Added value

Innovative e-public systems and applications from Hungary!

In the past decades the Hungarian companies gathered invaluable experiences in developing useful public IT-solutions. Their technology and knowledge could help other countries to set up and enhance their digital infrastructure.

In the wake of the system change in 1990 Hungary commenced a massive reorganization of state and public administration operation. In the past 15 years the outdated and inefficient paper-based systems have been replaced by easy-to-use digital services. As a result of this reorganization, the country became a digitally controlled state and is ready to provide innovative e-services to its citizens.

“Digitalization and back-office restructuring was a big step forward in efficiency, effectiveness and service quality.

But it was only the first step; in the past years Hungary has set up a whole line of new systems and applications which, like the online cash register system, the electronic road toll system, the mobile parking system or the census data collection system can provide further benefits to the state and its citizens,” Albert Bíró, the vice-president of the National Council for Telecommunications and Informatics (NHIT) told the Perspective Magazine.

“Just like our smart city solutions, the recently introduced Budapest public bike sharing scheme (BUBI) or the new passenger information and control system (FUTÁR) implemented by the Centre for Budapest Transport (BKK).”

We have built a vast array of information and communication technology (ICT) systems, solutions and applications and gathered valuable insight and best practices during the process. Thanks to that effort, the Hungarian state has quite a few ICT developments, which could be useful for other countries too.

“We think it’s important to introduce these sophisticated public IT solutions worldwide, so we decided to join forces with the ICT Association of Hungary (IVSZ) and issue a publication called ‘Innovation in public administration – an operating e-state’ which contains comprehensive case studies of the most advanced systems, software and hardware applications of the Hungarian public sector,” said Albert Bíró. “Most of these solutions have been developed and manufactured by Hungarian companies and with proper customization could be easily implemented in other counties. Especially in the former states of the ‘East Block’, which have to go through similar reorganization as we have, the developing countries, or the Gulf Cooperation Council (GCC) countries which are very open to the innovative solutions we can provide.”

RELIABLE SYSTEMS AND HIGH-QUALITY SERVICES

The Hungarian companies have a remarkable track record in developing state-of-the-art IT-systems. “The Wigner Data Center for example is one of the most advanced information systems in the world with the largest dedicated data transfer capacity in Europe. It plays a key role in the research conducted at the European Organization for Nuclear Research (CERN) by safely storing, reprocessing and distributing the data derived from the Large Hadron Collider (LHC),” said Albert Bíró.

The vice-president of NHIT believes that the advanced systems and solutions, which were introduced in the Hungarian public sector in the past 10-15 years, could be easily exported to other markets. The vast majority of these projects were financed by the European Union (EU) and therefore they are in compliance with the rigorous regulatory requirements. “They provide reliable solutions and high-quality services; I think it’s safe to say that if we could comply with the quality expectations of the EU, we can meet the demands of other countries as well,” he emphasized. His opinion is shared by the government – that’s one of the reasons why the Hungarian Ministry of Foreign Affairs and Trade decided that, in cooperation with public sector companies it will establish trading houses in many foreign regions including Asia and Russia.

A WIN-WIN SITUATION

It’s easy to see how the Hungarian companies would benefit from the introduction of their solutions on the global market – especially SMIs which usually don’t have the resources necessary to promote their products abroad. “There are many countries in the developing world which have grooving population and dynamically advancing economy but lack the support structures to fully capitalize their potential, ” said Albert Bíró. “Since we had to build our IT-infrastructure ‘from scratch’, we have the know-how, the technology and most importantly the appropriate experiences to help them create and advance their own digital systems. This is a win-win situation.”

But the Hungarian state can also benefit from these advanced IT solutions. “The new cash register system for example helps making the economy more transparent and increasing the state budget income. No wonder that since its introduction in 2014 the VAT revenue has significantly increased in the retail sector,” underlined Albert Bíró.”The trading houses generate considerable revenue and there are good opportunities in monetizing the state-owned and state-run infrastructure as well. We have high-performance telecommunications systems, like the 6600 kilometers long optical fiber backbone operated by the MVM Net Telecommunications Service Provider Ltd. This is a nationwide high-speed broadband network which could serve as a fast and reliable ‘information pipeline’ for any multinational company or service provider wants to reach Eastern-Europe, Asia or the Balkans.”