Presentation at eGov Summit in Hong Kong, Oct. 8, 2010

1. Next Generation e-Government: The Cloud and Beyond Oleg Petrov, Program Coordinator, e-Development Thematic Group, Global ICT Department, The World Bank E-Government Summit Hong Kong, 8 October 2010

2. Outline The E-Gov Story: from Computerization to e-Transformation Key Aspects of e-Gov 2.0 Latest Technology Trends Shaping the Future Focus on G-Cloud World Bank’s Support for e-Government

3. E-Government Vision: Leveraging ICT to Transform Service Delivery Some good news: India: E-services reduced bribe-payments Source: Survey of e-government projects in India, IC4D 2009 Ghana: Customs clearances went from 2 -3 weeks to 1-2 days with a 50% increase in revenue after applying IT systems. Korea: Investment of $80 million in e-procurement generated $2.7 billion in annual savings 3

4. But: ICT investments are also risky Partial Failures 50% Successes 15% Total Failures 35% e-Government initiatives in Developing Countries Guardian headline: “£2bn cost of government’s IT blunders” The Economist : “Although hopes have been high and the investment has been huge, so far the results have mostly been disappointing…” Gartner Research :“On an average, $8 out of every $10 spent in IT is “dead money” – not contributing directly to business change and growth”. Risks are high, though a lot learnt since the early days Key lesson: Smarter IT spending needed Source: Richard Heeks. 2003. “Most e-Government-for-Development Projects Fail: How Can Risks be Reduced?”. IDPM i-Government Working Paper no. 14

5. Old Model: e-Government 1.0 High Costs – Limited Results E-Gov 1.0 = Informatization: Computerizing the “Brick and Mortar” (industrial age) government Technology/supply/vendor-driven Ignoring or reinforcing organizational silos Limited back-end integration and sharing of data, infrastructure and services Limited process re-engineering that does not leverage the full power of ICT Limited change management Limited participation of the citizens and private sector

7. Funded by the World Bank, implemented by the Government -- US$30 million

8. Incorporated 32 Ministries in 10 Regions and across 140 Districts

9. However, not integrated with the rest of the government and now being scrapped

10. A new IFMIS system is now being implemented at a cost of US$54 million.6 Recent Example from Africa: Silos Don’t Work

11. We can implement post-facto interoperability, but we get a “Spaghetti of interdependencies” among Government applications. Difficult to maintain. 7

12. Move to a situation in which technology allows you to share services and infrastructure

13. Sharing Services and Infrastructure Shared e-Gov Services:Think Modular

14. Service-Oriented Architecture Services: Before Services: After

15. New Model: e-Government 2.0Maximizing Transformational Impact of ICT E-Gov 2.0 = eTransformation– next-generation model of ICT-enabled govt transformation into open, participatory, citizen-driven and highly integrated government: Breaking down organizational silos, creating horizontal, whole-of-govt structures, standards, communities and practice groups Comprehensive back-end integration and sharing corporate services and systems Comprehensive process re-engineering that leverages fully the power of ICT (rethinking government in the information age) Comprehensive change management (“the human factor”) Active participation (co-creation) of the citizens in policy and decision-making and service design and delivery (Open Government paradigm) Government letting go and empowering innovation and public-private partnerships (Government as a Platform paradigm)

16. Key Aspects of e-Gov 2.0 Citizen-centric and driven approach (focus on the demand side, using Web 2.0, open data): USA, UK, Australia, New Zealand, Canada Sharing infrastructure and services, including via Cloud Computing: UK, US, Singapore, Australia, Canada, Korea, Japan, Denmark, New Zealand Whole-of-government perspective: Singapore, US, UK, Australia, Canada Maximum openness, transparency, and accountability: US, UK, Canada Public-private partnerships: US, India, Ghana, Czech Republic, Estonia e-Inclusion-for-all & Multi-channel delivery of services, especially via mobile phones, also call centers, single window centers and web portals: Canada, Brazil, Australia, Korea, UK, Singapore, India Change management and e-leadership from the very top of Government with the growing role of CIOs as key enablers and empowering civil servants to act as change agents: US, UK, Australia, Singapore, Canada, Estonia, Moldova, Sri Lanka, Rwanda, Korea Process re-engineering/admin reform before automation: UK, USA, Canada, Singapore, Estonia Secure identification: Belgium, Portugal, Estonia, Malaysia, Pakistan 12

18. The CLOUD

19. Gartner: Cloud Computing is at the Peak of Inflated Expectations

20. Open Data: USA

21. Open Data: UK

22. Government Apps Store: USA

23. Government Apps Store: UK

24. Mobile phones are the single largest delivery platform in the world Governance & Social Development Business Registry Collateral Registry Largest Ever Delivery Platform > 4 Billion Mobile Phones e-Customs Civil Registry e-Taxation Land Registry Motor Vehicles Registry Credit Rating

25. Future is Mobile 4.8 billion mobiles 176.1 million connections added in the first quarter of 2010 Nearly 60 million mobile subscriptions being added a month 160 percent increase in mobile data traffic over the past year 2.4 times faster growth in mobile broadband than fixed broadband data traffic By 2014, more than 400 million of the world's Internet users could access the network solely through a mobile connection Source: Wireless Intelligence, Q1 Quarterly World Review and ITU, Measuring the Information Society, 2010; Cisco Visual Networking Index Forecast, 2010.

26. Percentage increase in GDP with every 10% increase in ICT penetration Source: World Bank, ICT4D 2009 report

27. 80 67.0 Mobile 70 60 50 Per 100 inhabitants 40 30 25.9 Internet users 20 17.8 Fixed 10 9.5 Mobile broadband Fixed broadband 7.1 0 98 02 04 05 06 07 08 09 99 2000 01 03 Source: ITU, Measuring the Information Society, 2010 Explosive Growth of Mobile Phones

28. Rapid Growth in Global Mobile Data Traffic Exabytes per month Source: Cisco VNI Global Mobile Data Traffic, 2010

29. Next in Services: Context Aware Services Anywhere, anytime, any device Future is mobile Open standards Modular development of applications (aka Service Oriented Development of Applications or SODA) Business analytics Sensor technologies Source: adapted from ITU, 2010

30. What is cloud computing?Different definitions in scope and content

31. Cloud computing delivery models Software as a Service (SaaS) The capability provided to the consumer is the use of the provider’s applications running on a cloud infrastructure and accessible from various client devices through a thin-client interface such as a web browser Platform as a Service (PaaS) The capability provided to the consumer is deployment onto the cloud infrastructure consumer-created applications using programming languages and tools supported by the provider Infrastructure as a Service (IaaS) The capability provided to the consumer is the provision of processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications

32. NIST: Cloud Computing Deployment Models Private cloud The cloud infrastructure is operated solely for an organization Community cloud The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns Hybrid cloud The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability Public cloud The cloud infrastructure is made available to the general public or a large industry group + ……. + …

34. total local government worldwide ICT spend will grow to more than $179bn

35. combined, the ICT spend is expected to exceed $423bnSource – www.data.worldbank.org

36. Key Benefits of G-Clouds

37. Country Examples:USA In September 2009, the Federal Government’s Cloud Computing Initiative was announced, GSA serving as a provisioning hub for Government Cloud Apps.gov was established as a “cloud computing storefront” About a half of US governmental agencies use some cloud computing technologies By 2014, over $1 billion of the federal IT budget would be devoted to cloud computing By moving to a cloud service, GSA now pays an annual total of $650,000 for USA.gov and all associated costs, a costs savings of $1.7 million, or 72 percent Defense Information System Agency estimates about $15 million in cost savings The migration to the Cloud could save Washington D.C. City Government 48% on e-mail expenditures and the City of Los Angeles 23.6 %

39. All G-Cloud services will be delivered to the future ‘Common Desktop’ which will include both desk based and mobile devices

40. The G-Cloud will be a combination of the private cloud and trusted elements of public clouds- The G-Cloud Program is expected to deliver the following savings: £300 million per annum (by 2015) by consolidating data centres in use across the Public Sector against estimated current spend in the order of £5bn; and £500 million per annum (by 2020) against an estimated current spend in the order of £5bn, through faster and more effective procurement of infrastructure and services through the Applications Store for Government (ASG).

42. Developing the KC in stages by 2015

43. The Ministry of Interior and Communication is responsible

44. The KC will enable various ministries to collaborate, integrate and consolidate hardware and create platforms for shared functions

45. Existing back office systems, such as payroll, accounting, and personnel management, will be virtualized and hosted in the private cloud. Some front office systems, such as electronic procurement, will be virtualized to a public cloud - The KC will use green technology to help cut costs. The data centers will be built in cold regions, will use wind and solar power, will run on DC power, and may be placed underground where temperatures are stable

47. South Korea is moving 17 critical applications to the Government Cloud

48. The Government’s aim is to stimulate the development of the Korean cloud computing market

49. A further benefit is that government agencies can use the onshore cloud capabilities to reduce in-house ICT costs – overcoming the reluctance of agencies to use offshore clouds

51. During its transformation the ABS went from more than 300 physical servers to 70 which are now hosting around 1500 virtual machines

53. in the initial phase to use some kind of private cloud to support government capabilities

54. Office of Government Chief Information Officer as potential cloud supplier to government departments

55. Hong Kong government will use cloud computing to:

56. facilitate internal collaboration

57. facilitate communication within the government, government-citizen and government-businesses

58. facilitate information management - record keeping for instance

60. Internal (private/community) government cloud, defined as a multitenant, dynamically provisioned and optimized infrastructure, with some public cloud elements

61. Will initially be a Mini-cloud, and will incorporate a Mobile applications platform

62. Will target three categories i) government ministries, SOEs, departments and agencies (ii) SME engaged in the development and delivery of IT services (iii) universities for research and development

63. About Us: Strategic Themes Focus on 3 inter-related strategic themes… The introduction of information and communication technologies to improve the delivery of public and private services. ACCESS TRANSFORMATION INNOVATION The use of information and communication technologies in transforming traditional sectors and creating innovative new sectors.

64. About us: What we do… Sector reform: Bank active in 105 countries in last 10 years, infoDev’s regulatory toolkit and Open Access research PPPs for backbone infrastructure: IFC-led EASSy Project (22 countries, 30 operators, 4 other DFIs) in Africa – Bank-led Regional Communications Infrastructure Program (RCIP) Wireless: IFC financing have so far contributed to 225 million mobile subs Infrastructure: IFC financing for Shared towers (Turkey and Brazil); Bank support for rural infrastructure (India, Sri Lanka); New broadband solutions: WiMax (Ukraine, Uruguay), Cameroon / Central Africa (Pipeline), West Africa (Electricity Transmission), Broadband wireless (Afghanistan) ACCESS Banking the unbanked: IFC support to m-banking -WIZZIT (South Africa), Digicel in Caribbean, Millicom; infoDev’s m-banking knowledge map and research e-Government: Bank support in Vietnam, Ghana, Mongolia, Kenya; IFC support to Sonda (Chile), IBS (Russia), Meteksan (Turkey), Chinasoft; infoDev’segovernment toolkit e-Health: Investing in cellular-based health systems, Voxiva (Africa – LAC), health data management Education: IFC support to Socket Works (Nigeria), new Bank-led ICT Skills development Initiative, infoDev’s ICT in education toolkit in partnership with UNESCO Partnerships and Knowledge: M-Banking Conference (GSM Assoc., DfID, CGAP), Industry Partnerships, e-Transform Initiative, e-Development Thematic Group TRANSFORMATION Suporting the growth of IT/IT enabled service industry: Bank’s support in Ghana, Mexico, Kenya, Sri Lanka; infoDev’s research on ITES industry and IT parks Cellular Distribution Facility: IFC- financed working capital facility program offering local banks creditline to cellular distributors to buy bulk airtime aimed for retail market Supporting the development of an ICT-Enabled innovation network: Leveraging infoDev’s business incubator initiative, which provides financing and TA to over 150 incubators for 9000 MSME businesses in 75 countries Supporting the development of holistic ICT policy frameworks: Increasingly developing countries are recognizing the linkage between innovation and economic development and GICT is working with several countries Creating systems of innovations: DFID Low Carbon Innovation Centers, clean energy innovation centers (with ESMAP and the Bank's Energy Sector) INNOVATION

66. The World Bank’s Standalone ICT/eGov Projects Kenya. US$157 million for pro-competitive regional communications infrastructure, regional policy harmonization, enabling environment, e-Government applications. Several phases, from 3 – 25 countries. Vietnam. US$96 million for implementation of the National ICT Strategy, enterprise architecture, e-applications, capacity building. Mexico. US$80M for IT-enabled services industry development. Romania. US$60 million for developing e-Government, Broadband and Knowledge Economy. Ghana. US$57M for e-Government and IT-enabled Service Industry. Sri Lanka. US$53M for developing e-Government, Broadband, IT industry and e-society. Organization of Eastern Caribbean States. US$7 million for regional e-Government applications that use economies of scale. Rwanda. US$10 million for Government reengineering, e-Government applications, and rural access. Moldova. US$15 million for e-Transformation program (G-Cloud, Mobile apps, Apps store, e-procurement and open data)

67. E-Transform Initiative OPPORTUNITY WHAT ARE WE TRYING TO ACHIEVE? Average number of trips saved by citizens to government offices due to e-services in India Accelerate ICT-enabled government transformation Build Government capacity to manage IT projects, help Governments spend their IT dollars more efficiently Showcase best practice Connect practitioners with implementers & experts Technical assistance for project design and enabling environment Finance firms willing to competitively partner with govts: PPP models eTransform Video on Youtube: http://www.youtube.com/watch?v=rrRIAcvC-Ks Waiting time saved for citizens at government offices due to e-services in India Source: Survey of e-government projects in India, IC4D 2009

68. Beyond the traditional Bank’s business model

70. This unique group aims at implementing new breakthrough initiatives and efficient processes and services within nominated countries, through targeted advisory work, shared knowledge base and tools/resources that demonstrate the value of proven approaches to government transformation

71. John Suffolk (Government CIO, UK)

72. Andrea Di Maio (VP Research Gartner)

73. Corinne Charette (CIO Canada)

74. Stephen Fletcher (President NASCIO, USA)

75. ArvoOtt (Director, eGovernance Academy, Estonia)

76. James Kang (Government CIO, IDA Singapore)

77. Francisco Garcia Moran (Director General, European Commission)

80. H.E. Mart Laar, Former Prime Minister of Estonia, Member of the Estonian Parliament

81. Mr. Andrea Di Maio, Vice President and distinguished analyst, Gartner Research

82. Mr. Chin Siong Seah, CEO, IDA International, Singapore

84. Thank you! Oleg Petrov, Program Coordinator, e-Development Thematic Group, Global ICT Department, World Bank/IFC opetrov@worldbank.org