e-Readiness analysis for Economic and Social Opportunities: A perspective for Systems
Development in e-Government
Rembrandt Klopper1 and Sam Lubbe2
1 School of IS&T, University of KwaZulu-Natal, Durban, 4000, South Africa
2 School of Computing, UNISA, P O Box 392, Muckleneukrant, 0003, South Africa
rklopper@gmail.com
lubbesi@unisa.ac.za
“We are all dead men on leave” – Eugene Levine.
Abstract
During the last decade leaders in government, business, and social organizations worldwide have
considered how best to harness the power of Information and Communication Technology (ICT) for
systems development. Experts have pointed out that in order for organisations to put ICT to effective
use, they must first be "e-Ready" in terms of ICT infrastructure, the accessibility of ICT, the legal and
regulatory framework, computer skills and above all, end users’ attitudes towards electronic
information and communication technologies. Managers in Government and non-governmental
organisations (NGO’s) have been urged to use e-Readiness assessment to measure and plan for ICT
integration, focus efforts from within, and identify areas that can be used during systems
development. Several e-Readiness initiatives have been launched to help organisations and countries
in this respect, and numerous e-Readiness assessment tools have been created and used by
different groups, each tool looking at various aspects of ICT, society, and the economy (Bridges.org,
2005). The underlying focus of the study was to look at the potential of being e-Ready in conjunction
with the social and economic success that the government can achieve in sustaining ICT initiatives.
e-Readiness analysis includes a comparative analysis of the economic and social statistics of South
Africa supported by the statistical calculations of the data collected by means of a questionnaire. The
researchers agree with the observation of the International Telecommunication Union (2003) that to
measure the ICT picture in full, new multi-stakeholder partnerships will be required, involving not only
the statistical agencies that are traditionally responsible for conducting surveys, but also policymakers, the private sector, civil society, multilateral organisations and others involved in the ICT
arena. The potential of being e-Ready in conjunction with the social and economic success that the
government can achieve in sustaining ICT initiatives seems to be a difficult but a worthwhile
achievement.
Keywords
e-Government, e-Readiness, ICTs, Internet, NGO’s, systems development
1. Introduction
Gillis and Mitchell (2002) explain that proper ICT development can be framed and applied as a tool in
reducing poverty, extending health services, and expanding educational opportunities. ICT has
therefore been identified as a key enabler in the achievement of regional and rural success,
particularly in terms of economic and business development. (Information Technology Group, 2000).
CSPP (2000) describes this as the Networked World, which entails a transformation in the nature of
economies, societies and governments, as well as interpersonal and international relations
(Bridges.org, 2001).
e-Readiness is generally defined as the degree to which a society has been prepared to participate in
the local and global digital economy with the underlying concept that the digital economy can help to
build a better society. The Researchers conclude that e-Readiness is generally defined as the degree
to which Government is prepared to participate in this so-called Networked World (Information
Technology Group, 2000). Docktor (2002) argues that an organisation needs to be e-Ready so that
they can put ICT to effective use, in terms of infrastructure, the accessibility of ICT to the population,
and the effect of the legal and regulatory framework on ICT use. Depending upon the objective for
assessment, an attribute is chosen and indicators under the same worked out for the assessment.
2. South African Perspective
The ebusinessforum (2005) noted the following statistics of South Africa. South Africa has a
population (m) of 46.8; Working population (m) of 30.8; Nominal GDP US$237.6bn, US$522.8bn (at
PPP); GDP per head US$ 5,080.0, US$11,170.0 (at PPP), Inflation at 4.3%; Average Wage (monthly)
US$ 1,070; National Corporate Tax Rate 30%; Indirect tax 14% (VAT) and Currency is the Rand.
South Africa’s 2004 Connectivity Statistics were: Number of telephone main lines (per 100 people) 9.1; Number of mobile subscribers (per 100 people) - 39.9; Number of Internet users (per 100 people)
- 8.1; and Number of personal computers (stock per 1,000 population) – 109.
The Digital Access Index (DAI) of South Africa is an index value of 0.45 and an index ranking of 78.
The index measures the overall ability of individuals in a country to develop, access and use ICTs.
The DAI embraces eight indicators grouped into five categories: infrastructure (0.23), affordability
(0.85), knowledge (0.83), quality (0.26) and usage (0.08).
Bridges.org (2003a) conclude that there is evidence of growth in the e-Commerce sector, notably in
South Africa, which is forecast to generate $ 0.5 billion worth of business in 2002 and to grow to $ 6.1
billion by 2006. However, they conclude de that if this level of growth of Africa's share of global eCommerce in 2006 would only be 0.05% of the world's total. Bridges.org (2003a) states that South
Africa, have already enacted legislation designed to facilitate the growth of e-Commerce, and all have
high rates of fixed and mobile teledensity. The Economist Intelligence Unit (2004) states that Internet
services have been modest in South Africa, at 7% of the population due to the high cost and
inadequate coverage of high-speed connections.
3. e-Readiness Policies, Initiatives and Strategies
Bridges.org (2003a) notes that the framework for the analysis of e-Readiness policy issues first
presented in the World Economic Forum-SADC report has been the basis for examining key issues
with an African perspective and drawing comparisons between NEPAD countries. In addition, the
framework helps stakeholders to frame a dialogue on issues that apply to groups of countries at
comparative levels, so they can learn from relevant experience and best practice.
Bridges.org (2001) deduces two lessons from comparing assessment models: First, the chosen eReadiness assessment tool must fit the user's goal. The second lesson is that there is a wide range of
e-Readiness assessment models available, but each has limitations. They conclude that the ready-touse tools are either limited in scope or lack detailed description on how to use the tool in practice.
2
4. Research Questions
The following are Research Questions that the researchers will use in this study:
1.
Can ICT develop/stimulate e-readiness?
2.
Do KwaZulu-Natal organisations have the necessary development mentality to
provide such ICT Initiatives to support e-Readiness?
3.
What are the benefits of e-Readiness or being e-Ready for South African
organisations (in the province of KwaZulu-Natal)?
5. Research Methodology
The Target Population who participated in this study were the managers of Provincial Government in
rural KwaZulu-Natal, South Africa. The population size was 63. The questionnaire that the
researchers formulated consists of three parts:

Part 1: Asks permission to use responses for academic research.

Part 2: Asks general personal particulars like age, gender and home language.

Part 3: Asks about your understanding of e-Readiness and measures capacity of being eReady, by assessing the following attributes of e-Readiness: Network Access, Networked
Learning, Networked Society, Networked Economy and Network Policy.
The data collected from the Questionnaire were entered into XLStat where this data were analyzed
and computed in forms of tables, graphs and charts. There will be a comparative data analysis
between indices of economic statistics obtained.
6. Data Analysis
35
30
25
Respondents
African
20
White
15
Indian
10
Coloured
5
Asian
0
African
Indian
Asian
Respondent Race
Figure 2: Respondents’ Race
The census included 63 managers from KwaZulu-Natal (KZN). Figure 2 illustrates the racial
connotation of the respective respondents (this has no meaning towards racial discrimination).
3
Respondents; this was due to the small sample being taken and the lack of time. According to
Maplecroft.Net (2005), South Africa has a population of 46.9 million, with the following groups – Black
(75.2%), White (13.6%), Coloured (8.6%) and Indian (2.6%).
6.1 Respondents Understanding of E-Readiness
Twenty one (33%) of the respondents stated that they understand the meaning of e-Readiness or
being. According to the ITU (2004) DAI – South Africa has an adult literacy rate of 86 % and a
Knowledge index of 0.83. This questions the awareness of such an emerging topic about being eReady or the knowledge of the benefits of being e-Ready in relation to ICT initiatives. The knowledge
level of a country has an impact on the ability to use technology (ITU, 2003).
6.2 Using ANOVA to analyze the Respondents Understanding of e-Readiness or being e-ready
In this set of data, since the calculated F = 0.64 is less than the tabled F (Fcrit = 9.55), the null
hypothesis is accepted that the respondents’ do not understand the meaning of e-Readiness or being
e-Ready is all-dependent on those that do. However, the alternate hypothesis is that on average a lot
of respondents do not understand the meaning of e-Readiness or being e-Ready is not independent
on the number of respondents that do (Leedy & Ormrod, 2005).
Table 1: ANOVA – Understanding of e-Readiness
6.3 Participation of Networked Learning
Of 63 respondents – 35 (56%) noted that they are provided with the knowledge and right tools. Fortyone (65%) of the respondents use the facilities available to them often. Although, managers have
been used in this research study due to their job the majority of the respondents - 39 (62%) used an
Online Learning System (OLS) and 12 (19%) conducted Online-tutorials and technical training
programs. Although 22 (35%) of the respondents never use the facilities available to them to conduct
learning, without an educated society, no community can fully participate in the Networked World
(Information Technology Group, 2000).
4
Those that felt that their LANs were not available to them to use, preferred to use the Internet (based
on Internet Connection Speed) at times most respondents used the Internet. From those 48 (76%)
respondents that marked that computers in their LAN was always available to them – 21 (44%) use
the Internet in the morning, 8 (16%) use the Internet in the afternoon. Sixty (95%) respondents noted
that the Internet Services in terms of quality, reliability and availability were efficient.
The results yielded a perfect correlation and the entries on the diagonal of the correlation output table
are all greater then 0.05 (Alpha). The hypothesis is therefore rejected indicating that time chosen by
the respondents to use the Internet affects the availability of computers.
Table 2: Correlation-analysis of the availability of computers based on time chosen to use the Internet
6.4 Participation in the Networked Society
Table 3: Different activities that the respondents conduct with a computer
WORK
RESEARCH
GAMES
MOVIES
MUSIC
E-MAIL
BROWSING OF WEBSITES
41 %
56 %
18 %
3%
5%
40 %
13 %
LOOKING FOR JOBS
24 %
The Information Technology Group (2000) notes that e-Readiness depends upon the community’s
incorporation of ICTs into the foundation of its activities in order to make the most of the benefits
available. Sixty-three (100 %) of the respondents use a computer everyday. According to the ITU
(2004) DAI, South Africa has a Computer Usage Index of 0.08 that is low (Information Technology
Group, 2000). The researchers note that apart from research (56%), work (41%) and e-Mail (40%)
most of the respondents spend their time on a computer looking for other jobs (24%). The different
uses could be a good enabler to help disadvantaged individuals.
According to the ebusinessforum (2005), the number of personal computers (stock per 1,000
population) is 109; while according to ITU (2004), the number of PCs per 100 inhabitants in South
Africa is 8.3. Table 5 illustrates personal computer ownership at home depending on whether the
respondent is from a rural or urban area which might indicate that the sample’s profile is different from
a normal one.
5
6.5 t-Test to analyse ownership of Personal Computer (PC)
Table 4: t-test - Ownership of Personal Computer (PC)
The t-statistic is 0.70. A two-tail test was used since the researchers were comparing those
respondents that owned a PC and those that did not own a PC living in both rural and urban areas.
The p-value of the observed statistic is therefore 0.61. Since this value is greater than 0.05, it
indicates that on average, respondents from urban areas have a higher rate of PC ownership as
compared to respondents living in rural areas.
According to the ITU (2004) DAI, South Africa has an Affordability Index of 0.85. From the 63
respondents –1 used the Local Library, 20 (32%) used the Internet Café, 15 (24 %) used the Work
and the majority (42%) respondents used a Computer Lab as alternative place to access a computer.
The ITU (2003) note that most developing nations tend to have data on the “older” ICTs, while most
developed nations focus on the newer ones. The biggest stumbling block to penetration of these ICTs
in the lowest income nations appears to be electricity.
41
36
Internet Services Usage
Very Often
Internet Services Usage
Often
20
16
11
Internet
Services
Usage
Device
Usage
Never
Never
Very
Often
Often
2
Very
Often
Often
45
40
35
30
25
Respondents
20
15
10
5
0
Internet Services Usage
Never
Device Usage Very
Often
Device Usage Often
Device Usage Never
Figure 2: Internet Services and Information Device Usage
6
Of the 63 respondents, 52 (82 %) use the Internet Services that are available to them and sixty-one
(97 %) of those respondents use information devices.
Table 5: Belief that the use of ICT is integrated into everyday life
ATION OF ICT INTO
EVERYDAY LIFE
Totally Integrated
29 (46 %)
Partly Integrated 26
(41%)
Not Integrated
8 (13 %)
OWN A PC
USE INTERNET
SERVICES
USE INFORMATION
DEVICES
26 (90 %)
26 (90 %)
29 (100%)
19 (73 %)
21 (81%)
25 (96 %)
3 (38 %)
5 (63 %)
7 (88 %)
Fifty five respondents – 29 (87%) believe that the use of ICTs has been integrated into their
everyday life. Of those respondents that believe that the use of ICTs has not been integrated at all
into their everyday life – 4 (50%) respondents are from an urban area and the other 4 (50%) are from
a rural area.
7. Using ANOVA to analyze use of ICTs and integration of ICTs into everyday life
The null hypothesis is that the use of ICTs is all-dependent on whether the respondents believe or are
aware that the use of ICTs is integrated into their everyday life. However, the alternate hypothesis is
that the use of ICTs is not independent on whether the respondents believe or are aware that the use
of ICTs is integrated into their everyday life. In this set of data, since the calculated F = 0.11 is less
than the tabled F, Fcrit = 5.14, therefore we accept the above null hypothesis.
Table 6: ANOVA - use of ICTs and integration of ICTs into everyday life
8. Understanding and Participation of Networked Economy
When the researchers asked the respondents whether they believe there is a thriving job market for
ICT-professionals – 52 (83 %) of the respondents marked yes. Access to ICTs in Business, Education
7
and Government is important for development of the Information Society and e-Readiness. IT in these
sectors boosts efficiency and transparency, provides opportunities for the public and private sector
and for individuals in a society to interact online, and offers access for those who do not have ICT
access at home (ITU, 2003). From the 31 (49%) of the respondents that are female – 28 (90%)
believe that there is a thriving job market for ICT-professionals, while 3 (10%) do not believe that there
is a thriving job market for ICT-professionals.
Compared to the rest of the respondents – 32 (51%) that are male – 24 (75%) of the male
respondents believe that there is thriving job market for ICT-professionals, while 8 (25%) do not
believe that there is a thriving job market for ICT-professionals. From the above results, the
researchers note that ICT’s do not have a reducing gender inequality - there is no belief that ICT’s
have a reducing influence on gender inequality.
7. Using Covariance to analyze Respondents’ Gender in relation to belief of thriving job market
for ICT-professionals
Table 7: Covariance analysis of the respondents’ gender in relation to belief of a thriving job market
for ICT-professionals
Table 7 shows the covariance between each pair of measurement variables that is the respondents
who are female and believe that there is a thriving job market for ICT professionals; and respondents
who are male and also believe that there is a thriving job market for ICT professionals. The difference
between covariance and correlation is that correlation is scaled to lie between -1 and +1 inclusive
whilst covariances are not scaled. Both the entries on the diagonal of the covariance output table are
greater than 0.05 (Alpha) which means that the hypothesis is rejected that the belief in a thriving job
market is related to the respondents’ gender – whether the belief differs depending on whether the
respondents is female or male.
8. t-Test to analyse Conducting of online-transactions
Table 8: t-test – Conducting of online transactions
8
The mean and variance are given in the first three rows of Table 8. The fourth row gives the estimated
variance calculated from both samples. The observed value of the t statistic is -2.93, this is negative
because the number of respondents that conduct online transactions are lower than the number of
respondents that never conduct online transactions. The two-tailed p-value is 0.099, and so we
cannot conclude that there is a significant difference in the number of respondents that conduct online
transactions depending on whether the respondent is employed or unemployed. In order for the
Number of Respondents
difference to be significant, the magnitude of the t statistic would have to be 4.303.
20
18
16
14
12
Security Concerns
No Knowledge
10
8
6
4
No Money
No Credit Card
No Response
2
0
Security
Concerns
No Money
No
Response
Figure 3: Why Respondents do not conduct Online – transactions
From the 63 respondents, two respondents that conduct online–transactions often, noted that it is
because they do not have any money. The reason why, 44 (70 %) of the respondents do not use the
Internet Services provided to conduct online transactions such as e-Banking and purchasing of goods
and services is because – 20 (46 %) do not have a credit card, 14 (32 %) have security concerns,
while 2 (4 %) have no knowledge to perform such actions. The availability of ICTs in public
administration also has social implications, since government workers can develop ICT skills and
Number of Respondents
access the Internet from the workplace (ITU, 2003).
50
45
40
35
30
25
20
15
10
5
0
Yes
No
Yes
No
e-Govenrment Services
Figure 4: Awareness of e-Government services
9
The Information Technology Group (2002) notes that ICTs can also make government activities more
transparent to citizens and other observers. From Figure 4 the researchers notes that only 16 (25 %)
of the respondents have used or are aware of e-Government services available to the public.
9. Awareness of Network Policy
Number of Respondents
45
40
35
30
25
20
Yes
No
15
10
5
0
Yes
No
Awareness of Policies Implemented
Figure 5: Awareness of Policies Implemented regarding Student and LAN usage
From the above 44 (70%) of the respondents were aware of the policies implemented, regarding
student and LAN usage at UKZN. Eighteen (29%) of the respondents believe that these policies are
implemented properly, and 31 (49%) do not believe that that these policies are implemented properly.
10. Conclusion
Using the data analysis, the researchers can note that there is a lack e-Readiness and the awareness
of ICTs used in everyday life. Existing indicators are therefore often infrastructure-based, measuring
such variables as the number of main telephone lines, and typically use telecommunication operators’
data. However according to the ITU (2003) and that the data analysis supports, that there is growing
evidence that other factors, such as affordability and knowledge, are an important part of accessibility.
There are many factors that influence the degree and pace of social and economic development - not
least political stability, physical infrastructure, basic literacy and basic access (Accenture et al., 2001).
There is no suggestion that ICT can eliminate the need for these or offer a solution for all
development problems according to Accenture et al. (2001). The real benefits lie not in the provision
of technology as such, but rather in its application to create powerful social and economic networks by
improving the exchange of information.
11. Research Questions
11.1 Can ICT develop/stimulate e-Readiness?
Accenture et al. (2001) notes that ICT can be an enabler of development goals because its
characteristics can improve communication and the exchange of information to strengthen and create
new economic and social networks. It can do so at all levels by increasing the effectiveness and reach
of development interventions, enhancing good governance and lowering the costs of service delivery.
10
11.2 Does KwaZulu-Natal have the necessary development mentality to provide such ICT
Initiatives to support e-Readiness?
The researchers noted that the KwaZulu-Natal Department of Economic Developments’ core
Business is in line with the recommendations for e-Readiness given by the SADC e-Readiness Task
Force (2002). The core business of the Department of Economic Development and Tourism relates to
its desire to:

Be a one-stop economic information shop.

Contribute to the formulation of economic policy development and articulate the economic
development strategy for KZN.

Promote fixed investment into the province; economic development through the championing
of public-private partnerships.

Promote small and medium enterprises (SME) development and technological innovation and
increasing competitiveness in key sectors of the economy.

Champion initiatives, which improve the province's logistics capabilities and enhance key
supply chains.

Ensure effective and prudent business regulation in the province (KZN DEDT, 2002).
11.3 What are the benefits of e-Readiness or being e-Ready for South Africa (and in the
province of KwaZulu-Natal)?
Bridges.org (2005) points out that experts have noted that in order for organisations in developing
countries to put ICT to effective use, they must first be "e-Ready" in terms of ICT infrastructure, the
accessibility of ICT to the population, and the legal and regulatory framework. The Information
Technology Group (2000) note that getting ready for the networked world in terms of being e-Ready
creates opportunities for organisations and individuals in the developing world, eliminate barriers that
stifled flows of information and goods to and from developing nations, and promotes efficiency.
12. Recommendations
The researcher’s underlining focus was to look at the potential of being e-Ready in conjunction with
the social and economic success that the society can achieve in sustaining ICT initiatives. The
researchers note from Maplecroft.Net (2005) that e-Learning is about using multimedia technologies
and the Internet through, for example, 'virtual classrooms' and online curricula. The researchers share
the same view as the Information Technology Group (2000) and recommends that the following
actions should take place, concerning the area mentioned:

Schools’ Access to ICT.

Enhancing Education with ICTs.

Developing the ICT Workforce.

Illiteracy and ICTs.
11
There are 11 official languages in South Africa and it is important to bridge this with digital media to
enhance and promote Internet usability. Also to bridge the divide of integrating ICTs into everyday life
and the awareness of e-Government– thereby providing proper educational initiatives, promoting the
awareness and use of ICTs.
12.1 Eliminating Network Access
The following factors are important for economic development in general because they play a
role promoting Networked Readiness: provide efficient Transport Infrastructure; provide better
distribution channels; provide Electricity and concern yourself with the Local Conditions, (Information
Technology Group, 2000).
12.2 e-Business and e-Government Awareness (Networked Economy)
The 11 official languages of South Africa should be integrated to provide an understanding and
knowledge of the awareness and promotion of e-Business and e-Government Services. Proactive
governmental organisations are working in partnership with humanitarian organisations to deploy
ICTs and expertise as part of the disaster relief effort (Maplecroft.NET, 2005). The researchers agrees
with Vosloo (2004), that e-Government should follow an evolutionary path of publish, interact and
transact. The researchers share the same view as Maplecroft.Net (2005) when they noted that
business can facilitate digital inclusion, by presenting examples of the different technologies that
might be utilised and the projects they might be used in. Successful engagements require a
partnership-based approach – delivering strategies that benefit stakeholders.
12.3 Improvement of Network Policy
The researchers shares the same view as the Information Technology Group (2000) that the following
factors should be considered because they are often influenced or determined by national policy:
perceived political risk; predictability of the legal environment; openness to foreign direct investment;
convertibility of local currency; restrictions on capital flows; credit card usage; access to credit;
entrepreneurial culture; access to start-up capital and regulations and restrictions on small business.
In dealing with issues such as Internet taxation, online privacy and intellectual property rights, the
researchers agree with the Information Technology Group (2000) that the following guidelines should
be followed:

Internet tax policy should neither penalize the online trade of goods and services.

Measures should exist that safeguard the privacy of end-users in the community.

The question of how to address intellectual property rights in a policy framework must be
carefully addressed.
12.4 Improving the social and economic developments with the use of ICTs
The researchers conclude that the following factors should be considered to effectively integrate ICTs
into society and used by people to improve their lives – Infrastructure; Access; Affordability; Capacity
building; Relevant content; Socio-cultural factors; Regulatory framework (Maplecroft.NET, 2005)
12

Developing human capacity – skills and knowledge

Cost effective and ubiquitous ICT network infrastructure

Sustainable growth of the domestic ICT industry

Diffusion and adoption of ICTs through the economy

Government: a model user of ICTs

Enhanced innovation and R&D capabilities

Proactive, coordinated, and transparent policy and implementation processes
13. Conclusion
This result of this study has shown that there is a lack of the understanding of e-Readiness or being
e-Ready. All of the respondents use a personal computer everyday, while some of the respondents
who grew up in a rural area – do not own a personal computer. The results have shown that the use
of ICTs is integrated into the everyday life of the individuals measured.
As concluded by the SADC e-Readiness Task Force (2002), South Africa is at the forefront of the
SADC region with regard to ICT development, although further development in the ICT, as well as the
economic arena, must take place before South Africa can be compared to the developed countries, or
some developing countries in Asia and South America. It can, however, immediately provide a role
model to, and render assistance to, fellow member states in the SADC region. Moreover, Africa's
leaders recognize the part that ICT has to play. Indeed, it is seen as the cornerstone on which many
of the solutions to the problems facing Africa will be built. However, ICT has to be more available to
people in terms of physical access, affordability, appropriate technology and locally relevant content.
Achieving e-readiness across Africa will require bold and ambitious steps. Legal and regulatory
frameworks will need to be overhauled, sometimes in the face of opposition. Innovative uses of
technology will need to be found to deliver ICT where it is needed most. Understanding the problems,
and having a range of recommendations and solutions that are in a local context, will help Africa's
current and future leaders and administrators to achieve their aims (Bridges.org, 2003).
The solutions to Africa's problems must come from within the continent, and Africa is ready to rise to
the challenge (Bridges.org, 2003). The potential of being e-Ready in conjunction with the social and
economic success that the society can achieve in sustaining ICT initiatives seems to be a difficult but
a worthwhile achievement.
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13
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