Enabling an Informatised Society: The CITA Acculturation Process

1. Conference on Research Management The Culture of Research: Tradition of Excellence Banquet Hall, Level 5, Central Complex, IIUM Gombak, Kuala Lumpur 9 - 10September 2003 Enabling an Informatised Society: The CITA Acculturation Process Dr. KJ John Vice President 10September 2003

2. Contents • The Knowledge Age and ICT • Industrialisation of ICT & Informatisation of Society • The CITA Acculturation Process • A CITA Case Study: SLGGA • CITA’s Value Proposition • Issues and Challenges • The Way Forward

3. Value-Based Knowledge Society People Are Integral Knowledge Society Economic ICT as Enabler Governance Information Society Societal K-Malaysia Context of NITA 2005 2010 2020 K-Malaysia: Three Phases of Migration • Moral & • Competitive • Knowledge • Economy • Corporate • Citizenship • Value • Creating • Knowledge • Products & • Services • Citizen-CentricGovernance • ICT as a • Sector & • Information • as a • commodity. • Infusion of Good Governance • Development of Informed Citizenry • Access to Information • Culture of Lifelong Learning and Innovation • United, Moral and Ethical Society • Sustainable QoL * Note: Development is Non-Linear

4. The Knowledge Age Factors of Competitiveness capability assets - individual - organizational knowledge tacit & explicit technology labour capital & tools labour technology capital & tools process Industrial Age value model Knowledge Age value model The relative importance of capital and tools has diminished significantly in the Knowledge Age, while people with knowledge, technology, and business processes have become much more important Source: Miller and Morris. Fourth Generation R&D. Pub. John Wiley & Sons. 1999, pp. 162.

5. The Unique Characteristics of ICT • ICT increases efficiency and hence, reduces costs • creation of new products, services and distribution channels within traditional industries, as well as innovative business models and whole new industries • initial investment being just a fraction of what was required in the more physical-asset intensive industrial economy, barriers to entry are significantly lowered, and competition increased • ICT facilitates disintermediation • users can acquire products and services directly from the original provider, reducing the need for intermediaries • creation of so-called ‘markets of one,’ leveraging ICT's potential to cater to the needs or preferences of users and consumers on an individual basis • ICT is global • Through the creation and expansion of networks, ICT can transcend cultural and linguistic barriers by providing individuals and groups the ability to live and work anywhere, allowing local communities to become part of the global network economy without regard to nationality, and challenging current policy, legal and regulatory structures within and between nations. These characteristics suggest that ICT has the potential, if conceived as a means and not an end in itself, to be a powerful enabler of development

6. The Dual Role of ICT in National Development ICT as a Sector ICT as an Enabler Development and/or strengthening of ICT-related industries such as computer hardware, software, telecomm equipment and ICT-enabled services Eg. Multimedia industry, E&E industry Adoption of holistic, cross-sector strategies which aim to harness the uniqueness of ICT to accelerate a wider development process Eg. Health, Education, Banking Informatisation of Society Industrialisation of ICT

7. The South Korean Experience: a Lesson to Heed “[in the] last decade, Korean government has succeeded in building broadband backbone network and high speed Internet network to [link] businesses and households across country. … the percentage of Internet users … 7 years or older is 56.6% and 10 million households are connected to high speed Internet service network. The annual growth rate of information technology industry in Korea is 16.4% for last 5 years and the portion of IT industry in Korea’s GDP is 13.4% in 2001. But Korean society and business have changed little for last decade. There are still lots of room to improve creativity, transparency, efficiency, participation and so on; the values which an information society [ought to be] quipped with. To [our] disappointment, the wonderful achievements in information technology and facility have not resulted in the innovation in business, education, and government.“ Dongwook Kim, PhD. Director Knowledge Center for Public Administration & Policy Graduate School of Public Administration Seoul National University October 7, 2002 Realisation of K-Malaysia will depend on balanced ‘industrialisation’ and ‘informatisation’

8. The CITA Acculturation Process

9. CITA value chain: the equivalent components The Innovation Value Chain and the CITA Variation Innovation value chain: the major components

10. The CITA Process: Non-linear in Reality

11. Stage 1 Concept Study CITA Acculturation Process: Stage 1 Process: Idea Productization • Identifying a social problem • Identifying a target community • Reviewing attempted solutions to-date • Researching the theoretical literature • Studying the requirements of the situation • Assessing various theories and methods of intervention and change management • Outlining preliminary specifications of proposed solution • Identifying the factors and resources required • Designing action plan with broad strategies • Specifying proposed outcomes Output of Stage 1 is a conceptual model with solution based on dimensions of technology, content and community and also a research agenda

12. CITA Acculturation Process: Stage 2 Process: Experimentation Stage 2 • Identifying potential multi-sector partners • Building a Community of Partner/Risk takers • Preparing more detailed specifications and cost-figures • Consulting with various experts in community devt., biz devt., financial mgt., project mgt., change mgt. • Examining the feasibility of the proposed solution • Reformulating of initial concept study • Submitting project proposal to identified funding agency • Making presentations to funding agency • Implementing the proposed project • Monitoring and evaluating project being implemented • Building community and business Proof-of-Concept Output of Stage 2 is a project demonstrating the innovative application of ICT in solving a particular community problem

13. CITA Acculturation Process: Stage 3 Process: Expansion Stage 3 • Fine-tuning or re-developing of the entire project including the strategies; methods and materials; training programme and evaluation systems. • Requiring a formally structured, systematic, experimental effort to test the value of the project with different groups or under different circumstances. • Involving repeated testing of all or selected components of the project. • Conducting comparative research based on the different tests and impact assessment • Making modifications after each test to approximate the consequences being sought • Patenting of intellectual capital created • Developing business and markets Prototype (Beta Test) Output of Stage 3 is a fine-tuned, field-tested model which is robust enough for ‘commercialisation, or adoption by an implementing agency

14. CITA Acculturation Process: Stage 4 Process: Formalisation Stage 4 • Preparing operational systems for the implementing, administrating and monitoring agencies • Disseminating information about product via publicity, seminars, conferences, publications to obtain academic, professional and administrative groups to support widespread adoption. • Promoting in trade shows and exhibition to gain brand recognition and market acceptability • Providing the consulting services and staff training so that the product will be satisfactorily adopted. Roll-out Output of Stage 4 is a formal model which can be used elsewhere with minor customisation for local requirements but with predictable results

15. A CITA Case Study – the Smart LocalGovernment Governance Agenda (SLGGA)

16. To migrate PBTs towards becoming knowledge organisations as catalysts to promote a knowledge society. To evolve and transform PBTs to become more citizen-centric, efficient, effective, responsive and transparentthrough ICT. To fast forward bridging the gap between technologically advanced and less advanced PBTst On the other hand, the objectives of the e-Local Agenda 21 component are: To enhance the current LA21 consultative process: Increase quantity and quality of participation Inclusiveness of marginalized groups in local decision-making process To be a catalyst towards building of the knowledge society Community use their knowledge towards the betterment of society SLGGA : Overview SLGGA is a blueprint for improved service deliveries and governance of the Local Government. It comprises of two components: e-Local Government and e-Local Agenda 21. The objectives of the e-Local Government component are:

17. SLGGA : Stage 1 Process: Idea Productization Stage 1 • NITC/MIMOS invited the Ministry of Housing and Local Government, KPKT) to be co-organisers of INFOSOC 2002 Conference, themed: ‘Knowledge Initiatives Towards Good Governance’. • Based on the Conference resolutions, NITC/MIMOS initiated the SLGGA first-cut draft concept, which focused on migrating the 144 Local Governments (PBT) towards becoming citizen-centric, efficient, effective, responsive and transparent through ICT. • A series of awareness dialogues, consultation workshops and consensus building meetings involving KPKT and selected Local Governments (PBT) were held to get feedback and buy-in. • An e-readiness survey was conducted, the findings of which also contributed to the SLGGA concept. Concept Study

18. SLGGA : Stage 2 Process: Experimentation Stage 2 • SLGGA concept plan comprised of 2 parts: e-LG (e Local Government) and e-LA2 (e Local Agenda 21). • The e-LG component was again broken into three action plans i.e. Level 1 for Beginners PBT, Level 2 for Adopters, and Level 3 for Leaders. • Proof-of-concept for the following projects were developed through discussions with specific Local Authorities and their respective technology partners, facilitated by SiGMA (MIMOS): • Partial Level 1 model adopted from the Selangor State Portal (Gerbang Mesra); • 1 e-LA21 project for the Ipoh Municipal Council; • 3 Projects under Level 3 i.e. the e-Submission Plans for Kulim Hitech and Sepang, and one online development planning project for Penang. Proof-of-Concept

19. SLGGA : Stage 3 Process: Expansion Stage 3 Prototype (Beta Test) • The prototyping for the four projects mentioned under the proof-of-concept were carried out under a Demonstrator Applications Grant Scheme (DAGS).

20. SLGGA : Stage 4 Process: Formalisation Stage 4 • SiGMA (MIMOS) advised KPKT to adopt the prototype for national roll-out, using two approaches: • Funding by KPKT • The promoter of the prototype develops the business model. • Currently, Level 1 is in the process of national roll-out where the implementation strategy is to breakup the 144 PBT by zones, conduct road-shows and workshops, and make minor customizations, training and full implementation. • Involves KPKT’s endorsement and budget. Level 1 project road tour is on-going for website building and standardising the forms used by PBTs in every state. • The rolling-out of Level 2 projects is pending, waiting for approval from KPKT. • Two projects under Level 3 are ready to be rolled-out throughout Malaysia i.e. i-Demmos by MBI and e-LAMs by MPPP. Still in discussion for roll-out strategies. Roll-out

21. CITA’s Value Proposition

22. Limited Knowledge & Experience of Government ICT Personnel Generally Favors Established IT Vendors Long Processing Time Excludes Evolutionary Approach More appropriate in well-defined/ proven areas of ICT applications Community Needs Not Central Traditional Procurement Model: Shortcomings

23. CITA’s Value Proposition • Traditional Procurement Model • Provider of funds controls project activity. • Solutions must react to specific problems - in a bureaucracy this means several incremental solutions to address a general problem. • Each agency / authority / individual must play the role of either buyer or seller - so the final solution is a series of commercial transactions. • Once initiated, deliverables are measured against the starting point - not the end goal. Progressive or apparent irrelevance cannot be corrected. • CITA Model • Funds provided by uninvolved party, so project proponents drive project activity. • Solution can be conceptualised ‘ideally’, and independent of existing bureaucracy. The singular goal to solve the general problem. • All players form a single, goal-orientedProject Community, unencumbered by a commercial constraint to achieve any goal other than the singular communal solution. • Project is measured against the end goal. Hence the project can ‘evolve’ to exploit unplanned opportunities and avoid unforeseen problems.

24. Issues & Challenges and the Way Forward

25. Issues and Challenges: Project Implementation Project champion or project driver SFs Tri-sectoral partnerships Community participation and ownership Focused, clear objectives, clearly defined problems and opportunities Long-term sustainability

26. Stage 1 Stage 2 Stage 3 Stage 4 Issues and Challenges: Funding (#1) • Only DAGS is available for ‘informatisation’ projects • However, DAGS supports only up to Stage 2 • No support is provided for Stage 3 • No funding available • Business building capacity is lacking • Funding for Stage 4 depends solely on market forces • The market forces represents societal uptake & commercial value potential Concepts proved at Stage 2 have to be nurtured into prototypes to ensure successful commercialisation and roll-out

27. Stage 1 Stage 1 Stage 2 Stage 2 Stage 3 Stage 3 Stage 4 Stage 4 (1) Govt. grants for early stage funding (2)Repayable interest-free loans from multi-sectors (3)Loans at competitive rates/equity or quasi-equity financing End-to-end funding for the CITA Process – a way forward Issues and Challenges: Funding (#2) GAP Traditional Funding Market Forces Funding The gap in the financing of ‘informatisation’ projects is at Stage 3 – prototyping or beta.

28. The Way Forward • Need to • nurture a culture that celebrates innovation and change • bring culture and change to the lowest levels • enable and empower change from ground up • also encourage risk-taking and celebrate ‘failure’ as ‘learning’, not as shame • provide a ‘strategic direction’ for all the bottom-up change processes via a strategic roadmap for technology and application development

29. THANK YOU Email: kjjohn@mimos.my http://www.mimos.my