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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

Johannes Kepler University Linz Department of Business Informatics – Information Engineering 1 Business Process Management in E-Government A cooperation

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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 RiedlJohannes Kepler University Linz

Department of Business Informatics – Information Engineering

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Agenda

Problemdescription

Main Issue – internal Focus and/or external Focus

Results of theE-commerce study

Reflection

Differences between non E-government projects and E-government projectsStrategic competitive

approach

From Government Process to Government ProcessImprovement

Process ImprovementApproaches

Conclusion

E-GovernmentProcess Index (EGPI)

AGENDABPM in

E-government02.05.2006 - v7

Strategic BusinessProcess positioning

Strategic e-businesspositioning of notefficiently evaluatedcompanies

Strategic e-businesspositioning of efficiently evaluatedcompanies

Comprehensive approaches

Part of BusinessProcess Improvement Cycle

Technological Impact(Improvement due to Technological Innovations)

External Impact

Focus on SpecificIssues within an Organization

Focus on CrossOrganizational Issues

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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.

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t Main Issue – internal Focus and/or external Focus of processes

operative focus

no focus

dual focus (citizen & operative

oriented)

citizen focus

Inte

rnal

focu

s

external focuslow high

low

high

Strategic positioning of e-business and/or e-government process canbe internal, external or both

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t 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%)

marketfocus

(31%)

Inte

rnal

focu

s

external focuslow high

low

high

Strategic business process positioning of evaluated German companies

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overn

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t 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%)

Inte

rnal

focu

s

external focuslow high

low

high

Strategic e-business positioning of evaluated German companieswhich where not efficiently evaluated

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overn

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t 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%)

marketfocus(35%)

Inte

rnal

focu

s

external focuslow high

low

high

Strategic e-business positioning of evaluated German companieswhich where efficiently evaluated

From our point of knowledge

we have no similar studies

In E-government processes.

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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.

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t 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.

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

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t 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.

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t 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.

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t Strategic competitive approach of E-Government Projects

E-GovernmentProjects

(Costing leader)

Competitive advantage

Fie

ld o

f Com

petit

iven

ess

low cost differentiation

clos

ely

wid

e E-BusinessProjects

(differentiation)

E-GovernmentProjects(Costing

Emphasizes)

E-BusinessProjects

(DifferentiationEmphasizes)

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t From GovernmentProcess to GovernmentProcessImprovement

• 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.

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Process Improvement Approaches

Comprehensiveapproaches

Part of BusinessProcess ImprovementCycle

Technological ImpactExternal Impact

Focus on Specific Issues withinan Organization

Focus on CrossOrganizationalIssues

Business ProcessImprovementApproaches

13.04.2006 - v 3

Improvement Framew orks

Process Reference Models

Strategic ManagemenProcess

Process Identification

Process Evaluation

Process Analysis

Process ChangeManagement

Process Controlling

IP/WLAN Communication

Radio FrequencyIdentif ication (RFID)

Service Oriented Architecture

Regulatory Compliance

Auditing, Certif ication

Business Intelligence

Measuring Agility

Business RulesManagement

Complexity Management

Business Integration

Stakeholder Management

Intangible Assets

Supply Chain Management

Business Process Outsourcing(Focus on Core Competences)

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Process Improvement Cycle

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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

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t 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

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t 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)

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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

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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

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t 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

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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

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t An example for designing an E-Gov-BPI-Index

BPI Approach

BPI Approach priority

BPI Approach performance

BPI Approach description

BPI Approach life cyclephase

BPI Approach objectives

BPI Approach comments

BPI Approach experience

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t 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,....

AdoptionCost, FlexibilityHighLow

Phase of Life Cycle

ObjectivesImportancePerformance

AdoptionCost, FlexibilityHighLow

Phase of Life Cycle

ObjectivesImportancePerformance

requires an action The process is in the phase ofAdoption (education, training, roll out);the process has enough potential forthe future

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Contact

Department of Business Informatics – Information EngineeringJohannes Kepler University (JKU) Linz

Altenberger Straße 69 4040 Linz, Austria

Prof. Dr.

Friedrich Roithmayr

[email protected]

Dr.

René Riedl

[email protected]