OECD Peer Review of E-Government in Denmark - ePractice.eu

embrace and deliver e-government, some KMD systems are undeniably innovative. The best example
of this is the e-Boks system, which has been widely acclaimed and is heavily used.
Box 6.4 e-Boks
e-Boks is a free electronic “mail box” service developed by KMD that allows Danes to electronically receive and
save communications with both government and businesses. Almost all municipalities and many businesses are
registered to use e-Boks as “senders”. e-Boks users can choose from whom they want to receive electronic
communications, which are then securely filed in the e-Boks system. People can also store important electronic
documents or objects, such as birth or marriage certificates, in their mail boxes. e-Boks is tied to the Danish CPR
number, meaning that documents can be saved indefinitely regardless of changes in users’ names, addresses
(including e-mail address) and other contact information. The use of the CPR number by the e-Boks system is
tightly regulated, and notification is always sent to the mailbox owner when the e-Boks has been used. It is
possible to log on to e-Boks using either a digital signature or a pin code. Users can also log on via their online
banking service.
Source: www.kmd.dk.
Following discussion of the relationship between e-government and the Structural Reform, one of
the issues most frequently raised in interviews for this review was the role of KMD in the municipal
ICT market and the impact this has on e-government. A wide range of often contradictory and
polarized views was expressed, including:
• KMD uses its position of market dominance to lock municipalities in to using outdated,
expensive, and non-interoperable (in terms of their alignment with the Danish enterprise
architecture) information systems. It is also seen as unresponsive to customer demands, due
to the fact that it faces little or no competition in many areas.
• Municipalities’ heavy reliance on KMD has led them to under-invest in developing the
knowledge and skills necessary for effective and independent participation in e-government.
• The existence of KMD is a vital element of successful implementation of the Structural
Reform, as it will both provide for continuity of municipal operations while mergers take
place, and support changed administrative functions through various “structural reform
packages” that many municipalities will rely upon as the basis of their ICT environment
during and beyond the Reform.
• Widespread reliance on KMD allows for more cost-effective development of municipal ICT
systems and applications, especially due to economies of scale. It also allows for more
consistent levels of front- and back-office service provision across municipalities.
• KMD distorts the structure of the municipal ICT market, which reduces competition, lowers
quality, and inhibits innovation. This situation is said to be contrary to general Danish
competition policy, and also to the Government’s plans to make the ICT industry as
competitive as possible.
The bias of comment was heavily towards the negative, with widespread emphasis on the view
that KMD is a monopolist in most areas of municipal ICT and that it is thus, in a sense, currently the
most significant common framework for municipal e-government. Commentators consistently noted
that the effect KMD has on e-government is complex. They cited the usual downside effects of
monopoly, while also acknowledging benefits, such as the fact that KMD has provided the necessary
ICT capacity to allow for relatively uniform implementation of many different municipal
e-government applications and services. This is seen to have been of particular benefit to the smallest
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