Cost Benefit Analysis of an e-Governance Module- A Case Study

A. Koomar


Getting the infrastructure and systems right for eGovernance can be a very costly affair – not only in terms of money alone, but, also the efforts and time the organization has to put in to make it happen. The transition from manual to digital processes can be very traumatic for the organization as it impacts not only the work culture, but, tends to upset the whole balance of power in the hierarchy. It is therefore only natural for the top management or the decision authorities to ask whether all this is worth it at all? And on top of that, they naturally expect concrete data rather than a ‘pie in the sky’ promise.

Normally, it is very difficult to calculate the possible returns exhaustively as the soft, yet critical, benefits like improved work culture, better decision making, more customer responsiveness etc quite often tend to be abstract in nature. Estimating benefits of such high order constructs can be very complicated which is still in an embryonic stage and requires lot of highly subjective value judgment by the management.

An actual case study in one state owned Public Utility Corporation is taken to show a quantitative approach. A small case in another state is taken as the base and extrapolated to the organization under study. The current geographical spread is used to extrapolate the projected requirements and benefits estimates derived on market prices and public databases. Then the organization own existing performance data is used to estimate the final likely benefits. The Plan of Action for implementing this system through an integrated strategy implementation approach follows along with the recommendations for the right change management processes. Discussions of its far reaching impact on the organizational work culture and its bottom line is then delineated.