Speech by Mr. Stephen Mak, Acting Director of Information Technology Services at the "Delivering E-government Excellence Seminar"
13 - 03 - 2003

Mr Bhoovarahan, Mr Marks, Colleagues, Ladies and Gentlemen,

Good morning!

I am very pleased to join you at this event aptly titled "Delivering E-government Excellence Seminar". You have a rich agenda this morning, which the organisers have carefully couched in four important and challenging questions. I would like to share with you how I interpret these questions in the context of what we are doing in the Government and my department in particular. There are of course no absolute answers, but I'm sure at the end of today's event you as a group would have contributed a lot of insight to and benefited from answering these questions, whether you are a provider or user of our e-government services.

First, it would be useful to take stock of how we are fairing in implementing our E-government initiatives. When our E-government strategy was formally launched in May 2001 in the context of the Digital 21 Strategy to position Hong Kong as a leading e-business community, we were already on a strong footing in terms of infrastructure and legal framework to support electronic transactions. Over the past two years, through the concerted efforts of the E-government Coordination Office, E-business Coordinators and colleagues in various bureaux and departments, we have made substantial progress in our E-government programme. A number of significant moves are also planned for the coming year. Let me highlight a few here.

By the end of 2002, we have already provided some 81% of public services amenable to the electronic mode of delivery with an e-option. We are now on good track and we are confident to reach our target of 90% by the end of this year.

Last year, our flagship Electronic Service Delivery (ESD) programme has achieved a 40% increase in monthly transaction volume, with the ESD web site reaching some 2 million hits a day. The ESD is now the channel for over 140 kinds of on-line public services from over 40 departments and agencies. Over 2.9 million transactions have been conducted via the ESD since its launch. But we are not complacent. We will continue to extend the scope, improve service quality and drive its usage further.

Last November, we launched the Interoperability Framework (IF) which contains the technical and data specifications that facilitate the seamless integration and interconnection of government applications and their public interfaces. We have formed an XML Coordination Group comprising XML adopters within the Government and experts from the private sector to help develop a strategy for more effective use of XML in the Government. Some departments are actively taking part in the ebXML initiative to facilitate their development of new e-government transactions and messages with the general public. These initiatives not only represent the adoption of innovative technologies, but also signify Government's commitment to streamlining business processes and realising the full potential of collaborative working.

In the area of trade and logistics, we are actively helping the relevant departments to take part in developing the Digital Trade and Transportation Network (DTTN) to drive e-commerce to improve our competitiveness. We will also develop a multi-modal cargo clearance system for road transports. All these aim to support Hong Kong as a key logistics hub between the Mainland and the rest of the world.

Separately, we are making good progress in the development of the Multi-Application Smart Identity Card (MASC) programme. When the smart ID card is rolled-out progressively in the middle of this year, we expect further impetus to the community¡¦s adoption of e-options of government services. We believe the card will be conducive to a lot of new and innovative uses in e-transactions that the public and private sectors can consider.

We have also embarked on a number of joined-up E-government initiatives. These include a study on an Integrated Criminal Justice System linking up departments involved the arrest of suspects, through the identification, prosecution, trial, correctional and rehabilitation processes leading to the ultimate release of the convicted; an e-option for citizens to notify their address change to a large number of government departments using a single, online interface; and studies on the setting up of thematic information and transaction portals for business, property, and licensing operations respectively. To make sure that these various initiatives are able to share common resources as much as practicable, we are also looking at the necessary enhancements to our IT infrastructure to support them.

I could go on. But I would now turn to another important question - our ability to deliver e-options sooner and with existing resources. As you would imagine, the question has already been asked in the context of the preparations for our new budget. To deliver more with the same or even less resources, we have been rigorously applying the 3Rs - re-prioritise, re-organise, re-engineer - and the one M - making use of market capabilities.

Last year, we launched an important government-wide initiative to establish more IT Management Units (ITMUs) in bureaux and departments. The ITMUs will lead the e-business transformation through business process re-engineering and effective use of IT. As of today, 34 bureaux and departments have already established their ITMUs and there are firm plans for more. The ITMUs in turn would adopt our ongoing policy of aggressive outsourcing of IT projects where applicable. To facilitate this, we have also put in place bulk contracts or standing offer agreements with approved contractors for the supply of professional services and the full range of computer equipment and software. Therefore, while maintaining our momentum for E-government development, we do make use of resources and expertise from the market while bearing in mind the need to reduce the size of the civil service. We project that, by the end of this financial year, we would have outsourced some 83% of our IT projects by number and 87% by value.

The last point I would like to cover is highly relevant to government bureaux and departments who are faced with budget cuts on the one hand and having to deliver value-adding e-options on the other. So the question of understanding their capital needs to buy exactly what they need, when they need it has become very important. As if this challenge is not enough, departments are also expected to contain or even reduce their recurrent expenditure on IT. Despite this, it is gratifying to see that departments continue to look to IT to help them deliver better services and achieve efficiency savings. All indications are that the numbers and sizes of IT projects planned for the coming year have not dropped. Having said that, overall budget constraints have already prompted us to think laterally and work with suppliers in the IT industry to develop pricing and charging models that will enable government departments to continue delivering effective e-services at affordable costs. In doing so, we will of course have to ensure that all sourcing options are compatible with Government's procurement principles and procedures.

As the morning unfolds, I'm sure you will hear a lot more from our expert speakers and find your own answers to these questions. I thank the organisers for giving me this opportunity to share my thoughts with you and wish the seminar every success.

Thank you.

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