AN EXEMPLAR APPROACH FOR GOVERNMENT PROCESS RE-ENGINEERING IN SRI LANKA MASTER OF BUSINESS ADMINISTRATION IN E-GOVERNANCE M.A. Pradeep Imal Gunawardana Department of Computer Science & Engineering University of Moratuwa December 2009 AN EXEMPLAR APPROACH FOR GOVERNMENT PROCESS RE-ENGINEERING IN SRI LANKA By M.A. Pradeep Imal Gunawardana The dissertation was submitted to the Department of Computer Science & Engineering, of the University of Moratuwa, in partial fulfilment of the requirement for the Degree of Master of Business Administration. Department of Computer Science & Engineering University of Moratuwa December 2009 i Declaration “I certify that this thesis does not incorporate without acknowledgement any material previously submitted for a degree or diploma in any university. To the best of my knowledge and belief it does not contain any material, previously published, written or orally communicated by another person or myself, except where due reference is made in the text. I also hereby give consent for my dissertation, if accepted, to be made available for photocopying and for interlibrary loans, and for the title and summary to be made available to outside organizations” …………………………… …………………….. Signature of the Candidate Date To the best of my knowledge, the above particulars are correct. ……………………………. Supervisor (Dr. Shahani Weerawarana) ii Abstract Sri Lanka is at a stage where it has begun implementing or is about to begin implementation of many large-scale e-government solutions under the e-Sri Lanka Re- Engineering Government program of the ICT Agency of Sri Lanka. Most of the e- government projects under the e-Sri Lanka program have been designed to first have a Business Process Re-engineering stage, before the commencement of the usual system study stage. Business Process Re-engineering (BPR) is a major, important, and time-consuming activity that includes identifying and then making changes to existing management processes, routines and workflows to enhance the efficiency and productivity of the institution and its management. Performing such a BPR activity before the design and implementation of an e-government solution is highly important since most government departments tend to have historically inefficient and highly ingrained management processes, routines and workflows which prevent the execution of government services in an efficient manner. Clearly, the success of a proposed e-government solution is critically dependent on the success of such a BPR endeavor, which would span across all the government entities involved in the e-government solution. This research work focuses on the many major e-government initiatives of the e-Sri Lanka Re-Engineering Government Program in order to study the impact of the different BPR approaches adopted in these initiatives on the final outcomes of the solutions. The research effort is targeted towards identifying the BPR approaches best- suited for a developing country such as Sri Lanka, which still has significant remnants of historical, colonial government processes. This study discusses an innovative exemplar model for government process re- engineering. This exemplar model can also be utilized to evaluate BPR approaches used in e-government initiatives. By leveraging this model, the author intends to clearly identify and categorize different BPR approaches, and then determine the BPR approaches that would be most appropriate in the re-engineering government contexts, of Sri Lanka and similar developing countries. iii Key words  Business Process Re-engineering  e-Government  Re-Engineering Government Program  BPR Approaches  Exemplar Approach iv Acknowledgement First of all I would like to sincerely thank my research supervisor Dr. Shahani Weerawarana, for encouraging me and giving me instructions to make a research study of this type, with success. Also I would like to thank Mrs. Vishaka Nanayakkara, Head of the Computer Science and Engineering Department of the University of Moratuwa for advising and directing me to do a research such as this, for completing my post graduate degree. Further I would like to thank other lecturers and instructors of the Computer Science and Engineering faculty, for instructing and guiding me to successfully complete the research study. I would like to present my respectful thanks for the support given to me to follow this research by the head of my department, Mr. K A Thilakaratne, Director General of Pensions. My sincere thanks are given to Mr. Jayampathi Rajapaksha, Mr. K Jayathilaka, and Mr. Nimal Perera for their help given in translating and proof reading in the process of making this research study. Further, I take this opportunity to thank government officers in the public sector for giving me information, for this research study. Finally, I would like to offer my sincere thanks to my wife Mrs. K.D. Yamuna Manjula Kumari Jayasinghe and my son Isala Senuja and my parents, for giving me strength and encouragement to make this research study a success. v Table of Contents Declaration …………………………………………………………... ……………………………………………………………… i Abstract ……………………………………………………………… …………………………………………………………………. ii Keywords ……………………………………………………………. ……………………………………………………………….. iii Acknowledgement …………………………………………………... …………………………………………………… ………………………………………………………. iv Table of Contents ……………………………………………………. ……………………………………………………….. v List of Tables ……………………………………………………….. …………………………………………………………… vi List of Figures ………………………………………………………. ………………………………………………………….. vii List of Abbreviations ………………………………………………... ……………………………………………………. viii Chapter 1 – Introduction 1 1.1 Background ………………………………………………………….. ……………………………………………………………... 1 1.2 Statement of Problem ………………………………………………... …………………………………………………... 3 1.3 Objective of the Study ……………………………………………….. …………………………………………………… 5 1.4 Importance of the Study ………………………..…………………… …………………………………………………. 7 1.5 Assumptions & Limitations …………………………………………. …………………………………………….. 8 1.6 Thesis Structure ……………………………………………………… …………………………………………………………. 9 Chapter 2 - Literature Review 10 2.1 Introduction …………………………………………………….…… ………………………………………………... 10 2.2 Principles of BPR …………………………………………………… 11 2.3 Necessity for Re-engineering ..………………..……………………... 13 2.4 Notable BPR Initiatives in Private Sector Organizations …………… 14 2.5 Notable BPR Initiatives in Government Sector and e-Governance …. 16 2.6 BPR Success and Failure ..………………………………………….. 19 2.7 BPR Approaches & Methodologies …………………………………. 21 Chapter 3 - Research Methodology 29 3.1 Introduction …………………………………………………….…… ………………………………………………. 29 3.2 Research Methodology ……………………………………………… 29 3.3 Step of Research Methodology ……………………………………… 31 Chapter 4 - Exemplar Approach 36 4.1 Introduction …………………………………………………….…… 36 4.2 Characteristics of the Exemplar Approach …………………………. 36 vi 4.3 Main Phases of the Exemplar Approach …………………………….. 38 Chapter 5 - Data Collection & Analysis 48 5.1 Introduction …………………………………………………….…… 48 5.2 Data Collection .………………….………………………………….. 48 5.3 Data Analysis …………………..……………………………………. 56 5.4 Comparative Analysis ………………………………………………. 62 Chapter 6 - Conclusion …………………………………………………………... 69 6.1 Summary of Research Findings …………………………………….. 70 6.2 Future Research Work ………………………………………………. 71 References ……………………………………………………... 73 Appendix 1 ………………..………………………………………… 77 Appendix 2 ………………..………………………………………… 80 vii List of Tables 5.1 - Success in following major functions, in terms of the Exemplar Approach, in each e-Government Project ………………………...…. 62 5.2 - Details of steps of major functions, in terms of the Exemplar Approach, in each e-Government Project .…………………………... 63 5.3 - Details of success factors …………………………………………….. 66 5.4 - Percentage of success factors ………………………………………… 66 5.5 - Overall BPR success in each e-Government Project ………………... 68 viii List of Figures 1.1 - Public sector re-engineering projects as at September 1, 2009 ……… 3 1.2 - The Vision, Objectives, and Strategies of the public sector re- engineering program …………………………………………………. 5 1.3 - Present stages of e-Government Projects, as at September 1, 2009 …. 6 3.1 - Research Methodology ……..…………………..…………….……… 30 3.2 - List of public sector re-engineering projects identified for the research study.……………….………………………..……….……. 33 4.1 - Exemplar Approach for BPR ………………………………………… 37 4.2 - Milestones between each of the main phases ………….…………….. 38 5.1 - List of Activities/Steps …………………………………………..…... 49 5.2 - Activity/Step and Question mapping list for the Questionnaire for Government Organizational Staff ..………………………………….. 52 5.3 - Activity/Step and Question mapping list for the Questionnaire for BPR Consultants & System Implementation team ..………………… 53 5.4 - Question and related Activity/Step mapping list for the Questionnaire for Government Organizational Staff ..………………………………. 54 5.5 - Question and related Activity/Step mapping list for the Questionnaire for BPR Consultants & System Implementation Team ……………… 55 5.6 - The Officers Subjected to Interviews ………………………………... 56 5.7 - Details of steps of major functions, in terms of the Exemplar Approach, in each e-Government Project …………………………... 63 5.8 - Adherence percentages in following major functions, in terms of the Exemplar Approach, in each e-Government Project ………………… 64 5.9 - Overall adherence in following major functions, in terms of the Exemplar Approach, in each e-Government Project ………………... 64 5.10 - Adherence in implementing major functions in the e-NIC project ...… 65 5.11 - Adherence in implementing major functions in the e-PopReg project . 65 5.12 - Adherence in implementing major functions in the e-Pensions project 66 5.13 - Details of success factors …………………………………………….. 67 5.14 - Percentage of success factors ………………………………………… 67 5.15 - Overall BPR success in each e-Government Project …….…………... 68 ix List of Abbreviations BPR - Business Process Re-engineering GAO - General Accounting Office EDI - Electronic Data Interchange ICT - Information and Communication Technology TOR - Terms of Reference IT - Information Technology ICTA - Information and Communication Technology Agency PC - Personal Computers RUP - Rational Unified Process SWOT - Strength, Weaknesses, Opportunities and Threats SE - Software Engineering