E-GOVERNANCE & ERP

CHALLENGES AND
STRATEGIES

Presented by:
Kushal A. Shah (417)
Ankit Poddar (115)
Yeshi Chaudhary (406)
Manish Kumar (111)
Ishavasyam Dash (423)
 E-READINESS- INDIAN STATES

Karnataka, Tamil Nadu, Andhra Pradesh,Maharashra,

Chandigarh

Leader

Kerala, Gujrat, Goa, Delhi, Punjab, Haryana

Aspiring
Leaders
West Bengal, Pondicherry, Madhya Pradesh

Expectants

Uttar Pradesh, Chattisgarh, Orissa, Sikkim,

Himachal Pradesh, Rajasthan
Average Achievers

Mizoram, Jammu and Kashmir, Assam, Meghalaya,

Uttaranchal, Jharkhand
Below Average Achievers
Lakshadweep, Manipur, Tripura, Arunachal Pradesh,
Andaman & Nicobar Islands, Bihar,
Least Achievers Daman & Diu, Dadra & Nagar Haveli, Nagaland

Source: NCAER E-Readiness Report 2004

 Literature Survey on
Implementation of e-governance
Most Governments have not changed their processes, they have
automated flawed processes

Government budgets and administration tends to be in departmental

silos

Too much attention to citizen portals, difference between website and

integrated service delivery

Underestimation of security, infrastructure and scalability of applications

impacts QoS
 “Make Government Businesslike”
NOT Making Government Like Business

STRATEGY FOR CITIZEN SERVICES

CAPTURE the Private Sector Profit While keeping Govt’s Social
Motives Responsibility
 Customer orientation  Public orientation
 Efficiencies  Equality and justice
 Management Practices  Affordability
 Financial Resources  Accountability
 HR Talent
 Objectivity
 Entrepreneurship
 Transparency
Ultimately Financial Motive is the Single Biggest Success Driver

Treat EG Projects as Infra Projects

Underlying Build PPP for Individual Projects
Principle Private financing wherever possible
Govt. financing where necessary
 ES BENEFITS
Enterprise
Solutions

Standardize
HR
information

Integrate
Reduce
Financial
inventory
Information

Standardize
Integrate
and speed up
operational Customer order
information
processes
 E-Governance in Employment Directorate

• The Directorate of Employment has been

included under National e-Governance Plan as a
Mission mode project
• Under that project, NIC has developed a web
based software for all the activities of
Employment Exchanges which will run in open
source software
• The software was already successfully installed
at P&E Exchange of Directorate of Employment
on trial basis
 E-Governance in Employment Directorate

• Information of 55 lakh jobseekers will be loaded

in the Employment web site in future.
• Registration, Renewal and updation will be
allowed through uploading at the web site.
• Employers will be allowed online vacancy
booking and online submission will be made
through net.
• Jobseekers will get online Vocational guidance
through this software.
 ICT Mission for the Panchayat Raj Institutions

 Better delivery of citizen services

 Establishing a credible system of Fund
Management and Accounting process
 Generation and dissemination of Information for
ensuring Social Audit
 Creating database up to village level for
decentralized planning and monitoring
 Gram Panchayat Management System

1. Improved citizen services like

 Birth and Death registration and issue of
certificates
 Issue of trade certificates and other
certificates
2. Better information management and resource
planning and utilization
3. Better Financial Management

So far more than 500 Gram Panchayats have been

covered by this initiative
Government Challenges
• A need to be more efficient
– Cost of Red Tape is 4% - 10% of GDP
– 23% - 50% of workforce will retire in 10 years
– Skills shortage
• A need to be more cost effective
– Decreasing budgets
– Increasing tax non-compliance and fraud
– Infrastructure outdated and costly
– Integration and interoperability
• A need to be more convenient and
accessible
– Increasing citizen expectations
– Citizens are demanding more information
sharing
 The Key Challenges…..
Commitment…. Mindset ….. Change…

Processes Preparedness People

 Architecture  Awareness
 Re-engineering
 Standards  Capacity Building
 Improvement
 Technology  Training Staff
 Reforms
 Components  Skill Development
 Optimisation
 HW, SW, NW
 Connectivity

Institutional, Administrative, Legal…. Framework…

E-Government Handbook Phases

Publish

Interact

Transact
 Good Governance- Components
Rule of law Effectiveness & efficiency
Transparency Equity and inclusiveness
Accountability Consensus orientation
Responsiveness Participation

Process Re-engineering

Fiscal Reforms

Good Governance

ICTs can help in Implementing all the above

components for Good Governance
 Implementation framework for IT projects

Outside Vendors
Chairman IT Consultants
Committee
Hon’ble High Court
Software IT Consultant Software Consultants
Developer

Analysis
Pre-Development
Design
BPR Tech Evaluations
Technical
Training
Admin Reforms
Development SW Project
Manager IT consultant Financial Planning
Testing Project
Co-ordinator Legal
Data Creation/
Entry/ Validation
Personnel
Deptt. IT
Manager
ISP
Implementation on
actual data and Site Preparation
Supervision
Networking
Systems Management Hardware

Enhancement System Software

Tendering Consumables Training
 Business Processes
• Integrate Customer Order Information

• Standardize and speed up operational

processes
 Connectivity
• Government to Citizens (G2C) – Integrate
Customer Order Information
– Information and service to citizens CRM

• Government to Business (G2B) – Standardize

operational processes
– Information to suppliers and procurement
Citizen Order Management – Process Flows

1. Citizen

2. Locations

Citizen 3. Products/Information
Government
4. Rating/ Itinerary

5. Order

6. Order Status

7. Citizen
Oracle System – Order Release Screen
 Key Benefits of Integrated Order
Management System
• Improved Citizen Service
• Single Source of Truth for Citizen Profiles
• Lower Total Cost of Ownership (TCO)
• Service, Cost and Price synchronization
• Order Evaluation
• Integrated Order Management – Generation
of Sales Order, Initiate billing and creation of
CRM assets
 Standardize and Speed Up Operational
Process
• Operational Analysis

• Procurement and Logistics Execution

• Product Development and Manufacturing

• Sales and Service

Estate Management at MHADA

Integrated Customer Order

Information and Standardized
Operational Process
Existing Estate & Land Management in MHADA

Estate and Land Management

Transit Camp Ceased and

MHADA Offices and MHADA Rental Buildings Land
Colony for R&R

22
 Before ERP
This is Tenant continues
usually to default further
verbal
Currently rent is Attachment Notice
paid by cash is issued
Tenant
Tenant

Initial warning continues to

No given to tenant default
Process of
eviction initiated
Rent Receipt
Tenant
Reminder 2
Rent is not paid
for consecutive Reminder 1
Does the tenant
pay rent? 3 months

Tenant
Rent collector
visits tenements &
collection begins MHADA sends
reminder to
Written tenant for
Rent Bill notification is payment
issued
MHADA/Rent collector

Yes
Rent Collector
Entry in
Start: MHADA issues
Rent receipt is the field
rent bill to tenant
issued to tenant rent
register
Rent Collector

Outputn1: Remittance
Generation Report
Name & Total
of daily
Input: Address of Rent
remittance
the tenant collected
Rent collector report
1. Details of Tenement
deposits the rent
2. Dues to be collected
in bank

Output 2: Receipt
Voucher System of
generated database
$
for rent collection
Bank

Output 3: Cash Output 4:

book is printed Duplicate
Bank Voucher
generated

23
After ERP
Cash/Cheque Payment

Bill + Payment

Receipt Payment deposits

Post Office

Cheques
Tenant Cheque deposits $

Drop Box
Courier - Snail Mail Cheques BANK
Read-Receipt
confirmation on view
Receipt Cheque deposits
E-mail

SMS

Signature Cheque Deposit Kiosk

On receipt
ECS Payment

Fund Transfer

Card Payment
VISA/MCI

Personal computer
Customer Service
Generation of
A/C Statement

Entry of data to
MHADA Database
Server
Report generation of Rent
MHADA

Details
Name Address Rent Due

Personal computer

MHADA Database Server

24
E – Government and ERP
(Business Processes)
 CASE STUDY

SUCCESS STORY OF
DEPARTMENT OF PLANNING
MAHARSHTRA GOVERNMENT
 CASE BACKGROUND
• Maharashtra - 3rd largest state in India by area and the second
largest by population
• Richest state with highest Per Capita Income
• State's administrative machinery runs many infrastructure projects
– both social and industrial
• Respective government departments are responsible for the
execution of projects
• Lot of planning involved in running entire government machinery
and handling the massive amounts of data collected
 CASE BACKGROUND

●
DISTRICT LEVEL SURVEYS AND CENSUS POLLS
●
DATA COLLECTION

ANNUAL OVERVIEW OF THE STATE

 PROBLEM: Long Cycle Time for Data
Entry and Report Generation
• Data collected either through e-mail or in paper format, excel sheets etc.
• Manual data entry – highly time consuming
• Data analysis using COBOL programs
• Separate COBOL programs for different kinds of statistical analysis increasing the cycle
time of the process.
• Manual information distribution
• Data not Web-enabled and processed on the legacy servers
• lack of intelligent data storage capabilities.
• High data retrieval time due to the obsoleteness of the software platform (Cobol).
• New COBOL program for generating new reports or changing reports
• No scope for code reusability
SOLUTION : DSS BY BLUE STAR INFOTECH
• Web-enabled Information Collection
• Automated platform for data consolidation at Mantralaya
• District collectorates feed in their data on the Web-based platform, which is consolidated
and further divided into data marts and data warehouses for conducting analysis.
• Automation of processes -saves time and human resources
• DSS - a turnkey solution with hardware consisting of a database and an application server
(additional hardware includes 90 PCs and 10 printers) with a Web-based platform to
collect data at the district level
• Analytical tools for performing different types of data analysis preventing the need to
write information-driven COBOL programs.
• All analysis can be done within day’s time
• The DSS also includes Data Warehouse and BI applications.
 PROJECT ENABLERS

• Database provided by Oracle

• Data Warehouse and BI applications were bought
from SAS
• HP -hardware components.
• Front end of the DSS runs on Java J2EE open
source
 IMPLEMENTATION PROCESS
HARDWARE SETTING UP
PROCUREMENT OF NETWORK

ANALYSIS REQUIREMENT
GATHERING PHASE
REQUIREMENT FOR DATA ENTRY
GATHERING APPLICATION

HARDWARE SERVER
DEPLOYMENT AT INSTALLATION
DISTRICT LEVEL AT DATA CENTRE

TRAINING OF 120
TRAINING OF DISTRICT
STATISTICAL
EDP TEAM OFFICERS
 BENEFITS
• Reduction in RTI Query Response Time by routing to
DES
• Customization of RTI reports for responding to queries
related to different departments.
• Blue Star team will carry out big projects like conducting
a census survey etc in the future.
• Better disbursement of funds for development
 BENEFITS
• Improved Operational efficiency and improved data
quality
• Improve process of Annual State Budget planning
• Reduction in processing and publishing NSS results
• Shorter time lag between decision making and execution
- policy decisions are taken in a certain number of days
but operational decisions take years to be finalized.
Failed implementation case
 LOOPHOLES IN IMPLEMENTATIONS
• E-governance in India has miserably failed.  The reason why e-governance is a 
big failure is because neither our political parties nor our elected governments take
e-governance seriously.

• Recent example : “ E-Governance Standards .”

• India is flourishing, undoubtedly. It is on the track to be renowned as world leader

and has the best IT work power globally. Still, India has to go distance to achieve
the Herculean task of being an Information and Communication Technology (ICT)
enabled and capable Nation.

• Merely computerizing the functions is of no help to anyone. Rather, it is just the

wastage of thousands of crores of public money and UNDP/World Bank grants
amount.
CONTD…
• India is lacking at the basic level of e-governance implications. It lacks the Citizen to Government
(C2G) and Government to Citizen (G2C) wings that are the core pillars of not only e-governance but e-
commerce as well.

• The problem is due to “lack of accountability” among the Government Departments. The National E-
Governance Plan (NEGP) and E-governance in India have failed to achieve their motives. In short,
there is a complete “ICT Failure in India”.

• At the International level, India lacks the basic prerequisites of e-governance, i.e. e-readiness, public-
governmental interaction, public services, etc and hence mirrors the incompetency of bureaucrat and
Government

• Adding to the misery is reports by Symantec, security research firm that confirms India may emerge
as the leader in Malware activities if the cyber security norms are not established for future e-
governance initiatives of India.

• It is high time that Indians should peep outside the “Indian Shining Syndrome”. The call of the hour is
to understand the real meaning of e-governance and its implications.
.
 FACTS OF THE CASE :
PROJECT NAME : MANDALS ONLINE IN ANDHRA PRADESH

• Andhra Pradesh has 1,124 administrative units known as mandals. Each of the Mandal Revenue
Offices (MROs) was computerized under this project.

• The government of AP supports an affirmative action program for the "Scheduled

Castes/Tribes" and "Backward Classes," which account for nearly 60% of the total population.

• Approximately $20 million is devoted annually to the program, which provides free education,
books, scholarships, subsidized medical facilities, and support for land and house purchases.

• A cast certificate is necessary to access these program benefits , which are issued by the MROs.

• Total cost of the project was $13 million. 70% of the funding was provided by the World Bank
 BEFORE IMPLEMENTATION:
• Previously, a person requiring a certificate of his/her caste or date of birth would
apply in writing to the MRO with a specified form.

• The application would be marked to the Revenue Inspector (RI) and sent to the
Village Administrative Officer (VAO) for inquiry. If the VAO was satisfied concerning
the claim of the applicant, he would recommend issuance of the certificate.

• The RI countersigned this recommendation. The MRO then would route the
application to the clerk concerned, who filled in the relevant columns in the pre-
printed certificate.

• This certificate was numbered, entered in a register, and sent to the Revenue
Officer for his signature.

• Finally, once the Revenue Officer signed the certificate and affixed his seal, the
certificate would be given to the applicant. This process took between 20 and 30
days to complete.
 AFTER IMPLEMENTATION:
• Now all of AP's 1,124 MROs have been computerized. A citizen interface counter
was created to receive applications for the integrated certificate in the prescribed
format.
• The Junior Assistant/Operator numbers it, and validates the information against the
certified database created from the 1995 Statewide Multi-Purpose Household
Survey (MPHS).
• The certificate is printed out with a bar code, and the whole process is done in less
than 15 minutes.
• The system is also designed to maintain a record of land holdings in the area, and
can issue a patta (certificate of land holding) and assist in land transfers and
management of government lands.
• Each person in the database has a unique Social Security Identification (SSID)
number.
• Once all mandal offices are connected to a statewide network, the SSID will be
transferred electronically from one mandal to another if an individual shifts his/her
residence within the state.
 IMPLEMENTATION

Project was implemented in Three phases :

• Phase I - 91 mandals located at district headquarters were computerized.
• Phase II - 230 MRO offices were taken up.
• Phase III - 804 MROs, 79 divisions, and 23 district collectoraates were
computerized.

Challenges :
• Co-ordination with various departments
• Problems related to data
• Poor infrastructure facilities
• Lack of trained human resources
 KEY LESSONS
• The current level of use of the new systems does not justify the investments that
were required at each of the centers.

• Government should have a clear, coherent rationale and plan for choosing a
particular E-Government application. 

• Appropriate physical telecom infrastructure is absolutely necessary for the

application of IT solutions, but an insufficient condition to achieve successful E-
Government reforms. 

• Making a successful transition from a manual to an electronic process demanded

changes to a number of established work procedures. 
Effective change management is essential. 
CONTD..
• All of these improvements can only take place if the field level officers in these
departments comprehend the potential of using this data, and are motivated to
utilize it. This will take enormous training effort and time.

• Nine years have already passed since the project implementation began. By the time
the system truly begins to deliver, the hardware and software may become obsolete.

• A better approach might have been to ready an initial one hundred centers to deliver
all the related applications. The same support team could then have rotated to new
locations.

• Extensive training in use of data and information has to be mounted. An architecture

for linking some key field departments with the data base has to be worked out.
CAUSES OF EGOVERNMENT SUCCESS AND FAILURE:

• Factor Model

• Critical success factors

• Critical failure factors

FACTOR MODEL
Factor
CRITICAL SUCCESS FACTORS
Explanation

External pressure Drive for reform from outside government, e.g. from civil society

Internal political desire Drive from key government officials for reform and for achievement of e-government goals

Overall vision and Overall vision and master plan for good governance and for e-government, identifying 'where
strategy we want to get to', seeing IT as the means not the end, and integrating IT with broader reform
objectives
Effective project Including clear responsibilities, good planning and consideration of risk, good monitoring and
management control, good organisation of resources, and well-managed partnerships between public
agencies, and public-private
Effective change Including leadership with a project champion, use of incentives to create commitment to and
management ownership of e-gov project, and stakeholder involvement to build support and minimise
resistance

Effective design An incremental/piloting approach with feasible objectives and quick, scalable outcomes;
participatory involvement of all stakeholders, leading to designs that meet real user needs
and match real user contexts

Requisite competencies Presence of the necessary skills and knowledge, especially within government itself; need
both management and IT skills and knowledge
infrastructure For example, encouraged through appropriate telecoms policies
Factor
CRITICAL FAILURE FACTORS
Explanation

Lack of internal drivers Pressures only from IT vendors, with no internal ownership (or understanding of e-gov

Lack of vision & strategy Lack of any long-term view, lack of guidance, and lack of link between ends and means; may
be caused by ever-shifting senior staff and/or ever-changing policy and political environment

Poor project Dispersed responsibilities due to multiple ownership of project; absence or weakness of
management controls; ineffective procurement

Poor change Lack of support from senior officials (causing lack of resource allocation, and negative
management message to other groups); lack of stakeholder involvement (causing lack of owner

Dominance of politics and Focus of key players on personal needs and goals, often related to 'playing politics', with
self-interest symptoms like infighting, resistance where loss of power is feared, 'me too' copying of e-gov
solutions for image purposes, obsession with electoral impacts and short-term kudos, and
corruption

Poor/unrealistic design Caused particularly by lack of inputs from key local stakeholders, leading to designs that are
over-technical, over-ambitious, or mismatched to local environment (culture, values) and
needs; occurs particularly where foreign donors, firms and consultants are involved.  Other
design problems: lack of piloting, lack of fit to organisational structure

Lack of requisite Lack of IT knowledge and skills among developers, officials and users/operators; lack of local
competencies knowledge among developers

infrastructure Lack of sufficient computers or networks

 GOI’s UID Project
Creating a Unique Identity Number for every Indian
'Acknowledging the existence of every single citizen
automatically compels the state to improve the quality of
services and immediately give the citizen better access',

-wrote Nandan Nilekani in his book 'Imagining India.'

 A single, universal identity number -- immense benefits
• Obviate need for multiple documentary proof : duplication of effort and ‘identity silos’
increase overall costs of identification, and cause extreme inconvenience
• India’s poor /underprivileged : lack documentation
• Entry for poor/underprivileged into the formal banking system
• Give migrants mobility of identity.
• Transform delivery of Social welfare programs : more inclusive
• Shift from indirect to direct benefits
• Verify whether the beneficiaries receive funds/subsidies.
• Helpful in eliminating fraud/duplicate identities :significant savings to the state exchequer. Eg:
the Ministry of Petroleum and Natural Gas : Rs.1200 crores/ year in subsidies. GOI: Rs. 20,000
crores a year.
• Provide governments with accurate data on residents: prepare a National Population Register
(NPR).
• Allow government departments to coordinate investments and share information.
• It will help to reduce illegal immigration.
• Serve as basis for e-governance services
 Evolving an approach to identity
• The GOI : effort to provide a clear identity to residents first in 1993 : photo identity cards by the
Election Commission.
• Subsequently in 2003, : Multipurpose National Identity Card (MNIC).

• The Unique Identification Authority of India (UIDAI) : February 2009, attached to the Planning
Commission.
• The purpose of the UIDAI is to issue a unique identification number (UID) to all Indian residents
that is
– (a) robust enough to eliminate duplicate and fake identities, and
– (b) can be verified and authenticated in an easy, cost effective way.

• The law : stipulate rules, regulations, processes and protocols to be followed by different
agencies partnering with the Authority in issuing and verifying unique identity numbers.
• Budget 2010-2011 presented in Parliament - Rs 1,900 crore allocated for Unique Identification
Authority of India
 The Central ID Data Repository (CIDR)
• central data repository
• core services– it will store resident records, issue unique identification numbers, and verify,
authenticate and amend resident data.
• The CIDR will only hold the minimum information required to identify the resident and
ensure no duplicates.
• This will include:
• i) Unique Identity Number: unique across all 1.2 billion residents in India.
• ( number will not contain intelligence : susceptible to fraud and theft, and migration of
• the resident makes location details out of date) The UID will be a random number.
• ii) Identity fields: The fields associated with the UID number will be:
•  Name  Date of birth  Gender
•  Father’s name  Father’s UID number (optional for adult residents)
•  Mother’s name  Mother’s UID number (optional for adult residents)
•  Address (Permanent and Present)
•  Expiry date
•  Photograph  Finger prints
The UniqueID Agencies
Registrars –state governments or central government agencies such as the Oil Ministry and
LIC/private sector participants such as banks and insurance firms.
• The Registrars : need to make changes to their processes : UIDready.
• The UIDAI will support them : linking to the CIDR : connecting to the UID system : UID
fields to their databases.
• The UIDAI : some Registrars :use the CIDR solely for authentication purposes.

Sub-Registrars –departments/entities : report to a specific Registrar.For instance, RDPR

department would be sub-registrars to the state government Registrar

Enrolling Agencies –directly interact with and enrol residents into the CIDR. For example,
the hospital would be the ‘enrolling agency’ : report to the municipality sub-registrar.

Outreach Groups – The UIDAI : also partner with civil society groups and community
networks which will promote the UID number and provide information on enrolment
for hard to reach populations such as rural women, tribals and others.
 UID enrolment strategy
in rural and urban India

• not through mandate, but demand

driven.

• momentum : enrolling in order to

access the benefits and services
associated with it.
Other Key Points:
• Ensuring clean enrolment data from Registrars : Audits (random sample of residents)
• Recording deaths in the UID system : deceased
• Biometrics and infants
 Project risks

1) Adoption risks: Without critical mass among key demographic groups (the rural and the poor) the number will
not be successful in the long term.
2) Political risks: The UID project will require support from state governments / individual government
departments, especially in linking public services to the UID, and from service providers joining as Registrars.
3) Enrolment risks: address risks : creating sufficient touch points in rural areas, enabling and motivating
Registrars, ensuring that documentary requirements don’t derail enrolment in disadvantaged communities –
as well as managing difficulties in address verification, name standards, lack of information on date of birth,
and hard to record fingerprints.
4) Risks of scale: The project will have to handle records that approach one billion in number. This creates
significant risks in administration, storage, and continued expansion of infrastructure.
5) Technology risks: The authority will have to address the risks carefully – by choosing the right technology in the
architecture, biometrics, and data management tools; managing obsolescence and data quality; designing the
transaction services model and innovating towards the best possible result.
6) Privacy and security risks: The UIDAI will have to ensure that resident data is not shared or compromised.
7) Sustainability risks: The economic model : sustainable in the long-term, and ensure that the project can adhere
to the standards mandated by the Authority.
 REFERENCES
• E-GOVERNANCE & ERP CHALLENGES AND STRATEGIES – Gita Kumta

• http://
biztech2.in.com/india/casestudies/enterprise-solutions/hpcl-refines-busine
ss-processes-with-erp-implementation/28091/0

• http://egovindia.wordpress.com/2006/06/23/when-are-we-ready-for-erp/

• www.ewubd.edu/ewu

• www.erpwire.com/erp-articles/india-and-erp.html

• www.erp-india.com/
THANK YOU