Click to edit Master title styleeGov Strategies

Establishing a National Service Oriented eBusiness and eGovernment Infrastructure

OASIS Symposium 2007"eBusiness and Open Standards: Understanding the Facts, Fiction, and Future"

15-20 April 2007San Diego, California

Who is he?

Soren Stauning, 33 y

National IT and Telecom Agency of Denmark

MA/Political science – a generalist among tech specialists

E-gov in Denmark – the facts: Denmark is a small country: 5 M (like Tennessee) – DK:US ratio 1:65 - public country: 36% employed in the public sector - with small businesses: 400.000 companies, 250.000 SME’s - decentralized: 5 autonomous regions and 98 municipalities w/ own

local government and administration But the same challenges as (many) bigger countries:

No central “enterprise” architecture or coordination No consolidated IT-procurement Fragmented use of IT-standards, SOA and general

infrastructure A very complex public sector with very bureaucratic

processes. Impending crisis: Ageing population, fewer hands

Past digitization strategiesdo not scale!

Source: (DA) Digital kommunikation i den offentlige sektor 2007.

Rambøll Management for the National IT and Telecom Agency

Frequency

Processes

50% of the volume

All new strategies can compete with current course & speed on financial terms …

Current course & speed

One vendor EDI

”Hub & Spoke”

Open SOA

World class

Savings, $ M 2007 - 2010 1,037 1,465 1,209 1,522 1,469 1,469Investment, $ M 2007-2008 -142 -71 -54 -98 -72 -72Investment in % of savings 14% 5% 4% 6% 5% 5%

…so the ”soft values” tip the balance: Open SOA: Openness and independency

Open standards and free vendor choice Low transaction costs for the individual

- effect on use Best of two worlds

”Politically correct” Allows saving by centralization

Conducive to competition Small vendors can join in – and open source Shorter time span from development to operation of cross-public

services State of the art SOA

Opportunity for Danish IT companies to deploy SOA hands-on

Open SOA will become a foundation for innovation in the public sector

Reduced cost of public sector

Busi

nes

s re

quir

emen

tsSt

rate

gy

/Politi

cal

goal

s

Tec

hnolo

gy

(OIO

SI

infr

astr

uct

ure

)

National competitiveness

Quality of pub. service

Service Registry

One public interface(RASP)

E- invoicing

Reduced biz expenses to IT vendorsNet gain for

SMEsengaging in e- business

Reducedmarginal

cost

”Long tail” ofservices can be

harvested

More 3rd party based

publicservices

Flexiblepublic sector

Optimizedprocurement

Increasedreuse of

data

RASP toolkit

More agile and competitive

SMEs

Increaseddigitization

of SMEs

By 2007 all danishSMEs must haveaccess to OIOSI infrastructure

By 2010 all new services

must use OIOSI

95% of all companies

must use e-invoicing in

2012

By 2012 all communication

G2B/ B2G must beelectronic

Tar

get

s

New services are easier to

deploy

Data standardization

Increased digital transaction

volumeHigher frequencyof data harvest

with fewer errors

Enhanced IT vendor

competition

Increasedcoherency inpub sector

Boost demandfor standardized

data

Increasedsystem to

system integration

Digital Signature

(PKI)

Reduced manual

documenthandling

Economies of scale- better utilizationof infrastructure

Reduced admin.

burden on businesses

Value of IT standards and infrastructure

– simplified and explained in a nutshell

Microsoft PowerPoint-præsentation

18%12%

19% 22%

41%

100%97% 95%

99% 99% 100% 100%

0%

20%

40%

60%

80%

100%

Allcompanies

(10-19) (20-49) (50-99) (100+) Publicauthorities

Number of employees EDI Internet

Source: Informationssamfundet Danmark 2004, Danish statistics 2004

EDI is a substantial barrier

41%

15%

44%

10-19 20-49 50-99

Fordeling af transaktionsvolumen for virksomheder imellem 10-99 ansatte (samlet volumen 191,1 mill. forretningsmeddelser)

KPMG 2005

But why are the SME’s important?

(it’s about lowering the barriers for participation, not ignoring the SME’s)

Distribution of transaction volume for companies between 10 and 99 employees.

(Total volume is 191 million orders and invoices)

9.7.1 ”E-invoice via Internet”

”A national Internet based infrastructure will be established to make it possible for companies to exchange business documents (e.g. electronic invoices) in a simple, inexpensive and secure way.

The infrastructure must be built in open collaboration with private IT-suppliers and be ready for use in 2007.

Exchanging a business document should be as simple as sending an email.”

(Part of Prime minister led national globalization strategy)

The political agenda:

Our means

A National Service Oriented Infrastructure

Infrastructure strategy Technical

National authoritative service registry Single sign on components and security token services Standardization of web service profiles Development of OSS toolkits which supports the profiles Reference implementation

Organizational Public sector as an engine Take advantage of the current window of opportunity

Legal / Legislative Umbrella of multilateral agreements Alternative: Passing a law

Cost vs. benefit Start with business transactions that have a good balance between cost

and benefit

Adoption strategy – “Comply or explain” Parliamentary Resolution on Open Standards

(B103 June 2nd 2006)

“Parliament imposes on the government a duty to ensure that the public sector’s use of IT, including use of software, is based on open standards.”

A catalogue of open standards will be maintained as of January 1st 2008

e-procurement as locomotive Achievements so far

1.25 million e-invoices are exchanged every month All public sector institutions (> 30.000 entities) Since February 2005 440,000 companies affected Built on OASIS UBL

Gateways provides critical mass from day one Positive business case for first movers

A simple client

A simple client

Our profile: RASP – Reliable Asynchronous Secure Profile

SOAP 1.1 Support for

SMTP/POP3 WS-Addressing 1.0 UDDI 3.0

New subscription API

Primary / secondary XML 1.0 XML Schema 1.0

WSDL 1.1 Contract first

WS-Security 1.0 X.509 certificates

WS-ReliableMessaging WS-RX Submitted

specification UBL 0.7 and 2.0

Large OASIS

footprint

What are the unique conditions of the Danish case?– and what could anyone adopt?

Unique: size (land, population, public sector) IT: High (IT) literacy acceptance (and level) of registration, trust in public

sector absence of other worries

Good-for-all: Sense of urgency (DK case: Aging population,

impending labor shortage) first consensus, then legislation comply or explain open standards increase competition

Summary Get going Involve Set targets

And if everything fails…

Use brute force= legislation

Further readings

Basic brochure:A national web service based infrastructure http://www.oio.dk

/files/20060928_A_national_web_service_based_infrastructure.pdf

Papers:Lanng & Brun (2006):

Reducing barriers for e-business in SME’s through an open service oriented infrastructure:

http://www.oasis-open.org/archives/ubl/200608/doc00000.doc

Brun & Lanng (2006):

From 18 to 100 million UBL messages with a Service Oriented Infrastructure:

http://2006.xmlconference.org/proceedings/36/presentation.pdf

Bosak (2005): Denmark Leads the Way With Electronic Billing:

http://xml.coverpages.org/BosakDenmark2005.html

Legislation and statute on electronic invoicinghttp://www.oio.dk/XML/standardisering/eHandel/materialer/OIOXMLeInvoice

Service Oriented Infrastructure:http://www.oio.dk/arkitektur/soa/infrastruktur/english

Questions?

Søren Stauning - ssa@itst.dk - +45 2237 7585Finn Jordal - fhj@itst.dk - +45 3337 9205