E-Government Dynamics

It was Sterman’s (2000) book entitled “Business Dynamics: Systems Thinking and Modeling for a Complex World” that introduced the term business dynamics. Business dynamics is concerned with learning in and about complex systems. Effective decision-making by growing dynamic complexity requires executives to become systems thinkers – to expand the boundaries of their mental models and develop ways to understand how the structure of complex systems creates behavior. We start this chapter discussing how to overcome barriers to E-Government. Then we present a framework for assessment of E-Government projects. In the context of system dynamics, we discuss causal loop diagramming, modeling and organizational performance.

Stages of E-Government Interoperability

Improved interoperability between public organizations as well as between public and private organizations is of critical importance to make electronic government more successful (Pardo & Tayi, 2007; Wang, Song, Hamilton, & Curwell, 2007). The mobilization of electronic information across organizations has the potential of modernizing and transforming information exchanges. The current information exchanges are, however, often inefficient and error-prone (Eckman, Bennet, Kaufman, & Tenner, 2007). Exchanges of information and services are fragmented and complex, dominated by technical as well as organizational problems. High-ranking issues among the defining purposes of e government are highly agile, citizencentric, accountable, transparent, effective, and efficient government operations and services (Scholl & Klischewski, 2007). For reaching such goals, the integration of government information resources and processes, and thus the interoperation of independent information systems are essential. Yet, most integration and interoperation efforts meet serious challenges and limitations.

Frameworks for Aligned Development

Alignment is the adjustment of an object such as a system, a procedure or a process in relation with other objects so that they work better together. For example, strategic alignment refers to business structure and information technology fit in relation to business strategy and external environment. When alignment is attained, then an organization improves its relative performance as compared to other organizations.

The Role of the CIO

The CIO can be defined as the highest-ranking IT executive who typically exhibits managerial roles requiring effective communication with top management, a broad corporate perspective in managing information resources, influence on organizational strategy, and responsibility for the planning of IT. This definition is in line with research; which applied the following criteria when selecting CIOs for empirical observation: i) highest-ranking information technology executive; ii) reports no more than two levels from the CEO, that is, either reports to the CEO or reports to one of the CEOs direct reports, iii) areas of responsibility include information systems, computer operations, telecommunications and networks, office automation, end-user computing, help desks, computer software and applications; and iv) responsibility for strategic IS/IT planning. The CIO plays a vital role in every interoperability project in digital government. There may be a CIO in each involved public agency as well as a CIO for the whole of government. For example in Hong Kong, there is an office of the government chief officer, which developed the interoperability framework for all agencies and other public organizations to follow (2007).

Governance Structure for Alignment

Given the political nature of back-office integration, should cross-organizational back-office integration be seen as a command and control challenge or a process management challenge? This question was phrased by Bekkers (2007), who found that comparative case studies primarily have shown that integration is the outcome of a process, in which offices have been able to create a shared understanding about the necessity of integration and in which conflicting rationalities, with their own core values, internal logic and legitimacy, have to be weighted against each other. Bekkers (2007) argues that it is a goal-searching, incremental process, which should anticipate a changing political agenda in order to gain support. Understanding is reached through the ongoing recognition of the interdependencies among back-of- fices, and as a result of a focus on the content of the problem and not on jurisdictions and costs. Trust and political and legal pressure are the drivers that facilitate this process. Co-ordination in terms of governance has to consider a mix of conflict and co-operation.

Information Resource Integration

If a region or nation is to make the best use of its information assets and reduce duplication in gathering data, information sharing across the public sector is essential. For example, from tracing the origins and spread of foot and mouth disease to locating crime hot spots for law enforcement, geographic information systems have become indispensable for effective knowledge transfer within both the public and private sector. The potential importance of GIS is indicated in recent studies. For instance a recent US study showed that projects, which had adopted and implemented geospatial interoperability standards had an ROI (return on investment) of 119%, which means that for every dollar invested, there were annual cost savings of more than a dollar (Cabinet Office, 2005).

Strategic Planning for Alignment

Developing a strategy for E-Government interoperability is taken to mean thinking strategically and planning for the effective long-term application and optimal impact of electronic information to support knowledge work and service provision in government agencies. Strategy can simply be defined as principles, a broad based formula, to be applied in order to achieve a purpose. These principles are general guidelines guiding the daily work to reach business goals. Strategy is the pattern of resource development and application decisions made throughout the organization. These encapsulate both desired goals and beliefs about what are acceptable and, most critically, unacceptable means for achieving them.

Resource Theory of Organizations

The resource theory of organizations is an influential theoretical framework for understanding how efficiency and effectiveness within organizations are achieved and how advantage might be sustained over time. This perspective focuses on the internal availability of resources in organizations. The theory assumes that organizations can be conceptualized as bundles of resources that those resources are heterogeneously distributed across organizations, and that resource differences persist over time (Eisenhardt & Martin, 2000).

Value Configurations of Organizations

To comprehend the value that information technology provides to organizations, we must first understand the way a particular organization conducts business and how information systems affect the performance of various component activities within the organization. Understanding how organizations differ is a central challenge for both theory and practice of management. For a long time, Porter’s (1985) value chain was the only value configuration known to managers. Stabell and Fjeldstad (1998) have identified two alternative value configurations. A value shop schedules activities and applies resources in a fashion that is dimensioned and appropriate to the needs of the client’s problem, while a value chain performs a fixed set of activities that enables it to produce a standard product in large numbers. Examples of value shops are professional service organizations, as found in medicine, law, architecture and engineering. A value network links clients or customers who are or wish to be interdependent. Examples of value networks are telephone companies, logistic and postal services, retail banks and insurance companies.

Electronic Government Interoperability

Digital government, E-Government, and E-governance: all are terms that have become synonymous with the use of information and communications technologies in government agencies. Regardless of the label, digital government has become a prominent strategy for government administrative reform. E-Government projects can potentially increase the quality of government services, generate financial savings, and improve the effectiveness of government policies and programs (Pardo & Tayi, 2007).