1. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 1 Business Process Management in E-Government A cooperation project between the Department of Business Informatics – Information Engineering at the University of Linz and the Austrian Federal Chancellery 04.05.2006 Vienna Prof. Dr. Friedrich Roithmayr & Dr. René Riedl Johannes Kepler University Linz Department of Business Informatics – Information Engineering

2. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 2 Business Proces Management in E-Government 2 Agenda

3. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 3 Business Proces Management in E-Government 3 Problem Differences in spreading e-government  Although the technologies were available more or less everywhere at the same time, country-specific differences and also intergovernmental differences in the spreading behavior can be determined. increasing complexity due to  different process modeling methods,  different levels of detail,  different objectives and process views. non-conformity of processes and process models. lack of guidelines for customizing/tailoring process models. limited reuse of effective solutions (best practices). not all what is designated as a success in non government sector is a success in government sector.

4. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 4 Business Proces Management in E-Government 4 Main Issue – internal Focus and/or external Focus of processes operative focus no focus dual focus (citizen & operative oriented) citizen focus Internal focus external focus lowhigh low high Strategic positioning of e-business and/or e-government process can be internal, external or both

5. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 5 Business Proces Management in E-Government 5 Results of the the Electronic Commerce study (König, W.: International vergleichende Untersuchung des Einsatzes von Electronic Commerce: Schwerpunkte effizienter Unternehmen. Presentation at the Wirtschaftsinformatik Symposion at the University of Leipzig. 2002 operative focus (10%) no focus (25%) dual focus (citizen & operative oriented) (34%) market focus (31%) Internal focus external focus lowhigh low high Strategic business process positioning of evaluated German companies

6. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 6 Business Proces Management in E-Government 6 Results of the the Electronic Commerce study (König, W.: International vergleichende Untersuchung des Einsatzes von Electronic Commerce: Schwerpunkte effizienter Unternehmen. Presentation at the Wirtschaftsinformatik Symposion at the University of Leipzig. 2002 operative focus (10%) no focus (33%) dual focus (citizen & operative oriented) (28%) market focus (29%) Internal focus external focus lowhigh low high Strategic e-business positioning of evaluated German companies which where not efficiently evaluated

7. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 7 Business Proces Management in E-Government 7 Results of the the Electronic Commerce study (König, W.: International vergleichende Untersuchung des Einsatzes von Electronic Commerce: Schwerpunkte effizienter Unternehmen. Presentation at the Wirtschaftsinformatik Symposion at the University of Leipzig. 2002 operative focus (9%) no focus (10%) dual focus (citizen & operative oriented) (46%) market focus (35%) Internal focus external focus lowhigh low high Strategic e-business positioning of evaluated German companies which where efficiently evaluated From our point of knowledge we have no similar studies In E-government processes.

8. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 8 Business Proces Management in E-Government 8 Reflection E-government processes must be positioned in a dual focus:  The external focus is citizen oriented. The citizen can interact in high degree with the authority; Availability of a complete set of implementation and support services to ensure customer satisfaction. There is a transformation from administrative level to a self-service level. There is a transformation from a fragmented point system to an integrated suite (Example: FABASOFT e-government suite). Single source of authority-wide information  The internal focus is operation oriented. All government domains are integrated. All processes are integrated. Improves efficiency and reduces costs. Move all administrative transactions to self-service E-government processes provide tools and applications that are:  complete Integrated,  Scaleable,  high available,  Secure.

9. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 9 Business Proces Management in E-Government 9 Differences between non E-government projects and E-government projects Non E-government  requires (in theory) a holistic view of the organization, its culture, systems processes and stakeholders. Applications follow very slowly the theoretical concept. There is a short term of process change.  requires a short term view due to the change process. E-government  requires a holistic view of the (government) organization, its culture, systems, processes and stakeholders. There is a dynamic and long term of process change.  requires a long term view and flexible planning due to the iterative and disruptive nature of the change process.  The success of an E-government project depends on the cooperation of stakeholders. Government strategy and E- Business strategy must be coupled

10. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 10 Business Proces Management in E-Government 10 Differences between non E-government projects and E-government projects Non E-government  poses challenges depending on the applications,  Process business improvement is an up growing motive in process management. E-government  poses a new challenge application independent (in terms of creation, maintenance, preservation, security, integrity and accessibility of records).  Speeding up business process and services are among the major motives for launching e- government projects. Business process improvement is the next step in e-government process management.

11. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 11 Business Proces Management in E-Government 11 Differences between non E-government projects and E-government projects Non E-government  Stakeholder interests are important but they don't effect the development of the e-projects.  In order to be successful, before a project is launched, a detailed inventory of business processes is necessary.  Candidates for e-business processes are: processes for cost reducing; processes increasing performance. E-government  Stakeholder interests effect the development of e-government projects.  In order to be successful, before a e-government project is launched, a through understanding and detailed inventory of business processes, IT, skills, environmental situation is necessary.  Candidates for e-government projects are: core business processes, G2G processes, G2B processes, Cross functional business processes.

12. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 12 Business Proces Management in E-Government 12 Strategic competitive approach of E-Government Projects E-Government Projects (Costing leader) Competitive advantage Field of Competitiveness low cost differentiation closely wide E-Business Projects (differentiation) E-Government Projects (Costing Emphasizes) E-Business Projects (Differentiation Emphasizes)

13. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 13 Business Proces Management in E-Government 13 From G overnment P rocess to G overnment P rocess I mprovement Basic assumptions are:  a good process is better than a bad process,  a good process can be improved. follows the necessity  finding the right improvement approach for improving government processes. Build a Vision Statement  if you want to construct a ship inspire the longing for the sea. in analogy to e-government your vision could be  if you want to construct good business processes inspire the longing for citizens satisfaction.

14. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 14 Business Proces Management in E-Government 14 Process Improvement Approaches

15. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 15 Business Proces Management in E-Government 15 Process Improvement Cycle

16. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 16 Business Proces Management in E-Government 16 Comprehensive Approaches Comprehensive approaches give a framework which normally can be used for great variety of processes. They consist of several methods with the overall objective of process improvement (e.g. Six-Sigma) or propose a best-practice solution (e.g. ITIL). Approaches  Improvement Frameworks Six Sigma, Quality management  Process Reference Models SAP R/3, ITIL ARIS  Strategic Management Process

17. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 17 Business Proces Management in E-Government 17 Part of Business Process Improvement Cycle Activities within common phases of a BPI methodology (e.g. Initiation, Diagnosis, Design, Implementation, Process Management). The focus is clearly on a single activity (or an answer to a questions), which has to be performed within a process improvement cycle. Approaches  Process Identification  Process Evaluation  Process Analysis  Process Change Management  Process Controlling

18. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 18 Business Proces Management in E-Government 18 Technological Impact (Improvement due to Technological Innovations) The process performance can be improved due to technological innovations. The possibilities provided by a new technology allow doing things in a different way and thereby delivers improvement potential (e.g. RFID, wireless communication). Approaches  IP/WLAN Communication  Radio Frequency Identification (RFID)

19. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 19 Business Proces Management in E-Government 19 External Impact Requirement of outside of the organization demand certain requirements of the process. Not fulfilling the relevant requirements leads to disadvantages. Improvement appears in terms of fulfilling these requirements of third party stakeholders (e.g. ISO 9000 certification). Approaches  Regulatory Compliance  Auditing, Certification

20. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 20 Business Proces Management in E-Government 20 Focus on Cross Organizational Issues Improvements only can take effect if organizational boundaries are crossed. This can be reached by providing the right interfaces / contracts (e.g. Business Process Outsourcing) or planning and managing the processes exceeding organizational boundaries (e.g. Supply Chain Management). Focus on Specific Issues within an Organization. Approaches  Supply Chain Management  Business Process Outsourcing

21. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 21 Business Proces Management in E-Government 21 Focus on Specific Issues within an Organization Every organization has specific requirements on their business process. BPI must align their processes on the specific issues of the organization. Internal improvement of functions or single processes can take positive effect on processes (e.g. organizational culture as precondition for improvement) Approaches  Business Intelligence  Measuring Agility  Business Rules Management  Complexity Management  Business Integration  Stakeholder Management  Intangible Assets  Service Oriented Architecture

22. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 22 Business Proces Management in E-Government 22 Conclusion Business process improvement is a good methodical approach for satisfying citizens expectations. Business process improvement is a good methodical approach for cost reduction in E-government and for increasing efficiency. Best case practices can help in spreading e-government concepts in the EU. Develop an “E-government Process Index” (EGPI)  EGPI can help for determining priority and performance of individual processes  EGPI can help evaluating the E-government processes.  EGPI can help comparing E-government processes between different object (countries, applications, …)  EGPI can help in defining the IT-Strategy

23. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 23 Business Proces Management in E-Government 23 An example for designing an E-Gov- BPI-Index BPI Approach BPI Approach priority BPI Approach performance BPI Approach description BPI Approach life cycle phase BPI Approach objectives BPI Approach comments BPI Approach experience

24. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 24 Business Proces Management in E-Government 24 Example of an EGPI – “Process identification” A business process is a process that delivers business outputs. Processes arise out of identifying the factors upon which accomplishment of the organization's mission depend. Therefore, if something is critical for the success of an organization, it is necessary to set objectives and design processes for their achievement. Process Identification means to define processes to come up the core competence and to satisfy the customer’s needs. Examples are: core processes, support processes,.... requires an action The process is in the phase of Adoption (education, training, roll out); the process has enough potential for the future

25. Johannes Kepler University Linz Department of Business Informatics – Information Engineering 25 Business Proces Management in E-Government 25 Contact Department of Business Informatics – Information Engineering Johannes Kepler University (JKU) Linz Altenberger Straße 69 4040 Linz, Austria Prof. Dr. Friedrich Roithmayr friedrich.roithmayr@jku.at Dr. René Riedl rene.riedl@jku.at