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On-nara Business Processing System
Ministry of Government Administration and Home Affairs

The Problem

In order to enhance national competitiveness in a rapidly changing administrative environment, the Korean government has continuously promoted governmental innovation. In particular, as the government set innovation as a key national agenda, it has driven innovation in strategic and positive manners with the designated departments in charge of innovation projects such as the Presidential Committee on Government Innovation & Decentralization (PCGID) and the Ministry of Government Administration and Home Affairs (MOGAHA). Today, the directions and strategies of government innovation emphasize the innovation on 'work methods and process', rather than structural reforms like reorganization. In other words, the Korean government has endeavored to improve its work methods and process to enhance the efficiency and digitalize them to sustain and settle the innovation.
There had been some criticism on the business processing practices and decision-making methods of the government. First of all, the government's work process was slower than that of the private sector. Moreover, it was difficult to secure administrative transparency and accountability because records of the government decision-making process (information on who proposed what opinions) were not managed properly. A managerial-level official had many difficulties in making accurate and swift decisions since it was difficult to know the real-time work progress of individual departments and the organization. There were also some problems facing replacements in taking over tasks during the personnel changes since the continuity records were not managed systematically. In addition, sharing and utilizing information related to government tasks were not easy because such information was not managed in a systematic and comprehensive manner.
To resolve such problems, the MOGAHA started to develop a business management system for improving the government’s work process. The first step was to analyze government’s tasks (functions) and classify each task to manage it systematically. Based on the first step, the MOGAHA established the BPR (Business Process Reengineering) and ISP (Information Strategy Planning) schemes to increase the efficiency of business processing procedures and to improve the way of working. Through these efforts, a new business management system, the On-nara System, was created.

Solution and Key Benefits

 What is the initiative about? (the solution)
The On-nara System is used in 55 central administrative agencies with 54,000 users. Over 95 percent of official electronic documents that are reported and approved in these agencies are processed through the On-nara System. This shows that decision-making and document management through the System is taking root in the government. In particular, transparency and accountability of government administration have been greatly improved due to the Document Management Card, which records and shows information on people who have participated in the decision-making process (reporter, reviewer, approver), opinions, and revisions (if any). In addition, various information on tasks (task details, person in charge, history, related internal personnel etc) and task progress are recorded in the Task Management Card which makes it easier to share information. With the Task Management Card, managers can now monitor and evaluate task progress on a real-time basis and make reasonable and timely decisions by utilizing relevant data. The On-nara System is contributing to increased democracy of the organization by facilitating communication and participation among people across the organization. In June 2007, the MOGAHA conducted a user satisfaction survey in central administrative organizations.
The survey results showed that over 79 percent of users were mostly satisfied with the system. Government officials responded that with the adoption of the On-nara System, communication and task processing became easier and faster than before, thereby, allowing them to perform their tasks in more systematic and strategic ways. Minister of Construction and Transportation Lee, Yong-sup stated that the On-nara System is a very innovative system that has changed the government officials' work practices and performance management methods, and, if it is well utilized, the government could gain remarkable results. Deputy Director of the Ministry of Education and Human Resources Development Kim, Ah-young said that, with the adoption of the On-nara System, it became easier to handle tasks systematically and to share task schedules and information by utilizing schedule and plan management tools. Now, the On-nara System is turning into a central system for handling all administrative tasks within the Korean government. If the government’s major common systems- Digital Budget and Accounting System, Personnel Management System, Archives and Records Management System, Knowledge Management System, and Information Disclosure System- are connected with the On-nara System, task processing will be much faster and easier, providing better services for the people at the right time. This will lead to increased customer satisfaction and credibility of the government. The On-nara System is the production of government innovation efforts as well as means of enabling sustainable innovation, its value and usage will continue to increase in the future.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The establishment of a business management system was initiated to improve government’s ways of processing tasks in 2003 as it was selected as one of the national agenda of the ‘Presidential Committee on Government Innovation and Decentralization(PCGID)’. The PCGID is an organization consisting of government officials and experts from the private sector (professors and businessmen etc.), and it is in charge of identifying government innovation tasks for each sector, formulating roadmaps, monitoring and evaluating the innovation progress. The project of building On-nara System was selected as a national agenda in the ‘e-government’ sector' in August 2003, after which detailed implementation plans were set out.
The MOGAHA, which is in charge of government innovation, played a lead role in implementing the plans. In the process, Samsung SDS, a private company, signed the contract with the MOGAHA to develop related systems. It is noteworthy that the business management system (EasyOne) for the Office of the President was created before the development of the On-nara system, and the President's active participation and interest was critical in the process. The President himself proposed the development of a business management system to manage tasks more efficiently and record important policy decisions and task process. He also suggested many useful ideas by actively participating in the system development process. He even stayed up late at night discussing the system development with government officials and developers. The President’s keen interest and full support have contributed to the development, fast utilization and settlement of the system.
Under the lead of the MOGAHA, various stakeholders including government officials, advisors on government innovation, professors in public administration and information and communication, researchers, experts from the private sector such as consultants, and engineers from system development companies have participated in the implementation process for developing the system, contributing to the establishment of an unprecedentedly new and efficient business management system.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
In February, 2003, the Presidential Committee on Government Innovation and Decentralization (PCGID) was launched in order to select government innovation tasks and monitor and evaluate the progress. The Ministry of Government Administration and Home Affairs (MOGAHA) in charge of government innovation and e-government proposed plans to improve government business process and build an online business management system. After rigorous review process of the PCGID, the proposed ideas were adopted as a national agenda in August 2003. MOGAHA responsible for implementing tasks drew up detailed action plans, which were produced from multiple rounds of consultations and discussions with government officials of related organizations such as MOGAHA and the Office of the President, commissioners from the PCGID, experts and professors from the private sector, and staffs from system development companies and consulting firms. All these efforts lead to the establishment of a business process management system which is aimed at enhancing work efficiency and transparency and realizing an online cooperation mechanism through vibrant information sharing among administrative agencies by standardizing and managing the government business process and its work methods with online systems. To this end, MOGAHA set up and implemented phased strategies that range from research on new system construction, system development, test-run, to deployment to the entire central government agencies. First of all, MOGAHA formulated BPR(business process reengineering) and ISP(information strategy planning) schemes to analyze business process, methods, and functions of the Korean government and identify problems and solutions. Building on the achievement of these plans, a new online business management system was developed and was first used by MOGAHA. This system was later test-run at five Ministries including the Ministry of Science and Technology and the Ministry of Planning and Budget. The functions of the system were complemented and improved based on the result of pilot operation and user feedbacks, after which the system has been expanded to 55 central administrative agencies.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
‘03. Aug. The online business management system was selected as a national agenda in the e-government sector
‘03. Dec. Detailed action plans were adopted by MOGAHA
‘04. Aug.~Nov. BPR and ISP were promoted to build a government business management system
- ‘BRM (Business Reference Model)' was developed to systematically classify and link government functions
- Task Management Card was designed to manage information and performance related to government tasks
‘05. May Standard model of business management system was developed for general administrative agencies
‘05. July Standard model was used by MOGAHA
‘05. Dec.~’06. Mar. Test-run at 5 Ministries such as the Ministry of Planning and Budget and the Ministry of Science and Technology
‘06. March Regulations on development and operation of a business management system were enacted (Presidential decree)
‘06. July ~ Dec. : Preparation process to expand the system to central administrative agencies (upgrading the system functions and training)
‘07. Jan. ~ Present: Simultaneous operation at 55 central government agencies (Ministries, Offices, and Commissions)

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
There were some difficulties in developing and spreading On-nara System to central administrative agencies. First of all, it was not easy to simultaneously open the system to about 50,000 users at 55 agencies. The fact that all agencies have different digital systems (network, server, and firewall) was a challenging issue. In order to overcome these obstacles, a team in charge of adopting the On-nara System was formed at each organization. This team is a kind of a Task Force Team established for the successful adoption of the On-nara System, and officials from the Task Innovation Team, the Organization Management Team, and the Informatization Team evenly participated in the TF under the leadership of innovation directors from each government agency. In the latter half of 2006, MOGAHA embarked on projects to improve the system functions in preparation for expanding the system. It installed the system per agency starting from October and had those agencies test-run the system for themselves for 2 months of November and December.
In this process, MOGAHA and private experts were involved and supported each agency to be well-prepared for the operation of the system. All these efforts culminated when all central government agencies began to use the On-nara system from January 1st, 2007.
Another challenge was opposition and resistance from public officials at agencies that adopted the system. Individual organizations had their own business processing procedures and methods with the existing business processing system, and, accordingly, they were reluctant to replace it with a new business management system. In the beginning, the rate of the system use was low because it was burdensome and difficult to learn functions of a new system and to add new information with it. In order to overcome this issue, MOGAHA provided presentations and training for diverse range of officials 120 times, such as executive-level training and working-level training, so that they can learn the purpose of the system adoption, system functions , and how to use them. In addition, MOGAHA opened an online service desk (bmshelp.mogaha.go.kr) and a call center which provide real-time solutions to complaints and questions regarding the use and operation of the system ( monthly-average 860 cases were addressed from Jan. 2007 to Aug. 2007) At the same time, various education materials and information such as online educational resources and system manuals were distributed. In addition, in an attempt to facilitate the usage of On-nara system, MOGAHA conducted written research on the results of using the system every month and quarterly visited agencies to monitor the system use and collect opinions. And then, It reflected the monitoring results in government innovation evaluation and rewarded agencies with good performance by giving them extra points. As a result of these efforts and activities, most agencies which adopted On-nara system began processing work and making decisions with the system, showing a stable pattern of system use in 5 months after the adoption.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
For On-nara system, there have been wide-ranging projects for system development, expansion, and advancement, such as BPR/ISP Projects, development of a standard model, test-run at 5 Ministries including the Ministry of Science and Technology, expansion to 55 central administrative agencies and ISP project for linkage with other systems, resulting in a total budget of over 20 million dollars spent so far. This general account budget was secured through the review process of the Ministry of Planning and Budget and deliberation of the National Assembly. Meanwhile, it is planned to undertake projects from November 2007 to connect the On-nara system with major common systems of the government such as budget and accounting system, personnel management system, and integrated public service evaluation system. For this project, a required budget of about 10 million dollars has already been secured.

In order to develop and spread the On-nara system, about 30 government officials from related organizations such as the Presidential Office, the Ministry of Government Administration and Home Affairs, and the Presidential Committee on Government Innovation and Decentralization have continuously participated. In addition, The development project itself was outsourced to a private specialized company by means of contract, and around 150 experts from companies and consulting firms such as Samsung SDS engaged in the project.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The On-nara System will be continuously utilized and advanced as a representative online system of Korea. First of all, it is institutionalized by law that central administrative agencies must adopt and operate the system as a fundamental system for processing work (Presidential decree in March 2006, Presidential instruction in July 2007). In addition, a project has been undertaken since November 2007 to enable information sharing by connecting the On-nara system with common major government systems such as Budget and Accounting System, Personnel Management System, Integrated Public Service Evaluation System, Information Disclosure System, and Archives and Records Management System, etc. For this project, a necessary budget of about 10 million dollars has been secured. This project will be promoted until the first half of 2008, aiming to connect the On-nara system with related 11 systems and operate them together. In addition, for the sake of user convenience, the online service desk and the call center will remain in operation, and MOGAHA, an agency in charge of the system, will continue to provide user training and conduct promotional activities. Likewise, multi-faceted foundations have been laid for sustainable use and development of the system.
Meanwhile, MOGAHA plans to support the system to be adopted by local governments, public organizations, and private organizations even though it is currently used only by central agencies. Presently, a system to classify functions of upper-level local governments is under development, and it is expected that the On-nara system will be utilized at 16 upper-level local government by 2008. In addition, some public organizations and universities are considering the adoption of the system.
The On-nara system is drawing much attention from the international community. At the Global Forum on Reinventing Government hosted by the UN last June (held in Vienna, Austria), government representatives, professors, and experts from the world regarded the system as remarkable and amazing, and some countries and organizations actually inquired about its adoption.
MOGAHA will further promote and introduce the system to home and abroad, and provide necessary information and consultations for organizations which intend to adopt the system based on its experience in introduction and operation of the system.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
The On-nara System is contributing to an efficient and transparent government by dramatically changing the way of working. Managers' leadership was a decisive factor in successfully establishing and deploying the system to central administrative agencies. The Korean President emphasized from the beginning of his term that the government should change the ways it works, and, to this end, began improving business process of the Presidential Office and building its online systems. Based on this, he had other organizations follow the steps and continuously monitored and encouraged them. In addition, with strong passion and commitment, the head and managerial-level officials of each agency supported the system to successfully settle in their organization
Another key to success of the On-nara system is the use of efficient change management strategies. No matter how good the systems are, it is hard to gain good results unless users do not use them. Hence, in order for the On-nara system to be well utilized by administrative agencies, an official in charge at each agency actively conducted user training and promotional activities. In addition, regular monitoring and evaluation on the system use were conducted and the results were factored into individual and team evaluation. The On-nara system usage rate was included in evaluation indexes of performance evaluation of government agencies, thereby evaluating the usage rate of each agency and the interest level of the head.
In addition, the use of the On-nara system has been mandated by law so that it can be continuously used (Presidential decree in March 2006/ Presidential instruction in July 2007). In order to make the system further convenient and useful, a project was undertaken to connect it with other related systems (Integrated Public Service Evaluation System, Budget and Accounting System, Personnel Management System, Information Disclosure System, and Archives and Records Management System) (Nov. 2007 - June. 2008)
As such, the On-nara system will continue to develop as a core governmental system and, thereby, an efficient and transparent government will be realized.

Contact Information

Institution Name:   Ministry of Government Administration and Home Affairs
Institution Type:   Government Department  
Contact Person:   Nam-Joon Chung
Title:   Assistant Minister  
Telephone/ Fax:   82-2-2100-3400
Institution's / Project's Website:   82-2-2100-4012
E-mail:   njchung@mogaha.go.kr  
Address:   Central Government Complex, 55 Sejong-no(77-6 Sejong-no 1ga). Jongno-gu, Seoul, Korea
Postal Code:   110-760
City:   Seoul
State/Province:  
Country:  

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