Lithuanian e-government Workshop with MicroLink Group and SAP AG

1. Lithuanian e-governmentWorkshop with MicroLink Group and SAP AG Vilnius Jan 24, 2001

2. MicroLink’s overview • The largest Baltic IT and internet company • Sales in 2000 – EUR 60 million (2 m EUR in Lithuania) • 750 employees, 70 in Lithuania • The only truly pan-Baltic IT company • No. 1 system integrator, No. 1 PC maker, No. 1 internet provider, No. 1 portal in the Baltics • Activities in Lithuania: Delfi Internet, Delfi portal, sales of PCs and telecom equipment, large IT projects • Major growth planned in Lithuania for Y2001 • Lithuania is becoming the Baltics’ biggest IT and internet market by 2003

3. Overview of SAP AG • 3rd largest software company in the world • Global company with headquarters in Germany • The world’s leading enterprise and government software maker • Sales in 9 months 2000 - 5.5 billion EUR • 24000 employees • SAPMarkets: Subsidiary of SAP focusing on B2B and internet • Clients in Lithuania: Ekranas,

4. Today’s agenda • Lithuania.com: MicroLink’s vision in e-government issues with experience from Estonia and Latvia • Allan Martinson, CEO MicroLink • Riina Einberg, project manager, MicroLink Systems • Antra Zalite, head of Enterprise Applications, MicroLink/Fortech • Teleconference with Estonian prime minister’s IT advisor Linnar Viik • SAP’s vision and experience in e-government. E-procurement and citizen portal • Natalia Parmenova, business development manager, SAPMarkets

5. Lithuania.com:How to dot-com a country ?

6. Why to change ? • A state is a service provider for its citizens • Citizens pay for the service by paying taxes and expect the most value for their money • A small nation-state is an “expensive hobby” • E-government’s only goal is to help the state to fulfil its functions better • E-government must deliver more value for less money for its citizens

7. Why e-government ? • All previous historic improvements of governments and societies required high investments, but gave slow and limited return • Information era and internet open possibilities for radical improvements with relatively little investment, but quick and virtually unlimited return. • A government is a large information-processing task. • MicroLink’s estimate: 20% of Estonian state budget is spent on gathering, managing and keeping information

8. 3 crucial components of e-society • Access • Attitude • Content & Services

9. Access and availability • If there are no people in the Net, e-goverment makes no sense • Metcalfe’s Law: The value of the network is a square of the number of people in the network (N²) • 100000 people in the Net can make 10 billion connections. • 1 million people in the Net can make 1 trillion connections • E-society starts to evolve fast at 10% penetration • Lithuania is just passing this mark

10. Internet penetration in the Baltics

11. How to boost penetration ? • Estonian experience: The government cannot force people to the Net, but it can help to take down barriers • Booster No. 1: Connect the public sector • Booster No. 2: Liberate telecom market fast regardless of what the old telco says

12. Connect the public sector • Estonian experience: • Tiger Leap project (since 1996) • 100% of schools with computers (25 children per PC) • 100% of schools with internet connection (75% with permanent connection) • 16 m EUR spent in 4 years • 100% of public sector connected • 20000 workplaces connected • EEBone (govt.), Village Road (local auth.) projects • ~100 public internet points all over Estonia

13. Liberate telecom sector • Estonian free telecom market – first in the Baltics, but Lithuania not far away (2003) • Impact was felt already in autumn 1999 (free internet) • Internet usage jumped >50% in one month (October 1999) • Internet dial-up traffic per capita (minutes, 1999) • Est 496 Lat 60 Lit 70 • Internet dial-up minutes in month (ML estimate): • Estonia 60 million • Latvia+Lithuania 50 million

14. New initiative – beat Finland by 2003 • Private initiative to be announced in February • Main sponsor – Hansabank (100 m EEK = 25 m LTL over 3 years) • Target – to beat Finland in internet penetration in 3 years (become No. 1 in Europe ?) • Target groups: bluecollars, farmers, pensioners etc • MicroLink’s initiative: bring most companies online by 2003

15. 3 crucial components of e-society • Access • Attitude • Content & Services

16. Attitude & marketing • An often-forgotten component of building e-society • Internet needs face and name • Attitude comes from opinion leaders • Estonian examples: • Linnar Viik, Prime Minister’s IT advisor – Tiger Tour • Prime Minister Mart Laar – paperless government meetings, e-cards by Christmas • President Lennart Meri – patron of the Tiger Leap project

17. Mart Laar’s Christmas card ‘2000

18. 3 crucial components of e-society • Access • Attitude • Content & Services

19. Content & Services • The most important component • The actual reason to be in the Net • Private sector creates most of the content • E-banking (~25% users among adult population) • Leasing (25% of the leasing deals over net) • Mobile parking (10000 users in Tallinn) • New media • E-billing (gas, electricity, telephone) • Business-to-business applications • etc

20. Core principles of building e-government • Focus on well-defined projects, not to do all things for all people • Huge effect can gained through small efforts (80:20 principle) • Try not to overregulate, even in the government – all the best things in e-government have been done “accidentially” and based on local initiative • ... but have clearly defined power and vision center with “licence to kill” overseeing the e-government

21. Government portal • All government branches, municipalities in the Net • All officials have e-mail and must answer to it • Very wide range of government information is public in real time • Required by the Public Information Law (2000) • Centralized government portal (www.gov.ee) • Next step: Personalized citizen portal • Oriented on public services, not just listing contacts • Government IS a portal with physical front-end, not vice versa

22. E-tax department • Classical case of “unpunished initiative” • Online tax declarations in cooperation with banks in 2000 (7% of the declarations presented online) • Reduced time of inputting and checking data • Less time spent by taxpayers • Outsourced server management • Tax department’s server and databases managed by MicroLink Systems following public tender

23. Paperless government • (Almost) all state institutions use internet-based document and workflow management systems • The cabinet of ministers decided to get rid of papers in August 2000 • Project completed in 1 month • Cost: 0.7 m LTL • Payback time: 1.5 years

24. Digital signature • Law adopted in December 2000 • The government will launch own PKI authority + private ones • No real use of digital signature yet • The private sector (banking) will probably be early adopter • E-notarius

25. E-elections • Current experience: Election results gathered and published using internet (parliamentary and local elections in 1999) • Law on elections amended in 2000, allowing next general and local elections to be held over internet (2002-2003)

26. State registers • Current status: no effective central administration of registers, limited cross-usage • Project on creation of uniting layer of registers allowing online cross-usage (XML) • One register fully managed by private company (Estonian Central Depositary)

27. E-procurement • Goal to move all government tenders to internet by 2003 • More on e-procurement ideas in SAPMarkets presentation

28. Conclusion • There is no manual on building an e-government: Everybody is looking for answers • Lithuanian e-government concept is very clear and radical document • No other Baltic government has been so open in discussions of the e-government concepts • We wish you all the luck and are anxious to participate... • ... because we like it !