Market Research Project on Customer Preference in Travel in India - PowerPoint by ekc16911


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   Impact on Service Delivery

                            Subhash Bhatnagar
              Indian Institute of Management, Ahmedabad
Advisor e-government, Information Solutions Group (Informatics Program)
                       World Bank, Washinton DC
                        work in progress-do not quote
       Presentation Structure
• Methodology for Measuring Impact on
  Service Delivery
• Results from a Study of 5 projects
  – Study objectives
  – Projects covered in the study
  – Analysis of Results
• Are investments in eGovernment
• Lessons for future projects
                 work in progress-do not quote
           Measurement Framework
Stakeholders             Key Dimension of Impact

Client                   Economic (Direct & Indirect)
                         Governance (Corruption, Accountability, Transparency,
                         Quality of Service (Decency, Fairness, Convenience, etc.)
                         Over all satisfaction

Agency                   Economic (Direct & Indirect)
(Including Partners in   Governance (Corruption, Accountability, Transparency,
Implementation)          Participation)
                         Performance on Key Non-economic Objectives
                         Process Improvements
                         Work life of employees

Society                  Desirability of investments in e-Government
Other Departments        Impact on vulnerable groups
Government as a          Image of Government (Efficiency, Corruption, Accountability,
Whole                    Transparency, Participation, Responsiveness)
Civil Society            Impact on development Goals
     Methodology for Assessment
• Select mature, wide scope and scale projects of e-delivery of
• Collect data through structured survey from clients, employees,
  supervisors using counterfactuals ( for old non computerized
  delivery and new e-delivery system)
• Customize survey instrument to each project, adapt in local
• Data can be collected through Internet survey, face to face
  interviews and focus groups
• Use professional market research agencies with trained
  investigators for face to face interviews
• Determine sample frame and size so that results can be
  extrapolated to the entire population (often 300 clients may be
  sufficient). Select respondents randomly from locations
  stratified by activity levels and remoteness
• Collect data on investments, operating costs, activity levels,
  revenues, employee strength from agencies.
• Develop a case study-organizational context, process reform,
  change management.
     Data be Collected to Evaluate
• Project context: basic information on the project and its context
• Inputs (technology, human capital, financial resources);
• Process outcome (reengineered processes, shortened cycle
  time, improved access to data and analysis, flexibility in
• Customer results (service coverage, timeliness and
  responsiveness, service quality and convenience of access);
• Agency outcomes (transparency and accountability, less
  corruption, administrative efficiency, revenue growth and cost
  reduction) and
• Strategic outcomes (economic growth, poverty reduction and
  achievement of MDGs).
• Organizational processes: institutional arrangements,
  organizational structure, and other reform initiatives of the
  Government that might have influenced the outcome for the ICT
  project.              work in progress-do not quote
  Projects of e-delivery of Services
• Issue of land titles in Karnataka (Bhoomi): 180 Kiosks,
  Launched February 2001
• Property registration in Karnataka (Kaveri): 230 offices
  Launched March 2003
• Property Registration in Andhra Pradesh: AP 400
  offices. Launched November 1998
• eSeva center in Andhra Pradesh: 250 locations in 190
  towns, Used monthly by 3.5 million citizens August 01
• Ahmedabad Municipal Corporation (AMC): 16 Civic
  Service Centers September 2002
• e-Procurement in Chile (Comprasnet)
• Income Tax on-line in Chile
                Analysis of Results
   Next 8 slides present average scores/values of the difference
   between computerized and manual systems as reported by
   240 respondents per project
1. Difference between computerized and manual systems reported by
   users - costs, governance, service quality and overall preference
2. Estimated savings in costs (trips, travel cost, bribes, wait time)
   estimated for the entire population of users
3. Projects in descending order of improvement in Composite Scores
   based on a weighted score on 18 common attributes for each
4. Descending order of post computerization composite score
5. Top four attributes desired in each application
6. Impact on agency: Investment, operating expenses, transaction
   volume, revenue collected
7. Economic viability from agency perspective
8. Attitude of 1200 respondents on the basis of their experience of
   using different eGovernment applications

                         work in progress-do not quote
Overall Improvements Reported by Users
                             BHOOMI KAVER                  CARD     E-     AMC
                                      I                            SEVA
Total Travel Cost per         (81.381)        116.68       39.63    9.34   21.85
transactıon (Rs.)
Number of trips                    0.47          1.20       1.38    0.29    0.65
Wage Loss (Rs.)                 (39.22)      120.55        28.46   15.63   36.84
Waiting Time (Minutes)            41.21        62.91       96.24   18.50   16.16
Governance Quality - 5            0.764          0.21      0.190   0.608   0.794
point scale
Percentage paying bribes          33.09        12.71        4.31    0.40    2.51
Service Quality- 5 point           0.95          0.32       0.48    0.95    0.70
Error Rate                         0.77          3.80       0.86    1.58    0.42
Preference for                    79.34        98.31       96.98   96.84   97.49
Computerization (%)        work in progress-do not quote
     Savings in Cost to Customers
           Estimates for entire client population
Projects             Travel
                Million        Wage                        Waiti   Bribes
             Transactions       Loss                        ng      (Rs.
                     Saving     (Rs.                       Time    Million)
                      (Rs.     Million)                   (Hour
                     Million)                               s)
BHOOMI   RTC-11.97 (1,041.24) (470.28)                    (0.26)    305.18
KAVERI          2.47   220.48 297.92                       2.55    (118.79)
CARD            1.03     69.91   29.39                     1.67     (96.27)
e-SEVA              37.02         274.10           578.56 11.41        0.00
AMC                  0.71          15.03            26.27 0.18         3.45
                        work in progress-do not quote
  Projects: Descending Order Of
Improvement in Composite Scores
Project       Manual                         Computer          Differenc
          Averag        S.E.          Average       S.E.       Average
BHOOMI      2.86           0.07              4.46       0.04       1.60
e-SEVA      3.39           0.04              4.66       0.03       1.27
AMC         3.37           0.04              4.12       0.06       0.75
KAVERI      3.35           0.06              3.90       0.05       0.55
CARD        3.78           0.03              3.93       0.03       0.15

                   work in progress-do not quote
   Descending Order Of Post
Computerization Composite Score
Project       Manual                        Computer         Difference
          Average        S.E.   Average              S.E.     Average
e-SEVA       3.39          0.04     4.66              0.03        1.27
BHOOMI       2.86          0.07     4.46              0.04        1.60
AMC          3.37            0.04             4.12    0.06        0.75
CARD         3.78            0.03             3.93    0.03        0.15
KAVERI       3.35            0.06             3.90    0.05        0.55

                    work in progress-do not quote
   Top Four Attributes Desired in
        the Application
BHOOMI   Error free     No delay in           Less waiting   Fewer visits
         transaction    transaction           time
KAVERI   Less           Greater               Error free     Less waiting
         corruption     transparency          transaction    time
CARD     Less time      Less waiting          Less           Fair treatment
         and effort     time                  corruption
e-SEVA   Less time      Less waiting          Convenient    Fair treatment
         and effort     time                  time schedule
AMC      Less time      Less                  Greater        Less cost
         and effort     corruption            transparency

                       work in progress-do not quote
                       Impact on Agency
                                 BHOOMI       KAVERI              CARD     e-SEVA   AMC CIVIC
Total Project Investment (Rs.     216.35         400.00           300.00 600.00        250.00
Operating Expenses                159.32         111.13            64.50 168.90         19.20
Annual Transactions (million)      13.00            2.47            1.03    37.02        0.71
Clients Served (million)             7.62           1.33            0.33    15.30        0.29
Tax Revenue in 2005-06 for        N.A.       19,245.07       17,282.68      N.A.     1,974.26
Computerized (Rs. million)
Tax Revenue in Last Year of       N.A.         9,033.16       4,765.27      N.A.       651.36
Manual (Rs. million)
Growth Rate in Tax Revenue        N.A.             28.68           23.95    N.A.        44.72
for Computerized
Transaction Fees in 2005-06       215.70       2,626.95       1,130.87 203.59           53.32
for Computerized (Rs. million)
Transaction Fees in Last Year     135.10       1,890.46           300.18    42.01       32.86
of Manual (Rs. million)
Growth Rate in Transaction          26.36          11.59           24.74 120.15         17.51
Fees for Computerized             work in progress-do not quote
     Economic Viability of Projects
         Agency Perspective
                   Yearly Operating Expense Investment per Cumulative
                          per Transaction      Transactions for 4 years
AMC Civic Center                            12.25                  5.61
CARD                                        44.97                45.18
e-Seva                                      62.47                95.94
Bhoomi                                        1.56                 1.61
KAVERI                                      26.92               109.42

                         work in progress-do not quote
                             Attitude to e-Government
The Knowledge Society                                                      Mean    S.E.
E gov makes an impact on the knowledge of society                           4.03   0.02
E gov makes an impact on the literacy level of society                      3.97   0.02
Improvement in Governance
Enhances citizens convenience in availing government services               4.14   0.02
Reduces corruption in delivery of public services                           3.98   0.03
Increases accountability & transparency of government                       4.03   0.02
E gov has helped to improve the image of government                         4.12   0.02
More investment in e-Governance
Government should make more investment on E gov                             4.12   0.02
More govt department/ public agencies should be computerised                4.13   0.02
Computerisation of government departments is a waste of resources           3.85   0.03
Investments in Development Schemes versus e-Government
Money spent in e gov should be used for other government activities         2.96   0.03
Building schools, roads, dispensaries is more useful than e gov projects    3.22   0.03
Digital Inclusion
E gov services put the poor at disadvantage                                 3.73   0.03
E gov services benefit only the rich and influential                        3.74   0.03
E gov services benefit only the urban people                                3.50   0.03
Rural citizens benefit greatly from e-Government services not quote
                                         work in progress-do                3.30   0.03
Rural and urban poverty level have changed                                  3.22   0.03
• Overall Impact
  – Significant positive impact on cost of accessing service
  – Variability across different service centers of a project
  – Strong preference for e-Government over manual systems even though
    there is large variation across projects on composite scores.
  – Assessment of five projects define a useful BENCHMARK
• Reduced corruption-outcome is mixed and can be fragile
  – Any type of system break down leads to corruption
  – Private operators also exhibit rent seeking behavior given an opportunity
• For most projects economic viability can be ensured through
  acceptable service fees (costs are low and transaction volumes
  are high in India)
• Small improvements in efficiency can trigger major positive
  change in perception about quality of governance.
• Strong endorsement of e-Government but indirect preference for
  private participation

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