The Impact of eGovernment on British Local Government



			General Impact Study *The Impact of eGovernment on British Local Government* Doug Forbes Centre-for-eGovernment.com Tel; 0131 449 3823 0208 886 2462, mob; 07971 555615, email; info@centre-for-egovernment.com www. Centre-for-eGovernment.com Contents 1. Introduction 2. Background 2.2 The Impact on the Citizen Page 2 2.3 The Impact on the Council Page 3 2.3.1 Democracy Page 3 2.3.2 Economic well being Page 4 2.3.3 Social well being Page 4 2.3.4 Environmental well being Page 5 2.3.5 Social and Political Effect Page 6 2.3.6 Financial and Budgetary Impac Page 7 2.3.7 Human Resources Page 7 2.3.8 Technological Impact Page 8 2.3.9 Joined up Services Page 9 2.3.10 PR Strategy Page 9 3. Issues 11 3.1 Should the Council Promote electronic citizen empowerment? Page 11 3.2 Is our organisation ready to meet the challenges? Page 11 3.3 How fast is the market changing? Page 11 3.4 Do we have an action plan? Page 12 3.5 Are we doing anything that needs urgent reappraisal and modification? Page 12 3.6 Who will be our internal champions - political and managerial? Page 12 3.7 How can we get up to date information? Page 12 3.8 Should we joint an eGovernment forum? Page 12 Appendix Likely Impact on Each Function and Service Management Summary The new industrial revolution is being driven by exploitation of the internet and e commerce. Local government is not an island and citizens will expect their local authority to react to the challenge. When companies increasingly deliver 7 day Ð24 hour services, the public sector is being encouraged to follow suit. This report considers a number of technological, social, economic and environmental changes which are currently being pioneered. If local government truly wishes to maintain its status as community leaders, then it should not deny the citizen the full range of opportunities arising from the spread of new technology. For anyone who thinks that this revolution will only be from those who have PCs, they have not realised the impact of interactive TV. As TV has a penetration of 99%, then the post digital TV revolution will have a substantial impact on consumer and citizen expectations. From the webcasting of Council Cabinet Meetings to public access terminals, monitoring the tenants in sheltered housing and“Ôjust in timeÕ” housing repairs, the technological impact cannot be denied. We are of the view that Councils should be appointing e Government Champions on both the political and officer structures in order to act as local leaders. Clearly, each Council should be conducting its own impact study and assessing its own budgetary requirements. This summary only provides a flavour of this report, which is will be published on the Centre for e Government's web pages (www.Centre-for-eGovernment.com) where we hope to attract both professional and commercial support, along with other relevant material. 1. Introduction Britain has always been a trading nation. The opportunities being created by e Commerce are currently being well promoted. This paper describes the potential impact of the new technologies on local government in the areas of e government. (The parallel to e Commerce) and gives an indication of what its wider effects will be. It outlines the types of technologies being developed and potential for their use within Councils to the benefit of citizens. In turn, it considers the effect of increased citizen empowerment on each council and the type of services which may be provided. This general impact study is qualitative. We strongly recommend a quantitative local study to supplement this one. We hope that it will have an appropriate impact on the reader and assist you in meeting the challenges resulting from electronic citizen empowerment. Acknowledgement CeG would like to express its thanks on behalf of the local government community to Microsoft UK for initiating the paper and encouraging thought leadership in this area. 2. Background As supporting material for the series of seminars being run by Microsoft for local government, it has been decided to produce an outline impact analysis for Councils. This has to be taken as a generic paper which will require to be made specific for each individual council. Clearly, the impact on a County will be different in detail from a District which deals with housing and revenue raising functions. We will consider the likely changes in technology and systems first, then move towards the effect on citizens and each council. The Technological Vision At the recent SOLACE Conference, a US Delegate asked why the UK was embracing the new technologies such as the internet so enthusiastically. The Cabinet Office speaker replied that Britain was at the forefront of the first industrial revolution and intended to be the leader in the next one. Whilst the US is faster into new technologies, it is often the “other ”countries which use second generation technology to leapfrog the first generation. What is this new technology? Put simply, it is interactive TV which is connected by a phone cable to the internet. This will later be termed a web TV. The TV companies are making great play on Digital TV. It is important to understand that it is only a method of signal transmission. Currently TV's use analogue systems which are wave based. Digital signals are high speed data streams of bits. The analogy of moving from analogue to digital is when we changed from LPs to CDs in audio equipment. With interactive or web TV, when tied to computer technology, these signals can be further processed into split screens, visual effects and for storage. As the TV has far higher penetration and devices are being marketed which will allow cheap connection, it is interactive TV which will provide the new levels of empowerment. The access to widespread communications will lead to many new challenges and opportunities for society, councils and business. This paper describes the impact of a few of these. For instance, how many Councils will broadcast their new cabinet meetings over the internet? Lewisham does. As the commercial sector develops new ways of operating their business and moves towards an open all hours culture, how will Councils respond? Indeed, how will 7 day, 24 hour opening be provided at a reasonable cost if not through this medium? We will consider more specific applications later. 2.2 The Impact on the Citizen As cheaper connection devices become available, the citizen will learn to bank, work and play on the net. What this will mean is raising citizen expectations in terms of being able to transact electronically, 7 days per week, 24 hours a day. It also means that smartcarding will become more popular as a method of payment. This means that products will be able to be ordered and billed by telephone companies using direct debit. However, this will initially only affect higher earners. A number of Councils such as West Lothian, Aberdeen and Bracknell have plans to introduce smartcards for their populations. Currently the Banks are highly interested but their business case relies upon having local branch networks. I suspect the traditional banks will be urgently reviewing their business cases as a result of the new internet bank, Egg's success. The new Dreamcast TV Consoles are the first specific devices to be targeted at games and internet connection. Priced around £190, they have sold well last Christmas. The next innovation will have to be reduced or fixed connection charges for telephone use to Internet Service Providers. ISPs are reported to be negotiating this with telephone providers and the e-Government minister, Tessa Howell, is reported to be meeting the Telephone Regulator to discuss the issue. Clearly many Councils have difficulty in delivering a normal telephone service after 5pm, this we know frustrates many users. Call centres are being hailed as the way forward but are in danger of being made obsolescent over the next few years. The impact of the media promoting this revolution should not be discounted. Just look at how News International is promoting Digital Sky with its “Open” interactive system. We expect this current closed system to be made more accessible within the next year. ONDigital are currently designing services which will be available for Housing Tenants. With the auctioning of the new mobile telephony licences by the government next year, which will allow direct internet access to mobiles and Digital Personal Assistants, a whole new market will be opened up. Car manufacturers are planning small video screens in the headrests. These will be linked initially to DVD but made available to live transmission. Imagine keeping the kids quiet on a long journey in the future. The current problem of transmission speeds of some 56Kbps will soon be elevated by the use of ADSL and I LINK technology. This will enable the transmission of more complex information and offer almost instant access. Clearly the technology or its effects will touch every member of society. 2.3 The Impact on the Council What will electronic citizen empowerment mean to a Council? 2.3.1 Democracy Clearly, extensive use of interactive TV will be a challenge for democracy. In all areas, from voting through to accessing meetings, minutes or video records, the technology allows access from all sectors of society. This is likely to throw up a complete set of new challenges ranging from prevention of electoral fraud through to action from small and unrepresentative pressure groups. On the positive side, local democracy could be enhanced by making meetings accessible to the public electronically. With good press coverage, the schools can be encouraged to see its civic leaders at work. Electronic voting and opinion research could be undertaken as part of that exercise as the technology develops, however, its current penetration is too low to result in representative samples. Considerable research will be required into the effects of the technology in this area. 2.3.2 Economic well being As Community Leaders, Councils have an important part to play in setting an example for the community, other public bodies, Registered Social Landlords, the voluntary organisations and its businesses. Increasingly, citizens expect service companies to offer extended access through call centres and web sites, so Councils will be faced with meeting the same challenges. This will cause a rethink of traditional service provision. Will this revolutionise the provision of outreach services? It may be cheaper for the Council to provide families with the equipment and deal by video link rather than by a direct visit. Employers bodies may have to redraw conditions of service for groups such as Teachers who are already delivering distance learning over the web. The relationship with Parish and Town Councils, Regional Government, the NHS and the Civil Service will be able to be redefined as electronic integration brings them closer. The one stop shop concept is in the process of being reinvented for public services. The real challenge, however is how to get these disparate groups to work together. If this is termed as a new industrial revolution, then should Councils be acting proactively through increased education and support and installation of public facilities? What infrastructure will be required as a result of a new type of industry, based on service support and distribution? Will your economic development policies give the required degree of support to local and national entrepreneurs? How could your area benefit from this surge in technology? Can you make your local chamber of commerce aware of some of this impact? Do you want to develop a partnership with them to educate and involve the business sector? 2.3.3 Social well being Apart from following a 7-24 policy where access is every day at all hours, how will emergency social services or environmental health's noise units integrate with this technology? The 999 service is already straining in some areas due to the level of false calls. Will the technology be used to reduce waiting lists in hospitals or improve diagnosis and treatment? The short answer is yes, but systems will require to speak to each other. In the field of social research, considerable information is held about need groups, although often using different base information. It is the ability for the next generation of software to be able to interrogate disparate data and make sense of the analysis. By using an open version of HTML, the web language, called XML, data will be able to be marshalled from a wide range of applications. Firewalls will still exist but public data will in theory be accessible technically. This is the last major stumbling block to open information. The legal frameworks will be governed by the Data Protection Act and the forthcoming Freedom of Information legislation. The Cabinet Office perceives that the current and planned legislation will not be a barrier to progress. CeG can see applications in the field of social housing which will more closely match supply to demand and have the potential to impact on the homeless. There are numerous applications being designed in the fields of transportation and vehicles which will improve safety and have an improvement on the environment. Clearly, small video cameras enabling video conferencing or telephony will be enabled through I LINK, a new high speed transmission system. This will have application in social and care fields. In the area of Policing and Justice administration, it is our view that substantial gains can be made with direct and measurable results. CCTV is seen to reduce crime in the areas it covers. The argument that it only moved the crime to uncovered areas is strong. The barrier to extending these systems has always been cost. However, we can see the extension of these systems by using newer technology reducing crime further. In areas from criminal intelligence, prevention, through to processing charge sheets, recording the evidence, preparing the case and administering the courts systems, including the fines and records, there are substantial gains to be made. However, some legal practices may inhibit these, as will those who wish to protect the status quo. 2.3.4 Environmental Well Being Looking down the local high street some 30 years ago and comparing it to now, the major changes have been in traffic management and the type of shops and businesses in operation. Mostly, the pubs, hairdressers and betting shops are still there. All else has changed including the corner store. It is difficult to see such social institutions changing unless further tightening of drink driving legislation and gambling occurs. Although gaming is an internet target, and smartcards are likely to meet the challenges of the Gambling Acts, there will be some interesting legal challenges on the enforceability of the debt. This may change the format of the local bookie but I would give back them to survive. For retailers, the potential for home delivery operations is enormous. Some companies cannot afford their own distribution service so groups like Hay's will expand. Councils who are near good road access points will no doubt attract these depots. Supermarkets are already building purpose built depots in London and heavily promoting home and office delivery. There is an argument that home delivery will reduce pollution and congestion. The working environment will no doubt change and the virtual office will go on line. This may lead to less travel and road congestion with changes in demand for office space. However, large companies will always require large assembly, manufacturing, service or processing operations. Currently, much computer programming work is undertaken in India. Councils should not ignore the ability of companies to switch operations to cheaper cost bases. Indeed, pressure brought about by Best Value may influence Councils to replicate the same ideas. The move to a more distribution centred economy will have a direct effect on packaging and its disposal. With landfill taxes rising, this may accelerate the move towards recycling and conservation. 2.3.5 Social and Political Effect We cannot hope to cover the full political or social impact of the new industrial revolution. However, a few key issues are debated. Will more choice lead to more engagement with the community? Whilst Councils can be perceived as being slow, risk averse and bureaucratic - adoption of e governance as part of the community leadership agenda may provide an opportunity to change some outdated attitudes. Should Councils have their own portal or entry for the community into the internet? Should they become an Internet Service Provider (ISP) for the community. Do they have the powers to do so? Well Knowsley has -and Liverpool will no doubt be following the same route. The trend towards polarisation of communities is already evident throughout the country. Applied to the IT field, it is evident through those who have access to web enabled computing and those who do not. However, like the 1980's, it is the schoolchildren who will soon have greatest access through the National Grid For Learning funding where schools are being connected. There is also a proposal for a National Library Scheme and individual Councils such as Daventry have received approval for PFI support for Public Access Terminals in Parish Councils. We are of the view that rather than drip feed the resources, these should be developed as PFI schemes in order to gain maximum access to children now. Clearly longer term funding will be required for refreshes and upgrades. The social cost of not doing this will be enormous as the global economy develops. We recommend that Councils should urgently develop an e-Government Strategy. 2.3.6 Financial and Budgetary Impact What will be the effect on the tax base? Unless you have a range of industries which will be killed off by e commerce, and the population moves away, then the current grant regime is risk averse so the business rate income will be stable. The SSA may have to take account of these new variations and pressures - but each authority is not isolated and the government is producing and funding specific initiatives. What will happen to our cost base? There will be additional costs, but also efficiency and volume gains are likely to result through the introduction of new technology. However, it is difficult to quantify these with referring to specific programmes and your own action plan. 2.3.7 Human Resources Policy and Management Both internally and externally, there will be requirements for scarce skills. This will lead to new training needs and development. It is our view that it is essential to promote member and officer e Government Champions. This should not be seen as an excuse for turf wars but developed independently in consultation with the community leadership, Best Value and Information Technology functions. Staffing The trades unions require to be consulted about this issue. They will be fearful for their memberÕs jobs but should be able to see how this will enhance and develop their skills and marketability. Like any move towards enhanced skills, then it is anticipated that the job evaluation systems in place will reflect the competences required. Skills Needless to say, the importance of housekeeping skills is paramount. The attachment of the wrong document to emails can be an unwanted diversion. 2.3.8 Technological Impact As this paper is being produced for policy makers, it is not our intention to get overly technical. However, it worth considering the movement towards application hosting, where applications will be hosted on remote servers and accessed over the internet. In the new year, local government software suppliers will start to market these services. One such supplier is Radius who is already offering its systems in this manner. Another is IMASYS. Charging on a per use or transaction basis, we foresee that this will eliminate certain capital investment requirements for new systems. Software advances are likely to make the data conversion issues less intractable and allow a freer market for service supply to develop. Just as you can choose your own domestic utility providers, we expect you to be able to make the same choices in the field of IT. The key will be the systems integration and networks in your control within the Council. The potential for application hosting will again change the structure of IT provision in Councils. When asked by the editor of Public Finance, what will this will mean for Councils, the response was “that they will not be hosting the bulk of their own applications software in the future”. This represents a real challenge for systems integrators and providers, particularly as much of the data is personal and confidential. The challenge for the IT industry is to convince their customers of the benefits, the confidentiality, ownership and integrity of the data. The customisation of Document Image Processing and Workflow software will be necessary on each site. This will make efficiency gains compared to the passive database software which is currently common. Some current software packages however will not support the newer applications. This will mean upgrade, replacement or external hosting. Telephony As already discussed, wider application of fixed price access, mobile telephony and high transmission rates will make the systems far more responsive. Web site/Portals We have made the assumption that Councils have a web site. The issue is whether each Council develops a portal or gateway into the internet as others are doing. The challenge for a Council will be to use such a site to create added value. The concept of CitizenNet.com, where a one stop shop by area for local services could be further developed with the correct national support. Contracting We know of a District Council which is preparing to tender for another IT provider. It is essential that the successful provider has the vision, understanding, capability and expertise to provide services in this manner. In short, we consider that original content of an IT services contract which is only 20% after 5 years may be further reduced to around 10%. This means that contracts should be designed to provide best value and give fair provision to change control procedures and payments. The further extension of price and service benchmarking to IT contracts will provide the foundation for value testing within the industry. Monitoring CeG is currently developing an IT monitoring service which we foresee as an industry standard in Councils. By making this mandatory and linking this service to the pricing document, Councils will be able to bring factual data to the table and be able to ascertain the cause of system failures, particularly between complex pieces of software. This will be linked to the SLA or contract and enable more responsive pricing mechanisms to be developed. 2.3.9 Joined up Services The government's goal is to encourage seamless non silo based service delivery. Studies undertaken in some parts of the public sector indicate that the bulk of enquiries are too technical or involve too much risk to be handled by a call centre. This is due to the interpretative skills required and the wide range of enquiries. However, these enquiries are more easily able to be handled in electronic format. We foresee the bulk of information services being handled on an automated basis. 2.3.10 PR Strategy For local government, the local press, radio and cable TV companies are an essential part of your media strategy on e government. There is a role to ensure that the local media know your strategy and can communicate that to the citizens. Whether you want to use the overall theme of Modernising the Council or focus specifically on e Government is up to each Council. However, we consider it as a means to re-invigorate local democracy. In deciding how far you should extend your influence, there is a question surrounding the email addresses of individuals. For instance, should the voters role hold a list ofÊ email addresses within the Borough? What rights should individuals have for non inclusion? Will you or should you be able to trade this information? Will you email your citizens proactively after they log on to your site? How will the information be kept up to date. What about businesses? Should they be treated differently? How many will be hyperlinked to your site? Access to your site People have got to want to access your page and know where to find it. It has to have a purpose and lead them straight to the area they want, be it school information, community courses, theatre bookings, a housing repair, a planning application, building control, road opening, school meals, homecare, benefits or other application. It should also send an electronic receipt to limit the potential for fraud or humour. For the members, local surgeries, could be held online, committee, cabinet minutes and agendas and ward information could all be searched. 3. Issues 3.1 Should the Council Promote electronic citizen empowerment? Would the Council ever consider not having a telephone line? Being in touch with the people is necessary in any modern democracy. The issue is not whether Councils promote it or not, it is when they embrace it and how it will be done. The PM has already set targets for electronic transactions in government which are 25% by 2002, 50% by 2005 and 100% by 2008. Some government departments are advancing their targets. Local government will have to decide on its course of action. In short, we expect political, managerial and citizen expectations to drive the process. Handled correctly, this has the potential to deliver democratic renewal. The downside will be that people have more choice and choose to ignore the local council. In short, the Council will have to compete for citizens' time and attention. If so, what should a Council be doing? Firstly, allocate responsibilities and set a budget itself, then produce an action plan and get agreement. AnÊ action plan checklist will be outlined in the appendix. 3.2 Is our organisation ready to meet the challenges? A local impact study will no doubt take account of issues which relate to your authority. We would expect this to be facilitated in order to produce a multidisciplinary approach to this issue. This would hinge around a SWOT analysis and identify what you need to do to embrace the technology. A straw poll of Chief Executives indicated that they saw e Government as a stand alone issue separate from Best Value. 3.3 How fast is the market changing? The technology and software is changing incredibly fast but the trend towards citizen empowerment and increased expectation levels is being fuelled by the media. Will councils meet the challenge? 3.4 Do we have an action plan? See Appendix. 3.5 Are we doing anything that needs urgent reappraisal and modification? Only you can assess your investment plans, whether they be related to education, social services, finance, transportation and technology. However, we are hearing the question of a need for IT Strategy II being debated. Some councils are already questioning the need for call centres. Perhaps the concept of service centres requires to be expanded to embrace citizen focused electronic communication as well. No matter what action is taken, any call centre or service centre will require to be integrated into the rest of the Councils systems. This will require a review of all internal systems and procedures, using the opportunity to conduct a business process re- engineering (BPR) exercise. Whether this is done as part of this work or a best value review, we are seeing increased demand for this service across Council functions. We recommend an urgent review of your strategy and investment plans to ensure that the Council is able to cope with the new paradigm. 3.6 Who will be our internal champions - political and managerial? It is unlikely that a new committee on e-Government will be established. However, we certainly expect to see a political and officer champion. Probably an e Government Cabinet member and an officer given a policy, budget and coordination role. 3.7 How can we get up to date information? The Centre for e-Government ( www.Centre-for-eGovernment.com) will host events and debate on this issue and will be establishing a web site for the furtherance of this objective. All interested groups will be invited to provide links to this site. This paper can be downloaded from the above site. An electronic communities site has already been created on MSN's communities section on www.communities.msn.co.uk/egovernment. This is open for dialogue and debate now. The LGA and IDeA is taking an active part in each debate and each web site should be consulted. (www.LGA.gov.uk and www.IDEA.gov.uk). Other sites of interest are CITU.gov.uk where the Cabinet Office centres on technology, iagchampions.gov.uk. 3.8 Should we join an e Government forum? We hope you do and email us on info@centre-for-egovernment.com or register on www.Centre-for-eGovernment.com . Likely Impact on Each Local Government Function and Service This list is only indicative and is not exhaustive. Clearly, there are many applications. Education National Grid for Learning Bursaries Property Database Teaching Aids Resource Centres Examinations Central support Special Needs Schools Comparative data Prospectus Applications Curriculum Distance learning Teaching Aids Testing Budgets Benchmarks Diversity Social Services Homecare Home shopping Sheltered Housing/ day care and supervision Outreach At Risk Registers Care packages and Commissioning Casework and records OT advice Training centres Disabled facilities Roads PUSWA Public notices Repairs and maintenance Lighting and Night Inspection Road opening applications Traffic management Planning and design Transport Vehicle activity and utilisation Coordination and delivery Routing DSO Activities Housing repairs Floods Crash damage Finance Revenues and Benefits Systems Debtors Legal Casework Prosecutions Fine recovery Committee Services Agendas, Minutes and public information Statutory notices Housing Applications Repairs Exchanges Waiting Lists Benchmarks Rental Housing Benefit Homeless Developments Environmental Health Notification of Inspections Planning Applications Land Charges Personnel Records Training Vacancies Appendix Action Plan Checklist Items Is a e government a local priority? Have we an e government member and officer champion and to whom do they report? Have we undertaken a local impact study? Do we subscribe to any e government forum? Do we have to review existing plans? Have we identified our programme and budget? Have we consulted the Chamber of Commerce? Have we developed a local Action Plan? Where can we obtain Finance? Do we need IT Strategy II?