IT Progress Stage and Management Level Growth in Local Governments: The Modeling of the Japanese Government Using Empirical Surveys

Background

IT effects major changes to many activities and many situations. It has especially altered the management of most corporations and organizations, recently including the management of local governments.

The Ministry of Economy, Trade and Industry in Japan has defined the e-transformation stage of corporations. This is composed of four stages. The first stage is “the introduction of electronic computers”. The second stage is “e-transformation of business”. The third stage is “optimization of corporate process”. The fourth stage is “cooperation, integration, and standardization outside the corporation” and “optimization of communications”. The first and second stages are called the stages of the sub-optimization (implementation rate is 65.8%). The third and fourth stages are called the entire optimization stage (implementation rate is 34.2%).

In corporations, e-transformation occurs in the individual business to the complete organization. Furthermore, it has changed to e-transformation of the business between organizations. The local government also has been subject to change from sub-optimization, like individual administrative services such as ledger management and call center installation, etc., to complete optimization such as BPR. These changes include web technology, ICT, and new activities involving citizens and government officers.

ICT has had a significant impact on advanced IT societies. In Japan, most citizens have mobile phones and can access the Internet at home and in their offices and schools. People are able to exchange a great deal of information, resulting in a more interactive society. ICT growth provides business opportunities and raises the importance of good management. Because the use of ICT in general, is increasing, it is important to manage information and activities in local governments effectively.