E-Services on Socio-Economic Development in South Africa - Research Paper Example

? The Impact of E-Services on Socio-Economic Development in South Africa Supervisor School Degree Contact The Impact of E-Services on Socio-Economic Development in South Africa Chapter 1: Introduction E-services have drawn the attention of stakeholders lately due to their capacity to transform lives, especially by their use in fund transfer, marketing, and data collection, analysis and transmission among other uses. Suppliers, producers and consumers use the internet, mobile phone connectivity, and telephones to send messages and perform transactions that would have otherwise been impossible due to inaccessibility or the high costs of doing these transactions the traditional way. Accessibility to e-services has a high potential to add value to marginalized communities (Heeks, 2010), reduce poverty (Cecchini and Scott, 2003) and spur development. However, accessibility is not enough. Other factors must be put into account when making decisions on information technology developments for optimal benefits to all stakeholders and de-marginalization of marginal groups. E-services have revolutionized the global market to levels never imagined before; however, the true impact has not been quantified since the concept is new and has not been widely adopted, nor has it stabilized. Background The World Bank classifies the economy of South Africa as an upper-middle income economy, being the largest economy in Africa in terms of GDP per capita. However, over a quarter of South Africans are unemployed and a similar number lives on less than 1.25 US dollars per day; it is this population that e-services target most since they are primarily unbanked by the conventional commerce systems. The economy is an amalgamation of primary, secondary and tertiary industries, though it has shifted in the recent years towards being a tertiary economy, an industry that contributes about 65 percent of GDP (OECD, 2010). Despite the continuous growth of the online industry, the country still lags behind the world’s leading economies in terms of volumes and amounts spent in online transactions. Laws and policies passed and implemented in the recent years have increased access to e-services by the population mainly by increasing competition among service providers, which results in reduced prices for accessing and using e-services. For instance, the Telecoms Amendment Act of 2001 introduced a competing network provider for Telkom, such that for the two to attract and retain customers, they had to reduce the costs of their services (Z-Coms, 2002). Elimination of monopoly was the first step towards liberalization of the telecommunications sector, which was achieved by the Electronic Communications Act (ECA) of 2005. Finally, the Electronic Communication and Transactions Act of 2002 that was aimed at facilitation of e-transactions, e-governance, and other services introduced reliable and universal access to e-services. Context Cieslikowski et al. (2008) state that the world has seen exponential growth in coverage by mobile networks for both developed and developing countries; hence the impact of use of these devices cannot be ignored. For instance, money transfer services whereby money is sent through a mobile network and collected from a local retail outlet, have changed how the low-income communities transfer their money. Before the introduction of services like these, the poor had little or no access to banking and money transfer services, mainly because of high rates or the location of the banking institution in cities. In this case, ICT enabled the rural folk to have access to services that were previously a preserve of the rich. Further changes are expected on migration to digital terrestrial television migration, as digital signal will include all communication services bundled. Therefore, everyone will be able to access services with relative ease, and the government will use these channels to communicate matters on policy and development (Gupta and Shah, 2012). However, for these benefits to be enjoyed by the common citizen, stakeholders must incur the high costs needed for installation of infrastructure for these new technologies. Problem Statement Stakeholders must know how to implement information technology developments such that they have an optimal effect on the target population; therefore, they must know what factors to consider and in what areas they should invest. However, not enough information is available on the effects of e-services to the common people though it is widely believed that they are beneficial. Purpose of the Research The purpose of this research is to identify the level of adoption of information technologies, the effects of these technologies on the lives of the local people, the most relevant component of the technologies, and make recommendations on the best approach to implementation of information communication technologies for maximum benefits. Chapter 2: Literature Review Over a third of the world’s population has access to internet; over 45 percent of this number are people aged less than 25 years old (ITU, 2011). This means that investing in information communication technology is investing in the future, as the youths are the ones who are most likely to benefit from these developments. However, care must be taken to account for the poor who have little access to the internet to ensure that no population is left behind as the world reaps the benefits of ICT growth (Lurie & Sprigman, 2004). Lorie and Sprgman (2004) state that the most important of all information technology tools is the telephone; with the telephone being accessible, all other services can be availed to consumers including Wi-Fi and VoIP. Widespread access to e-services as a result of availability of ICT has a myriad of benefits trade (Heeks, 2010), empowers disadvantaged populations, reduces poverty (Cecchini and Scott, 2003) and gives allowance for e-governance (Gupta and Shah, 2012). In trade, it results in price stability, diversification of customers for firms, reduced costs and increased profits. Costs reduce due to price competition amongst suppliers because of product awareness among consumers, which gives them a wide range of choices to suit their taste, price and other preferences. According to Heeks (2010), e-services enable governments to communicate policies easily and sustainably to residents. Easy access to cost-friendly information on socioeconomic aspects of life empowers young people, women and other groups of the population that are usually discriminated (Muhammad, 2012). Moreover, there have been changes in policies that require universal access to ICT in order to enhance development, improve capabilities, and give the people options from which to choose (ICT Steering Committee, 2005). Recent changes have seen the near adoption of digital television that will see the convergence of broadcasting, broadcasting distribution, and telecommunications; which means that the three sectors will work using the same frameworks and infrastructures (Government Gazette, 2006a). Therefore, it should be as easy for people to access the internet as to watch a television broadcast; while this is a valid idea, it will face some limitations in the form of the high costs of installing infrastructure (Sahai and Machiraju, 2001). However, the benefits accrued from the system should give a return on investment in a relatively short time. Another policy factor is regulation, whereby the sector will be given standards, codes of ethics and operations, but will be decentralized to encourage responsibility, integrity and self-regulation among service providers and users (Independent Communications Authority of South Africa Act, 2000; Government Gazette, 2006b). The effect of e-services on socioeconomic development should be monitored for effectiveness; according to Heeks (2010), this can only be done accurately if the stage of technological development is considered. The author states that the industry focus changes over time from early adoption of technology to maturity, and goes through four stages including focus on readiness, availability, uptake and impact, respectively. Therefore, every study must account for the stage of adoption of e-services to measure the impact accurately. Chapter 3: Research Question Since accessibility is not the only factor in analyzing the impact of e-services on socioeconomics, other factors like the relevance of technologies to users must be identified in the process of implementing a new ICT structure. For instance, the developers of Mpesa in Kenya (an East African country) knew that the poor were unbanked, and needed a means of money transfer; when coupled with the widespread use of mobile phones, this offered a perfect platform for implementation of mobile banking. Moreover, since cost is a factor, new technologies must utilize existing infrastructures as much as possible. This study will evaluate the factors of accessibility, benefits, policy, and monitoring as discussed in the literature review; it will analyze the level of adoption, effects of e-services on socio-economics, identify potential for growth, and limitations and shortcomings of the system that is currently in place. The findings of this study will be used as a basis in the formulation of policies to promote investment in ICT and related technologies. This will ensure that the investment will be formulated in such a way that it will give the best benefits for most people. Study Question: what is the effect of using mobile phones as channels for e-services; and is there any room for improvement? Chapter 4: Research Methodology Research Methodology Since there are many previous studies proving that e-services have a positive effect on people’s lives, this study should aim at exploring these effects instead of coming up with new ideas. For instance, it is obvious from the literature review ICTs have been adopted in delivery of e-services, have positive effects, and there are differences in the relevance of these technologies depending on the users’ background. Therefore, the study will take a quantitative approach in order to quantify the trends that have already been identified in other studies. The questionnaires that will be used will be structured in such a way as to give data in quantitative format; by using questions limited to five-level Likert scales, and others to affirmative or negative answers (Smart and Paulsen, 2011). Research Design The study will have the design of a fixed research, which is appropriate since there are many previous studies showing correlations between factors in e-services and this will be an extension of previous studies. Moreover, numerous factors affect the extent of effect of e-services on socioeconomic development, and the researcher should be limited to avoid distraction from the main research question. In addition, this research will take a quantitative approach as the only accurate way to present such data is by using numeric values (Nardi, 2006). Sample The study will have 120 subjects, evenly drawn from primary, secondary and tertiary industry workers to ensure representation of people from different social classes. Moreover, the researcher will take a randomized cluster sample by minimizing cases of overrepresentation in terms of age, gender and race. This will increase the validity of the results of study for generalization. Questionnaire Piloting The questionnaire will be administered to 15 colleagues to test for the feasibility of the questions, and collect their comments, criticisms, and recommendations on adjustments to be made on the questionnaire. However, data collected in the pilot study will not be used in the final analysis. Data collection Data will be collected using bound response questionnaires that will incorporate five-level Likert scale questions and Yes/No questions (Jamieson, 2004). The mode of administration of questionnaires will depend on the subject preference and will include face-to-face, paper-and-pencil and electronic questionnaires. Volunteers for face-to-face administration of questionnaires have to be informed on aim and objectives of study for effective administration (Gillham, 2008). Data Verification The pilot study will also enable the researcher to determine the criteria for acceptance or rejection of values given by subjects. For instance, the questionnaire with include a few redundant questions that will enable determination of the truthfulness in the assertions of subjects. If the answers to more than half of these questions contradict, then the questionnaire will not be used in the final data analysis. Moreover, data will be checked for consistency with prior studies. Table of Questionnaire Elements and Data Analysis Research Area Questionnaire Element Analysis Approach Extent of use of e-services Respondents will be questioned on their awareness and frequency of use of e-services A t-test will be used to determine the level of correlation of factors and their statistical significance Benefits Questions will aim at identifying the reasons for using e-services, and the relevance of these reasons to the respondent’s life A frequency distribution table will be used to analyze data Effects of policy on development Background information on policies and results from the study will be observed for any direct or indirect relationship A t-test will be used to determine the level of correlation of factors and their statistical significance Monitoring The questionnaire will identify recent changes in the service and the effect of these changes to the subject Percentages and charts will be used to display the extent to which the changes affected the service positively or negatively Table 1: A table of the questionnaire that will be used to assess hypotheses and methods of analysis to support conclusions made from the study. Chapter 5: Research Strategy Proposal writing Data collection Data analysis Report writing Editing Proofreading Submission April May June July August Figure 1: Gantt chart for the study Chapter 6: Draft Chapter Outline I. Introduction – E-services have drawn the attention of stakeholders lately due to their capacity to transform lives, especially by their use in fund transfer, marketing, and data collection, analysis and transmission among other uses. 1. Background – The World Bank classifies the economy of South Africa as an upper-middle income economy, being the largest economy in Africa in terms of GDP per capita. 2. Context – Cieslikowski et al. (2008) state that the world has seen exponential growth in coverage by mobile networks for both developed and developing countries; hence the impact of use of these devices cannot be ignored. 3. Problem Statement – Stakeholders must know how to implement information technology developments such that they have an optimal effect on the target population; therefore, they must know what factors to consider and in what areas they should invest. 4. Purpose of the Research – The purpose of this research is to identify the level of adoption of information technologies, the effects of these technologies on the lives of the local people, the most relevant component of the technologies, and make recommendations on the best approach to implementation of information communication technologies for maximum benefits. II. Literature Review – Over a third of the world’s population has access to internet; over 45 percent of this number are people aged less than 25 years old (ITU, 2011). III. Research Methodology 1. Research Methodology – Since there are many previous studies proving that e-services have a positive effect on people’s lives, this study should aim at exploring these effects instead of coming up with new ideas. 2. Research Design – The study will have the design of a fixed research, which is appropriate since there are many previous studies showing correlations between factors in e-services and this will be an extension of previous studies. 3. Sample - The study will have 120 subjects, evenly drawn from primary, secondary and tertiary industry workers to ensure representation of people from different social classes. 4. Questionnaire Piloting – The questionnaire will be administered to 15 colleagues to test for the feasibility of the questions, and collect their comments, criticisms, and recommendations on adjustments to be made on the questionnaire. 5. Data collection – Data will be collected using bound response questionnaires that will incorporate five-level Likert scale questions and Yes/No questions (Jamieson, 2004). 6. Data Verification – The pilot study will also enable the researcher to determine the criteria for acceptance or rejection of values given by subjects. 7. Table of Questionnaire Elements and Data Analysis – Linking data collection approach with hypotheses testing IV. Research Strategy - Gantt chart for the study V. Limitations of the Study – The sample size used in this study may not be adequate to give an adequate statistical significance for the results to be generalized for the whole population. Chapter 7: Limitations of the Study The sample size used in this study may not be adequate to give an adequate statistical significance for the results to be generalized for the whole population. The sampling method will be randomized, but the researcher will use clustering to create some sense of representation in the study, which results in a sample that does not give all elements of the population a chance to be picked. Due to the different social classes from which subjects will be drawn, the researcher may have presumptions about candidates, which will reduce the level of the researcher’s objectivity to the study. Moreover, the data collected may not reflect the true feelings of subjects towards e-services, as the responses of a bounded response quantitative study are limited. This study needs considerable time and financial resources to be completed; due to a tight budget in terms of time and money, the researcher may have to scale down the study. This will reduce the statistical significance of the results, which may render the conclusions irrelevant for application in policymaking or as a basis for further research. Therefore, the researcher would recommend that future studies be done based on this one, whereby there will be the availability of resources to see through a fully-fledged study. References Cecchini, S., & Scott, C. (2003). Can information and communications technology applications contribute to poverty reduction? Lessons from rural India. Information Technology for Development, 10, 73–84. Cieslikowski, D. A., Halewood, N. J., Kimura, K., & Qiang, C. Z. (2008). Key trends in ICT development, 125-131. Gillham, B. (2008). Developing a questionnaire. London, UK: Continuum International Publishing Group Ltd. Government Gazette (2006). Electronic communications Act, 2005. Act No. 36, 2005. Government Gazette (2006b). Independent communications authority of South Africa Amendment Act, 2006. Act No. 3, 2006. Gupta, M., & Shah, S. (2012). ICT and e-governance: a complete overview. Journal of Information and Operations Management, 3(1), 178-182. Heeks, R. (2010). Do information and communication technologies (ICTs) contribute to development? Journal of International Development, 22, 625–640. ICT Steering Committee (2005). Draft Black Economic Empowerment Charter. Independent Communications Authority of South Africa Act, 2000, no. 13 of 2000. ITU (2011). ICT Facts and figures. The World in 2011. ITU World Telecom. Jamieson, S. (2004). Likert scales: how to use them. Medical Education, 38(12) 1217-1218. Lurie, P., & Sprigman, C. (2004). Broadband Marxism. Foreign Policy, 141, 82-83. Muhammad, M.R. (2012). Managing Relationship Between Process, Technology, People (PTP) Factors in E-Government Implementation: The Case of E-Syariah in Malaysia. ICCIT, 456-461. Nardi, P. M. (2006). Doing survey research: A guide to quantitative methods. Pearson/Allyn & Bacon. OECD (2010). Economic survey of South Africa 2010. Organisation for Economic Co-operation and Development. Retrieved from, http://www.oecd.org/document/21/0,3343,en_2649_33733_45637781_1_1_1_1,00.html Sahai, A., & Machiraju, V. (2001). Enabling of the ubiquitous e-service vision on the internet. E-Service Journal, 1(1) 5-19. Smart, J.C., & Paulsen, M.B. (2011). Higher education: Handbook of theory and research. Springer. Z-Coms (2002). Review of policies impacting the ICT sector: Policy & legislative review 2002. South African Information Technology Industry Strategy Project. Randburg: Z-Coms. Read More