an apac country e-government project alcatel shanghai bell 25 jan, 2005

An APAC Country An APAC Country e-Government e-Government ProjectProject

Alcatel Shanghai Bell25 Jan, 2005

All rights reserved © 2004, Alcatel Shanghai Bell

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ContentsContents

> Method of Project Scoping

> Project Business Case Studies

> Alcatel’s Integration Capacity

> Summary


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ChroniclesChronicles

> June 2003 – Alcatel meeting with APAC Country Min of Comms• Initial idea of using Chinese financing for e-gov

development

> Dec 2003 – Presentation to APAC Country Cabinet Subcommittee for Investment; MU signed between ASB and Min of Comms

> Feb 2004 – kick-off of E-gov conceptual framework development

> March-May 2004 – detail survey of government applications requirements

> June 2004 Completion of Feasibility Report> Sept 2004 Approval of FR by Min Comm, and approval

to raise loan application to Chinese government


- 4 -

Chronicles (cont.)Chronicles (cont.)

> Oct-Dec 2004 – Detail project scoping and costing

> Currently – pending budget allocations and final approval


- 5 -

A joint planning teamA joint planning team

Project Planning CommitteeProject Planning Committee

ASBASB Gov of APAC CountryGov of APAC Country

Integration and ServicesIntegration and Services

Cabinet Sub-CmtCabinet Sub-Cmt

M.CommM.Comm MoFMoF Other Min.Other Min.

Set up / appoint Set up / appoint

Project Planning TeamProject Planning Team

ProjectPlan

- Min Comms- Gov CIO- Min Finance- Pub. Svr. Comm.-Prime Min Off.-- …

- E-governance- Business analyst- Applications- IT platform- Communications


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Key Concepts for the Project ScopingKey Concepts for the Project Scoping

> Totality• Treat three core necessary elements of E-Government

development together as a whole

> Application-Driven• Use the E-Government Applications to drive the overall

development and rollout. Ultimately, the spending of public funds should be justifiable through applications, economic returns, and general contribution to the wealth of the society.

> Sustainability• To position development as a means to create significant

demand to sustain the development of local competences in ICT industry.


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e-Government System Architecturee-Government System Architecture

> Three essential elements• e-Gov Applications: application and services software

components • IT Platform: data center, application servers and storage • Government Info-communications Infrastructure (GII):

physical network components

GIIGII IT Platform

IT Platform

e-Gov Applicationse-Gov Applications


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ee-Government Applications Strategy-Government Applications Strategy

Strategy: Think Big, Start Small, Scale FastThink Big, Start Small, Scale Fast C

om

panie

s O

ffice

Syst

em

Government to Government

Government to Business

Government to Citizen

Tit

les

Offi

ce

Syst

em

Vis

itor

Perm

it

Exte

nsi

on

Syst

em

TC

P

Managem

ent

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em

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iling o

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etu

rns

Syst

em

Tra

deN

et

Syst

em

Lice

nce

R

egis

trati

on

Syst

em

GIIGII IT PlatformIT Platform

… …


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Applications Main Selection Criteria Applications Main Selection Criteria

> Revenue generating or capture lost revenues

> Improvement in service delivery and productivity• Promote public sector “Service Excellence”

> Contributing to economic growth/ private investment• Improve overall business climate • Reduce business cost • Attract more investors and businesses

> Cost savings • Paperless• Convergence of voice and data• Redeployment of personnel to high-end value-added work


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Project Services EvaluationProject Services EvaluationServices Ministry / Dept Criteria Findings/Benefits

Companies Office System

Ministry of J ustice / Registry of Companies

Revenue Provide convenient to business in registration process.

Ease of Payment.

Visa/Permit/ Extension

Ministry of Immigration Revenue Provide convenient for visitor to apply or extend visit. Increase tourism and investment.

Ease of Payment.

Frequency Management System

Ministry of Communication

Revenue Provide convenient for business to register / renew radio license.

Ease of payment.

Ship Registration/Service Fee

Marine Safety Authority (MSA)

Revenue Provide ease of registration for ship owner.

Timely collection of renewal revenue.

Ease of payment for services fees.


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Project Services Evaluation Project Services Evaluation

Services Ministry / Dept Criteria Findings/Benefits

Licensing for Weights

and Measurement

Ministry of

Commerce/ Weights &

Measurement

Revenue Provide convenient to business in

registration/ renewal process. Ease of Payment.

Titles Office System Ministry of

Justice/ Titles

Registration

Revenue Low cost services. Heavy paper- based.

Application Enquiry

System/ File Tracking

System

Town Country

Planning

Work

Productivity

Reduce interruption from enquiry

and allow planner to do more value

added services and strategic

planning.

Environment Impact

Assessment (EIA)

Dept of Environment Environmental Currently no service charge.

Case Management

System

Ministry of

Justice/ Family Court

Work

Productivity

New setup, no existing system. Facilitate the management of cases.


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Project Proposed e-Services-1 Project Proposed e-Services-1

•Application of proposed reserve company Application of proposed reserve company namename•New registration (Sole New registration (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)•Change of Particular (Sole Change of Particular (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)•Return of Allotment of Shares (Limited Return of Allotment of Shares (Limited Company)Company)•Increase in Capital (Limited Company)Increase in Capital (Limited Company)•De-registration (Sole De-registration (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)•General Search (Sole General Search (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)

•Application of proposed reserve company Application of proposed reserve company namename•New registration (Sole New registration (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)•Change of Particular (Sole Change of Particular (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)•Return of Allotment of Shares (Limited Return of Allotment of Shares (Limited Company)Company)•Increase in Capital (Limited Company)Increase in Capital (Limited Company)•De-registration (Sole De-registration (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)•General Search (Sole General Search (Sole Proprietorship/Partnership/Limited Company)Proprietorship/Partnership/Limited Company)

Companies Office Companies Office SystemSystem

(G2B)(G2B)

Companies Office Companies Office SystemSystem

(G2B)(G2B)


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Project Proposed e-Services-2Project Proposed e-Services-2

•Online application of Permit / visa for Online application of Permit / visa for •Visitors (business and leisure)Visitors (business and leisure)•Work PermitWork Permit•StudentStudent•InvestorInvestor•Assured IncomeAssured Income

Can be done overseas at the visitor’s Can be done overseas at the visitor’s home countryhome country

•Online extension of Visitor Entry Permit / Online extension of Visitor Entry Permit / Work Permit / Visa forWork Permit / Visa for

•Visitors (business and leisure) - allow Visitors (business and leisure) - allow maximum 2 times online application After maximum 2 times online application After which requires to come to Immigration which requires to come to Immigration office for interview to assess suitability.office for interview to assess suitability.•Work PermitWork Permit•StudentStudent•InvestorInvestor•Assured IncomeAssured Income

•Online application of Permit / visa for Online application of Permit / visa for •Visitors (business and leisure)Visitors (business and leisure)•Work PermitWork Permit•StudentStudent•InvestorInvestor•Assured IncomeAssured Income

Can be done overseas at the visitor’s Can be done overseas at the visitor’s home countryhome country

•Online extension of Visitor Entry Permit / Online extension of Visitor Entry Permit / Work Permit / Visa forWork Permit / Visa for

•Visitors (business and leisure) - allow Visitors (business and leisure) - allow maximum 2 times online application After maximum 2 times online application After which requires to come to Immigration which requires to come to Immigration office for interview to assess suitability.office for interview to assess suitability.•Work PermitWork Permit•StudentStudent•InvestorInvestor•Assured IncomeAssured Income

Visa/Permit/Visa/Permit/ExtensionExtension (G2C)(G2C)

Visa/Permit/Visa/Permit/ExtensionExtension (G2C)(G2C)


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•Application registration of Radio Application registration of Radio Frequency LicenseFrequency License•Renewal of Radio Frequency LicenseRenewal of Radio Frequency License

•Application registration of Radio Application registration of Radio Frequency LicenseFrequency License•Renewal of Radio Frequency LicenseRenewal of Radio Frequency License

Frequency Frequency Management Management SystemSystem

(G2B)(G2B)

Frequency Frequency Management Management SystemSystem

(G2B)(G2B)

Ship Registration & Ship Registration & Service FeesService Fees

(G2B)(G2B)

Ship Registration & Ship Registration & Service FeesService Fees

(G2B)(G2B)

•Online new registration for Ship Online new registration for Ship •Online renewal for Ship Online renewal for Ship •Online payment for Tonnage FeeOnline payment for Tonnage Fee•Online Application for Survey and Online Application for Survey and payment covering payment covering

•Initial SurveyInitial Survey•Technical SurveyTechnical Survey•Special SurveySpecial Survey•Loadline SurveyLoadline Survey•Incaling SurveyIncaling Survey•Compass CaliberationCompass Caliberation•Lifeboat SurveyLifeboat Survey

•Light Dues FeeLight Dues Fee

•Online new registration for Ship Online new registration for Ship •Online renewal for Ship Online renewal for Ship •Online payment for Tonnage FeeOnline payment for Tonnage Fee•Online Application for Survey and Online Application for Survey and payment covering payment covering

•Initial SurveyInitial Survey•Technical SurveyTechnical Survey•Special SurveySpecial Survey•Loadline SurveyLoadline Survey•Incaling SurveyIncaling Survey•Compass CaliberationCompass Caliberation•Lifeboat SurveyLifeboat Survey

•Light Dues FeeLight Dues Fee


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Licensing for Licensing for Weights & Weights & MeasurementMeasurement

(G2B)(G2B)

Licensing for Licensing for Weights & Weights & MeasurementMeasurement

(G2B)(G2B)

•Online new registration for Weight & Online new registration for Weight & Measurement instrumentMeasurement instrument•Online renewal for Weight & Online renewal for Weight & Measurement instrumentMeasurement instrument

•Online new registration for Weight & Online new registration for Weight & Measurement instrumentMeasurement instrument•Online renewal for Weight & Online renewal for Weight & Measurement instrumentMeasurement instrument


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Project e-Services BenefitProject e-Services Benefit• For the Ministry of CommsFor the Ministry of Comms

– Improve productivityImprove productivity– less paper handlingless paper handling– less verification, less data entryless verification, less data entry– recover delayed revenuerecover delayed revenue– deploy manpower for value added service and complex tasksdeploy manpower for value added service and complex tasks

– Consolidated and consistent dataConsolidated and consistent data– data accuracydata accuracy– easy availabilityeasy availability

• For companies/individualFor companies/individual– Save time Save time

– transacting over Internettransacting over Internet– faster and assured turnaround timefaster and assured turnaround time

• For CountryFor Country– attract more companies/touristsattract more companies/tourists– generate more private investmentgenerate more private investment– generate revenue/increase GDPgenerate revenue/increase GDP– more employmentmore employment– more visitor increase spending, multiplier effectsmore visitor increase spending, multiplier effects– new investment approval process new investment approval process


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e-Government Applications Solutionse-Government Applications Solutions

People HubPeople HubPeople HubPeople Hub

EstablishmentEstablishmentHubHub

EstablishmentEstablishmentHubHub

VehicleVehicleHubHub

VehicleVehicleHubHub

IndustryIndustryHubHub

IndustryIndustryHubHub

e-Government Infrastructure Solutione-Government Infrastructure Solutione-Government Infrastructure Solutione-Government Infrastructure Solution

G2BG2BG2BG2B G2C G2C G2C G2C G2GG2GG2GG2G

I n t e r n e tI n t e r n e t I n t r a n e tI n t r a n e t

SearchSearchSearchSearchMy e-GovernmentMy e-GovernmentMy e-GovernmentMy e-Government AuthenticationAuthenticationAuthenticationAuthenticationAlertAlertAlertAlert NewsNewsNewsNews

PORTALCONNECTPORTALCONNECT Portal ServicePortal Service

Application Services / Product & ApplicationsApplication Services / Product & ApplicationsApplication Services / Product & ApplicationsApplication Services / Product & Applications

E-Payment GatewayE-Payment GatewayE-Payment GatewayE-Payment Gateway Report ManagementReport ManagementReport ManagementReport ManagementForms GeneratorForms GeneratorForms GeneratorForms Generator

Workflow SystemWorkflow SystemWorkflow SystemWorkflow System

EMail SystemEMail SystemEMail SystemEMail System

Directory ServicesDirectory ServicesDirectory ServicesDirectory ServicesContent Management SystemContent Management SystemContent Management SystemContent Management System

Language TranslationLanguage TranslationLanguage TranslationLanguage Translation Authentication/SecurityAuthentication/SecurityAuthentication/SecurityAuthentication/SecurityEmailEmailEmailEmailSession ServicesSession ServicesSession ServicesSession Services Data IntegrationData IntegrationData IntegrationData Integration

Document Management SystemDocument Management SystemDocument Management SystemDocument Management System

EE||GGOOVVTT

CCOONNSSUULLTTIINNGG

EE||GGOOVVTT

CCOONNSSUULLTTIINNGG

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e-Government IT Platform Strategye-Government IT Platform Strategy

Intranet Intranet portal portal zonezone

– Database / Exchange Servers

– Application Servers

– Document & Content Management Servers

– FTP Servers

RestricteRestricted zone d zone

– Internet Gateway

– Web Servers

Internet Internet public public zonezone– Intranet Web

Servers– E-mail Web

Servers– Personal

Computers

Key idea: Build a stable, secure, reliable IT Build a stable, secure, reliable IT platformplatform


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ee-Government IT Platform - Planning-Government IT Platform - Planning

> Review of the current Data Center infrastructure need to be done:• Server Consolidation

– Review all the servers that are currently in the data centers

• E-Gov Storage– Consider storage needs for E-Gov applications

• E-Gov Backup– Implementing an e-Gov backup is the next logical step

• E-Gov Applications & Services Continuity– Applications and service continuity is also a consideration,

considering backup data centers

• Network Connectivity• System Monitoring• E-mail

– Streamline Government E-mail system for all departments


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ee-Government IT Platform - Target-Government IT Platform - Target

> The E-Government IT platform must be built in a reliable and secure manner, below is what we recommend for IT Platform:• Two geographically separate data

centre • Disaster Recovery, and government

operations continuity for critical operations and applications

• Physical as well data security, virus and Spam prevention and re-action should be considered in the IT platform development

• Using the extranet (E-Gov Applications/Services) to drive the intranet development

Data center

MBN

Storage&backup

Database Server

Application Server

Web server

Network

PKI SERVER

Firewall

Storage&backup

Backup data center


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Project Proposed Network Infrastructure (Data Project Proposed Network Infrastructure (Data Center)Center)

INTERNET

ITC LAN1~4

IDS IDS

WAN CONNECTION TO OTHER GOVERNMENT

SITES

DNS/Proxy OWA / SMTPWEB / FTP

DMZ

IDS IDS

MANAGEMENT ZONE

Firewall / IDS console

NSMConsole

Anti-virusConsole

File&Print E-Govt AppsAD

APPS ZONE

IDS IDS

ORACLEDATABASE

SQLDATABASE

DB ZONE

Dialup/WAN Router

Core Router

Switch

Tier 1 firewall

VPN concentrator

L3 Core Switch

Tier 2 Firewall

Tier 2 Firewall

Switch Switch SwitchSwitch

BACKUP SERVER

TAPE LIBRARY

INTERNET

ITC LAN1~4

IDS IDS

WAN CONNECTION TO OTHER GOVERNMENT

SITES

DNS/Proxy OWA / SMTPWEB / FTP

DMZ

IDS IDS

MANAGEMENT ZONE

Firewall / IDS console

NSMConsole

Anti-virusConsole

File&Print E-Govt AppsAD

APPS ZONE

IDS IDS

ORACLEDATABASE

SQLDATABASE

DB ZONE

Dialup/WAN Router

Core Router

Switch

Tier 1 firewall

VPN concentrator

L3 Core Switch

Tier 2 Firewall

Tier 2 Firewall

Switch Switch SwitchSwitch

BACKUP SERVER

TAPE LIBRARY

A suitable A suitable Disaster Disaster Recovery Center (DRCRecovery Center (DRC), ), satisfying nodal and satisfying nodal and geographical redundancy.geographical redundancy.

A suitable A suitable Disaster Disaster Recovery Center (DRCRecovery Center (DRC), ), satisfying nodal and satisfying nodal and geographical redundancy.geographical redundancy.


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Proposed Improvement (Data Center Proposed Improvement (Data Center Infrastructure) Infrastructure)

> High availability System• Improved Performance & Resiliency• Scalability• Improved Service Level to users

> Network Security• Network / Host Intrusion Detection System for critical

segments;• 2-tier firewall structure • Remote firewall at each Government site• Segregation of network zones base on functionality

– Public, DMZ, User, Application, Database, management, Intra-Govt

> Network Management• Ease of management and troubleshooting


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e-e-Government Info-communications Government Info-communications Infrastructure (GII)Infrastructure (GII)

> Key concepts:• GII should avoid duplicated investment

• From industry development point of view, should leverage on the development of the GII to be consolidated

• Network connectivity of government offices and data centers

• Deploy e-Gov hubs in remote community centers (connectivity to be built under GII program using suitable technologies such as wireless)

• Introducing Voice and Data convergence to optimize resource utilization and save operational cost


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Project Design Principle for the GII (1/2)Project Design Principle for the GII (1/2)

> Principles: quality of service, reliability and secure

> To build a Broadband Data Backbone for fast switching of Data and Voice traffics. • The choice of Ethernet and IP is based on the domination of IP

traffic due to the Internet and the ease of building software over an IP network.

> To build a data center to accommodate a selection of database, Web, E-mail servers to lay the groundwork for e-Government software applications. • Such choice of equipment shall be heavily dependant on the use

of the government services that will is subject to this project.

> To build a reliable and cost effective voice network. Design of Software to automate work and information flow among government departments firstly, then citizens, businesses and international access.


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Project Design Principle for the GII (2/2)Project Design Principle for the GII (2/2)

> Leverage on current telecom infrastructure when economically so

> In town’s CBD area, interconnect numerous departments by broadband wireless (eg. LMDS) to cut down LL rental cost

> Cabling fiber, UTP lines between buildings in the town

> Wireless LAN can be considered if some buildings/sites are not suitable for cabling

> Long distance data backbone (inter-region) continue to leverage on MW and Optical Fiber Cable

> Build virtual PBXs using reliable ATM/TDM/VoIP technology

> Set up a high performance network core based on advanced router/switch to support convergence of data and multimedia applications

> Through PBX and VoIP devices to provide convenient telephony service


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> Current Status

• Individual departments/offices subscribe standard phone services for voice/fax communications, which amounting to a substantial OPEX

> Solution

• The solution is to use the same GII to carry intra government voice traffic by introducing a PABX system that supports VoIP

> Benefits

• After making use of VoIP technology and GII, the OPEX cost can be greatly reduced

• Advanced voice features could be provided on the PABX to improve productivity

E-Government GII – Voice & Data ConvergenceE-Government GII – Voice & Data Convergence


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E-Government GII – Voice & Data ConvergenceE-Government GII – Voice & Data Convergence

PBX PBXPBX PBX PBX

GII

PSTN

IPIP IP IPIP

e1 e1

Intra Government office voice communication over GIIIntra Government office voice communication over GII


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ContentsContents


> Project Business Case StudiesProject Business Case Studies


> Summary


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e-Gov Project Benefits Analysise-Gov Project Benefits Analysis

Citizen

Business

Government

Social Benefit

Economic Benefit


- 30 -

e-Gov Project e-Gov Project Social Benefits Social Benefits

> Internal Benefits • Increasing government efficiency • Developing government image• Improve government staff ability and productivity• Data security• Internal communication with online tools

> External Benefits • Convenience to citizens and visitors• Serving the citizen conveniently, 24x7 access to government

system without any time limit• Improving quality of life• Narrowing “digital divide”• Contribution to increased GDP and creation of new skills based

employment


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e-Gov Project e-Gov Project Economic BenefitsEconomic Benefits

> e-Gov Project Direct Economic benefits• Reduce internal administrative expenses• Capturing lost income• Reduction in annual telecom expenses• More … …

> e-Gov Project benefit to GDP growth• Benefit to related industry, with indirect positive impact to other

related service sectors• Creating new industry/service activities in ICT domain: trading,

support, service and training• Facilitate foreign investments and export thus advancing the

total economical activities


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e-Gov Project Business Case - Examplee-Gov Project Business Case - Example

• Financial Analysis: Key ValueFinancial Analysis: Key Value

> Application• 5 applications

• Voice Communication Improvement

> Total Cost: 29,625K$• Total CAPEX: 20,000K$• Total OPEX: 9,625K$

> Total Benefits: 81,894K$81,894K$

> NPV: 27,578K$ **27,578K$ **

> IRR: 38.52%38.52%

> Payback Period: 4 years4 years

> Time to Positive Cash Flow: 1 year**: Discount Rate is 12% PA


- 33 -

Payback Time of Asia Pacific country E-Gov Project

-$30,000,000

-$20,000,000

-$10,000,000

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012

Total Cost

Total Benefit

Cum NCF

e-Gov Project Business Case - Examplee-Gov Project Business Case - ExampleFinancial Analysis: Payback Time and Cumulated Net Cash Financial Analysis: Payback Time and Cumulated Net Cash FlowFlow


- 34 -

e-Gov Project Business Case - Examplee-Gov Project Business Case - ExampleFinancial Analysis: Sensitivity Analysis Financial Analysis: Sensitivity Analysis 11/2/2

Sensitivity Analysis(Cumulated NCF) of Asia Pacificcountry e-Gov Project

-$30,000,000

-$20,000,000

-$10,000,000

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012

OPEX+

Revenue-

Initial Value


- 35 -

e-Gov Project Business Case - Example e-Gov Project Business Case - Example Financial Analysis: Sensitivity Analysis 2/2Financial Analysis: Sensitivity Analysis 2/2

> Even if we err on the wrong side, the results are acceptable:

• OPEX+ (increased by 30%)-- NPV: 25.5 MUSD, IRR: 27.1%

• Revenue- (reduced by 30%)--Revenue- (reduced by 30%)-- NPV: 11.3 MUSD, IRR: 22.9%NPV: 11.3 MUSD, IRR: 22.9%

> All payback periods remain within 5 years.

> Conclusion:Conclusion: The project is highly viable withThe project is highly viable with• NPV: NPV: 27.5 million USD27.5 million USD; IRR: ; IRR: 38.5%38.5%


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e-Gov Project Business Case - Example e-Gov Project Business Case - Example – Benefit to Investment 1/2– Benefit to Investment 1/2

Increased Investment(in total INV) from eGov

0100000200000300000400000500000600000700000800000900000

1000000

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011

(000$)

Increased Investment Yearly


- 37 -

Percentage of Total Investment/GDP after eGov

0%

5%

10%

15%

20%

25%

30%

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011

e-Gov Project Business Case - Example e-Gov Project Business Case - Example – Benefit to Investment 2/2– Benefit to Investment 2/2


- 38 -

e-Gov Project Business Case – Examplee-Gov Project Business Case – Example– Benefit to Export 1/2– Benefit to Export 1/2

Increased Export(in total EXP) from eGov Project

0

500000

1000000

1500000

2000000

2500000

3000000

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011

(000$)

Increased Export


- 39 -

e-Gov Project Business Case – Examplee-Gov Project Business Case – Example – Benefit to Export 2/2– Benefit to Export 2/2

Percentage of Export/GDP after eGov Project

0%

10%

20%

30%

40%

50%

60%

70%

80%

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011


- 40 -

e-Gov Project Business Case – Examplee-Gov Project Business Case – Example – Benefit to employment (1/2)– Benefit to employment (1/2)

Increased Opportunity for employment from eGov

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011

(Post)

0%

2%

4%

6%

8%

10%

Percentage of increased employment opportunity/Total Labor


- 41 -

> Improving of job quality• IT does not make existing civil servants redundant• It only frees up them from routine, mundane tasks • Allow them to be trained for mastering better skills and to

tackle higher value-add tasks• Provide them an alternative career perspectives in the

private sector once they have mastered good IT skills

> Attract and retain IT talents

e-Gov Project Business Case – Example e-Gov Project Business Case – Example – Benefit to employment (2/2)– Benefit to employment (2/2)


- 42 -

> e-Gov Project Direct Benefits to IT Industry• Create IT consumable wholesale and Retail Industry, such as: PC ,

software, etc.• Create IT training service industry, furthermore the training service also

can be exported to other countries.• Creating more job opportunities in IT sectors. • Create a call center service industry which could be further developed

to reap economic benefits from catering to the markets such as Australian and New Zealand and beyond. This is feasible because of the maturity of the information and communication technology and the decline in the cost of such technology.

• Create a software service industry which could be further groomed to reap economic benefits from catering to the regional markets. This is feasible because software services is relatively easy to be exported.

> e-Gov Project Indirect Benefits to IT Industry• Improve the IT literacy and competency to support and sustain

economic growth in the IT related sectors.

E-Gov Project Benefit to IT IndustryE-Gov Project Benefit to IT Industry


- 43 -

ContentsContents



> Alcatel’s Integration CapacityAlcatel’s Integration Capacity

> Summary


- 44 -

PlanningPlanning Business and TechnicalBusiness and Technical

Deploy & IntegrateDeploy & IntegrateBuild - IntegrationBuild - Integration

Installation - CommissioningInstallation - Commissioning

Operate &Operate &MaintainMaintain

Managed ServicesManaged Services

Design &Design &EngineeringEngineering

Full ServiceFull ServiceTurnkey

Broadband

Alcatel’s Turnkey Services...Alcatel’s Turnkey Services...

> Turnkey service can help…


- 45 -

ServicesServices

Integrated, multi-vendor, communication solutionsIntegrated, multi-vendor, communication solutions

ApplicationsApplicationsInfrastructureInfrastructure

Alcatel offer Alcatel offer e-Gov Project Integration Capacitye-Gov Project Integration Capacity

• Engineering• Procurement• Integration• Installation• Maintenance• Project

Management

• Engineering• Procurement• Integration• Installation• Maintenance• Project

Management

• ASB• Third Parties• ASB• Third Parties

• ASB• Third Parties• ASB• Third Parties

Complete SolutionComplete Solution

ASB offers e-Gov project integrator & Engineering ServicesASB offers e-Gov project integrator & Engineering ServicesASB offers e-Gov project integrator & Engineering ServicesASB offers e-Gov project integrator & Engineering Services


- 46 -

Partnership with NCS: A leader for e-Partnership with NCS: A leader for e-Government Government

Nurturing Public Service Innovation

Thought Leadership & Research in eGovernment


- 47 -

Sri Lankan eGovernment Blueprint

Thailand eCitizen Portal Blueprint

Hong Kong SAR Government Agencies’ IT Masterplan

Singapore Intelligent Island : IT2000 Masterplan

Mauritius Government IT Plan

Malaysia’s Sarawak State Government IT planning

Broadband Infrastructure for Government, Singapore

Singapore Government – Public Service Infrastructure

E-Government & Government ICT PlanningE-Government & Government ICT Planning


- 48 -

> Status of e-Govt initiatives in 9 Asian economies: Brunei, China, Hong Kong, India, S Korea, Malaysia, Singapore, Taiwan & Thailand

> Scope of coverage: vision, strategies, plans, maturity indicators, programmes, etc.

> Sharing new perspectives, insights & leading practices on e-Government

> Published by Times Media (August 2003)

““e-Government in Asia” booke-Government in Asia” book


- 49 -

ContentsContents




> SummarySummary


- 50 -

ASB e-Gov Project’s ValueASB e-Gov Project’s Value

ICT technology leader

Alcatel’s Products and solutions has global competitiveness in Government networks

Global Experience

Deep understanding and long-term participation and experience on E-Government and City informatization

Consulting

Provide professional e-Gov project Strategy & Planning consultation

Full range of services

The capability to be your prime contractor for full turnkey deployments


- 51 -

SummarySummary

> Both economic and technical analysis show that Asia Pacific Country’s e-government project is feasible, with strong social and economy benefits:

> Creating higher efficiency

> Offering a versatile variety of services

> Reduce cost and capturing a significant range of lost income

www.alcatel-sbell.com.cn

Thank You!

Next StepsNext Steps

2005-1-27


- 54 -

Next steps (1):Next steps (1):

> During the planning stages, Alcatel could offer a series of professional services in the planning of City’s E-Government program covering:

> (1) Methodology:– E-Government planning methodology and process

• This is to ensure a proper approach and process in developing an E-Government program drawing on the lessons and experiences from other similar planning Alcatel had done.


- 55 -

Next Steps (2)Next Steps (2)

• (2) Assessment:– Application requirement assessment– IT infrastructure assessment– Government network infrastructure assessment

• This is to get an overall understanding of the total needs of government applications, and identify priority applications according to a criteria set by the government

• Also, to understand the existing infrastructure that could be re-used, or upgraded to fit the needs of new applications


- 56 -


• (3) Planning– Applications development and rollout planning– IT platform upgrade and development planning– Government network development planning– Overall costing and budget estimate

• In this phase of the service, we determine a initial set of applications as a starting point. Use the applications to drive the definition of the rest of the infrastructure development.

• We will make a high level design of the necessary applications support architecture, and the new IT platform, government network connectivity;

• In order to arrive at a basic cost structure


- 57 -


• (4) Feasibility– Quantify the measurable benefits of the e-government

applications, and relate that to the cost of the project;– In order to derive the overall return on investment, and cash

flow as well as sensitivity analysis. – Analysis of the direct benefits and impact to GDP growth to

the economy


- 58 -


> During project implementation stages:• Alcatel could provide full turn-key responsibility to

conduct the detail system design, implementation, project management, training;

• As well as providing professional service on– E-Governance (methodology in managing the successful

rollout of E-services, and adapt the internal process and organization to use the new IT infrastructure)

– Skills transfer (to ensure City local personnel could sustain the future development without dependency on Alcatel

E-Gov Economical ImpactE-Gov Economical Impact

2004-7-25


- 60 -

Question:Question:

> Additional information on benefits of such project to our country’s economy in terms of GDP growth is required to ensure that government in supporting the project is fully aware of the economic benefits that will accrue in implementing that project vis-à-vis the cost of financing it. A table detailing cash flows/savings as well as projected increase in GDP once the project is up and running would be appreciated.


- 61 -

AnswersAnswers

> We wish to answer this question in two parts:

> Firstly in the Project’s own financial viability• For this point, the current Feasibility Report has provided

an analysis on cash flow, vs direct benefits from the project, estimated internal rate of return for the total investment

• A summary is re-captured here in

> Impact to GDP growth• This is harder to assess, but we will make some attempts

here• And elaborate how we are going to estimate this


- 62 -

Project’s viability on its ownProject’s viability on its own

> As presented in Section 6 of the Feasibility Report with details in Appendix 2:

> The project is highly viable with a Net Present Value (NPV) of $11.2M, benefit/cost ratio of 1.5:1, and achieving an Internal Rate of Return (IRR) of 14.62%.

> Taking some sensitivity analysis into consideration, even the total cost is increased by 10%, the IRR can still stay at 11.37%.

> On the other hand, if the total benefit decreased by 10%, the IRR can hold at 8.20%.

> For details, please refer to the Feasibility Report


- 63 -

Impact to GDP GrowthImpact to GDP Growth

> There are many factors contributing to or affecting the GDP growth

> In essence, the overall impact to the economy by an E-Gov investment is like that by many other infrastructure investment such as airport, railways, roads, etc. The impact are primarily in the following three aspects:• Improving productivity to multiple other sectors• Creating new industry/service activities in its own domain• Attract foreign investments thus increasing the total

economical activities


- 64 -

Improving productivity to multiple other sectorsImproving productivity to multiple other sectors

> We have identified the following sectors being the major GDP generation sectors in the country:• Agriculture, Forestry and Fishing Sector• Wholesale and Retail Trade Sector• Community and Social Services Sector• Finance and Insurance Sector• Manufacturing Sector • Transport, Storage and Communication Sector

> By drawing upon experiences and modeling in other countries and regions, we will see if we could formulate a quantitative assessment on the impact of E-Gov to the above sectors

> But, this will take a lot of time and need to collect a lot of information on various industry sectors


- 65 -

Creating new industry/service activities in its Creating new industry/service activities in its own domainown domain> The direct impact of the E-Gov investment is to

creation of relevant supporting industry in Information Communications Technologies

> These include but not limited to:• ICT consulting, planning, architecting (including export to

regional countries)• Software applications planning, design, development,

customization, upgrading and maintenance (export possible)

• IT education and training (Export possible)• IT supply and reselling (Export/trading possible)• Equipment and facilities maintenance

> Again, based on the references and benchmarks elsewhere, we could formulate an assessment for the country


- 66 -

Attract foreign investmentsAttract foreign investments

> There are many factors together collectively help to increase the competitiveness of the country as a hub for the region and to attract foreign investments, such as:• Social and political stability• Legal system and transparency• Transportation, logistics, infocommunications• Financial services (banking, insurances)• Utility (power, gas, water)

> E-Government could only play a relatively small role in this aspects. It would harder to attribute improvement of foreign investment due to E-Gov


- 67 -

SummarySummary

> In summary, we are of the opinion that • The project is on its own a viable investment based on

direct benefits• The quantification on the impact to GDP would help

further recognizing the potential strategic value of the project, but

• The GDP growth also depends on many other factors not related to ICT and E-Government. It could be primarily set by the overall macro economic conditions for the country, the Region, even the global economy as a whole

E-Gov Operational ModelE-Gov Operational Model

2004-7-15


- 69 -

ContentsContents

> E-Government Operational Models in other countries

> Discussion and proposal for the E-Government operational model


- 70 -

SingaporeSingapore

> Early development stages – 1981-1996• National Computer Board (NCB) as the IT agency under

the Ministry of Finance• Master planning, architect, tender spec, project delivering,

user training, customization• Nearly 80% of NCB staff were seconded to

ministries/departments

> Major development stage – 1996-2000• Privatization of the operational arm of NCB to form NCS• NCB mission focused on policy and promotions• Dec 1999 merger of NCB with Telecom Authority of

Singapore (TAS) to form a single ICT agency – Infocomm Development Authority (IDA)


- 71 -

Singapore (cont.)Singapore (cont.)

> Major development stage – 1996-2000 (cont.)• Operational model being:

– MoF controls budget allocation to ministries/departments for E-Gov spending

– IDA acts as CIO, regulatory, program/project management– Provide sectors takes government contracts to execute,

deploy and maintain E-Gov infrastructure and applications

> Mature stage – 2000-2003• E-Government Action Plan I – S$1.5B for 3 yrs • Operational model remained the same

> Future development – 2003-2006• E-Government Action Plan II – S$1.3B for 3 years• Operational model likely remain the same


- 72 -


eGov Advisory Panel

>E-Government operational model Ministry of Finance

eGov Policy Comm.(eGPC)

InfocommDevelopment

Authority (IDA)

- Chaired by the Head of Civil Service and comprises Permanent Secretaries of Ministries

- Chaired by the Head of Civil Service and comprises representatives from private and public sectors to help steer e-Government effort

- CIOs engaged to various ministries


- 73 -


> Comments on Singapore’s E-Government operational model• MoF having the final say, could ensure that all

government departments/agencies will be using the common infrastructure, policy and framework as set by IDA,

• to minimize duplication of efforts & investment.• IDA, as the competence centre, acts as project manager

to help MoF in managing E-Government initiatives and also as CIO to the entire government


- 74 -

Comparison of Government-wide CIO Office

Singapore UK Ireland USA

Commonw ealth NSW QLD Federal OntarioWashington

State

Name of CIO or nearest equivalent

AGIMOOffice of

Information Technology

Information Economy

Infrastructure Unit

CIO Branch Corporate CIOGovernment

CIOe-Envoy REACH

Department of Information Services

Status of office

ExecutiveAgency

Business unit of department




Unit of statutory

agency, IDA



Department

Cabinet Committee

None ICT: external and internal

Not Available Internal Admin Internal Admin none none Info SocietyCIO sits in Governor's

Cabinet

High level steerage of agenda

ICT Committee of secretaries


Committee of secretaries - not just ICT




ICT Board of deputy

secretaries


Statutory Board

CIO membership of steerage committee

Member Not Available NoneConvenor and

secretariatMember and secretariat

None - Finance acts as

Secretariat

Convenes Board

noneMember and secretariat

Hierarchy level

Betw een Sec and Deputy Secretary

Deputy Secretary

Deputy Secretary

Deputy Secretary

Deputy Secretary

One below deputy

secretary

Deputy Secretary

Deputy Secretary

Secretary

Appointed By Minister Secretary Secretary PM (exec order) not available not available PM Secretary Governor

Reports to Minister Secretary Secretary Secretary not availableHead of IDA

and secretary of Finance

Head of Civil Service

Secretary Governor

Link to Dept CIOs

Peer Peer PeerPeer plus

assessmentdual reporting

Peer plus assessment

Peer Peer Peer

Role in eGov Yes Yes Yes Yes Yes Yes Yes None Yes

Australia Canada


- 75 -

ContentsContents

> E-Government Operational Models in other countries

> Discussion and proposal for the country’s E-Government operational model


- 76 -

PrioritiesPriorities

> Bringing Government ICT infrastructure up to-date in order to be able to roll out a critical mass of E-Government applications and services

> To build a sufficiently large ICT planning, architecture and project management competence and skills

> To stimulate the set-up in the private sector ICT business


- 77 -

E-Government Operational ModelE-Government Operational Model

> Leverage on current competence and organizational structure of XYZ unit within MoF

> Complement that with telecom infrastructure investment as a supporting means

> For better coordination, a new agency for Infocomm development could be envisaged under the Ministry of Communications.• Comprising XYZ and led by a more aggressive and

forward looking leadership (? How to ensure strong backing from MoF)

• Leaving current telecom department for telecom regulations matters only


- 78 -

E-Government Operational Model (cont.)E-Government Operational Model (cont.)

> The drawbacks of assigning the telecom operator to develop the entire ICT infrastructure for E-Government• Lack of IT and government applications competence• Harder to convince all government departments/agencies

to follow the same approach, platforms and policies• Re-enforcing monopoly resulting in

– Less efficiency (due to lack of competition)– higher cost to the government operations, thus hindering

return on investment from government point of view

www.alcatel-sbell.com.cn

an apac country e-government project alcatel shanghai bell 25 jan, 2005

Documents

government government

government development

chinese government slide

business government

platform slide

egov development

platform egov applications

alcatel meeting