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ARCHIVED - Performance Measurement for the Government On-Line Initiative

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	Innovation
Indicator(s)	Use and demonstration of innovative Internet applications – establishment of Canada as a leader in the knowledge-based economy and society
Additional explanation of what is being measured	The focus of this dimension of the GOL measurement regime is on information and communication technology (ICT) innovations and their economic impacts – on award-winning on-line services, "readiness" for e-commerce, and e-procurement/e-sales activities. At the same time, it is necessary to recognise that the GOL initiative has only an indirect impact on e-commerce and economic growth. These results are also influenced by global factors such as the political climate, and by country-specific factors such as employment levels, real disposable income, and educational attainment. (Note: broader innovation results can be found in Canada's Performance, report of the President of the Treasury Board to Parliament: /report/govrev/03/cp-rc1_e.asp)
Measurement Level and Technique	Measurement primarily at "whole of government" level using third-party assessments
Primary tool(s)/data source(s)	1) World Economic Forum (WEF) Networked Readiness Index – benchmarks the degree to which countries are capable of using technology to promote economic growth 2) Economist Intelligence Unit (EIU) e-Readiness Index – benchmarks the degree to which countries are prepared to take advantage of, and can maximise, Internet-based commercial opportunities 3) Stats. Can.'s Survey of Electronic Commerce and Technology – collects data on business/government Internet use and sales (with or without on-line payment) 4) GTEC awards (http://www.gtecweek.com/) 5) Omnibus surveys – includes, e.g., EKOS' Information Highway studies
Summary of results achieved in 2003	Mixed – Only a minority of Canadians think that governments (federal, provincial, territorial) are developing and implementing innovative ICT. However, about one-third of GOL departments and agencies win awards for their use of technology in service delivery each year. Internationally, Canada ranks in the top 10 in surveys benchmarking countries' readiness to take advantage of Internet-based commercial opportunities. There is also initial evidence that Canada is beginning to realise this potential for economic growth through the use of ICT.
Raw data	There is a link between work involving ICT and innovation; according to a recent Stats. Can. survey, "more than three quarters of establishments in ICT service industries were innovative between 2001 and 2003, the highest proportion of all industries surveyed" (2004) – Stats. Can. defines innovation as "a new or significantly improved product offered to clients, or a new or significantly improved process" General perceptions 39% of Canadians think that governments are on the leading edge of new technology, down from 42% in 2001 (EKOS, 2003) – In contrast, 52% think that banks are on the leading edge in implementing new technology 2003 GTEC medallists (federal) For innovative service delivery to citizens and businesses: GOLD, Employment Insurance Appli-Web, HRDC; SILVER, Electronic Data Reporting Security Infrastructure, Stats. Can.; BRONZE, Our Gift to Canada/e-Health Forms On-line, Veterans Affairs Canada For enhancing government operations: GOLD, E-FILE On-line Plus, CCRA; SILVER, Permanent Resident Card, CIC; BRONZE, Port Facilities Information Register - Quebec Region, TC For securing and managing information assets: GOLD, PRISM: A Technology Program for Managing Procedural Information at the House of Commons; SILVER: Trade Commissioner, DFAIT; BRONZE, Interactive Information Service, CCRA For strategic information management: GOLD, Developing the Information Management Infrastructure to Support Modernising Services for Canadians, HRDC For enabling e-government in Canada: GOLD, Authentication Services/e-Pass Canada, TBS and CCRA For innovative cross-jurisdictional e-government projects: BRONZE, Canada-US Initiative for Marine Cargo, CCRA For implementing medium to large IT projects: GOLD, Tactical Command, Control, and Communications System, DND For managing the human dimensions of e-government: BRONZE, IT Branch Workplace Wellness Program, CCRA Readiness to use ICT to drive e-commerce Canada has one of the world's 24 "core technology-innovating economies", as measured by the number of US utility patents granted yearly (WEF Global Competitiveness Report 2002-03) – Within this group, Canada ranks #9 Canada ranks #6 on the WEF Networked Readiness Index, up from #12 in 2002 – Canada ranks #4 for the ICT environment component of this index – it is particularly strong in areas such as availability of scientists and engineers, overall infrastructure quality, and number of secure Internet servers – Canada ranks #5 for the ICT readiness component of this index – it is particularly strong in areas such as availability of mobile Internet access, availability of broadband access, firm-level innovation, and business Intranet sophistication While Canada only ranks #20 in terms of government prioritisation of ICT, it ranks #9 in terms of actual on-line services In comparison with other countries, Canadian individuals and government are more prepared to use ICT than are Canadian businesses – Canada ranks #10 for the ICT use component of this index – it is particularly strong in areas such as use of on-line payment systems, use of the Internet for coordination with customers and suppliers, presence of wireless business applications However, Canada only ranks #48 in terms of the percentage of businesses using e-commerce Canada ranks #10 on the EIU e-Readiness Index; its raw score in 2003 is virtually the same as in past years (8.20 in 2003, 8.23 in 2002 and 2001) – According to EIU analysis, "there appears to be a high degree of uniformity among top-rated countries: only 0.47 points (out of a possible 10) separates first place from tenth" – Canada ranks #1 on two dimensions of this index, business environment (e.g., strength of the economy, regulatory environment, competition policy, quality of infrastructure) and supporting e-services (e.g., availability of e-business consulting and technical support services, industry-wide standards for platforms and programming languages) – Canada is weakest on the connectivity dimension of this index (e.g., mobile-phone penetration, level of competition in the telecom industry) Impacts of ICT diffusion on e-commerce 32% of Canadians now do at least some banking on-line, up from 26% in 2002 (EKOS, 2003) – The number of experienced "net bankers" is increasingly common; 15% of all Canadians, and 48% of those who bank on-line, have at least two years of experience – "Net bankers" are doing more than half of all their banking on-line The proportion of private sector businesses selling goods and services through the Internet in 2002 was 7.5%, up marginally from 6.7% in 2001; however, the value of these sales increased significantly, from about $10.39 billion to $13.34 billion (Stats. Can., 2003) – E-commerce in 2002 accounted for only 0.6% of total private sector operating revenue – Large firms are responsible for most e-commerce activity – E-commerce remains volatile; in 2002, seven firms stopped selling through the Internet for every 10 that started The value of business to business/government sales through the Internet in 2002 was about $9.65 billion, a 19.8% increase since 2001 (Stats. Can., 2003) – The proportion of businesses buying goods and services through the Internet increased from about 22% in 2001 to about 32% in 2002 – The proportion of government organisations buying goods and services through the Internet increased from about 55% in 2001 to about 65% in 2002 The value of business to consumer sales through the Internet in 2002 was about $3.69 billion, a 58.5% increase since 2001 (Stats. Can., 2003) Although still early, Canada's ICT sectors are having a positive economic impact on aggregate productivity, e.g., about a one percent increase for the period 1996-2001 (OECD, ICT and Economic Growth, 2003)