UNNExT Workshop on Implementation of e-sps and Automation for Agriculture Trade Facilitation. 1-3 November 2016 Bangkok, Thailand

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1 UNNExT Workshop on Implementation of e-sps and Automation for Agriculture Trade Facilitation 1-3 November 2016 Bangkok, Thailand

2 Conducting a Feasibility Study and Cost-Benefit Analysis for Paperless/e-Cert Systems Somnuk Keretho, PhD UNNExT Expert Kasetsart University sk@ku-inova.org 2

3 To recommend a systematic approach to develop a paperless/electronic Certification System To discuss key considerations for conducting a feasibility study To discuss an approach for cost-benefit analysis 3

4 unnext.unescap.org UNNExT United Nations Network of Experts for Paperless Trade for Asia and the Pacific 4

5 Why a systematic approach is recommended? Because there are many challenges to be managed such that the e-phyto Vision could be transformed into reality. As-Is Condition e.g. Manual Paper-based Environmen t Complicated Procedures Conflict of Interest Standards Lack of Understanding Political Will Barrier Many Document Requirements Laws and Regulations Many Stakeholders Difficulty in data exchange Human Resistance to Change Lack of Funding Compliance Governance Change Management Different Inadequate Technology Infrastructure ICT systems Barriers in interoperability System Development Data Privacy Security Target To-be Condition More compliant, faster, and less cost Electronic Phyto Certificate Environment 5

6 Applying Enterprise Architecture Concept for conceptual feasibility study, detailed design, implementation and operations Complexity of electronic platform can be handled by decomposing its challenges into smaller and more manageable sub-components. 1. Stakeholders needs and requirements As-Is Condition e.g. Manual Paper-based Environmen t Many Document Requirements Complicated Laws and Regulations Trade Procedures Connectivity within Many Stakeholders Conflict of Interest the country Compliance Many different ICT systems Governance Difficulty in trade data exchange Regional Connectivity People and Business In-Readiness Inadequacy in Technology Infrastructure System Development Barriers in Interoperability Change Management Better To-be Condition More compliant, faster, and less costly Electronic Phyto Certificate Environment timeline From the As-Is conditions (architectures) of all these components 10 critical components must be considered Migrating to the target To-Be architectures of all these 10 components 6

7 1. Political Will 2. Project Management/Project Working Team 3. Adequate Budget/Financial Support 4. Business Process Analysis 5. Data/Document Simplification 6. Rules and Regulations Support 7. Application Architecture Design (and its online services) e.g. registration, online application submission, inspection scheduling, online reporting, PC issuance 8. Technical Standards and Protocols, e.g. ephyto Schema for cross-border data exchange 9. Implementation/Construction 10. Operations 7

8 Today Date From the As-Is 4 Phases of ephyto System Development Target To-Be Environment 1. Inception 2. Elaboration 3. Construction 4. Transition Conduct a feasibility study (initial as-is Analysis & to-be Proposal) Detailed As-Is Analysis and Agreement of better To-Be environment TOR, Blueprint Design and Planning for Implementation Implementation of ICT infrastructure, application software and systems Enacting necessary laws/regulations Training key stakeholders to establish the agreed To-Be process & the electronic environment. People change must be managed such that more users, of both government officers and traders, are familiarized with, and really utilize the established platform in their routine operations. 8

9 Inception Phase The purpose of the inception phase is to develop a feasibility study (or a concept paper) aiming to facilitate initial discussion on the electronic Phyto system, and to obtain feedback and approval to go forward for an in-depth design and TOR development for procurement and system construction in the later step. Normally, this initial concept paper is not intended to seek commitment or agreement for the implementation yet. 9

10 What should we do with the concept paper (the deliverable of the inception phase)? With the concept paper, a meeting should be conducted, if possible, among highest-level (as possible) government executives and relevant business representatives to discuss the proposed ephyto concept. Upon the feedback from the meeting, and presuming that a positive decision is reached to proceed with a recommended next step, an elaboration phase (a detailed design), the meeting should establish a Project Management Group made up of senior representatives of the key agencies/units who will be directly involved in implementing and utilizing the ephyto system. 10

11 Understand the As-Is conditions and propose the To-Be architectures of these 10 key components mainly at the conceptual feasibility and policy level, but some technical components should be roughly explored for their feasibility, potential benefits, and risks. 1. Stakeholders requirements, and Related Agency s Strategic Agenda 2. Vision & Goals 3. Possible ephyto Scope 4. Business Process and Document Requirements for ephyto Issuance 4. What are the existing ICT systems, What should be the to-be ephyto architecture (what levels of automation) 5. Stakeholder collaboration.etc. 11

12 A rough cost benefit analysis can be conducted during the inception phase, but however more accurate cost-benefit analysis can be better carried during the detailed design (elaboration) phase. Development Cost Cost of feasibility study (the concept analysis) Cost of detailed design and TOR development Cost of construction/implementation Cost of system maintenance Potential Benefits Reduction of travelling cost + paperwork cost per year can be approximately calculated. Cost reduction to Business Users (3-4 physical visits reduced to one visit) Reduced data entry and validation activities by national plant protection organizations (NPPO) & Improving efficiencies Reduced potential for fraudulent certificates (if cross-border ephyto exchange established) Improved security in the transmission of certificates when compared with paper certificates; Efficiencies in arrival and clearance of plants and plant products at the point of entry; Reduced delays in receiving replacement phytosanitary certificates when required; Potential to link with the National Single Window initiative 12

13 Who should finance the development and operations of this platform? The ephyto system is normally financed by the government because its main operations are carried by the authorized NPPO. The electronic ephyto services can be free of charge or with some additional service charges to the business users. Clarity on the financial model by policy decision-makers is necessary to support the implementation of the system. 13

14 Conclusions Mandate and continuous support from Director General Cost-Benefit Analysis/Financial Model Analysis may help the policy makers to make the decision to go forward. Strong inter-division collaboration, e.g. managers and key personals from relevant divisions within the Department (not just from IT staffs) Systematic Project Management, e.g. detailed analysis, design and agreement on the new to-be business process, and effective project implementation Careful Change Management, e.g. creating awareness and training for government staffs and agriculture firms. 14

15 Q & A Thank You Somnuk Keretho, PhD UNNExT Expert Kasetsart University sk@ku-inova.org 15