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Presented by Neels Bothma. MANAGEMENT INFORMATION SYSTEMS. 26 January 2006. What is information? Why do you need information Characteristics of information Information and managers Uptake of information in the new economy Key challenges Information systems Information in organisations

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Management information systems l.jpg

Presented by

Neels Bothma

MANAGEMENT INFORMATION SYSTEMS

26 January 2006


Topics for the day l.jpg

What is information?

Why do you need information

Characteristics of information

Information and managers

Uptake of information in the new economy

Key challenges

Information systems

Information in organisations

Information as a key resource

Nature of managerial work

Types of information systems

Information systems in functional areas

Effectiveness and efficiency

Groupware, telecomms, networks & protocols

System Development Lifecycle

Project Management

System integration

TOPICS FOR THE DAY


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TOPICS FOR THE DAY

  • The Internet

  • Intranets and Extranets

  • E-commerce

  • B2B and B2C e-commerce

  • Search engines and the role of portals

  • E-government

  • What is e-government

  • E-government services

  • Critical e-government factors

  • Human resources for e-gov

  • Implementing e-government

  • Ethics & information


What is information l.jpg

The word information is derived from Latin informare which means "give form to".

Information can thus be defined as data that has been processed, manipulated and organised in a way suitable for human interpretation and that adds to the knowledge of the person receiving it

Information is usually compiled in response to a specific need and often with the purpose of revealing trends or patterns

WHAT IS INFORMATION?


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Data can be defined as “a collection of facts from which conclusions may be drawn”

Put another way, data are distinct pieces of factual information used as a basis for reasoning; a “given” or fact; a number, a statement, or a picture, discussion, or calculation

Data is the raw material – the input – of information

WHAT IS DATA?


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Knowledge is "a fluid mix of experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information.“

Knowledge can further be described as the awareness and understanding of interconnected details, facts, truths or information gained through experience or learning, which, in isolation, are of lesser value.

In other words, knowledge is about what one knows and understands

WHAT IS KNOWLEDGE?


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Knowledge can be categorised as either unstructured or structured or explicit or tacit.

What one knows one knows is explicit knowledge.

Knowledge that is unstructured and understood, but not clearly expressed is implicit knowledge.

If the knowledge is organised and easy to share then it is called structured knowledge.

To convert implicit knowledge into explicit knowledge, it must be extracted and formatted

WHAT IS KNOWLEDGE…cont?


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Decision-making structured or explicit or tacit.

Problem-solving

Entertainment

Enlightenment

WHY DO PEOPLE NEED INFORMATION?


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Politics structured or explicit or tacit.

Development and control of Information Systems often involves problematic politics

Power

Information affords power which can be problematic

Who owns the system?

Who pays for developing the system?

Who accesses what information?

Who has update privileges?

INFORMATION, POLITICS, AND POWER


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Competition structured or explicit or tacit.

24x7

Global village

Travel

Television

THE UPTAKE OF INFORMATION

Emergence of the global economy


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THE UPTAKE OF INFORMATION structured or explicit or tacit.

Transformation of industrial economies

  • Knowledge- and information-based economies in developed world

  • Knowledge: a central productive and strategic asset

  • High margin and tougher to replicate

  • Marked by time-based competition, shorter product life, and turbulent environment

  • Low-knowledge jobs more commodity-like and mostly fled to LDCs

  • Allows some poorer economies to leapfrog in status (e.g., Finland, India and Ireland)


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THE UPTAKE OF INFORMATION structured or explicit or tacit.

Transformation of industrial economies …cont.


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IT accommodates management in orgs that are: structured or explicit or tacit.

Flattening

Decentralising

Flexible

Location independent

And striving for:

Low transaction and coordination costs; empowerment; collaborative work and teamwork

THE UPTAKE OF INFORMATION

Transformation of the modern enterprise


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THE UPTAKE OF INFORMATION structured or explicit or tacit.

Transformation of the modern enterprise …cont.


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Basically, digital firms use digital networks throughout their processes. Digital networks send digital information across them.

For purposes of understanding what it is to be a digital firm, please consider the following definition from Whatis.com

Prior to digital technology, electronic transmission was limited to analog technology, which conveys data as electronic signals of varying frequency or amplitude that are added to carrier waves of a given frequency. Broadcast and phone transmission has conventionally used analog technology.

Digital technology is primarily used with new physical communications media, such as satellite and fiber optic transmission. A modem is used to convert the digital information in your computer to analog signals for your phone line and to convert analog phone signals to digital information for your computer.

THE UPTAKE OF INFORMATION

Emergence of the digital firm


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Computers their processes. Digital networks send digital information across them.

Networks

Satellites

Telecommunications

Microchip

Nanotechnology

Cellular technology

Internet

THE UPTAKE OF INFORMATION

Convergence of technology


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CHARACTERISTICS OF their processes. Digital networks send digital information across them.USEFUL INFORMATION

For information to be useful, it must be…

  • Relevant

  • Complete

  • Accurate

  • Current

  • Cost effective

    Simple, timely, verifiable, accessible, secure, flexible, reliable


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GENERATING INFORMATION their processes. Digital networks send digital information across them.

Raw data are processed in an IS to create final useful information

  • Process: Manipulation of data

  • Computer-based ISs: process data to produce information


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Systems thinking: their processes. Digital networks send digital information across them.

Viewing organisation in terms of sub-organisations or subsystems

A framework for problem solving and decision making

Managers focus on overall goals and operations of business

INFORMATION AND MANAGERS


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Systems thinking (Cont.) their processes. Digital networks send digital information across them.

Information Map: data and information flow within an organisation

Information Technology: all technologies that facilitate construction and maintenance of information systems

INFORMATION AND MANAGERS…cont.


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THE BENEFITS OF their processes. Digital networks send digital information across them.HUMAN-COMPUTER SYNERGY

  • Synergy: combined resources produce output exceeding the sum of the outputs of the same resources employed separately

  • Translates human thought into efficient processing of large amounts of data


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MANAGEMENT CHALLENGES their processes. Digital networks send digital information across them.

More Service

Faster

Decisions

Informed

Decisions

Better Service


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Reduced Control over Information Resources their processes. Digital networks send digital information across them.

Reduced Budgetary Control

Cost/Benefit Analysis

Scalability

Security

Education

MANAGEMENT CHALLENGESANOTHER VIEW


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Automate their processes. Digital networks send digital information across them.

use IT to do same things

“Informate”

use IT to learn and continuously improve

“Strategimate”

use IT to support organisation’s mission and strategy

Integrate

Use IT to bring organisations together

OUR PERSPECTIVES ABOUT INFORMATION TECHNOLOGY IS CHANGING...


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Increased efficiency their processes. Digital networks send digital information across them.

Decentralisation

Increased accountability

Improved resource management

Marketisation

INFORMATION AGE REFORM


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Technical definition: their processes. Digital networks send digital information across them.

An organized set of interrelated components that collect (or retrieve), transmit, process, store, and distribute information to support decision making, control, analysis and visualization in an organization.

WHAT IS AN INFORMATION SYSTEM?


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Must support the strategic direction of organisation their processes. Digital networks send digital information across them.

Must allow access to a broad group of users

Must enhance organisational learning

Must do in a cost-effective manner

REFINED OBJECTIVES OF INFORMATION SYSTEMS


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System their processes. Digital networks send digital information across them.: A set of components that work together to achieve a common goal

Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal

Closed system: Stand-alone system that has no contact with other systems

Open system: System that interfaces with other systems

WHAT IS A SYSTEM?


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SYSTEMS AND SUBSYSTEMS their processes. Digital networks send digital information across them.


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Process their processes. Digital networks send digital information across them.

Redesign

Capabilities

of

Information

Systems

Organizational

Results

WE NEED TO EXPLOIT INFORMATION SYSTEMS TO PRODUCE RESULTS

  • Increased Productivity

  • Improved quality

  • Greater citizen satisfaction

  • Improved decision making

  • Quicker response

  • Better communication and coordination

  • Enhanced goodwill of employees


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KEYS TO SUCCESS their processes. Digital networks send digital information across them.

People

Technology

INFORMATION

Organization

Strategy


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Fast and accurate data processing with large-capacity storage and rapid communication between sites

Instantaneous access to information

Means of coordination

Boundary spanning

Support for decision making

CAPABILITIES OF INFORMATION SYSTEMS


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Supporting organizational memory and learning storage and rapid communication between sites

Routinising organisational practice

Differentiation of services

Modeling

Automation

CAPABILITIES OF INFORMATION SYSTEMS…cont.


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Different levels of managers need different types of information for different types of decisions

Increased flexibility of IS allows for changes in organisational structure

However, politics of information is an issue

MANAGERS AND INFORMATION


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Many organisations follow a pyramid model information for different types of decisions

CEO at top

Small group of senior managers

Many more lower-level managers

THE TRADITIONAL ORGANISATIONAL PYRAMID


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Strategic Management information for different types of decisions

Decisions affect entire or large parts of the organisation; “what to do” decisions

Aggregate past organisational data and make future predictions

Improve organisational strategy and planning

Tactical Management

Wide-ranging decisions within general directions handed down; “how to do it” decisions

Automation of monitoring and controlling of organisational activities

Improve organisational effectiveness

THE TRADITIONAL ORGANISATIONAL PYRAMID…cont.


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Operational Management, Forepersons, Supervisors information for different types of decisions

Comply with general policies handed down

Automation of routine and repetitive activities

Improve organisational efficiency

Clerical and Shop Floor Workers

No management-level decisions required

THE TRADITIONAL ORGANISATIONAL PYRAMID…cont.


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IT AND THE information for different types of decisionsORGANISATIONAL STRUCTURE

IT Flattens the Organisation

  • Eliminates middle managers


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Data Scope information for different types of decisions

Amount of data from which information is extracted

Time Span

How long a period the data covers

Level of Detail

Degree to which information is specific

CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS


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Source: Internal vs. External information for different types of decisions

Internal data: collected within the organisation

External data: collected from outside sources

Media, newsletters, government agencies, Internet

CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS …cont.


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Structured and Unstructured data information for different types of decisions

Structured data: numbers and facts easily stored and retrieved

Unstructured data: drawn from meetings, conversations, documents, presentations, etc.

CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS…cont.


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CHARACTERISTICS OF INFORMATION information for different types of decisionsAT DIFFERENT MANAGERIAL LEVELS…cont.


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INFORMATION AS A KEY RESOURCE information for different types of decisionsPersonal dimensions of information

  • The three personal dimensions of information include:

    • Time

    • Location

    • Form


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INFORMATION AS A KEY RESOURCE information for different types of decisionsOrganisational dimensions of information


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Strategic management information for different types of decisions – provides overall direction and guidance

Tactical management – develops the goals and strategies

Operational management – manages and directs the day-to-day operations

Nonmanagement employees – perform daily activities

INFORMATION AS A KEY RESOURCE Organisational dimensions of information


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The four flows of information include: information for different types of decisions

Upward – describes the current state of the organisation based on its daily transactions

Downward – consists of the strategies, goals, and directives that originate at one level and are passed to lower levels

INFORMATION AS A KEY RESOURCE Organisational dimensions of information


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…Information flows continued information for different types of decisions

Horizontal – between functional business units and work teams.

Outward – information that is communicated to customers, suppliers, distributors, and other partners for the purpose of doing business.

INFORMATION AS A KEY RESOURCE Organisational dimensions of information


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INFORMATION AS A KEY RESOURCE information for different types of decisionsOrganisational dimensions of information

  • Information granularity – refers to the extent of detail within the information


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What the information describes can include: information for different types of decisions

Internal information – specific operational aspects of the organization.

External information – the environment surrounding the organization.

Objective information – something that is known.

Subjective information – something that is unknown.

INFORMATION AS A KEY RESOURCE Organisational dimensions of information


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People report to different supervisors, depending on project, product, or location of work

More successful for smaller, entrepreneurial firms

IT supports matrix structure

Easier access to cross-functional information

THE MATRIX STRUCTURE


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THE MATRIX STRUCTURE project, product, or location of work


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THE NATURE OF MANAGERIAL WORK project, product, or location of work


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Planning at different levels project, product, or location of work

Long-term mission and vision

Strategic goals

Tactical objectives

Most important planning activities

Scheduling

Budgeting

Resource allocation

PLANNING


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PLANNING…cont. project, product, or location of work


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PLANNING…cont. project, product, or location of work


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CONTROLLING project, product, or location of work

Control activities by comparing plans to results


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Both planning and control call for decision making project, product, or location of work

The higher the level of management:

The less routine the manager’s activities

The more open the options

The more decision-making involved

DECISION MAKING


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MANAGEMENT BY EXCEPTION project, product, or location of work

Review only exceptions from expected results that are of a certain size or type to save time


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Vision and creating confidence in others project, product, or location of work

Encouraging and inspiring subordinates

Initiating activities for efficient and effective work

Creating new techniques to achieve corporate goals

Presenting a role model for desired behavior

Taking responsibility for undesired consequences

Delegating authority

LEADING MANAGERS REQUIRE THESE SKILLS AND ABILITIES


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Tabular and Graphical Representation project, product, or location of work

Certain information better presented graphically

Trends as lines

Distributions as pie charts

Performance comparisons as bar charts

Many people prefer tabular data for complex problem solving

CHARACTERISTICS OF EFFECTIVE INFORMATION


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“If the auto industry had kept up with technology like the computer industry has, we would all be driving $25 cars that get 1,000 miles per gallon”.

CEO, Fortune 1000 software fime, spring 1998

LOVE-HATE RELATIONSHIP WITH INFORMATION TECHNOLOGY


Well this is true but l.jpg

Your car would crash twice a day the computer industry has, we would all be driving $25 cars that get 1,000 miles per gallon”.

Every time they repainted the lines in the road, you have to buy a new car.

The air bag system would say, “Are you sure?” before going off.

When your car died on the freeway for no reason, you would just accept this, restart, and drive on.

Executing a maneuver would cause your car to stop, and you would have to reinstall the engine. For some strange reason, you would accept this, too.

WELL… THIS IS TRUE BUT…


Components of an information system l.jpg
COMPONENTS OF AN the computer industry has, we would all be driving $25 cars that get 1,000 miles per gallon”.INFORMATION SYSTEM

1..2..3..4..

Procedures

Software

People

Telecommunications

Information

Systems

Data

Hardware


Components of an information system cont l.jpg
COMPONENTS OF AN the computer industry has, we would all be driving $25 cars that get 1,000 miles per gallon”.INFORMATION SYSTEM…cont.


People as a key resource information and technology literacy l.jpg

The single most important resource in any organisation is its people.

Technology-literate knowledge worker – a person who knows how and when to apply technology.

PEOPLE AS A KEY RESOURCEInformation and technology literacy


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Input its : Data are collected and entered into computer

Data processing: Data are manipulated into information using mathematical, statistical, and other tools

Output: Information is displayed or presented

Storage: Data and information are maintained for later use

THE FOUR STAGES OF DATA PROCESSING


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Input devices its : introduce data into the IS

Processor: manipulates data through the IS

Output devices: display information

Storage devices: store data and information

COMPUTER EQUIPMENT FOR INFORMATION SYSTEM



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Transaction Processing Systems (TPS) its

Record data and perform basic processing

Cash registers and ATMs

Management Information Systems (MIS)

Recorded transactions and other data produce information for problem solving and decision making

Decision Support Systems (DSS)

Contain models, or formulas, that manipulate data into information

Often answer “what if?” questions

TYPES OF MANAGEMENT INFORMATION SYSTEMS


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Group Decision Support Systems (GDSS) its

Generate ideas, establish priorities, and reach decisions in group environment

Executive Information Systems (EIS)

Can gather information from vast amounts of data for high-level executives

Highly useful in control and planning

Expert Systems (ES)

Programmed with human expertise

Can help solve problems of unstructured nature

Also referred to as a knowledge worker system (KWS)

TYPES OF INFORMATION SYSTEMS…cont.


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Geographic Information Systems (GIS) its

Represents local conditions or features

Allows planning, decision-making, and monitoring of local conditions or activities

On-demand Output

Managers can obtain reports tailored to their needs at any time

Office automations system (OAS)

Managers can obtain reports tailored to their needs at any time

TYPES OF INFORMATION SYSTEMS…cont.


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MANAGERS AND THEIR its INFORMATION SYSTEMS


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Accounting its

Record business transactions, produce periodic financial statements, and create reports required by law

Finance

Organise budgets, manage the flow of cash, analyse investments, and make decisions that could reduce interest payments and increase revenues

Marketing

Analyse demand for various products in different regions and population groups

INFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS


Information systems in functional business areas cont l.jpg

Human Resources its

Help with record keeping and employee evaluation

Manufacturing

Allocate resources such as personnel, raw material, and time

Control inventory, process customer orders, prepare production schedules, perform quality assurance, and prepare shipping documents

INFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS…cont.


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Service its

ISs are often the backbone of service organisations

Retail

Some retail stores (e.g., Wal-Mart, Sears) are now linked to communication networks by satellite

Management can determine which items move quickly and which do not

INFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS…cont.


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New Businesses its

ISs have made new products and services possible, such as credit reports and shipment tracking, online businesses

Government

Tax authorities, national insurance and welfare agencies, defense departments, economic organisations, immigration authorities

INFORMATION SYSTEMS IN DIFFERENT BUSINESS SECTORS


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Information Systems can help companies attain more effective and efficient business processes

Effectiveness

The degree to which a task is accomplished

Efficiency

Determined by the relationship between resources expended and benefits gained in achieving a goal

EFFECTIVENESS AND EFFICIENCY


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EFFECTIVENESS AND EFFICIENCY…cont. and efficient business processes


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EFFECTIVENESS AND EFFICIENCY…cont. and efficient business processes


Enterprise resource planning erp l.jpg

All business functions served by one system that supports different activities for different departments

Support supply chain management, the series of main and supporting activities from order to delivery

ENTERPRISE RESOURCE PLANNING (ERP)


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ENTERPRISE RESOURCE PLANNING (ERP)…cont. different activities for different departments


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GroupWare lets workers in different locations communicate ideas, brainstorm, and work together as if they were in the same place

Document Control

Users can distribute and track electronic documents without working with outdated information

Collaborative Projects

Users can coordinate work on a single document from many different terminals

GROUPWARE ANDCOLLABORATIVE WORK


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Transmittal of data from one computer to another over a distance

Telecommunications has improved business in three main ways:

Better communication

Higher efficiency

Better distribution of data

TELECOMMUNICATIONS IN BUSINESS


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Cellular phones distance

SMSs/MMs

Video-conferenceing

Voice mail

Facsimile

Information kiosks

Pay-at-the-Pump

Instant messaging

VoIP - Skype

TELECOMMUNICATIONS IN DAILY USE


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Communications medium distance

Physical medium through which data can be communicated

Telephone lines, television cables

Capacity

Speed at which data are communicated

Also called the transmission rate

It is often called “bandwidth”

Bandwidth is measured in bits per second (bps)

The greater the capacity, the faster the transmission

BANDWIDTH AND MEDIA



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Bandwidth distance

Narrowband is low speed

Broadband has greater capacity

Media

A medium is any means by which data can be transmitted

BANDWIDTH AND MEDIA …cont.


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LANs (Local Area Networks) distance

Networks within a building, or within a group of adjacent buildings

WANs (Wide Area Networks)

Networks that cross organisational boundaries or reach outside the company

Value-added networks (VANs/VPNs)

Wireless communication

NETWORKS


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Communication protocols distance

Rules governing the communication between computers or between computers and other computer-related devices (TCP/IP and HTTP)

Network protocols

Rules governing a network of devices

PROTOCOLS


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Popular wireless technologies distance

Wi-Fi, Bluetooth, InfraRed, Wireless. Mircowave, GPS, Edge, 3G

Would you like Wi-Fi with that?

Combining technologies

THE WIRELESS REVOLUTION




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Data presented in real time distance

Includes moving images representing speed or direction

Changing colors represent rate of change

Use expected to grow

DYNAMIC REPRESENTATION



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An opportunity (proactive) distance

Potential increase in revenue

Reduction of costs

Gain in competitive advantage

A problem (reactive)

Undesired situation

A directive

An order to take action

WHY DEVELOP AN INFORMATION SYSTEM?


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THE SYSTEMS DEVELOPMENT distanceLIFE CYCLE


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THE SYSTEMS DEVELOPMENT distanceLIFE CYCLE …cont.


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Investigation distance

Developers interview managers and perspective users to determine business needs

Three feasibility studies performed

ANALYSIS


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Technical Feasibility Study distance

Ensures hardware and software exist to build the system

Economic Feasibility Study

Determines resources needed for implementation

Determines if benefits outweigh the costs

ANALYSIS …cont.


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THE SYSTEMS DEVELOPMENT distanceLIFE CYCLE …cont.


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Operational Feasibility Study distance

Determines if system will be used as intended at its full capacity

Requirements Definition

Specific features and interface requirements of the system defined

ANALYSIS …cont.


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THE SYSTEMS DEVELOPMENT distanceLIFE CYCLE …cont.


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Translation of user requirements into detailed functions of the system

Input files

Procedures

Output files

User Dialog

Interfaces

DESIGN


Design cont l.jpg
DESIGN …cont. the system


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Software development tools the system

Flowcharts

Graphical symbols illustrating system

Logical and physical elements

Over 30 symbols for events, hardware, processes and more

DESIGN …cont.


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DESIGN …cont. the system


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Software development tools the system

Data flow diagram

Describe flow of data in system with only four symbols:

External entities

Processes

Data stores

Data direction

DESIGN …cont.


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THE SYSTEMS DEVELOPMENT the systemLIFE CYCLE …cont.


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THE SYSTEMS DEVELOPMENT the systemLIFE CYCLE …cont.


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Software development tools the system

Unified Modeling Language

Graphical standard for visualizing, specifying, and documenting software

Independent of programming language

Describe types of software

Use case, class, interaction, state, activity, and physical components

DESIGN …cont.


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THE SYSTEMS DEVELOPMENT the systemLIFE CYCLE …cont.


Design cont112 l.jpg

Construction the system

Programming

Systems Testing

Checked against system requirements

Attempts to make system fail

DESIGN …cont.


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Training the system

Conversion

Parallel Conversion

Phased Conversion

Cut Over Conversion

Pilot Conversion

IMPLEMENTATION



Support l.jpg
SUPPORT the system


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Systems developed using an iterative process the system

Purpose is to develop a working model as quickly as possible, which can be tweaked and revised

Significantly shortens systems development backlog

Can increase risk of incompatibility and other unforeseen mishaps

PROTOTYPING




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PROJECT MANAGEMENT the systemOF INFORMATION SYSTEM


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Takes a look at the information needs of an entire organisation (or a major division)

Analysts integrate existing systems so that:

Data can flow more easily among business units

Users can access different types of data via a single interface

SYSTEMS INTEGRATION


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SYSTEMS INTEGRATION …cont. organisation (or a major division)


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T organisation (or a major division)HE INTERNET, THE WEB AND E-COMMERCE


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The Internet is generally defined as a global network of computer networks

The Web is a way of organising, presenting and accessing the Information on the Internet

WHAT IS THE INTERNET?WHAT IS THE WEB?


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Number of servers computer networks

147 million in mid-2003

Number of users

More than 600 million; 10 percent of the world population

GROWTH OF THE INTERNET



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GROWTH OF THE INTERNET computer networks


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Definitions computer networks

Uniform Resource Locator (URL)

Hypertext Transfer Protocol (HTTP)

Domain Name

Hypertext Markup Language (HTML)

Top Level Domain (TLD)

HOW THE INTERNET WORKS



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IP Number computer networks

Domain Naming System (DNS)

A domain name is assigned to each IP address

Domain names are registered by one of a group of companies authorized to assign unique names

INTERNET DOMAINS


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INTERNET DOMAINS…cont. computer networks


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E-mail (POP & SMTP) computer networks

File transfer (FTP)

Usenet newsgroups and Blogs

Instant Messaging

Internet Telephoning (VoIP – Skype)

Web browsers

Search engines

COMMON INTERNET APPLICATIONS


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Intranet computer networks

A within-organisation computer network that uses Internet technologies to communicate

Extranet

Uses Internet technologies to facilitate communication and trade between an organisation and its business partners, such as suppliers (VPN – virtual private network)

INTRANETS AND EXTRANETS




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Business-to-business and business-to-consumer transactions done electronically via networks

Database management online makes information cheaper to distribute

E-commerce is now synonymous with “doing business on the Internet”

E-COMMERCE


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Electronic Data Interchange done electronically via networks

Market exchanges and auctions

Online Business Alliances

Application and Storage Service Providers

Vortals

B2B E-COMMERCE


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ELECTRONIC DATA INTERCHANGE done electronically via networks

  • EDI an early example of IT in e-commerce

  • EDI over the internet using secure VPNs is a growing application


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Advertising & PR done electronically via networks

Marketplaces

Brochureware sites

Auctions & reverse auctions

E-tailing

Portals

B2C E-COMMERCE


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B2C E-COMMERCE …cont. done electronically via networks


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B2C E-COMMERCE …cont. done electronically via networks


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SEARCH ENGINES AND PORTALS done electronically via networks


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Target the right customer done electronically via networks

Own the customer’s total experience

Personalise and customise the service

Shorten the business cycle

Let the customers help themselves

Be proactive and interactive

Engender a feeling of belonging

Create a community

TIPS FOR SUCCESSFUL ONLINE BUSINESS TRANSACTIONS


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E-COMMERCE PRACTICES ON THE INTERNET done electronically via networks


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B2C and B2B growth done electronically via networks

to e-business empowerment

B2C

Portal

Self-Service

Web Stores

Integrated

Web Store

Interactive

Marketing

Web Storefront

& e-Catalog

Supply

Chain

Management

Extranets

And Exchanges

Procurement

Automation

B2B

Portal

Customer

Self-Service

E-COMMERCE TRENDS

Short-Term Strategies

High

Long-Term Strategies

e-Business

Empowerment

Customer

Relationship

Management

Business Value

B2C

B2B

Operations Automation

Short-Term Projects

Low

High

Time to Implement


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Some Key done electronically via networks

Factors

for Success

in E-commerce

Selection & Value

Performance & Service

Look & Feel

Advertising & Incentives

Personalisation & Customisatn

Community Relationships

Security & Reliability

E-COMMERCE SUCCESS FACTORS


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E-GOVERNMENT done electronically via networks


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GOVERNANCE : done electronically via networksAN INFORMATION PERSPECTIVE

  • Representative democracy relies on supposition that best way to make a decision is wider participation for all its citizens having access to relevant information

  • Government is by nature an information intensive organization

  • Information is power and information management is political


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WWW.THEDTI.GOV.ZA done electronically via networks


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HOW WELL INFORMED ARE GOVERNMENT EXECUTIVES ON IT ISSUES? done electronically via networks

86%

CIO’s

CEO’s

45%

General

Managers

36%

Executive Oversight and

Budget Personnel

28%

7%

Legislative Bodies

0 50 100

Source: JFK School of Government, Harvard University

Slide Courtesy, Don Pearson, VP, Government Technology


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Government largest collector, user, holder and producer of information

“In pursuing the democratic/political process, in managing resources, executing functions, measuring performance and in service delivery, information is the basic ingredient”

INFORMATION TECHNOLOGY’S ROLE IN GOVERNMENT


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Information to support internal management information

Information to support public administration and regulation

Information to support public services

Information made publicly available

GOVERNMENT WORK IS INFORMATION-INTENSIVE


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E-Government refers to the use by government agencies of information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

Source: World Bank

WHAT IS E-GOVERNMENT?


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E-GOVERNMENT SERVICES information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

  • G2C

  • Income taxes

  • Job search

  • Social security benefits

  • Personal documents

  • Car registration

  • Application for building permission

  • Declaration to the police

  • Public libraries

  • Birth & marriage certificates

  • Enrolment in higher education

  • Announcement of moving

  • Health-related services

  • G2B

  • Social contribution for employees

  • Corporate tax

  • VAT

  • Registration of a new company

  • Submission of statistical data

  • Custom declaration

  • Environmental permits

  • Public procurement

  • G2G

  • Governments establishing regional alliances –for purchasing, warehousing, data sharing

  • Government sharing data among departments

  • State government agencies aggregating data from the municipalities via the web

  • Linking customer front ends with legacy systems


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Achievements information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

Almost all government institutions publish information on Internet

Few institutions provide different forms on Internet

E-Signature legislation

Challenges

Improved management and presentation of information

Interactive communication

Providing e-services for citizens, incl. taxes declaration and payment

G2C: GOVERNMENT TO CITIZEN


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Achievements information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

Public procurement e-register

Administrative structures e-register

Challenges

Improved information management and presentation

E-market place for public procurements

Providing e-services for companies, incl. tax declaration and payment

G2B: GOVERNMENT TO BUSINESS


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Achievements information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

Use of Internet for information

Availability of basic infrastructure

Using E-mail for unofficial communication between institutions

Challenges

Internet – official communication environment for the Government

High level of security

Building of legacy system integration

G2G: GOVERNMENT TO GOVERNMENT


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Develop Internet-based services for access to public information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions. sector information

Improve transparency

Involve citizens and business in interactive ways

Full exploitation of ICT in administrations including e-signaturesand open source software

E-markets for public sector procurement

E-GOVERNMENT PRIORITIES


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Adoption of business best practices in government operations:

knowledge management

operations research and optimisation

supply chain management, incl.CRM

human resources

automation and integration

document workflow

INTERNAL EFFECTIVENESS AND EFFICIENCY


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Increased transparency operations:=> less corruption

New and better services, incl. Reduced time delays and speed up delivery of services and information

Services delivery independent of place and time – open 24/7

Greater convenience

Revenue growth and/or cost reductions

E-GOVERNMENT RESULTING BENEFITS


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Presence of political will operations:

Provision of vision, strategy and necessary financial resources

Awareness in the society of the need for e-government development

Education and training, practical skills of the human resource pool for participation in the e-government

Provision of employment for highly qualified IT professionals

Effective feedback

CRITICAL FACTORS

Based on the realities mentioned, the following critical factors for a successful e-government have been defined:


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Creation of IT Infrastructure operations:

Standards for e-governance procedures

Reengineering the existing system

Technology should be used to enable the delivery of results not merely as a substitute to reduce inertia within processes

Technological innovations for public services

Technology should not be used to preserve legacy systems

Focus on results not on process

Governance should be a collaborative approach

Create leadership in Technology ; Security & Privacy

CRITICAL FACTORS…cont.


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The implementation of new technologies requires constant knowledge acquisition. The education level of the public administration employees is comparatively high, but their training for the use of IT does not comply with the requirements of e-government.

It is difficult to attract and keep highly qualified IT and management specialists in the state administration because of the more attractive remuneration terms and clearer career perspectives in the private sector

HUMAN RESOURCES


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Stage 4 knowledge acquisition. The education level of the public administration employees is comparatively high, but their training for the use of IT does not comply with the requirements of e-government.

Transactions

Complex services

Stage 3

Two-way

interaction

Processing of

form

Stage 2

Interaction

Downloading

of forms

Stage 1

Information

Information

on the Web

IMPLEMENTING E-GOVERNMENT - STAGES

Value

Complexity & Time


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Invest, develop and exploit sensibly telecommunication network

Reach the average level of Internet capacity in the region

Satisfy quantity and quality of Internet lines

Extend internet access points

ADSL in industrial parks

GOVERNMENT OBJECTIVE: INTERNET INFRASTRUCTURE


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The vision for the e-government in Bulgaria is: network

The Government of the Republic of Bulgaria will provide modern and efficient governance, while using the means of contemporary information technologies in order to meet the real needs of citizens and businesses at any time and any place

E-GOVERNMENT VISION OF BULGARIA


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The Government of the Republic of Bulgaria has formulated the following strategic objectives with regard to e-government:

To provide, through electronic means, high-quality, efficient and accessible public services to citizens and business;

To expand the technological capabilities of citizens and businesses for participation in the government decision-making process;

To form organisational, communication and information environment for effective and transparent functioning of the public administration in accordance with the principles, standards and best practices of the European Union

E-GOVERNMENT STRATEGIC OBJECTIVES OF BULGARIA


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RELUCTANCE TO EMBRACE E-GOVERNMENT the following strategic objectives with regard to e-government:

The major concerns in implementing e-government are:

  • Confidence and reliability of the electronic process

  • Expensive infrastructure required

  • Internal competence-building issues

  • Security of the system and data integrity

  • Legal issues associated with e-commerce

  • Competence in providing support

  • Licenses and cost of development of solutions

  • Digital divide

  • Fear of loosing power base

It is not only about Software and Hardware competence.

It is about working environment and process understanding as a whole.


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GOVERNANCE: the following strategic objectives with regard to e-government:IN IT FRAMEWORK

  • Expansion of Internet and electronic commerce, is redefining relationships among various stake holders in the process of Governance.

  • A new model of governance would be based upon the transactions in virtual space, digital economy and dealing with knowledge oriented societies .

  • Electronic Governance is an emerging trend to re-invent the way the Government works.


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BASIC FEATURES OF PRESENT MODEL the following strategic objectives with regard to e-government:

OF E-GOVERNANCE

  • Government is simple ; moral; transparent ; efficient.

  • Commodity to deliver is service but delivering agency is Government

  • Legacy problems of existing Government is assumed to be resolved over Technology Backbone

  • Basic orientation of this model is not to reduce the role of Government in Citizen’s life but to serve it more efficiently.

  • Citizen is demanded to orient himself to fit with the way government works.


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C the following strategic objectives with regard to e-government:

G

B

E-GOVERNANCE:

PRESENT MODEL


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RE-ORIENTING G TO G : AN the following strategic objectives with regard to e-government:

ALTERNATIVE MODEL OF E-GOVERNANCE

  • Emphasis is accorded for self-service. Citizen is more self reliant. He may access “online” government as per the need. But he is in charge of the affairs.

  • Role of governance is limited as facilitator. The internal fabrics of G to G system is having higher intelligence. The regulatory interface with business and revenue activities are more market and community driven

  • It is the government which tries to fit with the life of the Citizen, particularly those who are under-privileged, whereas in previous model it was other way round


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ALTERNATIVE E-GOVERNANCE MODEL the following strategic objectives with regard to e-government:

G

C

B


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TRANSFORMATION FROM the following strategic objectives with regard to e-government:

E- GOVERNMENT TO DIGITAL GOVERNANCE

Core Function

First generation

Second generation

  • Public safety

  • Health

  • Education

  • Economic activity

  • Infrastructure

Choice

Conversation

Digital Governance

Digital Government

Capacity

  • Collaborative infrastructure

  • Transparency

  • Efficient procedure &

  • rules/permission

  • Mobile money

  • Public/Private Partnership

Contribution

Cost

  • Citizens

  • Business

  • NGOs

Commodity

Channels

(Delivery of Citizen

services)

Serving the end user


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E-GOVERNANCE : the following strategic objectives with regard to e-government: CHALLENGES FOR RURAL AREAS

The other set of challenges lie in extending the reach of e-governance services to large portions of the population that live in rural areas. These include:

  • Assessment of local needs and customising

    e-governance solutions to meet those needs

  • Connectivity

  • Content (local content based on local language)

  • Building human capacities

  • E-commerce

  • Sustainability


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E-GOVERNANCE : CHALLENGES the following strategic objectives with regard to e-government:

The key challenges with electronic governance are not technology or internet issues but organisational issues like

  • Redefining rules and procedures

  • Information transparency

  • Legal issues

  • Infrastructure ;Skill and awareness

  • Access to right information

  • Interdepartmental collaboration

  • Tendency to resist the change in work culture


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ETHICS AND INFORMATION the following strategic objectives with regard to e-government:


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Consumer Privacy the following strategic objectives with regard to e-government:

Organizations collect (and sometimes sell) huge amounts of data on individuals

Employee Privacy

IT supports remote monitoring of employees, violating privacy and creating stress

ETHICAL AND SOCIETAL ISSUESThe not-so-bright side


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Freedom of Speech the following strategic objectives with regard to e-government:

Opportunities increase for pornography, hate speech, intellectual property crime, and other intrusions

Prevention may abridge free speech

ETHICAL AND SOCIETAL ISSUESThe not-so-bright side


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IT Professionalism the following strategic objectives with regard to e-government:

No mandatory or enforced code of ethics for IT professionals--unlike other professions

Social Inequality

Less than 20% of the world’s population have ever used a PC; less than 3% have Internet access

ETHICAL AND SOCIETAL ISSUESThe not-so-bright side


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What is Privacy? the following strategic objectives with regard to e-government:

One’s right to control information about oneself

Not a constitutional right per se; secured by laws or convention

Increasing number of organizations may access information via better IT hardware and software

Business and civil rights advocates dispute degree of privacy vs. utility of information access

ETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?


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Business Arguments the following strategic objectives with regard to e-government:

Necessary to collect basic financial and personal information as cheaply as possible

Consumers benefit eventually from competitive environment augmented by readily available information

ETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?


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Consumer Arguments the following strategic objectives with regard to e-government:

Resent unsolicited mail and telephone calls

Resent being refused credit because of credit bureau mistakes

Frightened by “dossier phenomenon”

Loss of control over information unfair

information gathered for a particular purpose with permission should remain restricted

ETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?


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Seven Commandments of Personal Data Collection and Maintenance

Purpose: Companies should inform people who provide information of specific, exclusive purpose

Relevance: Companies should record and use only data necessary to fulfill their own purposes

Accuracy: Companies should ensure that their data are accurate

ETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?


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Currency: Companies should make sure that all data about an individual are current

Security: Companies should limit data access to only those who need to know

Time Limitation: Companies should retain data only for the time period necessary

Scrutiny: Companies should establish procedures to let individuals review their records and correct inaccuracies

ETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?


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The Microchips Are Watching individual are current

Video cameras

Software to count keystrokes

Artificial intelligence to monitor cash disbursement and detect fraud

Monitoring e-mail and Web access

ETHICAL AND SOCIETAL ISSUESElectronic monitoring of employees


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The Employers’ Position individual are current

Entitled to know how employees spend time

Believe monitoring is an objective, nondiscriminatory method to gauge output

The Employees’ Position

Deprives them of autonomy and dignity

Increases stress and stress-related illness and injury

ETHICAL AND SOCIETAL ISSUESElectronic monitoring of employees


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Pros individual are current

Saves travel cost and time

Decreases pollution

May reduce unemployment

Productivity higher among telecommuters

ETHICAL AND SOCIETAL ISSUESTelecommuting: pros and cons


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Cons individual are current

Employers tend to pressure telecommuters to work harder than workers in the office.

No office to foster new social ties and camaraderie.

May negatively impact some segments of the economy

Restaurants

Downtown business and industries

ETHICAL AND SOCIETAL ISSUESTelecommuting: pros and cons


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Thank You! individual are current

Neels Bothma

[email protected]

[email protected]

Cell: 082 8808549

Tel: 012 6676064

Fax: 012-6676065


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SOURCES individual are current

Reaching the UnreachedDr. N. VijayadityaEssentials of Management Information Systems


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Power of computers increasing; prices dropping individual are current

Increase in programming variety and ingenuity

Internet access faster and more reliable

Internet growth resulting in opportunities

Increasing ratio of computer-literate workforce

Trends


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