egov strategies
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Click to edit Master title styleeGov Strategies
Establishing a National Service Oriented eBusiness and eGovernment Infrastructure
OASIS Symposium 2007"eBusiness and Open Standards: Understanding the Facts, Fiction, and Future"
15-20 April 2007San Diego, California
Who is he?
Soren Stauning, 33 y
National IT and Telecom Agency of Denmark
MA/Political science – a generalist among tech specialists
E-gov in Denmark – the facts: Denmark is a small country: 5 M (like Tennessee) – DK:US ratio 1:65 - public country: 36% employed in the public sector - with small businesses: 400.000 companies, 250.000 SME’s - decentralized: 5 autonomous regions and 98 municipalities w/ own
local government and administration But the same challenges as (many) bigger countries:
No central “enterprise” architecture or coordination No consolidated IT-procurement Fragmented use of IT-standards, SOA and general
infrastructure A very complex public sector with very bureaucratic
processes. Impending crisis: Ageing population, fewer hands
Past digitization strategiesdo not scale!
Source: (DA) Digital kommunikation i den offentlige sektor 2007.
Rambøll Management for the National IT and Telecom Agency
Frequency
Processes
50% of the volume
All new strategies can compete with current course & speed on financial terms …
Current course & speed
One vendor EDI
”Hub & Spoke”
Open SOA
World class
Savings, $ M 2007 - 2010 1,037 1,465 1,209 1,522 1,469 1,469Investment, $ M 2007-2008 -142 -71 -54 -98 -72 -72Investment in % of savings 14% 5% 4% 6% 5% 5%
…so the ”soft values” tip the balance: Open SOA: Openness and independency
Open standards and free vendor choice Low transaction costs for the individual
- effect on use Best of two worlds
”Politically correct” Allows saving by centralization
Conducive to competition Small vendors can join in – and open source Shorter time span from development to operation of cross-public
services State of the art SOA
Opportunity for Danish IT companies to deploy SOA hands-on
Open SOA will become a foundation for innovation in the public sector
Reduced cost of public sector
Busi
nes
s re
quir
emen
tsSt
rate
gy
/Politi
cal
goal
s
Tec
hnolo
gy
(OIO
SI
infr
astr
uct
ure
)
National competitiveness
Quality of pub. service
Service Registry
One public interface(RASP)
E- invoicing
Reduced biz expenses to IT vendorsNet gain for
SMEsengaging in e- business
Reducedmarginal
cost
”Long tail” ofservices can be
harvested
More 3rd party based
publicservices
Flexiblepublic sector
Optimizedprocurement
Increasedreuse of
data
RASP toolkit
More agile and competitive
SMEs
Increaseddigitization
of SMEs
By 2007 all danishSMEs must haveaccess to OIOSI infrastructure
By 2010 all new services
must use OIOSI
95% of all companies
must use e-invoicing in
2012
By 2012 all communication
G2B/ B2G must beelectronic
Tar
get
s
New services are easier to
deploy
Data standardization
Increased digital transaction
volumeHigher frequencyof data harvest
with fewer errors
Enhanced IT vendor
competition
Increasedcoherency inpub sector
Boost demandfor standardized
data
Increasedsystem to
system integration
Digital Signature
(PKI)
Reduced manual
documenthandling
Economies of scale- better utilizationof infrastructure
Reduced admin.
burden on businesses
Value of IT standards and infrastructure
– simplified and explained in a nutshell
Microsoft PowerPoint-præsentation
18%12%
19% 22%
41%
100%97% 95%
99% 99% 100% 100%
0%
20%
40%
60%
80%
100%
Allcompanies
(10-19) (20-49) (50-99) (100+) Publicauthorities
Number of employees EDI Internet
Source: Informationssamfundet Danmark 2004, Danish statistics 2004
EDI is a substantial barrier
41%
15%
44%
10-19 20-49 50-99
Fordeling af transaktionsvolumen for virksomheder imellem 10-99 ansatte (samlet volumen 191,1 mill. forretningsmeddelser)
KPMG 2005
But why are the SME’s important?
(it’s about lowering the barriers for participation, not ignoring the SME’s)
Distribution of transaction volume for companies between 10 and 99 employees.
(Total volume is 191 million orders and invoices)
9.7.1 ”E-invoice via Internet”
”A national Internet based infrastructure will be established to make it possible for companies to exchange business documents (e.g. electronic invoices) in a simple, inexpensive and secure way.
The infrastructure must be built in open collaboration with private IT-suppliers and be ready for use in 2007.
Exchanging a business document should be as simple as sending an email.”
(Part of Prime minister led national globalization strategy)
The political agenda:
Infrastructure strategy Technical
National authoritative service registry Single sign on components and security token services Standardization of web service profiles Development of OSS toolkits which supports the profiles Reference implementation
Organizational Public sector as an engine Take advantage of the current window of opportunity
Legal / Legislative Umbrella of multilateral agreements Alternative: Passing a law
Cost vs. benefit Start with business transactions that have a good balance between cost
and benefit
Adoption strategy – “Comply or explain” Parliamentary Resolution on Open Standards
(B103 June 2nd 2006)
“Parliament imposes on the government a duty to ensure that the public sector’s use of IT, including use of software, is based on open standards.”
A catalogue of open standards will be maintained as of January 1st 2008
e-procurement as locomotive Achievements so far
1.25 million e-invoices are exchanged every month All public sector institutions (> 30.000 entities) Since February 2005 440,000 companies affected Built on OASIS UBL
Gateways provides critical mass from day one Positive business case for first movers
Our profile: RASP – Reliable Asynchronous Secure Profile
SOAP 1.1 Support for
SMTP/POP3 WS-Addressing 1.0 UDDI 3.0
New subscription API
Primary / secondary XML 1.0 XML Schema 1.0
WSDL 1.1 Contract first
WS-Security 1.0 X.509 certificates
WS-ReliableMessaging WS-RX Submitted
specification UBL 0.7 and 2.0
Large OASIS
footprint
What are the unique conditions of the Danish case?– and what could anyone adopt?
Unique: size (land, population, public sector) IT: High (IT) literacy acceptance (and level) of registration, trust in public
sector absence of other worries
Good-for-all: Sense of urgency (DK case: Aging population,
impending labor shortage) first consensus, then legislation comply or explain open standards increase competition
Further readings
Basic brochure:A national web service based infrastructure http://www.oio.dk
/files/20060928_A_national_web_service_based_infrastructure.pdf
Papers:Lanng & Brun (2006):
Reducing barriers for e-business in SME’s through an open service oriented infrastructure:
http://www.oasis-open.org/archives/ubl/200608/doc00000.doc
Brun & Lanng (2006):
From 18 to 100 million UBL messages with a Service Oriented Infrastructure:
http://2006.xmlconference.org/proceedings/36/presentation.pdf
Bosak (2005): Denmark Leads the Way With Electronic Billing:
http://xml.coverpages.org/BosakDenmark2005.html
Legislation and statute on electronic invoicinghttp://www.oio.dk/XML/standardisering/eHandel/materialer/OIOXMLeInvoice
Service Oriented Infrastructure:http://www.oio.dk/arkitektur/soa/infrastruktur/english
Questions?
Søren Stauning - ssa@itst.dk - +45 2237 7585Finn Jordal - fhj@itst.dk - +45 3337 9205
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