The CIO for telematics integration reports to a service department of the General Secretariat. His tasks include implementing Nove-IT in the SMF. The service department is financed via the Ministry’s budget. Funds are available for personnel and purchases as well as contracts with third parties, which are stipulated in the budgeting process in terms of size and purpose. In the next few years, the department’s total ICT budget is to be cut by approximately 10%. One of the key tasks of the CIO for telematics integration is to contribute to increasing performance with organisational measures in spite of the reduced budget (cf. Fig. 1).


Fig. 1: SMF organigram (simplified)

The role of those requiring IT services is referred to as service procurer at the SMF. The service providers are analogous to this internal and external units which furnish IT services.

Around 85 employees work internally in the central IT units and around 10 in the decentralised IT units. An integration manager is allocated to each administration (first hierarchy level under the state secretary). He/she ensures that the service procurers in his/her administration can process IT projects in line with strategy. To do this, he/she has IT project experience and is aware of the plans of other service procurers at all times through formally established information channels. In addition, full and part time employees in all foreign representative offices are entrusted with looking after IT solutions. At present, around 150 foreign representative offices are linked to the network of the Federal Adminstration. The internal service provider is the Telematics Department of the SMF. It develops new applications and sustains operations. The Federal Office for IT and Telecommunications (FIT) is the service provider for inter-departmental IT services. All services concerning the establishment and operation of networks and access to e-mail are furnished by the FIT for security reasons. The SMF can purchase other IT services from the FIT, should it appear opportune, but it is not obliged to do this.

Each IT project which is commissioned by a service procurer is dealt with by the respective integration manager. He/she helps the service procurer to formulate the order appropriately and to find out which resources already exist in other departments. Each order is sent out as an call for tenders in consultation with the internal service provider or is dealt with by the Telematics Department of the SFA itself. The tendering process is dealt with according to the rules of the Law on Government Procurement (VoeB).

Owing to the obligation of the SMF Telematics Department to consult the internal service provider, its market power is considerable. The service procurers cannot as yet decide freely which IT services they want to purchase and from whom. At present, five integration managers are employed. This small number of contact persons increases the organisational capability of the service procurer.


Fig. 2: Competitive forces of the Telematics Integration Department.

The Telematics Integration Department works closely with the Information Service Department in the internet field. There is a rule about the distribution of labour between the Information Service and the Telematics Integration departments, which was recently formalised and applies especially to the introduction of internet applications. Together, these two departments of the General Secretariat ensure appropriate rules of communication via the internet.

Fig. 2 shows this situation based on the forces model of Porter. The key feature is Telematics Integration Department. Although this model is intened to show market forces, it is used here as an analogy of the internal market.

The SMF has created a good basis for making an early entry into web technologies, although it has been ascertained in the meantime that other departments that started to use the internet at a later stage have achieved a higher degree of harmonisation as regards ICT infrastructure and can therefore implement more effective projects.

As far as internet technology is concerned, opinions are divided. At political level the opinion prevails that the internet cannot be crucial to business, and is instead a nice additional tool. This also reflects the practice of information distribution. The internet is only served after the channels of radio, TV and news agencies.

At departmental level, the internet is used for presenting their own publications and opinions. Awareness of economic benefits is still low in this casem, too.

On the other hand, the foreign representative offices (embassies, consulates, etc.) have a great need make business process more efficient. The internet is perceived in these circles as a great opportunity, although there are legal impediments. In business transactions with embassies signatures are very frequently required. At present, the technical and legal infrastructure is lacking to replace the physical signature.

The service providers are most convinced that the internet, and especially the intranet will bring great benefits. At the moment, it is unclear whether the existing service providers should also procure and develop personnel so that they can offer web services themselves. The Telematics Department of the SMF currently does this in individual projects.

The Telematics Integration Department is anticipating strong growth in the field of internet applications, despite cuts in the ICT budget. The number of projects is constantly increasing and this has implications for the budget, although an important objective of the Telematics Integration Department is to implement internet projects more efficently through the harmonisation of infrastructure and through automation.

The current use of the internet [internet use] is concentrated on the dissemination of information in all departments. Interaction possibilities and transactions are currently being achieved in isolated cases. In general, this concentration is reflected in the business dealings of the SMF. The administration benefits from the internet in that extremely up-to-date information can be made available round the clock, regardless of location.

A large number of websites are in operation with information and newsletters which are available to the public (internet applications). Especially the download of forms creates a large benefit. Changes of address and registrations via the internet are only possible at a few embassies. The range of information services is currently expanding enormously, so that the CIO is looking into quality assurance. For example, the information architectures of individual websites are still heavily geared to the administration structure. There is a lack of standard models for imaging the life cycle of information. This means that the volume of data is constantly increasing and it is becoming increasingly difficult for customers to find what they are looking for. The vision here is a modest one, i.e. the public should be offered well structured, highly up-to-date and important information via the internet in the next five years.

Partners (other units of the Federal Administration, non-governmental organisations, overseas offices, cantons, local authorities, etc.) have already been informed about the commercialisation of the internet with electronic tools. The change of paradigm from courier services to E-Business took place years ago. Now, only a change of platform is pending. The vision in this case is that more standardised ICT structures are to ensure an increase in the recyclability of contents.

Supporting employees with their day-to-day work by means of the internet is currently creating the greatest benefit. The SMF operates worldwide and therefore has a large need for the efficient supply of information between organisation units. The paradigm change also took place years ago in this case, although intranet applications are considerably increasing efficiency, as decentrality can be dealt with more easily with internet technology. Contents can be compiled on a decentralised basis, for example, and made available centrally. This only has a minimal effect on the distribution of labour. The vision in this case is geared more to organisation than technology. The employees of the SMF are supposed to use the internet to practise different work methods and forms of learning (more decentralised, independent, self-organised). Internet-based instruments, for example, already exist for training embassy personnel.

Set-up: All internet projects are processed using the same organisational structure and procedures which are applied to other IT projects, although in practice some special features are established. The SMF distinguishes between intranet, extranet and internet projects. Intranet projects are being implemented in the Telematics Department of the SMF and at the MDCH. Parts of the operation are also being carried out by the FIT. When it comes to internet projects, the FIT is the primary service provider. For all projects connected with internet technologies the Telematics Integration Department of the web manager is therefore commissioned to coordinate the needs of the service procurers and to bundle investments in new technologies. For example, a while ago a content management system was introduced. The FIT operates this system. The web manager’s objective is to make this infrastructure available to all service procurers. In practice, it is nevertheless the case that individual service procurers make their own investments, so that harmonisation has yet to be achieved.

The distinction between intranet, extranet and internet allows the service procurers considerable room for manoeuvre. Technically speaking, the boundaries between these three applications are unclear. In organisational terms, it is also possible that these areas will overlap. Even if individual applications can be clearly allocated, it makes sense in most cases to fall back on a joint infrastructure. Based on past experience, data and functions which are used in the internet can also be used for extranet and internet applications in some cases. If several technologies are installed in parallel, this multiple use is impeded. It is also inconceivable nowadays that a single infrastructure is capable of covering all needs. In individual cases it is therefore economical to make specific investments. The opinion of the CIO is clear: at present too much money is being spent on setting up technology. Organisational requirements and personnel development are being neglected. This is manifested, for example, in the fact that the training budget is only one percent of the overall budget. The funds allocated to technical tools exceed this figure many times over.


Fig. 3: Distribution of rights and duties with respect to the internet

The distribution of rights and duties between the organisational units for setting up and operating internet applications is similar to other ICT projects. integration managers liaise between the service providers and service procurers. They are supported by the web manager. Thus, the SMF meets multidisciplinary requirements for internet projects. Integration managers have the task of coordinating, demand and the offer with each other. At present, each project that is ready for implementation is communicated to internal service providers. A decision is made in consultation with the respective integration manager and the service procurers as to whether an external service provider should be called in (cf. Fig. 3).

Double rolls have arisen in the following departments:

• The information service is often the service provider in the case of internet projects, in that it, for example, assists in designing contents for publication in the internet and sets up guidelines for dealing with information in the internet.
• The web mnager is also responsible for part of the operation of internet applications in addition to his/her role as coordinator of integration managers.
• In addition, all service providers also have their own needs for internet applications. They can sometimes satisfy these needs themselves, but in isolated cases they are not allowed to do this, as the BIT is, for example, responsible for this.

In this relatively complex ICT organisation structure, the web manager has the task of allaying uncertainties regarding changes concerning internet technologies by intervening in an advisory and regulative capacity from planning up to the launch of new applications. In addition, he/she is also responsible for discovering and eradicating overlaps in competencies, promoting harmonisation within the ICT infrastructure, explicating know-how from the projects and making it available for subsequent projects. He/she works closely with the integration managers.

Orientation: The web manager orientates himself/herself to the needs of service procurers, the specifications of the CIO, the federal e-Government strategy and other internal government coordination offices when coordinating the activities of the integration managers. E-Governement strategy has been worked out by the Government Committee for IT Strategy (GCITS).

At present, the web manager is working out the web architecture for the SMF in cooperation with the integration managers. It will stipulate objectives and contain guidelines for investment decisions and for project management.

An important instrument for orientation are also best practices. As long as technologies radically change to the extent which is currently being experienced, it appears sensible to incorporate the initial project in another department in order to demonstrate the potential for other departments and to derive best practices from this (e.g. on the subject of the intranet).

Coordination: By introducing Nove-IT, the management of IT was initially weakened.. Many strategic tasks have been transferred to the operative level. The Government IT Committee is currently correcting this imblance by taking over strategic management.

In the SMF department, the management has also been strengthened. The Telematics Committee is taking responsibility for management in the field of IT.

Lastly, instruments have been established at an operative level which ensure coordination between the protagonists of overall ICT organisation in the department. For example, regular meetings take place between the integration managers, the web managers and the service providers under the management of the CIO. This coordination is, however, in the process of development. Rules and escalation methods are still missing. Even the job description of the web manager has been formally established, but his/her role has still not been established in practice.

Within ICT projects, a nationwide HERMES is used. This makes it easier to coordinate activities outside the projects, as all employees use the same phase model and the same documents for controlling projects.

Motivation: An important message in Nove-IT is the will to redistribute the investment budget to the service procurers. The integration managers as representatives of a whole group of service procurers should have sufficient resources to be able to implement their ideas. After all, their service procurers (Line managers in the departments) bear the responsibility for the success achieved with IT services. At present it is estimated that 76% of funds lie in the hands of service providers. The fact that this redistribution is taking place slowly is down to the fact that it has been decided by the Federal Council and has not been set in motion under the administration’s own steam.

The described ICT organisation in general and web organisation in particular must still be seen as a target objective at present. In practice, coordination is also taking place via informal channels at all levels. The web manager is actually nominated to accompany the project and act as coordinator in many cases. As far as other projects are concerned, he/she is consulted as a matter of form at the beginning of the planning phase. It may also be the case that the web manager is nominated to manage the project.

The system of internet use at SMF makes it difficult to quantify effectiveness. Up to now a significant increase in efficiency has been achieved from the employees’ point of view with respect to written and telephone transactions due to e-mail. At the same time, however, the volume of emails sent has increased to such an extent that part of the gain in efficiency has been lost.
Without e-mail, work would have to be abandoned in most offices. A good demonstation of this effect arose due to a virus problem. The network was not availale for virtually a whole day. On this day many of the employees were barely able to work productively, although the SMF still maintains infrastructures for the non-electronic forwarding of documents. For external offices without internet access and for security reasons this is imperative. This infrastructure can be reactivated for the whole of the SMF at all times. The same advantages that apply to e-mail also apply to the World Wide Web. Customers (internal and external) can obtain the required information quicker. The result is that customers can serve themselves more. On the other hand, the number of contacts has grown enormously. This is the consequence of increased transparency. All in all, an enormous increase in efficiency through the use of the World Wide Web with the simultaneous increase in the number of contacts is still a zero-sum game. There is still plenty to do here. Above all, the intranets can still be expanded. The following example serves to give an example of how potential can be reaslised. The embassy in Washington has translated the Federal Constitution into English. If this document is made available to all embassies via the intranet, the SMF not only saves short-term costs for translation, but the document only has to be maintained once.

The CIO of the Telematics Integration department also concludes that the SMF is still in the process of converting from old habits to new ones. The potential for internet technologies can still not be clearly identified. An efficent increase in internal and external communication has been achieved, but a huge amount of potential still exists. In the case of transaction-oriented systems, the CIO does not anticipate an increase in efficiency. Transactions were previously already processed electronically. In this field, only a platform change is taking place. At best, this will lead to an increase in efficiency on a technical level.

The direct challenges are connected with managing the transition. In terms of information processing, adequate search strategies are, for example, lacking in order to optimally benefit from the potential of the internet (as well as the intranet and the extranet). Investments are being made in the production factor of information technology, but it is not being used to optimum effect. To do this, a measure must be added which is inly formulated as an idea so far. The training of employees must pursue organisational and didactic targets to a greater extent and must be manifested to a lesser degree as application training.

Managing the transition also means making political decision-makers and departmental managers more aware of the potential of the internet. Only this will increase understanding of the necessity for urgent investments in the ICT infrastructure.

From a technical point of view, one of the greatest challenges is to increase the recyclability of contents and functions. To do this, communication between systems must be greatly improved. The harmonistation of platforms is one way and another way is to form interim layers (e.g. data warehouses or application integration via third-party products).

As far as the ICT infrastructure as a whole is concerned, it is now clear that harmonisation can be pushed ahead much more quickly than is possible in the case of recent internet technology. Around 60% of needs can be satisfied with office packages and e-mail. There are now seven production centres for this in the Federal Administration. Efficiency must be increased if growing requirements are to be met in the future where budgets remain constant.

Lastly, the transformation from the internal provider market to the consumer market must be managed. There will be winners and losers. Between them are the CIO and the web manager. Their function is therefore equally characterised by micropolitical and technical challenges.

The telematics integration of the SMF has simultaneously brought with it two changes that affect all levels of organisation:

• The introduction of the internet and the associated organisational and technical change.
• The introduction of Nove-IT and the associated organisational change.

The challenges that especially affect the web manager and the CIO in general clearly demonstrate the tension between integration and differentiation based on the example of the SMF. On the one hand, the aim is to create harmonisation (integration), and, on the other hand, there are always good technical arguments for go-it-alone policies and specific investments to satisfy specific needs of individual service procurers (differentiation).

The management of this tense relationship is a constant task. At present, it may be especially difficult to find an optimum strategy, as it is constantly influenced by changes in the technology and provider markets. To ensure that the management of the ICT infrastructure is not only characterised by “trial and error”, the strategy adopted by the SMF by means of model projects and the gradual formalisation of decision-making strategies and “best practices” appears to be appropriate