This document was prepared for Public Works and Government Services Canada by the following Working Group: John M.C. Davis, Image and Integration Inc. (Coordinator) Ira Bridger, NGL Nordicity Group Ltd. Art Caston, A.T. Consulting Inc. Denzil Doyle, Doyletech Corporation Dr. Thomas B. Grandy, NGL Nordicity Group Ltd. Grant Westcott, Public Works and Government Services Canada November 22, 1993 Table of Contents. EXECUTIVE SUMMARY 1. Introduction 1 2. A Perspective on National Information Infrastructure Development for Canada 4 3. Building an Infrastructure for Electronic Government 10 The Initial Mandate 14 3. 1 Breaking Ground: Creating the Framework for an Electronic Information Infrastructure for Government 15 3.2. Laying the Foundation: An Information Infrastructure for Administrative Systems in the Federal Government 3.3 Expanding the Framework: A Common Infrastructure for Electronic Delivery of Government Services Phase 2 20 3.4 Realizing the vision: A National Infrastructure Utility 22 4. Progress through Partnerships 24 5 Redefining the Legislative and Regulatory Framework 30 6. Creating Sustainable Benefits 31 7. On Moving Forward: Decisions, Actions, Results 33 Appendix A: An Operational Scenario 35 Common Administrative Services 35 Core infrastructure competencies and value added services: 36 Commercial value added services: 39 Competitively procured products and services which are used by the infrastructure: 40 Appendix B: A Phase Plan 42 Phase 1: A Common Infrastructure for Administrative System for the Federal Government 45 Phase 2: A Common Infrastructure for Program Delivery 46 Phase 3: A National Information Systems Utility 47 Appendix C: A Perspective on the Roles of Government and the Private Sector in a National Utility 48 The Role of Government 49 Providing Leadership 50 The leadership role for Government spans: 50 The challenges to successful leadership within the Public Sector include: 51 Building the Foundation - the Catalyst Role 52 Stimulating Economic Growth - Building on the Foundation 52 The Partnership Role of Government 53 Fulfilling the Role 53 Common Information Systems and Discussion Paper Services Infrastructure Executive Summary EXECUTIVE SUMMARY. In the economy of the 1990's, it is the information and knowledge-based industries that are providing the foundation for jobs and economic growth. Creating Opportunity: The Liberal Plan for Canada. This document introduces an innovative Federal Government initiative which could have a significant impact on the Canadian information and knowledge-based industries. The impact - the creation of billions of dollars in new business and thousands of new jobs spread across all regions of Canada. The innovation - stimulating economic growth while reducing the cost of Government and increasing the level of service delivery to the public. The how - by providing leadership through the creation of ACCESS Canada, a national electronic infrastructure for the Federal Government as a co-operative and collaborative partnership with the private sector. Considerable emphasis has been placed on investment in infrastructure as a stimulus to economic renewal. The focus of this investment has been the traditional infrastructure of public buildings and transportation. However, it is becoming widely recognized that employment growth over the next ten years will come predominantly from the information and knowledge-based industries. Investment in electronic infrastructure will be a prerequisite to stimulate this growth. It is projected that this national electronic infrastructure will consist of interconnecting and interoperable computing and communications resources. These resources will include communications networks, databases and information services and will be accessible to all Canadians, Figure 1. From major urban centres to remote communities, the electronic infrastructure can provide convenient, equitable and effective access to a wide range of public sector and commercial services. ACCESS Canada is an initiative to lay the foundation for a national electronic infrastructure. To Government, a common information systems and services infrastructure can provide a major contribution to the enhancement of its internal operations. This can be enabled through a range of common administrative support services built upon a common layer of information and communications technology services. In addition, the availability of a national information infrastructure which is accessible by all Canadian citizens and by all Canadian businesses, can offer significant opportunities to enhance the delivery of Government programs and services. By providing a single common delivery vehicle, the cost of duplicate infrastructures can be avoided.
To the Canadian Public, a common infrastructure can provide convenient and equitable access: Access to government information (e.g. regarding entitlements, available jobs), access to Government services and programs (e.g. for filings, for inquiries, and for health care), access to a convenient mechanism for updating common demographic data (e.g. registering a change of address with all relevant entities), and access to the new generation of content oriented products and services "published" electronically (egg. cultural and heritage programs, education, news, personal management services). Convenience through a combination of access media (evolving from the established phone, fax and mail systems), to a new generation of electronic information appliances (evolving from the workstation on a government employee's desk, through to public access kiosks, and in future to a range of domestic "appliances" which may merge the computer, TV and telephone capabilities into a single intelligent device). And the convenience of access 24 hours a day, 365 days a year To traditional Canadian Business, as users of a common infrastructure for electronic commerce, there are a number of real and tangible benefits both operationally and financially in their interaction with Government (e.g. for filings and corporate reporting). A study by the Economic Strategy Institute in Washington estimated that the broader indirect productivity benefits resulting from usage of such an infrastructure in the U.S. would be as much as $321 Billion in net new GNP growth and add 0.4% to annual U.S. productivity over the next 16 years. in Canada, the equivalent growth could be as high as $16 Billion and 0.2% annual growth. To companies in the information based industries, it is suggested that a common national infrastructure is an essential ingredient for significant growth. Studies by ITAC, the Information Technology Association of Canada, and others, have identified that the information industries are among the largest sectors of the economy - surpassing the forestry, mining and automotive sectors by a wide margin. In its report "A Knowledge-Based Canada", ITAC states that "our economic power base is shifting: the world market for information technology (IT), goods and services exceed $1 trillion and will double within 10 years." In "The Electronic Consumer", a research program undertaken by a U.S. firm, Decision Resources Inc., it has been identified that "consumers are driven by a desire for content rather than by a fundamental need for a new product or service". It is projected that the content oriented sector of the information industry will see the largest growth. By having access to a flexible infrastructure, constructed around accepted international and open standards, smaller, indigenous Canadian companies can focus on developing content oriented products and services which have a world wide market. The discussion paper "ACCESS Canada, A National Information Systems Utility to Provide A Common Information Systems and Services infrastructure for the Federal Government Through a Co-operative initiative with the Private Sector" introduces the ACCESS Canada initiative. In this document a vision is presented in which government: -Takes a leadership role through the innovative application of information technology to rationalize operating costs, provide more responsive and effective services to Canadian citizens as envisaged in the vision expressed by the Chief Informatics Officer for the Federal Government. -Adopts a catalyst role for the development of a strong national information technology and services based industry. The document also presents a pragmatic, results oriented approach for this proposed initiative. Key elements of this approach include: - Maximizing the multiplier effect of federal information infrastructures expenditure to stimulate the creation of a national information infrastructure and as a consequence, the creation of new jobs in the information based economy. - Developing a phased approach to implementation of a common information infrastructure initiative for Government where each phase delivers real and tangible benefits to the various constituencies (public, government, and Canadian business). - Harnessing the strengths of both the public and private sectors through a proactive, co-operative initiative between the Government and the Canadian private sector to build an effective infrastructure. - Spending smarter - "to do more with what we have". Specifically, the objective is to leverage current and projected government expenditures on the application of information technology through the creation of a common infrastructure. - Identifying the scope of the long term vision and the operational and legislative framework required to make this vision a reality. It is recommended that ACCESS Canada be developed within the overall context of national information infrastructure evolution in Canada. This initiative recognizes the need for inter-operation between a national government infrastructure and existing private sector and special interest networks (e.g. the banking networks, regional/provincial networks, research networks such as CANARIE and OCRInet, and the networks of the telecommunications carriers). A phased approach is proposed to move towards the overall vision for a national information utility. This phased approach identifies three overlapping phases as illustrated in Figure 2. These Phases are: Phase I: A Common infrastructure for Administrative System for the Federal Government. Phase 2: A Common infrastructure for Program Delivery. Phase 3: A National information Systems Utility. The first two Phases emphasize the operational needs of the Federal Government and are the focus of this initiative. Phase 3, a national information systems utility, is anticipated to be a result of the evolution of the common Government infrastructure from a vehicle for the electronic interaction between the Government and Canadian citizens and businesses, to a more ubiquitous infrastructure enabling universal electronic interaction. This last phase embodies the catalytic effect of Government infrastructure expenditure and investment to produce the desired multiplier effect in the private sector for the creation of new jobs in the emerging information based economy.
"We want a country whose Governments are efficient, innovative and co-operative" ..." People are disappointed by, and irritated with the poor quality of services provided by many public institutions... (and) by the apparent duplication of services between levels of government, and within the Federal Government itself." In creating a common information infrastructure for Government, there is a unique opportunity, through direct action, to demonstrate the new government's commitment to the principles of equity service, effectiveness, co-operation and collaboration as set out in "Creating Opportunity: The Liberal Plan for Canada". ACCESS Canada can provide significant savings to the Government through removal of duplication in expenditure on departmental administrative systems and departmental investments in program delivery infrastructures. ACCESS Canada can provide a vehicle through which to address the demands for improved service levels to the public (convenient, consistent, 24 hour access). it can also provide a the tools necessary to address the increasing complexity encountered in the delivery and management of government programs and services. ACCESS Canada can provide the catalyst for the creation of an effective Canadian information based industry with the potential and support to compete in the global marketplace. In summary, ACCESS Canada is a proposed utility to provide a common information systems and services infrastructure for the Federal Government. It will consist of a shared computer and communications network, support services and common administrative applications (such as financial, materiel, and human resources applications). It will also form the basis for common electronic program delivery to the public (for example through the common network of public access terminal (kiosks) and eventually delivery to the home). The objectives in creating this discussion paper are: 1. To obtain agreement in principle to proceed on the creation of ACCESS Canada, an infrastructure utility for the delivery of common information systems and services for government. 2. To move forward in establishing the ground rules and the business planning process for the creation of the utility as a co-operative public/private sector partnership. 3. To establish the management team with the mandate to: - Actively move forward with the initiative. - Represent the Federal Government in a co-operative venture with the private sector, based on the criteria established in 2 above. - Act as a focal point for the co-ordination of the various priorities, policy and program interests of the Government. Details of this proposed initiative are presented in the document "ACCESS Canada, A National information Systems Utility to Provide A Common information Systems and Services infrastructure for the Federal Government Through a Co-operative initiative with the Private Sector". 1. Introduction. "We want a country whose Governments are efficient, innovative and co-operative" Creating Opportunity: The Liberal Plan for Canada. This document lays out the framework for the creation of ACCESS Canada, a utility to provide a common information systems and services infrastructure for the Federal Government. it is recommended that this information infrastructure be developed within the overall context of national information infrastructure evolution in Canada. This initiative recognizes the need for inter-operation between a national government infrastructure and existing private sector and special interest networks (e.g. the banking networks, regional/provincial networks, research networks such as CANARIE and OCRInet, and the networks of the telecommunications carriers). The body of the document introduces a vision in which government: -Takes a leadership role through the innovative application of information technology to rationalize operating costs, provide more responsive and effective services to all Canadian citizens; and -Acts as a catalyst for the development of a strong national information technology and services based industry. The time for action is now. The challenges of restructuring government to meet the expectations for social and economic renewal cannot be met within the traditional paradigms. The document presents a pragmatic, results oriented approach for the creation of a Federal Government infrastructure utility. Key elements of this approach include: - Maximizing the multiplier effect of federal information infrastructure expenditure to stimulate the creation of a national information infrastructure and as a consequence, the creation of new jobs in the information-based economy. - Developing a phased approach to implementation of a common information infrastructure initiative for government where each phase delivers real and tangible benefits to the various constituencies (public, government, and Canadian business). - Harnessing the strengths of both the public and private sectors through a proactive, co-operative initiative between the Government and the Canadian private sector to build an effective infrastructure. - Directly addressing the operational needs of the federal government with respect to processing information in electronic form and in terms of increasing the efficiencies of the administrative processes, the effectiveness of program delivery to Canadian citizens and enhancing the overall management of government. - Spending smarter - "to do more with what we have". Specifically, the objective is to leverage current and projected expenditures on the application of information technology through the creation of a common infrastructure. - identifying the scope of the long term vision and the operational and legislative framework required to make this vision a reality. A phased approach is proposed to move towards the overall vision for a national information utility This phased approach identifies three overlapping phases as illustrated in Figure I l. These Phases are: Phase I: A Common infrastructure for Administrative System for the Federal Government. Phase 2: A Common Infrastructure for Program Delivery. Phase 3: A National information Systems Utility. The first two Phases emphasize the operational needs of the Federal Government and are the focus of this initiative. Phase 3, a national information systems utility, is anticipated to be a result of the evolution of the common Government infrastructure from a vehicle for the electronic interaction between the Government and Canadian citizens and businesses, to a more ubiquitous infrastructure enabling universal electronic interaction. This last phase embodies the catalytic effect of Government infrastructure expenditure and investment to produce the desired multiplier effect in the private sector for the creation of new jobs in the emerging information based economy. The objectives in tabling this discussion paper are: I. To obtain agreement in principle to proceed on the creation of ACCESS Canada, an infrastructure utility for the delivery of common information systems and services for the Federal Government. 2. To move forward in establishing the ground rules and the business planning process for the creation of the utility as a co-operative public/private sector partnership. 3. To establish the management team with the mandate to: - Actively move forward with the initiative. - Represent the Federal Government in a co-operative venture with the private sector, based on the criteria established in 2 above. - Act as a focal point for the co-ordination of the various priorities, policy and program interests of the Government. 2. A Perspective on National Information Infrastructure Development for Canada. "In the economy of the 1990s, it is the information and knowledge-based industries that are providing the foundation for jobs and economic growth." Creating Opportunity: The Liberal Plan for Canada. Established infrastructures in telecommunications, cable and broadcasting are undergoing a major transformation. This is a result of the convergence of communications and information technologies. More importantly, the transformation is being driven by the demands of the emerging information age for efficient, accessible, affordable and convenient electronic interaction between the suppliers of information and the consumers of information. The development of "electronic highways" is widely accepted as an essential national investment. The imperative for this investment is the perceived need for a nation to achieve and maintain international competitiveness in traditional areas of commerce and, more importantly, to provide the foundation for employment in a new generation of knowledge-based industries The most common analogy used to describe the nature of the electronic highway is the development of the nation's network of roads. in the beginning, a road trip was often a slow and difficult undertaking over rudimentary roadway. As this evolved into the well constructed highway system we now have, the highways network became an essential part of the backbone of our whole social and economic structure, stimulating productivity, innovation and social interaction. Although the private sector did not own the roads, it profited enormously from the means required to use them and the wide range of innovative services that emerged from their use, e.g. motels, fast foods, superstores, travel trailers and roadside restaurants, etc. It is projected that this national information infrastructure will consist of interconnecting and interoperable computing and communications resources. These resources will include communications networks, databases and information services and will be accessible to all Canadians, Figure 2.1. From major urban centres to remote communities, the electronic infrastructure can provide convenient, equitable and effective access to a wide range of public sector and commercial services.
Public sector services may range from government programs such as benefit programs and taxation, to health care services, education and access to national cultural resources such as museums and libraries. Private sector services may span the range from the highly publicized "infotainment" offerings such as "movies on demand", to enhanced capabilities for electronic commerce for individuals, major corporations, and for small to medium-sized business (e.g. electronic ordering, payment, financial and administrative services for business which reduce administrative burden). From the Government's perspective, a national information infrastructure can provide both the capacity and the opportunity to: - Create new, highly skilled, and well paying jobs in the communications and information technology services sector. - Improve quality and program delivery for the full range of government services, from health and education programs, to entitlement programs such as social assistance and pensions, to programs of public stewardship with respect to the environment. - Improve access and dissemination of government data. Government is one of the largest repositories of educational, social, economic and business information in the country which has substantial value for economic and social development (e.g. education, training, culture). - Reduce the barriers of geography, time and space to provide equitable access to services and economic opportunity, particularly to level the playing field between urban and rural areas of the Country. - Improve individual Canadians' accessibility to government information and services and provide more open communication between citizens and government officials. - Link cultural resources e.g. libraries, national museums and galleries, or provide multi- media tools and applications for the performing arts. In its broadest sense, the benefits of a national information infrastructure is like that of our highways network. It is a strategic national asset that can stimulate innovation, improved productivity and improvements in our quality of life. It can also position us to participate more effectively in' new and emerging markets and to capture and realize the economic benefits. In the anticipated information age, all users of the infrastructure will evolve to be both creators and consumers of electronic information. Towards a National Information Infrastructure for Canada. The Federal Government has a unique opportunity to provide the visionary leadership, the policy framework and the operational role model for a strategy to move Canada towards this broader vision of an information economy and the development of a national information infrastructure. This strategy would have the following key elements: - Maximizing the multiplier effect of federal information infrastructures expenditure to stimulate the creation of a national information infrastructure and as a consequence, the creation of new jobs in the information-based economy. - Developing a phased approach to implementation of a common information infrastructure initiative for Government where each phase delivers real and tangible benefits to the various constituencies (public, government, and Canadian business). - Harnessing the strengths of both the public and private sectors through a proactive, co-operative initiative between the Government and the Canadian private sector to build an effective infrastructure. - Spending smarter - "to do more with what we have". Specifically, the objective is to leverage current and projected expenditures on the application of information technology through the creation of a common infrastructure. - Identifying the scope of the long term vision and the operational and legislative framework required to make this vision a reality. - Eliminate barriers caused by incompatible standards. This will promote an expansion of opportunity for Canadian companies to participate in international markets. Outwardly, to the various constituencies of users, the benefits of an information infrastructure may be viewed from different perspectives. For example, four of the primary user constituencies are Government, Canadian citizens, Canadian businesses and the Canadian information-based industries sector. To Government, a common information systems and services infrastructure can provide a major contribution to the enhancement of its internal operations. This can be enabled through a range of common administrative support services built upon a common layer of information and communications technology services. This opportunity is outlined in Section 3.2: laying the Foundation: An Information Infrastructure for Administrative Systems in the Federal Government - Phase 1. In addition, the availability of a national information infrastructure which is accessible by all Canadian citizens and by all Canadian businesses, can offer significant opportunities to enhance the delivery of Government programs and services. By providing a single common delivery vehicle, the cost of duplicate infrastructures can be avoided. These opportunities are explored in Section 3.2: Expanding the Framework, A Common Infrastructure for the Electronic Delivery of Government Services- Phase 2. To the Canadian Public, a common infrastructure can provide convenient and equitable access. Access to government information (e.g. regarding entitlements, available jobs), access to Government services and programs (e.g. for filings, for inquiries, and for health care), access to a convenient mechanism for updating common demographic data (e.g. registering a change of address with all relevant entities), and access to the new generation of content oriented products and services "published" electronically (e.g. cultural and heritage programs, education and skills development, news, personal management services). Convenience through a combination of access media (evolving from the established phone, fax and mail systems), to a new generation of electronic information appliances (evolving from the workstation on a government employee's desk, through to public access kiosks, and in future to a range of domestic "appliances" which may merge the computer, TV and telephone capabilities into a single intelligent device). And the convenience of access 24 hours a day, 365 days a year. To Financial institutions, common information infrastructure provides new opportunities for development of electronic based financial services. it also provides an opportunity for these institutions to participate in electronic commerce activities at all levels of government, business, institutional and public interaction. To traditional Canadian Business, as users of a common infrastructure for electronic commerce, there are a number of real and tangible benefits both operationally and financially in their commercial and statutory interactions with Government (e.g. for filings and corporate reporting). A study by the Economic Strategy Institute in Washington estimated that the broader indirect productivity benefits resulting from usage of such an infrastructure in the U.S. would be as much as $321 Billion in net new GNP growth and add 0.4% to annual U.S. productivity over the next 16 years. in Canada, the equivalent growth could be as high as $ 16 Billion and 0.2% annual growth. If the proposed Canadian Government information infrastructure was made widely available to businesses, it would improve international competitiveness and be a major stimulant to overall economic growth. To companies in the information based industries, it is suggested that a common national infrastructure is an essential ingredient for significant growth. Studies by ITAC, the information Technology Association of Canada, and others, have identified that the information industries are among the largest sectors of the economy - surpassing the forestry, mining and automotive sectors by a wide margin. In its report "A Knowledge-Based Canada", ITAC states that "our economic power base is shifting: the world market for information technology (IT) goods and services exceed $1 trillion and will double within 10 years." In "The Electronic Consumer", a research program undertaken by a U.S. firm, Decision Resources Inc., it has been identified that "consumers are driven by a desire for content rather than by fundamental need for a new product or service". It is projected that the content oriented sector of the information industry will see the largest growth. By having access to a flexible infrastructure, constructed around accepted international and open standards, smaller, indigenous Canadian companies can focus on developing content oriented products and services which have a world wide market. A phased approach is proposed to position the Federal Government's investment in information infrastructures within an overall vision for a national information utility. This phased approach identifies three overlapping phases as illustrated in Figure 2.2. These Phases are expanded in Appendix B: A Phase Plan, and are summarized below: Phase 1: A Common infrastructure for Administrative Systems for the Federal Government. Phase 2: A Common Infrastructure for Program Delivery. Phase 3: A National Information Systems Utility. The first two Phases emphasize the operational needs of the Federal Government and are the focus of this initiative. Phase 3, expands this infrastructure into a national information systems utility. This national utility is anticipated to be a result of the evolution of the common Government infrastructure from a vehicle for the electronic interaction between the Government and Canadian citizens and businesses, to a more ubiquitous infrastructure enabling universal electronic interaction.
The following sections focus on Phase 1, Phase 2 and the steps required to activate the ACCESS Canada initiative. 3. Building an Infrastructure for Electronic Government "People are disappointed by, and irritated with the poor quality of services provided by many public institutions (and) by the apparent (duplication of services between levels of government, and within the Federal Government itself. Creating Opportunity: The Liberal Plan for Canada. It is recognized that a common information infrastructure for Government will make a significant contribution towards addressing public dissatisfaction with the service level and the administrative cost of Government. Across society, and specifically within government, the entire concept of information and information systems is undergoing a paradigm shift. The demands for information and the capability to use this information effectively, have created a whole new set of needs and opportunities. These new needs revolve around the ability to handle huge volumes of data efficiently, effectively, and in a way that preserves the intrinsic values of our society with respect to confidentiality and security. The importance of information in the new economy, and propagation of electronic information systems in the workplace are major contributors in driving this era of change. As the largest producer and consumer of information in the country, Government is feeling the impact. information infrastructures of Government are faced with the very real challenge of coping with the cumulative impact of change on a wide range of fronts (e.g. changes in volume, changes in expected response times, changes in technology, changes in available finding, changes brought about by the increasing interdependence of organizations on each other and on common information). Notwithstanding these new demands, the cumulative effect of economic, business, and organizational change over the past decade has rendered many Government "infrastructures" obsolete and in critical need of replacement (as exampled by the recent income Securities Program Redesign initiative). We simply cannot continue to do the same old things in the same old way. At a day-to-day level, these changes are driving government to: - Enhance the internal management and administration of Government. - Significantly increase productivity in the delivery of Government Services - i.e. provide more service for less dollars. - Increase and enhance the levels of service offered to the public - to keep pace with the "acceptable" levels of service offered in corresponding areas by the private sector, e.g. shop by phone, track and trace, 24-hour service, convenient access as exemplified by the large number of automated banking machines in use. With respect to re-tooling the information infrastructures of Government, the imperatives for change are: The need to address the increasing complexity encountered in the delivery and management of Government programs and services. Complexity is introduced in part through the larger amount of information required to perform a task (e.g. assess a tax filing or process an application for social services), and in part through the perceived need for strict adherence to complex process rules. As indicated in "Customer Service Excellence, a Summary Report" from the JFK School of Government at Harvard, "...Public employees are held accountable more for following the rules (maximizing equity by treating cases exactly alike) than for making customers happy." The report goes on to state "In general. as production and consumption (of information) grow more complex. the problems of management become more difficult, especially for services, and most especially for Government services.... The Public Sector is falling `dangerously behind in the use of IT for service delivery. "~ The imperative to do more with less. Government is increasingly being forced to handle more queries, make more informed and consistent decisions, and to do this with less operating dollars and less staff The imperative to increase the level of sharing among and between the various Departments of Government and the private sector. The stimulus for this is a combination of financial considerations (removing the cost of redundant and duplicated activities), and operational considerations (the next generation of processes are complex and depend on effective co-operation to work at all, e.g. the increasing use of EDI, Electronic Data interchange, in the purchasing and financial settlement activities). The imperative to stimulate the creation of new industries and economic sectors based on information. it has been recognized that "In the economy of the 1990s, it is the information and knowledge-based industries that are providing the foundation for jobs and economic growth. ... For Canada ...advantage now hinges... on the sophistication of our infrastructure, our ability to innovate..." Creating Opportunity: The Liberal Plan for Canada Providing leadership and stimulating co-operation, both within the Government and between the public and private sectors, may well be the biggest challenge of this initiative. The public service is actively addressing this challenge. In a presentation to the implementation Board on Government Restructuring, September, 1993, the Chief Informatics Officer (CIO) for the Federal Government articulated a vision for the broader application of common information systems and support functions across government departments. This vision included: - Service and support junctions rationalized across departments and programs to reduce duplication and streamline operations; - Services delivered directly to the clients, or made easily accessible to them, through electronic means; - A standard suite of interconnected management and employee system tools available at the finger tips to support decision making and service delivery; - A standards-based tele-computing infrastructure in place to enable integrated government operations across the country; and - Routine processes (80% of all business activities) automated to reduce costs and the need for human intervention. The immediate focus of this proposed initiative is to provide the enabling infrastructure (i.e. the "standards-based tele-computing infrastructure", management and support services), on which these common and shared functions can be delivered. The importance of this initiative is that it combines strong incentives for action with a practical implementation plan based on the fiscal and operational realities of the day. The incentives are: - Significant reductions in the cost of internal administration of government and in the delivery of government programs to the public. These savings are realized through the reduction of duplicate infrastructures and the syndicated development and deployment of common electronic service delivery capabilities with the private sector. - these savings are estimated to be in the hundreds of millions of dollars annually for the Federal Government (Office of the Chief Information Officer). - Significant opportunities for economic growth through the creation of new and innovative information industries. These are realized through the direct creation of new sources of jobs and revenue through the development of new information industry based products and services. This is estimated to be in the $Billions annually by the turn of the century. (An estimate based on the various studies and estimates recently published). - Strengthening the national fabric through closer integration and delivery of programs from all levels of government to the public in a consistent, accessible and affordable manner. - Indirect productivity improvements to the traditional sectors of the Canadian economy through the utilization of electronic commerce supported by a national information utility. (Economic Strategy Institute study for US.) This is estimated to be 0.2% of the national GNP or over $B1.0 annually. - Direct improvements in the cash requirements of small to mid-sized Canadian companies through the adoption of electronic commerce in shortening the whole ordering/delivery/payment cycle. Specifically, the wider adoption of electronic commerce by Government would reduce the float required by companies to handle the cash requirements between invoicing and payment. it is estimated that this would improve the working capital position of smaller and medium-sized suppliers to the Federal Government by hundreds of millions of dollars. - Creation of a whole new set of needs and opportunities generated by the demands for information, and the capability to use this information effectively. These new needs revolve around the capabilities required to handle huge volumes of data efficiently, effectively and to do so in a way that preserves the intrinsic values of society (e.g. confidentiality and security of electronic data). New opportunities lie in building the products and services required to satisfy these needs, and in the productivity gains to traditional government and industry in applying the new information technologies and practices. The size of these opportunities over the next decade has been estimated in the trade press to be in the $Billions. Government has limited money for major new capital investments. The drive is to increase the efficiency and effectiveness of current activities to generate dollar savings in operational expenditures. These savings can be made available to finance the retooling activities for continuous service improvements. - At the policy and political level, there is recognition that information- based industries will be a major "growth sector" for the Canadian economy. Stimulating this growth is a focus of intense interest and Government as a model user of information technology can provide a major stimulus for growth - At the operational level, the senior bureaucracy recognizes the need for a common information infrastructure - There is a growing number of common service functions which will increase the rationale for resource sharing between major program departments. Specifically, the increasing use of electronic service delivery capabilities (kiosk, EDI). - Telecommuting and electronic service delivery could provide significant social and economic opportunities to remote communities. The Initial Mandate. It is proposed that the initial mandate for ACCESS Canada is to enable the CIO's vision through the provision of a common information infrastructure capability. Components of this infrastructure include: - Applicable Common Technology Standards. - Common Information Processing and Data Storage Capabilities. - Common Client Access Capabilities. - Common Communications Capabilities. - Common Applications Services. - Common Client Services. - Common Support Services. - Information Management Services. - Infrastructure Management Services. These are expanded in Appendix A: An Operational Scenario. With respect to changes required in the legislative framework to realize the potential benefits of a common information infrastructure, it is noted that: - It is intended that initial efforts have no dependency on changes to the legislative framework. - A parallel and coordinated series of activities should be initiated to ensure that an appropriate legislative environment exists in a timely manner for Phases 2 and 3. These legislative issues are expanded in Chapter 5: Redefining the Legislative and Regulatory Framework. In support of government programs, the proposed utility would be subject to a higher level of public scrutiny than equivalent private sector infrastructures. This scrutiny is reflected in the "Big Rules" for public sector operation, viz.: - Rules with respect to the confidentiality and security of information. - Rules with respect to the procurement process. - Recognition of the imperative to ensure continuity in the delivery of government programs throughout the process of change. - Recognition of the obligation to provide consistent, equitable access to government for Canadian citizens regardless of geography. - Recognition that a national imperative may require the interaction with co- existent and complementary infrastructures. 3.1 Breaking Ground: Creating the Framework for an Electronic Information Infrastructure for Government. As introduced in the Phase Plan, the ground breaking phase is focused on the development of a common information infrastructure in support of the internal administrative functions of the Federal Government. It is proposed that this phase be implemented in several distinct steps - predicated on the acceptance of the recommendations made in this document. These steps include: Step l: Approval of this overall concept and approach from a policy perspective. Step 2: Establishment of a Management Team chartered with the responsibility to generate a business plan for ACCESS Canada. This plan should include: - identification of the target operational environment (clients, functions, needs and priorities) - Target Business Model and selection of Partnering Vehicle. - Preliminary implementation Plan. - The Financing Plan based on the discussion described in this document. - A Transition Strategy which addresses staff; technology and existing infrastructure. It is suggested that this management team be drawn from: - Public Works and Government Services Canada. - Treasury Board Secretariat/ISMT, - Industry Canada, and - Representatives from major program departments Step 3. Draft the appropriate Cabinet and Treasury Board submissions for the creation of ACCESS Canada as an independent entity. Step 4. Prepare a preliminaridentification of the target operational environment (clients, y architecture and implementation plan based on the CIO's Blueprint and other relevant infrastructure submissions. Step 5. Initiate formal discussions regarding private sector participation. Step 6. Implement the Business Plan. 3.2. Laying the Foundation: An Information Infrastructure for Administrative Systems in the Federal Government - Phase 1. The objective of this Phase is the creation of an electronic infrastructure which is focused on the support of common administrative and operational functions of Federal Government Departments. Figure 3.2. I illustrates the constituencies served in this Phase relative to the vision of an overall national information infrastructure. Specifically, the infrastructure supports inter- departmental applications and joins government as a whole with its suppliers. financial institutions and international trading partners. In this Phase, the public is not directly linked to the infrastructure. The constituencies affected include participating Federal Departments on a national basis (i.e. both Departmental head offices and regional offices), and commercial trading partners which participate in key common service functions. For example, the financial institutions as partners with the Government in increasing the level of electronic funds transfer. Functions provided in co-operation with existing federal initiatives will include: - Common government electronic directory services, - Access to, and support of common resource services (human resources, financial, materiel and information resources), - Common information management services, These functions will be provided on a physical infrastructure of communications and information technology and supported by a range of infrastructure management services. Figure 3.2.2 illustrates the interdependence of these functions in support of the user situated at the "tip of the iceberg". As with real icebergs, the mass of the supporting structure is hidden from view.
It is in the costs of maintaining and enhancing these supporting structures that a great deal of redundant cost is incurred (e.g. multiple networks, multiple network management systems, incompatible technologies which make sharing of data difficult and expensive).
To ensure equitable and open access to these "electronic highways", to keep electronic commerce moving securely and effectively, and to ensure that the "electronic highways" are kept in good repair and keep pace with the evolution of electronic traffic, an infrastructure management and services function is required. in effect, an "electronic highways department". Examples of these management functions include: - Architectural Design and Control - the definition and management of the overall architecture, selection of applicable standards, and the administration of compliance - in effect, the "electronic building codes". - Access Management Services - the responsibility to ensure consistent, quality access to the infrastructure capabilities to all entities requiring to attach to, or interconnect with, the infrastructure utility. A major function includes the publication of all standards and interface specifications to allow Canadian developers to build upon the infrastructure in providing new value added products and services. - Client Services - the establishment and support of relations between the infrastructure utility and the users of the utility at all levels including the public, the public sector and commercial business partners. - Security, integrity, privacy, authentication and accounting services - provision and publication of basic guidelines and enabling technology specifications which ensure acceptable levels of privacy and security as de-fined by the Crown. - Communications integration and management services - the provision, integration and management of the communications infrastructure at all levels as required, including LAN, WAN, MAN and integration of specific user environment with the infrastructure (e.g. all interface specifications will be published and a certification program made available to third parties). To increase the useability and effectiveness of the infrastructure, a number of common information management services are required. These are analogous to the "directory assistance" services offered on the telephone system, or the highway service centres which help travellers move along the nation's highways. For the electronic infrastructure, these services range from tangible information services, as outlined below, to the publication and administration of the various guidelines and regulations pertaining to the use of the infrastructure - the "electronic rules of the road". The more tangible information management services supported directly by the infrastructure include: - Directory services - the infrastructure equivalent to the telephone "yellow pages". - Data Warehouses - for the storage and retrieval of shared information resources. - Basic information appliances - electronic "tools" which assist a user in finding the required information in the huge volumes of data available through the infrastructure. - Basic electronic mail and user file services. - "On/Off ramps" to service applications. In addition, the infrastructure may provide services which are less tangible to the casual user but can be of great value to the Canadian information processing industry. These are services designed for developers of products and services which build upon the infrastructure and may use the infrastructure as a vehicle to deliver their products. Such services and utilities may include: - Automated software licensing and distribution capabilities. - Standard building blocks for remote diagnostics and installation. - Basic configuration management. - Basic electronic publishing capabilities. - Basic accounting and billing functions. - Standards and tools for automated training and user support. - An inventory of software and other content oriented "building blocks" (electronic publications) available from Canadian suppliers which conform to the infrastructure standards and can be integrated to form more complex suites of applications. 3.3 Expanding the Framework: A Common Infrastructure for Electronic Delivery of Government Services - Phase 2. The objective of this Phase is to provide a common infrastructure which supports the electronic delivery of Federal Programs to the public and the commercial private sector. in implementation, the objective is to evolve the capability and reach of the infrastructure created in Phase 1. Operationally, the objective is to evolve towards providing the public and the private sector with consistent ACCESS to government services. Figure 3.3.1 illustrates the evolution of the Phase 1 internal Government infrastructure to the Phase 2 level with expansion of the user base to include the public and an expanded base of commercial business partners.
Core infrastructure competencies and value added services: These are the products, services, capabilities and expertise which would form the core of an infrastructure utility - and hence, the core of the Federal/Private Sector joint venture. It should be noted that many of the products and services used in the delivery of the infrastructure could be procured competitively from third-party suppliers. Core competencies within the utility would include: - Client Services - the establishment and support of relations between the infrastructure utility and the users of the utility at all levels including the public, the public sector and commercial business partners. - Access Management Services - the responsibility to ensure consistent, quality access to the infrastructure capabilities to all entities requiring to attach to, or interconnect with the infrastructure utility. - Architectural Design and Control - the definition and management of the overall architecture and the administration of compliance. - Repository services and management - the physical storage, administration, and management of large information holdings. - Information processing services - the volume and shared compute resources required to support the Federal Program and common application suites supported on the Infrastructure (e.g. printing, common financial applications). - Information management capabilities - the application of standards, common indexing rules, retrospective electronic cataloging and other functions required to support the integration of a user environment with the infrastructure and the repository management functions. -Communications integration and management services - the provision, integration and management of the communications infrastructure at all levels as required including LAN, WAN, MAN and integration of user environment with the infrastructure (although all interface specifications will be published and a certification program available to third parties). - Point of service delivery support capability - the systems integration capabilities to support a range of point of service vehicles to the public, the public sector and commercial clients. These may include the support of a distribution capability and a variety of access devices (kiosk, TV, user intelligent electronic agents). This capability explicitly does not include the physical point-of-service devices (kiosk, TV) and also does not exclude the provision of similar capabilities by other parties through attachment to the infrastructure of their own devices (e.g. the integration of existing banking devices with the infrastructure backbone). - Application support capabilities - the support services, e.g. help-desk services, required to ensure effective user support for applications and other services provided through the infrastructure. - Systems Integration and Integration Management Capabilities - the capabilities to manage system integration projects implemented through third-party suppliers, and the capability to perform integration initiatives in critical communications, security, and other specific application areas as required. - Common Systems Services - the generic functions required to sustain the infrastructure, e.g.: - Security - Disaster Recovery - Systems and Network Management - Configuration Management - Software Distribution and License management. - Financial Commitment Vehicles. - Marketing and Sales - the marketing of infrastructure services to both the public and private sectors. - Customer technical support - the promotion and distribution of the infrastructure access, software development, integration and distribution standards and processes to the Canadian high technology community. - Corporate Management and Financing - the day to day management of the company and the raising and management of financing required to fund the initiative. The rationale behind the selection and retention of the core competencies, and the importance of retaining control over critical architectural and business practices within the infrastructure organization is based on the following: - Ensuring accessibility and consistency of service on a national basis. These are key in realizing the infrastructure's role as a national utility for The delivery of electronic commerce and specifically, as a vehicle for the delivery of government program services to the public. These will be provided through the Client Services and Access Management Services functions. - Providing the new value added industry with the necessary stable, contemporary, accessible and relevant utility platform on which their value added businesses are built. This is essential to ensure the development of the value added industry sector which will be build upon the architecture, standards and delivery capabilities of the infrastructure. Retaining centralized control ensures a managed architecture. This architecture can be based on technology independent standards rather than an implementation based on a "productecture" centred around a specific vendor's technology or offerings. This will be marked through the Architectural Design and Control function. - Ensuring a consistent and auditable level of security and integrity in the data and information entrusted to the infrastructure. The issues of data integrity and security are critical to the infrastructure. These issues have importance at several levels - operationally, politically and legally. - Lowering the implementation risks and increasing the overall manageability of the utility. This is a complex environment. The rate of technological change, coping with legacy systems, and coping with the politics of self interest and inertia (of which there will be a significant amount in a project of this scope) demand a focused and committed management team. - Ensuring the effective integration of legacy systems. The integration of legacy systems, data and applications will be a major function of the infrastructure. The ability to perform this integration and to manage systems integration projects delivered by third-party contractors, are required capabilities of the infrastructure organization. - Providing points of presence to the infrastructure where required to support Government and commercial operations. As a utility potentially providing support for a range of federal and other government programs, the infrastructure must provide points of access across the country. Specifically, since a major stimulus for electronic delivery of government programs is to service remote communities where direct presence cannot be financially justified, there will be an emphasis on "universality of access". The national utility model proposed addresses these issues of access. As a core capability, the management and control of this function will reside within the utility. implementation may be subcontracted on a local basis. Commercial value added services: In this model, the layer of third-party value-added products and services would be 100% open and available for competitive business. The focus of this layer is new and innovative business-to-business services which are built on top of the infrastructure utility. This is anticipated to be the major area of growth for Canadian companies. The value of this market segment is projected to be in the hundreds of millions of dollars annually. Examples of potential value added products and services include: - Information-based products such as data bases. Examples from government include Natural Resources and patents databases; and from the private sector, industrial and marketing research data bases. - Information retrieval and analysis applications. Examples may include artificial intelligence tools to identify and scan other information holdings based on a user query set. - Education and training products and services. - Health care and health information based products and services. - Electronic commerce applications for small business which are accessed through the infrastructure. - Sharable software building blocks based on the published infrastructure standards for software development and distribution. - Security, confidentiality and related technologies which have massive international export potential. - Content oriented products including infotainment, cultural and heritage related materials. - Enabling technologies related to electronic authorization of financial and other transactions. Competitively procured products and services which are used by the infrastructure: These are products and services which form an integral part of the infrastructure and which could be purchased from external vendors under an open and competitive tendering process. Since the infrastructure is not a manufacturer of equipment, most hardware and software components would be purchased from third-party vendors. In addition, many services required by the infrastructure organization would be sourced from third-party professional services companies. Examples of competitively procured pieces of the infrastructure include: a. Hardware. - Mainframe computers and other volume processing devices. - Data base servers. - Mass storage subsystems. - Personal computers and other workstation technology. - Security hardware such as smart card devices and other authentication devices. - Kiosk configurations. - Data communications devices such as bridges, routers and other network devices. - Gateway servers and other LAN-based server devices. b. Software, - Repository management software. - Operating system software (e.g. MVS/ESA, Unix, MS-DOS, Windows). - Network software (WAN, MAN, LAN). - Network management software. - Data base software. - Personal productivity and office automation software (e.g. word processors, spreadsheets). - Security software. c. Communications Bandwidth. - View bandwidth as a commodity. - Define the capacities, locations, and type of service required based on the ifrastructure network architecture (e.g. frame relay, ATM, or as appropriate) - Optimize the cost to the infrastructure through effective competitive procurement with emphasis on price for commodities, and service and availability where dealing with regional telephone systems (for local loops and support of rural or remote locations). An over-riding factor is the requirement for all communications bandwidth to be provided within the sovereign boundaries of Canada. This is required to satisfy the stringent requirements for privacy and other legislation precluding specific government data being transmitted outside the country. d. Professional Services. It is envisaged that a range of professional services will be procured by the infrastructure. These may include: - Generation of application requirements definitions. - Business consulting including process re-engineering and workfIow definitions. - Development of business cases. - Audit and accounting services. - Applications development services. - Systems integration services. - Maintenance and support services for specific applications. - Project management services. - Data conversion services. - Translation services. - Application conversion services. - Documentation services. Appendix B: A Phase Plan. A phased approach is proposed to move towards the overall vision for a national information utility. This phased approach identifies three overlapping phases as illustrated in Figure B.1. These Phases are: Phase 1: A Common Infrastructure for Administrative Systems for the Federal Government. Phase 2: A Common Infrastructure for Program Delivery. Phase 3: A National Electronic Utility. This three-phase strategy provides a pragmatic approach to the rnacro level objectives of the initiative. Specifically: - Significantly increasing productivity in the delivery of government services - i.e. providing more service for less dollars. - Increasing and enhancing the levels of service offered to the public - to keep pace with the "acceptable" levels of service offered in corresponding areas by the private sector, e.g. shop by phone, track and trace, 24-hour electronic banking service and the growing acceptance of "shop at home" through television. - Enhancing the management and administration of government. - Providing a leadership role in the stimulation of economic development, especially within the emerging information-based industry sector. The first two Phases emphasize the operational needs of the Federal Government and are the focus of this initiative. Phase 3, a national electronic utility, is anticipated to be a result of the evolution of the common government infrastructure from a vehicle for the interaction electronically between the government and Canadian citizens and business, to a more ubiquitous infrastructure enabling electronic interaction between all parties. This last phase reflects the catalyst effect of a government infrastructure initiative and may result in the desired multiplier effect of government expenditure creating new jobs in the emerging information-based economy.
The selection of these Phases for the creation of a common infrastructure recognizes a number of significant factors and challenges faced by the Federal Government in addressing these objectives. These factors include: - Accommodating the significant investments in legacy systems and processes. - Providing and supporting a family of common administrative support services across Federal Departments - with the objective of reducing the cost of government operations. - Accommodating the necessity for continuity in program delivery to the public as the underlying infrastructures are renewed. - Enabling the transition towards an electronic government through increasing the accessibility to electronic commerce and overall effectiveness of electronic interaction within and between departments (through common applications, data formats, and utilities such as electronic mail). - Providing innovative financing and organizational vehicles which overcome the hurdles of fiscal and expertise shortages faced in renewing the information infrastructures of the government. - Addressing the complexity and scale of infrastructure renewal in a climate of rapid and substantial change. The proposed Phase Plan provides a strategy to achieve the operational and business development goals identified above. Various aspects of the Plan address the above operational and fiscal challenges e.g.: - Phase 1 is targeted to produce significant cost reductions in administrative Functions through increased internal communications and reduction of duplicate investments in internal infrastructure elements (such as common resource services and common technology and communications infrastructure services). - Phase 2 is targeted at reducing the cost of electronic program delivery to the public by removing the justification for duplicate national infrastructures on a Department by Department basis. These cost savings are realized on two basic fronts: - Removing the need for major capital investment in electronic infrastructure on a department by department basis (as currently incurred by DND, RCT, ISP). - Removing the significant and growing burden of operating and maintenance costs associated with the running of these departmental infrastructures. - Phase 3 is targeted at stimulating the development of Canadian information products and services by leveraging the investment of the Government in a national infrastructure for delivering and. managing Federal Programs. This stimulation is anticipated to involve active promotion of the ACCESS Canada standards and interfaces as a foundation on which Canadian developers of new products and services can build. - A critical mass of real and tangible electronic commerce can be achieved through the consolidation of federal program and administrative infrastructure traffic acting as the catalyst to stimulate new commercial and public service activity in the private sector, and the potential integration with service delivery from other levels of government. This critical mass can create the operational and financial justification for major private sector infrastructure investment in Canada. - The phasing allows the building of the underlying infrastructure to be realistically justified on the needs of the government and in parallel give Canadian industry both the technological framework and the lead-time necessary to create a new generation of content-oriented value-added products and services. - The Phases are overlapped. For example, the process of reducing the cost of administrative systems (Phase I) is seen as an ongoing activity. In implementation, the capabilities of Phase 2 are built upon the capabilities generated during Phase I. Specifically. the communications and information management resources needed to support electronic program delivery to the public. will be derived from an expansion of the internal infrastructure capabilities produced during Phase I. The proposed infrastructure is intended to act as an integration tool between existing legacy infrastructures. Specifically, an architectural requirement of the proposed infrastructure is that it not only provide the foundation for the next generation of electronic commerce, but that it also provide links to the existing legacy systems. This allows accommodation the "succession planning" of these systems. It also offers the opportunity to introduce new common client services features (kiosk, single window) to legacy applications without the need for a complete reengineering of these applications. This can have significant benefit since the cost of reengineering can be in the hundreds of millions of dollars (e.g. the recent Income Securities Program redesign). The Phases are profiled in the sections below. Phase 1: A Common Infrastructure for Administrative System for the Federal Government The objective of this phase is the creation of an electronic infrastructure which is focused on the support of common administrative and operational functions of Federal Government Departments. The constituencies affected include participating Federal Departments on a national basis (i.e. both departmental head offices and regional offices), and commercial trading partners which participate in key common service functions. For example, the financial institutions as partners with the Government in increasing the level of electronic funds transfer. The functions provided would include: - Common government electronic directory services, - Access to, and support of common resource services (human resources, financial, materiel and information resources), Common information management services, These functions will be provided on a physical infrastructure of communications and information technology and supported by a range of infrastructure management services. Anticipated benefits of this phase include significant reductions in the cost of internal administration of Government. These savings are realized through the consolidation of and reduction in duplicate departmental infrastructures. Critical success factors include obtaining the commitment and support of program departments to adopt the common infrastructure. It is anticipated that it will take significant time and effort to migrate major departments where the department has integrated potentially common functions within their line-of-business application suite. Timeframes for this Phase are that the first iteration be in place by 1995/96 with a program of ongoing enhancement to increase both the functionality and the number of Federal departments participating. Phase 2: A Common Infrastructure for Program Delivery. The objective of this Phase is to provide a common infrastructure which supports the electronic delivery of federal programs to the public and the commercial private sector. In implementation, the objective is to evolve the capability and reach of the infrastructure created in Phase l. Operationally, the objective is to evolve towards providing the public and the private sector with a single, consistent ACCESS to government services. The expanded constituency will include the general public and an expanded range of Government trading partners. It is also anticipated that other levels of government may join the initiative at this stage. Examples of incremental functions provided by Phase 2 include: - Common public access interface for dissemination of program information. - The technical interfaces which allow the Federal Department's applications to interact with the common public access network. - Common program support functions such as "change of address". - Enhanced Phase I services including security, directory services and system management. The expanded physical infrastructure will encompass: - Kiosks and other public access devices (evolving into home delivery of program information). - A broader communications network expanding from the Federal departmental coverage of Phase I to a public accessible national network. Anticipated benefits include: - Improved quality of service to the public (rapid response to information requests, 24-hour convenient access, equitable access across all regions of Canada). - Reduced cost of program delivery (e.g. there is one shared network of public access kiosks rather than each individual program having its own kiosk, network, and way of interacting with the public). Phase 3: A National Information Systems Utility. Phase 3, expands the infrastructure created for the administration of government and for program delivery, into a national information systems utility. This national utility is anticipated to be a result of the evolution of the common Government infrastructure from a vehicle for the electronic interaction between the Government and Canadian citizens and businesses, to a more ubiquitous infrastructure enabling universal electronic interaction. Specifically, the availability of a vehicle (the infrastructure utility) which supports the interactive electronic delivery of government programs and services, will stimulate the creation of other commercial, third party service offerings which can also be distributed over the same infrastructure. This is the realization of the catalytic effect of Government infrastructure expenditure and investment to produce the desired multiplier effect in the private sector for the creation of new jobs in the emerging information-based economy. Appendix C: A Perspective on the Roles of Government and the Private Sector In a National Utility. This appendix takes a more extensive look at the impact of the issues identified in the main report on the roles of the various players in successfully creating a co-operative venture for an infrastructure. The players include: - The Government. - The Utility as an organization delivering the infrastructure capabilities. - The Private Sector. In addition, the role of policy as a major factor in the overall infrastructure environment, is examined. In the context of this discussion, Government means the Federal Government. This definition could be expanded at some later developmental stage to include the multiple levels of government (provincial, regional, municipal). Components of the Federal Government include: - The political/parliamentary component responsible for the setting of policy direction and priorities. - The bureaucracy responsible for supporting the development of effective and practical policy statements and in the translation of these policy directions into strategies and plans of action. - The bureaucracy effecting its responsibility to reflect the policy directives in the day-to-day practices of the public service (i.e. in this case as a user of the common infrastructure). - The regulatory bodies and their review process. - Publicly funded institutions which can be impacted by the implementation of the defined policies either indirectly (as users of the developed infrastructure), or directly (as Government funded research institutions contributing to the overall progress of the Government's industrial and human resource development strategies) The private sector consists of individual corporations and associations of corporations. There will be a number of unique challenges to be overcome in building linkages with the private sector to ensure their support in implementing a successful infrastructure initiative. These include: - Overcoming the structural realities of the Canadian communications and information technology industry (the large number of small, poorly managed and under-financed companies, and very small number of large companies). - The lack of Canadian investment for Canadian high technology companies (especially as it relates to investment in new and currently speculative market segments). - The role of the Canadian arms of multi-national corporations. - The traditional commercial paranoia exampled by companies trying to ensure that if they do not advance then no other company will either - rather than co-operating to build a bigger market. - The lack of a genuine and effective vehicle to foster active co-operation between the Government and the indigenous Canadian industry. Traditional trade associations may not reflect the real interests of indigenous Canadian industry. The association dependency on volunteer committee structures tends to exclude smaller companies which do have the excess of qualified resources to contribute on an ongoing basis to the activities of the associations. The net effect is the domination of associations by larger organizations. Since Canadian industry (with the exception of the telecommunications sector) consists primarily of smaller organizations, the role of these associations as representing Canadian industry may be called into question. The Role of Government, Government participation covers a number of fronts. These include providing leadership, developing legislation and policy, and direct support through active participation (rather than traditional hands-off-funding). it is suggested that the role of Government in Canada be more direct than in the U.S. This more direct role (partnership) would reflect the economic realities of being next door to the world's largest. most aggressive and entrepreneurial high technology industry. A role of Government is to work with Canadian industry to capitalize on this situation, rather than to try to compete head on. A national information systems utility could be a cornerstone in an effective Canadian industrial strategy. Providing Leadership. Leadership is an essential element to succeed in creating a common information systems and services infrastructure for Government. It becomes even more important if this infrastructure is to be developed into a national information systems utility serving all sectors of the economy and creating significant employment and fiscal growth in the process. The leadership role for Government :pans: - Leadership within the public service to adopt a common Infrastructure and the shared and common applications which arc built upon -it. - Leadership in developing active co-operation between the public and the private sector in adopting a higher level of electronic commerce - as users. - Leadership in stimulating co-operation and in overcoming parochialism at all levels, e.g. within and between federal departments. between federal and provincial organizations, between Government and the indigenous Canadian high technology sector, and between the various self interest groups within the industry itself (overcoming the intransigence of misguided self interest). - Leadership in the implementation of a common information infrastructure utility through: - Participation in the architectural definition process (including standards-based activities). - Setting the policy and regulatory framework. - Establishing a "charter of electronic rights and freedoms" for Canada (e.g. an omnibus Bill addressing purity, legality of electronic data, confidentiality, and other issues in a technology independent fashion). - Leadership for Canadian industrial development through: - Support of a common nucleus of production infrastructure implementation - i.e. the common government services infrastructure acting as the "seed crystal" to facilitate the inter- operation and inter-communication between the current and future crop of private sector networks (e.g. local cable, specialized industry networks, research networks). - Providing an environment which encourages financial investment in the Canadian industry by both the Canadian and international investment communities. This environment encompasses both financial incentives and a progressive regulatory framework. - Supporting research in foundation information technology through participation in international initiatives (with the U.S. which has the capital to do the expensive primary research). - Supporting the development and commercialization of technology innovation. The challenges to successful leadership within the Public Sector include: - Competition policy and the established procurement models. - Addressing the regulatory framework - especially those factors affecting confidentiality of personal data, security, and conflicts with the enabling legislation for specific programs (e.g. the Bank Act). - Working with program departments to enable them to move to the common infrastructure with a high degree of confidence. - Overcoming the entrenched organizational dynamics which perpetuate counterproductive behavior (i.e. the ongoing turf wars between competing interests and mandates). - Ensuring accessibility and affordability to all Canadians, governments and organizations regardless of geography. - Adopting progressive legislation to address privacy/security/confidentiality issues. - Linking investment in electronic information infrastructure with national industrial development policy. - Overcoming conflicting, obsolete, inter-jurisdictional issues (federal/provincial) for efficient and effective program delivery by electronic means (as appears to have been accomplished by the Lottery Corporations). - Setting copyright/ownership issues, e.g. who owns Government data and what can they do with it. - Resolving the policy issues surrounding a single personal identification number (which also crosses jurisdictional boundaries). - Promoting the legislative changes required to support electronic commerce, including changes to the Canada Evidence Act to accommodate electronic evidence. - Promoting policy changes required to capitalize on electronic commerce, e.g. direct deposit, cross referencing of program data among federal and provincial "entitlement" programs. Building the Foundation - the Catalyst Role The key component in acting as a catalyst lies in generating a critical mass of real infrastructure load and in creating demand for value added services. The catalyst role is to: - Support the creation of a national information infrastructure in part based on the delivery of government services using electronic commerce. Examples of this usage include: - A commitment to migrate delivery of common administrative services through the common infrastructure. - A commitment to increase the level of electronic commerce between the government and the private sector. - A commitment to increase the level of electronic commerce between the government and the public (for example, direct deposit). - To leverage this usage in terms of buying the time for content and information appliance industries to grow up around the infrastructure and justify continued and enhanced investment. - To sustain a made-in-Canada solution for the ongoing development of an information economy. Stimulating Economic Growth - Building on the Foundation. This is the cage required between government infrastructure investment and its industrial development role. It may encompass several factors: - Investment in research and development efforts. - Focus of development through usage, e.g. government as a model user. - Providing a common and accessible infrastructure with a proven and published architecture on which Canadian industry can build. The Partnership Role of Government This may be the innovative component of the initiative which is the hardest to realize. Fulfilling the Role There are a number of significant challenges faced by the Government in fulfilling these new roles. As highlighted in the JFK summary report on Service Excellence, "The primary obstacles to IT-based service delivery are organizational and political. not technological". Key factors were identified as: - Constitutionally embedded reluctance to authorize government innovations (the checks and balances which constrain Government) - also read, the high level of visibility associated with the activities of the Government and the justifiable (on the part of the Ministers and senior bureaucrats) reluctance to adopt any unproven and potentially embarrassing initiative. - Pressures associated with Government cutbacks. - The need to coordinate and share data across bureaucratic boundaries - the turf battles. This will be a major issue in the efforts to construct a common government infrastructure: - Executives responsible for the delivery of major programs fear an interruption in service delivery (as potentially encountered when moving to a new IT environment and set of business process). - In an era of downsizing, any intrusion on someone's turf is not welcomed. - Senior executives tend not to give up control over a critical part of their operation without a high degree of confidence in the service provider. - There is "history" within departmental organizations which inhibit a corporate view being adopted. Within the Federal Government today, several other factors have to be considered when proposing a common infrastructure initiative: - The current round of downsizing and restructuring has had a significant impact on the ability of the Public Service to tackle corporate wide initiatives. - The corporate culture within the Federal Government is towards "purchasing" not "partnering". (A condition mirrored by many of the private sector who are culturally attuned to "selling" rather than partnering.) - A first priority of senior Government management is delivery of their programs to the public - the pension checks have to be delivered on time, taxes have to be collected. The business of government cannot shut down while the "processes" of government are re-tooled. - Government operates in a "fish bowl" of public scrutiny. .