DEPARTMENT OF INFORMATION TECHNOLOGY

Prepared by:-

MEBRATU GOA
SAMUEL SHANKUTE
YISMAWU SINTAYEHU
ABINET ANBESSE

ARBAMINCH , ETHIOPIA
Date 23/07/
Acknowledgement

Firstly we would like to thank Ato workineh and molalegn for the guidance and support them has given
us not only during this study, but in us Honor year as well. We 'all never forget our staff adventures, and
small talk in between work sessions. The extra support given this year with us studies changing to part
the is really appreciated.

To our trainer’s, thank you for all the love and support during us years of value chains. Without all the
opportunities ourselves have presented us while we was investigating, this would never have been
possible.

Thank you!

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Terminology
Words meaning
Software-> refers to the instructions, or programs, that tell the hardware what to do.
Technology-> The use of science in industry, engineering, etc…,to invent useful things or to solve
problems
Spectrum-> A complete range of different opinions, people, etc.
Quality -> A high level of value or excellence
Feasibility-> Possible to do
Tedious-> Boring and too slow or long
Web index-> A complicated arrangement or pattern of things in the system
Stakeholders-> A persons who holds the money that people have bet on something and then gives it to the
winner
Ip address -> The numeric address of a computer on the internet
Priority -> Something that is more important than other things and that needs to be done or dealt with
first
Cloud computing - The practice of storing regularly used computer data on multiple servers that can be
> accessed through the internet

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Abbreviation
BPO Business process outsourcing
CMM Capability maturity model
EPRDF Ethiopia people’s revolutionary democratic front
ETA Ethiopian telecommunication agency
EXIM Export import bank of china
GBPS Giga byte per second
GDP Gross domestic product
GTP Growth and transformation plan
IDI Ict development index
IOS Inter organization system
IRD Information requirement determination
ITES Information technology enabled services
ITU International telecommunication union
KPI Key performance indicators
KPO Knowledge process outsourcing
KSF Key success factor
MCIT Ministry of communication and information technology
NRI Network readiness index
OECD Organization for economic co-operation and development
QOS Quality of service
SC Supply chain
SPR Sector performance review
TCE Transaction cost economics
WEF World economic forum
ZTE Zhong Xing telecom corporation

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Abstract

The web-technology is going through major changes these years, both with respect to types of
systems based on web-technology, organization of the development work, required approaches and
competencies, etc. We must rethink the organization of the development work. This requires a
deeper and coherent understanding of the nature of web-development. This project presents findings
from a value chain study undertaken in web development areas. From these findings we characterize
web-application development and discuss some major challenges to cope with and to find proper
support for in the future. We found that web-development is characterized by involvement of many
expertise groups with little training and experience in information systems design, that some of the
existing modeling and communication tools introduce severe problems, and that the pace of the
introduction of new tools and features causes development and management problems. A further
complication factor is that web-applications of today often are business critical systems.

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 Table of Contents
Acknowledgement.......................................................................................................................................................I
Terminology...............................................................................................................................................................II
Abbreviation.............................................................................................................................................................III
Abstract.....................................................................................................................................................................IV
List of figures.........................................................................................................................................................VIII
Chapter one.................................................................................................................................................................1
1.1 Introduction.................................................................................................................................................1
1.2 Background of study.........................................................................................................................................3
1.3 Purpose of the system.......................................................................................................................................3
1.4 statement of the problem...................................................................................................................................4
1.5. Objectives of the study.....................................................................................................................................4
1.5.1 General objectives..........................................................................................................................................4
1.5.2 Specific objectives.........................................................................................................................................4
1.6. Significance of the study..................................................................................................................................5
1.7. Scope of the study............................................................................................................................................5
1.8. Limitations.......................................................................................................................................................5
1.9. Organization of the study.................................................................................................................................6
CHAPTER TWO........................................................................................................................................................7
2.1. Review of Related Literature......................................................................................................................7
2.2. History of information communication technology in Ethiopia.................................................................7
2.3. Employment opportunity in information technology sector in Ethiopia..................................................20
2.4. The role of information and communication technology sector or economic infrastructure...................21
2.5. Economic aspects of information technology...........................................................................................21
2.6. Social aspects............................................................................................................................................21
2.7. The supply chain in IT Infrastructure Capability.....................................................................................22
2.8. THE STRUCTURE OF THE ICT SECTOR............................................................................................23
2.9. The ICT industry in Global Connectivity System....................................................................................25
2.10. The Priority Sectors..................................................................................................................................26

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 2.11. GTP Priority Sectors.................................................................................................................................26
2.11 software exporting countries..................................................................................................................28
2.12 Software Production Share company or institution...............................................................................28
Chapter three.............................................................................................................................................................29
3.0 Methodology...................................................................................................................................................29
3.1 Research design..............................................................................................................................................29
COMPUTER SOFTWARE / SERVICES AND ITES EXPORTS OVERVIEW................................................29
3.2 Data Source.....................................................................................................................................................29
3.2.1 Presence of Global IT players in India........................................................................................................29
3.2.2 Spectrum of IT Services/ ITES from India.................................................................................................30
3.2.3 STRENGTHS OF INDIAN ITS INDUSTRY WITH ETHIOPIA...........................................................30
3.2.4 QUALITY OF INDIAN IT EXPERTISE...................................................................................................31
3.2.5 MANPOWER EMPLOYED AND EDUCATIONAL INSTITUTIONS...................................................31
3.2.6 PRODUCTION...........................................................................................................................................32
3.2.7 SHARE IN GDP..........................................................................................................................................32
3.2.8 DOMESTIC SOFTWARE / SERVICES INDUSTRY...............................................................................32
3.3 EXPORT OF IT SOFTWARE / SERVICES.................................................................................................34
3.3.1 ITES / BPO EXPORT.................................................................................................................................34
3.3.2 INDIA'S ITES-BPO SUPPORTING OTHER LANGUAGES...................................................................35
3.3.3 INDIA – THE MOST PREFERRED ITES-BPO DESTINATION............................................................35
3.3.4 INDIA'S SHARE IN WORLD SOFTWARE / SERVICES MARKET.....................................................35
3.3.5 MAJOR COUNTRIES OF EXPORT.........................................................................................................36
3.4 Procedures of data collection.........................................................................................................................37
3.5 Feasibility study.............................................................................................................................................40
3.6 Sampling Design............................................................................................................................................42
3.7 Method of Data Analyses Plans................................................................................................................43
3.8 Survey Team.............................................................................................................................................46
3.9 Survey Area..............................................................................................................................................46
3.10 Data Collection And Activities.................................................................................................................46
Chapter four..............................................................................................................................................................47
4. Data analysis and interpretation....................................................................................................................47
4.1. Web based application Value Chain Map And Comparison Between AS IS & TO BE as is..................47

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 Web application Value Chain( Gaps/Constraints)...............................................................................................48
2.1. Identified Technologies............................................................................................................................53
Identified Technologies........................................................................................................................................59
Chapter Five..............................................................................................................................................................60
3. Summary of findings, Conclusions and Recommendation...........................................................................60
3.1. RESULTS AND DISCUSSION:..............................................................................................................60
5.2 Conclusions.....................................................................................................................................................61
5.3 Recommendations...........................................................................................................................................62
REFERENCES.........................................................................................................................................................63

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 List of figures

Figure 1: Comparison of sector growth between Kenya and Ethiopia 10

Figure 2: IDI scores for selected African countries 12
Figure 3: NRI scores for selected African countries 13
Figure 4: Ethio Telecom mobile subscriber and revenue growth 18
Figure 5: Telecommunications revenue (US$ millions) 19
Figure 6: Dialup and broadband internet subscribers in Ethiopia 20
Figure 7: Comparison of household internet penetration in selected African countries 20
Figure 9: The Global Connectivity System 23
Figure 10: Overlap between the IT, telecommunications and information content activities of firms 24
Figure 11: Telecommunications revenue as a contribution to GDP (%) 27
Figure 12:computer software/services production 32
Figure 13: EXPORT OF COMPUTER SOFTWARE / SERVICES INCLUDING ITES / BPO. 33
Figure 14: growth in exports of computer software & services (including ITes) 34
Figure 15: world market of computer software / services: 2012-13 36
Figure 16: Requirement analysis 39

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Chapter one
1.1 Introduction
As a basis for designing complex information systems the Web-technology has matured a lot over the last
few years. The technology is still fairly simple with a number of unsolved problems, but the advantages
and potentials are so significant that most of today’s design of information systems to some extent is
based upon web-technology. Organizations increase their investment in and usage of web-based
technology. The scope of web-based application has grown enormously and has moved to become a
platform that can support all facets of organizational work. The web-technology differs from the
traditional information technology in that "it might be labeled as a new type of information system, but it
is fundamentally a new medium of human communication".

In parallel with this trend the activities to be IT supported become increasingly knowledge demanding,
and the actors are confronted by increasing demands for improved quality products or services,
improved complexity of the products and services, higher flexibility, shorter lead-times, etc. To cope
with these demands work is often undertaken by large groups including people with different
background and perspective. More actors become involved and an abundance of decisions have to be
made by mutually interdependent actors. Actors involved in complex cooperative activities need support
for communicating, coordinating their activities, keeping track of state of affairs in the field of work,
sharing information, etc.

To complicate it further an increasing part of the work that needs IT support is conducted in virtual
organizations, meaning that the control structure and the spatial and functional arrangements differ from
situation to situation. We need a re-orientation of the philosophy of management, IT usage, etc. The
trends mentioned above have serious implications for the development of information systems: New
groups of expertise must be involved, the technology is rapidly changing and well established products
and standards are rare the roles of and interplay between the developers and users are dramatically
changing. These challenges become even greater due to the fact that most web-application development
has been started as ad-hoc based 'quick and dirty' development of small sets of web-pages mainly used
for 'toy purposes', information publishing or advertising. To phrase it differently: Many of the at last

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adapted traditions within traditional software development on careful analysis and modeling, punctual
establishment of conform architectures, attempts to estimate, etc. are absent in most web-application
development. In order to come up with ideas, recommendations, tools, techniques, concepts and
methodologies supporting the processes of developing web-based information systems we need a better
understanding of what characterizes development of large scale web-applications today, who are
involved, what expertise is needed, what are the essential problems, etc. This paper presents a first set of
findings from an ongoing project that follows design, development and use of interactive web-
applications (we stress the interactive aspect of the application to put explicit focus on web-applications
that mediate interactions among multiple distributed collaborating actors. We present findings from a
value chain study of web-design undertaken in a web-development company. From these findings we
characterize web-application development and discuss some major challenges to cope with and to find
proper support for in the future. Much of the literature on web-design concerns the new potentials,
possibilities and challenges for business and user organizations. Examples are articles on the potentials
of the new technology in terms of 'perfect communication and information transmission' ,challenges
when setting up the e-businesses or changes in the supply-chain relationships as a result of web-based e-
business .Of course are these aspects essential when discussing web-based information systems. They
are however considered out of scope. The literature on design and development of web-based
information systems seems to agree that development of web-based systems is different from
development of 'traditional' IT-based systems. Argue that the technology mainly is an interaction
medium and that in a www-environment new applications will be developed and assembled by cloning
existing components .Thus the notion of tinkering is more important in web-application development
than 'rational' design decisions. From this they argue that the key-words of the information systems
discipline will be prototyping, object orientation, reuse, 'quick and dirty ethnography', networking,
redundancy, plug-ins, innovations, customer focus and time to market. Others argue that development of
web-sites (a set of web-pages) differs a lot from development of web-based information systems. Web-
based information systems are, however different from traditional information systems in the sense that
they require new approaches and often are results of grass-root efforts. Some authors also stress the
differences in terms of the speed of change in the technological basis. The pace at which the continuous
evolvement of tools and features are running at the web-technology is extreme even compared to the rest
of the IT-area, and that these tools have lured people away from recognizing the need for a systematic

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design approach. The need for new competencies, new roles, new approaches and methodologies, new
ways of organizing the development work, etc. has been widely recognized. The aim of this value chain
is to contribute to our understanding of the nature of development of web-based application systems.

1.2 Background of study

Web application is a process of managing and locating objector materials. In common usage the term
may also refer to just the software components. Web application system refers to activities involved in
developing and managing the system level of raw materials, semi-finished materials work in progress
and finished good so that adequate suppliers are available and cost of over or under system are low. The
cost of maintaining system is included in the final output of report by the customer. Good in the system
represents a cost to their owner. The manufacturer has the expense of materials and labor. The
wholesaler also has funds tried up. Therefore, the basic goal of the project is to maintain a level of
system that will provide optimum system at lowest cost. Morris stressed that Web application in its
broadest perspective is to keep the most economical amount of one kind of asset in order to facilitate an
increase in the total value of all assets of the organization – human and material resources.

1.3 Purpose of the system

Web application (or web apps) are programs on the internet that can be accessed in web browsers
(Firefox, chrome, safari, IE, etc.).This program can be providing any kind of functionality that you need
to help your business or organization run more smoothly. Web apps are very dynamic. They allow users
to interact with your data to get the exact information they want. They are also very good at automating
day to day tasks.

The key to a system like this is the database. A database is a place to keep your data, and is (usually)
centrally accessed. This central access to data gives everyone the same view of the system (that there are
no more replacement blades available, for example).based on the data that is retrieves from database, the
web apps chooses a course of action .by merging the dynamic abilities of the web app with the data
storage /searching abilities of the database, you can create some very efficient and time saving apps.

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1.4 statement of the problem
Manual system is quite tedious, time consuming and less efficient and accurate in comparison to the web
based computerized system. So following are some disadvantages of the old system.

1. Slow data processing

2. Lot of paper work
3. Time consuming
4. Less accurate
5. Less efficient
6. Not user friendly environment
7. Difficult to keep old records

1.5. Objectives of the study

1.5.1 General objectives

The General objective of this study is focused to determine the Value Chain of Web application system
in Arbaminch town.

1.5.2 Specific objectives

The project is designed to help in the Web application of a system. The main objective of new system
includes:

1. Design a computer driven Web based system to keep record and track materials on the basis of both
quality and value.
2. To generate reports on the all the activity in the system
3. Design and develop a central database system that would serve as store database, which will contain
information on all the available inputs in the system.

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1.6. Significance of the study
The new system designed for computer driven stock management system will among other things:

1. Up-to-date information about data processing resources through the creation and archiving of
records in a centralized repository.
2. Data used to support configuration diagrams of the hardware and software components contained
within specific location, or the entire data processing environment.

1.7. Scope of the study

The scope of this system is to provide user efficient working environment and more output can be
generated through this. This system provides user friendly interfaces resulting in knowing each and
every usability features of the system.

1. This system helps in tracking records so that past records can be verified through them and one can
make decisions based on the past records. This system completes the work in a very less time
resulting in less time consumption and high level of efficiency.
2. This system is developed in such a way that even a native user can also operate the system easily.
The calculations are made very quickly and records are directly saved into databases and the
databases can maintained for a longer period of time. Each record can be retrieved and can be
verified for the future transaction.
3. Also this system provides high level of security for data leaking as only admin people can access the
database. No change can make in it until it verifies the user login id and password.

1.8. Limitations
The constraints encountered during project design include the following:

1. Financial constraint: the design was achieved but not without some financial involvements. One had
to pay for the computer time. Also the typing has its own financial involvements.
2. High programming technique: the programming aspect of this project posed a lot of problematic
bugs that took us some days to solve. Problem such as database connections using VB and ms access
database posed a lot of challenges.
3. Few literature sources: the topic through seems to be a common term; it is not a popular topic to surf
from the internet. It had fewer literature sources.
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1.9. Organization of the study

The study will be divided in to five chapters.

The first chapter deals with introduction. Under introduction, background of the study, statements of the
problem, objectives, significance of the study, delimitation of the study, limitation of the study, definition of
operational key terms and organization of the study were included.

Chapter two will briefly explain the review of related literature.

Chapter three will provide research design and methodology.

Chapter four provide the data analysis and finding.

Finally the last chapter includes summary of the findings, conclusion and recommendations. Moreover, as
appendices, sample questionnaires are attached to the last part in the project

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CHAPTER TWO

2.1.Review of Related Literature

2.2.History of information communication technology in Ethiopia

Economic, political, and social development and their implications for the ICT sector

Ethiopia is located in the Horn of Africa bordering Sudan’s eastern, Eritrea’s southern, and Kenya’s
northern borders, as well as Djibouti’s and Somalia’s western borders. It also borders South Sudan.
The Horn of Africa is well known for drought, hunger, and conflict, but Ethiopia has gained itself
relative peace for the last 20 years. The country has seen political upheaval – from a feudal royalty
to a socialist regime in the 1970s and then to a market-oriented one in the 1990s. The period of
socialist rule (1974-1990) has had a negative effect on the country’s development and its information
and communication technology sector. Ethiopia is still finding it difficult to heal from the poor
growth succeeds during the 1980s and 1990s when much reform took place in most other parts of the
globe.

Ethiopia is the largest country in the Horn of Africa and the second-most-populous nation in Sub-
Saharan Africa. With a population of 84million in 2012, and gross domestic product (GDP) per
capita of less than US$400, it is one of the poorest countries in the world, ranking close to the
bottom of the UN Human Development Index (174 out of 179 countries) in 2011 (UNDP, 2011).

The economy is based on agriculture, which contributes 41% of the total GDP and provides 80% of
the nation’s employment. The major agricultural export crop is coffee, providing approximately
30.6% of Ethiopia’s foreign exchange earnings in 2010-11, down from 65% a decade earlier due to
the increase in other exports (US State Department, 2012). Access to ICTs in the rural areas of
Ethiopia is constrained both by limited network coverage and a low level of electricity penetration –
which stood at 17% in 2011 (Ethiopian Government, 2012).

The telecommunications sector in Ethiopia, including fixed-line, mobile, and internet services, is
structured under a public monopoly which is inherently inefficient and provides low levels of
investment. The World Bank ranked Ethiopia 111th out of 183 countries for “ease of doing
business” in its Doing Business 2012 report (World Bank and IFC, 2011). The lack of finance to

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enterprises (either through banks or micro finance institutions), the ownership of land by the state,
and low-quality telecommunications and physical infrastructure are regarded as the main bottlenecks
to investment.

Official statistics indicate that Ethiopia’s average annual GDP growth was 11% between 2006 and
2012, although the economy has begun to feel the pressure of high inflation and a difficult balance of
payments situation. The annual end-of-period inflation, which stood at 16.5% in February 2011,
more than doubled to reach 36% in February 2012 (World Bank, 2012). The problem was
exacerbated by high fuel and food prices that had a chilling exact on customers’ ability and
willingness to pay for ICT services.

Politically, Ethiopia has remained stable since the current ruling party (the Ethiopian People’s
Revolutionary Democratic Front [EPRDF]) took power in 1991. The EPRDF has led an ambitious
reform effort, adopting a more democratic system of governance and decentralizing authority. This
has involved devolving power and mandates first to regional states, and then to districts (woredas)
and village authorities (kebeles). However, much of the core infrastructure, including
telecommunications infrastructure, remains centrally controlled and the relevant institutions, in
addition to civil society, remain very weak.

Evidence for web application system Policy Action

Due to the absence of expertise in the policy and regulatory framework in the country, the web
application remains largely of the radars of civil society and the media. Investment in the web
application is regarded as a private or public-sector as air and discussions about the need for
competition in the telecommunications sector often raise eyebrows in the public sector. ICT’s private
sector is still the least competitive in Africa, constrained by extremely poor broadband infrastructure,
complex and unnecessary red tape, corruption,1 an inadequate enabling environment, and limited
access to capital.

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The situation on the ground is inconsistent with the National ICT Policy in terms of its
implementation which began in 2006, and which aims to develop the ICT sector into a globally
competitive industry and engine of growth (Federal Democratic Republic of Ethiopia, 2009).

The telecommunications sector is one of the strategic pillars in the government’s Growth and
Transformation Plan (GTP) of 2010, in which the state sets an ambitious plan to increase telephony
penetration threefold from 18% in 2012 to 60% by 2015. The main strategies put forward in the GTP
for attaining rapid infrastructure growth include upgrading the existing ICT network, improving the
network quality of service (QOS), providing universal access, building the human resource capacity,
and launching various network-building projects to benefits from converged and affordable services
(Ministry of Finance and Economic Development, 2010). Progress so far shows a large gap between
expectations and the actual performance of Ethiopia’s ICT sector.

The longstanding obstacle to ICT development in Ethiopia stems from inadequate realization of the
implications that sector policy has for sector performance. The ICT policy process in the country
takes place in a manner whereby very few actors make decisions on the sector. The government’s
apprehension about its loss of control (if competition is introduced) is another complicating factor.
The absence of public debate on matters of telecommunications sector reform and the historically
weak private sector mean that the decisions about the fate of the ICT sector are made centrally by the
Prime Minister, through the Council of the Minister of Communication and Information Technology.
Ethiopia has neither reliable sector research to inform decision-making, nor policymakers willing to
move towards a competitive ICT environment by gathering international experience and expertise.
Experience in regulation is nonexistent and thus the necessary regulatory skills need to be
developed.

External factors, including the recent availability to the state of low-interest vendor-led loans, have
also played a part in the government’s continuation of a monopolistic stance in the
telecommunications sector. In 2007, the Ethiopian Government earned a US$1.5billion credit loan
from the Export-Import Bank of China (EXIM) through the Chinese equipment vendor Zhongxing
Telecom Corporation (ZTE), with a payback period of 13 years. While the loan has been useful in
increasing ICT penetration, it has perpetuated state dependency on supplier credit.2

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 The comparative sector growth statistics between Ethiopia and Kenya, in Figure 1, reveal the
inadequate sector performance that is a consequence of Ethiopia’s choice of a non-competitive,
monopoly market structure without regulation.

Comparison of sector growth between Kenya and Ethiopia

Figure 1: Comparison of sector growth between Kenya and Ethiopia

The lack of competition means that Ethio Telecom continues to behave as a monopoly by, for example, setting its
own prices and cross-subsidizing high international call rates with relatively cheap domestic communication tears.
Consumers are left with a typically monopolistic environment – fewer choices, higher costs, and lower QoS.
 A glance at neighboring Kenya’s ICT sector – one structured on open-market principles and
competition – shows that Ethiopia’s policy choice restrains the development of the ICT sector as
an engine of social and economic growth.
 Towards the end of 2012, Kenya had well over 30 million mobile subscribers (CCK, 2012),
compared to 22 million in Ethiopia, and had an international bandwidth of 575 GBPS for
Kenya’s 43 million citizens, a hundred times greater than the 5.75 GBPS available for the close
to 90 million citizens of Ethiopia.

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 A comparison of the bits per second per capita available to Kenyans shows that Kenyans have
access to about 13 kbps/capita compared to 0.066kbps/ capita for Ethiopians – meaning Kenya
has 200 times the per capita bandwidth of Ethiopia.
 Meanwhile, Kenya’s mobile broadband access is about 40 times that of Ethiopia. It is evident
from Figure 1 that Kenya has fared very well compared to Ethiopia due to a policy choice based
on prioritization of competition, private-sector growth, and innovation.
 Kenyan mobile revenue was US$1.6 billion in 2011 – three times that of Ethio Telecom’s
revenue of US$518 billion during the same year (CCK, 2012).
 Enhanced by the spillover brought on by the availability of ancillary services, Kenya’s tax
revenue from the ICT sector alone is estimated to have been well over the revenue of Ethio
Telecom for 2011, making Ethiopia’s choice of a public monopoly supported by supplier credit
loans the costliest path for ICT-based economic development and innovation.
 This RIA Ethiopia Sector Performance Review (SPR) assesses Ethiopian ICT sector
performance against the objectives set out in the GTP and in ICT policies – using supply-side
data from Ethio Telecom, international organizations, and the 2012 RIA Ethiopia ICT Access
and Use Survey. It also assesses whether annual targets, including a five -year target set by Ethio
Telecom in 2007, were met.

Ethiopian ICT sector performance on international ICT indices

Analysis was carried out to see if Ethiopia has improved in international ICT standings over the last
decade. A review of the International Telecommunication Union (ITU) ICT Development Index
(IDI) and the World Economic Forum (WEF) Networked Readiness Index (NRI) indicates that,
despite marginal improvement, Ethiopia remains one of the least connected countries in the world.

ICT Development Index

The IDI is one of the indices that measures ICT readiness using three sub-indices (detailed below):
infrastructure and access, use, and skills (ITU, 2012).

 The infrastructure and access sub-index captures ICT readiness and includes five indicators
(fixed telephony, mobile telephony, international internet bandwidth, households with
computers, and households with internet).
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  The use sub-index captures ICT intensity and includes three ICT indicators (internet users, fixed
[wired] broadband, and mobile broadband).
 The skills sub-index captures ICT capability and includes three proxy indicators (adult literacy,
gross secondary enrolment, and gross tertiary enrolment). This sub-index is given less weight
than the other two sub-indices in the computation of the IDI.

IDI scores for selected African countries

Ethiopia ranked very low, at 150th out of 155 countries, on the 2011 IDI. Ethiopia’s standing was well below
Rwanda, Mozambique, Tanzania, and Zambia, countries that also scored low in the IDI.

Figure 2: IDI scores for selected African countries

Networked Readiness Index (NRI)

Ethiopia fared slightly better on the NRI, which measures progress in: policy, legislative, and legal
environments; readiness of institutions; actual use; and economic and social impacts (WEF, 2012).
Ethiopia ranked 130th out of 142 countries in 2012. The ICT use score has improved but Ethiopia’s
use and impact scores were still low compared to other African countries.

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Figure 3: NRI scores for selected African countries

Web Index

Ethiopia’s overall online information environment has not improved in terms of support for online
access to government information or online transactions. The Web Index of 2012 ranks Ethiopia
57th out of 61 countries included in the study with an overall score of 10.89. Tunisia, South Africa,
Egypt, Mauritius, and Kenya receive the highest African scores, while Ethiopia, Zimbabwe, Mali,
and Burkina Faso scored poorly on almost all indicators (World Wide Web Foundation, 2012).

The Government of Ethiopia is watching the national scores on these international indices and has
been seeking ways to improve them. The Ministry of Communication and Information Technology
(MCIT) went so far as to sponsor a PhD study to investigate how Ethiopia could improve its
rankings on international ICT indices. The governments sponsored study did not look into the
underlying causes of lower international standings – such as policy and regulatory environment,
quality of education, and universal access to broadband infrastructure – but it did point to some
measures that could be pursued to address the low scores.

The underlying reasons for Ethiopia’s slow ICT development related to its history of conflict and
state control – in particular, the opportunities lost during the socialist regime when many significant
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telecommunications sector reforms took place around the globe. The quality of education has also
been declining over the last three decades in Ethiopia, resulting in the country’s inability to create a
critical mass of highly skilled ICT human resources. In sum, the ingredients for a high international
ICT ranking, such as a competitive environment, skilled human resources, and high-quality
broadband infrastructure, are absent. To improve its international ranking, Ethiopia needs to address
all aspects of the ICT ecosystem – infrastructure, skills, policy and regulation, application and
services, as well as intensification of use.

There is a need for:

an open and competitive ICT environment;

broadband infrastructure development, with attention to QoS, reliability, security and affordability; tan
improved business and regulatory environment that stimulates competition, investment, and innovation in the
ICT sector; and
Promotion of quality ICT education with a focus on research and development, industry certification, and
attainment of International Organization for Standardization (ISO) standards.

An enabling policy and regulatory environment is the necessary catalyst for the entrepreneurship, expansion
of the network, affordable access to broadband, and ICT skills development needed to underpin an improved
ICT ranking for Ethiopia on global indices.

ICT sector policy framework

Policy, legal, and institutional arrangements

Ethiopia’s ICT policy process reflects a scenario parallel to most other African countries – where policy
making lags far behind developments in the sector. Development of the National ICT Policy began in the
early 2000s. The National ICT Policy that went through several iterations was approved in 2009.

The policy’s “mission” is:

Develop, deploy and use information and communication technology to improve the livelihood of every
Ethiopian, and optimize its contribution to the development of the country (Federal Democratic Republic of
Ethiopia, 2009).

The “goal” of the policy is “

igorously promote the ICT sector and enhance its contribution in political, social and economic
transformation [...]” (Federal Democratic Republic of Ethiopia, 2009).

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Accordingly, the government has crafted various programmes with the aims of:

creating an enabling policy, regulatory, and legal environment for the growth and utilization of ICTs;
developing the necessary ICT human resources, infrastructure, rural access, standards, and local content;
strengthening the capacity of public institutions to facilitate the mainstreaming of ICTs for socioeconomic
development; and
Facilitating the use of appropriate technologies for development of applications and content for rural
development, good governance, and service delivery in priority sectors.

Public policies governing the telecommunications sector

In an effort to implement the ICT policy, the government has launched a series of high- profile projects
including a National Data Center, interconnection of districts (via Woreda net), connection of secondary
schools to facilitate centralized distance learning, and connection of universities and research institutions,
including those dedicated to agricultural research. The online services rolled out during the 2006-10 policy
implementation period include a Government Portal, a Justice Information System, Drivers and Vehicles
Management Information System, a National Records and Library Management Information System, a Public
Sector Human Resources Information System, a Trade Registry System, and an Exam and Placement System.

While the implementation of these projects, and many policy guidelines that were produced during the course
of the five years from 2006 to 2010 have increased awareness regarding various aspects of the ICT sector,
Ethiopia still faces a substantial gap between its ambition for ICTs to support economic growth and the policy
and regulatory instruments to enable fulfillment of the ambition.

ICT sector policy and laws in Ethiopia are embedded in the monopoly of the communications market (fixed,
mobile, internet, international gateway) as described in Table 1 below.

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There was some effort towards sector reform in the 1990s, following the adoption of a Proclamation that
provides for the regulation of telecommunications services (Proclamation 49/1996, as amended). Herein the
government created the regulator, the Ethiopian Telecommunication Agency (ETA), which was legally
established in November 1996 but was not operational until December 1997 when the Minister of Transport
and Communications appointed a general manager. This was followed by a change in the ETA’s management
in 2002. The last general manager left the country in 2009 and no further formal appointment was made. The
government then decided in 2011 to terminate the ETA and transfer all its state to a new Standard and
Regulatory Directorate that falls under the MCIT.

The government views the telecommunications sector as a strategic asset of the economy. The state’s line of
argument has always been that the incumbent state-owned operator Ethio Telecom is best-placed to promote
universal access to communications services and that there is no need for regulation. It has also been argued
that experiences in Europe and Asia show that monopoly incumbents with financial and administrative muscle
can make rapid and major strides towards universal access.

Ethiopia has attempted to fill the financial and management gap at the state-owned incumbent through the
aforementioned vendor credit from the Chinese EXIM Bank and through revamping the administration of the
incumbent through a contract to France Telecom. However, the results to date show that financing and
management changes at the incumbent are necessary but not such client conditions for building an advanced
communication infrastructure that stimulates innovation and sustainable growth.

Implications of the supplier credit scheme

The injection of finance into Ethio Telecom through a vendor-guaranteed loan agreement of US$1.5billion
was the first move made in recent years by the government to expand the telecommunications network. The
vendor credit scheme works on the basis of China’s state-owned Export-Import Bank (EXIM) providing a
loan to the government of Ethiopia on condition that the government buys only equipment and services from
one or both of two Chinese companies – ZTE and Huawei Technologies. The proposal was attractive for the
government, but came at the expense of reform in the telecommunications sector.

The main factors that stimulated adoption of the vendor credit scheme included:

inadequate revenue for the incumbent to finance network development;

the urgent need to expand communication to districts as per the government’s decentralization programme;
an inability to attract large-scale foreign direct investment, due to the underlying economic and regulatory
risk;
increasing influence of the Chinese government and the prominence of network companies like Huawei and
ZTE in Africa; and
The availability of international cheap bandwidth through undersea cables, which addressed the cost and
connectivity challenges associated with satellite communications and prompted the need for rollout of
domestic backbone.

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In the absence of competition, the supplier-credit scheme can be regarded as an essential move by the
government to upgrade the country’s communications infrastructure using favorable loan terms with long
grace and repayment periods and low interest rates. Furthermore, equipment from ZTE and Huwaei costs
much less than that of their European and United Sates competitors like Alcatel-Lucent, Cisco, Nokia
Siemens, Ericsson, Motorola, and QUALCOMM, resulting in savings for the Ethiopian Government (Chang
et al., 2009).

The scheme has drawbacks, however, in that it creates dependence on Chinese firms and experts fear it will
slow down the reform process in the ICT sector and undercut local innovation and entrepreneurship in the
long run. Evidence of the negative impact of vendor financing schemes on sector reform is the government’s
consolidation of the regulatory framework through the aforementioned abolition in 2011 of the fledgling
sector regulator.

There has been significant professional training and support from ZTE, but at the same time it is Chinese
technical personnel, who have limited command of the English language, who are managing the core
telecommunications network. This makes it difficult for the local engineers to interact with the ZTE
technicians and assume management of the critical national infrastructure. In addition, the scheme does not
allow for research and development and cooperation with local universities, meaning that the prospect for
innovation comparable to neighboring countries is virtually absent in Ethiopia.

The vendor-financing scheme has also made the government prone to increasing dependence on the Chinese
EXIM bank. Ethio Telecom’s revenue is not growing as fast as its infrastructure, and therefore the incumbent
can be expected to accumulate too much debt too quickly, to the point where the government could find itself
unable to pay off the debt. In sum, while the vendor-credit scheme has taken a step towards improving the
infrastructure, it has brought the country two steps backwards in terms of innovation and creation of a
competitive information infrastructure.

Implications of the France Telecom management contract

The second step the state took to try to alleviate the troubles caused by the Ethio Telecom monopoly was
changing the management of the incumbent operator to address the administrative bottleneck that was
hindering network growth. After a successive change of local managers that did not bring about the expected
results,3 the government’s last resort was to engage a foreign firm that would bring in experts with a new
attitude towards business, efficiency, and QoS. A six-month search for external managers in 2010 resulted in
selection of France Telecom to run the incumbent, for an annual fee of US$40million and additional benefits,
until the end of 2012.The two-year contract was aimed at knowledge transfer and “geared towards creating a
world-class telecommunications service provider capable of rendering international standard services”
(Minister of Communications and Information Technology, 2011).

After assuming the management mandate, France Telecom introduced a series of cost-cutting measures,
including the unpopular retrenchment of 8 000 state of the incumbent, which France Telecom rebranded as
Ethio Telecom (instead of Ethiopian Telecommunications Corporation). France Telecom also introduced a
host of changes, including streamlined single-window service at its public outlets, reduction of broadband
tares, and handset and subscription bundles designed to increase mobile network use. However, the changes
did not create a world-class telecommunications service provider. During the France Telecom tenure,
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 telecommunications revenue changed only slightly in relation to the (growing) number of subscribers (see
Figure 4).

Comparison - Ethio Telecom mobile subscriber and revenue growth

Figure 4: Ethio Telecom mobile subscriber and revenue growth

Market and financial analysis

The market

Telecommunications remains one of the sectors where foreign direct investment is prohibited in Ethiopia.
Ethio Telecom continues to operate the fixed, mobile, broadband, and value-added services without a
challenge from local or foreign private sectors. Other sectors that are closed to foreign investment, such as
financial services (insurance and banking), the media (TV and radio broadcasting and newspaper publishing),
the transportation industry and the retail sector, have been opened up for domestic private-sector investment,
but not the telecommunications sector.

Because of the absence of competition, Ethiopia does not have vibrant software and networking industries
with the potential to emerge as challengers to Ethio Telecom. The only domestic private players in the
telecommunications market are mobile handset, voucher resellers, handset repair outlets, and internet cafes.

Financial analysis

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 As mentioned above, telecommunications revenue has seen substantial improvement in recent years – from
US$431million in 2010 to US$685million in 2012, as per Figure 6 below – but the revenue increases have
failed to track network growth.

Figure 5: Telecommunications revenue (US$ millions)

Dialup and broadband internet subscribers in Ethiopia

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Figure 6: Dialup and broadband internet subscribers in Ethiopia

Comparison of household internet penetration in selected African countries

Figure 7: Comparison of household internet penetration in selected African countries

2.3.Employment opportunity in information technology sector in Ethiopia

ICT sector is largest means of employment in the world since it is highly labor intensive in nature.
Particularly, it is an important sector for country's whose economy is based on Technology to transform its
economy in the way of industrial development. Therefore, ICT sector was planned by Ethiopian Government
as one of the main strategic center for economic development of the country. Hence recently this sector
particularly, software industries have shown rapid expansion and development. Recently, information

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technology Department made technology visits and demand assessment study on more than 2, main ICT
industries of the country.

The conclusion of this industrial visit study and demand assessment confirm that the earlier planned program
(establishment of IT Institute in training of software engineers and others) as per its program is too late in
order to supply trained personnel timely to the booming ICT industries of the country. Due to lag of training
there is high demand of software engineers in the current context of Ethiopian ICT industries. Therefore, to
start software engineering training as per demand of IT industry, this professional profile is prepared for
software engineering at the undergraduate level (B.Sc. programmer).

2.4.The role of information and communication technology sector or

economic infrastructure
The information and communication technology industry is one of the latest, largest and most global
industries in the world. It is the typical ‘starter’ industry for countries engaged in import-orientated
industrialization (Gereffi 2002) and is labor-intensive. ICT offers a range of opportunities including entry-
level jobs for unskilled labour in developing countries. The technological features of the ICT industry have
made it suitable as the first step on the ‘technology ladder’ in poor countries some of which have experienced
a very high output growth rate in the sector, United states, India Australia, United kingdom, Canada, Russia,
Philippines, Romania, South Korea and Estonia

2.5.Economic aspects of information technology

The ICT sectors are very important for a handful of countries, in terms of trade, GDP and employment and
have contributed significantly in several other countries. The ICT industries provide opportunities for import
and export diversification and expansion of technology exports for low-income countries that can exploit their
labor cost advantages and fill emerging niches and meet buyer demands. There are also dynamic effects of
ICT industries and these dynamic effects are greater, the more linkages have been built up between the ICT
industry and local software suppliers. At the macro level there are a number of ways in which the ICT
industries affect economic development.

2.6.Social aspects
There are also important social aspects of the ICT industry (apart from the jobs provided). While wages in
developing countries in some assembly activities will be lower than wages in developed countries in
downstream activities in the same clothing value chain, this misses the point for two reasons.

Firstly, without appropriate policies and institutions, developing counties often do not have the skills to enter
into higher value added activities such as design and marketing and hence will not be able to command a

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similar wage as in headquarter firms in developed countries. We find that textile wages are higher than
garment assembly wages, and the latter activities are more prevalent in poorer developing countries.

Secondly, a better comparator is what workers would otherwise have earned had there been no ICT industries,
e.g. in other domestic industries (e.g. ICT activities offer women or men better employment opportunities
than they would have had in the rural area, and pay twice the rate of domestic servants in Canada.).
Comparing on wages, while ICT activities are not amongst the best paid jobs, they are certainly not the worst
even amongst technology activities, let alone software activities. But it would be better to compare on access
to employment, as the alternative for women in (urban) ICT assembly firms in Romania, South Korea and
Estonia is seeking employment in rural areas which is dominated by men and where gender inequalities are
higher.

Wages paid to software developer on average more than double those paid to agricultural laborers (with the
exception of Mauritius) and this covers only the formal sector. ICT wages are higher than in several other
software industries (networking , wood processing, leather etc.) but are half the average manufacturing wage,
suggesting that textiles and clothing is a first step up the value-added industrialization ladder beyond
agriculture but before many other manufacturing and services activities. ICT wages are higher than those paid
to agricultural workers. Foreign firms and exporting firms tend to pay higher wages than local firms, and we
provide evidence for this for six countries (United states, India, Australia, United kingdom, Canada and
Russia and two industries (programming and database).

2.7.The supply chain in IT Infrastructure Capability

IOS is a general term referring to any information system implemented to enable inter-organizational
information processing. Because the focus of this research is on the context of supply chains, SC IT is used to
refer to the IOS artifacts used in supply chains for the management of business transactions and
communications between SC partners.

The theoretical basis for defining the business value of a supply chain has primarily been from a transaction
cost economics(TCE) viewpoint. TCE suggests that a major benefit of IOS is reducing transaction and
coordination costs. However, the benefits obtained from IOS may go beyond simple efficiency in order to
achieve performance goals (Straub and Watson 2001). The broadened view of IOS goes beyond TCE and
calls for a new way of theorizing IOS values. In fact, there was recently a call for research studying IOS using
empirical methods in the post-EDI era (Robey et al. 2008). Robey et al. (2008) argue that although many
empirical studies on IOS adoption and the consequences of IOS provide descriptions of the features and
functions of IOS, those papers did not engage with IOS artifacts on theoretical grounds. Their suggestion
implies that, instead of treating IOS as a monolithic black-box with specific functions hidden from view,
researchers should focus on the characteristics of IOS that are conferred by specific IOS functions.

To this end, one theoretically grounded approach to study the role of SC IT infrastructure on supply chain
performance is to conceptualize SC IT as capabilities that confer business and technological functionalities to
supply chains. The resource-based view of the firm (RBV) is an important theoretical framework to study the
impact of IT capabilities on firms. RBV provides us with the foundation to conceptualize IOS as specific

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 capabilities (Raiet al. 2006; Saraf et al. 2007). Capabilities refer to “the repeatable patterns of actions in the
use of assets to create, produce, and/or offer products to a market” (Wade and Hulland 2004, p.109). IT
capability thus can be understood as a firm‟s repeatable patterns of actions in the use of IT-related resources.
In a supply chain that involves at least a dyadic relationship, SC IT infrastructure capability is defined as the
ability of SC firms to collectively mobilize and deploy IT infrastructure implemented in the supply chain.

Figure 9: The Global Connectivity System

2.8.THE STRUCTURE OF THE ICT SECTOR

The Challenge of Defining the ICT Sector

One factor contributing to more narrow and bifurcated thinking on the role of ICTs in sustainable
development observed to date is that economics-based methodologies for describing, categorizing and
targeting sectors draw their boundaries based on groupings of discrete goods and services. This promotes
consideration of the ICT sector simply in terms of the discrete tools it produces. Such a framing impedes
attributing to their point of origin the countless influences that ICT innovation has on issues of sustainability
beyond the traditional border of the ICT sector. This in turn limits thinking on how these influences could be
mitigated or guided towards contributing positively to achieving sustainable development. An alternative
viewpoint on the ICT sector is needed that transcends traditional sectorial boundaries in order to facilitate a
thorough understanding of these influences and the actors shaping them.

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 The permeation of ICTs into more and more of our social processes has made it increasingly difficult to draw
acceptable boundaries around all actors and activities that play roles in the complex ICT innovation, supply
and demand dynamic without blurring established sectorial boundaries and measurement practices. With
evidence mounting of the significant role ICT diffusion has been playing in economic growth, economists
have been keen to quantify this influence in order to single out those responsible factors for focused
investment and policy support. Such efforts however have succumbed to narrow definitions of the ICT sector.
For example, the member nations of the Organization for Economic Co-operation and Development (OECD)
settled on an initial definition of the ICT sector in 1998 which was “limited to those industries which
facilitate, by electronic means, the processing, transmission and display of information, and it excludes the
industries which create the information, the so-called ‘content’ industries.”2 Unfortunately such narrow
treatments for the convenience of simplifying the accounting of economic contribution propagate the view of
the ICT sector as an island onto itself—as being solely the domain of manipulating, transmitting and
deciphering “1s” and “0s”— making it a greater challenge to shed light on trends and practices inherent to the
supply and demand dynamics between the ICT sector core and its fuzzy periphery. Figure 1 helps to illustrate
how the 1998 OECD deliberations arrived at their preliminary definition of the ICT sector.

Overlap between the IT, telecommunications and information content activities of firms
(Adapted from a Finnish model)

Figure 10: Overlap between the IT, telecommunications and information content activities of firms

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2.9.The ICT industry in Global Connectivity System
The second approach is to view ICTs and all the related actors and stakeholders as a global system. The
definition of a system can be as simple as “a set of interacting or interdependent entities … forming an
integrated whole.”But this simplicity supports a focus on the unique institutions and norms that have played
vital roles in the evolving activities of the ICT sector, rather than the more restrictive view on the products
and services those activities produce. It is these institutions and norms that have shaped the behavior of the
entities that carry out their activities within the system, as well as define their interdependence as a system.
Many such entities would not have been considered a part of an ICT sector based on a more narrow
definition. However there can be no doubt as to the roles they play in shaping the activities of the Global
Connectivity System including its innovation, thereby justifying their inclusion as players in determining the
influence of the system as a whole.

The traditional definition of the ICT sector of course encompasses a wide variety of manufacturing, software
and service industries responsible for producing ICT products and services. The manufacturers of components
and circuit boards, which in turn feed the manufacturers of computers, peripherals, data storage devices,
networking devices, communication devices and entertainment devices—consumer, business and military—
include many recognizable company names.9 The broad categories of software industries include application
software, business software and services, multimedia and graphics software, and technical and system
software—both home and enterprise—also include many well-known company names. The industries using
many of these products to offer services include CATV systems, diversified communication services,
healthcare information services, information technology services, Internet information providers, Internet
services, security software and services, telecom services and wireless communications—adding many
additional household names to the ICT sector ranks.

The absence of consideration for the institutions and norms that have shaped the behavior of these ICT sector
entities becomes glaringly obvious when one considers the crowning achievement of the ICT sector, that
being the global communications infrastructure. Who among these entities is responsible for the distribution
of Internet IP addresses; Internet domain name and management of the Internet root servers; the development
and publishing of communication, networking and Internet standards? What entities coordinate all of the
policy discussions involved with arbitrating and agreeing on these functions? Given the trans-border nature of
the global communications infrastructure, what international organizations oversee or host policy discussions
between nation states on its intersection with other issues of common

2.10.The Priority Sectors

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2.11.GTP Priority Sectors
Table 1: growth and transformation plan

GROWTH AND TRANSFORMATION PLAN (GTP)

PRIORITY SECTORS

1 Agriculture 4.2 Road Transport

2 Industry development 4.3 Shipping Transport

2.1 Textile and Garment 4.4 Air Transport

2.2 Leather Industry 4.5 Energy

2.3 Sugar 4.6 Water and Irrigation

2.4 Cement 4.7 Telecommunication

2.5 Metal Engineering 4.8 Urban Development

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 2.6 Chemical 5. Trade

2.7 Agro Processing 6. Health

3 Mining 7. Culture, Tourism, Sport

4 Economy and infrastructure 8. Social

4.1 Rail Transport

The annual revenue for 2011 was US$518million, a 25% increase from 2010, while the corresponding
earnings before interest, taxes, depreciation, and amortization (EBITDA) were US$401million. The
incumbent considered this 11% growth to be short of projected revenue. In 2012, the EBITDA was
US$491million, an increase of 22% from the previous year.

Ethio Telecom does not have a cost breakdown for the different services (mobile, fixed, broadband, and
internet), although it publishes revenues that accrued from these different services. Mobile revenue accounts
for about two thirds of its revenue, followed by fixed services.

Telecommunications revenue as a contribution to GDP (%)

Figure 11: Telecommunications revenue as a contribution to GDP (%)

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2.11 software exporting countries
TOP TEN software exporting counties are:

1.United states
2.India
3.Australia
4.United kingdom
5.Canada
6.Russia
7.Philippines
8.Romania
9.South Korea and
10.Estonia

2.12 Software Production Share company or institution

Software Production Share Of By Region in Ethiopia

no Company name
1 University in Ethiopia
2 Colleagues in zone and woreda
3 Sector offices in neighbors such as municipality, trade industry,
agricultural, transport, sport, water supply, electric power , health
center ,public service, child and youth center, police office
4 Hospital , pharmacy and clinic in city
5 School in rural or urban area
6 Banks in city
7 Financial institution
8 Air line office
9 Bus station
10 Marketing
11 Automobile
12 Political, social , economic ,culture and
13 Nongovernmental organization

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Chapter three
3.0 Methodology

3.1 Research design

COMPUTER SOFTWARE / SERVICES AND ITES EXPORTS OVERVIEW
In recent times, Software development and information technology enabled services (ITES) including
business process outsourcing (BPO)/ knowledge process outsourcing services (KPO) industry in India has
emerged as one of the most dynamic and vibrant sectors in India's economy. With a small beginning in early
80s, it has now grown into a broad based comprehensive industry. Today, India's competence in IT, more
significantly in computer software and information technology enabled services recognized globally.

India today is the global leader in the outsourcing industry with half of the world's back office being located
here. Indian outsourcing revenues at US$ 58 billion in 2011 accounted for over 50% of the global offshore
market share as per a research. Knowledge Process outsourcing (KPO) is one of the new dimensions of BPO
that has given global outsourcing scenario a new meaning. Over a decade KPO has had a tremendous growth
in India. Leading countries turn to India to get their job done when compared to other countries. The main
reason for outsourcing to India is the highly rated knowledge pool and low costs as compared to other
countries.

Indian IT firms and IT professionals have won world-wide recognition in terms of their technical competence,
domain knowledge, experience and expertise for offering quality IT services, and their exposure to working
on various platforms and systems.

3.2 Data Source

3.2.1 Presence of Global IT players in India

There are a large number of multi-national IT enterprises operating in India in sectors such as: Integrated
Chip Design, System software, communication software, R&D Centres, Technology Support sector, captive
support sector, BPO Sector etc reaping the cost and quality advantages.

These multinational include Siemens/Philips, Intel, Texas Instruments etc. (Chip Design); Siemens, Motorola,
Lucent Technologies, Sony, Nortel etc. (Communication Software); Google, Yahoo etc. (R&D Centres);
Axa Business Services, Swiss Shared Services, Siemens Shared Services etc. (BPO Sector); Accenture,
DELL, HSBC, GE Capital, Fidelity (Captive Support Sector), Hewlett Packard, IBM, CISCO, Oracle,
Microsoft, SAP, NOKIA, Vodaphone etc.

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 3.2.2 Spectrum of IT Services/ ITES from India
India has already established her brand equity in the global IT market. Indian IT software and services firms
offer software product/packages; a wide spectrum of IT services including system management and
maintenance, mobile application

Cloud Computer, Next generation user interfaces, GPU computing, consultancy services, system integration,
chip design, E-Governance, E-Commerce, IT enabled services covering banking/financial/insurance sector.
Their IT enabled services also include CAD/CAM Multimedia, animation work, BPO (Business Process
Outsourcing) assignments, Call centre related assignments, as well as Knowledge Process Outsourcing (KPO)
/ Legal process Outsourcing (LPO), medical lab, diagnostic and dental services, medical transcription
services, e-publishing data conversion or digitization, type-setting, copy editing, content and design, graphics
etc.

The software industry is not only growing exponentially, it is moving up the value chain. It is evolving, from
the initial staffing to software development - where it is currently the world's major supplier of engineers - to
integration and IT business consulting.

3.2.3STRENGTHS OF INDIAN ITS INDUSTRY WITH ETHIOPIA

TO BE AS IS
India Ethiopia
 One of the largest pools of technically  the smallest pools of technically qualified low class
qualified high class IT manpower IT manpower
 Enormous skilled human resource compared  Enormous not skilled human resource compared to
to developed countries leading to lower developed countries leading to lower manpower cost
manpower cost nearly one tenth of those in nearly one tenth of those in developing nations, thus
developed nations, thus giving India a giving Ethiopia a comparative advantage.
comparative advantage.  Offers a narrow range of services from support / data
 Offers a wide range of services from support / processing to sophisticated software systems etc.
data processing to sophisticated software  poor experience of working with small local
systems etc. companies and enjoy low credibility
 Rich experience of working with large global  Expertise on a narrow variety of platforms
companies and enjoy high credibility  Accommodating nature of Ethiopia IT workforce
 Expertise on a wide variety of platforms
 Accommodating nature of Indian IT
workforce

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 3.2.4 QUALITY OF INDIAN IT EXPERTISE
Today the world recognizes India as a source of high quality IT manpower. Nearly 35 percent of world wide SEI
CMM level 5 certified companies are Indian. The Capability Maturity Model (CMM) for Software describes the
principles and practices underlying software process maturity and is intended to help software
organizations improve the maturity of their software processes in terms of an evolutionary path from ad hoc,
chaotic processes to mature, disciplined software processes.

Over 300 Indian computer software and services have already obtained ISO 9000 or CMM level 2 certification. It
is because of this high quality of Indian IT sector that the majority of multinational companies in IT have either
their software development or research center in India. One third of the e-commerce start-ups in the Silicon
Valley continue to be lead by Indian. Over half of the Fortune 500 companies are outsourcing their software
requirements to India.

High quality of IT services has put Indian companies in worlds Top 100 Outsourcing companies such as Infosys,
Wipro Technologies, Tata Consultancy Services, ACS Genpact, Neusoft, HCL, Igate, Mindtree, Tech Mahindra,
Mastek , ITC, HCL Technologies, Zensar Technologies, Patni computers.

3.2.5 MANPOWER EMPLOYED AND EDUCATIONAL INSTITUTIONS

Software is a knowledge driven industry. It requires a team of highly skilled professionals for its success. Today,
the Indian IT Services and ITES sector employs over 2.97 million knowledge professionals. The industry
indirectly employees another 9 million people.

Almost all major IT players in the world have set up subsidiaries or collaborations in India. The major attraction
being an "abundance of technically qualified and cheap software manpower". This may have been the case before
the start of the growth phase, but now there is, in fact, an acute shortage of qualified and trained manpower. This
is getting reflected in the spiraling salaries (one of the highest average starting salary today), and more
importantly, a frequent job-hopping culture.

India, today have 7 Indian Institute of Technologies (IITs) and over 300 other Regional Engineering colleges /
private colleges imparting IT education. As per a study approximately 5000 people are needed every year to meet
the growth targets of the software industry. However, the total production from education and training institutions
today is only about a third of this.

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 3.2.6 PRODUCTION
Production of Computer Software and Services during the year 2012-13 is estimated to be Rs. 509700 crore (US$
94.34 billion) registering a growth of 22 percent (8 percent in US$ terms) over the year 2011-12 when the total
production of Computer software / Services was estimated to be Rs. 418265 crore (US$ 87.14 billion).

Production of Computer Software / Services has been growing at an annual average growth rate of 18.08 percent (
11.34 percent in US$ terms) during the past five years.

Figure 12:computer software/services production

3.2.7 SHARE IN GDP

India's Gross Domestic Production (GDP) at current prices is estimated to be Rs. 10020620 crore (US$
1855.67 billion). Computer Software / Services production estimated at US$ 94.38 billion accounts for a
share of 18 percent in India's GDP at current prices during the year 2012-13.

3.2.8 DOMESTIC SOFTWARE / SERVICES INDUSTRY.

During the year 2012-13 India's domestic computer software / services market is estimated to be Rs. 104700
core (US$ 19389 million) registering a growth of 21.86 percent (8.32 percent in US$ terms) over the year
2011-12 when the domestic software / services industry was estimated at Rs. 91765 core (US$ 87139
million).

Share of Export & Domestic Segments in Computer Software / Services Production

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 EXPORT OF COMPUTER SOFTWARE / SERVICES INCLUDING ITES / BPO.

GROWTH IN %AGE SHARE OF EXPORT IN PRODUCTION OF SOFTWARE / SERVICES 2006-07 TO 2012-13

SEGMENT

Figure 13: EXPORT OF COMPUTER SOFTWARE / SERVICES INCLUDING ITES / BPO.

Out of the total production of computer software / services 79.46 percent is exported and only 20.54 percent is
consumed by the domestic market.

Export of Computer Software / Services (including ITES / BPO) registered a growth of 24.04 percent (10.26
percent in US$ terms) during the year 2012-13 over the year 2011-12. In value terms, export of this sector
during 2012-13 is estimated to be Rs. 405000 crore (US$ 75000 million) up from Rs. 326500 core( US$
68021 million) estimated in the year 201112.

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 GROWTH IN EXPORTS OF COMPUTER SOFTWARE & SERVICES (INCLUDING ITES) 2007-08 TO 2012-
13

Figure 14: growth in exports of computer software & services (including ITes)

3.3 EXPORT OF IT SOFTWARE / SERVICES

Export of IT Software / Services estimated at Rs. 307000 core (US$ 56.85 billion) during 2012-13 registered
a growth of 27.54 percent (13.37 percent in US$ terms) over the year 2011-12 when the export of IT software
and services was estimated at Rs. 240700 core (US$ 50.14 billion).

3.3.1 ITES / BPO EXPORT

India today with its English speaking skilled manpower, high quality of services, very high productivity and a
conducive policy environment with strong government support is the most preferred destination for ITES.
India is a popular choice for customers seeking outsourced services because it is able to offer a 24X7 service
and reduction in turnaround times by leveraging time zone differences. While customers are initially attracted
by low costs, they stay on and expand because of the quality and productivity that India offers. India will
remain a popular offshore Country. Outsourcing to India is turning out to be a blessing for the top companies.
India' s edge in quality and cost benefit is what is drawing organizations towards her. The level of excellence
India has attained in this field has not come overnight. Government policies, infrastructure, large number of
people who can speak fluent English, who can adapt to western accents, have all played a pivotal role in
India's success.

During the year 2012-13, export of ITES/BPO registered a growth of 14.22 percent (1.53 percent in US$
terms) over the year 2011-12. In value terms, export of ITES/BPO is estimated to be Rs. 98000 core (US$
18.15 billion) up from Rs. 85800 core (US$ 17.87 billion) estimated in the year 2011-12.

3.3.2 INDIA'S ITES-BPO SUPPORTING OTHER LANGUAGES.

The Indian BPO industry is now tapping global markets. After acquiring businesses from major English-
speaking markets, especially Britain and the US, the Indian BPO companies are now looking towards non-
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English speaking markets to tap their potential in these unexplored terrains. A large number of companies
from non-English speaking European countries too are eyeing the Indian BPO industry for outsourcing their
work, leading to a spur in the demand for persons proficient in foreign languages. Today all the major ITES-
BPO companies are offering multi language support and thus expanding the horizon of their services to the
global markets.

3.3.3 INDIA – THE MOST PREFERRED ITES-BPO DESTINATION

• Two million students graduate each year

• 122,000 Engineers every year

• English speaking and IT savvy

• Cost reduction up to 50 per cent

• Wage Differential.

• Lower Infrastructure Costs

• Favorable time lag: 12 hours with US & 5 hours with Europe

• Overnight turnarounds possible.

• Resources with experience of industrial, financial and legal systems similar to the west.

• Strong domestic IT services industry to support IT led BPO.

• Largest SEI CMM companies worldwide

US will continue to be the source of major business opportunities in ITES, followed by Europe. However,
Asia Pacific is expected to the region with maximum growth potential. Major verticals, which are expected to
grow substantially, include finance and accounting, sales and marketing, logistics, purchasing, administration
and legal services.

3.3.4 INDIA'S SHARE IN WORLD SOFTWARE / SERVICES MARKET

World software and services market is dominated by USA with the share of 39 percent followed by Japan
with the share of 12 percent. World total Software / Services market during the year 2012-13 is estimated to
be US$ 960 billion. India's share in the world market during the year 2012-13 is estimated to be 9.8 percent
as compared to 9 percent estimated in the year 2011-12.

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 WORLD MARKET OF COMPUTER SOFTWARE / SERVICES: 2012-13

Figure 15: world market of computer software / services: 2012-13

3.3.5 MAJOR COUNTRIES OF EXPORT

USA remains the top destination for India's export of Computer software / services during the year 2012-13 as
well. USA accounts for a share of over 58.25 percent in India's total export of computer software / services.
In value terms, export of software / services to USA during the year 2012-13 is estimated to be Rs. 235925
core (US$ 43.69 billion) as compared to Rs. 189200 core (US$ 39.41 Billion) estimated in the year 2011-12.
Percentage share of USA has increased from 57.95 percent in 2011-12to 58.25 percent in 2012-13. UK
remains the 2nd top destination for India's export of computer software / services during the year 201112 as
well with a share of 19.59%. Singapore remains as the top 3rd destination followed by Australia and
Germany. The other major countries for India's software export are during the year 2012-13 Netherlands,
UAE, Japan, Canada and Mauritius. Together, the top 10 countries accounts for 90.44 percent of India's total
software and services export. The remaining 141 countries accounts for a share of 9.56 percent.

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 3.4 Procedures of data collection
3.4.1 Data collection
Data collection is a term used to describe a process of preparing and collecting data, for example, as part of a
process improvement or similar project. The purpose of data collection is to obtain information to keep on
record, to make decisions about important issues, or to pass information on to others. Data are primarily
collected to provide information regarding a specific topic.

Data collection usually takes place early on in an improvement project, and is often formalized through a data
collection plan which often contains the following activity.

 Pre collection activity — agree on goals, target data, definitions, methodsCollection — data collection
 Present Findings — usually involves some form of
sorting[3] analysis and/or presentation.

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Prior to any data collection, pre-collection activity is one of the most crucial steps in the process. It is often
discovered too late that the value of their interview information is discounted as a consequence of poor
sampling of both questions and informants and poor elicitation techniques. After pre-collection activity is
fully completed, data collection in the field, whether by interviewing or other methods, can be carried out in a
structured, systematic and scientific way.

A formal data collection process is necessary as it ensures that data gathered are both defined and accurate
and that subsequent decisions based on arguments embodied in the findings are valid. The process provides
both a baseline from which to measure from and in certain cases a target on what to improve.

Other main types of collection include census, sample survey, and administrative by-product and each with
their respective advantages and disadvantages. A census refers to data collection about everyone or
everything in a group or population and has advantages, such as accuracy and detail and disadvantages, such
as cost and time. A sample survey is a data collection method that includes only part of the total population
and has advantages, such as cost and time and disadvantages, such as accuracy and detail. Administrative by-
product data are collected as a byproduct of an organization's day-to-day operations and has advantages, such
as accuracy, time simplicity and disadvantages, such as no flexibility and lack of control.

3.4.2 Requirement analysis

Requirements analysis in systems engineering and software engineering, encompasses those tasks that go into
determining the needs or conditions to meet for a new or altered product, taking account of the possibly
conflicting requirements of the various stakeholders, such as beneficiaries or users. It is an early stage in the
more general activity of requirements engineering which encompasses all activities concerned with eliciting,
analyzing, documenting, validating and managing software or system requirements. Requirements analysis is
critical to the success of a systems or software project. The requirements should be documented, actionable,
measurable, testable, traceable, related to identified business needs or opportunities, and defined to a level of
detail sufficient for system design. Requirements analysis involves frequent communication with system users
to determine specific feature expectations, resolution of conflict or ambiguity in requirements as demanded by
the various users or groups of users, avoidance of feature creep and documentation of all aspects of the
project development process from start to finish. Energy should be directed towards ensuring that the final
system or product conforms to client needs rather than attempting to mold user expectations to fit the
requirements.
Requirements analysis is a team effort that demands a combination of hardware, software and human
factors engineering expertise as well as skills in dealing with people.
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Figure 16: Requirement analysis

3.4.3 Requirements Determination

Collection of information is at the core of systems analysis. Information requirement determination (IRD) is
frequently and convincingly presented as the most critical phase of information system (IS) development, and
many IS failures have been attributed to incomplete and inaccurate information requirements. System
analysts must collect the information about the current system and how users would like to improve their
performance with new information system. Accurately understanding the users’ requirements will help the
system developing team deliver a proper system to the end users in limited time and limited budget. If user
just wants an “ant”, definitely, an “elephant” is improper. There are many methods to collect information.
This article will discuss some basic and widely adopted ones of them. Interviewing is one of the primary ways
to gather information about an information system. A good system analyst must be good at interviewing and
no project can be conduct without interviewing. There are many ways to arrange an effectively interview and
no one is superior to others.

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3.5 Feasibility study
Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of the
existing business or proposed venture, opportunities and threats as presented by the environment, the
resources required to carry through, and ultimately the prospects for success. In its simplest terms,
the two criteria to judge feasibility are cost required and value to be attained. As such, a well-
designed feasibility study should provide a historical background of the business or project,
description of the product or service, accounting statements, details of the operations and
management, marketing research and policies, financial data, legal requirements and tax obligations.
Generally, feasibility studies precede technical development and project implementation.

Nine common factors

The acronym TELOS refers to the areas of feasibility - Technical, Economic, Legal, Operational,
Scheduling, market , resource, cultural and financial .

3.5.1 Technology and system feasibility

The assessment is based on an outline design of system requirements in terms of Input, Processes,
Output, Fields, Programs, and Procedures. This can be quantified in terms of volumes of data,
trends, frequency of updating, etc. in order to estimate whether the new system will perform
adequately or not. Technological feasibility is carried out to determine whether the company has the
capability, in terms of software, hardware, personnel and expertise, to handle the completion of the
project. When writing a feasibility report the following should be taken to consideration:

A brief description of the business to assess more possible factor/s which could affect the study
The part of the business being examined
The human and economic factor
The possible solutions to the problems

At this level, the concern is whether the proposal is both technically and legally feasible (assuming
moderate cost).

3.5.2 Economic feasibility

Economic analysis is the most frequently used method for evaluating the effectiveness of a new
system. More commonly known as cost/benefit analysis, the procedure is to determine the benefits

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and savings that are expected from a candidate system and compare them with costs. If benefits
outweigh costs, then the decision is made to design and implement the system. An entrepreneur must
accurately weigh the cost versus benefits before taking an action.

Cost-based study: It is important to identify cost and benefit factors, which can be categorized as
follows:

Development costs; and

Operating costs.

This is an analysis of the costs to be incurred in the system and the benefits derivable out of the
system.

Time-based study: This is an analysis of the time required to achieve a return on investments. The
future value of a project is also a factor.

3.5.3 Legal feasibility

Determines whether the proposed system conflicts with legal requirements, e.g. a data processing
system must comply with the local Data Protection Acts.

3.5.4 Operational feasibility

Operational feasibility is a measure of how well a proposed system solves the problems, and takes
advantage of the opportunities identified during scope definition and how it satisfies the
requirements identified in the requirements analysis phase of system development.

3.5.5 Schedule feasibility

A project will fail if it takes too long to be completed before it is useful. Typically this means
estimating how long the system will take to develop, and if it can be completed in a given time
period using some methods like payback period. Schedule feasibility is a measure of how reasonable
the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some
projects are initiated with specific deadlines. You need to determine whether the deadlines are
mandatory or desirable.

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3.5.6 Market feasibility
Market feasibility studies typically involve testing geographic locations for a real estate development
project, and usually involve parcels of real estate land. Developers often conduct market studies to
determine the best location within a jurisdiction, and to test alternative land uses for given parcels.
Jurisdictions often require developers to complete feasibility studies before they will approve a
permit application for retail, commercial, industrial, manufacturing, housing, office or mixed-use
project. Market Feasibility takes into account the importance of the business in the selected area.

3.5.7 Resource feasibility

This involves questions such as how much time is available to build the new system, when it can be
built, whether it interferes with normal business operations, type and amount of resources required,
dependencies,

3.5.8 Cultural feasibility

In this stage, the project's alternatives are evaluated for their impact on the local and general culture.
For example, environmental factors need to be considered and these factors are to be well known.
Further an enterprise's own culture can clash with the results of the project.

3.5.9 Financial feasibility

In case of a new project, financial viability can be judged on the following parameters:

Total estimated cost of the project

Financing of the project in terms of its capital structure, debt equity ratio and promoter's share of
total cost
Existing investment by the promoter in any other business
Projected cash flow and profitability

3.6 Sampling Design

When determining requirements, it is likely that you will have to collect information from a number
of people. If the organization is small, you may choose to collect information from all people - this is
called a census. Alternatively, you may choose to collect information from only nominated
specialists. This is known as judgment sampling or convenience sampling. Not all organizations

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are small and localized: consider determining requirements for an organization with over 2000
computer users spread across 4 continents. In this situation, it is prudent to survey a sample of users.
Two commonly used sampling techniques are randomization and systematic sampling.
Randomization is a sampling technique characterized as having no predetermined pattern or plan
for selecting sample data.
Systematic sampling is a technique that attempts to reduce the variance of the estimates by
spreading out the sampling. One example would be choosing documents or records by formula
which avoids very high or low estimates.
The use of sampling is much more time efficient, and that is why sampling is so commonly used.
Unfortunately, the improper use of sampling can lead to methodological disaster.

Student population =3000

Sample size 5%=150 student enrollments
Occupation Student enrollments Sample size
Hotel and hospitality service 200 10
IT studies 800 40
Construction 1500 75
Manufacturing 500 25
TOTALS 3000 150

3.7Method of Data Analyses Plans

n Tasks Num Month

o ber Janu Febru M Ju J
of ary ary Ma Ap ay ne ul Aug
days rch ril y ust
1 Data 30
analysis days
2 Gather 15
data days
3 Record 15
data days
4 Require 30
ment days
collectio
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 n
5 System 30
analysis days
6 System 30
design days
7 coding 30
days
8 Impleme 30
nt days
9 Testing 30
days

Value chain selection criteria

RATING/

N Web Big data Easy Stricture data

O
CRITERIA
based access

5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1

X X X X
1 GDP share

An Economic development of a country

is the total sum of GDP shares for every
product/subsector. A product that has a
greater GDP share in an economy is
more likely to create jobs and alleviate
poverty.

2 .Data Storing

X X X
The Growth and Transformation Plan
(GTP) is a national five-year plan
X
created by the Ethiopian Government to
improve the country's economy.

The following table shows the ranking

of the identified priority sectors, which
says that Agriculture is the main priority
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 followed by other sectors within the
country

2 Other school using system X X X X

.
2
Some of school using this web management
style more are manually but higher institution
and colleges using some technological
system.

All of our country are not this computerized

technology program.

3.8Survey Team
survey team

N Name Position Organization (Sector) Address

o1 Arbaminch P/T/S/Institute
Yismawu sintayehu Trainer 0916312596
2 Amanuel Desta Trainer Arbaminch P/T/S/Institute 0949238325

3 Yalemberehan Tesfaye Trainer Arbaminch P/T/S/Institute 0923859760

4 Eyerusalem Shigute Trainer Arbaminch P/T/S/Institute 0948211932

5 Arbaminch P/T/S/Institute
Kedir Oumer Trainer 0911737035

3.9Survey Area
The survey area is covered in ARBAMINCH TOWN and ARBAMINCH POLY TECHNICE COLLEGE

3.10 Data Collection And Activities

Creation of team composed of 5 trainers and Coordination from same Institute arbaminch (AMPTC) Web
based School Management system.

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3 – Persons in Arbaminch town Registered officer and Lecture of ICT department.
Introduction of survey team about the survey aim and activities then Collecting data using prepared
questioner.

Chapter four

4. Data analysis and interpretation

4.1. Web based application Value Chain Map And Comparison Between AS IS & TO
BE as is

Bench mark

INPUT ACTIVITIES OUTPUT IMPACT

Outcome

It infrastructure Web based system Just in time care Improved quality

Impact of
equipment & development of information
system status
network
of target
population
Better Enhanced Improved
Man power Training and
professional efficiency system related
service provider education
communication quality of data
or information
Enlarged Customer
Skills and
catchment area satisfaction
knowledge

Improved Provider 46 | P a g e
funding accessibility satisfaction
 Reduced cost

Web application Value Chain( Gaps/Constraints)

INPUT ACTIVITIES OUTPUT outcome IMPACT

It infrastructure Web based system Just in time care Improved quality Impact of syst
equipment & development of information status of targe
network population

Man power Training and Better Enhanced Improved syst

service provider education professional efficiency related qualit
communication data or
information
Skills and Data Delivery
Enlarged Customer
knowledge System
catchment area satisfaction

Improved Provider
funding
accessibility satisfaction

Reduced cost

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Value analysis of ‘AS-IS’ and ‘TO-BE’
Understanding the old system and the new system

Activity Comparison between of AS IS and To Be

INPUT
Data Delivery System
AS IS TO BE

Teachers and Students

INPUT
School Registrar system
AS IS TO BE

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Student grade report

ACTIVITIES
Student and Partner
AS IS TO BE

OUTPUT
Student examination system

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OUTPUT
Data Recording ( Grade, Register, post information, course schedule ….etc)
AS IS TO BE

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51 | P a g e
 4.2. Identified Technologies
TECHNOLOGY Sub sectors TECHNOLOGY TYPES
SECTORS
 Online farm management system
1. Agriculture 1.1 crop
production  Online fruit shop management system

TECHNOLOGY Sub sectors TECHNOLOGY TYPES

SECTORS
 online shoes shop management system
2. Manufacturing 1.1 textile and  online jewelry store
garment  Online boutique shop management system
 Online cloth shop management system
Building  Online ceramic product management system
construction
materials
Agro -processing  Online bakery shop system
 online cake shop system
 online furniture shop management system
 Online food ordering system

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TECHNOLOGY Sub sectors TECHNOLOGY TYPES
SECTORS
 Web- based learning system
 Online Student monitoring system

3. EDUCATION  Online Library management system

and 1.1  Online voting system
TRAINING EDUCATIONAL
SECTORS SECTORS  Online Student result system
 Online Student information system
 Online Student supervision system
 Job Portal System
 Online Student record management system
 Online student marks parent SMS alerting system
 Online exam hall invigilation
 online school fees billing system
 Online computer science dictionary
 Online student assignment and exam portal
 Online distance education management system
 online school management system
 Online student admission System
 online registration management system
 online kids management system
 online student admission system
 online student result portal
 online SME portal
 online automatic question paper generator
 online quiz management system
 online examination system
 Design and develop college website

 Online Bus reservation system

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 4.Road  Online Gas booking system
Transport Transportation
 Online Airline reservation system

 Online transit pass automation

 Online transport records management system

 Online traffic accident record management system

 Cargo management system

 Online car-rental system

 Road traffic offense system

TECHNOLOGY Sub sectors TECHNOLOGY TYPES

SECTORS
 Online blood bank management system

4. Health Health  Online laboratory management system

SECTOR
 Online medicine delivery system

 online nursery store

 online doctor finder

 Online hospital management system

 Online clinical management system

 online pharmacy management system

 online health insurance management system

 online diagnostic center management system

 online pathology lab management system

TECHNOLOGY Sub sectors TECHNOLOGY TYPES

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SECTORS
 Online house rental web portal
5. TRADE Trade  Online real estate management system
SECTOR
 Online transit pass automation
 Online credit card fraud detection
 Online asset management system
 Online daily expense tracking system
 Online billing system
 Online hostel booking system
 Online invoice management system
 online banking system
 Online inventory management system
 online payroll management system
 order management system
 event hall booking system
 online computer sales and service system
 online retail store management system
 online share trading system
 online super market management system

TECHNOLOGY Sub sectors TECHNOLOGY TYPES

SECTORS

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  Online Human insurance Administration
6. labor affairs social service  Online matrimonial system
and social
 Online Compliant management system
service
 Online Criminal record management system
 Online system for kebele management system
 online identify card management system
 online public speaker portal

TECHNOLOGY Sub sectors TECHNOLOGY TYPES

SECTORS

sport  online football game result management system

7. Culture , Culture  Online Cinema booking system
sport and  online music management system
tourism tourism  online tourism management system

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 VALUE CHAIN ANALYSIS
N VALUE CHAIN CONSTRAINTS/ GAPS INTERVENTIONS
o
1 Planning  IT infrastructure equipment  You have to prepare absolute
and network device material for the database and
(Material requirement networks purposes
identification )
2 Skills and  Data analysis  take correct / valid data or
knowledge for  prototype information for system
system  Design requirement  create a sensible user interface for
 system requirement customer
 coding  interface easily understand by clients
 implementation
 testing

3  Respondent  Just in time care  Respondent can answer the question

at a minute or by second time
interval
 System can generate report in a
minute or a second time interval
4  Material  Improved accessibility gap  Improved accessibility
accessibility  Replacement or reuse of materials
 Easy to maintain
5  System actors  Impact of system status of  Security purpose
target population  Multiple users can do in a single
 Redundancy of data flow main system
 Backup data or information
 Recovery of data or information

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 Identified Technologies

Sub chain activity Techno ware (18) Human ware (19) Info ware (19) Orga ware (6)

Computer
Network Information Usb flash ,hard
IT infrastructure Processing unit
equipment device(hub ,switch, bridge, communication technology disk
Report testing unit
router and so on) specialized person or Manual of data
and network escalate 
Network tool kit output
Maintenance tool kit
Printer

Web based system Device Address & Port Press in hands Xampp server User input
development identification Face identification Wamp server  Upload files
Joomla
/Dreamweaver

Skills and Keyboard keys and Use correct combination Manual of Processing unit
knowledge operation of Keyboard keys Keyboard keys Packaging unit
Operation part Use correct area to Manual of system
Development tools setup operate a system

Training and Computer hardware Database administrator Manual of Configuration of a

education components and peripheral Network administrator Training and device
device System analyst education
System design
Web administrator

Machine automatically on
Device operation Human can operate the Manual of
or off state system Configuration of a
system in manual Devices operations

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device

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Chapter Five
5.Summary of findings, Conclusions and Recommendation

5.1.RESULTS AND DISCUSSION:

The main outcome of this study is the establishment of a holistic and integrated framework to be adopted in
developing a continuous and cumulative students’ assessment system. The framework is intended to help
providing complete and cumulative information about the students’ performance on continuous basis. Hence,
contribute in enhancing the outcome of education at different levels of the value chain. Since it focuses on
students, the framework would contribute to enhance the student-centered approach for teaching and learning.
Thanks to the interdisciplinary perspective adopted in this study which enabled us to merges between
education and corporate strategic theories and concepts and in developing such comprehensive and integrated
framework. The methodology adopted in this study, we can claim is unique in that it helped in defining a
problem from a real situation rather than from a hypothetical set up. The framework focuses on the
simultaneous consideration of theories and concept form different disciplines and fields of knowledge in an
attempt to provide a practical and simple solution which would not require gathering additional data or
information. Most of the basic information required to build up the framework is, to a greater extent, available
to the most of the education institutions. What is needed is a systematic analysis to the situation and put it into
context of the surrounding environments.

All education institutions have a process for knowledge transfer (education in a wide interpretation). More
interesting from a value chain perspective are the outputs of the processes, the results of educational
organizations. We could define a cross-impact and dependencies of education levels with stakeholders’ need,
education assessment systems and IT playing a central role in assessment and communication of outputs and
outcomes. Ultimately, allow to observe how national strategic objectives are achieved. We can aggregate the
data for each level and reconstruct a value chain for the education system in order to better understand the
interdependencies between intangible assets of the whole sector as well as the relations between different
levels of education.

Figure (4) suggests how a formal complete and integrated description of the education value chain and
education assessment systems could be established. It cannot be assumed that all players in the value chain
have a shared understanding, who their actual customer is, and what the customers’ primary demands might
look like. The impact of the surrounding environment on the design of students` assessment system is
considered by putting the framework into context as shown in Figure (5).

The framework would provide teachers with data from formative assessments to identify learning problems
and intervene in real time to optimize outcomes. IT also provides cost-effective tools to help increase
collaboration, and build community trust through transparent communications.

Schools are complex systems. The incorporation of technology in the framework would facilitate
sustainable progress. This means approaching technology deployment not as a device initiative, but
as an education initiative. It means focusing on student learning and making changes across the
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educational system. We start by asking: What learning outcomes are we after? And then: Where and
how can technology help us make that happen, especially in ways that it never could before, by
facilitating new interactions and new supports. Educational technology initiatives also bring risks.
Achieving the promise of technology requires more than simply deploying devices. If initiatives
focus too much on technology and not enough on compelling usages that improve learning and
teaching, the results will be disappointing.

5.2 Conclusions
The research Project addressed by this study focused on the equipment’ assessment issue. Although
the assessment of equipment ‘learning should form part the curriculum of school programs, many
educational institutions do not make student assessment part of their teaching and learning routines.
They pay attention to student assessment only when preparing for accreditation. It is only logical that
we start the process of measuring these outcomes and be able to electronically track and accumulate
our students learning process from their start. The field of education administration, as well, lacks
comprehensive models and frameworks that perceive students assessment as a chain of continuous
processes and part of the curriculum. Recognizing the importance of the problem identified and the
lack in comprehensive models or framework to tackle it, this study is devoted to construct a holistic
and integrated framework for providing a model for continuous and cumulative assessment of
student learning. An interdisciplinary approach was adopted by borrowing theories and concepts
from corporate strategic field of knowledge merged with those existing in the field of educational
and information technology. The study adopted value chain and stakeholders’ analysis and
expectations perspectives and the concepts of key success factors (KSFs) and key performance
indicators (KPIs). Information technology (IT) is added and considered as enabling factors. The
value chain perspective sees the educational system that accompanies students from early childhood
to a job as continuous and interrelated, students centered, inputs, processes and outputs. Students are
the ‘object’ on which the system is working. They are inputs and outputs of the system. The output
of the first level (primary schools) becomes the input for the second level (secondary schools).
Graduates from secondary level become input for the learning processes of the tertiary level and so
on. The value chains perspective also applicable for students moving between grades within the
same education level.

The holistic and integrated framework for developing and designing students` continuous and
cumulative assessment system is based on eight pillars or stages. The road map for designing the
system starts with identification of the main stakeholders and their expectations at the different
education levels (i.e. value chain). Next, determine the desired learning outcomes in terms of
knowledge and skills or, in other words, the learning drivers {i.e. key success factors (KSFs)}. Then,
selection of the assessment approach (i.e. strategies), methods, tools, performance indicators,
standards and criteria (KPIs). An appropriate computerized system should be deployed to ensure
adequate, complete and timely records. Actual performance will be compared against standards or
criteria in a continuous and cumulative basis to determine variances or deviations. Hence, provide
relevant and timely information to enhance education system in terms of efficiency, effectiveness
and quality.

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5.3 Recommendations
Encourage the Schools and Colleges use modern educational system and easy work
The concerned body should provide training for College with working area. How to Login and
Accessing information /data

Based on the results and outcomes of this study, the following conclusion could be reached:

- First, from a methodological point of view, it could be argued that the way in which the research
problem been defined and tackled support the advocators of the interdisciplinary approach in
research.

- Second, adopting the same reasoning followed in this study, local, national and global education
value chain could be developed depending on the nature of the education institution, its collaboration
and cooperation with other institutions and its surrounding environment.

- Third, from a practical and policy maker’s point of view, the resulted outcomes (i.e. the
framework) would enhance the students` assessment system. Ultimately, improve the performance
of the overall education systems at the different levels and in the various education institutions.
However, the following main benefits of the framework could be named

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