Leveraging ICT to Transform Service Delivery

India: E-services reduced bribe-payments

Ghana: Customs clearances went from 2 -3 weeks to 1-2 days with a 50% increase in revenue after applying IT systems.

Korea: Investment of $80 million in e-procurement generated $2.7 billion in annual savings

Source: Survey of e-government projects in India, IC4D 2009

Some good news:

But: ICT investments are also risky

• Guardian headline: “£2bn cost of government’s IT blunders”

• The Economist : “Although hopes have been high and the investment has been huge, so far the results have mostly been disappointing…”

• Gartner Research :“On an average, $8 out of every $10 spent in IT is “dead money” – not contributing directly to business change and growth”.

• Risks are high, though a lot learnt since the early days

Partial Failures 50%

Total Failures 35%

Successes 15%

Source: Richard Heeks. 2003. “Most e-Government-for-Development Projects Fail: How Can Risks be Reduced?”. IDPM i-Government Working Paper no. 14

e-Government initiatives in Developing Countries

Key lesson: Smarter IT spending needed

Old Model: e-Government 1.0 High Costs – Limited Results

E-Gov 1.0 = Informatization: Computerizing the “Brick and Mortar”

(industrial age) government

– Technology/supply/vendor-driven– Ignoring or reinforcing organizational silos– Limited back-end integration and sharing of

data, infrastructure and services– Limited process re-engineering that does not

leverage the full power of ICT– Limited change management – Limited participation of the citizens and private

sector

• Project to develop Budget and Public Expenditure Management System in a West African country

• Funded by the World Bank, implemented by the Government -- US$30 million

• Incorporated 32 Ministries in 10 Regions and across 140 Districts

• However, not integrated with the rest of the government and now being scrapped

• A new IFMIS system is now being implemented at a cost of US$54 million.

6

Recent Example from Africa: Silos Don’t Work

We can implement post-facto interoperability, but we get a “Spaghetti of interdependencies” among Government applications. Difficult to maintain.

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Move to a situation in which technology allows you to

share services and infrastructure

Shared e-Gov Services:

Think Modular

Sharing Services and Infrastructure

Service-Oriented Architecture

Services: Before Services: After

New Model: e-Government 2.0Maximizing Transformational Impact of ICT

E-Gov 2.0 = eTransformation – next-generation model of ICT-enabled govt transformation into open, participatory, citizen-driven and highly integrated government:– Breaking down organizational silos, creating horizontal, whole-

of-govt structures, standards, communities and practice groups– Comprehensive back-end integration and sharing corporate

services and systems– Comprehensive process re-engineering that leverages fully the

power of ICT (rethinking government in the information age)– Comprehensive change management (“the human factor”)– Active participation (co-creation) of the citizens in policy and

decision-making and service design and delivery (Open Government paradigm)

– Government letting go and empowering innovation and public-private partnerships (Government as a Platform paradigm)

Key Aspects of e-Gov 2.0

• Citizen-centric and driven approach (focus on the demand side, using Web 2.0, open data): USA, UK, Australia, New Zealand, Canada

• Sharing infrastructure and services, including via Cloud Computing: UK, US, Singapore, Australia, Canada, Korea, Japan, Denmark, New Zealand

• Whole-of-government perspective: Singapore, US, UK, Australia, Canada• Maximum openness, transparency, and accountability: US, UK, Canada• Public-private partnerships: US, India, Ghana, Czech Republic, Estonia• e-Inclusion-for-all & Multi-channel delivery of services, especially via mobile

phones, also call centers, single window centers and web portals: Canada, Brazil, Australia, Korea, UK, Singapore, India

• Change management and e-leadership from the very top of Government with the growing role of CIOs as key enablers and empowering civil servants to act as change agents: US, UK, Australia, Singapore, Canada, Estonia, Moldova, Sri Lanka, Rwanda, Korea

• Process re-engineering/admin reform before automation: UK, USA, Canada, Singapore, Estonia

• Secure identification: Belgium, Portugal, Estonia, Malaysia, Pakistan12

1. Cloud computing• UK, USA, Japan, New Zealand,

Singapore, Thailand, Moldova

2. Open Data Initiatives• UK, US, Australia, NZ

3. Government Apps Stores• USA, UK

4. Mobile service deliverySingapore, Estonia, Philippines, Rwanda, Kenya, India

5. Context Aware Services

Shaping the Future: Latest Trends

The CLOUD

Gartner: Cloud Computing is at the Peak of Inflated Expectations

Open Data: USA

Open Data: UK

Government Apps Store: USA

Government Apps Store: UK

Mobile phones are the single largest delivery platform in the world

Collateral Registry

Civil R

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e-C

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Motor Vehicles Registry

Land

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Credit Rating

e-Taxation

Largest EverDelivery Platform> 4 Billion Mobile Phones

Future is Mobile

• 4.8 billion mobiles

• 176.1 million connections added in the first quarter of 2010

• Nearly 60 million mobile subscriptions being added a month

• 160 percent increase in mobile data traffic over the past year

• 2.4 times faster growth in mobile broadband than fixed broadband data traffic

• By 2014, more than 400 million of the world's Internet users could access the network solely through a mobile connection

Source: Wireless Intelligence, Q1 Quarterly World Review and ITU, Measuring the Information Society, 2010; Cisco Visual Networking Index Forecast, 2010.

Percentage increase in GDP with every 10% increase in ICT penetration

Mobile Internet Broadband0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

High income countries Middle and low income countries

Source: World Bank, ICT4D 2009 report

80

70

60

50

40

30

20

10

0

98 99 2000 01 02 03 04 05 06 07 08 09

67.0

25.9

17.8

9.57.1

Mobile

Fixed

Internet users

Mobile broadbandFixed broadband

Source: ITU, Measuring the Information Society, 2010

Per

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Explosive Growth of Mobile Phones

Rapid Growth in Global Mobile Data Traffic

2009 2010 2011 2012 2013 20140

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Source: Cisco VNI Global Mobile Data Traffic, 2010

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1. Anywhere, anytime, any device

2. Future is mobile

3. Open standards

4. Modular development of applications (aka Service Oriented Development of Applications or SODA)

5. Business analytics

6. Sensor technologies

Next in Services: Context Aware Services

Source: adapted from ITU, 2010

What is cloud computing?Different definitions in scope and content

A style of computing where massively scalable IT-related capabilities are provided “as a service” using Internet technologies to connect multiple external customers

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction

Cloud computing is a better way to run your business. Instead of running your apps yourself, they run on a shared data center. When you use any app that runs in the cloud, you just log in, customize it, and start using it. That’s the power of cloud computing.

Cloud computing is an all-inclusive solution in which all computing resources (hardware, software, networking, storage, and so on) are provided rapidly to users as demand dictates

Cloud computing delivery models

Software as a Service (SaaS)The capability provided to the consumer is the use of the provider’s applications running on a cloud infrastructure and accessible from various client devices through a thin-client interface such as a web browser

Platform as a Service (PaaS)The capability provided to the consumer is deployment onto the cloud infrastructure consumer-created applications using programming languages and tools supported by the provider

Infrastructure as a Service (IaaS)The capability provided to the consumer is the provision of processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications

NIST: Cloud Computing Deployment Models

Private cloudThe cloud infrastructure is operated solely for an organization

Community cloudThe cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns

Public cloud The cloud infrastructure is made available to the general public or a large industry group

Hybrid cloudThe cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability

+ …….

+ …

Government expenditure on ICT is large and growing

Source – www.data.worldbank.org

According to Gartner:- worldwide central government IT spending is to grow by 4 per cent in 2010 to more than

$244bn- total local government worldwide ICT spend will grow to more than $179bn- combined, the ICT spend is expected to exceed $423bn

2003 2004 2005 2006 2007 20080

2

4

6

8

10

12

ICT expenditure (% of GDP)

USA

UK

China

Hong Kong

World

South Korea

Singapore

USA UK China Canada India South Korea Singapore Hong Kong

1,037,441.00

169,419.00

258,190.00

99,160.0052,001.00

84,284.00

12,888.00 19,812.00

ICT expenditure for 2008 (current US$ millions)

Key Benefits of G-Clouds

Before Cloud implementation After Cloud implementation

Lack of flexibility and agility. Before implementing cloud computing the US General Services Administration was able to make changes to the www.USA.gov within six months.

Improved elasticity, agility and flexibility. The GSA reports that, with external hosting, changes to the site can now be accomplished in a single day (Nagesh, 2009c)

Underutilized massive IT infrastructure. UK:130 data centers across central Government departments, 90,000 data-centre based computer systems (servers) supporting central Government ICT services and an estimated 200,000 servers across the UK public sector. The average utilization level is estimated to be less than 10%.

Reduced IT infrastructure needs. The UK Data Centre Strategy will reduce the number of data centers used by central Government to host G-Cloud and other ICT services to between approximately 10 and 12 (Data Centre Strategy, G-Cloud & Applications Store for Government (ASG) Program)

Impact on Environment. ICT industry accounts for approximately 2 percent of global carbon dioxide (CO2) emissions, a figure equivalent to aviation, according to a new estimate by Gartner, Inc (http://www.gartner.com/it/page.jsp?id=503867)

Reduced environment footprint. A cloud computing program in a West European country implemented by EMC will reduce corresponding data centre space, power consumption and carbon footprint equivalent to taking 1,422 cars of the road yearly

Energy inefficient. In the US the energy used by the nation’s servers and data centers was about 61 billion kilowatt-hours (kWh) in 2006 (1.5 percent of total U.S. electricity consumption) for a total electricity cost of about $4.5 billion

Energy Efficient. Because resources are pooled, each user community does not need to have its own dedicated IT infrastructure. Several groups can share computing resources, leading to higher utilization rates, fewer servers, and less energy consumption.

Country Examples: USA

• In September 2009, the Federal Government’s Cloud Computing Initiative was announced, GSA serving as a provisioning hub for Government Cloud

• Apps.gov was established as a “cloud computing storefront”• About a half of US governmental agencies use some cloud

computing technologies• By 2014, over $1 billion of the federal IT budget would be devoted to

cloud computing• By moving to a cloud service, GSA now pays an annual total of

$650,000 for USA.gov and all associated costs, a costs savings of $1.7 million, or 72 percent

• Defense Information System Agency estimates about $15 million in cost savings

• The migration to the Cloud could save Washington D.C. City Government 48% on e-mail expenditures and the City of Los Angeles 23.6 %

Country Examples: UK’s G-Cloud

- The G-Cloud program is a key part of the new Public Sector ICT Strategy

- All G-Cloud services will be delivered to the future ‘Common Desktop’ which will include both desk based and mobile devices

- The G-Cloud will be a combination of the private cloud and trusted elements of public clouds

- The G-Cloud Program is expected to deliver the following savings: – £300 million per annum (by 2015) by consolidating data centres

in use across the Public Sector against estimated current spend in the order of £5bn; and

– £500 million per annum (by 2020) against an estimated current spend in the order of £5bn, through faster and more effective procurement of infrastructure and services through the Applications Store for Government (ASG).

Country Examples: Japan

Kasumigaseki Cloud

- The KC is part of Digital Japan Creation Project- Developing the KC in stages by 2015- The Ministry of Interior and Communication is responsible- The KC will enable various ministries to collaborate, integrate and

consolidate hardware and create platforms for shared functions- Existing back office systems, such as payroll, accounting, and

personnel management, will be virtualized and hosted in the private cloud. Some front office systems, such as electronic procurement, will be virtualized to a public cloud

- The KC will use green technology to help cut costs. The data centers will be built in cold regions, will use wind and solar power, will run on DC power, and may be placed underground where temperatures are stable

Country Examples: South Korea

- Korea’s Communications Commission has announced commitment of over $500 million to the development of Korean cloud computing facilities

- In June, the Ministry of Knowledge Economy announced plans to develop technology linking mobile and cloud computing, at a cost of 274.5 billion Won ($230.7 million)

- South Korea is moving 17 critical applications to the Government Cloud

- The Government’s aim is to stimulate the development of the Korean cloud computing market

- A further benefit is that government agencies can use the onshore cloud capabilities to reduce in-house ICT costs – overcoming the reluctance of agencies to use offshore clouds

- The goal is reportedly to capture 10 per cent of the global cloud services market by 2014 and to halve the cost of operating the public sector’s ICT infrastructure

Country Examples: Australia

- The Australian Bureau of Statistics implemented its own private cloud with the potential to host the 2016 eCensus thus avoiding a $9 million outsourcing contract

- During its transformation the ABS went from more than 300 physical servers to 70 which are now hosting around 1500 virtual machines

- The ABS had 30 people managing server infrastructure before implementing private cloud and today they have seven

Country Examples: SAR Hong Kong

- the Government cloud strategy is still under preparation- in the initial phase to use some kind of private cloud to

support government capabilities- Office of Government Chief Information Officer as

potential cloud supplier to government departments- Hong Kong government will use cloud computing to:

- facilitate internal collaboration- facilitate communication within the government,

government-citizen and government-businesses- facilitate information management - record keeping for

instance- human resource management services

Moldova Cloud: First World Bank G-Cloud Project

- M-Cloud first WB Government Cloud project - Internal (private/community) government cloud, defined as

a multitenant, dynamically provisioned and optimized infrastructure, with some public cloud elements

- Will initially be a Mini-cloud, and will incorporate a Mobile applications platform

- Will target three categories

i) government ministries, SOEs, departments and agencies

(ii) SME engaged in the development and delivery of IT services

(iii) universities for research and development

About Us: Strategic Themes

Focus on 3 inter-related strategic themes…

TRANSFORMATION INNOVATION

ACCESS

The introduction of information and communication technologies to improve the delivery of public and private services.

The use of information and communication technologies in transforming traditional sectors and creating

innovative new sectors.

About us: What we do…

Suporting the growth of IT/IT enabled service industry: Bank’s support in Ghana, Mexico, Kenya, Sri Lanka; infoDev’s research on ITES industry and IT parks

Cellular Distribution Facility: IFC- financed working capital facility program offering local banks creditline to cellular distributors to buy bulk airtime aimed for retail market

Supporting the development of an ICT-Enabled innovation network: Leveraging infoDev’s business incubator initiative, which provides financing and TA to over 150 incubators for 9000 MSME businesses in 75 countries

Supporting the development of holistic ICT policy frameworks: Increasingly developing countries are recognizing the linkage between innovation and economic development and GICT is working with several countries

Creating systems of innovations: DFID Low Carbon Innovation Centers, clean energy innovation centers (with ESMAP and the Bank's Energy Sector)

Banking the unbanked: IFC support to m-banking - WIZZIT (South Africa), Digicel in Caribbean, Millicom; infoDev’s m-banking knowledge map and research

e-Government: Bank support in Vietnam, Ghana, Mongolia, Kenya; IFC support to Sonda (Chile), IBS (Russia), Meteksan (Turkey), Chinasoft; infoDev’s egovernment toolkit

e-Health: Investing in cellular-based health systems, Voxiva (Africa – LAC), health data management

Education: IFC support to Socket Works (Nigeria), new Bank-led ICT Skills development Initiative, infoDev’s ICT in education toolkit in partnership with UNESCO

Partnerships and Knowledge: M-Banking Conference (GSM Assoc., DfID, CGAP), Industry Partnerships, e-Transform Initiative, e-Development Thematic Group

Sector reform: Bank active in 105 countries in last 10 years, infoDev’s regulatory toolkit and Open Access research

PPPs for backbone infrastructure: IFC-led EASSy Project (22 countries, 30 operators, 4 other DFIs) in Africa – Bank-led Regional Communications Infrastructure Program (RCIP)

Wireless: IFC financing have so far contributed to 225 million mobile subs

Infrastructure: IFC financing for Shared towers (Turkey and Brazil); Bank support for rural infrastructure (India, Sri Lanka);

New broadband solutions: WiMax (Ukraine, Uruguay), Cameroon / Central Africa (Pipeline), West Africa (Electricity Transmission), Broadband wireless (Afghanistan)

INN

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STRATEGIC FOCUS

POTENTIAL APPLICATIONS

- Records Management systems - HR Management Systems, online job listings- e-Pensions Administration

- Records Management systems - HR Management Systems, online job listings- e-Pensions Administration

BANK PROJECT EXAMPLES

- Treasury systems to improve fiscal control - e-Procurement for checks on govt. purchasing- e-Taxation for efficient revenue collection

- Treasury systems to improve fiscal control - e-Procurement for checks on govt. purchasing- e-Taxation for efficient revenue collection

- e-Gov portal for 24/7 service delivery- e-services to reduce exploitation, official discretion - e-democracy to empower citizens

- e-Gov portal for 24/7 service delivery- e-services to reduce exploitation, official discretion - e-democracy to empower citizens

- Court MIS, e-case filing to expedite processes- Legal systems for judges- Public awareness via online case data

- Court MIS, e-case filing to expedite processes- Legal systems for judges- Public awareness via online case data

SRI LANKA: e-Sri Lanka Program; (US$ 53 mil): Creation of a ‘single window’ for gov services; inter-connected government agencies for improved productivity

SRI LANKA: e-Sri Lanka Program; (US$ 53 mil): Creation of a ‘single window’ for gov services; inter-connected government agencies for improved productivity

CHILE: Public Expenditure Management Project, ($23 Mil) improve transparency of public finance via a modern and integrated IFMIS

CHILE: Public Expenditure Management Project, ($23 Mil) improve transparency of public finance via a modern and integrated IFMIS

GUATEMALA: GT TAX ADMIN. TAL, ($28 Mil): Computerized tax collection sytem to improve convenience to citizens and accuracy in revenue collection

GUATEMALA: GT TAX ADMIN. TAL, ($28 Mil): Computerized tax collection sytem to improve convenience to citizens and accuracy in revenue collection

EL SALVADOR: Judicial Modernization Project; ($ 24 mil) automates case management programs, and provides e-learning for judicial employees

EL SALVADOR: Judicial Modernization Project; ($ 24 mil) automates case management programs, and provides e-learning for judicial employees

AdministrativeManagement

AdministrativeManagement

AccountabilityAccountability

Citizen-centricGovernance

Citizen-centricGovernance

Law & JusticeLaw & Justice

Examples of WB e-Gov Investments

The World Bank’s Standalone ICT/eGov Projects

1. Kenya. US$157 million for pro-competitive regional communications infrastructure, regional policy harmonization, enabling environment, e-Government applications. Several phases, from 3 – 25 countries.

2. Vietnam. US$96 million for implementation of the National ICT Strategy, enterprise architecture, e-applications, capacity building.

3. Mexico. US$80M for IT-enabled services industry development.

4. Romania. US$60 million for developing e-Government, Broadband and Knowledge Economy.

5. Ghana. US$57M for e-Government and IT-enabled Service Industry.

6. Sri Lanka. US$53M for developing e-Government, Broadband, IT industry and e-society.

7. Organization of Eastern Caribbean States. US$7 million for regional e-Government applications that use economies of scale.

8. Rwanda. US$10 million for Government reengineering, e-Government applications, and rural access.

9. Moldova. US$15 million for e-Transformation program (G-Cloud, Mobile apps, Apps store, e-procurement and open data)

E-Transform Initiative

• Accelerate ICT-enabled government transformation

• Build Government capacity to manage IT projects, help Governments spend their IT dollars more efficiently

• Showcase best practice • Connect practitioners with

implementers & experts • Technical assistance for project

design and enabling environment• Finance firms willing to

competitively partner with govts: PPP models

• eTransform Video on Youtube: http://www.youtube.com/watch?v=rrRIAcvC-Ks

OPPORTUNITY WHAT ARE WE TRYING TO ACHIEVE?Average number of trips saved by citizens to government offices due to e-services in India

Waiting time saved for citizens at government offices due to e-services in India

Source: Survey of e-government projects in India, IC4D 2009

Beyond the traditional Bank’s business model

Access to expertise P2P

Access to knowledge products

Innovation

Fast-track project design

• HLEG and industry• Community of Practice• Global Forum

• Knowledge Portal

•Innovation Radar

• Project Development Facility

Access to Global Expertise: e-Transform High-Level Experts Group

• The e-Transform High-Level Experts Group provides senior leaders in government transformation with insightful advice and knowledge that comes from world-class leaders in the field of ICT and government e-transformation

• This unique group aims at implementing new breakthrough initiatives and efficient processes and services within nominated countries, through targeted advisory work, shared knowledge base and tools/resources that demonstrate the value of proven approaches to government transformation

Members : • John Suffolk (Government CIO, UK)

• Andrea Di Maio (VP Research Gartner)

• Corinne Charette (CIO Canada)

• Stephen Fletcher (President NASCIO, USA)

• Arvo Ott (Director, eGovernance Academy, Estonia)

• James Kang (Government CIO, IDA Singapore)

• Francisco Garcia Moran (Director General, European Commission)

• R.Chandrasekhar (Secretary Department of IT, India)

John Suffolk, CIO, UK

Arvo Ott, E-Gov, EstoniaFrancisco Garcia-

Moran, EU

Corinne Charette,

CIO, Canada

Stephen Fletcher

President,

NASCIO

Andrea di Maio,Gartner

R. Chandrashekhar,Secretary, India

James Kang, CIO, SingaporeDeepak Bhatia

World BankJane Treadwell

World Bank

Randeep SudanWorld Bank

High Level Expert Group

e-Transform in Moldova

4 consultations with global experts culminating in the Aug 12 eTransformation Leadership Roundtable  

With participation of Robert Zoellick, the President of the World Bank Group, Prime Minister Vlad Filat, most Cabinet Ministers and Deputy Ministers

Panelists:

  Mr. John Suffolk, Government CIO, Cabinet Office, UK H.E. Mart Laar, Former Prime Minister of Estonia, Member of the Estonian Parliament Mr. Andrea Di Maio, Vice President and distinguished analyst, Gartner Research Mr. Chin Siong Seah, CEO, IDA International, Singapore Mr. Anthony Townsend, Director of Technology Development, Institute for the Future, USA

e-Development Thematic Group: Global Knowledge Sharing and Policy Dialogue

• Global virtual forum for knowledge sharing and learning on the use of ICT in development

• A global community of practice since 2000 with over 3000 members and over 200 learning events delivered to date

• Innovative use of Twitter, Facebook, LinkedIn, videoconferencing, webcasting and webinar tools

• Website: www.worldbank.org/edevelopment

We invite new partners

and members! Join us!

edevelopment@worldbank.org

Thank you!

Oleg Petrov, Program Coordinator,e-Development Thematic Group,

Global ICT Department, World Bank/IFCopetrov@worldbank.org