Sixty-third General Assembly

Fifth Committee

10^th Meeting (AM)

BUDGET COMMITTEE TAKES UP WIDE-RANGING STRATEGY TO UPDATE

 

UNITED NATIONS INFORMATION AND COMMUNICATIONS TECHNOLOGY

 

As the Fifth Committee (Administrative and Budgetary) this morning considered a wide-ranging strategy for updating the Organization’s information and communications technology structure, speakers expressed support for the overall concept, but called for careful analysis of the cost-effectiveness of proposed plans and for studying how well the proposed systems met the unique needs of the United Nations.

In introducing a number of the Secretary-General’s reports on the subject, Angela Kane, Under-Secretary-General, Department of Management, said that United Nations information systems were currently compartmentalized, fragmented and not interconnected.  Member States had recognized the need to align information and communications technology policies, programmes and services with the Organization’s mandates, needs and priorities, and had called for a strategic approach to maximize information and communications technology value across the Secretariat.

Among the principal proposals in those reports is the implementation of enterprise resource planning, a commercially available, integrated software system, originally developed for the private sector.  In a single system, it manages an organization’s business, including information on financial, human and physical resources, and aims to facilitate effective planning, management and decision-making throughout the organization.

The Russian Federation’s representative asked whether there had been a statistical analysis of how enterprise resource planning was working for the United Nations Children’s Fund (UNICEF) or the United Nations Development Programme (UNDP), two agencies already implementing it.  He noted that 60 per cent of private sector companies that had implemented enterprise resource planning were not satisfied with the results for a variety of reasons.  Ultimately, those companies had found that enterprise resource planning cost more than estimated and did not increase productivity or savings, as expected, he said.  He suggested an independent assessment of enterprise resource planning for the United Nations system that would provide an unbiased cost-benefit analysis, to ensure that the large investment requested was justified.  It might be better to continue using the Integrated Management Information System (IMIS), make fuller use of resources already invested, and consider enterprise resource planning at a later date.

In a similar vein, the representative of Antigua and Barbuda, speaking on behalf of the “Group of 77” developing countries and China, noted that the overall resource requirement for the implementation of the enterprise resource planning system over a five-year period was estimated at over $280 million.  The total funding for all information and communications technology-related projects could reach $372 million.  Those figures could be even higher, once the costs for software customization and integration services were identified.  The Group of 77 was very concerned with the complex funding scheme proposed for information and communications technology reform.  By using creative arrangements, the proposal of the Secretary-General tried to avoid the simple reality that additional resources were needed for the project, he said.

Also expressing concern over the cost of enterprise resource planning, Singapore’s representative said: “Member States should not be expected to sign a blank cheque, particularly given that the practical enhancements of [enterprise resource planning] over IMIS might not be fully known until the system is rolled out.”

Japan’s representative asked how the United Nations would address the possibilities of delays in the projects and overrun of cost estimates?  He said the General Assembly should approve the minimum amount necessary for the design phase for 2008-2009.  Then, the Secretary-General should be requested to resubmit a more streamlined and economized cost estimate during the Assembly’s next session.

Several countries expressed concern at the late changes to plans for enterprise resource planning implementation, and the late abandonment of one proposal on moving data resource centres, raised by Susan McLurg, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) in her introduction of the Advisory Committee’s latest report on the information and communications technology strategy.  Several speakers noted that those changes indicated a lack of strategic planning by the Secretariat.

The United States representative said he was impressed with the Chief Information Technology Officer’s efforts over the past year in laying the groundwork for the launch and implementation of the Secretariat’s new information and communications technology strategy.  He further noted: “Given the difficult economic conditions we are operating under and the rapidly escalating expenses we are facing both under the regular and peacekeeping budgets, we must ensure that the resources we provide are used in an efficient, effective and transparent manner.”

Also participating in today’s discussion were the representatives of France (on behalf of the European Union) Canada (also on behalf of Australia and New Zealand), Switzerland (also on behalf of Liechtenstein) and the Republic of Korea.

Kenneth Herman, Senior Adviser on Information Management Policy Coordination of the Secretariat of the United Nations Chief Executives Board for Coordination, also introduced the reports of the Joint Inspection Unit (JIU).

The Committee will meet again at 10 a.m. Thursday, 23 October, to take up the issue of Investigations/Procurement Task Force.

Background

The Fifth Committee (Administrative and Budgetary) met this morning to consider some 20 reports on information and communications technology (ICT) within the framework of the 2008-2009 biennium programme budget.

The reports propose numerous actions to streamline and integrate ICT throughout the United Nations system, and request approval of the plans and resources for their implementation.  The ICT strategy for the United Nations Secretariat is presented in the Secretary-General’s report on investing in information and communications technology: information and communications strategy for the United Nations Secretariat (document A/62/793 and Corr.1).

Principal among the requests is a proposal to implement enterprise resource planning (also in document A/62/510/Rev.1) –- an integrated global software system to support the Organization’s needs and enable effective management of resources, making the Secretariat proactive, responsive and results-oriented, rather than “mired in process”.  The report also proposes enterprise-wide systems for managing day-to-day services, through a customer relationship management system, and an enterprise content management system to manage the Organization’s knowledge.  The estimated cost of the projects is some $308.8 million: $285.6 million for enterprise resource planning, including a contingency provision of $37.3 million; $8.2 million for customer relationship management; and $15 million for enterprise content management.

The enterprise resource planning project would be implemented in two phases, commencing this year and concluding at the end of 2012.  It is expected that “heavy users”, including staff involved in finance, human resources, budget and procurement, will receive specialized training, with strong emphasis on e-learning and “train the trainer” programmes.  The report proposes a full-time project team consisting of 44 temporary posts, which would be responsible for process re-engineering, project and change management, software configuration and functional activities.

It is proposed to fund the regular budget portion of the project through the 2008-2009 budget of the Office of the Under-Secretary-General for Management, from the combination of the use of interest accrued, and from the surplus account of the General Fund; and from the suspension of the application of credits, which otherwise would have to be surrendered pursuant to existing rules and regulations.  The remaining requirements for 2008-2009 would be funded from the peacekeeping support account and extra budgetary means.

Other proposals call for a unified Secretariat-wide operational framework for ICT security, disaster recovery and business continuity (also in documents A/61/290 and A/62/477), to respond to emergency disruptions to ICT functioning; establishing a secondary active communications facility (at a cost not to exceed $202,200 for the proposed location at Valencia, Spain, and $96,500 for temporary positions at that site, and an additional position in the Department of Field Support; moving Headquarters data centres; measures to ensure that ICT will continue to function smoothly during implementation of the Capital Master Plan (at a cost of $36.1 million from the 2008-2009 budget).

In connection with a related initiative to move the current United Nations Headquarters complex data centres to Long Island City and a site in the new North Lawn facility, the General Assembly is asked to take note of negotiations under way with various United Nations entities on a cost-sharing arrangement for those sites.

There is also a request for resources, in the amount of $925,400 (before recosting), for a small support team to assist the newly appointed Chief Information Technology Officer in developing a strategy, programme and governance framework for ICT in the Secretariat (see document A/62/502).

The original proposal to create an Office of Information and Communications Technology, headed by a Chief Information Technology Officer, was presented in the Secretary-General’s report on investing in information and communication technology (document A/61/765).  The Advisory Committee on Administrative and Budgetary Questions (ACABQ), in a related report (document A/61/804) did not find sufficient justification for the Secretary-General’s proposal, recommending that decisions on structures, staffing requirements, roles and responsibilities be taken up in the context of the General Assembly’s consideration of the comprehensive report requested in resolution 60/283.  The Assembly, in that resolution, also established the post of the Chief Information Technology Officer and requested the Secretary-General to re-justify resource requirements for that post and provide information on the functions, responsibilities, structures and staffing of the information and communications technology organization, as well as its relationship with other ICT units.

The addendum to the ICT strategy report (document A/62/793/Add.1) provides additional information on the proposed ICT organizational structure and reallocation of existing resources to establish the ICT Office.  It proposes that the Office of Information and Communications Technology be created based on a budget- and staff-neutral approach through the integration of existing resources from the Information Technology Services Division in the Department of Management and part of ICT for Development in the Department of Field Support.  Once the enterprise resource planning project is approved, the project team will be part of the Office.  Reporting to the Executive Office of the Secretary-General, the Office of Information and Communications Technology will be firmly rooted in the senior management structure of the Organization and given a level of visibility never possible before.  It is hoped that this will address the current state of fragmentation among ICT programmes and services.

Investing in information and communications technology: status report (document A/62/502) presents progress on an information technology governance framework for the Secretariat worldwide.

Commenting on the Secretary-General’s proposals, the Advisory Committee on Administrative and Budgetary Questions (ACABQ) (document A/62/7/Add.31), notes that overall estimated requirements relating to the proposals for enterprise systems, as well as disaster recovery and business continuity for the period from 1 January 2008 to 31 December 2009 under the regular budget and the peacekeeping support account, amount to about $106.11 million, with an increase of 44 temporary posts for enterprise resource planning project staff.

Regarding enterprise resource planning, the Advisory Committee recommends acceptance of the proposals for non-post requirements, adjusted to take into account its recommendations on temporary posts.  On the latter, it states that, at this stage, the Secretary-General should be provided with sufficient resources to create a core team to support the preparatory tasks or activities that need to be performed until the detailed proposals are submitted and considered.  Therefore, while recommending approval of a temporary post for a Project Director, the Advisory Committee also recommends that the Secretary-General be authorized to establish 15 further temporary posts, to be distributed in accordance with the priorities of the planning stage.

In connection with the Secretary-General’s request for authorization to establish a multi-year special account to record income and expenditures for the enterprise resource planning project, the Advisory Committee recognizes that it is essential to keep track of project costs.  However, it is not in favour of yet another multi-year account.  It requests that the Secretary-General ensure efficient utilization and transparent reporting on project costs without having recourse to a multi-year account.

The Advisory Committee notes that both the Department of Management and the Department of Field Support are assisting the Chief Information Technology Officer through a limited level of temporary staff and other resources.  It is of the view that the Chief Information Technology Officer should have the authority to draw upon the resources of those departments, as required.  However, during the interim period, until a new information and communications technology governance structure is adopted, ACABQ recommends approval of the resources requested in the amount of $925,400, as a charge against the contingency fund.

ACABQ also recommends approval of the proposals on customer relationship management projects relating to Member States, both at Headquarters and in the field, to be developed jointly with the Economic and Social Commission for Asia and the Pacific (ESCAP).  As for related additional resources in the amount of some $1.45 million for 2008-2009, ACABQ recommends exploring any potential for the absorption of that amount after approval of the 2008-2009 budget.  A similar recommendation is made in connection with enterprise content management requirements in the amount of some $4.03 million.  ACABQ recommends acceptance of the proposal concerning the additional requirements in the amount of about $4.22 million for enterprise content management, to be absorbed from the approved support account budget for the period ending 30 June 2008.

The Advisory Committee’s positive resource recommendations on the customer relationship management and enterprise content management projects reflect its desire not to impede the implementation of projects in progress, for which significant expenditure has already been incurred.  However, it would have been appropriate for the Secretary-General to make a full proposal at the inception of these projects.  As the projects are now in midstream, the Assembly should request the Secretary-General to make a full report on their status in the first performance report for 2008-2009.

The Advisory Committee recommends approval of the approach described in the report for the replacement of the Integrated Management Information System (IMIS) and related systems at the United Nations, but points out that the resources requested for the enterprise systems be adjusted to take account of its recommendations.

On business continuity, in connection with the Capital Master Plan, the Advisory Committee recommends approval of the resources requested for the North Lawn facility, including some $6.81 million under the regular budget for 2008-2009 and an additional requirement, not exceeding $389,100, towards its share of the design and rental costs of the North Lawn and Long Island City data centres, to be prorated from within the already approved resources for peacekeeping operations.  It also recommends that the Secretary-General be requested to pursue his discussions with the United Nations Children’s Fund (UNICEF), the United Nations Development Programme (UNDP), the United Nations Population Fund (UNFPA) and the United Nations Joint Staff Pension Fund with a view to concluding an agreement on cooperative arrangements for a joint operation at the Long Island City site.

Commenting on information and communications technology governance, the Advisory Committee emphasizes the importance of coordination among the organizations of the United Nations system, with particular attention to maximizing exchanges and synergies regarding their ongoing enterprise resource planning initiatives and to exploring all possibilities for convergence towards the adoption of common procedures and standards.

By his note in document A/60/582, the Secretary-General transmits the report of the Joint Inspection Unit (JIU) entitled “A common payroll for United Nations system organizations”.  The inspectors note that almost every organization of the system performs its own payroll processing, with many organizations adapting commercial enterprise resource planning software for this purpose.  By consolidating this function across organizations, the system as a whole can realize significant financial savings, estimated at $100 million over 10 years.  The approach to be taken should be carefully planned on an interorganizational basis, given the important investments already made.  “Leader” organizations should be established for each of the current vendor groups, as well as for other existing systems, such as IMIS.  These common service entities, such as the International Computing Centre, could offer payroll services to interested organizations.

An addendum to the report (document A/60/582/Add.1) presents the comments of the Secretary-General and the United Nations System Chief Executives Board for Coordination (CEB) on the JIU report.

Members of the Chief Executives Board believe that savings might be possible through the consolidation of administrative systems, but that to achieve this it would be necessary to address an extensive range of issues that were not thoroughly explored within the JIU report.  While many organizations have misgivings about the analysis contained in the inspectors’ report, they generally support the overall recommendations, with the exception of part (a) of recommendation 1, which suggests that the Assembly endorse the development of a common payroll system as the first step towards a common enterprise resource planning for the system as a whole.  Most organizations feel that it is premature for the Assembly to endorse this recommendation without a clear, detailed, comprehensive analysis of the costs and benefits that would result.

The Committee had before it a JIU report (document A/60/665), which presents a review of the phenomenon of open source software and includes a survey of the policies and practices in use for this type of software in a selection of Member States and across the system.

While broadly acknowledging the usefulness of open source software and the opportunities it presents, members of the Chief Executives Board -- whose comments are included in the addendum to the report (document A/60/665/Add.1) -- note that the document addresses issues outside the scope of a study of open source software use and does not devote sufficient attention to the issues surrounding the implementation of open source software.  They believe further in-depth analysis is needed to properly develop a system-wide direction on this important topic.

Another JIU report before the Committee addresses knowledge management in the United Nations system (document A/63/140).  According to this document, storage and management of knowledge is costly, and processes are needed to eliminate outdated, redundant or irrelevant knowledge gathering and management activities.  The report recommends that the Chief Executives Board develop a common definition of knowledge management, a glossary of terminology and a minimum common set of guidelines for use by each system organization in developing its own knowledge management strategy.  Organizations of the United Nations system should survey the knowledge needs of clients, undertake in-house knowledge inventories, identify and address potential knowledge gaps and develop or revise knowledge management strategies.  The Assembly should provide resources for knowledge management units within each organization.  The report also recommends developing a common search engine and establishing knowledge-sharing competencies as one of the criteria for staff assessment.

Commenting on the JIU recommendations, Chief Executives Board members (document A/63/140/Add.1) said that the recommendations in the report did not always convey the complexity involved in developing a comprehensive knowledge management strategy and that some of the recommendations lacked a clear cost-benefit analysis.  Nevertheless, they believed that the report’s overall thrust added significantly to this area.

In his report on the feasibility of the application of cost-accounting principles in the United Nations Secretariat (document A/61/826), the Secretary-General recommends that the Assembly take note of ongoing changes to management information needs that will be among the results of moving from IMIS to enterprise resource planning and adopting the International Public Sector Accounting Standards.  He also suggests that the Assembly may “decide to return to this issue in the context of determining the relative priority of the benefits to be achieved by the implementation of an enterprise resource planning system, including the strengthening of financial management frameworks at the Secretariat with respect to internal charging and cost-recovery practices”.

Should the Assembly consider it important for the Organization to apply cost-accounting principles, the Secretary-General recommends that such principles be applied initially to the support services, following an examination of costing bases and adoption of a standard approach.  The option of extending cost accounting, and in particular time recording, to peacekeeping activities and other areas should be examined following a review of the success of the implementation of the cost-accounting systems for support services within the new enterprise resource planning system.

ACABQ, in a related report (document A/62/537) recommends that the Secretary-General be requested to ensure that cost-accounting requirements are incorporated into the review on management-accounting information.  It also recommends launching pilot projects on cost-accounting as a practical step forward.  That would involve further development and standardization of costing methods and systems in the Department for General Assembly and Conference Management; and piloting a cost-accounting system for the professional services of the Office of Internal Oversight Services (OIOS), based on recording the time that professional staff work on each audit, with the final product being the report of the audit team.  The requirements for cost-accounting should be fully elaborated during the ongoing preparatory phase for the implementation of enterprise resource planning, in order to ensure that they are integrated into its design from the outset.

Introduction of Reports

ANGELA KANE, Under-Secretary-General, Department of Management, presented numerous reports by the Secretary-General on broad ranging aspects of information and communications technology.  She said that United Nations information systems were currently compartmentalized, fragmented and not interconnected.  Member States, recognizing the need to align information and communications technology policies, programmes and services with the Organization’s mandates, needs and priorities, had called for a strategic approach to maximize information and communications technology value across the Secretariat.

She introduced a change to the report on information and communications technology security, disaster recovery and business continuity, namely that, following a detailed analysis by Capital Master Plan contractors, it was determined that there would be additional technical requirements for moving the current Headquarters data centre to Long Island City.  The cost estimate would increase by 300 per cent.  Efforts were, therefore, now under way to identify a new location to accommodate the data centre within the original cost estimate of $22.7 million.

KENNETH HERMAN, Senior Adviser on Information Management Policy Coordination of the Secretariat of the Chief Executives Board, presented the JIU reports on a common payroll for United Nations system organizations and on knowledge management.  On the latter, he noted that, while OIOS recommended that the Chief Executives Board produce a knowledge management strategy for the United Nations system, JIU was convinced that the most that could be asked of the Chief Executives Board was the formulation of common definitions, terminology and general standards and guidelines on knowledge management.  That was because the clients of each entity in the United Nations system varied widely.

SUSAN MCLURG, Chairman of ACABQ, presenting four reports on a wide range of issues relating to information and communications technology, noted that ACABQ had had to seek clarification from the Secretariat on numerous issues during their preparation, and that, even during the final stages of the adoption of its latest report (document A/63/487), the Advisory Committee had received a revised approach to the implementation of the enterprise resource planning project and learned that the Secretariat had changed its position regarding the establishment of the Long Island City site.

She added that the Advisory Committee emphasized that, when requests for large financial outlays were made of the General Assembly, it should be assured that the Secretariat’s proposals had been fully thought out and based on a comprehensive analysis of the Organization’s requirements and existing capacities.  Member States should have full confidence in the Secretariat’s decision-making processes and in its ability to execute its proposals.

With respect to the information and communications technology governance framework proposed by the Secretary-General, she said the Advisory Committee believed that an excessively bureaucratic structure might hinder decision-making and dilute accountability.  It, therefore, recommended that the governance structure be kept under review.  Further, she recommended approval of the proposal relating to Office of Information and Communications Technology, including the redeployment of 10 of the 11 posts proposed to be transferred from Information for Communications Technology for Development in the Department of Field Services to the Office of Information and Communications Technology, but emphasized the need to ensure full support to field operations.  She also noted the Secretary-General’s intention to proceed with structural reviews and the rationalization and harmonization of all information and communications technology units across the Secretariat, which was essential to achieving the key goals of coherence and coordination of the Organization’s information and communications technology activities.

Regarding enterprise resource planning, ACABQ had commented extensively on the weaknesses of current systems and the links between implementation of enterprise resource planning and other management reform initiatives, including International Public Sector Accounting Standards.  The Secretary-General’s revised document included a two-phase implementation strategy and only an estimate of overall costs, Ms. McLurg noted.  Firm costs would be known only once the business process re-engineering phase was completed and specific customization requirements had been identified.

At its request, she said that ACABQ had been provided updated information on the resources requested for the biennium 2008-2009, which had been revised downwards from the $120 million proposed in the revised report to approximately $42 million, including a contingency provision of some $5.6 million.  The Secretary-General intended to complete selection of enterprise resource planning software before proceeding with the activities related to the acquisition of integration services, rather than conducting those activities concurrently as initially envisaged.  Those revisions represented a significant change in strategy.  Therefore, the Committee requested the Secretary-General to submit a revised enterprise resource planning project implementation plan.

The Advisory Committee, she added, also recommended that the General Assembly approve the Secretary-General’s proposals for 44 temporary posts to staff the core enterprise resource planning project team, as well as resources requested for the current biennium, except for the contingency provision, so as not to incur further delays in the project schedule.

ACABQ emphasized the need for clear lines of responsibility and accountability for the overall project, she said.  The introduction of enterprise resource planning would directly impact vast numbers of staff, information systems and the Organization as a whole.  It was likely that work processes, roles and responsibilities would undergo consequential changes.  The project would, therefore, require the full support and commitment of managers and should be viewed as a business project, with priority given to satisfying functional needs.

With respect to infrastructure requirements for disaster recovery and business continuity, she said the Advisory Committee had recommended approval of the North Lawn facility in its earlier report.  As to the Long Island City site, at a very late stage in its consideration of the Secretary-General’s proposals, ACABQ had not received a clear explanation of why the plans for that site had been abandoned in time for inclusion in its report.  Subsequent to the finalization of its report, the Advisory Committee had been informed that a revised analysis of the requirements for the site had concluded that the estimated costs would increase by 300 per cent, as compared to initial estimates.  The Secretariat was now in the process of identifying alternative sites.

In that regard, she said that ACABQ recommended that the General Assembly request the Secretary-General to submit a new proposal for a secondary data centre for Headquarters, including a detailed justification of the reasons for the change and the costs already incurred on the Long Island City site.

The second set of proposals concerned a global operational framework to support disaster recovery and business continuity, Ms. McLurg said.  Recognizing the risks of sole reliance on the communications facilities at the United Nations Logistics Base, as well as the need for further data storage facilities, the Advisory Committee recommended approval of those proposals.

In closing, she emphasized once again that investments in information technology should result in tangible and measurable efficiency and productivity gains, and recommended that the Secretary-General be requested to define specific objectives and methods for measuring the impact of the information and communications technology initiatives on the performance of the administrative functions of the Organization.  Effective monitoring of the projects and the submission of meaningful performance reports to the General Assembly on a regular basis were also stressed.  In addition, she recommended that information regarding system-wide coordination on information and communications technology policy and strategy with other entities of the United Nations be provided in the context of future budgets.

Statements

GRÉGORY CAZALET ( France), speaking on behalf of the European Union, said that the Union welcomed the work done by the Secretariat in presenting a comprehensive vision of the information and communication technology strategy for the United Nations.  In that regard, he recalled the Union’s agreement in principle to putting in place a new information strategy to overcome the overlap and fragmentation which prevented the Organization from efficiently managing its human and budgetary resources.  The introduction of integrated management software represented a unique opportunity to improve the way the Organization worked by changing its internal procedures.  It would support management reforms and allow the promotion of transparency.  Similarly, given the significance of the proposed action, in particular in the framework of peacekeeping operations, it was important for the Organization to have efficient systems to safeguard data.  In that connection, the Union took note of the commitment of the Government of Spain to finance the site in Valencia.

On the whole, the investment required from Member States was considerable, he continued.  Given the complexity of the issues before the Committee, the Union looked forward to an in-depth debate on the reports and resources sought.  It would be paying particular attention to an effective and centralized approach, limiting customization to a bare minimum.  The expected benefits should be clearly identified, in short or medium term.  It was also important to ensure that information equipment would be easily adaptable, to take into account new developments in information and communications technology.

CONROD HUNTE (Antigua and Barbuda), speaking on behalf of the “Group of 77” developing countries and China, said that the Group had always been supportive of management reform initiatives aimed at increasing the efficiency and capacity of the Secretariat.  He fully recognized the need for a sound information and communications technology infrastructure in the United Nations to cope with the challenges and to better promote efficiency, effectiveness, transparency and accountability in the Organization. I n its resolution 60/283, the Assembly had decided to replace IMIS with a next-generation enterprise resource planning system or another comparable system.  He acknowledged the advantages of the comprehensive information and communications technology strategy and the new enterprise resource planning system, as indicated in the Secretary-General’s report.  The Group of 77 was also aware that the new enterprise resource planning system was a complex and diverse one, requiring huge resources for implementation.

Given the complexity of the new system, he stressed the need to take some elements into consideration, prior to its implementation.  The Organization needed to identify the risks involved in implementing the new enterprise resource planning system, and the Secretariat had to draw experiences and lessons learned from other entities of the United Nations that had implemented such a system.  The Organization should identify a mechanism to monitor and assess the results and performance of all entities involved in the implementation of the new system.  Each phase of enterprise resource planning must have clear objectives and expected results, and clear roles and responsibilities for all information and communications technology units must be outlined. It was also important to ensure clear lines of accountability and effective leadership of the project. Investments in information technology should result in tangible and measurable efficiency and productivity gains.  It was also necessary to identify potential savings through the increased use of open source software, as requested in resolution 60/260.  The Secretariat must ensure that the new system was fully utilized to streamline existing work processes.

Considering the above elements, the Group of 77 would like to seek further clarification on the proposed governance structure, including the idea of establishing the Office of Information and Communications Technology, he continued.  In that regard, he reaffirmed the role of the Committee on Programme and Coordination in reviewing any programmatic change to the strategic framework and the programme budget.  Recognizing the importance of developing a global operational framework for information and communications technology security, business continuity and disaster recovery, the Group of 77 agreed that the fragmented approach used today exposed the Organization to considerable risks.  However, the proposal before the Committee required further clarification.  He wanted to know, for instance, why the proposed Long Island City site was no longer being pursued.  He was concerned that the changes in the proposal indicated a lack of strategic planning. He also asked for more information on the proposed “site B”, including the process leading to the choice of specific location.  The Group of 77 welcomed voluntary contributions of Member States, but believed that the Secretariat must ensure a transparent process in all its operations and activities.

He noted that the overall resource requirement for the implementation of the enterprise resource planning system over a five-year period was estimated at over $280 million.  The total funding for all information and communications technology-related projects could reach $372 million.  Those figures could be even higher once the costs for software customization and integration services were identified.  The Group of 77 was very concerned with the complex funding scheme proposed for the information and communications technology reform.  By using creative arrangements, the proposal of the Secretary-General tried to avoid the simple reality that additional resources were needed for the project.  Many of the substantive areas of the Organization were chronically underfunded, which often resulted in the lack of mandate implementation.  The proposal to finance the information and communications technology reforms by using available balances in the surplus account of the general fund and peacekeeping missions was the equivalent of transferring resources from priority areas to the project.  There was also a risk that, in the future, managers would be directed to spend less than their budget allocations, in order to finance enterprise resource planning.

Reforms would become reality if they were commensurate with sufficient resources, he added.  It was important that Member States fulfilled their commitments in that regard.  Expressions of support without underlying funding ran the risk of being an empty promise.

CHRIS PLUNKETT ( Canada), also speaking on behalf of Australia and New Zealand, said he was fully committed to a modern, efficient and effective United Nations.  That could only be achieved if the Organization had modern and efficient information and communications technology, as well as a unified strategy to govern its implementation.  The Fifth Committee had wisely recognized that in 2006, when it had created the position of the Chief Information Technology Officer and agreed to the implementation of a new enterprise resource planning system.  For too long, the governance of information and communications technology within the Secretariat had been fractured and divided.  The lack of common vision had led to duplication, extra costs and incompatible systems.  While a number of strategies could have been proposed to remedy that situation, the Secretary-General had proposed a strategy that centralized many of the strategic and long-term planning functions within the Office for Information and Communications Technology, but also recognized the inherently decentralized nature of the United Nations, allowing a day-to-day functioning of the information and communications technology system to be managed by respective departments and offices.  That would allow the dual benefits of a more integrated information and communications technology planning, while remaining responsive to the end users, particularly those in the field.

One of the major reasons for implementing an enterprise resource planning system was to allow the Secretariat to streamline and improve the operations of the Organization, particularly through the redesign of business processes that currently required a lot of manual processing, he continued.  That would free significant resources within the Organization that could be utilized in fulfilling other mandates.  Unfortunately, the report before the Committee did not provide adequate detail on what additional efficiencies could be expected through the implementation of enterprise resource planning.  He would be looking to the Secretariat to provide delegations with those details during informals.  In order to realize those benefits, there was no denying that a substantial financial investment from Member States would be required.  He was prepared to make that investment, but needed to be reassured that the costs of the enterprise resource planning system were kept to a minimum.  Like ACABQ, he felt that one definitive way to accomplish that was to avoid excessive customization of enterprise resource planning.  Any customization should be fully justified, and he would be seeking reassurances from the Secretariat on that point.

THOMAS GURBER (Switzerland), also speaking on behalf of Liechtenstein, said that the majority of information and communications technology platforms at the United Nations today were not only outdated, but also incompatible with each other, even within the same agency or within the Secretariat.  That prevented United Nations staff from having access to a coherent and system-wide record of information, resulting in duplication of work and delays.  That was why Member States, at the 2005 World Summit, had approved the reform of the system-wide information and communications technology system and the post of Chief Information Technology Officer.  The creation of the Office of Information and Communications Technology within the framework of the proposed information and communications technology strategy provided the necessary organizational basis and authority for the Chief to carry out a Secretariat-wide mandate and to redress the fragmented information and communications technology programmes and services.  He was pleased that a budget- and staff-neutral approach had been chosen for the implementation of the strategy.  He also believed that the Secretary-General had found the right balance between centralizing vital information and communications technology functions and ensuring that United Nations actors in the field would continue to enjoy enough flexibility to fulfil their mandates.

The proposed improvements of the information and communications technology system included the establishment a system-wide enterprise resource planning system, which would replace the currently used IMIS and other stand-alone systems.  An enterprise resource planning system would integrate all information technology applications, including those relating to finance and budget, human resources, procurement, central support and other support services.  The Organization needed an enterprise resource planning system in order to be able to streamline business processes and enhance reporting to Member States.  The system would facilitate many important reform projects, such as the introduction of International Public Sector Accounting Standards, the improvement of the procurement activities or the accountability and results-based management frameworks.

Turning to disaster recovery and business continuity, he said that having a reliable set of systems that would prepare the Organization for disruptive events was essential.  He was, therefore, prepared to consider the proposal favourably.  It was true that both the enterprise resource planning and disaster recovery and business continuity proposals came with a considerable price tag.  As delegations committed to budgetary discipline, Switzerland and Liechtenstein would examine the requested resources very carefully and make sure that unnecessary costs were avoided, for instance by keeping customization of enterprise resource planning software to a minimum.  At the same time, it would be unwise for the General Assembly to exercise disproportionate budgetary restraint in that particular matter.  The costs of not improving the information and communications technology systems were hidden, but they were real and would only increase in the future.  The proposals before the Committee should be seen as a critical investment, which would enable the Organization to implement its mandate more responsively and effectively.  He also reminded delegations that the comprehensive information and communications technology proposal was a response to requests made by Member States, and not an item from a wish list of the Secretariat.  The delegations he represented were ready to endorse, in principle, the proposals of the Secretary-General.

CRAIG LIM ( Singapore) supported the proposal to centralize information and communications technology policies under the Office of Information and Communications Technology.  “However, the devil is in the details,” he said.  He agreed with ACABQ’s recommendation that the General Assembly should be kept informed of “changes to this framework in the context of its consideration of the proposed programme budget” and provided with regular updates on information and communications technology activities.

On enterprise resource planning, he said he accepted the rationale behind the need for a comprehensive update of the Integrated Management Information System (IMIS).  The system that replaced it should provide significant improvement in terms of efficiency and flexibility and allow for future upgrades. Further, it should offer easy compatibility for all end-users.  It was important to remember “the purpose of this entire exercise”, he said, asking further: “Will the implementation of the various [enterprise resource planning] systems and [information and communications technology] structure lead to a better functioning organization?”  Only if they did should the necessary resources be provided.  He said lessons should be learned from the implementation of IMIS, in that regard.

Continuing, he said that Member States should “demand a new system that […] gives us ‘bang for our buck’”, noting the importance of studying cost-effectiveness.  He said expected cost estimates for implementation of the system should be tracked and “Member States should not be expected to sign a blank cheque, particularly given that the practical enhancements of [enterprise resource planning] over IMIS might not be fully known until the system is rolled out”.  Most importantly, he shared ACABQ’s view that “clear lines of responsibility and accountability for the overall project” had to be established.

He supported the proposals for disaster recovery and business continuity and the secondary sites, but expressed concern that no update had been provided on the decision not to pursue the Long Island City site.

SHIN BOO NAM (Republic of Korea) said the establishment a globally integrated, transparent and better coordinated information and communications technology environment was one of the main factors that would enable the Secretariat to be more effective, efficient and modern.  The information and communications technology framework was a long-term project that required significant financial commitments.  As it was not easy to change the structure once it would be finalized, the expected merits and potential risk factors of adopting the new system should be scrutinized in the planning stages.  He encouraged learning lessons from the implementation of IMIS, and the trial and error of other international organizations that had already adopted enterprise resource planning.

Further, he said that a cost-benefit analysis was useful to any reform initiative.  Specific foreseeable benefits and costs of the reform agenda should be identified and translated into quantifiable estimates.  In that context, he welcomed the expected benefits of enterprise resource planning.  A mere conceptual approach was not sufficient, however.  Further development was needed.  The huge project should be carried out in the most cost-effective manner.

“The success of the new ICT framework can be judged, not by the introduction of new hardware or software, but by a smooth change in the organizational working culture,” he continued.  The final goal was a shift in the United Nations staff’s way of thinking.  Education and training programmes should be designed to that end.  Further, in considering software selection, customization costs should be taken into account.

DAVID TRAYSTMAN ( United States) said that his delegation was impressed with the new Chief Information Technology Officer’s efforts over the past year in laying the groundwork for the launch and implementation of the Secretariat’s new information and communications technology strategy.  Implementing such a strategy was a complex process “with many moving parts”.  He recognized the fundamental importance of having appropriate information systems and related information management processes and capabilities in place, not only to address the daily operational needs of the Organization, but also to facilitate implementation of important reform proposals.  To put it simply, the Organization must have a solid information and communications technology foundation to fully and effectively carry out its work.

While reserving detailed comments and questions for informal consultations, he said his delegation was generally in agreement with the proposed governance structure.  The application of International Public Sector Accounting Standards and other enhanced capabilities and new procedures would have a significant impact on the daily activities of many people in the Secretariat.  His delegation was particularly interested in learning how that complex change would be managed.  He saw great potential in the proposed knowledge management initiatives and looked forward to learning how they would improve the effectiveness of the Organization.

“Given the difficult economic conditions we are operating under and the rapidly escalating expenses we are facing both under the regular and peacekeeping budgets, we must ensure that the resources we provide are used in an efficient, effective and transparent manner,” he said.  The key was to move deliberately and in clearly defined phases to ensure maximum benefit from investments.  As the Organization approached the end of the IMIS life cycle, he looked forward to realizing the benefits, particularly in the areas of transparency and accountability, of an integrated enterprise resource planning system.

ANDREY V. KOVALENKO ( Russian Federation) welcomed the concept of a new frontline communications system that would lead to the Organization’s greater efficiency.  However, given the high costs of enterprise resource planning, a scrupulous cost-benefit analysis was needed.  The General Assembly, in resolution 60/283, had accepted the principle of adopting the next generation of information technology systems.  However, no time frame had been set.  Member States must be convinced that, based on current levels of programme resources, the new system would be an improvement over IMIS and would allow the Organization to reduce costs and provide better service.  Without knowing the true overall cost, it was difficult to make a decision on the project.  It must be remembered that the cost of implementing IMIS had been significantly more than originally estimated.

He asked whether there had been a statistical analysis of how enterprise resource planning was working for UNICEF or UNDP, noting that 60 per cent of private sector companies that had implemented enterprise resource planning were not satisfied with the results for a variety of reasons, among them that it ultimately cost more than estimated and did not increase productivity or savings, as expected.  Rather than starting from scratch, he asked, was it possible to look at an existing system to learn its lessons and make more effective use of resources?

He expressed concern that enterprise resource planning would not be implemented by 2012, as planned, and wanted to know why.  Why was it taking the United Nations so long, when private sector institutions were able to implement enterprise resource planning in a year?  Past mistakes, when a large investment was made without consideration for long-term prospects, must be avoided.  The old system was now working, yet Member States were being told that it needed replacement.  An independent assessment of enterprise resource planning, providing an unbiased cost-benefit analysis, should be conducted to ensure that the large investment requested was justified.  It might turn out to be better to continue using IMIS, make fuller use of resources already invested and consider enterprise resource planning at a later date.

KEN MUKAI ( Japan) said his delegation was committed to the necessary reforms of the United Nations and was ready to discuss any proposals.  It was important to be aware, however, that the high price tags attached to the reform proposals were raising the stakes of investing in those proposals.  It was necessary to minimize the price by carefully examining the costs and benefits of each proposal.  Coherence and clear lines of command were prerequisites for such deliberations.

Regarding information and communications technology in general, he said he shared the view of ACABQ that there was an obvious need for strong and central leadership and management of information and communications technology activities and more efficient utilization of resources.  As for the proposed organizational structure, he understood that the Chief Information Technology Officer would be responsible for strategic or organization-wide functions, while the Department of Field Support would be responsible for field operations.  The division of labour and responsibilities between the Office of Information and Communication Technology, Information and Communication Technology Division-Department of Field Support and the Department of Management needed to be clearly worked out.  As for the economies of scale, elimination of redundant operations and reduction of fixed operating costs that the Secretary-General had referred to, he wanted to know about concrete efficiency gains to be expected from the Chief Information Technology Officer governance, and in what time frame.

On enterprise resource planning, he said that, in light of ongoing management reforms, it was necessary to clarify the relation or sequence in the introduction of enterprise resource planning and other reforms, including those in human resources management, procurement, budget process, internal control and audit.  The enterprise resource planning system could enhance efficiency by simplifying the working processes, but he would like to know how and to what extent savings of operational and administrative costs would be identified.  He also wanted to discuss the high risks of the introduction of enterprise resource planning.  How would the United Nations address the possibilities of delays in the projects and overrun of cost estimates?

Since enterprise resource planning would facilitate standardization of work, the Organization should avoid resorting quickly to “add-ons” directly leading to increase in costs, he said.  As emphasized by ACABQ, customization of the enterprise resource planning software should be kept to a minimum.  He expected the Secretariat to benefit from the lessons learned by other entities in terms of the enterprise resource planning budget, project team and customization.  As costs for software and customization and integration services would be known only when the re-engineering phase was completed, the Assembly should only take note of the overall enterprise resource planning resource requirement and approve the minimum amount necessary for the design phase for 2008-2009.  Then, the Secretary-General should be requested to resubmit a more streamlined and economized cost estimate at the main part of the Assembly’s next session.

He also concurred with the Advisory Committee’s recommendation against approval of the contingency provision of the budget, which was not warranted, given the reduced scope of activities envisaged during the remainder of the current biennium, as well as the Secretary-General’s phased approach for the acquisition of integration services.  Turning to business continuity and disaster recovery, he said he was not sure of the need for a secondary data centre at Headquarters and a secondary active communications facility for the field, as well as disaster recovery and business continuity centre for information technology.  He was also interested in hearing from the Secretariat what it considered to be the minimum necessary information and communications technology services and functions to continue business in the event of a disaster.  The minimum requirements for the proposed three-layer approach in peacekeeping missions also needed to be clarified.

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For information media • not an official record