Strategy Formulation


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What are smart cards and how can they be used by local authorities?

Smart cards are essentially a development of the credit card. They are the same size and shape, and made out of plastic. The differences are that smart cards have a computer chip imbedded in them instead of a magnetic stripe, and are able to hold much more information, and are more durable and less easy to tamper with and some are programmable and able to process information. Further details are provided in Section 3 of WP9-02 a market research report describing the current state of smart card use by local authorities in England. The section goes on to describe the functions of smart cards and how they can be used in local authorities.

WP2-01 - "Business Case including social, political and commercial considerations" - in Section 3 describes the background to smart card use, some multi -application schemes and provides an excellent grounding on the case for smart cards in local authorities.

WP3-01 - "Considerations for Multi Application Multi Sector Smart Cards" provides guidance to local authorities as they contemplate setting-up card schemes and is starting point for new entrants to this area as it sets out the policy management issues that need to be considered for both large and small schemes.

In a similar vein, WP3-10 provides a routemap taking into account a range of benefits, drivers, barriers etc.

In broad terms what are the potential costs and benefits of smart card schemes for local authorities?

WP2-01 - "Business Case including social, political and commercial considerations" - in Section 3 describes the background to smart card use, some multi -application schemes and provides a grounding on the case for smart cards in local authorities.

WP7-01b - "Strategic LA Smart Card Architecture" describes benefits to be gained from smart card schemes in Section 3 and goes on to describe how benefits are achieved in Section 4.

WP2-04 - "Financial Report on Implementation set up costs" goes into substantial detail on set up costs for schemes as a whole and for specific service/application areas.

WP9-02 - A market research report describes potential benefits in various local authority application areas in Section 3 and costs in Section 5.

Can we replace existing cards with smart cards and is there an associated cost saving?

Cards of various types are currently issued by local authorities covering applications ranging from library lending to employee identification. Most if not all of them could, potentially, be replaced by a single smart card with associated cost savings that could at least substantially offset the costs of smart cards if not entirely cost justify them. There are associated benefits to citizens to be taken into account including the convenience of carrying one card rather than several and the ability to pay for the services from the card’s e-purse.

WP2-01 - "Business Case including social, political and commercial considerations" - in Section 6 covers "rationalising the existing provision of cards"

WP9-02 - A market research report suggests that an analysis of existing cards should be one of the first steps when developing smart card strategy.

Can smart cards have an impact on social inclusion?

Improved access to services and social inclusion is one of the most important benefits to be gained from the use of smart cards in local authorities. WP3-04 - "Accessibility and Social Inclusion" deals with the subject in depth. As the report says "The Disability Discrimination Act requires local authorities to give consideration to needs of people with disabilities but there is a wider agenda of people with special needs. This includes older people, children, people whose primary language is not English, as well as people with disabilities. However the introduction of smart card systems offers exciting possibilities for making life easier for all these groups, and those who are presently socially excluded, if their needs are considered before new systems are introduced.

WP7-01b - "Strategic LA Smart Card Architecture" describes in Section 3 benefits to be obtained from smart card use, including many that relate to access and social inclusion.

WP8-02 - "Card Governance" covers the legal aspects of access in Section 5

Should we start with more than one smart card application and if so how many and which ones?

Many factors need to be taken into account when considering which and how many applications should be considered as part of the initial smart card project. If the project is too limited it may fail to demonstrate benefits and ultimately fail to achieve a critical mass of benefit. If the project is too ambitious it may prove to be too complex to be managed by limited resources and expertise. Much will depend on local conditions. The ability and willingness of service departments to participate in smart schemes will be very important. Local conditions in terms of social deprivation will be important - perhaps the greater the deprivation the greater the potential social inclusion benefits. There are also economies of scale to be achieved - see the "Smart question" on that subject below.

WP2-01 - "Business Case including social, political and commercial considerations" provides a list of possible applications in Section 5 and discusses applications issues throughout the report in terms of making the business case. The other reports in the Business Case section of the National Smart Card project WP2-03 report, WP2-03 spreadsheet and WP2-04 all consider applications from a financial point of view.

The WP5 reports, which are concerned with links to central government and other national initiatives, are a series of evaluations of local authority applications being undertaken in conjunction with the DfES’ Connexions Card.

The WP10 (Dissemination) reports are a series of case studies covering a wide variety of local authority applications and private sector commercial applications on local authority smart cards.

WP6-01 - "Commercial Applications" - says "The overall conclusion reached by this section of the National Smart Card Project (NSCP) was that there is a definite benefit to all parties by including carefully selected and implemented commercial applications on a Local Authority issued Smart Cards. The selection of applications will depend critically on the strategic choice relating to the card technology chosen initially, and the development trajectory envisaged. WP6-02 reports on progress in several pilot commercial applications.

Documents prepared as part of the National Smart Card Project Starter Pack cover a range of applications in detail. See ...

 

Can smart cards be used in more than one local authority or even region and for more than one application?

Smart card interoperability is the cornerstone of improved citizen service delivery. Cards need to work across geographical and organisational boundaries to maximise the benefit to the citizen. Interoperability requires both technical and business interoperability. The former can be derived from using common technical standards and specifications but the latter requires the development and implementation of common business rules and policies. WP3-02 - "Interoperability within the local authority sector" deals with this subject in detail.

WP7-05 - "E-purse Cross Regional E-Payments" describes interoperability in terms of the needs for making payment across different regions. It says "Interoperability is defined as the ability of a complex card based payment product to provide the required functionality in any number of acquiring infrastructures despite the technological differences inherent in different systems. A useful analogy is the road network where there is a consistent and clearly understood set of rules of the road but a wide variety of vehicles that use it."

WP8-02 - "Card Governance" describes interoperability within the context of the complex area of card governance in Section 8. It deals in detail with legal/contractual issues.


Are there ways of obtaining economies of scale in smart card schemes?

Economy of scale is a key factor in local authority smart card schemes. Substantial items of capital and operating cost can cover multiple applications and multiple geographic areas. An obvious example is the card itself. A single card can carry multiple applications and therefore the physical card cost per application reduces as the number of applications on the card increases. Other examples are major capital items such as card printers and management systems which can be shared by applications with local authorities and between groups of local authorities. The process of authentication can apply to several applications/authorities etc. As the number of applications on a card increases and as the number of organisations in a card scheme increases, scheme management and operational complexity increases and the cost of managing these complexities can offset some if not all of the economies of scale. Optimising economies of scale therefore requires careful planning and research.

Are there local authority smart card partnerships and if so should we consider joining one, and if so how do we contact them?

Many local authority partnerships have been formed to address the challenges of e-Government and many of these are involved in smart card schemes. In fact the majority of local authorities in England involved in smart card schemes are doing so through partnerships. Only a minority is going it alone. One of the main reasons for partnership on smart cards is that to deliver real benefits to citizens, smart cards often need to relate to services that cross regional boundaries. Transport schemes are a good example of this. Another major reason is the availability of substantial economies of scale - see the question relating to this topic.