UNNExT Capacity Building Workshop on Single Window Planning and Implementation Module 4 – SW architecture-based Imple

1. Supported by UNNExT Capacity Building Workshop on Single Window Planning and ImplementationModule 4 – SW architecture-based Implementation Framework (SWIF) Authored byDr. Somnuk KerethoUNNExT Advisory CommitteeDirector, Institute for IT InnovationKasetsart Universitysk@ku-inova.org 14-15 December 2011Palais des Nations, Geneva

2. After a strategic vision/goals, and the overall roadmap (including more detailed goals/targets) have been discussed, we need to have an appropriate methodology to systematically guide the implementation of these vision & goals/targets into reality. SWIF – an architecture-based implementation framework is proposed here for systematically addressing key components and issues that need to be analyzed, planned and implemented such that the vision/goals can be realized.

3. The Objectives of this module • To propose a holistic architecture-based concept, called SW Implementation Framework (SWIF), for guiding the planning and implementation of SW projects, including • Architecture principles – Decomposition, Viewpoints, and Blueprints (diagrams and/or clear descriptions) • Decomposition of SW challenges into smaller and easier manageable components (10 key components are proposed.) • SW Development Cycles The framework and its development cycles discussed in this module provide the essential concepts and key components to be addressed in the SW project analysis,planning and implementation phases (which will be explained the following modules).

4. Why a holistic and systematic framework is needed? Because there are so many challenges to be tackledto transform this Vision into Reality. Vision Many Document Requirements e.g. of APEC member economies25% better, faster, cheaper trading across border* within 5 years(2011-2015) Complicated Trade Procedures Laws and Regulations Many Stakeholders Connectivity withinthe country Reality Conflict of Interest Compliance Standards achieving trade transaction cost and time reduction goals Many different ICT systems Governance Difficulty in trade data exchange Regional Connectivity Change Management Lack of Understanding People and Business In-Readiness Inadequacy in Technology Infrastructure Barriers in Interoperability System Development * Referring to World Bank’s Index (www.doingbusiness.org)

5. What is SWIF? • SWIF is a systematic architecture-based framework* for guiding the Single Window Planning and Implementation into reality. • SWIF adapts the concept of enterprise architecture and development methodology** to describe approaches on how to • systematically derive the SW strategic architecture, • formulate its master plan, and • guide the implementation of SW projects. * Authored by Eveline van Stijn, ThayananPhuaphanthong, SomnukKeretho, Markus Pikart, WoutHofman, and Yao-Hua Tan, “Single Window Implementation Framework (SWIF),“Free University Amsterdam, Kasetsart University Bangkok, UNECE and published as an EU-supported ITAIDE D5.0:4b deliverable. ** Adapted from An Enterprise Architecture Framework, called TOGAF-9.

6. Key Concepts and Guidelines within SWIF • Visions & Goals Alignment – formulating SW visions and goals, where possible with quantitative indicators, but by aligning also with national and/or regional policy directions. • Decomposition - systematically decomposing and structuring SW implementation challenges into smaller and easier manageable components(10 components are proposed here). • Iterative Development Cycle – “as-is” or current conditions of those 10 components should be analyzed, and then “to-be” or future architectures (again of those 10 components) need to be developed and agreed(normally many iterations needed before we can really agree). • Viewpoints – showing the same thing but with a different level of details based on the interest of target audiences (normally with diagrams). • Stepwise activities for analysis, planning and overseeing the SW projects (by walking through those 10 components iteratively).

7. 1. SW Visions & Goalsmust be aligned with national and/or regional economic policy directions, and quantitative indicators should be identified where possible. National SW vision, goals and planning should be integrated as a part of related national/regional development agenda, e.g. aligning with national trade facilitation and logistics initiatives. Vision: Enhancing national trade competitiveness by improving import/export procedures and documentation handlings Quantitative Goals: 25% better, faster, and cheaper in trading across borders* within 5 years** ** An example from APEC Vision & Goals for 2011-2015. Page7 UNNExT Workshop on SW Planning and Implementation, 14-15 December 2011, Geneva

8. Thai Case Example Vision Towards A World-class National Logistics Environmentto become a Trade Hub for Indochina Objectives • Reducing logistics cost (Cost Efficiency), increase business Responsiveness, Reliability and Security • Create Value-Added on logistics industry and related business Improve Logistics efficiency in industry Strategic Agenda Improve efficiency in transport and logistics BuildLogisticsServiceProviders Business EnhanceTradeFacilitation BuildHuman Resources in Logistics 1 2 3 4 5 National Single Window (e-Logistics) National Logistics Development Master Plan (2007 -2011)endorsed by the Thai Cabinet on Feb 2007 To reduce the trade logistics costfrom 19% (2007) to 16% (2011)(comparing to GDP) High-level Master Plan to develop data exchange platform among different government agencies and business related to import/export procedures

9. Thai Case Example ~ 24days *(World Bank 2006) ~350 data items andno travel needed National SingleWindow To reduce time used on document procedures Exporter AndImporter Data Harmonization Carriers & LSP 36 GovernmentAgencies Single entry process Less than 10 Days Thailand Vision: from multiple windows to Single Window (Regulatory SW)(since Paperless Customs has already been developed.) • One day delay costs 1% reduction in export value(World Bank, 2006) • Direct and indirect costs incurred in documentary process account for 1-15 % of finished goods (OECD, 2003) Impact to economy

10. Systematically decomposing and structuring SW implementation challenges into smaller and easier manageable components (10 components are proposed here). 2. Decomposition Page10 UNNExT Workshop on SW Planning and Implementation, 14-15 December 2011, Geneva

11. Complexity of Single Window can be handled by decomposing its challenges into smaller and more manageable sub-components. Decomposing the SW challenges into ten key components There are a lot of challenges to be tackled. 1. Stakeholders’ needs and requirements Vision Many Document Requirements 2. Single Window Visionand Political Will 3. Stakeholders Collaboration e.g. APEC-Thailand,Chinese Taipei:25% better, faster, cheaper trading across border* within 5 years Complicated Trade Procedures Laws and Regulations Many Stakeholders Connectivity withinthe country Reality 6. Service Functions(ApplicationsArchitecture) 4. BusinessProcessAnalysis 7. Technical Standards and Interoperability 5. Data HarmonizationandDocuments Conflict of Interest Compliance achieving trade transaction cost and time reduction goals Many different ICT systems Governance Difficulty in trade data exchange Change Management Regional Connectivity 9. Business Models,Financial Issues and Governance 8. Legal Infrastructure 10. IT Infrastructure and IT Solutions People and Business In-Readiness Inadequacy in Technology Infrastructure Barriers in Interoperability System Development timeline From the “As-Is”conditions (architectures) of all these components Migrating to the target “To-Be” architecturesof all these 10 components * Referring to World Bank’s Index (www.doingbusiness.org)

12. 3. Iterative Development Cycles The “as-is” or current conditions of these 10 components must be analyzed, and then the target or “to-be” architectures (again of these 10 components)need to be developed and agreed. Normally many iterations of the above activities are needed before we can politically, organizationally and financially agree on the “to-be” architectures before we make any commitments to implement.

13. SW Development CycleKey Compenents that need to be analyzed, planned, coordinated and/or implemented. 0. Preliminary 2. SWVision 9. Finance and Governance 10. IT Infrastructure and Solutions 3. StakeholderCollaboration 1. Stakeholders’ RequirementsManagement 4. Business Process 8. Legal Infrastructure 5. Data Harmonization 7. Interoperability and Standards 6. Application Architecture Note that the above development cycles are normally conducted in several iterations.For example, the whole cycle can be revisited during the feasibility analysis phase, and again the whole cycle during the planning phase, and during the implementation phase, etc.

14. Understand the “As-Is” and propose the “To-Be” of these 10 Key Components • Stakeholders’ Needs and Requirements • SW Vision and Political Will • Stakeholders Collaboration Platform • Business Process Analysis and Improvement • Data Harmonization and Document Architecture • Service Functions/Applications Architecture • Technical Standards and Interoperability • Legal Infrastructure • Business Models, Financial Issues & Governance • IT Infrastructure & Technical Architecture

15. Thai Case Example Master Sea Cargo Manifest(17) House Sea Cargo Manifest (37) Export Declaration (75,39) Good Transition Control List (22,3) Application for Permission to Export Rice (KP. 2) Sales Report (KP 3) (21) Application for the Collection of the Permit for the Export of Rice (A. 3) Permit for the Export of Rice (A. 4) (32) Application for Certificate of Standards of Product (MS. 13/1) (44) Certificate of Analysis (17) Certificate of Product Standards (MS. 24/1) (45) Certificate of Fumigation (21) Application for Phytosanitary Certificate (PQ. 7) (29) Phytosanitary Certificate (34) Application for Certificate of Origin Certificate of Origin (38) Proforma Invoice (35) Purchase Order (39) Commercial Invoice (50) Application for Letter of Credit (24) Letter of Credit (32) Packing List (25) Cargo Insurance Application Form (20) Cover Note (23) Insurance Policy (24) Booking Request Form – Border Crossing (24) Booking Confirmation – Border Crossing (31) Booking Request Form – Inland Transport (16) Booking Confirmation – Inland Transport (18) Bill of Lading (40) Empty Container Movement Request (TKT 305) (19) Request for Port Entry (TKT 308.2) (27) Equipment Interchange Report (EIR) (24) Container Loading List (18) Container List Message (32) Outward Container List (34) “As-Is” Documents related to Exportation of Rice(from purchase order until the cargo container leaving the sea port) 36 Documents involving 15 parties, and more than 700 data elements to be filled in Only few of these documents are in electronic format * Number in parenthesis is the no. of data elements

16. Day 20 4 days 16 15 14 1 day 3 days 13 12 10 1 day 1 day 11 2 days 10 6 7 8 9 4 5 3 days 5 2 days 3 2 2 days 1 0 Process 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1. Buy - Conclude sales contract and trade terms 2. Obtain export permit 3. Arrange transport 4. Arrange the inspection and fumigation 5. Obtain cargo insurance 6. Provide customs declaration 7. Collect empty container(s) from yard 8. Stuff container(s) 9. Transfer to port of departure 10. Clear goods through customs 11. Handle container at terminal and stow on vessel 12. Prepare documents required by importer 13. Verify the accuracy/authenticity of exported cargo 14. Pay - Claim payment of goods ”As-Is” Business Process - Exporting Jasmine Rice from Thailand - 16 days required for procedures & documents handling Time-Procedure Chart

17. An architect uses different diagrams to explain about the same building, e.g.one diagram showing the interior design to communicate with normal users, one diagram showing concrete structures to be used by civil engineers, one diagram showing wiring for electrical technicians, etc. 4. ViewpointsViewpoints are diagrams (sometimes called blueprints) along with verbal/written descriptions for explaining the same topic but with different levels of details based on the interest of the target audience Likewise, several detailed levels of diagrams and descriptions should be used to communicate about SW components but each suitable for different target audiences (e.g. viewpoints/diagrams suitable for high-level policy makers, policy managers, business operators, and technical IT staffs)

18. Thai Case Example Exporter “As-Is“Application Architecture in 2007 - Declaration- Invoice- Packing List New Generation of EDI (ebXML MS/XML Messages/Digital Singnatures) About 80% of required documents arephysical papers not electronic papers yet. Separate ICT islands Paperless Customs Declaration and Clearance Customs Dept Server Browser (Request for C/O) Web-Based Application (Certificate of Origin) Dept of Foreign Trade Browser(Request for Health Cert.) except Shrimp (Request from Dept of Fisheries) Web-Based Application(Health Certificate) Dept of Livestock Development Many Paper Documents Web-Based Application(Health Certificate) Dept of Fisheries Paper Handling and/or Web-Based Application(Bill of Lading) Carriers or other logistics service providers

19. Thai Case Example Exporter A Conceptual Architecture ofthe “To-Be” National Single Window Now, technical interoperability standard (e.g. based on ebXML MS) is needed, and common definitions of data elements, and semantic data structures (common data models) among different documents required by different organizations are required also. Paperless Customs Declaration and Clearance Customs Dept 36 RegulatoryAgencies National Single Window Web-Services (ebXML) Application (Certificate of Origin) Dept of Foreign Trade Goal -Single Window/e-DocumentsOne time submission for each data element but multiple usage for different purposes on different ICT platforms Web-Services (ebXML) Application(Health Certificate) Dept of Livestock Development Web-Services (ebXML) Application(Health Certificate) Dept of Fisheries Web-Services Applications (e.g. Bill of Lading, and other documents) Carriers or other logistics service providers

20. “To-Be” Thailand SW Architecture A Case Example Governance Mechanism – policy decision, service charge regulation, service level agreement etc. 2 Value-Added Service Providers 6 5 1 3 36 Government and facilitating Agencies Private Sector &Transport Agencies e-Document Exchange Hub for Cross-boarder Trade and Transport Importer/ Exporter VAS Customs Dept ebMS National Single Window (NSW) By CustomsDepartment Carrier VAS Dept. of Foreign Trade ebMS Custom Broker/ Freight Forwarder VAS Dept. of Fisheries ebMS Ship Agent, Airlines Agent VAS Dept. of Disease Control ebMS Value-Added Servicesfor Single Window Entryand Business ProcessManagement Other Logistics Service Providers Port Authority Of Thailand ebMS Bank and Insurance Port/Airport ebMS ICT National Infrastructure and related IT Laws responsible by Ministry of ICT Other agencies Other Business Parties 4 VAS Gateway Process Re-design & Data Harmonization Process Re-design & Data Harmonization VAS Gateway VAS Gateway 7 7

21. Thai Case Example ”As-Is” Regulatory Business Processand Documentations for Exporting Jasmine Rice 5 regulatory agenciesand 17 different documentsare required(not counting those requiredby other businessentities, e.g.banks,transporters, logisticsproviders) Problems : - Duplicated Information & multiple physical visits to different locations - High Cost and Time for sending and receiving documents - Possible Data Inconsistency

22. Thai Case Exampleexporting rice ”To-Be” Data Harmonizationto harmonize for the common-meaning data elements among different documents Data Harmonization 180 180 common data elementsamong these 17 documents

23. Thai Case Example Example – Exchanged Documents Rice Quality Certificate By The Thai Chamber of Commerce Permit for the export of rice by Department of Foreign Trade

24. Example – Defining data element names and definitions for 2 documents by comparing with International Standards 2 documents about exportation of rice

25. Thai Case Example ”To-Be” Data Harmonization and”To-Be” Business Process (Improvement) • As-Is • 429 data elements to be filled in different physical documents • Multiple submissions of identical data • Multiple visits to government agencies (to submit and collect documents as well as to report actual quantity of goods exported) • To-Be • 180 data elements to be filled in electronically • No repetitive submission of identical data • No physical visit • Electronic data cross-checking between controlling agencies • Electronic data sharing between controlling agencies

26. Thai Case Example Laws and Regulation • Electronic Transaction Act* (2001, 2008)(legalizing electronic documents and transactions) • Royal Decrees on e-Government Implementation (2006) • Decrees and Guides on Secured e-Transaction (2010) (based on ISO 27001) • Regulations on Paper Digitization (2010), etc • Each government department still needs some regulations for officials and business users to use e-document submissions and paperless systems, e.g. as officially mandated by the Director General. * Reference: UNCITRAL Model Law on Electronic Commerce,1996 UNCITRAL Model Law on Electronic Signatures, 2001

27. 5. Stepwise Activities/Phases for planning and overseeing the SW projects by walking through those 10 components iteratively in each phase(to be discussed further in the following modules). Preliminary/Inception Phase – Developing a concept paper for preliminary and initial discussion Elaboration Phase – Conducting detailed feasibility study Planning Phase – Formulating a High-level SW master plan Execution Phase – Executing and overseeing the project plan Lessons-learned/Feedback Phase – Collecting lessons learned

28. Summary • SW Implementation Framework (SWIF) is recommended as a holistic and systematic framework for guiding the planning and implementation of SW projects, including • Decomposition of SW challenges into 10 key components • SW Development Cycles • Step-wise SW project management phases includeinception phase, detailed feasibility phase, planning phase, implementation oversight phase, and feedback phase. • In each phase, the 10 key components and associated activities/deliverables in the recommended SW development cycles should be revisited and refined iteratively until the “to-be” architectures of those key components are commonly agreed and committed.