A Stakeholder Perspective of eGovernment for
Development Partnerships using Business
Dynamics Modeling.
by
Peter Olu Jack
Supervisor:
Prof. Jun-Seok Hwang
Peter Jack, ITPP
1
 eGovernment implementation in Africa is generally faced with a myriad of
challenges, ranging from uncoordinated efforts by stakeholders and a dearth of
Strategic Leadership, to severe funding constraints. Global efforts to fight poverty
in Africa through Infrastructure Funding offer hope (MDGs, NEPAD, G8, EU,
DFID, WB_GICT, etc).
 This work aims to invoke the stakeholder theory to model eGovernment
implementation using Business Dynamics Modeling Methodology.
 The Social Enterprise Model will be simulated to develop an operational
funding/business model for implementing eGovernment projects.
 A Survey of eGovernment PPP projects in Nigeria will be carried out to determine
the factors influencing Stakeholder Participation, Project Success/Failure and
Sustainability. The policy implications of the results will be analysed.
 Additionally, partnership/management structures for the implementation of e-
government projects involving government, academia, private sector firms and
civil society organisations will be simulated for different levels of service
provision, i.e., at the Federal, State, Local Government, and Community levels.
18/03/2016
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•
Abstract
•
Motivation
•
Introduction
•
Research Objectives
•
Research questions
•
Conceptual Model
•
Literature Review
•
Methodology
•
Conclusion
•
References
Peter Jack, ITPP
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 The need for harnessing multi-stakeholder efforts towards the development of
eGovernment Projects for people empowerment in Africa.
 The Potential to develop viable and sustainable business models for “Public Social
Private Partnerships” using Simulation Tools to model a Stakeholder Strategy .
 Globally, in Infrastructure development, there is an evolving Stakeholder
/Partnerships (PPP, PSPP, PCSP, PCBOP, PCP, PAP, PIAP, PPPP, PCSRP) focus, as
opposed to Contract/Operational Model (BOT, BTO, BOOT, DBFO, BLT, BRT, BOO,
SEM, OSM) focus.
 Modeling and Simulation tools offer a robust latitude for the analysis of complex
systems.
Peter Jack, ITPP
4
 Global Efforts are currently being channelled towards supporting eGovernment
initiatives for Development in disadvantages communities such as in Africa.
eGovernment is seen as an enabler, sanitizer, resource protector, and catalyst for
sustainable development.
 Public Private Partnerships have become prevalent in the drive towards sustainable
infrastructure development primarily in the developed economies, but more
aggressively by the Multilateral Agencies and International NGOs for fighting poverty
in Africa through people empowerment.
 Nobel Laureate Mohammad Yunus (Grameen Bank/Foundation) popularised the
Social Enterprise Model and it has become part of the Policy Framework for strategic
intervention to ensure grassroots empowerment even in the developed nations where
poverty is still a challenge in some neighbourhoods.
 Model: “A model is a simplified version of something that is real” [3]
 Some Simulation Applications:
 Stakeholder Dynamics/Business Process Modeling (Focus of this work)
 Capital Asset Pricing/Budgeting
Peter Jack, ITPP
 Virtual Reality Modeling
5
 The research aims to investigate the roles of Stakeholders in eGovernment for
Development (eGov4D) Public Private Partnership (PPP) Projects.
 To also determine the factors that ensure the success/failure and sustainability
of the eGov4D PPP Projects.
 Modeling and Simulation will be employed to allow flexibility, robustness and a
variety of Scenario Analysis of Stakeholder Dynamics
 The interactions between Stakeholders groups involved in eGovernment PPPs
at the various arms (Executive, Judiciary, and Legislature) and layers (Federal,
State, Local Government and Local Community) of Government will be
examined.
 eGovernment Service Delivery Centre models (CCC, MPTC, IAC, RIRC, eKiosks,
etc) will be compared to ascertain the efficient and effective centre deployment
mix.
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 What factors influence Stakeholder Participation, Success/Failure and
Sustainability of eGovernment for Development PPP Projects?
 Is the Stakeholder theory a potent approach for analysing Public Private
Partnerships operating as Social Enterprises?
 Does the “Social Enterprise Model” satisfy multi-stakeholder objectives
in the operation of Public Social Private Partnership ventures?
 Is Simulation an effective Tool for Modeling “Stakeholder Involvement”
in the Sustainable implementation of eGovernment projects in Africa?
Peter Jack, ITPP
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Source: Final Report of the Committee on harmonization of Nigerian National Identity Cards, March 2006
Copyright. Peter Jack, ITPP
9
Peter Jack, ITPP
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Peter Jack, ITPP
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 The Stanford Research Institute (1963) defined “Stakeholders” as “those groups without
whose support the organization would cease to exist” (cited in Freeman 1984, 31).
 Preston (1990) on the other hand, opined that the concept of stakeholders has origins in
the period of the great depression in USA (1929-1941) when General Electric categorised
four stakeholder groups: Shareholders, Employees, Customers and the General Public.
 There are three notable approaches to Stakeholder Theory:
 Descriptive (Rooted in Organizational Behaviour Theory; Organization versus Stakeholders)
 Instrumental (Competitive advantage is gained by involving key Stakeholders)
 Normative (The moral responsibility of organizations rests in an all-stakeholder approach)
 Several works on linking Stakeholder Theory to eGovernment Projects have focussed on
the normative approach as it lends itself to the analysis of Public Private Partnerships for
eGovernment development. CSR component of corporations’ activities is the central
theme of the Normative Approach.
Peter Jack, ITPP
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Author
Main Subject
Area
Title
Focus
Findings
Elias et al (2000)
Stakeholder
Theory
Systems
Dynamics
Linking Stakeholder
literature and Systems
Dynamics: Opportunities
for Research
General
Proposition
Systems dynamics
methodology can contribute
to understanding the
dynamics of stakeholders.
Hans J Scholl
(2001)
Stakeholder
Theory
eGovernment
Applying Stakeholder
Theory to eGovernment:
Benefits and Limits
General
Theory and
Case Study
Stakeholder theory can be
applied to eGovernment
Projects in the context of
managerial decisions because
of the emerging networknature of organizations in
both public and private
sectors
Savita Bailur (2007)
Stakeholder
Theory
Telecenters
Using Stakeholder
Theory to Analyze
Telecenter Projects
General
Theory and
Case
Analysis
Both Normative and
Instrumental approaches can
be taken. A social
responsibility perspective fits
the Normative approach.
Janowski , Estevez
and Ojo (2007)
eGovernment
A Project framework for
eGovernment.
General
Framework/
Case Study
Presentation of a rigorous
framework for foundational
e-Government
projects/Outline of e-Macau
13
Project.
Peter Jack, ITPP
Author
Main
Subject Area
Title
Focus
Findings
P. Noumba and S.
Dinghem (2004)
PPP in Infrastructure
Development
Private Participation in
Infrastructure Projects in the
republic of Korea
Country/
South Korea
Korea relied heavily on PPP to
expand and Modernize its
infrastructure but not without
severe challenges like cartelization
and Monitoring and Supervision
inadequacy.
Hee Joon Song (2006)
eGovernment
E-Government in
Developing Countries:
Lessons learned from
Republic of Korea
Country/
South Korea
In this work an effort was made to
update UNESCO’s 2005 eGov.
Toolkit by drawing from Korea’s
experience based on Song’s
methodology. Korea, even as a
global eGov leader, also
experienced a significant number
of project failures.
Lee et al (2008)
ICT for Development
Analysing South Korea’s ICT
for Development Aid
Programme
Country/
South Korea
Korea ‘s emphasis on ICT for
Development Aid is significant. Its
aid program has assisted the
diffusion of ICTs in poorer nations
and brought ICT related benefits as
well.
Moszoro and
Gasiorowski (2008)
Public Private
Partnerships
Optimal Capital Structure of
Public Private Partnerships
General
Proposition
Their model shows that PPPs may
provide public services cheaper
than sole private or sole public
entity. Efficiency considerations
suggest that optimality requires14
mixed ownership.
Peter Jack, ITPP
Author
Main
Subject Area
Title
Focus
Findings
Jiang Wu and Bin
Wu
eGovernment/
Simulation
Modeling and Simulation of
Group behaviour in eGovernment Implementation
General
Proposition
E-Government Group Behaviour
Model (EGGBM) can help
decision makers make choices to
improve the level of ICT
acceptance of groups.
P. Zimmermann and
M. Finger (2004)
Stakeholder theory,
Information and
Communication
Technology
The Impact of ICTs on Local
Power relationships.
Local Govt./
Community
The introduction of ICTs, without
a counterbalancing control
mechanism, heavily decreases the
power of the local administration
against the businesses and other
administrations.
Zahir Irani and Tony
Elliman (2008)
Social
Entrepreneurship
Creating Social
Entrepreneurship in Local
Government
Local
Government
The work sought to develop a
process to support Local
Governments effort to stimulate
innovation. The key proposition is
to manage the process and let the
ideas flourish.
Mayanja Meddie
(2006)
Social Enterprise/
Telecenter
Rethinking Telecentre
Sustainability: How to
Implement a Social Enterprise
Approach - Lessons from
India and Africa.
Regional:
Africa/India
The Paper concludes that the
Social Enterprise Model takes the
best out of the Charity Model and
the Enterprise Model. The
decision as to the appropriate mix
will be dealt with on a case-bycase basis.
15
Peter Jack, ITPP
THEORY
Assumptions
Board member
role
Owners’ interests may
differ from managers’
interests
Supervisor
Owners and managers have
similar interests
Partner
Stakeholder theory
Different stakeholder have
legitimate but different
interests in the
organisation.
Resource dependency theory
Principal-Agent theory
Stewardship theory
Managerial hegemony theory
Main board
function
Key issues
Conformance:
- Safeguard
owners resources
and interests
- Supervise
management/staff
Emphasis on control may
stifle innovation and risk
taking, and reduce staff
motivation
Improving
Performance:
- add value to top
decisions/strategy
- partner
management
Management proposals and
systems may not be given
adequate scrutiny.
‘Represent’
different
stakeholder
views
Political:
- represent and
balance different
stakeholder
interests
- make policy
- control executive
Board members may promote
stakeholder interests rather
than the organisation’s. May
be difficult to agree
objectives.
Organisational survival
depends on maintaining
coalition of support to
obtain resources and
legitimacy
Supporter
External
influence:
- secure resources
- improve
stakeholder
relations
- bring external
perspective
External focus of board
members may mean internal
supervision is neglected.
Board members may lack
expertise.
Owners and managers have
different interests, but
managers control main
levers of power.
Symbolic
Legitimacy:
-ratify decisions
-support
management
-give legitimacy
Management may pursue own
interests at expense of
‘owners’, managers gain little
of value from board.
(Chosen to
represent owners
interests, and be
independent of
management)
(Chosen for
expertise)
(Chosen for
influence or
resources they
may bring.)
PHASE ONE
•
•
Stakeholder Dynamics Modeling and Simulation .
•
Social Enterprise/Business Process Modeling and Simulation
•
Model Testing with Nigerian Pilot Project
PHASE TWO
•
•
Survey Method.
•
Hypothesis Development
•
Data Analysis
 Business Dynamics Modeling is based on pioneering work by Prof. Jay
Forrester, Germeshausen Professor Emeritus of Management, MIT-Sloan
School of Management, extended by Prof. John D. Sterman, author of “Business
Dynamics: Systems Thinking and Modeling for a Complex World”.
Peter Jack, ITPP
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
eGovernment for Development Information Exchange Portal
(Funded by CTO*; authored and maintained by Richard Heeks,
University of Manchester).
 World Bank Investment in Infrastructure Database
 United Nations Development Reports
 European Union Intervention Reports
 United Kingdom PFI Reports
 Survey of Selected Nigerian eGovernment PPP Projects
 Nigeria’s top 100 listed Companies’ CSR activities.
*CTO – Commonwealth Telecommunications Organization.
 Project Cost
 Partners (Government, Private sector, Civil Society, etc)
 Funding Sources (Equity, Debt, Grant, etc)
 Stakeholders (Citizens, Technology Vendor, International Agency, Government,








Consultants, etc.)
Funding Features (Interest Rate, Tenure, etc)
PPP Nomenclature by Partners (PCSP, PCBOP, PCP etc)
PPP Legal Contract Types (BOT, BOO, DBFO, etc)
Service Quality (Excellent, VG, G, P, VP)
Project Sustainability (LTS, MTS, STS, MS, US)
Ownership Structure
Board Structure
Management Structure
 Stakeholder Category:
 Funding Partners

H1. The power of a stakeholder is positively associated with the level of funding
contribution to the partnership.

H2. Stakeholder willingness to contribute funding is positively associated with
perception of management’s capability (track record, trustworthiness)

H3. A Stakeholder’s decision to contribute funding will depend on the extent to
which the Organization’s Values are congruent with its intervention goals.
 Management
 Citizens (Users/Customers)
 Organized Catchment Area Groups (Youth, Women, Local Leaders, etc)
 Solution Vendors
 Consultants
Peter Jack, ITPP
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 iThink
 iThink provides a complete set of resources for business process improvement or re-
engineering :
Identifying the system of business processes
 Developing a high-level understanding of the system
 Designing and testing re-engineering and continuous improvement initiatives
 Organizational learning and the dissemination of process knowledge

Powersim Studio 7:
 What if-scenarios
A business simulation model created using Studio 7 can describe several aspects of a
company, and at the same time incorporate the factors that are precise and constant, and
those who vary dynamically, thereby enabling future planning.
 The dynamic business simulation using Studio 7 helps to test and analyze how changes
over time affects a business – indicating which factors are real-core factors – and which
factors are not.
Peter Jack, ITPP
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 Vensim is a visual modeling tool for conceptualizing, documenting, simulating,
analyzing and optimizing models of dynamic systems, enabling the flexible building of
simulation models from causal loop or stock and flow diagrams.
 By connecting words with arrows, relationships among system variables are entered and
recorded as causal connections. This information is used by the Equation Editor to help
form a complete simulation model.
 The model can be analyzed throughout the building process, exploring the causes and
uses of a variable and the feedback loops involving the variable. Once a model has been
built, Vensim allows one to thoroughly explore the behavior of the model.
Peter Jack, ITPP
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Simulation Tool
Visual Modeling
Capabilities
Simulation
Capabilities
Input/Output
Analysis
Applicability to
Stakeholder
Simulation (*)
iThink
Powersim
Vensim
Peter Jack, ITPP
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 Modeling Process:
 Construct Model
 Examine the Structure using a structural analysis tool
 Simulate the Model
 Examine the Model Behaviour using dataset Analysis Tool
 Perform Simulation Experiments to understand or refine
the Model
 Present the Results (The final model and its behaviour)
 Test the Simulation Model by implementing a pilot or
analysing existing projects.
Peter Jack, ITPP
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 Methods for analyzing the survey data will be explored
 Some of the data may be employed for some simulation
experiments
 The proposed eGovernment Partnerships for Development
Stakeholder Dynamics Model (eGP4D_SDM) will be tested
and validated using real data.
Peter Jack, ITPP
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 Stakeholder Theory is gaining Momentum in its application to eGovernment
research and analysis.
 Stakeholder Theoretical Analysis offers a credible perspective for understanding
Stakeholder dynamics in Public Private Partnerships focussed on eGovernment for
Development.
 Simulation Tools have become prevalent across almost all perceivable facets of
human endeavour as they offer a flexible, robust and potent capability for analysing
complex system behaviour with minimum exposure to risk.
 Business Dynamics Modeling (BDM) in particular, has truly evolved; starting with
basic budgeting with calculators and spread sheets, through Business Process ReEngineering and Business Process Management, to today’s robust tools handling
simulations involving business decision making under dynamic flux and
uncertainty.
 BDM use in Business Process Modeling and Management will prove to be an
invaluable tool to model Social Enterprise management and operations.
26
 PPP can be a good funding strategy for developing countries to accelerate







eGovernment Implementation
It must however be approached methodically.
The legislative, legal and Institutional frameworks must be in place first.
Overwhelming Political Will cannot be substituted by any other factor
(Korea is a shining example)
All stakeholders must be involved (Stakeholder Theory).
Multilateral Agencies have a variety of support initiatives to assist
developing countries in their eGovernment Initiatives aimed at
improving Efficiency, Transparency and Accountability
eGovernment PPPs offer opportunities for widespread social
entrepreneurship development and to reach out to the otherwise
forgotten grassroots communities.
Policy Considerations:
 Legal (Act), Regulatory (Body/Commission) and Operational (Department/Unit)
Frameworks must be in place to ensure the gains from public private partnerships
 Incentives and special concessions are perceived driving forces to motivate private
sector involvement in PPPs
 Joint Operational Structures may offer the best consensus for addressing
potential disputes.

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
[2] H. H. Goldstine and A. Goldstine (1946): The Electronic Numerical Integrator and Computer
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
[3] Hermann Schichl (2000): “Models and History of Modeling” Institut f¨ur Mathematik der
Universit¨at Wien Strudlhofgasse 4, A-1090 Wien, Austria.

[4] Günther Ossimitz (1997): The Development Of Systems Thinking Skills Using System Dynamics
Modeling Tools"

[5] John D. Sterman (2000): Business Dynamics: Systems Thinking and Modeling for a Complex
World, Irwin/McGraw-Hill

[6] V. Bosilj-Vuksic , V. Ceric and V. Hlupic (2007): “Criteria for the Evaluation of Business Process
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
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Peter Jack, ITPP
28

[8] M. H. Jansen_Vullers and M. Netjes (2006) “Business Process Simulation- A Tool Survey”; Seventh
Workshop and Tutorial on Practical Use of Coloured Petri Nets and the CPN Tools , Denmark.

[9] A. A. Elias, R. Y. Cavana and L. S. Jackson (2000); Linking Stakeholder Literature and Systems
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
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
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
[12] J. Wu and B. Hu (2007). “Modeling and Simulation of Group Behaviour in eGovernment
Implementation”. Proceedings of the 2007 Simulation Conference, C.2007 IEEE, 1282-1291.

[13] M. Meddie (2006). Rethinking Telecentre Sustainability: How to Implement a Social Enterprise
Approach-Lessons from India and Africa. The Journal of Community Informatics, Vol 2 No 3. Special
Issue: Telecentres.
Peter Jack, ITPP
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
[14] J. Swain (2007). “Simulation Software Survey”. Institute of Operations Research and
Management Science; http://www.lionhrtpub.com/orms/surveys/Simulations/Simulation.html

[15] Wikipedia: http://en.wikipedia.org/wiki/Simulation/

[16] GoldSim: http://www.goldsim.com/

[17] Promodel: http://www.promodel.com/products/promodel/

[18] H. Arsham (2008); http://home.ubalt.edu/ntsbarsh/simulation/sim.htm “Systems
Simulation: The Shortest Route to Applications” (Site Supported by the US National Science
Foundation © 1995-2008)

[19] Arena: http://www.arenasimulation.com/

[20] iThink: http://www.hps-inc.com

[21] Powersim: http://www.powersim.com

[22] Vensim: http://www.vensim.com
Peter Jack, ITPP
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
[23] Hans j Scholl (2001); Applying Stakeholder Theory to E-Government: benefits and Limits.
Proceedings of the IFIP Conference on Towards The E-Society: E-Commerce, E-Business, EGovernment 2001 October 03 - 05, 2001

[24] Nigeria’s PPP Framework (Presidential Villa, August 2005)

[25](UNECE 2007). Guidebook on Promoting Good Governance in Public-Private Partnerships

[26] Mechling, Jerry, BAH (2002) Building a Methodology for Measuring the Value of eServices

[27] Robert D. Behn (1995). The Challenge of Evaluating M-Government, E-Government, and
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
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
[29] Development Assistance Committee, Donor ICT Strategies Matrix (December 2003).

[30] E-Strategies Monitoring And Evaluation Toolkit, The World Bank - I N F / G I C T V 6. 1 B
31
(3JAN05)

[31] Abuja Declaration: Presidential retreat on Public Sector Reforms and Public Private
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
[32] From eGovernment to e-Inclusion, UN Global eGovernment Readiness Report 2008

[33] Subhajit Basu (2004). eGovernment and Developing Countries: An Overview,
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
[34] Valentina (Dardha) Ndou (2004). eGovernment for Developing Countries:
Opportunities and Challenges, EJISDC 18, 1, 1-24

[35] The eGovernment Handbook for Developing Countries, Centre for Democracy and
Technology, Washington DC (November 2002)

[36] Danish Dada (2006). The failure of eGovernment in Developing Countries: A
Literature Review, EJISDC 26, 7, 1-10.
Peter Jack, ITPP
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