ASSIGNMENT NO. 2

A CASE STUDY OF E-GOVERNMENT

PROGRAMME FOR DISTRICT

GOVERNMENT OF FAISALABAD

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ASSIGNMENT NO. 2

Autumn 2013

E-COMMERCE (5576)

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD(Commonwealth MBA/MPA Program)

Bilal Ahmed NasirRoll No. AP 508236MBA Executive 4th Semester

ABSTRACT

In the 21st century, Local Governments and public sector organizations are

faced with the challenges of globalization. As drivers of social, economic and political

development, Governments have a considerable responsibility for providing key

services to citizens and managing society in general. To fulfill their mandate, a stark

reality is that the Local Governments need to change all over the world and in

particular in the developing countries like Pakistan.

City District Government Faisalabad (CDGF) embraced the need to change

with the aid of Information and Communication Technologies (ICTs) based

information systems. In complex Local Governments like in Faisalabad, achieving

integration is critical to meet the objectives of effective service provision. CDGF

realized that ICTs can make a significant contribution to effective and efficient

service provision by saving time and improving work practices through improving

organizational functions and processes along with the achievement of good

governance in the district as part of its broader reforms program. By realizing these

benefits, CDGF embarked on e-government program, based on the development of

a number of management information systems for its various departments and the

internet.

This case study outlines how Faisalabad's e-government program, has helped

alter the dynamics of governance in the District and charts out how the program was

developed, the conceptual basis for its inception, its key processes, what was the

impact and whether there are lessons for other Local Governments which can be

drawn from the experience. This study illustrates that how Faisalabad has started the

process of e-government by developing information systems and why Faisalabad's

interventions succeeded when so many others may have failed.

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TABLE OF CONTENTS

Serial Contents Page

1 Background 4

2 Key Concepts and the Context 5

3 The Case 13

4 The Design 14

5 The Impacts on Governance 25

6 Cost benefit analysis of ICT innovations 27

7 Lessons and Reflections 28

8 Conclusion 30

9 References 33

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A CASE STUDY OF E-GOVERNMENT PROGRAMME FOR DISTRICT GOVERNMENT OF FAISALABAD

Background1. The Strategic Policy Unit (SPU) was set up by the Faisalabad District

Government in 2002, as a policy think-tank. Its key aim was to act as a conduit in the

district from which all reform program could be initiated. In 2004, the United

Kingdom's Department for International Development (DFID) agreed to provide

technical assistance to the District using the SPU as the platform from which change

would be driven. The SPU over a four year period has acted as a key resource

fostering social capital within the City District Government and often being the focal

point for local and international technical assistance and program development. With

a cohort of key technical resources and change management agenda, it plays a key

role in facilitating public sector reforms and is replicable. It has been instrumental in

assisting Faisalabad to become a modern administration. The view is now

commonplace that old patterns of industrial society are receding within much of the

world and being replaced by a new form of organization associated with rapid

technological change. The industrial age is being replaced by an 'information age' in

which 'knowledge workers' and 'information labor' are emerging. Information and

Communication Technologies (ICTs) are at the centre of this paradigm shift, diluting

dysfunctional bureaucratic forms of organization and bringing a new flexibility to

decision making. The world has entered the era of the 'information society'.

Government is at the centre of this transformationInformation and Government are inextricably linked and in today's Pakistan ICTs

offer the tiers of Government the opportunity to make improvements in their services

and responsiveness to citizens. The use of IT and ICTs in the public sector is

referred to as e-government. The term e-government is broad and refers to more

than just the use of web and internet based applications in Government. It

encompasses all use of digital information technology, though primarily computers

and networks in the public sector. In Faisalabad, Pakistan, the City District

Government harnessed the potential of ICTs and embarked on a program of e-

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government, radically altering the way it functions. Management Information

Systems (MISs) are locally designed, maintained and managed and are helping to

transform relationships inside and outside Government. Through developing a range

of MISs and other measures related to interfacing with citizens in innovative ways,

the City District Government of Faisalabad (CDGF) has taken the first important step

towards e-government. The City District Government recognized the need to develop

information systems that handled data and a delivered information to support

decisions and transactions. Finance, human resource management, community

development, roads and revenue were identified as the important strategic areas in

need of management information systems, and the integration of these stand alone

systems through a Geographic Information System (GIS) was also deemed

necessary. These systems help to bridge poor coordination and cooperation within

departments as well as empower those at the lower end of the hierarchical chain,

and bring about greater levels of transparency and accountability. They have brought

about significant efficiency and economy gains for the City District Government

enabling it to align its resources to key development priorities more effectively.

Key Concepts and the Context2. E-Government Systems Management Information Systems (MISs). There are

numerous definitions of e-government. In its simplest form, e-government is defined

as the "use of IT by public sector organisations" (Heeks, 2006). E-government is

therefore not just about the internet; it also encompasses office automation and

internal management information systems as well as client facing web sites. This

definition fits the work carried out by the CDGF during its reforms programme. A

more comprehensive definition of e-government views it as comprising three key

stages (Heeks 2001):

a. Automation: replacing human executed processes with computers e.g.

computerizing personnel information or payroll;

b. Informatisation: supporting human executed information processes e.g.

decision 'support tools such as financial management systems;

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c. Transformation: creating new ICT executed information processes or

supporting new human executed processes e.g. creating new methods of

service delivery or increasing democratic participation through electronic

voting.

3. Faisalabad exhibits aspects of first two elements; automation and

transformation highlighting how it has managed to begin saving the costs associated

with carrying out functions such as finance and is moving towards third stage i.e.

transformation. As a result of its work in deploying e-government systems,

Faisalabad is better connected, saves more money and time in delivering services,

and is more conscientious of its external environment and stake holders. Using this

criterion and definition, Faisalabad is now automated and informative. In years to

come, it will be in a position to offer more transformative online services.

4. Management Information Systems (MISs). The foundation of the change

brought about by Faisalabad was the development of sound information systems to

enable management decisions. There is no universally accepted definition of an MIS.

However the primary purpose of an MIS is to inform people. One of the problems

with trying to characterize an MIS is that two distinct views exist of what an MIS is

supposed to do. A typical definition of MIS is given below:"The combination of

human and computer based resources that results in the collection, storage,

retrieval, communication and use of data for the purpose of efficient management of

operations and for business planning" This is the 'production oriented' view i.e. it

concentrates upon the means of producing the information. However the view taken

by the Faisalabad Government in the course of the last four years is 'management

oriented'. Whereby, the means of production is secondary to ensuring that the

correct problems are addressed and the right information is available to the

managers and support staff that want it. This change in emphasis from information

'systems' to information 'management' requires a different, more subtle, definition of

a MIS. It further requires a focus on the interaction of systems specialists with

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department managers and officers as a feature of successful MIS development. The

definition which is of most use here and of relevance to the Faisalabad context is:

"A system to convert data from internal and external sources into information and

communicate that information, in an important form, to managers at all levels in all

functions to enable them to make timely and effective decisions for planning,

directing and controlling the activities for which they are responsible".

5. E-Government Systems as Information Systems. This leads us to ask the

question what does IT do then for public sector organisations like. Faisalabad? It

handles data to produce information. The next step to understand is that e-

government systems are information systems. At their heart lie data and information.

These are handled by digital and sometimes non-digital information technologies.

But this does not make a 'system', a system is a collection of elements that works

and has a purpose. To understand e-government as an information system, we must

add in some notion of activity and purpose. This is achieved when we bring in people

into the equation. For e-government to be seen as a working information system it

must be seen as much more than just the technical elements of IT. Instead, it must

be seen to consist of technology plus information plus people who give the system

purpose and meaning, plus work processes that are undertaken. These dimensions

shaped the information systems developed by the City District Government in

Faisalabad.

6. Why Faisalabad Needed Information Systems. There are organisational

reasons why Faisalabad was failing to deliver effective services before the onset of

its 4 year reforms program. In 2004, with the aid of technical assistance from the UK

Government's Department for International Development (DFID), the City District

Government conducted an internal review and assessment of its management

systems and processes. It highlighted a number of areas that needed to be

addressed urgently where information and communication technologies (ICTs) could

be used to bring about significant improvements in the way the City District

Government did business. It was noted that in almost all departments, information

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was lacking, and if available, it was scattered and was not regularly updated. Critical

decisions were thus being made on the basis of little or inaccurate information. Even

when data was digitized, it remained in disparate formats lacking a consolidated view

to plan and analyze the resource utilization of the CDGF. The challenge was to bring

Faisalabad into the 21st century with the aid of technology based management

systems. Some specific issues that were identified are highlighted here:-

a. Scale of City District Government. Faisalabad is both large and

complex where vertical and horizontal differentiation undermines

organizational cohesiveness. Achieving` 'integration' was going to be critical to

its desire to meet its wider objectives of effective service provision. This would

require improving access to information and a changing culture where

information was openly shared for mutual benefit. The deployment of

management information systems would facilitate the breakdown of

boundaries. 'Joined up' Government could be achieved as a result of MIS.

b. Automating Human Executed Processes. The use of computers in

Faisalabad had been limited. Though departments possessed computers

these were simply used as word processors to prepare memos or

departmental budgets in simple excel formats. Their potential strategic use

had not been realized and there was much intransigence among lower tier

officers to accept the organisational benefits of computerized systems.

Traditional ways of performing routine tasks and functions were preferred.

Management information systems would offer the opportunity to modernize to

deliver more outputs with a minimum of effort. Quicker and cheaper

governance would be achieved.

c. Poor Financial Management Processes Several important functions

linked to financial. management were performed badly in the absence of an

automated system. Financial information lacked accuracy, was not reliable,

was not shared with key personnel and there was no accountability of how

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public funds were being spent in key social services. Records of expenditure

often failed to match budget allocations, consequently affecting the way

money was released to departments from finance managers. The overall

impact of poor financial management was that in 2004 the City District

Government had a deficit in excess of millions of rupees. A management

information system dedicated to predicting and managing the districts public

finances would bring better transparency and accountability.

d. Poor Human Resource Management Systems All personnel records for

32,000 employees were kept manually and dispersed. No system existed that

enabled senior managers in the City District Government to keep track of its

vast employees, identify those that were to retire, or indeed carry out any

performance related valuations. All data pertaining to City District Government

employees was processed manually. This was time consuming, expensive,

with staff requirements frequently misinterpreted and prone to human error.

An automated human resource management system would enable the

department to provide better services and information, particularly for strategic

decision-making.

e. Poor Connections between Government and Civil Society There was

limited provision for communicating with civil society, citizens and society at

large. The City District Government had inadequate mechanisms for liaising

with its customers, consumers and service beneficiaries. Little or no

information was provided to the outside world on successes or failures in

service provision. Direct one to one contact at the front office level or service

delivery level was the only way service provider and service user connected.

Often the relationship was strained with service users dissatisfied with the

quality of services. Areas of potential cooperation between Government and

civil society tend to be limited in the absence of adequate communication tool.

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f. Poor Connection between Government and Citizens / Businesses

Similarly, information asymmetry characterized the relationship between the

City District Government and its wider citizenry. A lack of customer

orientation, communication and service connectedness contribute to

undermining governance in the district. The City District Government was not

very good at providing information to citizens to enable better decisions or

scrutiny. Similarly public input into Government decisions was limited to the

district assembly where local councilors represented public interests. Virtually

no services were provided online except details outlining the CDGF's

organizational structure.

7. What Faisalabad hoped to Achieve. It was clear that the development of

different MISs could help to save time and improve work practices within CDGF's

departments. In terms of public sector organizations such as Faisalabad, there were

many positive elements which could be achieved through the development of

information systems. These can be summarized as follows:

a. The speed of service delivery: Much more data can be processed and

retrieved faster. Waiting time for clients is reduced and time taken to handle

information is also reduced. Overall, less time taken handling 'normal'

transactions allows more time to deal with specific 'abnormal' activities;

Increased access to service agencies: Internet access and information kiosks,

etc. make it possible to broaden the availability of information to the public.

People who want particular information can visit the agency web site when

they require it.

c. Remote control and transactions: Network technology not only

increases participation but it also opens up the possibility of electronic

payments which may be significantly more efficient than the existing system.

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d. Increased transparency of clients: The coupling and management of data

bases provides more information on clients, etc. enabling better targeting and

services.

e. Linkages across organizations: Network technology allows for the

blurring of organizational boundaries and information sharing. This

significantly lessens duplication and improves services in terms of seeing

clients as a 'whole person'.

f. Increased awareness of interdependence: Reducing the separatist

attitudes of departments and agencies and increasing awareness of

interdependency of Government agencies.

8. Critically, MIS can be effective and efficient but also appear to be hostile to

users. Organizations, in particular traditional Local Governments like Faisalabad, are

complex, and information systems encroach on most areas. They therefore need to

be sensitive to the needs of users and service managers. This lack of sensitivity has

led to many problems in implementing MIS. The CDGF was acutely aware of the

potential barriers to the introduction of new systems and ways of doing business,

including:

a. Lack of management involvement With the design of the MIS,

sometimes translates into hostility and blocking off staff development and

information.

b. Narrow or inappropriate focus of the computer system, can result from

solutions being driven technically rather than managerially.

c. Over-concentration on low level data processing can result from

ignoring higher level applications.

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d. Lack of managerial knowledge regarding computers impedes the

process.

e. Poor appreciation of management by MIS professionals.

f. Lack of top management support.

With these potential challenges in mind, Faisalabad embarked on the task of

transforming its management information systems.

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THE CASE

9. During the initial phase of the reforms programme within CDGF, a detailed

situation analysis of systems and processes of the departments was conducted to

develop a strategic framework with clearly articulated objectives for these

departments. It was noted that in various departments, information was lacking, and

if was available, it was scattered and was not regularly updated. The decisions were

made in an un-informed manner in the absence of accurate information. The CDGF

concluded that development of different MISs could help to save time and improve

work practices within its departments. Moreover, information systems is a key aspect

and one of the dimensions of 4good governance and is mentioned in CDGF's

corporate plan. As a result, development and use of MISs has been a key tool in

improving departmental systems and processes through the reforms programme in

CDGF. Information systems have been developed for various departments

likeFinance, HR, Community development, Revenue and Municipal Services etc. An

integrated Geographic Information System (GIS)has also been developed which is

the subject of another separate case study. The development of every MIS has its

own use, organisational process, history and development cycle. This in itself is a

great learning experience for CDGF i.e. moving from hard core data files to desktop

MIS application and ultimately moving towards web-based solutions. The

development history of MISs will have lessons for future users, amenders and

replicators. This case study illustrates the key steps taken to actually design MISs

(starting from inception), key processes in implementing and them impacts on the

service delivery mechanisms and governance in CDGF.

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THE DESIGN

Key Information Systems of CDGF

10. A number of information systems were developed for

various departments of CDGF, keeping in view their differing needs and

requirements and are described in this section. Some were developed during the

early stages of the reforms programme, while others were introduced at a later point.

11. Human Resource Management Information System (HRMIS). HRMIS has

been developed for the district's HR department (Figure 1), which has one of the

largest workforces amongst districts with more than 32,000 employees. HRMIS

considered critical, as basic data and information about the most important capital of

CDGF, human capital, was almost non-existent. The HR department could not

properly assess staff gaps, filled and vacant positions, the number of staff in offices

and sub-offices, information about leave and retirement of the staff.

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12. Financial Management Information System (FMIS). Human Resource

Management Information System. The HRMIS has automated the key tasks of the

HR department. The district departments are now in a better position to plan their

human resources and can make decisions based on updated employee and

establishment details. The required information can now be generated very easily

which used to take several weeks. Given the large size of the CDGF including

schools, roads, health centres, buildings, hospitals etc., it was natural that data

about financial spending, fiscal requirements and planning was scattered in

numerous paper-based files. There were delays in the budget preparation process,

reconciliation of accounts and release of funds. Access to data was limited, funds

were routinely underutilized, and projections for future allocation of funds were often

not aligned with requirements on the ground. Therefore, an automated system was

needed to consolidate the financial data of the CDFG and enhance financial

responsibility, fiscal transparency and flexibility, allocative efficiency and expenditure

management. The FMIS was developed to help overcome these problems and it

supports many of the key functions and processes of the Finance and Planning

(F&P) department (Figure 2). It is helpful in analyzing the financial position of the

district and plays an important role in targeting pro-poor investments in the district.

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13. Revenue MIS. The City District Government was facing innumerable

problems in keeping a record of local receipts being collected from different local

revenue sources. Previously there was no record available of the total potential of

and actual revenue about collection, leading unrealistic budgeting. The

Revenue ,MIS is helping the department in keeping track of receipts against their

set targets, identifying leakages, and preparing realistic budgets based on actual

revenue potential (Figure 3).

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14. Citizen Community Boards Management Information System (CCBMIS) CCBs are an institutional mechanism introduced by the devolution programme,

and form a new area of work for the Government. These are voluntary

organisation which are formed by 25 people resident of a Union Council (smallest

unit in Pakistan) to carry out development work in the Union Council. All CCBs are

registered with the Community Development department and are required to have

unique names within the District. Moreover, a community board may only have

members who are not members of any other CCB. While simple, abiding by these

requirements without a digitized central management information system, the

process was time-consuming and difficult for the department. Prior to the

CCBMIS, the records for over 1600 CCBs in the district were maintained in paper-

based files. Therefore, when an applicant submitted an application, typically the

only procedure that was followed was to check for the uniqueness of the newly

proposed name. Cross checking members of the board against previously

registered CCBs, was often not possible due to the tedium of the task. The

CCBMIS maintains the records and details of all CCBs and their developmental

projects.

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15. Road Management Information System. Roads are an important

asset of the City District Government. However, the district had major problems in

identifying which road network needed maintenance and which has had major

repairs more than one time. Being unable to prioritise the maintenance needs of

the roads, this important asset was being wasted. The Road MIS (Figure 5) has

helped the City District Government in identifying roads and in prioritising their

development need.

16. Geographic Information System (GIS) After the successful development of

other stand alone information systems, the CDGF also embarked on developing

a Geographic Information System (GIS) (Figure 6). It was realized by the District

Government that the unavailability of physical mapping of infrastructure and

services was resulting in inappropriate projects. The GIS was introduced to

improve the targeting of poor areas and enhance the planning process for future

investments. Importantly, all existing information systems have been linked with

the GIS. Through one time clicking, information about various services can be

retrieved. For example, in a village complete information about a school e.g.

physical condition of the school, staff of the school and financial allocations to

the school can be retrieved, which has enabled a more integrated planning

process across the district.

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17. Key Processes in Developing Management Information Systems in CDGF.

While a number of information systems have been developed, the development

of the Financial Management Information System (FMIS) and Human Resource

Management Information System (HRMIS) are illustrative of the approach used

by the CDGF and these processes are described in some detail in this section.

18. Institutional Leadership. It was decided from the outset that the

Information Technology Department would lead the systems development work

in the City District Government. Technical and analytical support was provided

by the project team of Strengthening Decentralized Local Government in

Faisalabad (SDLGF) project, but responsibility for leading the day to day project

management lay with the Executive District Officer (EDO) of the relevant

department, with the IT department overlooking the a

process. The advantage of keeping the IT department in loop was threefold; to

ensure that the project was owned by the IT department, even though it lacked

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key staff; secondly, it sent out an important message across the organization

that despite a lack of capacity, the department was still responsible for key IT

functions and was ready for business and thirdly all IT related issues needed to

be routed through the IT department rather than being handled independently.

This was an opportunity to give the department a more meaningful role and

profile within the CDGF as envisaged within the local government ordinance.

19. Use Local, Low Cost Indigenous Resources and Technology. The City

District Government resisted the temptation to use commercial off the shelf

sophisticated systems. The IT department and other senior departmental

managers opted to use the Microsoft Windows platform. For a

the Financial Management Information System (FMIS) initially VB6 was used

before graduating to ASP.net for two reasons:

a. ASP.net afforded rapid prototyping, with a good development

framework such as the Microsoft Visual Studios.

b. The initial VB 6 version was designed solely as a desktop

application, without support for remote access. ASP.net affords remote

network access, enabling a model where a single installation of a system

can serve several sites.

20. For storage purposes all the systems use Microsoft SQL Server 2000

database. The existing choice of development tools was dictated by the skill set

of available programmers but more importantly the concerns of sustainable use

and extension of the developed software. The team responsible for developing

and implementing various information systems was hired locally in Faisalabad.

21. Consult and Build Capacity along the Way. The CDGF team led by the

IT department held several key consultation meetings and discussions with

stakeholder departments on their user and system problems and requirements.

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Counterparts from relevant departments were identified and assigned to develop

information systems. The approach's key strategy was to have departments as

part of the process at all stages and ensuring that skills were being transferred.

Though time-consuming, it enabled managers and officials to see the time taken

to develop such systems. Departments discussed and identified their own

problems and discussed how they could be overcome with the IT department.

This resulted in a far more robust systems development process than might have

been the case had commercial off the shelf systems been used. The key strategy

was to involve Government at all stages and incorporate the input of users into

design.

22. Adopt Soft Systems Approaches. Faisalabad adopted a 'soft systems'

approach to develop its management information systems. This differs from hard

methods, in that they document the bounded areas of data low or systems. The

former looks at soft methodologies in which the boundaries of systems may

move as stakeholders in the system are identified and intangible elements are

sketched out. The City District Government realized that an approach which

detailed how data flowed would be insufficient and there was a need to

understand the social, political and cultural context within which data flowed

across boundaries. The CDGF team sat down with departmental staff initially

and mapped some of the soft intangible issues, deriving purposeful systems

which were then expressed as a conceptual model before any discussions took'

place about technology.

23. The Systems Development Life Cycle (SDLC) Approach. The CDGF team,

relevant EDOs, departmental staff and IT department then moved onto analyzing

and designing their respective systems and requirements. Here the systems

development life cycle (SDLC) was used as a key methodology with inputs from

department managers and users. This approach presented a number of

advantages for the IT and client departments. Early applications and systems

were driven by technical rather than organisational criteria. This system, though

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dated, attempts to introduce better information systems in an integrated

environment. The City District Government adopted it because it enabled its

managers and officers, with limited capacity and experience to see the benefits

of viewing information systems within a human and organizational context. All of

Faisalabad's information systems were subsequently developed using its six

main stages; finance is used for illustration purpose. The same SDLC approach

was used for HR as well as for other information systems.

24. Situation Analysis and Feasibility A detailed assessment of existing financial

and human resource systems was jointly undertaken with IT department and the

concerned department. Detailed process mapping was undertaken for key

transactions, work and task flows. A detailed picture was built of the way in

which data was generated, stored, managed and converted into information for

key stakeholders. For example, the budgeting process was mapped completely

from the point at which the budget call letter is issued to when costs and

expenditure are recorded within departments, and who were the key internal and

external actors in the process. It was critical to understand finance and HR

processes within the Government before proceeding with their re-engineering.

25. Systems Investigation and Analysis. Here the CDGF identified the

resources, capacity and direction that individual projects would take to

implement the systems. The teams familiarized themselves with the boundaries

that existed in financial and HR information flows and the kind of data that

needed to be processed. Analysis was carried out that would link the information

systems with the aims and structures of the organisations. In the case of finance,

how the Finance and Planning department would link with the non-devolved

District Accounts Office and its personnel? In the case of HR, how each

department would make the records of personnel available to the District Officers

HRIVI and Finance and Planning. User views and requirements would need to

be incorporated into the analysis so that system reports reflected the information

they needed and would be practically useful.

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Situation Analysis and Feasibility26. A detailed assessment of existing financial and human resource systems was

jointly undertaken with IT department and the concerned department. Detailed

process mapping was undertaken for key transactions, work and task flows. A

detailed picture was built of the way in which data was generated, stored,

managed and converted into information for key stakeholders. For example, the

budgeting process was mapped completely from the point at which the budget

call letter is issued to when costs and expenditure are recorded within

departments, and who were the key internal and external actors in the process. It

was critical to understand finance and HR processes within the Government

before proceeding with their re-engineering.

27. Systems Design, Implementation and Evaluation On the basis of the

analysis, new tasks and workflows for each of the departmental systems were

designed. For example, Finance and Planning department was keen to

streamline its financial releases process. This used to be a cumbersome process

which involved too many decision makers / layers and led to impeding service

efficiency. It was calculated that it would take eight stages to undertake the task.

Options were discussed with the Finance & Planning and other departments, and

it was agreed to re-engineer the process down to six key steps. Similarly in

HRM, almost 500 personnel would be involved in making data available to

corporate management. An automated system was needed that would provide

access to accurate and timely personnel information to corporate management.

FMIS and HRMIS were developed and are constantly reviewed and strengthened

to meet Faisalabad's needs.

28. Maintaining the Information Systems Once developed the information

systems were not handled in isolation by the systems development team. They

were handed over to the departments through an incremental process and the

capacity of departmental staff was built throughout the process. The IT

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department through its Computer Training Centre has been imparting trainings to

male and female employees of CDGF on basic computer skills, e-mail and

Internet. Trainings on information systems for the staff including EDOs, District

Officers (DOs), Deputy DOs, Drawing and Disbursing Officers (DDOs) and clerks

of the relevant departments have also been conducted. - All management

information systems are currently fully institutionalized and are being used and

updated by the departments. The GIS is the sole exception, and is being

maintained as a separate unit, with a view to integrating all the departments.

Video and technical documentation and user manuals for all MISs have been

prepared to aid user’s, amenders and replicators in future.

THE IMPACTS ON GOVERNANCE

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29. Academics and practitioners argue that ICTs can make governance more

effective and efficient, while bringing other benefits. Some take the argument

further and suggest that e-government has the potential to benefit the poor too.

Similarly some not only view e-government as changing relationships in

governance but helping traditional bureaucracies make the gradual transition to

modern administrations. Faisalabad is a case in point. The use of e-government

systems such as those deployed by Faisalabad (MIS, internet and intranet) can

be divided into three main domains against which it is possible to measure

progress in governance. These are e-administration, e-services and e-citizens.

30. E-Administration This refers to use of technologies to improve internal

organizational functions and processes. Typically these will be Government to

Government services (G2G) and reflects Faisalabad's commitment to two of its

core dimensions of good governance namely organizational improvement and

information systems. In this case, Faisalabad used information systems to

achieve substantial gains organizationally with wide ranging benefits.

Investments in management information systems have led to a reduction in the

costs associated with carrying out a number of functional tasks and internal

services. Secondly the management of key processes of the City District

Government such as budgeting, reconciliation and work forde planning has

become easier for officers. Thirdly, the automated systems have helped

departments become better connected, improving their coordination and

communications which in the past were disjointed. So how do we do this? There

have been significant achievements, with demonstrated impact on efficiency and

effectiveness: the budget cycle has been reduced from 9000 man-days to 3000

man days and from 45 days to 9 days; the HRMIS has saved almost 1500 man

hours and can generate relevant management information in minutes; the

Revenue MIS has reduced the processing time for bills from 6 man days to 2

man days; and the CCBMIS has reduced the registration time for CCBs from four

to six weeks to one week. Importantly, all MISs are now linked through the GIS,

allowing spatial representation and a tool for evidence-based planning. Internal

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service costs were significantly reduced by replacing functions that were carried

out manually with computers and automated information systems.

31. Saving Costs, Improving Productivity, Achieving Value for Money Saving

Costs, Improving Productivity, Achieving Value for Money internal service costs

were significantly reduced by replacing functions that were carried out manually

with computers and automated information systems. Two examples highlight the

transformation from manual to simple e-administrative processes. They

demonstrate the potential and power of information systems and technology in

making Government efficient and economical.

32. Effective Process Management Automated systems offer opportunities for

the better planning of resources, by avoiding duplication and using better

quality information. Faisalabad's Human Resource Management Information

System is example of how manual planning processes can be streamlined to

bring efficiency and productivity. The computerization of personnel records for

over 32,000employees marks a watershed for Faisalabad. The data is

centralized in a unitary repository, which eases its management. Significant time

costs are reduced when generating establishment, retirement and seniority

reports for district and provincial departments.

33. Creating Empowerment. The creation of these information systems has

had profound power implications for a hierarchical City District Government. In

particular, information that was only previously accessible to senior managers is

now available to decision makers further down the hierarchy. HRMIS is

accessible through the web to EDOs, District Officers (DOs), Deputy District

Officers (DDOs) and even Assistant Executive Officers (AEOs). FMIS access

has been provided to Drawing and Disbursing Officers (DDOs) in the field.

34. E-Services and E-Citizens These areas deal with relationships between

Government to citizens and Government to business interactions. E-services

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allow citizens to access information electronically, and to submit information

online. E-citizenship is about two way communication, influencing public policy

and practice. The internet has changed the face of communication and it

presents a number of ways in which links with consumers can be strengthened.

COST BENEFIT ANALYSIS OF ICT INNOVATIONS35. An assessment of the costs and benefits of developing many of the

information systems led systems reveals economy gains for the City District

Government. Customized systems which were cheaper and simpler have saved

the City District Government considerable costs, than if they had opted for more

expensive off the shelf options. Therefore these systems are affordable and can

be replicated in other districts at lower costs than is anticipated.

36. Cost of Development Cost. Within finance the FMIS and documentation

management system cost the City District Government an estimated Rs 7 Million

(CDGF Performance Report-6, 2007). This included both hardware and software

in its development over a four year period. At the same time, these systems are

now helping the Government to save annually more than Rs. 10 Million in time

and costs associated with the district's financial management processes.

Similarly, in human resource management the HRMIS cost the Government

approximately Rs. 5.5 Million (CDGF Performance Report-6, 2008). This is a

small cost when compared to the number of person days, expenses and other

costs which were being incurred by the City District Government as a result of

manual, labor intensive systems. In the Community Development department its

CCB Management Information System setback the administration in the region of

Rs. 4 Million (CDGF Performance Report-6, 2007). However this system has

helped to reduce the time taken to register CCBs and their respective project

applications from several weeks to one week. Similarly, it has led to the

department now releasing funds for approved projects within a 45 day period

instead of after several months. With over 1600 CCBs in the District, these are

significant inroads into the benefits of automated systems bringing widespread

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modernization and efficiency for the City District Government. The cost of

developing the Revenue MIS and Road MIS is Rs. 5 Million and Rs. 3.10 Million

respectively. The Revenue MIS will help the department in saving Rs. 1 Million

per annum through greater efficiencies. The District's GIS has been developed

in-house, using local resources and within Rs. 70Million. This is considered to be

cost-effective for a system of its kind.

LESSONS AND REFLECTIONS38. This section of the case study highlights a number of important lessons

which are relevant to Local Governments and organisations in general when

designing e-government systems.

39. Match Technology with Indigenous Skills It is critical to assess early on

before programme design is initiated that what level of skills exist in the client

organisation. In the case of Faisalabad, it became very apparent that pockets of

technological capacity were present and that the prevailing culture was one of

skepticism. The full potential of ICTs had not been realized. Hence there was a

need to develop customized technological solutions rather than implant

expensive off the shelf systems.

40. Use Local and Build Local Capacity and Expertise The CDGF encouraged

the use of locals within Government and outside to develop and implement the

programme and its systems. Using experts outside of Faisalabad would not only

have been expensive but an unsustainable solution. By working with

programmers and departments from within the City District Government, the

significant understanding and awareness of the role of ICTs in development now

rests within the City District Government.

41. Social, Political, Cultural and People Dimensions of E-government

Developing ICT programmes and- systems with simply technology in mind is a

mistake and a recipe for e-government failure. ICTs and e-government

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programmes do not operate in a vacuum and to assume so when designing

information systems or other e-government initiatives is naive. It is therefore

critical to address the organizational dimensions often founding large complex

Local Governments like Faisalabad. Understanding the people, the social

interactions and cultural norms and sub-systems is a pre-requisite for successful

information systems development and implementation. These systems break

organizational boundaries and improve information flows.

42. Stakeholder Involvement The design and execution of e-government

programmes is not the sole responsibility of the IT department. Furthermore,

Faisalabad demonstrates that the IT department has the potential to make

significant intellectual contributions to the development of e-government systems

such as management information systems. Incremental approaches to systems

development are important where stakeholders are carried as equal partners,

rather than technocratic styles of management, and should be adopted where

possible.

CONCLUSION

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1. In Faisalabad the City District Government has demonstrated how new

information and communication technologies can make a significant contribution

to the achievement of good governance goals. Through its broad governance

reforms programme the City District Government deployed automated

management information systems, invested in a new website and at the same

time modernized its internal communication processes. These investments in

ICTs have made important differences to the way the administration is governed

and manages its external relationships. However, there is much to be done and

the process of complete ICT enabled transformation is as yet incomplete.

2. Information systems have been at the heart of the City District

Government's shift to electronically enabled local government. The systems and

their deployment have been viewed- as a means to an end and not an end in

themselves. The crux of Faisalabad's desire to change is linked to providing

better services, to that end it has been keen to explore how technology can

support service provision. Inter-linked to that is to examine the way relationships,

particularly external ones are configured. So, how Faisalabad can engage with

citizens and society more openly and effectively therefore enable it to

understand their needs.

3. Faisalabad now possesses management information systems for finance,

human resources, CCB, revenue, roads and an integrated GIS. These were

developed by the City District Government through a process of detailed

consultation and incremental phased implementation over a four year period.

Carefully designed with users in mind, the IT department led the process using

soft systems approaches where consideration was given to' human systems' in

which such technologies exist. Furthermore, the City District Government

adopted the simple SDLC approach to many of the systems developed above.

Concurrently individual and departmental capacity was built in the process so

that the systems are managed and run successfully beyond the life of the

reforms programme.

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4. In turn, these systems have brought about efficiency and effectiveness in

service delivery for the various departments of City District Government. There is

now cheaper and quicker governance that gives= more than ever before. In

Faisalabad's important strategic areas, finance and human resource

management, departments are now producing the same outputs at a lower cost

and in shorter time thus significantly improving the service delivery mechanisms.

In some instances such as community development services, more outputs are

being delivered at the same total cost. The Government now has an evidence-

base for planning, building on the MISs.

5. Moreover, governance is working better now. The internet provides

opportunities for Government and external users alike. A higher quality of service

is provided through the internet. No longer do individuals need to travel to

Government offices where in efficient services are so often offered. Therefore

innovative Government has emerged providing new outputs and opportunities.

However challenges remain.

6. Over time the City District Government will need to address the digital

divide and how accessibility of information to the poor can be improved. Though

internet access is good, and there is evidence from Faisalabad that what it

publishes is accessed, the Government has much to do in building a knowledge-

based economy and society. Though significant strides have been taken by the

Government through information systems, there is some way to go in achieving

the gains associated with e-society. The e-government programme needs

commitment from the City District Government to continue. The Government

needs to develop information systems for the remaining departments like Health

and Agriculture etc. There is also needs to establish a monitoring mechanism,

perhaps by constituting a committee to oversee and monitor the process of

updating the information systems. Critically, Faisalabad highlights what can be

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done through technological innovation. These efforts can be replicated at smaller

costs.

7. Finally it is important to remember that ICTs are not a magic wand

changing the problems associated with poor governance. The role of e-

government needs to be viewed within broader organizational development goals

and commitment to providing quality public services. However technology must

now take centre stage if Local Governments in Pakistan are to modernize.

REFERENCES

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1. Heeks R (2006) Implementing and Managing E-Government: An

International Text, Sage Publications.

2. Hughes O (2003) Public Management and Administration Palgrave

Macmillan.

3, Escoffier and Hargreaves (2001) Making e-Governance work for Poor

People: Using Information and Communication Technologies to Improve

Governance in Developing and Transition Countries; Governance Department,

Department for International Development (DFID).

4. Ferguson M (2000) E-Government Strategies The Developing

International Scene: Paper presented to the conference "Internet, Democracy

and Public Goods" Universidad Federal Minas Gerais Belo Horizonte, Brazi.

5. Heeks R (2001) Understanding e-Governance for Development; Institute

for Development Policy and Management, University of Manchester I-

Government working paper series.

6. City District Government Faisalabad (2008) Performance Report No: 6,

Strategic Policy Unit, Pakistan.

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