BPM in E-Gov <Results of the Study> <Recommendations> 04.05.2006 Vienna Prof. Dr. Friedrich Roithmayr & Dr. René Riedl Johannes Kepler University Linz Department of Business Informatics – Information Engineering

Agenda Research framework The 15 projects and countries Descriptive statistics (No. of processes, budget, duration) Project management factors, process and technology factors, organizational and personal factors, business process approaches Process effectiveness, process efficiency, resource efficiency, motivation efficiency Recommendations

Research framework Dependent Variable Effect Independent Variables Causes

The 15 projects and countries

Descriptive statistics: No. of processes Mean 47.09 Standard Deviation 67.31 Maximum 200 Minimum 1 Range 199

Descriptive statistics: Budget in € Mean 2,749,066.67 Standard Deviation 4,856,844.40 Maximum 20,000,000 Minimum 26,000 Range 19,974,000

Descriptive statistics: Duration in years Mean 3.2 Standard Deviation 2.76 Maximum 12 Minimum .5 Range 11.5

Descriptive statistics: Correlation There is a strong positive correlation between the No. of processes and project budget. [Pearson correlation coefficient = .679] There is almost no correlation between the No. of processes and project duration. [Pearson correlation coefficient = -.103] There is almost no correlation between project budget and project duration. [Pearson correlation coefficient = .082] Conclusion: The more processes are concerned by a process reorganization project, the more money has to be spent in order to successfully manage the project.

Project management factors Initiation of the project Top-down by governmental departments: 7 Bottom-up by departments (e.g. IT) or co-operations (e.g. between cities): 8 Project organization Task force in staff function: 8 Full time staff member: 2 Other (e.g. matrix organization): 5 Project management tool MS Project: 9 ARIS: 7 MS Excel: 4 Other (e.g. Bonapart): 6 Number of people involved into the project (intern only) Mean: 21.62 / Standard Deviation: 37.62 / Max: 150 / Min: 4 / Range: 146

Process and technology factors I Kinds of processes concerned by reorganization (before the project started) Registration information is fully automated through an internet portal which checks the authentification and allows an electronic payment process 1 1 Level of integration With media Without media Automatic break break People can ask for information regarding the building permission via e-mail. Incoming e-mails however are printed centrally and circulated through the internal post. The reply gets to the citizen on written paper. 5 5 3 Information Communication Transaction Source: Becker et al. 2004 Level of interaction

Process and technology factors II Business process levels Many projects have end-customer-related measurements (e.g. quality measurement), but they do not have process measurements and/or performance measurments, therefore, there is no basis for benchmarking and continuous process improvement. Modelling method EPC: 7 Did not model the process: 4 Other: 4 Reference models Only used in 2 projects IT infrastructure big differences between the various projects (hardware, OS, packaged software)

Organizational and personal factors Business process outsourcing is not important (only within 1 project business processes are outsourced to an external firm) IT outsourcing is partially important Syst. oper. Data center Telecom. Networks App. Dev. App. Integr. App. Maint. Help desk User supp. Info. cent. IS plann. IS mgmt. No. of projects 3 4 8 1 Dominant motive No dominant motive Lack of - know-how - capacity Outsour. success 6.50 8.25 7.38 8.00 Scale: 1…complete failure / 9…very successful

Business process approaches A business process approach is a framework to manage the various processes within an organization in the long run. BPM refers to a set of activities which organizations can perform to either optimize their business processes or adapt them to new organizational needs. Management systems Strategic management processes Project management Knowledge management Change management Quality management Stakeholder management Reference model Process standardization IT infrastructure Business process outsourcing Real-time business Intangibles

Business process approaches Importance Performance Quality deficit Scale: 1…not important – very poor / 9…critically important – very good

Process effectiveness The output of the process meets the requirements of the end customers Scale: 1…very low performance / 9…very high performance

Process efficiency Only in 5 projects service quality is measured before and after the reorganization Only in 2 projects cycle time is measured before and after the reorganization In no project process costs are measured before and after the reorganization Scale: 1…very low performance / 9…very high performance Result: Exact measurement leads to higher performance (in contrast to an overall judgement)

Resource efficiency Productivity How efficiently are governmental bodies' resources transformed into the production of services? All projects resulted in more output = offering more (electronic) services but only 20 % achieved more output with less input (money, manpower)

Motivation efficiency The ability to close the gap between the organisation’s and the executive’s (civil servant’s) objectives. Image improvement is the main motivation factor for employees. Other motivation factors are not important (e.g. raise of salary, advancement in position). In some projects there are even no incentives for employees do not behave opportunistically.

Recommendations Models have to be developed that allow for the civil servants getting out temporarily of the day-to-day business in order to focus exclusively on a process reorganization project Models have to be developed that allow for the identification of processes with high potential concerning the level of integration (automatic) and interaction (transaction) Measurement models have to be developed that allow for the evaluation of process performance indicators (especially activity-based costing systems and systems to measure cycle times) Models have to be developed that allow for the measurement of the benefits and risks associated with the usage of a reference model Models have to be developed that allow for the measurement of outsourcing success Research within the „quality-deficit-approaches“ should be promoted Incentive systems for civil servants should be developed in order to mitigate the problem of missing motivation and opportunism Development of an e-government process index (EGPI)

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