Lithuanian egovernment Workshop with MicroLink Group and SAP AG

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Lithuanian e-governmentWorkshop with MicroLink
Group and SAP AG
Vilnius Jan 24, 2001
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MicroLinks overview

• The largest Baltic IT and internet company
• Sales in 2000 EUR 60 million (2 m EUR in
  Lithuania)
• 750 employees, 70 in Lithuania
• The only truly pan-Baltic IT company
• No. 1 system integrator, No. 1 PC maker, No. 1
  internet provider, No. 1 portal in the Baltics
• Activities in Lithuania Delfi Internet, Delfi
  portal, sales of PCs and telecom equipment, large
  IT projects
• Major growth planned in Lithuania for Y2001
• Lithuania is becoming the Baltics biggest IT and
  internet market by 2003

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Overview of SAP AG

• 3rd largest software company in the world
• Global company with headquarters in Germany
• The worlds leading enterprise and government
  software maker
• Sales in 9 months 2000 - 5.5 billion EUR
• 24000 employees
• SAPMarkets Subsidiary of SAP focusing on B2B and
  internet
• Clients in Lithuania Ekranas,

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Todays agenda

• Lithuania.com MicroLinks vision in e-government
  issues with experience from Estonia and Latvia
• Allan Martinson, CEO MicroLink
• Riina Einberg, project manager, MicroLink Systems
• Antra Zalite, head of Enterprise Applications,
  MicroLink/Fortech
• Teleconference with Estonian prime ministers IT
  advisor Linnar Viik
• SAPs vision and experience in e-government.
  E-procurement and citizen portal
• Natalia Parmenova, business development manager,
  SAPMarkets

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Lithuania.comHow to dot-com a country ?
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Why to change ?

• A state is a service provider for its citizens
• Citizens pay for the service by paying taxes and
  expect the most value for their money
• A small nation-state is an expensive hobby
• E-governments only goal is to help the state to
  fulfil its functions better
• E-government must deliver more value for less
  money for its citizens

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Why e-government ?

• All previous historic improvements of governments
  and societies required high investments, but gave
  slow and limited return
• Information era and internet open possibilities
  for radical improvements with relatively little
  investment, but quick and virtually unlimited
  return.
• A government is a large information-processing
  task.
• MicroLinks estimate 20 of Estonian state
  budget is spent on gathering, managing and
  keeping information

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3 crucial components of e-society

• Access
• Attitude
• Content Services

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Access and availability

• If there are no people in the Net, e-goverment
  makes no sense
• Metcalfes Law The value of the network is a
  square of the number of people in the network
  (N²)
• 100000 people in the Net can make 10 billion
  connections.
• 1 million people in the Net can make 1 trillion
  connections
• E-society starts to evolve fast at 10
  penetration
• Lithuania is just passing this mark

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Internet penetration in the Baltics
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How to boost penetration ?

• Estonian experience The government cannot force
  people to the Net, but it can help to take down
  barriers
• Booster No. 1 Connect the public sector
• Booster No. 2 Liberate telecom market fast
  regardless of what the old telco says

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Connect the public sector

• Estonian experience
• Tiger Leap project (since 1996)
• 100 of schools with computers (25 children per
  PC)
• 100 of schools with internet connection (75
  with permanent connection)
• 16 m EUR spent in 4 years
• 100 of public sector connected
• 20000 workplaces connected
• EEBone (govt.), Village Road (local auth.)
  projects
• 100 public internet points all over Estonia

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Liberate telecom sector

• Estonian free telecom market first in the
  Baltics, but Lithuania not far away (2003)
• Impact was felt already in autumn 1999 (free
  internet)
• Internet usage jumped 50 in one month (October
  1999)
• Internet dial-up traffic per capita (minutes,
  1999)
• Est 496 Lat 60 Lit 70
• Internet dial-up minutes in month (ML estimate)
• Estonia 60 million
• LatviaLithuania 50 million

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New initiative beat Finland by 2003

• Private initiative to be announced in February
• Main sponsor Hansabank (100 m EEK 25 m LTL
  over 3 years)
• Target to beat Finland in internet penetration
  in 3 years (become No. 1 in Europe ?)
• Target groups bluecollars, farmers, pensioners
  etc
• MicroLinks initiative bring most companies
  online by 2003

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3 crucial components of e-society

• Access
• Attitude
• Content Services

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Attitude marketing

• An often-forgotten component of building
  e-society
• Internet needs face and name
• Attitude comes from opinion leaders
• Estonian examples
• Linnar Viik, Prime Ministers IT advisor Tiger
  Tour
• Prime Minister Mart Laar paperless government
  meetings, e-cards by Christmas
• President Lennart Meri patron of the Tiger Leap
  project

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Mart Laars Christmas card 2000
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3 crucial components of e-society

• Access
• Attitude
• Content Services

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Content Services

• The most important component
• The actual reason to be in the Net
• Private sector creates most of the content
• E-banking (25 users among adult population)
• Leasing (25 of the leasing deals over net)
• Mobile parking (10000 users in Tallinn)
• New media
• E-billing (gas, electricity, telephone)
• Business-to-business applications
• etc

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Core principles of building e-government

• Focus on well-defined projects, not to do all
  things for all people
• Huge effect can gained through small efforts
  (8020 principle)
• Try not to overregulate, even in the government
  all the best things in e-government have been
  done accidentially and based on local
  initiative
• ... but have clearly defined power and vision
  center with licence to kill overseeing the
  e-government

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Government portal

• All government branches, municipalities in the
  Net
• All officials have e-mail and must answer to it
• Very wide range of government information is
  public in real time
• Required by the Public Information Law (2000)
• Centralized government portal (www.gov.ee)
• Next step Personalized citizen portal
• Oriented on public services, not just listing
  contacts
• Government IS a portal with physical front-end,
  not vice versa

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E-tax department

• Classical case of unpunished initiative
• Online tax declarations in cooperation with banks
  in 2000 (7 of the declarations presented online)
• Reduced time of inputting and checking data
• Less time spent by taxpayers
• Outsourced server management
• Tax departments server and databases managed by
  MicroLink Systems following public tender

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Paperless government

• (Almost) all state institutions use
  internet-based document and workflow management
  systems
• The cabinet of ministers decided to get rid of
  papers in August 2000
• Project completed in 1 month
• Cost 0.7 m LTL
• Payback time 1.5 years

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Digital signature

• Law adopted in December 2000
• The government will launch own PKI authority
  private ones
• No real use of digital signature yet
• The private sector (banking) will probably be
  early adopter
• E-notarius

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E-elections

• Current experience Election results gathered and
  published using internet (parliamentary and local
  elections in 1999)
• Law on elections amended in 2000, allowing next
  general and local elections to be held over
  internet (2002-2003)

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State registers

• Current status no effective central
  administration of registers, limited cross-usage
• Project on creation of uniting layer of registers
  allowing online cross-usage (XML)
• One register fully managed by private company
  (Estonian Central Depositary)

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E-procurement

• Goal to move all government tenders to internet
  by 2003
• More on e-procurement ideas in SAPMarkets
  presentation

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Conclusion

• There is no manual on building an e-government
  Everybody is looking for answers
• Lithuanian e-government concept is very clear and
  radical document
• No other Baltic government has been so open in
  discussions of the e-government concepts
• We wish you all the luck and are anxious to
  participate...
• ... because we like it !