Using SAP in Electronic Government - Essay Example

Using SAP in Electronic Government SAP is participating in assessment programs in the U.S. and Europe to address the challenges of E-Government By Ahmed Hefny Yahya Harissi Missouri Western State University summer 2013 1- Abstract Saudi Arabia plays a central role in the development of the Arab region. This includes the development of e-government capability to extend government services more effectively to the general public. At its highest, e-government capability allows for the establishment of e-Democracy whereby the citizenry may openly express its sentiments to the political leadership and significantly influence its decision-making and policy-setting. Challenges to the full range of e-government capabilities include the technical, organizational, and socio-economic conditions currently in place in the Kingdom. The study finds that immediate concerns are technical in nature, including weakness in the IT infrastructure, lack of knowledge, inadequacy in security and privacy of information, and lack of training of personnel. In the longer term, socio-cultural factors and a governance system that allows for e-Democracy are salient factors. For now, SAP assistance and programs promise to contribute much towards the technical and structural foundation of a robust e-government system. 2- Introduction The impetus to develop e-government capability is a primary concern of all nations, particularly the member states of the United Nations, which has made it a priority initiative. Saudi Arabia is expected to play a pivotal role in e-government establishment in the Middle East region, not in small part due to the UN assessment that it is one of the more advanced Arab nations in information and communications technology (ICT). The business sector has long forged ahead in ICT applications, and further development of the nation necessitates the adoption of ICT in making the government more responsive and interactive with the citizenry and business sector. The challenges that tend to impede e-government development must be first addressed in order for efforts to be successful. 3-The scope of the research The main purpose of this research consists of three axes. First, the definition of SAP and its characteristics. Second, identify the E-Government and know its components. Moreover, identify the challenges that facing e-government. Finally, the role of SAP in reducing these challenges and the development of e-government shall be discussed. 4- Definition of SAP and its characteristics The Systems Application Products (SAP) portfolio is a modular system, meaning that the software is packaged separately according to its various functions. The modular feature of this system allows it a great amount of versatility, making it suitable for application in small and medium scale enterprises, large-scale business corporations, and even government bureaucracies. There are a number of SAP solutions have been found by e-governments to be useful for their operations. These include: SAP® Urban Matters is an application that enables the systematic and integrated management of cities, primarily targeting efficient urbanization, smarter economies, sustainable growth and empowered communities. The application supports the strategic execution and harmonious coordination of the 8 aspects crucial to a best-run city: government, human and social capital, infrastructure, financial expertise, strong economy, resilience and sustainability, societal character, and global attractiveness (Column Five). SAP® ERP is SAP’s enterprise resource planning software leads the market and applies to the world’s largest organizations as well as medium and small companies in more than 25 different industries. The SAP® ERP enables the organization to acquire role-based access to critical data, applications, and analytical tools in order to streamline procurement, manufacturing, service, sales, finance, and HR processes (SAP ERP). SAP® Public Budget Formulation is a flexible budgeting application that creates integrated public sector budgets that provides analytics tools to aid the user to allocate scarce resources, optimize the budgeting process and support faster and more informed decision-making. SAP-PBF was designed by public sector budget officers to ensure consistency, integration, and configurable security across multiple data sources (SAP CDS). SAP® BusinessObjectsTM BI is a data-rich business intelligence softwarae that facilitate faster and better decision-making by employees aimed at increasing their overall productivity. The application provides users with self-service access to the data wherever such data may reside, and invaluable insight to support effective and collaborative decisions to boost overall productivity. It enables faster response times when exceptions and events occur, improved performance metric tracking, higher accountability and enhanced visibility into key performance indicators according to lines of business (SAP BI). SAP® Data Services is an information delivery system designed to support an organization’s most crucial business functions in a cost-effective manner. The data services software aids users in integrating, transforming, and improving their data at either the project or enterprise level, thereby allowing them to better streamline processes, create greater operational efficiencies, reduce risks, and arrive at more informed decisions (SAP IM). SAP® Treasury and Risk Management aims to optimize working capital and to make the most of the organization’s financial resources. It aims at more effectively managing debt and investments, monitoring the full spectrum of financial instruments, and establishing greater transparency and control. The SAP TRM streamlines and simplifies banking relationships with treasury and financial risk management, consolidates interfaces to reduce the cost of e-banking communications and transaction fees, and controls and monitors cash (SAP Finance). SAP® solutions for governance, risk, and compliance (GRC) reduces the cost and effort of the proactive prevention of risk events and compliance violations. Real time insight is provided the user on their risk position, GRC processes are automated, and risk and compliance programs are embedded in the organization’s strategy formulation, planning, and implementation. The software enhances centralized monitoring and management to reduce unauthorized access risk, and helps minimize the impact and duration or risk events when they do occur (SAP GRC). SAP® ERP Human Capital Management automates employee administration, time management, payroll, and legal reporting processes. It supports the firm in complying with the changing local and global HR regulations, and helps management in understanding, evaluating, and measuring the workforce contribution to the organization’s net earnings or surplus. Primarily it helps to attract and hire the best recruits and to make them productive as quickly as possible. It pinpoints talents within the organization and aligns employee goals with the organization’s objectives (SAP ERP HCM). Aside from its line-up of software packages, SAP extends its expertise as consultant to Saudi Arabia. The parties signed a memorandum of understanding (MOU) in March of 2013, in which it was agreed that SAP shall provide Saudi graduates SAP training and certification. The training shall encompass a wide range of topics, from negotiation and communication, to conflict management and ‘design thinking,’ to training on core business and industry solutions. Plans are under way for the creation of the Saudi Arabian arm of SAP’s Training and Development Institute (Paye). 5- The e-Government Electronic government, or e-government, pertains to the rapidly expanding use of information and communications technology (ICT) in public administration functions. Often, the use of ICT is directed at enhancing the capability for public service delivery, public administration governance, transparency and accountability. The challenge in e-government delivery is the need to address a complex network of stakeholders, among whom are international donors, private-sector ICT vendors, and ICT investment partners (Chatfield & Alhujran 151-152). The objective of e-Government does not end with computerization of government offices, but to gradually transform how government operates and how it relates to its citizens and businesses within its jurisdiction, and among its component agencies (Al-Mushayt, Haq & Perwej 88). 6- The e-Government in Arab countries A study conducted by Chatfield and Alhujran confirms a wide gap existing between the e-government digital capabilities of Arab countries and the leading developed countries. The study involved the assessment of 16 Arab countries, revealing that aside from the difference in the level of development in e-government Web sites and portals, there was also a disparity with regard to the provisions for electronic democracy (or ‘e-democracy’) which enable public participation in online consultations and policy making . The development of e-government capabilities in Arab countries may be perceived in four distinct stages of service delivery and online capabilities. These are identified by Chatfield and Alhujran as follows: One-Way Information Flows. This is the first stage of e-government, and as the term implies, is described as one-way online information flows from the government to the public. A government Web-site or Internet portal is launched through which citizens and organizations can access government information services, and while the information is available online, it represents only the most rudimentary information processing capabilities and does not allow for interactive communication. Examples include government database access and downloading of government forms, policies, or documents (Chatfield & Alhujran 153). Two-Way Interaction. The second stage of e-government development involves two-way interaction capability or two-way information exchange between the public and the government. At this stage, the e-government portal or website allows for citizens to contact government services through e-mail, complete forms online, or upload completed forms and transmit them to the appropriate government office over the Internet from government kiosks. The approach shifts to a user-centric model at this stage (Chatfield & Alhujran 154). Payment Transactions. The third stage is e-government capability that allows for the execution of payment transactions, necessitating creation of a real-time online channel available 24 hours a day, 7 days a week. Online secure payment and information privacy issues complicate the third stage, requiring the acquisition of highly sophisticated hardware and software which many governments are unable to acquire and install on a large scale; thus, many government find it difficult to move to this third stage (Chatfield & Alhujran 154). E-Democracy. The fourth and highest level of e-government capability is that which permits public participation in the process of public consultation and policy-making. Not only are privacy and security concerns required to be addressed, but also the total commitment by the government towards improved public governance, transparency, and accountability. Without such commitment, the effort to engage the public will only result in failure for lack of credibility and inability to inspire trust among the public. The aim of e-democracy is pre-conditioned upon effective public access to truth, complete, and relevant government information, and engendering confidence in the government to elicit public participation and initiative (Chatfield & Alhujran 154). Al-Sarabi & Khanfar observe that public confidence in the government is vital, because ‘neither the use of computers nor the automation of complex procedures can bring about greater effectiveness in government or promote civic participation (Al-Sarabi & Khanfar 155). According to Chatfield and Alhujran, their assessment of e-government service delivery capabilities resulted in the following comparative table: E-Government Service Delivery Capabilities of the Samples Countries Stage 1 Stage 2 Stage 3 Stage 4 World E-Government Leaders (top six) United States X X X X Denmark X X X X Sweden X X X X UK X X X X South Korea X X X X Australia X X X X Arab E-Government Leaders UAE X X X X Bahrain X X X X Qatar X X X X Arab E-Government Up-and-Comers Jordan X X X Lebanon X X Kuwait X X X Egypt X X X Saudi Arabia X Oman X Tunisia X Algeria X Morocco X Syria X Arab E-Government Laggards Sudan X Yemen X Iraq X Source: Chatfield & Aljuhran 162 This assessment was conducted in 2009, and in the interim significant political events such as the Arab Spring have taken place, possibly modifying the results of the above assessment significantly, particularly in those countries where a change of government has taken place. 7- The case Saudi Arabia Is a country located in West Asia and constitute the bulk of the Arabian Peninsula, an area of about 2.14969 million square kilometers bounded on the north of Iraq and Jordan to the west by the Red Sea and south Yemen, Oman and the Middle Kuwait, Qatar and the United Arab Emirates and Bahrain related to the Kingdom by King Fahd Causeway on the Arabian Gulf. The Kingdom has gained political stability through the House of Commons, and its economic stability thorugh the oil economy. The Kingdom has the second largest reserves of oil in the world and accounts for nearly 90% of oil exports. It ranked twenty-fourth among the economies of the world in terms of GDP. The population is nearly 28,376,355, 19,405,685 of whom are citizens according to official statistics. International reports show that Sunni Muslims make up the majority of the population. In different schools there is sectarianism but the Hanbali according to interpretations of Muhammad bin Abdul Wahhab are prevalent. There is a Shiite minority in the eastern regions of the country and in the south, specifically in the area of Najran. There is a large number of non-Muslim expatriate workers who are adherents of different religions. 7.1. The organization The organization to be focused on is the Saudi Arabian government. The Kingdom is a monarchy grounded in the Islamic faith; it is headed by the King who is simultaneously the commander in chief of the military. He is assisted in his duties by the Crown Prince whome he selects, and who shall eventually succeed him to the throne. A Council of 22 ministers comprise the King’s Cabinet, and it is through them that the King governs. Each of the ministers heads a different area of governance, such as finance, education or foreign affairs (Royal Embassy of Saudi Arabia). The legislative body of Saudi Arabia is the Consultative Council (Majlis Al-shura), which proposes new laws and amend those existing. There are 150 members in the Consultative Council, appointed by the King for a term of four years which may be renewed. The country overall is divided into 13 provinces which are each administered by a governor and deputy governor, and a council. The judiciary is comprised of Shariah Courts which decide disputes on the basis of Islamic law. The King acts as the final court of appeal, and is empowered to issue pardons. (Royal Embassy of Saudi Arabia). 7.2 e-Government roles Saudi Arabia’s leadership, acknowledging the essential role of e-government in the country, created the ‘Yesser’ program, the vision statement of which is: ‘By the end of 2010, every person in the Kingdom would be able to enjoy from anywhere and any time the e-Government services which will be user friendly and entirely secure’ (Al-Mushayt, Haq & Perwej 91). The program enables most of the government agencies to create their own websites; unfortunately, most of these websites are still inefficient because they provide only the most basic information about the agencies, and frequently the information they contain are outdated. Few of the websites have interactive capability and higher level functionality, such as the ability to submit a form, seldom are there websites which enable job applications, arranging for an appointment, or renewing of a license (Alshehri & Drew 1053). The vision of the Saudi Arabia Yesser program is graphically depicted below: Saudi Arabia “Yesser” e-Government Vision (Nawafleh, Obiedat, & Harfoushi 11) Presently, the Yesser e-government program includes three main projects: E-payment gateway: Electronic payment will be facilitated between government agencies to business, business to business, and between government and citizens. Smart card: The innovative thrust is to establisha digital system enabled by semiconductor chips which will store all citizens’data including identification, health information and driving records. MOI: An e-government portal will enable citizens to obtain identification cards and passports as well as driving license and certificates, according to the needs of the citizens. (Nawafleh, et al 11). 7.3 e-Government processes According to the UN assessment, Saudi Arabia, together with the UAE and Bahrain, lead the transformation towards e-governments in the Middle East region and the creation of citizen-centric governments with the increasing reliance on social networking, communication technologies and a fast-growing educated population. Key initiatives that support this development include: (1) network readiness, (2) infrastructure readiness, (3) service availability, (4) citizen inclusion, and (5) development of a national identity management infrastructure (Al-Khouri 85). Notwithstanding the UN assessment, Saudi Arabia is still only at the threshold of establishing e-government capabilities at the level of the most developed countries (Alshehri & Drew 1053). A number of barriers pertaining to the technical, organizational and social barriers continue to impede e-government capability development, which are ranked in the following table according to the opinion of a wide number of randomly sampled informed Saudi citizens polled in a survey (Alshehri & Drew 1054). Challenges of e-Government Services Adoption Rank Challenges Level of agreement 1 IT infrastructural weakness 62.8 % 2 Lack of knowledge about e-government program 56.5 % 3 Lack of security and privacy of information 46.6 % 4 Lack of qualified personnel and training courses 44.7 % 5 Culture differences 33.8 % 6 Leaders and management support 32.3 % 7 Lack of policy and regulation for e-usage 31.3 % 8 Lack of partnership and collaboration 28.6 % 9 Lack of strategic plans 25.6 % 10 Resistance to change to e-systems 19.3 % 11 Shortage of financial resources 19.0 % Source: Alshehri & Drew 1058 Other challenges were identified by Al-Mushayt et al. including: The provision of opportunities for equitable and affordable access to high speed Internet services to address the digital and technological divide (i.e., the disparity of people’s access to ICT due to differences in socio-economic status). The establishment of a provisioning method which is sustainable, scalable and economically viable, in order to accelerate acceptance and usage of e-Government services now and into the future. The creation of a business environment that encourages private industry investment, collaboration and alliances. Creation of a marketing environment based on a “Community of Interest” approach that generates revenue for re-investment, to enable the expansion and evolution of services for the benefit of the community. Assurance that the solution is performance-based and addresses the key dimensions of financial and economic development, reduction of redundancy, fostering of democratic principles, and enhancement of service to citizens and other constituencies. Development of a solution that offers opportunities for convergence, consolidation and collaboration to multiple agencies at all levels of government (Al-Mushayt et al. 94-95). Source: Al-Mushayt, Haq & Perwej 90 8 – Results Saudi Arabia is at the forefront of e-Government capabilities development, according to the UN assessment, and since it is the largest Arab Islamic country it is faced with numerous challenges. The availability of flexible applications is only one of the technical hurdles it has to face, although by preliminary scanning it is evident that the SAP products for public administration are both sufficiently specialized to deliver detailed output in immediately useful form, and flexible to allow for customizing to meet the needs of specific governments. The SAP ERP, Public Budget Formulation, Business Intelligence, Data Services, Treasury and Risk Management, GRC, and Human Capital Management all help to strengthen the internal organizational function of the bureaucracy, a prerequisite before the government may embark on the next stages of e-governance such as the interactive phase with public access. Additionally, the SAP Urban Matters appears to have the capability for offering interactivity and, progressively forward, e-Democracy. The 2009 study of Chatfield and Alhujran places Saudi Arabia at only Stage 1 capability (one-way information flow), and the UN study suggests it might be at Stage 2 (two-way interactivity). Unlike the smaller Arab countries of UAE, Bahrain and Qatar which have attained Stage 4 (e-Democracy), and the other Arab e-government up-and-comers, Saudi Arabia’s size alone makes its governance machinery a formidable environment to plan for. The Yesser e-government program calls for more than the mere computerization of the functions of government agencies, although the Alshehri and Drew study identified technical factors at the top of the impediments to e-government in Saudi Arabia. Challenges also include organizational and social elements in the delivery of the level of service that would qualify as e-government. The most advanced stage of e-government, e-Democracy, does not require a high level of technical capability; in fact, some countries have acquired e-Democracy without having acquired the capability for online payment transactions (Chatfield and Alhujran). Saudi Arabia has not attained this stage until it has a more empowered society, a stronger grassroots civil society structure, and a transformed social consciousness capable of sustaining a lively discourse with the political leadership. 9 - Concluding Remarks This research set out to determine the challenges of developing e-government capabilities in Saudi Arabia and examine solutions to address these challenges. Academic literature identified infrastructural IT weakness, lack of knowledge, lack of security and privacy of information, and lack of qualified personnel and training as the predominant challenges. These shortcoming may be addressed in a straightforward manner by the various SAP programs earlier described in support of public administration function, if the aim of e-government is to attain interactivity and payment transaction capability. More profound, however, are the socio-cultural and organizational challenges, which require education, transformation, and empowerment of the general public. Least of the challenges is financial, attesting to the availability of resources for acquiring at least the technology to succeed. References "Government of Andhra Pradesh Improves Service to Citizens and Focus on Sustainable Funding With SAP® Solutions for Treasury and Risk Management." M2 Presswire 17 June 2013: NewsBank. Web. 19 June 2013. Al-Khouri, Ali M. "E-Government in Arab Countries: A 6-Staged Roadmap To Develop The Public Sector." Journal of Management & Strategy 4.1 (2013): 80-107. Business Source Complete. Web. 16 June 2013. Al-Mushayt, Omar S., Yusuf Perwej, and Kashiful Haq. 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