Single Window Systems
In the OIC Member States
108
5.2.4 Organisational Management
Two challenges occur or relate to the organizational management. The table below shows
these challenges and possible strategies and options to overcome these challenges.
Table 28: Organisational Management - Challenges and Options
Challenges
1. Financial Stability
Many SW operating entities report challenges to achieve financial stability and pressure due to
difficulties meeting revenue generation expectations. They operate under financial constraints,
and are dependent on budget allocations from the treasury or on own revenues, which often are
just sufficient to cover operational expenses. Often there is a mismatch between the official
business model of a self-reliable SW entity and the reality of dependence on funding from the
annual government budget.
Different funding and fee models are adopted for Single Windows.
 the public model where the government entirely funds the building and, in some cases also
the operating expenses of the SW,
 the public-private model where the funding for investment and operating costs are shared
between the government and a private partner75, and a private model where all the costs are
paid for by a private entity76.
Each of these models has different implications for the financial management and stability.
 The private-public model SW usually has a stable financial situation and makes profits that
can be injected into the system’s upgrade. User fees may however be criticised because the
SW services are perceived as public service.
 The public model where government assumes funding of investment and operating expenses.
This model does not rely on the user fees and can therefore offer good services at little costs
to the end-users. A problem occurs if the government wants to phase out funding or does not
provide funding for upgrades and investment.
2. Skills and Knowledge Gap
Human capacity and knowledge resources are critical components for SWs, in particular given the
constantly changing technological environment. SW operators faces challenges because a big
knowledge gap exists with regards to the capacity for business processes analysis, which is
necessary in the design and implementation phase as well as to monitor performance of a system
and may furthermore be difficult for SW operators to recruit and retain sufficient and adequately
75 In these models the government contribution to the initial investment is commonly an equity investment.
76 The private model is very rare for Single Windows for Trade but frequent for Cargo Community systems