First steps towards interoperability in the public sector of El Salvador

It is well known, by now, that two pillars of any digital transformation venture in the public sector are electronic identification and interoperability. These can be implemented regardless of the level of digital maturity of a country’s government. But in practice, they serve no less as the starting point and prerequisites for any further advancement in this field.

El Salvador, in Central America, is a perfect example of that. The public administration of the country faces numerous challenges, from data collection to data quality and exchange. But a small team led by Eric Ramírez within the Secretariat of Innovation at the government of El Salvador has identified in X-Road a suitable tool to pilot secure data exchange over the Internet

Speaking to him, we found out how their platform Tenoli can help the state provide services more efficiently – with two practical examples in population management and ease of doing business.

Background and institutional framework

El Salvador’s first steps towards a more digital public sector started in 2016 when the government formed a dedicated unit – the Dirección de Gobierno Electrónico. In 2019, then, the new administration created an Innovation Secretariat which kept the existing e-government unit, and created additional teams to support the modernization of government.

Naturally, such a move indicated a clear intention to look into best practices worldwide and options to trigger digitalization in the country’s administration. “The timing was right as, between 2015 and 2016, the source code of X-Road had been published under MIT free software license. That was the chance to customize the technology and start implementing it in El Salvador – although, with NIIS not existing yet, this proved more complicated than it currently is today”, Ramírez says.

In the meantime, the national legal framework was adapting to facilitate the take-up of the technology. The Law on Administrative Procedures (2018) set out principles for a once-only approach to data collection. Then, the Electronic Signature Act (2016) formalized the validity and usage of electronic signatures in the country. More recently, relevant official regulation (2019) established requisites, rules, and proceedings in the matters of data exchange between government agencies.

Needs and challenges

From an institutional perspective, El Salvador has been gearing up for a push towards increased digitalization in the public sector. But the challenges to tackle have been, and still are, many. It is one of those cases where it is hard to pinpoint specific needs to address, because targets pertain to the modernization of public administration practices as a whole, cross-agency.

“First of all, human resources to drive such transformation are quite limited at the moment. Government agencies need to allocate resources to support modernization efforts. At the same time, the necessary cultural change to shift from using paper, or to replace costly point-to-point leased lines, also has to be widespread,” Ramírez warns. Many data exchanges between government information systems are currently happening over private leased channels. “But indeed, there are already more cost-effective solutions available,” he highlights.

Consequently, it becomes more complicated to turn a high-level vision on digitalization into practice. Not because this hasn’t been set out – El Salvador has an ambitious Digital Agenda, in compliance with the Sustainable Development Goals of the United Nations. However, plans of digitalization also clash with other pressing needs such as building the necessary infrastructure to foster the general take-up of digital solutions.

The solution

To mark the first steps towards increased use of digital technologies in the public administration, El Salvador opted for putting in place a functioning data exchange layer. Using the free and open-source X-Road as a building block, the government of El Salvador has come to create Tenoli. Meaning ‘bridge’ in the local Nahuatl language, Tenoli is a platform – live since January 2017 – enabling public sector agencies to exchange information over the Internet.

Interest in the X-Road technology manifested basically as soon as the Dirección de Gobierno Electrónico was created. In 2017, one year later, data was already being exchanged through the layer between selected public agencies. “Beyond the possibility to adopt a more cost-effective solution, the business value we see lies in the way information exchange is standardized and secured. By now, we have managed to pilot and consistently run services in population management and business registration,” Ramírez explains.

So far, the most significant landmark has been indeed the birth registration service. This is particularly salient in a country where an average of 300 babies are born per day. Still, none of them institutionally exists until parents decide to carry out the paperwork for official registration at a municipal office. Or, much later in life, until a national ID card is given by the time these new-borns are old enough to vote.

“Connecting information systems between the Ministry of Health and the Population Registry was a no-brainer at that point. So, we searched for options that would allow us to do things as a private company would, while adopting a tech solution that would also be appropriately secured,” Ramírez says. Since 2017, when a baby is born, data from hospitals reaches the Population Registry digitally. Besides, the National Statistical Office makes use of this information too, for purposes of population census. In this way, such data gives public agencies the possibility to cross-check with municipalities information about newly recorded births.

Furthermore, data is also exchanged between the Ministry of Economics and a consortium of public partners to provide a tax ID to registered businesses-to-be. With that respect, the monthly average in the past year has been of 619 registrations. But at the moment, apart from the relevant portal “MiEmpresa.gob.sv”, no other services are being provided to citizens in the one-stop-shop fashion that the X-Road technology can favour. The room for improvement, though, with a widespread change of heart in institutional culture, can be massive.

“Some still use private leased lines to exchange data, but our work is also to make more and more public agencies understand that Tenoli is cheaper, secure, and most of all, scalable. However, to increase the outreach of the platform, a core value change is necessary. Because the solutions, tech-wise, are not complex or difficult to implement. What makes them work, also in our case, is cooperation, trust in institutions and the public administration. Where that fails, further advancements are just not possible,” Ramírez concludes.

PlanetCross brings secure data exchange to the Japanese energy sector

Readers and X-Road® technology enthusiasts around the globe may have spotted a pattern by now – use cases of the data exchange layer prominently feature applications in the public sector. This is true to a certain extent, as X-Road is notably the backbone of Estonia’s digital public services. But private sector companies are increasingly considering taking up the technology, even far beyond the borders of Estonia.

In Japan, X-Road is now enabling efficient information exchange of clients’ data in the energy sector. National energy operator Nippon Gas Co., LTD (hereinafter Nichigas), partnering with tech startup Planetway, is using a proprietary product based on the X-Road data exchange layer to bridge back-office IT gaps between its subsidiary companies. Improving processing time of clients’ inquiries, Nichigas is already a case study of result-based applications of X-Road for the Japanese private sector.

Raul Allikivi, Chief Relations Officer at Planetway, and Yuki Matsuda, Executive Officer for the IT Department at Nichigas, introduce us to this shining example of how the technology can dramatically benefit operational efficiencyin private sector organizations everywhere.

Background and institutional framework

A series of reforms throughout the past five years has changed the configuration of the Japanese energy market. Since 2016, the progressive liberalization has given companies the possibility to change their organizational setting, and the way energy is distributed to customers nationwide. “For what concerns electricity, in that same year, the three largest companies on the market divided their operations respectively among three subsidiary branches – for power generationoperating the network, and retail. Then, in 2017, market liberalization affected the gas industry too. That is what allowed us to start selling city gas from then, and electricity as a retailer from 2018,” Yuki Matsuda explains.

Such changes are key to understanding what triggered the need for interoperability in the eyes of Nichigas’ executives. The company is currently the largest LPG (Liquefied petroleum gas) retailer in Japan, as well as the 3rd main LNG (Liquefied natural gas) retailer and pipeline operator in the Greater Tokyo area. The Nichigas group gathers a total of five companies between the mother branch and its subsidiary agencies. As one of the top actors in the Japanese energy market, it needs to take care of a vast customer base, counting over 1.5 million people.

Needs and challenges

Just to give an intuitive account of what having so many users entails, imagine one company serving a market larger than the whole population of Estonia (yes, children and elderly citizens included). “With information on users spread across five subsidiary companies, it is clear that this was meant to mess up the efficiency of our customer care. Upon receiving a call, the only piece of information our operators know is the name of the caller. But to provide correct, helpful responses, naturally they need to know much more,” Matsuda says.

That is when the cooperation between Nichigas and tech startup Planetway started. The needs were clear but, on the other hand, the solution was too. After the first contact in spring 2018, Planetway got to the drawing board. And in just one year, the company developed a secure data access platform based on the X-Road technology – PlanetCross.

“Traditionally, we are used to think of X-Road as a tool that predominantly benefits governments. However, in larger countries where digitalization is not so fast to pick up in the public sector, companies can take the lead. But this can happen only if top executives are deeply committed to digital transformation, see its business value, and have the human capital necessary to make the change,” Raul Allikivi explains.

From the match between the clear intents of Nichigas and the expertise provided by Planetway, the Japanese company could reap the benefits of the proprietary product based on X-Road created by the latter. The platform, tailoring the functionalities of the X-Road technology on the needs of the private sector at large, is currently active as a service for Nichigas’ operations. But the possibilities to further increase the pool of firms it serves are plenty. 

The solution

PlanetCross is an award-winning, highly secure data access platform. Drawing from almost 20 years of Estonian experience with X-Road, it incorporates all core features of the pioneering solution to establish bridges between relational databasesensuring availability and traceability of the information exchanged.

Source: Planetway

The platform is the backbone supporting call centre operations between Nichigas and its other four subsidiary companies. Currently, PlanetCross enables the Japanese energy group to handle around 1.5 million transactions each month through the company’s software Nichigas Search. And beyond capacity-building, the efficiency gains in average handling time of the requests received are also evident. From the initial 6 minutes per call, operators have now reduced it by 45 seconds.

“Planetway’s product and support empowered our effort to make our call centre operations more sophisticated,timely, and of higher quality. As liberalization of the energy sector increases in Japan, digital transformation can unlock opportunities also in the LPG market. In practice, PlanetCross can help reduce operational costs of switching from an energy company to another for customers – and not just due to the way data is handled, but also thanks to a change in the overall approach to relevant business processes. Ultimately, the platform gives an interesting IT character to our activities, and paves the way for further developments in this direction,” Yuki Matsuda says.

The vision for PlanetCross, indeed, stretches beyond the partnership with Nichigas for Planetway too. “In Japan, there are many players with vested interests in the IT field. But in that context, Nichigas is a great example of a relatively medium-sized company where the leadership has a strong vision, and capable people within the company can follow suit effectively. Other companies too, are considering the uptake of this solution to achieve higher efficiency in their operations, unsurprisingly. Scalability is certainly not a problem,” Raul Allikivi explains.

“We believe that, in the near future, private companies could become the main users of X-Road-based technologies. And as our CEO Noriaki Hirao said in a recent interview as well, we have already reached a point where corporations hold much more private data on individuals than governments do. But people should be able to still be the owner of their personal information. X-Road and PlanetCross provide a pretty good blueprint to understanding how this can actually take place. In the future, we hope these technologies and standards can become everyone’s first choice when sensitive private data is involved in environments that need efficient information exchange,” Allikivi concludes.