Management Information System

T O P I C

Progress of E-Business Systems in Pakistan

SEQUENCE

Introduction and History of E-Business

Global Perspective of E-Business

Basics of an Information System

Practical Study

National Database and Registration Authority

History of E-Business in Pakistan

E-Business objectives and Internet Growth in

Pakistan

Current IT Policy of Pakistan

NADRA History, Functions and Organization chart

Products and Services of NADRA

Overview of E-Business Applied

SWOT Analysis of NADRA

Conclusion

Recommendations

Introduction

o The IT revolution – Electricity was first introduced in 1873

and it took 46 years for its mass scale use

o Telephone introduced in 1876 and took 35 years

o Television introduced in 1926 took 26 years

o PC introduced in 1975 took 16 years

o mobile phone in 1983 took 13 years for mass use

o the web introduced in 1994 took only 4 years

Definition of E-Business

We define it as: “E-Business is the use of internet technologies to

work and empower business processes, electronic commerce, and

enterprise collaboration within a company and with its customers,

suppliers, and other business stakeholders”. In more general sense

it can be considered “an online exchange of value” or interacting

and serving the customers online”.

Global Perspective Of E-Business

o Technological Dimension There are technological gaps between

the developed and developing countries in use of IT. Advanced

nations are using leading-edge technologies, while developing

countries lack state-of-the-art technology, consequently they

are lagging behind. In developing countries like Pakistan

acquisitions, installation, use, and maintenance of IT along with

training of user is a barrier to e-Business

o Social and Cultural Dimension The social and cultural factors

threatening the implementation of IT in business:

Codes of ethics and Intellectual property rights (primarily

digital property), Accountability (for actions are non actions)

Personal and data privacy, Censorship, and ownership of

information

Social and cultural differences between the developed and

developing nations

o IT and Barriers to e-Business

The needs, requirements and resources of countries and

organizations vary according to their human and capital

resources, goals and objectives, structures, size, business

operations and management, so is the case of the

technology. The unavailability of proper infrastructure,

frequent failures of power, faulty telephone cables, limited

use of internet, the issue of security of transactions on

internet and high bandwidth rates as notable barriers of e-

Business

o E-Commerce – Requirement of the Day Today whether you are a

customer, business man or just a loyal subject of your nation.

Its scope starts from the speedy communication to cost

containment, gaining and maintaining competitive advantage to

earning bucks that can change your life and ultimately the

economic out look of your country

o Expanding Roles of IS in Businesses

From 1950s through 1960s, electronic data processing was

introduced in the businesses. Later in 60s and 70s MIS were

incorporated. The decision support systems were to follow in

70s and 80s

From 1980s – 90s, the revolution strengthened and

the strategic support was developed, which included

Executive IS, Expert S, and SIS. Then emerged the

electronic business and commerce; as final products

of internet technologies in 1990s and 2000s

Basics of an Information System

o What is Information? Information is defined as: “a

collection of refined data”. What users really want is the

information which is carved out from the data

o What is a System? A system can be defined as any

combination of things or individuals which is designed to

process certain inputs into outputs through a well

designed and defined procedure

Definition of Information System “Any organized

combination of people, hardware, software, communication

networks, and data resources that stores and retrieves,

transforms and disseminates information in an

organization”

Functions of an Information System. This is in fact the

application of general systems model to the information system

Information Technology Defined IT can be defined as:

“Various hardware and software components necessary for the

system to operate”. The computer based IS are extensively being used

in the businesses today, which use computer hardware and software

technologies, telecommunication network technologies, and data resource

management technologies

Business Applications of IT Information technology can help all

kinds of businesses improve the efficiency and effectiveness of

their business processes, managerial decision making, and

workgroup collaboration, thus strengthening their competitive

positions in a rapidly changing marketplace. The three vital roles that IS

can perform for a business enterprise are as follows:

Support of its business processes and operations

Support of decision making by its employees and mangers

Support of its strategies for competitive advantage

Case Study

Progress of E-Business Systems in Pakistan

National Database and Registration Authority (NADRA)

History of E-Business in Pakistan

o Like any other developing country, Pakistan has also passed

through good and bad experiences of IT usage in businesses

o E-commerce is quite at initial stage. In fact e-business was not

started in Pakistan until 2000 due to a number of constraints.

But Internet grew like mushroom from 2000 onwards

o The primary functions for e-Business requires following things

in Pakistan that are yet to be done:

Increased awareness level

It requires a proper infrastructure for doing e-business

It required developing e-commerce minds

It requires transaction facility over the Internet world wide

E-Business Objectives for Pakistan:

o Diversification of exports: New markets, new products

o Greater role of SMEs in exports

o Survival in the emerging global electronic economy

o Facilitate international trade through an e-commerce

infrastructure and Increase efficiency of business

transactions, logistics

o Electronic documentation of economy

o Use of E-Commerce in government for procurement,

promotion of trade, provision of information etc

o To revitalize the economy by exploring the new potential of

Electronic Commerce in B2B and B2C trade and services

o Simplifying citizens’ access to government while providing

choices and options for interaction with government

Internet Growth in Pakistan:

o Internet entered in Pakistan in 1997. It got real boom in year

2000 due to govt initiatives undertaken in the key areas

o The cost of Internet bandwidth of PTCL was reduced up to

53% which led to reduction in Internet end user prices. Free

Internet connections were extended to public sector

Universities. To facilitate the private sector, IT and telecom

industry and enhance investor’s confidence in the

Government, processing period for license applications by

the PTA was reduced to 7 days

E-Business – Implications for Pakistan

o Exploring new markets for exports

o Breaking monopoly of export giants

Impact of E-Business on Pakistani Market

o More foreign investment and foreign markets for banks

o Banks will be able to compete HUNDI system

o Increased tax net

Reasons to Use Internet in Pakistan

o More horsepower and increased business

o Introduction of new value change programs

o Parallel systems with international organizations

Current IT Policy

The Vision

“To harness the potential of Information Technology as a key

contributor to the development of Pakistan”

The Mission

The mission of national IT policy is: “To rapidly develop the

infrastructure in synchrony with the creation of excellently

trained individuals and teams. Direct these at transforming our

society into a prosperous and dynamic one—one that values

and benefits from the creation and free flow of information and

knowledge. Encourage and assist the entrepreneurial spirit,

and make the fruits of this technology available to every

citizen.”

Important Goals: To realize the vision behind the IT policy, the

following goals have been set:

o Make the government a facilitator and an enabler to provide

maximum opportunities to the private sector

o Develop an extensive pool of trained IT manpower at all levels

o Provide business incentives for both local and foreign

investors to ensure the development of Pakistan’s IT sector

National Database and Registration Authority (NADRA)

History of NADRA:

NADRA was established as National Database Organization

(NDO), an attached department under the Ministry of Interior, in

1998. On 10 March, 2000, NDO & Directorate General of

Registration (DGR) merged to form NADRA, an independent

corporate body with requisite autonomy to operate

independently and facilitate good governance

With the mandate of developing a system for re-registering 150

million citizens, NADRA launched the Multi-Biometric National

Identity Card project in the year 2000. This program replaced

the paper based Personal Identity System of Pakistan that had

been in use since 1971

Functions and Scope of NADRA :

o National Database & Registration Authority (NADRA) has

gained international recognition for its success in providing

solutions for identification, e-governance and secure

documents that deliver multi-pronged goals of mitigating

identity theft, safe-guarding the interests of its clients, and

facilitating the public

o In-depth Research and Development efforts have enabled

NADRA to become the trailblazer in the area of Software

Integration, Data Warehousing, Network Infrastructure

Development and Project Management

o NADRA is one of the leading ‘System Integrators’ in the global

identification sector

o NADRA has successfully implemented the Multi-Biometric

National Identity Card & Multi-Biometric e-Passport solutions

for Pakistan, Passport Issuing System for Kenya, Bangladesh

High Security Driver’s License, and Civil Registration

Management System for Sudan amongst other projects

o NADRA works as a division of ministry of interior and performs

the and performs duties namely: National registration of

population and issuance of identity cards; Nationality,

citizenship and Immigration, passports, regulation of entry and

exit of foreigners

Management:

Appointment Name Date since

Chairman Ali Arshad Hakeem August 12, 2008

Deputy Chairman Tariq Malik 2008

Chief Tech Officer Usman Y. Mobin 2002

Chief Op Officer Brig(R) Zahid Hussain 12 August 2009

Chief Fin Officer Shahid Hamid 21 May 2008

Chief HR Officer Naveed Jan June 04, 2007

Chief Sales Officer Saleem M. Rafik 2007

Achievements

o Placed amongst the Top 50 E-Passport Technology Suppliers

for 5 consecutive years in IT World Magazine, 2005 – 2009

o NADRA was honored with the “Outstanding Achievement

Award” at CARDEX Middle East in Cairo, Egypt in May, 2007

o NADRA has been awarded The Merit Exporter Award by

Federation of Pakistan Chambers of Commerce & Industry

(FPCCI) in 2006

o NADRA has successfully achieved Capability Maturity Model

Integration (CMMI) from Software Engineering Institute (SEI)

Carnegie Melon, USA

o NADRA Quality Management and CNIC Production departments

are also ISO 9001:2000 Certified

NADRA Supporting E-Business in Pakistan

o CNIC (Computerized National Identity Card) is the core

product of NADRA issued to a valid / legitimate citizen of

Pakistan. It is a blend of state-of-the-art technology and well-

defined business rules to guarantee its authenticity and

validity

o CRSM The Civil Registration Management System has been

developed by NADRA for the registration of four vital events

i.e: Birth, Death, Marriage and Divorce. The scope of CRMS is

to automate all the local governments in a country and

provide computerized registration and certificate issuance of

the vital events. The system provides up-to-date status

reporting facilities for selected events, while providing

business decision models for strategic decision making

o Multi-Biometric e-Passport In 2004 NADRA enabled

Pakistan to become one of the first countries in the world to

issue the Multi-biometric e-Passport compliant to ICAO

standards. NADRA Multi-Biometric e-Passport solution uses

overt and covert security features on the data page supported

by most sophisticated technology and business logic which

makes it one of the most modern passports of this era. This

help countries create a highly secure integrated system

encompassing immigration, Automated Border Control and

passport issuance while ensuring the genuineness of the

holder as a valid citizen

o Verisys Having developed the Multi-Biometric National

Identity Card for Pakistan backed up by the large centralized

national database in the world, NADRA has introduced

an easy- to-use access tool for verification of citizens in the

country named as Verisys. It is an authentication process to

provide online verifications of Pakistani citizens to the

government, private and corporate sectors for bringing in

transparency, validation, elimination of fraud & forgery. This

is a web-based real-time activity displaying the front and rear

image of the CNIC with added hidden information for

verifications

o E-Vehicle Management System NADRA has developed the

multiple-pronged “e-Vehicle Management” system that uses

Radio Frequency Identification Device (RFID) technology to

identify vehicles approaching ‘manned’ & ‘unmanned’ Check-

Posts at entry / exit with real-time monitoring at the central

control room, this allows authorities to monitor & generate

route of vehicles. The e-Vehicle Management System has the

following elements:

Vehicle Identification and Monitoring System (VIMS): Vehicles are

issued unique Vehicle Identification Number (VIN). The system

allows authorities to eradicate vehicle theft and smuggling, catch

suspects and improve vehicle tax collection

Vehicle Access Control System (VACS): VACS can be deployed in

secured premises/ building entry/exit points to restrict access of

vehicles at designated gates, levels and points

Vehicle e-Toll Collection System: This system can be deployed at

toll plazas on motorways and / or highways for electronic

collection of toll from vehicles bearing the E-Tag. The system

includes Rechargeable credit mechanism and smooth

reconciliation of collected toll providing comfort and time-saving

to frequent travelers

E-Driver’s License NADRA has developed an RFID based

Driver’s License that bears a license holder's unique, personal

information as well as stores data regarding traffic violations and

tickets issued / outstanding penalties. The e-Driver’s license

developed by NADRA allows the authorities to provide for

supplementary provisions and services. The RFID Driver’s

License enables improvements in identity verification, privacy

protection and highway safety

E-Balloting Solution It can be used for balloting / allotment of:

Residential Plots/ Housing Schemes, Lucky Draws, Prize Bonds

(By State Bank of Pakistan), Shares (IPO-Initial Public Offerings

by Public Ltd Companies). The customer can opt for all or any of

the services namely Data Acquisition, Data Verification, E-

Balloting Software

Biometric Access Control System NADRA's BACS allows,

organizations requiring high levels of security, to better manage

and monitor protection and quickly respond to security

breaches. The central paradigms of the system are the

automation of workflow, increased security, efficiency, scalability

and transparency in order to achieve a foolproof system that

ensures real time monitoring and identification of personnel

movement and creating a log for future references

Overview of the E-Business Applied to Various Types of

Organization in Pakistan

Banks All the businesses are dependent upon banking services for their

operations. If these banks today are not using internet and other

technologies, then the automation and virtualization of dependant firms

and businesses will not serve the purpose they are intended for

o Telecommunication The other important sector which has

been revolutionalized by the advent of internet and IT is the

telecommunication sector. In Pakistan it has been booming since

government has given the initiative to the private sector

businesses to invest in telecomm with 100% limit. Especially the

use of mobile phones for the communication purposes in the

businesses has changed the scenario of these businesses

o The Government Departments Although the majority of

government departments are still using old conventional models

of functioning, yet there is an increase in the use on internet for

various activities of these organizations. Today big governmental

organizations like, ministries, planning commissions,

universities and colleges, army, as well as other strategic

organizations are using internet for recruitment, training,

evaluation, and advertisement purposes. But still there is a lot

more to do in this respect. NADRA has helped a great deal these

organizations to automate their processes

SWOT Analysis

Strengths

Monopoly - competitive advantage

The basis of all the operations of the organization is on

advanced e-systems

The organization structure of NADRA

The integrated and huge database of NADRA

Good customer services

The availability of technical and well trained staff

Weaknesses

A governmental body

Limitations of NSRCs capability

Mistakes in documentation

Opportunities

The automation of business and use of information

technology to capture new customers

NADRA is providing the e-business solutions to many local

as well as foreign organizations

Threats

Low literacy rate and backwardness of the population

Political influence of the sitting political party

Dependence on foreign communication satellites

Conclusion

Although the Internet is less than 30 years old, its impact on

society has been astronomical. Pakistan as a third world country is

behind other developed world in all the fields as well as the field of

information technology. Thus there is a great need to develop the IT

infrastructure of the country on war footing. The national IT policy

of Pakistan is serving our purpose well.

Recommendations

NADRA’s SRCs and other registration facilities should be

reorganized and equipment and staff at these facilities should be

increased to efficiently handle the number of customers coming

to these sites

The procedure for the correction of mistakes and errors in the

documents should be reconsidered and be made fast

Creating the awareness and importance of IT

Persuading all sectors of the society to realize the importance of

IT and their specific role to play and developing IT awareness

institutes in various parts of the country on a war footing basis

Developing a contributing chain mechanism in which each

segment should play its specific role and making Internet

available to all such areas where it is still an alien's domain

Establishing all the government departments on virtual or online

basis will certainly improve the e-business in Pakistan