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E-government Benefits Study
Measuring the demand for, and the benefits of, e-government
Overview
The National Office for the Information Economy (NOIE) has undertaken a study into the demand for, and benefits derived from, e-government.
The purpose of the study was twofold:
- The development and application of a methodology to assess the success of the Commonwealth's government online program to date through an analysis of demand, benefits and return on investment; and
- The development of a methodology for measuring the success of future online initiatives (taking account of the above factors) allowing comparison.
Background
The past few years has seen significant growth in the number of government services available over the Internet. The potential for the Internet to significantly enhance the way that individuals and organisations conduct business with Government is now more evident than ever before. The challenge for Government is to continually embrace the opportunities that the online world provides and ensure that community needs and expectations are met, while at the same time ensuring program and cost effectiveness for Government.
The potential benefits of online service provision have long been recognised by the Federal Government. The Prime Minister's December 1997 policy statement Investing for Growth was in many ways the catalyst for future online initiatives, eventually paving the way for the Government Online Strategy.
The Government Online Strategy was released in April 2000. The aim of the strategy was to provide the strategic framework to assist agencies in meeting key online commitments. In particular to:
- Deliver all appropriate services online via the Internet by December 2001, complementing - not replacing - existing written, telephone, fax and counter services;
- Ensure core minimum standards in important areas such as privacy, security and accessibility were met; and
- Encourage government business operations to go online (as outlined in the Commonwealth Electronic Procurement Implementation Strategy).
To measure progress against these key commitments NOIE developed the Government Online Reporting Framework. Under the framework, four reporting rounds have been held revealing significant whole-of-government progress. There are now in excess of 1600 government services and information sources available online and all agencies report that they have met the important target of having all appropriate services online by December 2001. Departments and agencies have also progressed well in meeting minimum standards and guidelines, with the vast majority of agencies reporting that they meet key requirements. Government e-procurement operations are also well advanced.
While the Government Online Reporting Framework has provided valuable information about agency progress, it only tells part of the story - some quantitative measures of the provision of government services. However, it is equally important to measure levels of demand and to assess whether citizens obtain benefits from online service delivery. Likewise, it is important for Government to ensure that online services remain cost effective and provide a return on investment.
Most Government departments and agencies assess levels of demand and review client benefits from online service delivery as part of normal business practices. Likewise, agencies make assessments as to the cost effectiveness of online service delivery. While such practices assist agencies in assessing the success of agency specific projects, there is no consistent or defined approach for measuring demand and determining success. There is therefore a need for a cross government approach for measuring these various aspects of online service delivery.
Study Details
The next phase of Government Online - e-government, is commencing. No longer are government agencies merely focussing on getting services online, now the focus is to strategically address client and internal business needs through the application of new ICT tools. These include increased levels of integration within and between agencies and an increased focus on expectations, utility and efficiency of government services.
To assist this process, NOIE is facilitating the development and implementation of a methodology (in consultation with Federal departments and agencies) that efficiently and effectively identifies:
- Past and future levels of demand for online services (phase 1);
- Whether benefits from online service delivery have been and can be realised (phase 2); and
- The return on investment to Government through the implementation of online service delivery (both in the past and in the future) (Phase 3).
Phase 1: Demand for E-government
To a degree all departments and agencies assess demand for online services. This has informed the ongoing process of service development and review at the agency level. What is missing however, is a whole-of-government assessment of demand for e-government, in particular:
- An assessment of where peak levels of demand have occurred and are expected to emerge in the future;
- An understanding of how these levels of demand have impacted and will continue to impact throughout government; and
- How best to address these levels of demand.
Phase 1 of the study examined levels of demand for Government online services. It also examined past and existing levels of demand, and where levels of demand are likely to occur in the future.
The methodology and results of the study will be used by NOIE (and other Commonwealth agencies) as part of an ongoing process to identify past and future levels of demand.
Phase 2: Measuring the Benefits of Government Online Service Delivery
While government online services can potentially benefit all Australians to some degree (whether through direct access to services or through increased efficiencies to Government), a mechanism is required to assess the degree to which those benefits are derived. This is clearly an important area of focus, as there is little point in investing and developing online services if there is neither an expectation or need for that particular service, and the benefits to citizens are neither evident nor achievable. Quite clearly, a key driver for investment is client demand and the benefits for individuals, business and government need to be clearly understood and assessed. Equally online services should be aligned with existing and developing departmental or agency business processes and deliver benefits to government.
Phase 2 of the study developed and applied a mechanism for measuring benefits derived from online service provision (for individuals, business and government), taking account of associated risks. As with phase 1, this phase was divided into two parts, the first examined benefits realised to date, and the second examined how best to measure benefits in the future (to both citizens and government).
The framework took account of varying aspects, including demand, investment, ongoing cost factors as well as financial (to both citizen and government) and social benefits (for example increasing access for people in isolated locations).
The study results and methodology will be adapted and used by NOIE and other Commonwealth agencies to assess benefits (and where relevant make comparisons).
Phase 3: Determining the Return on Investment for Government
Online service delivery provides enormous opportunities to Government, individuals and business. For Government, online service delivery presents ways for more efficiently and effectively delivering services to citizens, while at the same time providing savings. This return on investment provides the impetus for increased levels of investment to harness the potential ongoing benefits to both citizens and Government.
It is therefore important that Government have a good understanding of the level of return on investment to date, as well as a method for determining an appropriate return on investment in the future.
The final phase of the study examined the return on investment from implementing online services. The aim was to determine a benchmark return on investment (or other suitable form of measurement) to be used as a guide to assist agencies in future service planning. Return on investment will encompass not only financial returns, but also impacts for individual agencies, government more broadly and users of government services.
A group of agencies advanced in delivering online services was selected to provide input to this phase of the study. This phase identified existing levels of return and developed a basis for measuring future levels of return.
Current Status of Study:
Complete
View or download the Report
Preliminary Findings from the Study were released by the Minister for Communications, Information Technology and the Arts on Monday 11 November . The Preliminary Findings indicate strong demand for e-government from citizens and business and significant benefits flowing from access to online services. Government agencies demonstrated significant improvements in efficiency and reduced costs. The findings provide strong support for the Better Services, Better Government strategy.
Final results were released by the Minister for Communications, Information Technology and the Arts on Monday 31st March.
View the E-government Benefits Study Report
NOIE sponsored development of a number of case studies as part of the 2002 E-government Benefits Study. The case studies sought to capture qualitative and quantitative information on specific programs undertaken by selected Federal government agencies to help understand the lessons learned from the previous phase of the Government Online Strategy.