ICT FOR DEVELOPMENT IN INDIA

India is one of the fastest emerging economies in the world. Developments in last couple of decades have not only influenced institutional, technological and demographic change but also induced innovations and promoted entrepreneurship. This has led to improvement in macroeconomic performance of the country. However, favorable macroeconomic performance could not contribute towards significant reduction of poverty among the larger section of Indian population. The rate of poverty decline has not been higher in the post-reform period (period since 1991 onwards).

The improvements in some other non-economic dimensions of social development have been even less favorable. The most pronounced example is an exceptionally high and persistent level of child malnutrition (46% in 2005–6) (Chatterjee, P., 2007: Child malnutrition rises in India despite economic boom. The Lancet, 369, No. 9571, pp. 1417–1418). Probably, this is just the beginning; a much more challenging future awaits India. This has been summarized as under:-

"In 2011, looking back at the first decade of the 21st century – 2000-2010 - we strongly believe that this decade indeed can be called – India’s Decade of Development..... Going forward however, India will face enormous challenges in the areas of rural development, urban sustainability, national infrastructure, and human capital and population" 

To shape a better future for Indian citizens, both government and non-government agencies are trying to analyze characteristics of link between on-going endogenous changes (induced by changing socio-economic environment) in the society and their development outcomes. The link between the two would be a critical input for understanding the dynamics of national transformation for an all inclusive development.

The ICT (Information and Communication Technology) is being seen as the key enabler in national transformation. Sheer volume and diversity in demography poses a big challenge in assimilation of new technologies (like ICT) in India. Further, rapid innovations and inventions across the globe in the field of ICT are consistently changing the technological landscape. Therefore, quick design and fast implementation of ICT solutions is necessary to keep in pace with changing technology and to take maximum advantage on investments. Therefore, possible ways and means in which this technology may be useful for development needs to be assessed comprehensively.

However, ICTs (Information and Communication Technologies) should not be viewed as magic solutions to endemic and deep-seated problems of inequity and disadvantage in India. Rather, ICTs should be seen as an integral part of development policies and projects aimed at bettering the lives of all Indians, including the poor and disadvantaged (Geoff Walsham, ICTS FOR THE BROADER DEVELOPMENT OF INDIA: AN ANALYSIS OF THE LITERATURE, 2010).

This work is an attempt to identify the important development paths (dimensions), which may be critical for transforming India towards better standards of living for its citizens. This would be followed with illustrations on existing scenario for each of the dimension, so that a broad understanding on the way ahead could be understood. In the end, how ICTs are can make difference in development (across all the dimensions) is discussed.

(Picture-1: ICT Key Enabler in Development Spectrum across National Transformation; Left to Right – Each Column represents a Dimension, thus Dimension – 1 to 4 are shown in picture;  Source: Author)

Picture-1 attempts to summarize critical areas of development for national transformation in one table. In the picture, it has been assumed that a synchronized effort (from various actors and stakeholders) directed towards improving national environment for industrial development, socio-economic conditions and sensible governance would eventually lead to improved standards of living. The extreme left column (Dimension-1) in the picture shows that quick Technology Transfer, promotion of Research and Development (RnD) and continuous Industrial Innovations would lead the nation towards excellence in industrial use of technology. For industrial sector, this would result in enhanced capabilities to meet demanding volumes in traditional businesses and would also be helpful in capturing a bigger share in lucrative knowledge based businesses dealing with newer technologies. This would eventually increase industrial productivity of the nation. The column next to this (Dimension-2) emphasizes that building an infrastructure and developing an institutional support for knowledge management, skill development, banking facilities and entrepreneurship incubator facilities would support entrepreneurship at all levels and generate employment opportunities. It is a widely accepted fact that under liberal business environment and democratic governance, entrepreneurship is the key driver of the economy. The following column (Dimension-3) shows that efforts to meet Millennium Development Goals (MDG) set by the United Nations and efforts for better socio-economic, healthcare and legal support system for the society would lead to better prospects for human development. Extreme right column (Dimension-4) shows that e-Government would result in better service delivery to citizens, which intern would enable citizen empowerment and improved governance.

Considering the fact that India has stable governments with good law and order, cordial industrial relations and adequate legislation, while coming up with the Development Spectrum (Picture-1), it has been assumed that governments (functioning in India) are able to facilitate a reasonably fair distribution of public money across different sections of society through various welfare schemes and supportive policies. It is also assumed that no situation of crisis (like war, market collapse, environmental disaster) requiring urgent and dedicated government attention arises in the coming decades.

In general, ICT enhances the core capabilities of accessibility, speed, accuracy and volume in execution of development plan and therefore, it helps in productive use of available resources. Let us try to investigate the existing scenario in the above mentioned dimensions, so that, it may be possible to speculate on key strategies for future developments.    

Dimension - 1

A brief illustration on scenario for the dimension is given in following post in this blog:-
 A GLIMPSE OF INDUSTRIAL TECHNOLOGY DEVELOPMENT IN INDIA
 (link - http://santoshbehar.blogspot.in/2012/06/glimpse-of-industrial-technology.html)

Dimension - 2

A brief illustration on scenario for the dimension is given in following post in this blog:-
 A GLIMPSE OF INNOVATION AND ENTREPRENEURSHIP IN INDIA
 (link - http://santoshbehar.blogspot.in/2012/06/glimpse-of-innovation-and.html)

 Dimension - 3

A brief illustration on scenario for the dimension is given in following post in this blog:-
 A GLIMPSE OF SOCIAL DEVELOPMENT IN INDIA
 (link - http://santoshbehar.blogspot.in/2012/06/glimpse-of-social-development-in-india.html)

Dimension - 4

A brief illustration on scenario for the dimension is given in following post in this blog:-
 A GLIMPSE OF E-GOVERNANCE FOR DEVELOPMENT IN INDIA
 (link - http://santoshbehar.blogspot.in/2012/06/glimpse-of-e-governance-for-development.html)

ICT for Development (across the Dimensions of Development)

Following points illustrate that ICT can accelerate and synergize efforts across above mentioned four dimensions:-

1.    There exists a positive relationship between ICT investment and the increase in productivity and competitiveness according to several research studies that have come up with the following conclusions: (a) the relationship between ICT and growth is obvious in developed economies that have already reached a threshold in its distribution and use; (b) there is a time gap from the start of investment and the resulting increases in productivity and growth due to the process of assimilation and adaptation of ICT; and (c) education, human capital and the economic environment are keys to exploiting the potential offered by ICT. More importantly, the conclusions of research studies point to one essential aspect: access to information can transform production processes, increase the learning ability of the population, and improve the living conditions of the poor. (Reference - Aiding development, accelerating innovation through ICT, published on January 20, 2012, e-Gov)

2.    Use of ICT enabled processes across different sectors in industry, government and society may be helpful in collecting adequate and authentic data (socio-economic, environmental and industrial data). Institutional leaderships enriched with such representative data would be in much better position to use analytics for understanding ground realities, availability of resources, policy making and general administration.

3.    Innovation, technology transfer, and the use of ICT are essential skills for making companies more productive and more competitive (through process improvement), and therefore are decisive factors in strengthening the economy. It is important to take initiatives to promote and support innovation, transfer, and implementation of ICT for purposes of production, competitiveness, and sustainable economic growth, while according priority to SMEs, micro-firms, and rural producers, as well as to sectors showing a high potential for economic development and job creation such as the ICT sector, which is helped by its inherent technological advantages in competing in a global market.

4.    Two of the most powerful forces in the world today are the spread of ICT and the global effort to achieve more widespread social and economic development," states a paper prepared by the Digital Opportunity Initiative (DOI), a public-private partnership between Accenture, the Markle Foundation and the United Nations Development Programme.

"It has long been suggested by some that these forces are in opposition: the development agenda aims to help developing countries make great strides forward and to close the gap between rich and poor countries, while ICT, according to this line of thought, reinforces the advantages of the developed countries and perpetuates the disadvantages of those that are less developed."

DOI, however, believes ICT can be a powerful enabler of development. ICT initiatives targeting specific development goals have proved successful and can be regionally or nationally scaled, "contributing to the critical mass and the threshold levels needed to ignite a virtuous cycle of development". It continues: "In such circumstances, the increasing use and pervasive impact of ICT can substantially enhance the ability of developing countries to address the full range of development goals."

The DOI identifies the three characteristics of ICT as a development enabler:

1. Adoption of a holistic and multi-dimensional approach.

2. Co-ordinated actions, strong partnerships and local implementation.

3. Global, national and local linkages.

The World Economic Forum also acknowledges the role information and communications technologies (ICT) are playing as a "critical enabler to sustainable socio-economic growth and also a vital ingredient for effective regional co-ordination in the creation of larger markets".

Of course, ICT is also an important factor in globalisation - a process, some argue, that places developing economies at a further disadvantage to developed economies. It warns that for ICT infrastructure to continue its rapid growth curve, governments should also give attention to a number of complementary businesses and processes need to be in place. ('The role of ICT in human development Part Three', by Herman Manson, published in www.mediatoolbox.co.za)

5.    Probably following views could be imporant for practically implementing ICT for Development in India:-

“We have seen in our work in Pondicherry and elsewhere in southern India that the poor are able to take to new technologies like fish to water, if they are enabled to do so through practical training.” M. S. Swaminathan

     “Combating poverty through the use of digital technologies is not simply about hooking the poor to computer networks. The user of the technology or the beneficiary of the service has to be at the core of the design and implementation process.” Clotilde Fonseca
   
     “The process of integrating new technologies into development processes through education, empowerment, capacity building and productivity is not necessarily ‘faster and cheaper’. It requires significant investments that must be sustained over time. This is one of the great challenges for governments, communities and international agencies.” Clotilde Fonseca

 REFERENCES:

http://www.ejisdc.org/ojs2/index.php/ejisdc/article/viewFile/665/317

http://en.wikipedia.org/wiki/Economic_development_in_India#cite_note-Chatterjee_2007-3

http://globalcenters.columbia.edu/southasia/files/mumbai/content/CGC_WP4_Indias_Decade_of_Development_II.pdf

http://unfccc.int/resource/docs/convkp/kpeng.pdf

http://unfccc.meta-fusion.com/kongresse/SB28/downl/080607_SB28_2_Tirthankar_Mandal.pdf

http://business.rediff.com/slide-show/2010/mar/23/slide-show-1-india-to-face-huge-skills-gap-due-to-low-employability.htm

http://www.nistads.res.in/indiasnt2008/t4industry/t4ind4.htm

http://www.thehindubusinessline.com/industry-and-economy/economy/article2147876.ece

http://mercatus.org/uploadedFiles/Mercatus/Publications/Cause%20or%20Consequence.pdf

http://www.economist.com/node/21554506#footnote1

http://indiabudget.nic.in/survey.asp

http://www.techmonitor.net/tm/images/8/82/09mar_apr_sf1.pdf

http://egov.eletsonline.com/2012/01/aiding-development-accelerating-innovation-through-ict/

http://www.slideshare.net/stephenmcclelland/the-enabling-role-of-ict-to-improve-productivity-and-industrial-competitiveness

http://www.slideshare.net/stephenmcclelland/the-enabling-role-of-ict-to-improve-productivity-and-industrial-competitiveness

http://www.jstor.org/discover/10.2307/4375363?uid=3738256&uid=2129&uid=2&uid=70&uid=4&sid=47699077934107

http://www.gersterconsulting.ch/docs/ict4d_book_part_7_ict_for_poverty_reduction.pdf

http://www.mediatoolbox.co.za/pebble.asp?p=54&relid=3118

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A GLIMPSE OF INDUSTRIAL TECHNOLOGY DEVELOPMENT IN INDIA

Technology excellence in different sectors is achieved through a process of Capability Development. Capability development itself is a long process, which involves so many phases like creating infrastructure, developing human capital, building centers of excellence, building institutions, facilitating industries to build absorptive capacities (ability to recognize the value of new information, assimilate it, and apply it) and creating synergy among them to create an environment, where technological innovations and technological development may take place. Porter (1990) has shown how national advantage is increasingly concentrated in particular industries and even industry segments, reflecting specific and differing sources of competitive advantage. Therefore, it becomes necessary for any country aspiring to excel in technology to do a scenario analysis and adopt strategic policies to create supportive environment for sectors identified to be advantageous.     

When it comes to technology transfer in a specific sector (in any liberal economy), mostly it is the strategic intent to rise up in the value chain of key players, which makes critical difference. Companies with clear motive for technological excellence often execute long term vision to develop competitive advantage through technological innovations. In one of their paper 'Learning by Doing, Technology Transfer to an Indian Manufacturing Firm', Shekhar Choudhari and Tushar K Moulik, have done a detailed study on technology transfer in a firm from tractor industry and found that "The total process of technology assimilation is conceptualized as consisting of three sub-processes: (a) Technology Adaption; (b) Technology Utilization and (c) Technology Development, which are characterized by differences in the organizations' goals and actions taken by management at each stage." 

Experts of International Economics converge with the view that few (advanced) countries lead technological inventions and are the primary innovators, while the rest of the countries (developing) adopt new technologies through process of technology transfer (initially suggested by - Krugman, Rethinking International Trade, 1990).

Global Technology Transfer is closely related with trade-related policies, such as competition, incentives, export, and taxation policies as well as intellectual property rights. Therefore, mutual agreement among the countries on strategy for trade becomes important. International community is concerned about enhancing efforts for technology transfer to developing world. In this regards, it would be mention worthy that Articles 10 and 11 of ‘Kyoto Protocol to the United Nations Framework Convention on Climate Change’ insists on co-operation among party countries to facilitate technology transfer (for a sustainable world).

On the other hand, consistent progress in R&D is necessary for promoting advancement in technology. 2012 Global R&D Funding Forecast emphasizes on growing worldwide emphasis on basic research.  In this context, a detailed study by Sujit Bhattacharya & Kashmiri Lal done in 2008 on 'Industrial R&D in India: Contemporary Scenario' still holds relevance and following excerpts from the study summarizes Indian R&D scenario very well:-

“India is presently the 4th largest economy of the world (in PPP - Purchasing Power Parity term) and a favoured destination of global R&D firms. Many Indian firms have created global footprints. In two sectors that have potential of driving the world economy i.e. ICT and biotechnology, India is among a few emerging economies to make its presence felt. However, inspite of these impressive statistics, Indian industrial R&D investment is still at a nascent stage. India compares poorly with industrial economies in terms of R&D spending. Unlike India, the major driver of R&D investment in developed economies comes from the industry. This is true even in case of China, where industry accounts for 57% of R&D investment. India’s R&D investment from industry was 23% in 2007, which was even less than industrial investment in Brazil (38.2%).”  

With this, it can be assumed that for future advancements in technology, India is well poised to pursue a two way approach of a) accelerating technology transfer and b) developing capabilities for indigenous technology development. This would require a focused effort for developing a culture of Industrial Creativity and Sustainable Business Leadership within Corporate India.

REEFERENCES:-

Please refer to REFERENCES section given in the blog ‘ICT FOR DEVELOPMENT IN INDIA’

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A GLIMPSE OF INNOVATION AND ENTREPRENEURSHIP IN INDIA

Now a day, it is a widely accepted fact that Innovation and Entrepreneurship is prime driver of economic progress (Kasper & Streit, 1998; Leff, 1979). And entrepreneurship is a consequence of a country’s development – specifically the adoption and development of institutions that encourage the entrepreneurial aspect of human action. Stimulating entrepreneurial action will in turn spur economic development and growth. Therefore, if economic growth is the goal, attention should be paid to achieving the institutional mix that encourages the entrepreneurial aspect of human action. (Peter J. Boettke and Christopher J. Coyne, 'Entrepreneurship and Development: Cause or Consequence?')

In any country, the existing state of economy is most important factor, which needs to be understood to do an analysis on prospects of Entrepreneurship. WEF (World Economic Forum) Global Competitiveness Report identifies three phases of economic development based on GDP, per capita and the share of exports comprising of primary goods. These are (a) the factor-driven phase dominated by subsistence agriculture and extraction businesses, with a heavy reliance on labor and natural resources, (b) the efficiency-driven phase, further development is accompanied by industrialization and an increased reliance on economies of scale, with capital-intensive large organizations more dominant and (c) the innovation-driven phase, businesses are more knowledge intensive, and the service sector expands.

Global Entrepreneurship Monitor 2010 Global Report places Indian economy in the phase of factor driven economy. Even in this group of economies, India has lower Percentage of Early-Stage Entrepreneurs. Following are other important findings (given in the report) on factor driven economy 

1.    Total Early-Stage Entrepreneurial Activity (TEA) includes individuals in the process of starting a business and those running new businesses less than 3 ½ years old. These rates are highest for the factor-driven economies, and decline with greater development levels.

2.    While the factor-driven economies have the highest TEA rates, they also have the highest proportion of necessity-driven motives, where entrepreneurs are pushed into entrepreneurship because they need a source of income.

3.    Individuals in factor-driven economies tended to generally rate more positively on the attitude measures, with declining patterns exhibited with higher development levels.

4.    The factor-driven economies have, on average, the lowest level of international customers.

When it comes to Innovation, India was ranked at 62nd position in the 2011 edition of the Global Innovation Index rankings. The scenario for Innovation in India can be summarized in the following excerpts taken from Business Line (article - 'India slips to 62nd rank in innovation: Report' published July 01, 2012)

“The Global Innovation Index is computed as an average of the scores across inputs pillars (describing the enabling environment for innovation) and output pillars (measuring actual achievements in innovation), a WIPO (World Intellectual Property Organization) statement said. It added that five pillars constitute the Innovation Input Sub-Index: ‘Institutions,' ‘Human capital and research,' ‘Infrastructure', ‘Market sophistication' and ‘Business sophistication'. The Innovation Output Sub-Index is composed of two pillars: ‘Scientific outputs' and ‘Creative outputs'. The Innovation Efficiency Index, calculated as the ratio of the two Sub-Indices, examines how economies leverage their enabling environments to stimulate innovation results.

India comes in at 44th on the Output Sub-Index, within the top 30 on labour productivity growth (21st with 4.5 per cent) and computer and communications services exports (4th globally, with 70 per cent of total commercial service exports).

It also has positions within the top 40 on two knowledge diffusion indicators: high-tech exports (32nd, at 6.34 per cent of GDP) and FDI net outflows (38th, at 1.08 per cent of GDP). On creative outputs, it ranks 39th on national feature films produced, 22nd on daily newspapers, 9th on creative goods exports, and 29th on creative services exports.

India's position, however, is dragged down by its poor performance on the Input side (ranked 87th): India is in the last quintile on sub-pillars business environment, elementary education, tertiary education, and knowledge workers.

But the country has high marks (within the top 40) on R&D (35th); general infrastructure (11th), a result driven by its 9th position on gross capital formation (at 35 per cent of GDP); and investment (15th), a result driven by a deep and dynamic stock market.”

It is given in chapter 13 (Human Development) of Economic Survey 2011-12 Report that, the census projection report shows that the proportion of working age population between 15 and 59 years is likely to increase from approximately 58 per cent in 2001 to more than 64 per cent by 2021. In absolute numbers, there will be approximately 63.5 million new entrants to the working age group between 2011 and 2016. Accordingly, a three-tier institutional structure on Coordinated Action on Skill Development consisting of (i) the Prime Minister’s National Council on Skill Development(NCSD), (ii) National Skill Development Coordination Board (NSDCB), and (iii) National Skill Development Corporation (NSDC), has been constituted.

Further, to enhance prospects for innovations and entrepreneurship, a national plan to develop skillful workforce (at all levels) would need to be addressed to meet the future demands of human resource.  The recent economic growth has been driven by dissemination of technology and expansion of services sector in India. And what has significantly contributed to make all this happen is the initial edge India developed in business of revolutionary ICT technology. So far, India has catered well in developing sufficient skills required for complexity and diversity of ICT business. A World Economic Forum (WEF) in the year 2010 reported that India will face huge skills gaps in some job categories due to low employability over the next 20 years and also warned of a looming global labour crisis. Indicating on future talent shortages, Piers Cumberlege, senior director, partnership, at the World Economic Forum had said that "Today's high unemployment rates mask longer-term talent shortages that may affect both developing and developed countries for decades". The report calls on governments, companies, educational institutions and international organizations to collaborate systematically to address talent shortages and increase talent mobility.

There is tremendous scope to boost innovation and entrepreneurship through systematic development of suitable business environment. But, it should also be taken into cognizance that eroding traditional paradigm of “Distributed Production” (Economy of Livelihood) is resulting in unemployment (more so for illiterate and unskilled population). In the prevailing patriarchal social set-up in India, this is further causing migration of male population (in search of jobs) into cities (increasing number of 'Environmental Refugees'). In the process rural females are becoming poorer (a phenomenon known as 'Feminization of Poverty'). All this is suggestive of a changing patterns of earnings in society, which appears to be much favorable for a certain class of skilled labors, but not so favorable for larger mass of unskilled or illiterate labors. Therefore, an analysis of available capabilities of earning across different sections of society could be carried out. This will become basis for doing balancing act by strategic promotion of industrial development (for mass production) in selected sectors (like ICT, Steel, Cement, where skilled people would be absorbed) to leverage skilled workforce, but at the same time taking conservative approach in certain traditional sectors (like say agriculture, fishing, which have been traditionally fort of unskilled laborers) to facilitate livelihood of unskilled workforce. And then, in follow up it may be advisable to chart out a development plan for traditional sectors to promote systematic modernization through step by step process in such a way that labors dependent on these sectors do not lose their means of livelihood and slowly start adapting to use of newer ways in traditional sectors.  

Following could be prime considerations for the way ahead in this dimension:-

a)    Selective promotion of Innovation and Entrepreneurship (through suitable legislation and adoption of appropriate policies) in such a way that a balance between Mass Production and Distributed Production is established for larger benefit of society.

b)    Developing ecology and supportive environment for business to prosper.

c)    Human resource development as per future prospects in business and academics.

REEFERENCES:-

Please refer to REFERENCES section given in the blog ‘ICT FOR DEVELOPMENT IN INDIA’

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A GLIMPSE OF E-GOVERNANCE FOR DEVELOPMENT IN INDIA

Anti-poverty programs of government have multi-dimensional benefits. Esther Duflo, an economist at the Massachusetts Institute of Technology known for her data-driven analysis of poverty argued that the effects of some anti-poverty programmes go beyond the direct impact of the resources they provide. These programmes also make it possible for the very poor to hope for more than mere survival. (published in 'The Economist' on May 12th 2012 under Free Exchange). This shows how welfare schemes help in creation of positive attitude to utilize the improving socio-economic environment, eventually accelerating the entire development process.

Ensuring that benefits reach to intended group of people is difficult, while implementing welfare programs targeted at poor. It is getting wide acceptance that ICT can reduce poverty by improving poor people's access to information, education, health, government and financial services. ICT also helps in breaking the cycle of disadvantaged (say by connecting small farmers and artisans to markets or by reducing information asymmetry across different classes in society). Moreover, ICT contributes to efficient management of efforts of government targeted at welfare of general public and also at eradication of poverty. Therefore, establishment of E Government is being seen as a means to improve implementation of welfare schemes not only by increasing tractability of allocated funds in different programs till grass root level, but also in improving functioning of government to make it more agile, sensible, transparent and accountable to its citizens.   

In the global sphere, in E Governance Development Index (United Nations e-Government Survey 2012) India is ranked at 125th position. Findings of the survey report suggests that the steady improvement in all the indicators of the e-Government Development Index has led to a world average of 0.4877 as compared to 0.4406 in 2010. This reflects that countries in general have improved their online service delivery to cater to citizens needs. Despite progress there remains an imbalance in digital divide between developed and developing world, especially in Africa. The report has highlighted that there is an increasing gap between e-service availability and usage (mentioned in Chapter 6 – Expanding Usage to Realize the full Benefits of e-Government). The above survey also found that many member states are moving from decentralized single-purpose organizational model, to an integrated unified whole-of-government model, contributing to efficiency and effectiveness.

In India, implementation of E Government is being carried out with a strong intent to use ICT as a means to serve the citizens in a better way. NeGP (National eGovernance Plan) has been designed in a systematic way to create a suitable environment, where electronic delivery of government services can take place across the country, in a seamless manner. It is widely being expected that implementation of e Governance will usher a new era in Indian public administration which would empower citizens, bring good governance in practice and be instrumental in living up to the public expectations on reforms being implemented through Right Based Approach (Right to Information, Right to Education, etc).  

NeGP comprises of 27 Mission Mode Projects (MMPs) encompassing 9 Central MMPs, 11 State MMPs and 7 Integrated MMPs. As of date, all Central MMPs have crossed the stage of conceptualization and moved to design-and-development and implementation stages, schemes having been approved for 8 of the 9 MMPs. All Integrated MMPs have crossed the stage of conceptualization, schemes having been approved for 6 out of the 7 MMPs. With respect to State MMPs, schemes for 5 MMPs have been approved and scheme preparation for 3 out of remaining 6 MMPs is in advanced stage. (source: http://www.indiaegov.org/negp.html)

However, going ahead with e Governance initiatives is not an easy task. It needs tremendous efforts to change the government culture and government routines evolved and stabilized long back in history and being practiced over decades. This is evident from the following facts mentioned in report published by Grant Thornton (Project Management in e-Governance – Issues and Challenges in Navigating to New Normal, September 2011):-

a)     It is time to reflect and debate on ‘Strategic Shifts’ that need to be institutionalized in the e-Government ecosystem for the next wave of e-Government Reforms contemplated by Government agencies such that the distant dream of e-Government becoming the ‘new normal’ for government in its ‘public service delivery’ is realized.  

b)    Only 15% of e Governance projects succeed (with all stakeholders benefited and with no adverse results). 

Major challenges in execution of e-Government Projects in India are listed as under:-

a.    Lack of Citizen Centricity and Service Orientation in Public Service Delivery

b.    High Resistance to Change

c.    Problem of establishing Person Identities

d.    Lack of Process Orientation

e.    Lack of Integrated Services

f.     Poor Information Management, Project Management in Government Offices

g.    Poor Understanding of Technology within Government

h.    Poor Capabilities of Human Resources within Government

i.      Poor Computer Awareness in rural areas

j.      Inflexible Inter-department communication

k.    Legal Issues in Government Process Re-engineering

l.      Huge Population with Cultural Diversity and Different Languages

m.   Lack of Continuous Power Supply / Internet Connectivity in remote areas

n.    Implementation is required in areas of difficult Geographical Terrains

National eGovernance Plan (NeGP) seems to be going ahead with following strategy:-

a.    Capacity Building in Government Organizations (Develop Capability to scale up and meet the demands of quality and volume in implementation of eGovernment)

b.    Top-Down Approach for increasing Supply of Services (Institutionalize eGovernment by making initiatives driven by department leadership)

c.    Bottom-Up Approach for increasing Demand of Services (Generating Awareness at Grass-Root Level to take eGovernment at the centre of Political Spectrum)

d.    Well directed Programs for step-wise evolution of e Government Platform (interlinked systems of departments, which are seamlessly working to present a single view of government to its citizens)

e.    Impact Analysis and Assessment of e Government Projects (Feedback mechanism to assess success of projects on intended objectives to do performance reporting on tax-payer funded e Governance investments)

REEFERENCES:-

Please refer to REFERENCES section given in the blog ‘ICT FOR DEVELOPMENT IN INDIA’

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BUSINESS INNOVATION AT SPOTIFY

(The Company launched in 2008 provides Audio Streaming Services for Music)

  

Spotify, the audio streaming company is serving to more than 2.5 million paying subscribers and a much bigger nonpaying subscribers. The company is believed to be one of the most promising prospects amongst other big players in DIGITAL music business like iTunes Match, Pandora, Rdio, Grooveshark and MOG. This post is an attempt to understand the business of the company.

What does SPOTIFY offer to Customer?

Spotify customers get free of cost access to music library available with the company on internet. Music can be accessed anytime anywhere through PC, Mac, Home Audio System and Mobile Phones. Also, customers can use Facebook to share (post/directly send to a specific friends) music of their choice within their social networks. Music can also be shared over Flickr, Twitter and YouTube. The Spotify library has millions of tracks.

Music can be browsed by artist, album, record label, genre or playlist as well as by direct searches. On desktop clients, a link allows the listener to purchase selected material via partner retailers.

Initial subscription for Free Services gives unlimited access during trial period. After the trial period is over, Spotify will have a listening limit (of say ten hours per month) under Free Services category. Advertisements played in Free Services become source of income for the company. Upgrading to an "Unlimited" paid subscription removes advertisements and time limits. Premium subscription (costlier than Unlimited subscription) gives access to privileged services like Offline Mode for personal play lists, enhanced quality of music, access to mobile applications and option to take music abroad.

Presently the services of Spotify are available only in a few countries of Europe and the USA. To go truly global with its services, the company is trying to work out licensing arrangements with record labels and local publishing rights societies. An active Facebook account is required to use Spotify, unless the user has registered for a Spotify-only account before 22 September 2011. Subscriptions are restricted to people with credit/debit cards or PayPal accounts registered in certain countries.

What Value Proposition does SPOTIFY proposes? 

1. The key value proposition for customers of Spotify lies in doing away with efforts of downloading, storing and arranging the music.  
2. Access to authentic music from legitimate source may also make a good value proposition for some of the customers.
3. Customers need to pay only for access to tracks and do not buy tracks (either in digital or physical form). This may enable customers with unlimited access to variety of tracks for a given period of time. Time, Internet Accessibility and Devices to Play Digital Music are the key enabling resources for the services.  
4. Net savvy customers may see value in use of social network for sharing music and may like being a part of music related events on internet.

Where is SPOTIFY placed in Evolutionary Industrial Dynamics of Music Industry?

Spotify has introduced a new way of doing digital music business. Leveraging on the internet technology, it facilitates online streaming of music. This may be considered as natural move from the paradigm shift in music business brought about by changes in technique of storage and accessibility.

(PLEASE CLICK ON THE SOURCE URL FOR CLEARER PICTURE)

(Source: http://visually.visually.netdna-cdn.com/EvolutionofMusicTheimpactofDigitalontheMusicIndustry_4e65e14a30aa1.jpg

data - Recording Industry Association of America, Shipment database 2011, International Federation of the Phonographic Industry – Recording in Numbers 2011)

It is evident from the details shown in the figure that the phenomenon of Digital Music (‘Music Streaming Services’, ‘Music Download’ and ‘Music Locker’) is beginning to disrupt industrial dynamics of music industry (please refer to the graphs , ‘TYPES OF DIGITAL MUSIC SERVICES’ and ‘GLOBAL UNIT SELL OF LP / CASSETTES / CD / DIGITAL’). There has been a surge in sale of digital music and decline in sale of physical music (please refer to the graph, ‘SALE OF PHYSICAL AND DIGITAL MUSIC’). Experts suggest that CDs would continue dropping a steep 40 percent from $3.8 billion in revenue for 2010 to just $2.7 billion in 2012. It can also be observed that previous disruptions brought about by Cassette and by CD have made the transition in growing market, while DIGITAL disruption is taking place in reducing market.

Worldwide decline in sales of music industry is attributed to piracy of music. It is widely believed that online piracy through the medium of internet is more prominent than roadside piracy of physical music. It is widely believed that two-way approach is necessary to solve the problem, first to enforce stringent piracy laws and second is to promote new innovative business models for subscription services through internet portals.

  

However, it has been reported very recently (in Business Insider) that “Total U.S. music sales actually grew for the first time since 2004. They were up 0.2%, just topping $7 billion. The reason: digital sales were up 9.2% during the year, and physical sales (mostly CDs) dropped only 7.7%, which is smaller than in recent years. There were some other interesting notes as well:  

• Subscription service revenue is growing
• Album downloads are growing like crazy
• CDs are still the biggest seller by far  
• People spent more than $100 million on vinyl records last year” 

Clearly there are evidences of upward surge in music industry with prospective future for subscription services.

In short period of time, Spotify has established itself well in the niche market of audio streaming of music. It is in a position to consolidate its position by adopting innovative approaches for streaming music suitable to diverse cultural, socio-economic and legal situations in different countries across the globe. Bringing well established artists and music houses to collaborate with it would be another area which may need attention.   

Last year, it was published in ‘mediadecoder.blogs.nytimes.com’ that “Spotify’s performance has been closely monitored by the music industry, which sees it as a kind of litmus test for the viability of digital music by subscription, which pays labels each time a listener streams a particular song. That system brings in lower royalties per song than downloads, but with a large enough listener-base could in theory bring in substantial amounts.”

Which market SPOTIFY is targeting at?

Those people who:

1. Listen to music frequently
2. Value variety in music
3. Like to explore new music
4. Share music with friends
5. Easily access internet through electronic medium
6. Have internet access available when they like to listen to music
7. Prefer integrated facilities on one electronic device
8. Do not like to download and manage music on personal storage devices
9. May pay for better quality of music
10. May pay for additional facilities for the sake of improved music experience (like say for music without advertisement)
11. Like internet-surfing and may feel more comfortable with music available on internet

   

What are the key Differentiators for SPOTIFY? 

1. Music on Demand through internet
2. Huge database of music, which is consistently introducing new music
3. A new way to catch attention of customers for commercial advertisements
4. Source of revenue is Customer base (not the sale of tracks)
5. Enhanced facility to share music on internet through Social Networking sites
6. Institutional support to musicians having untapped potential
7. Enhanced ease of experimenting new type of music
8. Data for a better understanding of personal music preferences of customers

  

What is the Business Model of Spotify?

Spotify assumes that there is a huge market for free music available online. On capturing a significant proportion of the market share Spotify would be well placed to use its customer base for inviting advertising community for commercial advertisements to be played with music delivered online (say in between the tracks). Advertisers will have the privilege of using enhanced precision for selection of target audience (based on accumulated data for music preferences by customer groups). Advertisers would make advertisements keeping in mind the taste of music lovers. It is assumed that such type of advertising may be a new way of invoking customer attention towards advertised products and advertisers would be willing to pay to Spotify for advertising. It is also assumed that customers (availing free services) would not dislike interruptions by advertisements on the way to listening to their favorite numbers. Revenue generated through this mode would mainly depend on a) volume of Free Services subscribers and b) price advertising community would be willing to pay for advertisements.   

Spotify may have lower price for subscription for customers, who choose to opt for ‘Unlimited’ version of subscription. For those customers, who may like to enjoy a full set of additional services (Premium Services) for increased accessibility or for better quality of music, Spotify has a provision for Premium subscription. Revenue generated through these modes would mainly depend on volume of customers of Spotify, who prefer to subscribe to paid services.

Following location specific factors may be key to success of the business model:-

a) Music loving population with culture of listening to music

b) Existence of suitable piracy laws and their implementation

c) Sense of appreciation for new and different music among music lovers

d) Internet penetration and availability continuous power supply

What Paradigm Shift Spotify brings through audio streaming?

Efforts of Spotify may significantly impact in the community of musicians. It may help new musicians to reach larger audience with greater ease.

This business may contribute towards reducing long and complex value chain in the process of introducing new music to audience. In the existing scenario, the new and struggling musicians face great difficulty in taking their music to audience. One of the main reasons for this is the risk-averse approach of business community involved in taking music to audience. Looking into the amount invested in rollout of a new music album, the risk involved in getting non-established musicians publicly accepted is high. Spotify may challenge the existing paradigm (of releasing music albums) by significantly reducing the cost of releasing new numbers to public. Cost would only be incurred in recording, hosting and promotion but not in manufacturing or distribution of CDs. This may contribute towards making world of music a level playing field for new comers with respect to established musicians. This will usher fair competition and encourage innovation. This may help in bringing new dimension to creativity among musician and help in promoting excellence in world of music.

  

References:

http://www.spotify.com/int/
http://en.wikipedia.org/wiki/Spotify
http://visually.visually.netdna-cdn.com/EvolutionofMusicTheimpactofDigitalontheMusicIndustry_4e65e14a30aa1.jpg
http://kaleazy.com/digital-music-will-finally-surpass-physical-cd-sales-by-2012/
http://arstechnica.com/tech-policy/news/2010/04/piracy-problems-music-industry-grew-in-13-markets-in-2009.ars
http://mediadecoder.blogs.nytimes.com/2011/10/10/spotify-loss-widens-despite-higher-revenue/?nl=technology&emc=techupdateema3
http://www.booz.com/uk/home/what_we_think/40807640/40807984/46413352
http://articles.businessinsider.com/2012-03-27/tech/31243825_1_music-sales-spotify-album-downloads
http://www.ifpi.org/content/section_news/20100428.html
http://www.thefreelibrary.com/Booz-Allen+Report+Anticipates+Major+Changes+And+Opportunities+for+the...-a075655989
http://www.lockergnome.com/media/2011/11/30/is-spotify-keeping-up-with-its-competitors/

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TIME TO THINK ABOUT ELECTRONIC DATA RETENTION POLICY

Organization and retrieval of information are the basis for efficient operation and for compliance of legal requirements in any organization. In government organizations, there already exist a set of well established processes (and standards) for management of information stored in conventional paper based documents. However, in recent times, the digital revolution has marked the beginning of the information age, where dynamics of information management have undergone a radical shift. Enhanced capacity and increased flexibility of data stored in electronic format require a new approach to data retention policy in line with newly established norms in the digital world.

      

In relation to this, an article was published in CIO.IN with title 'Indian IT Depts.: Information Retention? We Don’t Care!' on 21st Nov 2011. The article is based on the survey done by Symantec. Excerpts from the above article are as under:

1) "...Surprisingly enterprise IT departments don’t think a information retention plan is important"

2) "Currently, India has no central Act which lays down provisions related to data retention laws, according to Symantec"

3) "According to Symantec’s findings, India organizations take an average of 10 days to provide their lawyers with information they need to make an early case assessment--compared to five days globally"

(for details, please refer - http://www.cio.in/news/indian-it-depts-information-retention-we-don-t-care-196462011)

Under NeGP (National eGovernance Plan), 'State Data Centers' (SDCs) are being established in the federal states/union territories in India. Data retention is being given due importance in SDCs. Provision for data retention has been elaborated under "Data Retention Plan" in  section 12 of 'Guidelines For Technical and Financial Support For Establishment of State Data Centre (SDC)' issued by the DIT (Department of Information Technology, Government of India). Details (as mentioned in the guidelines) are given as under:

"12.0 Data Retention Plan

12.1 The State would formulate an appropriate Data Retention policy and ensure that the data centre architecture supports the same. The Data Retention Policy would be guided by the following factors:

a. Data classification and risk assessment of data.
b. Data Retention Period.
c. Data Security aspects.
d. Disposal of data once the retention period is over."

(for more details, please refer: http://www.mit.gov.in/sites/upload_files/dit/files/downloads/sdc/guidelines.pdf)

Ensuring a clear understanding on classification of data helps in better information processing within an organization. In general, data can be classified on the basis of legal, business and personal relevance. However, online availability of data on internet and use of ubiquitous mobile devices to access data have increased the significance of additional classifications of data on the basis of user authorization, user authentication and sensitivity to security. In future, once platform evolution of e-government enables seamless information exchange across departments, the expectations for continuous improvement in governance through self assessment and self learning processes based on statistical analysis of accumulated data would further increase complexities of data classification, data exchange and data retention.

To meet the challenge, an early move towards adoption of data retention policy is important. Systematically designing organizational change management and capacity building to support strategic information management could be helpful in evolution of next generation government organizations (or departments), which would manage public data with greater efficiency. 

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Related Information:

Notification has been issued for 'Policy on Electronic Record Retention & Preservation' by the Departments of Information Technology and Bio-Technology, Government of Chhattisgarh on  27 SEP 2013. This can be referred at following link:-

http://www.chips.gov.in/sites/default/files/No._450_and_451_English.pdf

WHY IS THE NEED TO PROMOTE FINANCIAL INCLUSION?

Following is the excerpt from an article "Who’s afraid of Aadhar?" by Pratap Bhanu Mehta, published in 'The Indian Express' on Wed Jan 25 2012:-

".... here is a simple true story. A domestic help in Gurgaon wanted to open a bank account. The bank account was important for a number of reasons. Small savings would lose their value if they did not earn interest and, at that margin of poverty, even a few rupees mattered. Vulnerability to violence was likely to increase if the money was kept in possession. She approached several banks to open an account. Despite having West Bengal identity papers, ration card and election card, she was turned away. Banks would refuse to recognise these papers. Despite being “introduced” by people who presumably had sound standing, banks simply refused to open her account. Public sector bank managers were asked why they were refusing to open an account? Did they not have a mandate for financial inclusion? The answer came, “Poor people’s accounts remain dormant.” But more often, the response was “the identity papers are not adequate.” When asked why, the response was “these have been issued in West Bengal. We cannot trust them. The lady might be Bangladeshi.” Eventually, a public sector bank agreed to open the account, but only after an incredible weighty Know Your Customer process was brought to bear.

This story was staggering at many levels. It illustrated the difficulty migrant workers had in opening bank accounts. Identity in India is not portable; it has been made too place-specific, too difficult to authenticate. In this case, despite the fact that there were some identity papers, they were declared untrustworthy. The constant refrain was: “We don’t know who these people are” — even when asked, “why did that matter? After all you are going to hold her money, not the other way around”. " (http://www.indianexpress.com/news/whos-afraid-of-aadhar/903580/ - as accessed on 01 MAR 2012)

Apart from illustrating the difficulty faced by migrants for getting an access to banking facilities due to non-portable nature of identity proofs issued in India, the story highlights following important points:-

1) There is a need for financial inclusion, further:

• Uneven development at rapid pace may only add to the need for financial inclusion.
• Modernization is expected to bring about changes to the traditional means of livelihood for financially excluded citizens. Financial inclusion may help in supporting systematic and sensible transitioning in this regards.

2) Returns from micro-financing is not seen as a substantial addition to profitability by the existing banking system, following efforts in this regards could be helpful:

• Banks deploying innovative financial instruments targeted at financial inclusion could be given special privileges/attractive benefits (like tax-benefits, infrastructure support) based on number of financially excluded citizens these banks may help in becoming financially included.
• With significant volumes of new financially included account holders on board, banks may start considering them as a target market and streamline their strategy to focus on their banking needs. Thereafter, there is a possibility that these banks themselves may find it interesting (lucrative) to explore ways to convert dormant account holders (belonging to the low income group citizens availing banking facilities on getting financially included) to active account holders.
• Close association of banks with the low earning capacity people (as their market) may enable banks to understand the financial behavior of different segments in this market. The learning will eventually help in funding (through credible financial mechanism) entrepreneurial endeavors at the grass root level.

3) Probably, majority of financially excluded citizens are themselves not serious to get financially included, therefore this issue is not getting prominence in political agenda. Following could be promoted in this regards:

• State initiated programs (like benifit for rural un-employed citizens, medical insurance for Below Poverty Line citizens) may be linked through banking services to the beneficiaries to give initial push towards financial inclusion.
• Awareness programs to make people understand the importance of saving and the benefits of banking services may be launched by the state.

4) Needy citizens face difficulty in getting access to basic banking services, in this regards:

• Available infrastructure for IT enabled services (in banking sector) may be easily scaled up to expected volumes.
• Business process re-engineering taking into consideration the requirements for financial inclusion may be required for the special services targeted for financial inclusion.

5) Unskilled labour working as 'domestic help' belong to the unorganized sector in India, probably:

• It may be helpful to develop an institutional mechanism for the sector.

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