The Ministry of Digital Transformation: what will it do and how will it affect your business?

At the beginning of September 2019, the executive power of Ukraine underwent serious structural changes: a new state authority was established.

Its task is to digitize all services provided by the state, as well as to expand the access of the population to high-speed Internet.

Mikhailo Fedorov, an IT entrepreneur, was appointed as the head of the new agency, which is popularly called the “Ministry of IT”.

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What are the functions of the Ministry of IT?

Main objective: Introduction of e-governance - organization of governance by application of electronic means in the interaction between state authorities.

The implementation of such an initiative will ensure the transfer of a number of documents into the digital-segment - from a driver’s license to a passport of a citizen of Ukraine.

What are the benefits? To say the least, this will create a common digital document management system, which can greatly facilitate the life and business of an average Ukrainian citizen.

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What is the Ministry of IT working on today?

Development of the electronic service “State and Me”. According to the founders of this project, it should become the only centralized structure within which individuals and legal entities may access a number of public services, and have the unified standards of service provision.

The Ministry also plans to provide consulting services for small and medium-sized businesses. To achieve this, a relevant agreement has already been signed with Visa, Inc.

Benefits: Creation of a Unified E-Cabinet, which should eliminate the “fragmentation” between all points of access to current public services (e-cabinets for drivers, taxpayers, etc.).

SmartID and a mobile app. This will allow to login in a single e-Cabinet using an electronic signature, which will be stored in the cloud storage.

Benefits: This method of storage has a higher level of security than the one existing today.

Abolishment of paper certificates. The streamlining of the large number of existing electronic registers into a single system is a topical issue today.

The relevant draft law has already been adopted as a basis, and its further implementation in practice, i.e. the creation of an interface for interaction between state registrars, is the responsibility of the Ministry of Digital Transformation.

Benefits: This will help to get rid of a number of unnecessary paper certificates. You will be able to check the presence or absence of any certificate in the unified register.

Automation of the Administration Service Centers (ASCs). Switching to a special cloud service called the Hive (Ulej) will help to significantly enhance the coordination between the ASCs.

Benefits: In theory, this will benefit end users - physical and legal entities, because such a step will reduce the time spent in queues, speed up the document’s processing, etc.

E-residency like in Estonia. This Baltic country was the first in the world to allow non-residents to start their business in Estonia without having to be physically present in the country.

Ukraine and Estonia signed a Memorandum of cooperation in the field of digital transformation, which provides our country with an excellent opportunity to learn from Estonia’s successes.

Benefits: If Ukraine successfully adopts this experience, it will introduce the current system of starting a business for foreigners, who won’t need to stay in the country.

Electronic Population Census and Elections. Today the issue of the veracity of the information about the number of population has become very acute in Ukraine.

The last census of population was held in 2001. The census planned for the next year shall be approached in a new way, so it was decided to make this process electronic.

Benefits: This will eliminate statistical errors, and will allow to forecast more correctly future socio-economic indicators, optimize the process of the state budget planning, etc.

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The Ministry of IT promises to implement the abovementioned projects within 3-5 years. How it will really be and whether the desired results will be achieved, we’ll have to wait and see.

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Publication date: 03/12/2019

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