Click to edit Master subtitle style

SITA Report to the Portfolio Committee on Public Service and Administration 1 September 2010

Scope Introduction

Inception of SITA, Review and Rationale for a Turnaround MPSA Performance Outcomes Contribution to Government priorities SITA Mandate and Services

Achievements and Challenges Achievements since inception Challenges – the need for a Turnaround Procurement System (Contract Management)

SITA Strategic Direction Strategic Plan 2010-2013

Strategic outcomes Progress to date

22

Inception of SITA SITA was established in April 1999

By SITA Act 88 of 1998 as amended by Act 38 of 2002 Registered as Schedule 3A Public Entity (according to PFMA)

By amalgamation of InfoPlan (Pty) Ltd, the ICT Service Provider to Dept of Defence Central Computer Services of the Department of State Expenditure Sub-component Information Systems within the Department of Safety

and Security

33

SITA Review In March 2010 Cabinet adopted a Turnaround Framework for

SITA, recognising that a decade after the formation the lead ICT agency of government, SITA was in crisis.

Review teams (established by MPSA) identified a number of issues that prevent SITA from achieving the objectives as identified by the Presidential Review Commission (PRC) in 1996:

Be the lead agency for ICT in the public service Procure Information and Communication Technology (ICT) goods and

services, using economies of scale to reduce the cost of ICT; Develop standards, architectures and strategies to enable systems to

exchange information (interoperability); Enhance government productivity through the use of ICT, and Focus government ICT provision towards the betterment of citizen-

centric services. Coordinate the whole-of-government ICT initiatives.

44

Rationale of Turnaround strategy Strategy must

Address internal issues that prevent SITA from fulfilling its mandate. Address concerns from customers (departments, provinces), suppliers,

public institutions and the sector around quality of service, pricing, corruption and other inefficiencies.

Speak to the priorities of government and the DPSA during the 2009-2014 term.

Finally, position SITA to play its role in the development of the South African ICT sector.

55

MPSA Outcomes OUTCOME 12: An efficient, effective and development oriented

public service and empowered, fair and inclusive citizenship: Output 1: Access to and quality of Service. Output 3: Business processes, systems (PERSAL functionality and

accuracy) Output 3: SITA Efficiency and Effectiveness Output 3: Improvement in Supply Chain Management Output 4: Improvement in the corruption perception index.

66

SITA Contribution to Government priorities An effective public sector ICT agency, which provides ICT goods and services

to government that impact on productivity, the lowering of costs and citizen convenience.

Modernisation of public service operations by development and implementation of Integrated Financial Management System (IFMS).

Citizen convenience, assist and support the roll-out and connectivity of the multi-purpose Thusong centres, contribution to the development of government-to-citizen e-government solutions in general.

Security and convergence of government ICT, through the improvement of information system security measures to support the Government’s anti-corruption campaign (i.e. the security measures of existing PERSAL, BAS and LOGIS), and strengthening Regulatory function (ICT Standards and Certification).

Government ICT programmes, by supporting and active involvement in the development of key ICT programmes in government, Education (LURITS), Health eHR, Justice (IJS), Social Development (NISIS).

77

SITA Mandate The mandate of SITA as spelled out in the Act is:

a) to improve service delivery to the public through the provision of information technology, information systems and related services in a maintained information systems security environment to departments and public bodies; and

b) to promote the efficiency of departments and public bodies through the use of information technology

88

Mandatory Services

99

Data Processing (Act, Sec 7(1)(a)(iii))

Private Telecoms Network (Act, Sec 7(1)(a)(i))

Transversal Systems (Act, Sec 7(1)(a)(ii))

Procurement(Act, Sec 7(3))

Disaster Recovery Plan (Regulation, Sec 4.1.2)

Information System Security (Act, Sec 6(a))IS Convergence Strategy (Regulation, Sec 4.1.1 (a))

Information System Inventory (Regulation, Sec 4.6)Research Plan (Regulation, Sec 4.4.1)

Standards (Interoperability & Security) (Act, Sec 7(6)(a)(i),(ii))

Certify against Standards (Act, Sec 7(6)(b))

Act means “SITA Act 38 of 2002”; Regulation means “SITA General Regulations R.902 of 2005”.

SITA Service Portfolio

1010

Value Add Services

IT CONSULTING & ADVISORY

INFORMATION MANAGEMENT

Full Outsourcing

MANAGED APPLICATIONS

MANAGED DESKTOP

MANAGED INFRASTRUCTURE

Support & Transaction Services

COMMERCIAL PRINTING

TRAINING

SOURCING

PROJECT MANAGEMENT

Systems Integration & Solution Development

SOLUTION DEVELOPMENT

SYSTEMS INTEGRATION

End-to-end management of IT operations to enable high performing business Predictable delivery and integration of new & existing

systems to transform business processes into industrial solutions

Provisioning of support services that ensures the successful execution of IT initiatives and processes

BUSINESS CONTACT CENTRE

SITA offers a spectrum of additional services to address your professional and business requirements

SECURITY MANAGEMENT

SITA Achievements (Part 1) Full Outsourcing (ICT Infrastructure Service)

DOD, SAPS and KZN fully outsourced to SITA as “one-stop” service. National Network Infrastructure, that enable integration among

government departments. Government’s Transversal Systems operate like clockwork (transactions

are processed on time and salaries paid on time). System Integration and Solution Development service

Ongoing development of Integrated Finance Management System (IFMS), to improve resource management and decision-making in Government.

Learner Unit Registration information tracking system (LURITS), to improve Basic Education.

Poverty Index System, City of Johannesburg to support “war on poverty”. Telemedicine, to bring Health Care into rural communities.

1111

SITA Achievements (Part 2) Value Add service

Minimum Interoperability Standards (2007) to improve interoperability Government Wide Enterprise Architecture, to improve ICT Planning KZN Nerve Centre, to improve provincial service delivery Municipal Blueprint, to standardise ICT for local authorities

Support & Transaction services Call Centres (Batho Pele Gateway, Independent Electoral Commission,

Presidential Hotline, South African Social Security Agency) GovTech Conference, as platform to grow ICT development in the country

Internal Achieved ISO9001 Quality certification (organisation wide) Developed Service Portfolio, capability model and a costing and pricing

model.

1212

Challenges (Part 1) Symptomatic and Salient issues

Services Delivery: Poor service delivery (from proposals, through to service delivery and service level management; inconsistent service delivery and absence of services at some service outlets)

Service Value: Perception of services being expensive and non-value adding

Procurement: Poor quality of service, lack of compliance with regulations, pricing and turn-around times, no economies of scale, weak internal capabilities, processes and performance monitoring.

Customer base: Failure to complete the incorporation of government departments into SITA due to the dissatisfaction with SITA service levels and standards.

Personnel: High staff turnover especially at leadership level, core skills, ineffective board and weak corporate governance;

1313

Challenges (Part 2) Systemic and Institutional issues

Unable to achieve the values of the ICT House of Value (poor enforcement of interoperability and economies of scale).

Ineffective “Regulatory” role with poor certification, no Government-wide ICT inventory and little integration of Government systems to reduce duplications;

Enterprise [software] agreements with Suppliers proved unworkable at times and even costly when compared with the market.

Non-adherence by government departments to the SITA Act Internal performance

Poor compliance and performance culture; Bloated functions and structures. Unsigned Business agreements and service level agreements. Ineffective contract management system

1414

Procurement system (Contract Management)

Tender Management Governed by SITA Procurement Policy (SOPP)

Makes provision tender invitation Tender evaluation Tender adjudication Each of the above supported by relevant governing structures

Contract Management Contracting with successful bidder Supplier relationship management Contract administration (Achilles Heel)

Monitor supplier compliance to terms and conditions Monitor delivery according to Service Level Agreement / Statement of Work. Contract term management.

1515

1616

SITA Strategic Direction

Vision & Mission

Vision“Be the lead ICT agency to enable public

sector service delivery.”Mission

"To render an efficient and value added ICT service to the public sector in a secure, cost-

effective and integrated manner, contributing to service delivery and citizen

convenience."

1717

1818

ICT House of Value*

* SITA Regulations & SITA Act (amended)

Impact on Government Services

Unique ICT Value Contribution

Means/ServicesICT Planning ICT Integration ICT Operations

Sec

uri

ty

Inte

rop

erab

ilit

y

Red

uce

d

Du

pli

cati

on

Eco

nom

ies

of

Sca

le

Dig

ital

In

clu

sion

Lower

CostCitizen

Convenience

Increased Productivity

SITA Role as Value contributor

1919

To effectively fulfil this role, requires a highly sophisticated and dynamic agency with the necessary leadership, skills, capabilities and systems and processes to ensure a high level of service excellence, value for money, innovation and thought leadership

Turnaround Focus Areas Services: Capabilities that produce or render ICT related goods and services

to an organ of state at a price (revenue generating); Procurement (Supply Chain Management): Capabilities that procure ICT

goods and services from the ICT Industry (suppliers) for and on behalf of an organ of state.

Regulatory role: Capabilities that fulfil the role of ICT Regulator (including set standards for interoperability and security, certification, R & D, Inventory of Government Information Systems , Information Systems convergence strategy).

Stakeholder, image, reputation: Capabilities that manage customer needs and expectations, foster good relationships and promote the brand and image of SITA.

Governance: Bodies and structures that collectively provide strategic direction, policy and ethics of SITA, and ensure performance and conformance thereto.

2020

Key Drivers ICT Leadership, which is the ability to fulfil the role as lead agency on ICT in

government, to become a trusted advisor to customers and stakeholders and be the knowledge hub on government ICT matters.

Service Delivery, which is the scope, relevance and quality of services SITA offer, in order to provide effective and efficient products and services to customers.

Value Proposition, which is the unique value that SITA adds to its service offering to the public sector as defined in the Government ICT House of Value, in order to achieve unique, relevant and high quality service offering.

Demand and Supply, which is the ability to predict and respond to the demand and supply indicators, in order to achieve improved response times, knowledge/awareness and planning capabilities.

Pricing & Sustainability, which is how SITA manages the cost of its services and products, determines the price of services, in order to achieve fair pricing that matches the value-add and improve financial sustainability of the organisation.

2121

2222

SITA Strategic Plan 2010-2013

Strategic Outcomes 2010/11 – 2013/14

2323

No Strategic Outcome Key Performance Areas1 Proficient lead agency in

public sector ICT• Stakeholder relationship management• Service Portfolio Management• Innovative and Learning organisation

2 Effective and integrated public sector ICT Supply Chain Management (SCM)

• Financial viability and sustainability• Economies of scale• SCM Processes, systems and integrity• SCM Performance Management• SCM Contract management

3 Competitive pricing and financial sustainability

• Financial viability and sustainability• Pricing and costing, value for money• Financial systems, processes, people & technology

4 Effective ICT Regulator • Financial viability and sustainability• Regulatory role (standards, certification, convergence)

5 Effective Governance and Monitoring

• Customer and supplier monitoring and compliance• Internal Governance, Monitoring & Compliance

6 Employer of choice • Organisation Architecture• Building high performance organisation with a strong

performance and compliance culture• Human Resource and Capacity• Leadership Excellence

Outcome 1: ICT Lead Agency

2424

Strategic outcome 1: Proficient lead agency in public sector ICTKey Performance Areas and Outputs Initiatives/Activities Stakeholder Relationship Management,

measured by: Stakeholder Satisfaction Index (SSI) Customer Satisfaction Index (CSI)

Commission SSI study to establish baseline. Cultivate and Improve Stakeholder relationships Reposition SITA as a Thought Leader in ICT. Commission CSI study to establish baseline for critical

service areas. Implement and Monitor Service Improvement

programme for identified services. Implement and Monitor SCM Service improvement

programmeService Portfolio Management, measured

by: Performance against contracted service

levels for Hosting Services, Networks, Internet Services, and other Services

Systems Integration Capability

Implement and Monitor Service Portfolio Strategy Manage Service Levels Implement and Monitor Service Improvement

Programme Develop and implement Prime Systems Integration

(PSI) Capability.

Innovative and Learning organisation, measure by:

Knowledge Management Maturity level

Develop, Approve and implement knowledge management strategy

Outcome 2: Supply Chain Management Strategic Outcome 2: Effective and integrated public sector ICT supply chain management

Key Performance Areas and Outputs Initiatives/ActivitiesFinancial viability and sustainability,

measured by: Financial viability of SCM Function

Development and implementation of SCM function as a revenue stream

Cost Recovery ManagementEconomies of scale (SCM), measured, Cost saving on Hardware, Software

Licenses and Services purchase.

Develop and implement Software Licence Management strategy. Establish Government Hardware, Software and Service Baseline.

SCM processes, systems and integrity as measured by:

SCM Capability Maturity

Conduct SCM Capability Maturity assessment Redefine the procurement value proposition (services and value-

add). Integrate Supply Chain Management processes with business

development. Develop and implement Customer Requirements management

capabilities (demand management)SCM Quality Management, measure by: SCM Service Quality Performance Index

Establish a SCM performance Index. Implement and Monitor improvement initiatives

SCM Contract Management , measured by: Compliance with Contract Management

Practice

Review, Improve and Implement Supplier contract management capability according to good practice.

Manage Supplier Service Level Agreements. Develop and implement product life-cycle management practice (to

monitor contract life-span) 2525

Outcome 3: Pricing and Sustainability

2626

Strategic Outcome 3: Competitive pricing and financial sustainability Key Performance Areas and Outputs Initiatives/ActivitiesFinancial viability and sustainability ,

measured by: Liquidity Ratio Solvency ratio Profitability Return on Investments (ROI) Debtor Days

Effective cash management Review credit management policy (including how to

manage bad/outstanding debt) Optimise working capital by optimising cash flow, minimise

debt exposure and pay creditors on time Revenue Growth Reduce and manage costs Manage Profitability across service offerings. Develop ROI strategy and plan. Manage and Monitor return on investments

Pricing and costing, measured by: Standardised Costing and pricing

Methodology across service portfolio

Review, benchmark and Implement a standardised Costing and Pricing strategy and capability.

Financial systems, processes, people & technology , measured by:

Integrated Financial Systems Implemented.

Acquire and implement Business Intelligence (BI) and reporting tool.

Acquire & implement Budgeting system.

Outcome 4: ICT Regulator

2727

Strategic Outcome 4: Effective ICT Regulator

Key Performance Areas and Outputs Initiatives/ActivitiesFinancial viability and sustainability,

measured by: Financial viability of Regulatory Function

Develop and approve Business Plan for Regulatory function.

Approve and implement Cost Recovery Management

Regulatory Role , measure by: Fulfilment of Regulatory Role Level of compliance with Standards

Develop Government Information System Convergence Strategy

Establish and maintain Information System Inventory Review and Update standards for information system

security and interoperability. Develop Research and Development strategy, plans,

investment and capabilities Develop Government Wide Enterprise Architecture Certify compliance of ICT against interoperability

standards Certify compliance of ICT against information system

security standards

Outcome 5: Governance

2828

Strategic Outcome 5: Effective Governance and Monitoring Key Performance Areas and Outputs Initiatives/ActivitiesCustomer and supplier monitoring

and compliance , measured by: Validity and Relevance of Service

Level Agreements (SLA)

Audit and Monitor all service level agreements. Engage key stakeholders to support enforcement of service

delivery contract management. Standardise Service Level Agreements and commission

Legal opinion on validity thereof.

Internal Governance, Monitoring, Compliance and accountability, measure by:

Level of Compliance and audit findings to Governance Risk and Controls.

Compliance Level (Accountability)

Develop and implement Governance Compliance and Risk Framework (M&E)

Monitor and ensure compliance with Governance framework (including clean audit report, delegation of authority).

Monitor/ensure compliance with Corporate Policies/Process Implement consequence (disciplinary) measures

Outcome 6: Employer of choice

2929

Strategic outcome 6: Employer of choiceKey performance areas and Outputs InitiativesOrganisation Architecture , measured by: Alignment of Organisation Architecture with

aligned to value proposition (service offering)

Review the business model and operating model (organisational architecture), including value proposition, service offering, key business processes, core competencies, structure and technologies.

Human Resource and Capacity, measured Organisational Capacity Alignment Employment Equity Employer of Choice Strategy Organisational core competence Workforce competence alignment SITA’s integrated and standardised

management reporting cycle. Leadership behavioural charter

Approve and Implement Human Resource Development strategy Monitoring Progress against HR plans. Implement EE Plan per Division Develop and implement employer of choice strategy Organisational competence workforce placement strategy Risk management strategy pertaining to Floating Workforce Development and implementation of the Integrated standardized

management approach Enforcement of monitoring and evaluation of leadership and

management accountability matrix Development and implementation of a leadership behaviour charter

Building high performance organisation with high performance culture, measured by:

Definition and execution of indicators for HPO & HPC

Development and adoption of service delivery charter and policies

Change management programme for high performing organisation Development and implementation of the integrated performance

management policy and procedure Development and instilling of culture of work, accountability and

service delivery by all employees (Individual Performance Contracts and Operational Level agreements)

Progress to date Board of Directors reconstituted in March 2010 Strong oversight responsibilities by Board sub-committees. Acting CEO appointed. Turnaround implementation

Doing things differently Three-year strategy, outcomes for each year Work started in each of the strategy priority areas Ongoing engagement with stakeholders as we proceed

Shareholder approval of Turnaround Strategy

3030

Click to edit Master subtitle style

Thank YouDankieSiyabongaKe a lebohaSiyathokoza

3131