Digital transformation of Government : from E-Government to intelligent E-Government

Digital Transformation of Government:

From E-Government to Intelligent E-Government

by

Eunjin Koo

Submitted to the System Design and Management Program in Partial Fulfillment of the Requirements for the Degree of

Master of Science in Engineering and Management at the

Massachusetts Institute of Technology February 2019

C 2019 Eunjin Koo. All rights reserved.

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Digital Transformation of Government:

From E-Government to Intelligent E-Government

by

Eunjin Koo

Submitted to the System Design and Management Program

on January 25, 2019 in Partial Fulfillment of the Requirements for the Degree of Master of Science in Engineering and Management

Abstract

The wave of the fourth industrial revolution leads us to an intelligent information society by spreading intelligent information technology (Al, IoT, Cloud, Big Data, etc.) to almost every aspect of our lives, such as industry, economy, culture, society, etc.

As the fourth industrial revolution accelerates, it is crucial to establish an innovative strategy for Government that utilizes these technologies. Notably, to keep up with the changes in the intelligent information society, it is necessary to make a significant transformation of the current E-Government operation or E-Government service delivery. Therefore, this thesis focuses on the transformation to an intelligent E-Government, a new concept of E-Government that has absorbed intelligent information technology. Specifically, this thesis: 1) Analyzes the current E-government system using the ARIES framework and several other techniques, and examining the necessity of the transformation to an intelligent Government system. 2) Explores a successful transformation strategy to an intelligent E-Government from the organizational and political perspectives, and finally, 3) Proposes recommendations for how to implement an intelligent E-Government from a technical point of view.

The expectations of citizens for government services are multiplying. Also, the emergence of the intelligent information society, the appearance of various new technologies, and the limitations of the current Government system require an improvement of the existing E-Government system. The primary goal of this thesis is to investigate a concrete and feasible plan for how to successfully transform the E-Government system in line with the evolution of technology.

Thesis Supervisor: Donna H. Rhodes

Title: Principal Research Scientist, Sociotechnical Systems Research Center

Acknowledgements

I would like to dedicate this thesis to my late grandmother, Ho-boon Park, who had true love and commitment to her family.

I am highly indebted to my advisor, Dr. Donna H. Rhodes, not only for her guidance and support for this thesis from the very beginning but also giving me the opportunity to learn about ARIES and transformation of government and enterprises. I am really thankful to her for being flexible and providing valuable comments and feedback to shape the thesis into its current form.

I would also like to express my sincere appreciation to the SDM faculty, other professors at MIT, and especially thankful to Joan Rubin, the Director of System Design & Management program for giving me an opportunity to be a part of the program and encouraging me always to challenge my existing boundaries of knowledge and be brave in front of new world.

Big thanks to my wonderful friends from MIT and Korean Catholic Church enriched my journey and made incredible contributions to my experience in the last one and half year. They expanded my limits, and I could have gone on with their friendship and support. Also, I am very thankful to my old friends who always encourage me and become my side and Ambassador Sang-jin Lee and Professor Soon Ki Jung for giving me courage and wisdom.

Finally, I could not be where I am today without my loved ones; my parents, Kyung-Hee Cho and Bonsik Koo for their support and encouragement from a distance. They helped me develop balanced thinking, my approach to everything, and my character as a person. Also they offered me the ability to think about the possibilities, and both always encouraged me not to forget what opportunities I have been blessed with. Lastly, my younger brother, Sang-Mo Koo has always been extraordinarily supportive of me and my dream. Thank you!

Eunjin Koo 20191 MIT SDM 4

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TabLe of Contents

Table of C ontents ...

6

List of Figures ...

9

List of Tables ...

11

List of A cronym s...12

Chapter 1: Introduction...13

1.3.1. Objectives, Focus of the Thesis ... 15

1.4. Scope ... 16

1.5. Thesis Structure ... 16

Chapter 2: Overview for Digital Transformation of Government ... 17

2.1. Transformation of Government... 17

2.2. Digital Transform ation ... 19

2.3. E-Government...22

2.4. Intelligent E-Government ... 24

Chapter 3: Landscape, Stakeholder Analysis and Current E-Government ... 27

3.1. Landscape...29

3.1.1. Ecosystem (External Landscape)...29

3.1.2. Internal Landscape ... 32

3.2. Stakeholder Analysis ... 34

3.2.1. Stakeholder Understanding (Identification) ... 34

3.2.2. Stakeholder Value Network ... 36

3.3. Current E-Government ... 37

3.3.1. Description Using the Eight Lenses of the ARIES Framework ... 37

3.3.2. SW OT Analysis ... 38

3.3.3. Strategic Imperatives for Transformation from Government to Intelligent E-Governm ent ... 40

Chapter 4: Strategy for Trasformation (Organizational Approach)... 43

4.1 Ensuring Success in the Digital Transform ation of Governm ent ... 43

4.1.1. Leadership...43

4.1.2. Purpose and Priority ... 47

4.1.3. Cadence in Delivery ... 48

4.1.4. Communication ... 49

4.1.5. Capability for Change ... 52

4.2. Roadm ap...53

4.3. Case Study I: Strategy of Leading Countries ... 57

4.3.1. U.K.: Government Transformation Strategy... 57

4.3.2. CANADA: Blueprint 2020 ... 58

4.3.3. URUGUAY: Digital Government Strategy 2020 ... 59

4.3.4. SOUTH KOREA: Korea E-Government M aster Plan 2020 ... 60

4.3.5. NEW ZEALAND: Government ICT Strategy 2015 ... 61

4.3.6. ISRAEL: The Digital Israel National Initiative 2017... 62

4.3.7. SINGAPORE: Sm art Nation 2017... 63

4.3.8. ESTONIA: Digital Agenda 2020 for Estonia ... 64

4.3.9. Summary of 'Case Study I: Strategy of Leading Countries' ... 65

Chapter 5: Implemetation of Intelligent E-Government (Technical Approach) ... 66

5.1. Governm ent as a Platform (GaaP) ... 66

5.2. Linked O pen Data (LOD)...69

5.3. Case Study II: New technologies can be applied to Intelligent E-Government ... 72

5.3.1. Digital ID N etwork (United N ations, UN) ... 73

5.3.2. Intelligent Personal Assistant (USA) ... 74

5.3.3. Little Ripper Lifesaver (Australia) ... 75

5.3.4. I-Japan 2015 (Japan) ... 76

5.3.5. Big Data and Smart Urbanism (Brazil) ... 77

5.3.6. Dementia Ambient Care (European Union, EU) ... 78

5.3.7. PyeongChang W inter Olympics 2018 (South Korea) ... 79

5.3.8. VR(Virtual Reality)/AR(Augmented Reality)/MR(Mixed Reality) ... 80

Chapter 6: Conclusion and Future W ork ... 81

6.1 Conclusion ... 81

6.2. Future W ork... 84

Bibliography... 87

List of Figures

Figure 1-1: Diagram of Research Approach ... 13

Figure 2-1: Evolution of Digital Transformation ... 20

Figure 2-2: Types of Interactions in E-Government ... 23

Figure 3-1: The Enterprise Element Model ... 26

Figure 3-2: The Architecting Process Model ... 27

Figure 3-3: Stakeholder Value Network (SVN) of E-Government ... 35

Figure 3-4: SWOT Analysis of E-Government... 38

Figure 4-1: The six types of leader for digital businesses ... 43

Figure 4-2: Comparison of capabilities between successful & unsuccessful transformation...47

Figure 4-3: Comparison of action between successful & unsuccessful transformation ... 51

Figure 4-4: Roadmap for transformation of E-Government ... 53

Figure 4-5: Three broad of component of the strategy ... 56

Figure 4-6: Blueprint 2020 Input, Actions and Outcomes... 57

Figure 4-7: Six areas of actions, the objectives and goals of DGS ... 58

Figure 4-8: 5 Strategies and their Major Initiatives of "ENJOY" ... 59

Figure 4-9: ICT Strategy at a glance ... 60

Figure 4-10: Primary Goals, Strategic Objectives for Digital Israel ... 61

Figure 4-11: Milestones for Strategic National Projects...62

Figure 4-12: General objective and sub-objectives ... 63

Figure 5-1: The mapping between Platform, Open and Governance ... 65

Figure 5-2: The GaaP concept from an IT nuts and bolts perspective ... 66

Figure 5-3: The Linked Open Data Cloud ... 68

Figure 5-4: Overview of LOD data store technology ... 70

Figure 5-5: Top 5 Digital Transformation Trends for 2018 ... 71

Figure 5-6: Implementation of identity projects, illustrated in Malawi ... 72

Figure 5-7: Exam ples of Al Application ... 73

Figure 5-8: A l A ssistants ... 73

Figure 5-9: The W estpac Little Ripper ... 74

Figure 5-10: The W estpac Little Ripper ... 74

Figure 5-11: Illustration of Kasumigaseki Cloud of Japan . ... 75

Figure 5-12: SmartSantanderRA augmented reality app ... 76

Figure 5-13: The screenshot of Video Annotation Tool ... 77

Figure 5-14: Comparison 4G and 5G . ... 78

Figure 5-15: Roadmap for 5G in PyeongChang ... 78

Figure 5-16: Potential of VR & AR ... 79

Figure 5-17: AV Application in Manufacturing ... 79

Figure 5-18: M V Application in M edical Treatment . ... 79

Eunjin Koo 20191 MITSDM

Comparison of transformation of the public sector and the private sector ... 18

Comparison E-Government and Intelligent E-Government ... 25

A Set of Techniques in the ARIES Framework ... 28

Ecosystem Factors of E-Government ... 30

Capabilities in E-Government Context ... 33

Stakeholder A nalysis...34

The Eight Lenses of the ARIES Framework in E-Government Context ... 37

The main agents and their objectives of the eight countries ... 64

Comparison GaaP and PfG ... 67

Comparison LOD and Web ... 69

Eunjin Koo 20191 MITSDM

List of Tables

List of Acronyms

Definition

Agency for the Development of E-Gov and Information Society and Knowledge

Comment

Agencia de (lobierno ElectroOnico y Sociedad de la Informaci6n y del Conocimiento, URUGUAY

AR Augmented Reality

ARIES ARchitecting Innovative Enterprise Strategy Nightingale & Rhodes, 2015

DNA DeoxyriboNucleic Acid

DIA The Department of Internal Affairs NEW ZEALAND

E-Government Electronic-Government

EMC Egan, Marino, and Curly Dell EMC Corporation

GaaP Government as a Platform Tim, 2009

GDS Government Digital Service U.K.

GovTech Government Technology Agency SINGAPORE

GSA The General Service Administration USA

ICT Information and Communication

Technologies

ID Identity Document

LOD Linked Open Data Tim, 2006

MR Mixed Reality

NGO Non-governmental

orgawzation

NIA National Information Society Agency SOUTH KOREA

Smart Nation And Digital Government SINGAPORE Office

Strategic National Projects SINGAPORE Strategic System International

Strengths, Weaknesses, Threats

United Nations Virtual Reality

World Economic Forum World Wide Web

Opportunities,

Eunjin Koo 20191 MIT SDM Acronym AGESIC SNDGO SNPs SSI SVN SWOT UN. VR WEF. WWW 12

Chapter 1: Introduction

The topic of this thesis is the successful digital transformation from the current E-Government to Intelligent E-E-Government. This chapter lays out the motivation, research approach, research questions, objectives and focus of studies, and scope, as well as specifying the structure of the rest of the thesis.

1.1. Motivation

The initial focus of this thesis is motivated by two simple but fundamental questions. As citizens of a nation in the modern age, are we provided with reasonable and satisfactory public services? And, are modern governments doing their best in studying the progress of society and the development of technology, and then offering the services that citizens desire?

So far, Information and Communication Technologies (ICT), the output of the third industrial revolution through the development of computer technology, and the Internet revolution have become essential tools for a government to fulfill its obligation to provide a

high quality of services to citizens.

The emergence of intelligent information technology triggered by the fourth industrial revolution has led to rapid changes in the economy, industry, and society. Now, citizens are demanding improvements in government services, corresponding to the intelligent information society. In contrast to the lively discussions on the industrial and economic ripple effects and utilization strategies of intelligent information technologies, the strategic debate on the impacts and transformations in the public domain, such as governance and government public services, is relatively insufficient (Lee, et al., 2017).

Thus, this thesis focuses on analyzing the direction of government service transformation by the spread of intelligence information technology, led by the fourth industrial revolution. This thesis identifies political and technical strategies for enabling the successful

transformation of government services. In addition, this thesis examines the up-to-date technologies applicable to government services and discusses the transformation strategies of leading countries through case studies.

1.2. Research Approach

This research is characterized by two phases, both of which can be seen in Figure 1-1. In the first, conceptual and analytical research through knowledge gathering and the analysis of the current state informs potential new solutions. The second phase proposes the practical implementation of the new solutions resulting from the first phase. In other words, it proposes political and technical methods for transformation and looks for realistic strategies through case studies of new technologies and leading countries.

'"ConceptuaI

& Ana.yticaI"

Knowledge Gathering Analysis of Current State

Transformation Strategy

Organiiition Technical

AR roach A

_ roach

"Practical

& Realizing"

Eunjin Koo 20191 MIT SDM

LLandsCape

ni of Intelligent ent Concept

Implemetatio

E-Governm

Case Study

Overview

...

1.3. Research Questions

This thesis aims to find a way to deal effectively with the transformation of government in a broad sense. Specifically, after analyzing the current system and examining the need for transformation, strategies are proposed for the successful transformation of the government.

This thesis seeks to address the following research questions:

1. What does digital transformation mean in the government context, and how important is it to governments?

2. What are the problems of the existing E-Government, and what are the requirements for transformation?

3. How can Intelligent E-Government be implemented successfully? What are potential implementation strategies?

1.3.1.Objectives and Focus of the Thesis

The objectives of this thesis are the following:

- Answer the research questions from a methodological point of view, so that the approach can be used as a reference for future studies in government systems.

- Analyze the government IT systems in three dimensions and derive a reasonable result using the methodological approach.

- Provide insights related to practical policy and technical methods for a successful transformation to Intelligent E-Government.

This thesis studies Digital Transformation of Government from a practical point of view. A literature review is conducted for objective analysis using various means for the existing system, and as a basis for a realistic implementation plan for the new system. Additionally, case studies provide insights into new technologies and review the latest trends from leading nations.

1.4. Scope

This thesis deals with the transformation of government, specifically a digital transformation. It is not a study of transformations that target particular countries, governments, or public organizations. Rather, it is discussed from a broad perspective on how to securely carry out Digital Transformation of Government following the flow of time and the development of technology. Therefore, the contents of this thesis are aimed at a methodology that is generally applicable to all countries, governments, or public organizations.

This thesis also presents selectable and feasible technical options and methods for the technical implementation of Intelligent E-Government. However, in discussing the implementation of the system, external structures, and issues such as cybersecurity, backup strategies, and system access permissions are excluded.

1.5. Thesis Structure

Chapter 1 lays out the goals, research approach, research questions, and scope. Chapter 2 provides a literature review of "Transformation of Government", "Digital Transformation", "E-Government" and "Intelligent E-Government" and includes a discussion of their definitions, meanings, and relationships. Chapter 3 surveys the existing E-Government system with different kinds of tools and methods such as "Stakeholder Analysis", "ARIES Framework", and "SWOT". Chapter 4 lays out how to implement Intelligent E-Government from a policy and organizational point of view, particularly from 5 perspectives of "Leadership", "Purpose and Priority", "Delivery", "Communication" and "Capability". Chapter 5 proposes approaches for how to technically implement Intelligent E-Government. Also, it discusses case studies with new emerging technologies and trends of leading

countries on Intelligent E-Government. Lastly, Chapter 6 recaps the research findings, discusses the conclusion of this thesis, and explains possible future work.

Eunjin Koo 20191 MITSDM 16

Chapter 2: Overview for Digital Transformation of Government

2.1. Transformation of Government

Transformation of Government literally means that government is transformed. So why does government consider transforming? And why does government desire to make transformations? John Adams (1735-1826), the second president of the United States, made the following remarks: "The happiness of society is the end of government." Ultimately, the government's greatest reason for existence is 1) to safeguard the people within the boundaries of the country, and 2) to provide the various services necessary to make people's lives happy. Because of these reasons, governments attempt to transform themselves to perform these roles effectively, that is, to deliver public services and public policies at a high level. (Daniel, et al., 2017) describes seven key elements that lead to government transformation:

9 Driver 1 "Insight": Insight derived from data, evidence, and analytics can influence decision-making, actions, and results. New technologies, such as cognitive computing, can help decision-makers identify meaningful and actionable information that can transform data into insight, leading to effective action.

0 Driver 2 "Agility": Government can accelerate change by adopting "agile" principles. Agility across public-sector operations provides a promising approach to

improve program management and achieve mission outcomes.

* Driver 3 "Effectiveness": The goal of making government more effective, both in

terms of its operations and results, leads to enterprise approaches to achieve better outcomes, operational efficiency, and a leaner government.

* Driver 4 "Risk": The external and internal risks pose threats to achieving a government's goals and objectives. Many governments carry out missions to stay ahead of these risks and mitigate their impacts.

" Driver 5 "People": It is important to emphasize the role that government workers play in the success of any government, to meet the mission and achieve outcomes. Cultivating people, reforming processes for hiring, and retaining workers are critical for governments to transform.

" Driver 6 "Engagement": The engagement of citizens forces governments to create new ways to operate. Citizens increasingly look for new opportunities to engage with governments on how to approach problems, develop policies and programs, and receive services.

" Driver 7 "Digital": Optimizing new digital technology and infrastructure models and incentivizing innovators to modernize government can drive major changes for how governments do business.

The Transformation of Government is driven by various factors. This thesis focuses on the transformation of government from the viewpoint of "Digital". The meaning of necessity for,

and the strategy of government transformation through "Digital" are discussed in detail in the following chapters.

The transformation of a government is distinctive from the transformation of the private sector, in terms of work environment, work manner, and work culture. These features are summarized in Table 2-1 below (Adapted from (Jorg, et al., 2017)). These features can help us to understand the characteristics of Digital Transformation of Government and to carry out the transformation appropriate to Government.

Eunjin Koo 20191 MIT SDM 18

Velocity _Slow

Fast

Budget _{Oversensitive}

Sensitive Period

Long-term Long-term and Short-term

Motivation _{Low High}

(lacks incentives to implement transforming (short feedback

loops

Culture _{Strict Flexible}

(rigorous rules and procedures, difficulty in (emphasis on efficiency and hiring and procuring goods and services) _{productivity, agility highlighted)} Access to

Public resources Easy and Free Restricted and Costly

Table 2-1: Comparison oftransformation of the public sector and the private sector (Adaptedfrom (Jorg, et aL, 2017))

2.2. Digital Transformation

Several examples of how major enterprises and research institutes define Digital Transformation are as follows:

" _{A change of the rules of competitiveness, as operating models, business models, and} even whole industries (WEF, 2017)

* _{A strategy for companies to integrate digital and physical elements for changing their} business model and set new directions for entire industries (Saul & Ragna, 2011)

* _{The coupling of granular, real-time data (e.g., smartphones, connected devices, smart} appliances, wearables, mobile commerce, video surveillance) with modern technologies (e.g., cloud native apps, big data architectures, hyper-converged technologies, artificial intelligence, blockchain) to enhance products, processes, and business decision-making with customer, product, and operational insights (Bill,

2017).

Eunjin Koo 20191 MITSDM

Public Sector Private Sector

Although these expressions of digital transformation are slightly different, there is a common implication. That is, Digital Transformation can change enterprises by utilizing the latest digital technology to survive and compete within the ever-changing environment of enterprises or organizations (Kim & Son, 2017).

So, how has Digital Transformation developed so far? According to (Saul & Ragna, 2011), Digital Transformation has undergone three stages of development as time passes and the degree of economic impact increases.

* Stage 1 "Digital Infrastructure Construction (1990s)": During this time, the Internet was introduced in earnest. The backbone for the Internet was begun. Digital products and services also emerged in some areas, such as music, entertainment, and electronics, although they were limited.

* Stage 2 "Digital Business Strategy (2000s)": During this time period, the Internet became popular and was actively used. In addition, infrastructure providers who had the authority and experience in building infrastructure established an information backbone. Many special functions (finance, supply chain, human resources) were developed to increase productivity and efficiency through the Internet.

" Stage 3 "Digital Transformation (2010s)": This time period was when the users' access to the Internet has become pervasive and more powerful, and their authority within the Internet is strengthened. The mobile revolution and the emergence of social media have helped to easily share information among users. Now, the users have become a key force driving digital transformations in almost every industry.

Figure 2-1 shows the focus and impact of the Internet and Global Connectivity over time. That is, the stages of Digital Transformation show that they are not simple upgrades of the previous stages. Each involves innovation and creation that are significantly different from the previous stages by the emergence and dissemination of new functions, industries, and technologies.

Evolution of digital transfornation

Pervasive

CX I Dij

aa

e

s C

Digital products and

r

CI

infrastructure

C

o

r>

(e.g.,

music,

4 1Z

entertainment)

_g

e

Infrastructure (e.g.

teLecornufications,

software, IT)

Limited

Late

1990s

-commerce (e.g. Atail, electronics) reating efficiency rough web trategy (e.g. ovemment)

2000s

Time

transformation of

* Mobile

revolution

* Social media

* "Hyper

digitization'

* Power

of

analytics

2010s

Figure 2-1. Evolution of Digital Transformation (Saul & Ragna, 2011)

Digital Transformation can be understood as a phenomenon or flow that appears naturally with the development of the Internet and digital technology. However, as we have seen in the developmental stages of Digital Transformation above, a human being is ultimately the most definitive factor of this transformation, spontaneously responding to the external factors surrounding him/her. After all, human beings decide how to look at and use the digital revolution. Individuals or human groups (enterprises or organizations) determine how to survive in a dynamic digital revolution and how to create value and produce a profit. Therefore, it is not enough to explain Digital Transformation simply by the improvement of technology and the emergence of new methods. Instead, it is an urgent and important issue for humanity.

2.3. E-Government

E-government means that the government utilizes the Internet and information and communication technologies to handle business efficiently, productively, and smartly, and as a result, provides good quality services that satisfy the public. (UN, 2014) interprets E-Government in a broader sense. That is, E-E-Government is the use and application of

information technologies in public administration to streamline and integrate workflows and processes, to effectively manage data and information, enhance public service delivery, and

expand communication channels for engagement and the empowerment of people.

At the end of the 20th century, when the term E-Government was first introduced, computers were commercialized and popularized and internet infrastructures were being built. The United States led the development and construction of computers and the Internet. Government-led efforts were made to introduce information and communication technologies to administrative tasks so that work efficiency, speed, and accuracy could be improved (Mok, 2008).

First, a paperwork elimination act was legislated at the end of the 1990s to reduce costs. The US government has conducted the National Performance Review since 1997, which is an effort to maximize the use of IT for efficiency and cost savings (Leon, et al., 2007). Since the 2000s, the US government has opened www.egov.gov to handle most federal government concerns through the Internet. In addition to the US government, the leading countries of information and communication technologies like Japan and U.K. have been aware of the value and importance of E-Government early on and have sought to implement an ideal E-Government that meets their needs.

E-Government operates by the interactions between objects within it (Jeong, 2007). There are four major interactions, each of which has a different operating mechanism.

Eunjin Koo 20191 MITSDM 22

" G2C "Government-to-Citizen": This is the most important relationship among E-Government interactions. E-Governments provide citizens with prompt, accurate, and convenient services, and citizens take an active part in providing feedback on services to the government and in giving opinions on policy decisions. The activities of these two parties are possible by the Internet and information and communication technologies.

* G2G "Government-to-Government": In a narrow sense, this includes communication among ministries within the government or communication among federal and local governments. This includes communication among the government and government agencies or public organizations. The introduction of the Internet and information and communication technologies enables smooth communication and easy information sharing among the government and the government agencies or public organizations.

* G2B "Government-to-Business": Interactions between the government and business, as implemented by E-Government, facilitates communication and understanding of government policies and regulations. This enhances the access to government for small and medium-sized enterprises as well as large enterprises who have bargaining power and information. This also creates new government-related ideas and businesses through the Internet and information and communication technologies.

* G2E "Government-to-Employee": This makes it possible for public servants, that is, government employees to be provided with online services such as checking and reviewing private information (annual leave, salary payment records). The exchange of opinions and information among public servants is much more convenient. In addition, the communication between the government and public servants becomes easier.

L

fIJ

KG2C

flG

o

s

Local

2E

Employee

Figure 2-2. Types of Interactions in E-Government (Jeong, 2007)

Active and lively interactions among the E-government objects bring the following positive consequences: 1) Strengthening citizen participation and authority in government activities; 2) Improving efficiency and productivity in government affairs, and reducing costs; 3) Enhancing transparency and accountability of governmental affairs; 4) Creating new businesses and added value by communication with the government; and 5) Bringing the work environment for public servants onto the Internet and developing the job performance and work ability of public servants.

2.4. Intelligent E-Government

Intelligent E-Government means the next-generation E-Government, using the latest intelligence information technologies such as IoT, cloud, Al, and Big Data. More specifically, it means a government that combines intelligent information technology and human creativity to innovate government administration and provide services that satisfy people. Additionally, it is able to support wise governmental operations that communicate with the public. It can also be defined as a government that locates and offers customized services to individual citizens, and opens and shares all government operating information

transparently and safely. Basically, Intelligent E-Government is quantitatively and qualitatively more advanced than the existing E-Government because it adopts advanced new technologies.

Based on the personal work experience in the public sector and the investigations of (NIA, Oct 2017) and (MOIS, 2017), the background of the emergence of Intelligent E-Government can be explained as follows:

Maturity of intelligent information technologies: The emergence of high-performance artificial intelligence and robots, such as Alpha and Watson, fast and accurate analysis technology of Big Data, communication of things around human beings, and innovative technologies such as cloud computing are now the reality, not just imagination. The maturation of intelligent information technologies enhances the rationality and scientific ability of administrative organizations, including governments. Intelligent information technologies enable customized services according to region, hierarchy, sex, and situation.

* Limitations of existing E-Government: The core of the existing E-Government is the Internet and computer usage. The use of the Internet and computers has improved time and cost savings, convenience, and productivity. However, there are problems such as 1) electronic services cannot cover all administrative tasks of the government, 2) security vulnerabilities can occur through the Internet, and 3) there can be discrimination against the digitally marginalized people.

* High expectation of Citizens: Citizens who are already satisfied with private sector services using intelligent information technologies hope that the services of the public sector will be upgraded to a level that is appropriate for an intelligent information society. The expectations of the public for the development and innovation of the governmental systems are an important driver for transforming the existing E-Government.

The difference between the existing E-government and Intelligent E-government is evident in the communications, work processes, policy decision methods, goals of service, content and quality of services, and delivery methods of service.

E-Government Intelligent E-Government

Communication Service Policy Field Objective Content Delivery

One-way or passive two-way Citizens/public servant requesting

-> Improvement

Government-driven

Simple tasks processing

Provision quantitative and efficient services

Fixed services

Online or mobile channel

Active two-way Al analysis -> Presenting of Alternatives -> Improvement

Citizen-driven

Complex problem solving

Joint production of qualitative and social services

Customized services by region, gender, situation

On-line or off-line multi-channel

Table 2-2: Comparison E-GovernmentandInlelligentE-Govemment (Adaptedfrom (NIA, Oct 2017))

Eunjin Koo 20191 MIT SDM 26

Chapter 3: Landscape, Stakeholder Analysis, and Current E-Government

The present chapter analyzes the current E-Government system using the ARIES Framework methodology. It provides a study of the ecosystem, internal landscape, and stakeholders around E-Government. It also discusses the structure and current status of E-Government through the eight lenses of the ARIES Framework and SWOT analysis. Finally, based on the various above-mentioned approaches, the necessity of the modification of the current E-Government is discussed. First, the chapter will briefly describe the ARIES Framework, used in this research, before exploring the current E-Government.

The ARIES Framework

The ARIES Framework was developed by Donna Rhodes and Deborah Nightingale. The ARIES framework is a very effective strategy for understanding an enterprise, generating options for the future, evaluating these options, and selecting future architecture. The ARIES Framework consists of the Enterprise Element Model, Architecting Process Model, and a set of techniques.

(1) The Enterprise Element Model

The enterprise element model consists of ten unique elements, as illustrated in Figure 3-1 and described below.

1) Ecosystem: The external regulatory, political, K- economic, market, and societal environment in which the enterprise operates and competes

O

/cooperates with other related enterprises.

2) Stakeholders: Individuals and groups who contribute to, benefit from, and/or are affected by the enterprise.

Figure 3-1: The Enterprise Element Model (Nightingale & Rhodes, 2015)

3) Strategy: The strategic vision, associated business model, goals, and performance management system.

4) Information: Information the enterprise requires to perform its mission and operate effectively.

5) Infrastructure: Enterprise systems, information and communication technology, and physical facilities that enable enterprise performance.

6) Products: Products the enterprise acquires from markets, develops, manufactures, or distributes to stakeholders.

7) Services: Offerings derived from enterprise knowledge, expertise, and competencies that deliver value to stakeholders, including support of products.

8) Process: Core, leadership, lifecycle, and enabling processes by which the enterprise creates value for its stakeholders.

9) Organization: Culture, organizational structure, and underlying social network of the enterprise.

10) Knowledge: Competencies, explicit and tacit knowledge, and intellectual property resident in and generated by the enterprise.

(2) The Architecting Process Model

The Architecting Process Model consists of seven processes (shown

[ Develop Understand

mPlan Landscape on the left, Figure 3-2). In particular,

d In Pthis thesis focuses on understanding

Future Stakeholder

rchitetdrI Analysis _{the enterprise landscape, performing}

Generate Ap stakeholder analysis, and capturing

AlternativeCrrn

Architectures _Architecture

the current architecture. The reason

Create Holistic

Vision of Future for this is that, Intelligent E-Government

Figure 3-2: The Architecting Process Model (Nightingale & Rhodes, 2015)

28 Eunjin Koo 20191 MITSDM

has already presented as a future architecture, so, there is no need to create a future architecture that would include creating and determining alternatives. However, how to implement Intelligent E-Government given its future architecture will be covered in detail in Chapters 4 and 5, Organizational Approach and Technical Approach.

(3) A set of selected techniques

The most commonly used techniques are as follows.

Sketching Ideation Pugh Analysis

SWOT Weighted-Decision Matrix Stakeholder Value Maps

X-Matrix Future Proofing Modeling

Table 3-1: A Set of Techniques in the ARIES Framework (Nightingale & Rhodes, 2015)

3.1. Landscape

In discussing any system, analyzing the landscape is a very important first step. Looking at the landscape is a comprehensive task that involves examining the external and internal environment and elements of the system.

3.1.1. Ecosystem (External Landscape)

The ecosystem that affects E-Government can be defined in the following seven categories, as shown in Table 3-2 (Adapted from (Rhodes, 5 Mar 2018)).

Ecosystem Factor

Politics

Regulation

Economy

Market

- Leadership will have a significant impact on E-Government. Depending on the will of the leadership, the system may evolve or degenerate.

- Politics is directly connected to the budget. The quality and level of the system are determined by how much political interest there is in the system.

- In addition, a regime change has an impact on the operation and change of the system.

- The regulation has a very significant influence on the national system. The structure and direction of the system can vary depending on how the regulations are

set.

- In general, national regulations and laws change very slowly through a highly complex process. Therefore, it is necessary to be patient when operating the system.

- In the public system, a breach of the regulations can cause very sensitive problems, so attention should be paid to changes in relevant regulations.

- The economic situation affects the national budget. Economics cannot be ignored in determining the size or scope of a national system.

- The national IT industry is considerably dependent on the private sector. This is because the public sector does not have enough experts, knowledge, and experience. Participation in the public sector by the private sector has produced many good results.

- Recently, private sector participation in the national IT industry has increased and a competitive market is forming accordingly.

Eunjin Koo 20191 MITSDM Description

Resource

Environment

- There are many resources, such as human, data, hardware, and software.

- Human: System development specialists, operational experts, etc.

- Data: Various data resources in the public domain

- Hardware: The physical resources of the IT system

- Software: The non-physical resources of the IT system

- Public interest and demand for national IT systems is increasing.

- The development of intelligent information technology according to the fourth industrial revolution is catalyzing the transformation of the national IT system.

- Many developed countries worldwide are emphasizing the importance of national IT systems and working to

develop them.

Table 3-2: Ecosystem Factors of E-Government (Adaptedftom (Rhodes, 5 Mar 2018)).

The seven elements currently surround the E-Government system and directly or indirectly affect the operation, direction, scope, and budget of the E-Government system. Interestingly, the seven elements influence not only the interaction with the system but also between the seven elements. For example, public interest and demand for national IT systems in the "environment" may eventually be a factor that affects "politics." "Technology" is also manifested by the "environment," such as the development of the industrial revolution and intelligent information technology, affecting the composition and change of "resources" and "regulations."

3.1.2. Internal Landscape

The internal landscape that affects the function and operation of E-Government is now analyzed.

* Core Values

Core values can be defined as the reasons for and necessity of the existence of E-Government. Therefore, the core values suggest the fundamental direction of the system. They can be regarded as a very important aspect of the internal landscape because the functions and operations of the system are realized according to the achievement of the core values. The core values of E-Government can be summarized as follows and following is an adapted from (Mok, 2008).

- Achieving faster and more efficient public works to reduce the cost and labor power required to perform the work.

- Due to the development of computers and information and communication technology, the quality of the service of the public has increased and the responsiveness of administration has been improved.

- Eliminating unnecessary formalism in the public sector, improving ineffective work behavior, and lowering the possibility of corruption.

* Capabilities

The eight significant capabilities for E-Government are now discussed. Table 3-3 highlights the capabilities that enable maintaining and communicating the core values of E-Government, as well as responding appropriately to external factors. In addition, the capabilities described below are very important and critical factors in the progress and implementation of "the transformation of E-Government," the key focus in this thesis (Adapted from (Rhodes, 5 Mar 2018)).

Eunjin Koo 20191 MITSDM 32

Capability Definition in E-Government context Priority Adaptability - _{How quickly can it adapt to internal and High}

external changes or unanticipated events (budget or personnel reduction, resource reduction, technology development, etc.)?

Flexibility - Is it possible to implement multiple functions High flexibly over time instead of concentrating on

one fixed function?

- Can E-Government services operate various channels to improve convenience for

stakeholders?

ScalabilitMe

- How much can it embrace new changes and Med attempts, and how much can it scale both

quantitatively and qualitatively?

Sustainability Med

- How long can it be maintained, with a unique identity and features rather than a one-time system?

Agility - Can it keep pace with changes in the High environment, development of technology, and

new attempts?

- How aggressively does it adapt to change?

Evolvability - In particular, from the viewpoint of High technological development, is it possible to

adopt a technological science that is advancing day by day?

XJVrreIjy h

s - How close is the service to the expectation and needs of the people, enterprises, governments, and government employees who use the E-Government system?

- How aggressively is it trying to address the complaints or requirements?

Robustness - How do vigorous interactions with the Med participants, such as users, operators, and

developers of E-Government, occur?

- Is there a willingness to improve or transform?

- Is it striving to maintain and develop value?

Table 3-3: Capabilities in E-Government Context (Adaptedfrom (Rhodes, 5 Mar 2018))

3.2. Stakeholder AnaLysis

Stakeholders have a close relationship with E-Government in a variety of purposes and ways. The analysis of the stakeholders is very important for understanding the current operating environment, function, and status of the E-Government system. In other words, research on stakeholders enables a better understanding of E-Government because it seeks to understand the ecosystem of E-Government and study the characteristics of the interacting entities within the ecosystem.

3.2.1. Stakeholder Understanding (identification)

There are seven main stakeholders discussed in this thesis. In reality, there are more stakeholders associated with government IT systems. For example, the government can be divided into the budget ministry, science ministry, administrative ministry, and labor ministry. Regulatory parties can also be divided into the National Assembly, the regulatory authorities, and the courts. However, in this thesis, to facilitate a more intuitive and better understanding, the relationships and activities of the stakeholders are shown by simplifying the similar objects by bundling them together. Major stakeholders related to E-Government are shown in Table 3-4 (Adapted from (Rhodes, 12 Mar 2018)).

34 Eunjin Koo 20191 MIT SDM

Stakeholder Description/Function Priority Government - One of the most important entities

- A subject to plan, operate, and develop E-Govemrnment

- The Finance, Science, Administration, and Labor Departments cooperate closely within the government.

Citizens - _{One of the most important entities}

Very

- A group using E-Government High

- Very strong influence on E-Government

Enterprises

-A group that can benefit from E-Government or Med gain more convenience

Regulatory Bodies - Regulate and control E-Government High

- A group that helps to legally supervise and make good use of E-Government

- Can be divided into several subgroups

Local Government - Using E-Government, communicates with the Med central government and helps local citizens to

access E-Government

IT Service Providers - _{A group that provides the technology and labor High}

force of E-Government

- Most are private-sector IT companies

- Maintaining a close relationship with government

NGOs - Supervising and monitoring the activities of the Med government, local government, and regulation

parties

- Monitoring the activities of enterprises related to E-Government as well as the public sector

Table 3-4: Stakeholder Analysis (Adaptedfrom (Rhodes, 12 Mar 2018))

Eunjin Koo 20191 MIT SDM 35

Very High

3.2.2.Stakeholder Value Network

-

-0

Figure 3-3: Stakeholder Value Network (SVN) of E-Government (Adapted from (Crawley, et al., 2016))

Figure 3-3 shows the value network of the seven stakeholders related to E-Government

that

refers to (Crawley, et al., 2016). In addition, the values are delivered according to seven

items

(policy, money, information, technology, knowledge, goods and services, and workforce).

Each stakeholder has an active flow. Specifically, the following features can be found. First,

in the case of relationships between the government and regulatory bodies, monitoring and

authorization occur frequently. Second, the interaction between the government

and service

recipients (citizens and businesses) involves the provision of IT services, the payment of

taxes,

and the delivery of feedback from the recipient of the service. Third, the most diverse

types of

interactions occur in the relationship between the government and IT service providers.

These

are related to technology, labor, revenue, and information. Finally, in NGOs

are located

between IT service providers and service recipients, and they collect the opinions of the

service recipients, deliver them to the service providers, and monitor the activity of

the service

providers.

3.3. Current E-Government

Exploring the existing systems is the most fundamental and important process in discussing the transformation of the system. The reason for this is that, based on a better understanding of the system, it is possible to determine whether the system requires transformation, and if so, what direction the transformation should take. The ARIES Framework and the SWOT Analysis technique are used for the analysis of the current E-Government.

3.3.1. Description Using the Eight Lenses of the ARIES Framework

Element Description in E-Government context

Strategy _{- Provision of good-quality service to citizens}

- Reduction of costs, personnel, and time spent on public services

Information

- Citizen Needs

- Citizen Complaints

- Regulation

- Global trend of government IT systems

Infrastructure _{- Technology}

- IT backbone (database, hardware, software, source codes)

- Resources

- Budget Products

- Advanced IT services of government

Services

- Civil affairs for citizens and enterprises

- Cooperation between governments

Process

Organization

Knowledge

- Securing budget

- Establishment of IT system improvement strategy

- Improvement, development, and transformation of IT systems

- Provision services through IT systems

- Public service culture, simultaneous presence of vertical and horizontal relationship

- Cooperation between various departments is important

- Strategic knowledge: Identifying citizens' needs and complaints

- Tactical knowledge: Efforts to secure budgets, interagency collaboration

- Operational Knowledge: Wise use of resources, knowledge of system operation and latest technology trends, utilizing the technology of the private sector Table 3-5: The Eight Lenses of the ARIES Framework in E-Govermnent Contet (Adaptedfrom (Rhodes, 26 Feb 2018)) Table 3-5 above shows the current government in the context of the E-Government system through eight lenses that refers to (Adapted from (Rhodes, 26 Feb 2018)). In the end, the reason for the existence of E-Government as an effective means can be explained in carrying out the government's most important duty to provide good services to citizens. In addition, the unique culture and collaboration methods of the public sector, which often differ from those of the private sector, are reflected in E-Government. Also, a knowledge-based approach is required to collect strategic knowledge to resolve citizens' needs and complaints. Tactical knowledge for budgeting and cooperation among departments for the operation and improvement of the system and a variety of operational knowledge for system operation should be provided.

3.3.2. SWOT Analysis

One of the most commonly used techniques for analyzing an enterprise or system is SWOT (Adapted from (Rhodes, 19 Mar 2018)). Following subsection discusses the strengths, weaknesses, opportunities, and threats of the current E-Government from the government's perspective.

STRENGTHS

* Efficiency, systematization,

and simplification of work

* Transparency of public

affairs, prevention of

corruption

" A better communication

between governments

OPPORTUNITIES

* Professional training and

continuous labor creation

* Cooperation Increase in

intergovernmental &

inter-national environment

* Growth of government

:A

IT systems

THREATS

* High dependency on

national budget and

economic situation

* Possibility of a security

vulnerability with Internet

* Unbalanced benefits

due to Internet access

Figure 3-4: SWOTAnalysis of E-Government

For the government enterprise, E-Government is a system with many advantages. In other words, E-Government improves the overall quality of public works and prevents corruption in public societies. It can also help to expand the employment market by nurturing experts in related fields from a long-term perspective. On the other hand, there are internal and external disadvantages and threats related to E-Government. Continuous costs for system development, management, and improvement may be burdensome. Moreover, people who cannot access the Internet or ICT do not obtain the benefits of E-Government.

3.3.3. Strategic Imperatives for Transformation from E-Government to Inteltigent E-Government

E-Government, which is universally used in the government, has been analyzed in detail as discussed in prior sections of the thesis. E-Government has provided various useful functions to governments, citizens, and enterprises and has contributed to improving the quality of public services. However, in the public sector, over the past 20 years, the operation of E-Government has revealed the disadvantages and limitations of the system. As a result, a desire for an improved government system to complement the shortcomings of E-Government has begun to emerge. Now, as well as learning about the limitations of E-Government, the superiority of Intelligent E-Government will be discussed in depth (Adapted from (NIA, Oct 2017)).

(1) Limits of E-Government

* Coverage Constraints: Currently, E-Government does not cover most government public services. E-Government is used as a center for simple business processes, such as issuing certificates, requesting complaints, and providing information. Complicated public affairs are still ineffective and time consuming because they are handled through face-to-face contact with government officials. Therefore, it is necessary to provide customized services for individuals, situations, and regions by moving away from existing fixed services.

* Security Vulnerabilities: Basically, all E-Government services are developed based on the Internet. However, in the early days, E-Government was not deeply concerned with the adverse effects that could arise from the system because it had great significance for the convenience of the public and the efficiency of public affairs. A typical side effect is the weakness of cybersecurity. Recently, cyberattacks and data leaks on public service homepages and portals have frequently occurred in many countries. Therefore, it is necessary to introduce a new E-Government mechanism that can effectively enhance security while maintaining the existing Internet-based service method.

Eunjin Koo 20191 MIT SDM 40

* Citizens' High Expectations: Modem society is already experiencing intelligent information technologies, such as Al, Big Data, Cloud, and the IoT. In other words, people are satisfied with the services of the private sector using various intelligent information technologies. Therefore, they also want to be provided with excellent public services at or above the private sector level. It is time to seriously consider the development and operation of an excellent government system that goes beyond the existing E-Government that meets the expectations and desires of the public.

(2) Advantages of Intelligent E-Government

0 Utilization of Intelligent Information Technology: State-of-the-art technologies (e.g., high-performance artificial intelligence and robots, fast and accurate Big Data analysis techniques, the communication of objects surrounding individual lives, and cloud environments that exceed time and space constraints) are increasingly found in our lives. Intelligent information technologies, such as Al, Big Data, Cloud, and the IoT, are maturing beyond the initial stage of their emergence. Intelligent E-Government is a new approach that can be presented when we eliminate the doubt or vagueness of these technologies and analyze how to utilize these intelligent information technologies appropriately for services in the public sector.

& Strengthening Security: There is a need for an alternative solution that can solve the security issues in existing E-Government, such as the leakage of personal information, spread of false information, and capture of national confidential information. In this thesis, Intelligent E-Government is proposed as an alternative. Intelligent information technologies, such as block chains, clouds that have a strong security mechanism, and ever-evolving cybersecurity programs, will be effective tools for dealing with these security issues.