The IT and Digital Economy Department of the Macro-Financial Policy Study and Research Center of the Policy Studies Institute (PSI) presented a research proposal titled "IT Governance In Ethiopia Public Sectors: The Need For Policy Intervention" on February 23, 2024 at the PSI premises. The research team consists of PSI and Addis Ababa University staff including Fikirte Zemene, Getahun Wassie, Teshome Alemu and Dr. Melkamu Beyene.
Presenting the proposal, Dr. Melkamu explained that we are currently in an information technology revolution where IT plays a crucial role in the success of businesses. Many organizations are adopting and investing in IT, although the success and profitability of IT projects vary depending on the organization and context. Unfortunately, most IT investments do not yield the desired results and some even fail. This trend is particularly pronounced in developing countries such as Ethiopia.
Dr. Melkamu emphasized that Ethiopia has shown political commitment to digital transformation in response to IT challenges. Several policy reforms have been implemented to facilitate this transformation, including the ten-year development plan "Digital Ethiopia 2025" (2021–2030), the Personal Data Protection Proclamation, the Payment Issuer Licensing and Authorization Policy, the National Digital Payments Strategy the National Digital Skills Action Plan, the Banking Licensing and Supervision Directive, the Electronic Transactions Proclamation, the Start-up Proclamation, the Ethiopian National Entrepreneurship Strategy, the Communication Services Proclamation and the Ethiopian ICT Policy.
Dr. Melkamu explained that in terms of organizational structuring, Ethiopia has established institutions such as the Ethiopian Communication Authority and the Artificial Intelligence Institute together with the Ministry of Innovation and technology to drive the digital transformation agenda.
Despite these efforts, however, no significant impact has yet been achieved. Challenges faced include difficulties in implementing and enforcing some measures, limited organizational capabilities to achieve sustainable digital transformation, lack of coordination between different institutions and organizations, and the perception of IT departments as mere support functions rather than key business drivers. Furthermore, sectors are not developing digital strategies that align with their strategic objectives, leading to duplication and fragmentation within and between sectors. Furthermore, sustainable and scalable digital initiatives have not been launched and there is a lack of accountability in IT leadership.
Dr. Melkamu said that based on these observations, a hypothesis is put forward suggesting that the public sector should adopt an IT governance framework. It is believed that proper implementation of IT governance can lead to improved organizational performance through IT investments.
Dr. Melkamu said that IT governance is described as a concept that has regained popularity as the strategic importance of IT has been recognized. Senior management is expected to work with IT leaders to ensure that technology investments effectively support the achievement of business strategies. IT governance means controlling the formulation and implementation of IT strategy and steering it in the right direction to give the company a competitive advantage. It includes aspects such as strategic alignment, value creation, performance management, resource management, risk management and effective evaluation, selection, prioritization and funding of competing IT investments, as well as monitoring their implementation and measuring the resulting business benefits.
As a problem statement, Dr. Melkamu explained that information technology has experienced significant growth and increasing importance globally. However, in the Ethiopian public sector, the level of IT governance implementation is very low. There is a significant lack of awareness and understanding of the need for proper IT governance among public sector leaders in Ethiopia. As digital transformation is becoming a major issue, the problems caused by inadequate IT governance have become evident based on preliminary findings. Ethiopia is unique in this regard as the industry framework cannot be directly applied to the Ethiopian context. IT governance has become an umbrella term that encompasses various aspects. This topic has become a differentiator between countries as they approach IT governance in different ways.
Dr. Melkamu emphasized that the study aims to answer several important questions about IT governance in the Ethiopian public sector. First, it aims to identify the major factors that hinder the adoption of appropriate IT governance practices in the public sector in Ethiopia. By understanding these barriers, it will be possible to develop strategies to overcome them and promote effective IT governance. Second, the research aims to identify best practices that can be useful for the implementation of IT governance in the Ethiopian context. Based on the existing literature and examination of successful examples from other countries, this study will identify approaches and methodologies that can be tailored to the specific needs and challenges of the public sector in Ethiopia. Third, the study aims to develop an appropriate IT governance framework that is specifically tailored to the public sector in Ethiopia. Considering the uniqueness of the Ethiopian context, including infrastructure, human resources and sector-specific requirements, this study will develop a framework that is aligned with the strategic objectives of the public sector and addresses the challenges in implementing IT governance.
Finally, the study aims to explore policy measures that can promote the adoption of IT governance in the Ethiopian public sector. By examining the policy landscape and understanding the role of government interventions, this study aims to provide recommendations for policies that can promote the adoption of IT governance practices and create an enabling environment for their implementation.
This study will make significant contributions to the field of IT governance, particularly in the context of developing countries like Ethiopia. It will address the existing research gap by providing valuable insights into the unique challenges and opportunities of IT governance in this specific context. The study will emphasize the need for practicable, sustainable, and scalable IT governance practices, highlighting the importance of infrastructure, digital capabilities, and human capacity. It will also advocate for the alignment of IT governance with strategic objectives, promoting coordination and integration across sectors. The research will emphasize accountability in IT leadership and explore challenges related to system development, data analytics, and lifecycle management. Additionally, the study will address issues of technology transfer, local capacity building, data sovereignty, and national security. By tackling these challenges, the research aims to contribute to the development of a robust IT governance framework that supports Ethiopia's digital transformation and aligns with the country's broader development goals.
Dr. Melkamu explained that the Ethiopian government has drafted a comprehensive digital transformation plan with the aim of transitioning to a digital economy. This strategy includes a specific recommendation to focus on the transformation of four sectors that are considered key economic drivers: the Ministry of Agriculture, Mines, Tourism and the Ministry of Innovation. Various IT-related organizations were selected to implement effective IT governance practices, including the Public Service Commission, the Ethiopian Plan and Development Minister(ESS), the Ministry of Finance, the Ministry of Health, the Procurement Authority and INSA. By including the health sector in this selection, the aim is to gain insights into sector-specific factors that influence IT governance.
The planned IT governance framework takes into account five dimensions that form the basis for its implementation. These dimensions are strategic alignment, resource management, performance management, risk management and value delivery. Strategic alignment is about ensuring that IT governance practices are closely aligned with the strategic objectives of the public sector. Resource management focuses on the efficient allocation and utilization of IT resources, including infrastructure, human capital and financial investments. Performance management involves establishing performance metrics and monitoring mechanisms to assess the effectiveness and efficiency of IT governance practices.
Risk management is about identifying and mitigating potential risks and vulnerabilities in connection with the implementation of IT governance. This includes assessing and addressing cybersecurity threats, data privacy issues and other operational risks. Finally, value creation emphasizes the need to maximize the value and benefits of IT investments and initiatives and to ensure that IT governance practices contribute to the overall performance and success of the business. By considering these five dimensions within the theoretical framework, a comprehensive IT governance framework tailored to the Ethiopian public sector will be developed. This framework will provide guidance and strategies for effective IT governance implementation, taking into account the unique challenges, requirements and objectives of the public sector in Ethiopia.
The research approach for the study is qualitative and aims to gain deep insights and understanding of the factors influencing IT governance practices in the Ethiopian public sector. Qualitative research methods allow for a comprehensive exploration of the topic and provide rich and contextualized data.
The target population of this study includes the public sectors of Ethiopia, with a focus on the sectors identified as priority areas under the Digital Ethiopia 2025 initiative. These sectors include the Ministry of Agriculture, the Ministry of Culture and Tourism, the Ministry of Innovation and the Ministry of Planning and Development. The study will involve people at different levels within these sectors, including Chief Information Officers (CIOs), Lead CIOs, Ministers, ICT Directors, IT experts and IT vendors.
To collect data, the researcher will use both primary and secondary data sources. Primary data will be collected through methods such as interviews, focus groups and observations. These methods allow for direct contact with the target audience, allowing the researcher to gather first-hand information and perspectives on the barriers and challenges to implementing IT governance.
Secondary data sources will be used to supplement the primary data and provide a broader context for the study. These sources may include existing literature, reports, policies and relevant documents related to IT governance in the Ethiopian public sector. By applying a qualitative research approach and utilizing both primary and secondary data sources, this study aims to provide a comprehensive understanding of the factors that hinder IT governance practices in the Ethiopian public sector and identify potential strategies and recommendations for improvement.
A primary data source refers to the collection of first-hand information that is current, relevant, appropriate and accurate. For this research, primary data will be collected through interviews with individuals holding various leadership positions in the Ethiopian public sector. These include individuals at the ministerial level, such as Chief Information Officers (CIOs), Lead CIOs and ICT Directors, as well as IT experts and IT vendors. Through interviews, focus groups and observations, these primary data sources will provide valuable insights and perspectives on the barriers and challenges to implementing IT governance in the Ethiopian public sector.
In addition to the primary data, secondary data sources are also used in this study. Secondary data refers to information that has already been collected and documented by others. In this study, secondary data is obtained by reviewing various documents. These documents may include existing literature, reports, policies and other relevant publications related to IT governance in the Ethiopian public sector. The analysis of secondary data will provide a broader context and support the findings and conclusions drawn from the primary data sources. By combining primary and secondary data sources, this research aims to gather comprehensive and well-rounded information that will contribute to a deeper understanding of the factors influencing IT governance practices in the Ethiopian public sector.
Dr. Melkamu mentioned that the research will use different methods of data collection to gather information and insights. In-depth interviews will be conducted with selected individuals from the target population to allow a detailed exploration of their perspectives and experiences related to IT governance. Observations will also be conducted to observe and document IT governance practices in practice. Focus group discussions will provide a platform for group interactions and discussions among participants to gain collective insights and facilitate the exploration of different viewpoints. In addition, document analysis will be conducted to review and analyze sectoral strategic documents and policies, IT strategy documents, digital roadmaps, IT/digital infrastructure, digital architecture, standards and protocols, ICT/digital transformation strategies, structural components of IT organizations, IT jobs, job classifications, incentive packages, IT/IS compliance documents and guidelines or manuals.
Dr. Melkamu explained that purposive sampling technique is used to select respondents from each selected organization. The number of respondents is determined based on the size of the organization and the objectives of the study. The goal of purposive sampling is to strategically select individuals who can provide valuable insights and represent different perspectives and roles within the organization.
Dr. Melkamu mentioned that the research aims to explore the key challenges that impact the implementation of appropriate IT governance in the Ethiopian public sector and to develop appropriate governance frameworks that take into account the Ethiopian context. The assessment of the organizations will be based on seven themes of IT governance value dimensions including strategic alignment with IT, leadership/IT position in the overall organizational structure, skills/capacity and mindset, decision making process, performance metrics, value delivery and risk management.
Dr. Melkamu said a thematic analysis will be conducted to analyze the data collected from interviews, observations, focus group discussions and document analysis. This analysis will focus on identifying and interpreting patterns, themes and relationships within the data in relation to strategic alignment, resource management, performance management, risk management and value creation. In addition, a grounded theory analysis will be conducted, which involves the development of theories based on the data collected during the research process.
For data analysis, the statistical programming language R will be used used as a data analysis tool. R provides a wide range of statistical and visualization features that allow the researcher to effectively analyze and interpret the data.
After the presentation, participants submitted various comments, suggestions and questions, which were addressed by the researchers.