Management and Innovation Models for Digital Identity in Public
Sector
Nunzio Casalino
1
, Marisa Ciarlo
2
, Simone Sassetti
3
and Mattia Panico
4
1
LUISS Business School, Viale Pola 12, 00198 Rome, Italy
2
Invitalia, Via Calabria, 46, 00187 Rome, Italy
3
Sapienza Università di Roma, Via del Castro Laurenziano 9, 00161 Rome, Italy
4
Unfraud, Via Aurelio Saliceti, 10, 00153, Rome, Italy
Keywords: Business Information Systems, Automation, Innovation, Change Management, Identity Management,
Authentication, e-Learning, Security, ICT Adoption, IAM, CIP.
Abstract: This paper is aimed at analysing the international framework, both European and Italian, for the innovative
eID operating models, to identify the guidelines to follow for a correct identification of the operational
requirements, of the solutions and of the services offered by the model DIMIM – Digital Identity Management
and Innovation Model. After the framework’ analysis, we will go through the definition of a new set of
strategic guidelines customised on to the most interesting and relevant sectors identified by the DIMIM. This
step will consist in the highlighting, through to the help of tools such as the SWOT analysis and the priority
matrix, of the main constraints and opportunities emerging in the implementation process of the eID
operational models. The paper at issue is also aimed at identifying a universal, solid and multichannel
authentication system, the “IAM”, which will provide each individual with a set of solid and safe digital
credentials allowing the access to all the available services, promoting the creation of value-added services.
1 INTRODUCTION
The personal identity is defined as “The set of
essential and unique personal characteristics which
allow to identify a single individual”. In Italy, and in
all other European countries, eID is supported by
local Government. The implementation of eID
support systems is related to the need to dematerialize
procedures and documents and to guarantee the
access to eGoverment services, eHealth services and
to all the residual digital services provided by both
public and private authorized entities.
The access to these services is allowed only after
an “indisputable identification”, inasmuch is
necessary for the “user”, not only to be identified, but
also to get an authentication from a third authorized
individual (that could be a third party or the
Government entities themselves).
Nowadays, in Italy, eID is a work-in-progress
(only few services are supplied through eID), while in
other countries, first above all Estonia, eServices are
1
www.mise.gov.it
a reality. While the current Italian system still
requires time to adjust, in the countries already
interested by this revolution, processes and
procedures are set and fixed. The first authentication
procedure is the most delicate and it often involves a
double step authentication and check in governmental
databases. The lack of a framework can lead to
misuse or, even worse, abuse of eServices because of
a poor identification procedure (e.g. one step
authentication).
Italian government recently took over the problem
and through the “Decree 2.0”
1
clarifies that the first
step is the unification of the actual paper-ID card and
the social security number, but the road to the proper
implementation is long and rocky.
The paper focuses on the identification of the most
suitable industries and areas from where start to
disrupt the actual schemes and limits of eID. It does
not only address the Italian situation (despite clear
references to it) but the analysis is supposed to be
useful to any country and administration that find
Casalino, N., Ciarlo, M., Sassetti, S. and Panico, M.
Management and Innovation Models for Digital Identity in Public Sector.
DOI: 10.5220/0006279202250232
In Proceedings of the 19th International Conference on Enterprise Information Systems (ICEIS 2017) - Volume 1, pages 225-232
ISBN: 978-989-758-247-9
Copyright © 2017 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
225
itself in the same condition. Following, some of the
most important areas of intervention from a strict
governmental point of view
2
.
1.1 e-Health
The idea to supply health services (records,
prescription, personal history) is something
governments are trying to reach to have more control
on local infrastructures, to rationalize and better
assign public funds. Estonia is a pioneer in eHealth
services and it represents the best case concerning
digital services and eID. In Estonia, all persons
entitled to the NHS, have a national health record to
which they have access through credential linked to
the eID. Another revolution they introduced regards
the doctor-patient relation, and is called ePrescription
platform. Through this, all communications,
electronic prescriptions and inquiries between them
will take place in a secure channel, accessed through
credentials. Is it clear how much Estonia invested in
these services and how much people believed in these
projects.
1.2 e-Government
EGovernment will make all government services
available online to citizens, without necessarily
appear in person, but using the credentials associated
with eID. In this way, the life of the citizen 2.0, would
be greatly simplified, from any point of view, but
ensure a good level of service in a country such Italy
(90 million people), needs the highest level of effort
from all public actors and citizens, too. Also in this
scenario, Estonia is a successful case that for 10 years
now, has provided eGovernment services to its
citizens. Italy is trying to keep pace with the most
digitalized countries and recently introduces SPID
3
(Digital Identity Public System), but public and
administrative deficiencies slow down to innovation
process.
2 SECURITY AND EID
One of the biggest challenges that Italy must face, is
the issue of system security. It is of primary
importance for the proper spreading of eID as Italians
already have a strong aversion to technology.
EGovernment services are little used while eHealth
2
http://www.sviluppoeconomico.gov.it
3
www.spid.gov.it
services are not yet fully available (but is a matter of
big interest).
Given the lack of confidence that Italians have
towards the digital, it is necessary to provide a lot of
information and data about the technologies that are
being introduced. Allowing individuals to really
understand the technology they are going to use, it is
more probable to persuade them and raise the tech
adoption rate. Some of the solutions comprehend
courses, seminars, free meetings with industry
experts, as well as to illustrate, even technically, the
functioning of an eID.
The main point remains security: the Government,
to succeed in the eID diffusion, must inform citizens
about the systems used and the security precautionary
measures taken.
2.1 EID Reference Context and
Innovative Operative Models
The need to provide tools for the reliable
identification of individuals both in the physical and
in the virtual world is more and more crucial to eID
systems: this will ensure an increase of quality life
and better services both from privates and Public
Administrations. All this must be compliant with
privacy regulations, to protect citizens’ privacy and
ensure there are no data leaks. In this sense is useful
to employ two-way authentication techniques,
through a certificate: it is a form of guarantee that the
information sent have not been modified or altered
during the transfer
4
.
The term Identity Management addresses the set of
integrated technology systems and the synergy of
services, products, policies, and processes that allow
both public and private bodies to facilitate - and at the
same time control – users’ accesses and personal data.
An Identity Management (IdM – See Figure 1) is the
convergence of different products, previously
separated, which now create a unique system and
single solution to a long series of issues: they
represent a solid security infrastructure, based on a
strict authentication framework that allows the
adoption of rigorous security policies to control
access and to ensure privacy.
These systems can be exploded into layers, where
each layer provides services to the next level.
4
https://www.globalsign.com/en/
ICEIS 2017 - 19th International Conference on Enterprise Information Systems
226
Figure 1: Identity Management Architecture (IdM).
The more users feel safe in terms of security and
data privacy, the more he will benefit from the
services supplied online by public and private
entities. For this reason, the introduction of an eID
that uniquely identifies the user and allows him to
safely operate in the digital world, will positively
influence the behaviours and help the spread of online
services for citizens.
The diffusion of IdM systems, pushed companies
to encrypt data traveling on the web: this was the
beginning of the companies that have made this type
of activity their core business, the Certification
Authorities: public or private, authorized to issue a
digital certificate through a procedure that follows
international standards and comply with European
(and national) legislation on cyber security. Once
issued, the certificate will be used to encrypt and
decrypt data (asymmetric and public key)
5
.
2.2 Applicability of the Model in Social
Networks
Another interesting area, related to the Model
presented in this paper, is the Strong Authentication
as part of the social network area. It is identified as an
important element to consider, due to the
pervasiveness of the social networks in the life of
almost every citizen. Therefore, this topic must be
consistently covered, to have a clear view of all
possible scenarios to consider while building a
system. The advent of the web, while it has made
noticeable improvements in the daily life of each of
us, it also triggered the development of new
opportunities for fraudsters and criminals: the
extensive use of electronic mail, digital monetary
transactions, and social networks, has resulted in an
increase of the circulation of personal data, making
citizens more and more exposed to the risk of identity
theft, a renown fraudulent scheme where the stolen
ID is afterward exploited for criminal intents.
5
https://www.firma.infocert.it
A long series of surveys have been analysed to
investigate this phenomenon and consider the fact
that the population has different levels of knowledge
and therefore of interaction with internet, that
depends on different variables such as age or
profession. The surveys have been analysed to learn
about the use of ID on the web and computing habits,
with attention to the awareness about issues as data
theft, ID theft, data leaks and dissemination.
The opinion that prevails from the surveys,
especially from young citizens, is that risks associated
with ID theft are low, despite their high frequency and
propensity in disclosing their personal information
online. There is also not enough sensitivity about
Information Security in general: some behaviours are
more common - the installation of antivirus or the use
of different and personalized passwords for different
services or sites - some are less common - as reading
the term and conditions or the incognito navigation.
If it is true that only 12% of internet users claims
to have suffered or be aware of cases of ID theft, it is
also true that it is the lack of knowledge that causes
the shortage of protection systems: in this sense, the
raise of awareness is fundamental and plays an
important role in digital security.
Young people access to the Internet mainly from
the smartphone (63.2%), although even the laptop and
desktop computers remain frequently used tools
(respectively 57.4% and 43.9% of cases). The devices
are generally shared with other family members,
friends, or with the entire household (this is the
typical case of desktop computers, laptops and
notebooks), while they remain of exclusive use in
case of smartphones or gaming consoles. There is also
a clear tendency gender: except for laptops and
tablets, which are used with equal frequency by both
males and females, game consoles, computers and
even smartphones remain mostly used by males.
The activities are numerous and diversified by
purpose and mode of access to the network: over 90%
of users access online to surf the Internet, to access
multimedia content and use social networks, both
from PC and from smartphones; electronic mail is
also frequently used, mostly from desktop computers,
while applications download (77% of cases) is largely
tied to the possession of a tablet or a smartphone.
Only 50% of users download multimedia content
from the Internet, or make purchases through direct
channels and through purchasing groups: in all these
cases always prevails the use of a PC.
Management and Innovation Models for Digital Identity in Public Sector
227
2.3 EID and Blockchain
Blockchain
6
is a technology potentially applicable to
revolutionize and have a huge impact on almost any
sector. The Blockchain intentionally lacks of a
centralized management system, shortening the
intermediaries chain, allowing the sending of data
quickly, safely and at a low cost. It Blockchain
assumes an important role in many sectors but it may
be considered virtually opposed to the concept of the
eID. This because Blockchain is the result of a long
period of deregulation that culminated with the
creation of a system that completely cuts-off any
central system from the equation.
The actors to be identified and certified should be
recognised and labelled as “trusted” by an external
party: what happens with Blockchain is that these
entities correspond. As a Digital Identity implies
citizenship, duties and rights related to the country of
belonging, it naturally follows that the issuer should
be anyone else but the Government.
For this reason, the Innovation Model here
considered, will not further comprehend the
Blockchain in the feasible scenarios considered.
3 MAIN REFERENCE
INDUSTRIES IDENTIFIED
To date, the Digital Signature is used to identify both
the author and the integrity of an electronic document,
while it is still difficult to guarantee the identity of an
individual connected through the network. In fact, if
in daily practices each subject is able to prove its own
identity, this is still an obstacle if the identification
has to be done on-line or without the physical
presence of the individual. From these considerations,
according to the latest EU guidelines transposed at
national level with the constitution of the Italian
Digital Agenda, this document aims to:
Define a universal and robust authentication
system, IAM, that is also multi-channel and
federated with the main operators in the sector, to
assign secure digital credentials to each individual
and allow the access to all available services.
Design a value-added service called CIP that,
according to the cloud computing model, will
provide users with an online personal data
repository, always accessible from anywhere and
anytime. The CIP will fully accomplish to the
6
www.blockchain.com
Digital Identity concept. The CIP will be able to
collect all digital documents from a user
automatically, even from different sources, and
provide value-added services and information.
3.1 Methodology Used to Identify
Priority Sectors
The identification of strategic guidelines has been
realized using a matrix that, for the application fields
of the project, defines the main hypothetic areas to
which the project can be applied.
The matrix used defines for each macro-sector,
industry and business-sector, the potential revenues,
complexities and risks arising from the introduction
of the Digital Identity. International best practices
(e.g. Estonia, New Zealand), as well as specific
studies (e.g. The value of our digital identity, BCG),
have been taken into account to enhance the variables
considered in the study.
The matrix has been built on the basis of a
multitude of variables, able to identify the data to
analyse for the realization of the project. The field
analysis on market areas, identified more than 5
macro-sectors, that cover more than 60% of the total
active enterprises in Italy (>3 million companies). It
is important to take into account that the majority of
the industries not in the target are, for the most part
(about 1.7 million of enterprises), firms in the
agricultural sector, considered of marginal
importance for the project. The 5 macro-sectors have
been subdivided into 22 smaller sectors, that is more
than 80 areas in total. A further segmentation has
been performed, where appropriate, to better specify
the unit reference, as happened with the banking and
telecommunication industries, where big enterprises
have been distinguished by small/medium ones.
Macro-sector: Main reference industries (Public
Administration, Financial Services, TLCs,
Energy, Transportation and other services, IT
industry);
Sector: Main sectors considered for each Macro-
sector, (e.g. in the Financial Services Macro-
sector: Banks, Insurance companies, Financial
institutions, and so on). The majority of sectors
have been considered of interest for the offer
examined;
Areas/Potentially interested Bodies: for each
sector of interest, have been considered the main
bodies and the most interesting companies.
ICEIS 2017 - 19th International Conference on Enterprise Information Systems
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A long series of numerous variables have been used
to develop the matrix.
Qualitative evaluation elements:
Rational business: for each area have been
evaluated the main benefits that the Digital
Identity can bring in the field and/or the reasons
that can push companies/bodies to employ IdPs to
supply their services;
Pricing Model: have been considered different
pricing policies applicable to the context
considered based on the assessment of the
potential profitability of the sector (per user fee,
per-transaction fee, flat fee, initial investment,
free trials and so on);
National / International Experiences: Details of
any similar experience in Italy or in the world
Potential Business Revenues evaluation
elements:
Potential Diffusion (DIFF): it indicates the
diffusion chance of the IdPs in the reference
sector, taking into account the high number of
businesses, the number of potential users, the
amplitude of the reference area and the ease of
spread, based on three values (High = x million
users; Average = x00.000 users; Low = limited
user);
Need for Digital Identity (IdPs): it indicates the
propensity to digital services in the industry and if
is required or requested the adoption of IdPs in the
reference sector, based on three values (High =
The business sector has strong need IdP
mechanisms; Middle = There may be opportunity
for IdP introduction alternatively to other
instruments used (e.g. PIN); Low = little oriented
sector to digital and / or IdPs does not apply to the
reference sector or there can be used other already
established instruments in the area);
Business Profitability (REV): it indicates the
potential profitability of the sector, taking into
account the pricing model applicable, the business
rationale and users’ willingness to pay, based on
three values (High, Medium, Low).
Target Market evaluation elements:
Competitors Presence (COMP): it indicates the
presence of competitors in the sector, based on
three values (High = High concentration of
competitors in the sector; Medium = not
significant presence of competitors in the sector;
Low = Sector with few or no competitors);
Saturated Market (SAT): it indicates whether
the specific sector of the market is already
addressed with reference to the introduction of
IdP tools and / or have already introduced
alternative tools, based on two values (values: 2 =
YES / NO = 1).
Complexity/Risk evaluation elements:
Potential costs of planting and marketing
(COST): it indicates the order of magnitude of the
cost needed for the implementation and / or the
diffusion of IdPs in the sector, both in terms of
product customization and of market distribution,
based on three values (High >= € 500,000; Low
<= € 100 000);
Complexity / Risk (RISK): indicates the level of
complexity and the degree of risk to face for the
diffusion of IdPs in the sector, based on three
values (High = High expected level of complexity
and risk; Medium = Average complexity and risk
values; = Low risk and limited complexity).
Further evaluation elements:
Functional Expertise (ExFUN): it indicates the
level of practical and business expertise needed to
develop / promote the product in the sector, based
on three values (High = High expected level of
expertise and experience; Medium = Competence
and experience in average values; Low = Lower
need for knowledge of the sector from a functional
and business point of view);
Technical expertise (Extec): it indicates the level
of technical and specific expertise needed in the
sector, based on three values (High = High
expected level of expertise and technical
experience; Medium = Average values of
competence and experience; Low = Lower need
of specific and technical knowledge).
4 MAJOR INTEREST AREAS
AND SECTORS FOR DIGITAL
IDENTITY (IDP) AND CIP
The choice of priorities has been defined to ease the
spreading of the Digital Identity (eID), according to a
series of factors:
Management and Innovation Models for Digital Identity in Public Sector
229
Rapid promoting in most “advanced” sectors;
Attacking of most profitable areas and companies;
Prioritizing short and medium term revenue
policies;
The trade-off between complexity / risk and
market potential;
The low complexity of competitors and the
reference market maturity.
Some areas (INAIL, Energy, Cards, Lottery,
Transportation, SMEs) have a big potential in the
Medium and Long term, but it will be necessary a
specific study to evaluate the opportunity to develop
the ID in the national specific context
7
. The synthesis
of the result of the matrix can be depicted in the image
in the next page (Figure 2). It defines four quadrants,
where the top-right area is the most interesting (high
potential revenues and low risks) and the lower-left
quadrant represents the no-interest area. The other
two parts show the areas to be evaluated and explored
on an opportunistic basis.
Short term interest areas to promote are:
Banking and Payment Institutions;
Life insurance companies:
Telecommunications Companies;
Ecommerce/Merchants;
INPS (National Institute of Social Security)
8
;
Car rental companies;
Pharmaceutical retail services.
Figure 2: Evaluation Matrix.
Private clinics and diagnostic centres;
ACI / DMV, Universities.
No-interest areas to consider with low priority,
7
http://www.agendadigitale.eu/identita-digitale
are defined by the following traits:
Need for substantial investments in terms of
marketing and market complexity;
Low profitability and high market saturation;
Presence of established competitors.
Included in this area can be founded:
Pharmaceutical Companies;
Ministry of Education;
Research Institutions;
Investment Bank, SGR;
Contact Centres;
Automotive / TAXI, Delivery / Post;
Life Insurance branch, Brokers;
Retail (apparel, food & drink, decor).
5 CONSTRAINTS AND
OPPORTUNITIES FOR AN
OPERATIONAL MODEL
Within the development of a Digital Society, we
should consider both the actions that can contribute to
the proactive participation to the European Single
Market and the interventions to promote the digital
economy. Priorities are the interventions with a focus
on the digital market, as the support for the e-
Commerce diffusion (both for the demand and for the
supply side), the organizational changes in companies
for e-business, the ICT vouchers for the introduction
of technologies in businesses, the support for web
start-ups as part of more general policies for start-ups.
Today we are facing a new kind of "digital
enterprise", a kind of enterprise that is unfortunately
not classified by companies’ registration offices or by
other national bodies. Moreover, they often do not
have prerequisites to access public incentives.
Particularly important to fasten the digitization of the
economy, are the creation of a regulatory framework
and the diffusion of effective tools for electronic
invoicing (e-Invoicing), electronic payments (e-
Payment) and the electronic procurement (e-
Procurement). Policies for digital growth, in terms of
Research & Innovation and digital market
development, require a qualitative leap both for the
Public Administrations and for the private business
realities. Both should evolve from players that design
and provide solutions to proactive partners that make
all their assets available, collaborating for the co-
design and co-production of solutions and services,
8
https://www.inps.it/portale/default.aspx?NewsId=3154
ICEIS 2017 - 19th International Conference on Enterprise Information Systems
230
thanks to the enabling role of ICT. Institutions and
private partners must lead the change considering the
interdependent relationship between technology,
industry and society, so that the industry can respond
to technological progress ensuring all citizens have
access to new digital services.
Regarding the areas of intervention identified, the
existing synergies between them act on different
levels of supply and demand, relating both to the
public sector and, indirectly, to the private sector too
(through enhancement of public information, open
data, information security, digital identities, smart
communities, digital skills development).
The development of the digital administration and
economy, is not possible without an effective
securitisation of networks and information,
fundamental to obtain citizens’ trust towards the
online services provided. This condition is necessary
to allow people to autonomously operate and use the
services, raising the efficiency of the entire
economical system.
The recent and increasing attack rate, both on
private and governmental IT systems, injected new
life into this topic, especially when key or critical
infrastructures are the target of such assaults, such as
energy distribution facilities, the banking system and
financial institutions.
6 SWOT ANALYSIS
That of digital growth is a cross-cutting topic to any
area, from for tourism and culture, to craftsmanship
and digital manufacturing. It is very varied in terms
of possibilities, ranging from simple "online sales" of
products, the complete change of business models,
the opening of new markets, to the "makers"
movement. The completion of national and
international strategies related to ICT as KET in
Research & Innovation, is fundamental when
designing new policies for digital growth through
research and innovation. Such policies should aim at
creating a digital ecosystem that is dynamic,
competitive, productive, friendly, safe and full of
opportunities. This includes initiatives related to the
"Living Labs", the research on big data, the theme of
entrepreneurial discovery, the development of pre-
commercial procurement and the promotion of
public-private partnerships, the development of
advanced technologies needed for smart
communities. A further priority should be the
"Entrepreneurial discovery” intended as the process
which encourages companies, research centres and
universities to work together to identify the most
promising areas, but also the weak points that may
hinder innovation. ICT and digital ecosystem are key
enabling elements for the full development of the
potential of entrepreneurial discovery.
It is crucial in this scenario, to be aware that
technology evolves exponentially, and social
relationships too, but there is need of widespread
skills and increasingly powerful technological
infrastructure not losing competitiveness and socio-
economic growth capacity. Therefore, it is needed the
identification of a strategy to recognise strengths and
weaknesses, opportunities and threats, which can be
synthetically represented in the SWOT analysis that
follows.
6.1 Exponential Technology Growth
The technological growth, does not only represents an
instrumental element for any country, but it is also the
biggest strength to exploit to make eID spread. The
creation on a digitalization path, as well as a
regulatory framework and a system of priorities is, as
previously shown, essential. All progresses should be
of course measurable and executed rapidly, to better
take advantage of the technology growth. The
increase of internet use among citizens, will end the
Digital Divide and open to innovations (e.g. Smart
Cities).
6.2 Need for Infrastructures and Skills
A digital revolution, can be pursued only when can
rely on an adequate infrastructure system and
widespread skills. The need of huge investments, both
in human and financial capital, represents a weakness
to which should be given attention.
All delivery, rollout and dissemination
mechanisms, must be set and perfectly working to
avoid the risk of duplication and misalignment of
confidential information.
6.3 Exploit the Actual Scenario and
Social Economic Capacity
The traction of eID can be exploited to start a
structured collaboration among all public actors,
creating a well-established, clear and common
strategy. The rollout of new services, will enable
mobile payment, remote access, loyalty programs and
peer-to-peer appliances, all based on the attributes
contained in CIP. Despite the scenario has good
perspective, threats coming from the scarce
utilization of economies of scale and synergies
(mainly due to fragmentation of resources and
Management and Innovation Models for Digital Identity in Public Sector
231
investment duplications), can mine eID. Moreover,
must be avoided that third parties without specific
characteristics (e.g. Banks) can become IdPs and use
their customer base to force government to authorize
them. The cost of control, conversion and
maintenance of the eID system is high, also in terms
of human effort. Last, data leak is a problem that has
to be faced with priority in respect to other.
7 CONCLUSIONS
The unique and peculiar characteristics of Italy,
which are due to the territorial distribution, the type
of culture and demographic factors, equally
contribute to the slowing of the large-scale spread of
new technologies and digital in general. These
considerations can be extended to other countries,
too: the uniqueness that characterizes each Nation, is
one of the reason why is so difficult to create a unique
framework regarding eID. In many areas and sectors,
citizens do not even feel the need for a Digital
Identity, stressing that the main limitations are
coming from culture and mentality. Italy is trying to
leverage the advantages that Digital Identity can bring
in the life of "Citizen 2.0", but what is needed to make
tangible progresses, is a simplification both from the
technical and political point of view. Given that these
obstacles to eID are real and widespread, the
Innovation Model proposed in this paper, considering
the Italian specific features, tries to depict a possible
solution to all those countries that find themselves in
the same conditions, and offers effective tools to
adequately address the Digital Identity innovation
and pick suitable sectors and areas of application.
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