eoh local government services
DESCRIPTION
Overview of EOH Local Government Services. How we see the challenges facing local government in South Africa, and how we can assist.TRANSCRIPT
Local Government Services Enabling Service Delivery
August 2011
• Leader in Technology and Business Solutions
• Largest implementer of ERP solutions
• Widest range of applications
• One of Top 4 IT service providers in SA
• End-to-end offering
• Strong Black Economic Empowerment profile
• Operates in Africa (South Africa, Botswana, Kenya,
Nigeria) and UK
• Listed on JSE since 1998
• 1700 + staff, > 2200 customers
EOH at a glance
Key Findings: The South African IT services market is dominated by local players (Dimension Data, GijimaAst, Business Connexion and Enterprise Outsourcing Holdings [EOH]) which increased their combined market share by 1.4% to nearly 27% in 2009.
Gartner: Market Share Analysis: IT Services Rankings,
Middle East and Africa, 2009
EOH provides specialised consulting, technology and outsourcing services to the following industries: Financial Services Mining Manufacturing Industry Public Sector, Telecommunications, Retail Industry
The EOH Vision To be the best technology and business solutions company to
work for, partner with and invest in
• Leader in Technology and Business Solutions
• Largest implementer of ERP solutions
• Widest range of applications
• One of Top 4 IT service providers in SA
• End-to-end offering
• Strong Black Economic Empowerment profile
• Operates in Africa (South Africa, Botswana, Kenya,
Nigeria) and UK
• Listed on JSE since 1998
• 1700 + staff, > 2200 customers
EOH at a glance
Key Findings: The South African IT services market is dominated by local players (Dimension Data, GijimaAst, Business Connexion and Enterprise Outsourcing Holdings [EOH]) which increased their combined market share by 1.4% to nearly 27% in 2009.
Gartner: Market Share Analysis: IT Services Rankings,
Middle East and Africa, 2009
EOH provides specialised consulting, technology and outsourcing services to the following industries: Financial Services Mining Manufacturing Industry Public Sector, Telecommunications, Retail Industry
The EOH Vision To be the best technology and business solutions company to
work for, partner with and invest in
Some of our South African Clients
Key Message
• Local government is critical to service delivery in South Africa
• However, Local Government is failing • ICT is a great tool assist in turning this around • However ICT on its own will not do this – need an
integrated municipal turnaround strategy – strategy, people, process, technology
• Need to do things radically different – more of the same will not work.
• EOH Local Government Services has tremendous experience and skill in the municipal space. – Offers new perspectives and innovative approaches – Operates across strategy, people, process & technology – Should be YOUR partner in helping you enable service delivery
Service delivery protests!!!
One of the most pressing challenges facing South Africa is the need to strengthen local government.
• Local government is key to the service delivery strategy of the government as it is the sphere of government with deals with the implementation of national and provincial policies, in a way that is tangible to people “on the ground”. It is the sphere of government where the “rubber hits the road”.
• Although the lives of many South Africans have improved since 1994, major challenges still lie ahead.
• Part of these challenges is that many municipalities, which are central to the implementation of government policies, still do not have the necessary capacity to implement government programmes and ensure that there is sustainable delivery of basic services - even when resources are available
• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)
• Lack of communication with communities
• Corruption and Nepotism
• Financial mismanagement and Maladministration
• Outstanding debt payments for municipal services
• Lack of capacity – poor project planning, poor management and/or under-spending by municipalities
• Government officials who spend time focusing on their personal business interests at the expense of service delivery.
• Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.
• Poverty and unemployment
Causes include
A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA.
Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009
So, the key question is: Can ICT be used to help government deal with these issues?
Outstanding debt payments for municipal services
• Improved visibility and transparency of information on the new invoice, the ability for citizens to pay their accounts at any municipal pay point and the implementation of a call center to address billing queries.
• Revenue Services performed significant data alignment duties in converting data to SAP.
• Revenue enhancement interventions have received priority attention.
Calculation:
• 1% increase in the payment ration = R6 mil per month.
• ROI option: 90 % payment ratio was used as the baseline for this ROI study and only 11% of financial value of the increase above baseline has been used. = R224.6 mil.
• 100% option: Instead of allocating only 11% - if 100% allocation over 90% base is to be used the financial value would be = R794 mil.
How was the benefit realised?
12 Month Moving Average -Payment Ratio
82.00%84.00%86.00%88.00%90.00%92.00%94.00%96.00%98.00%
100.00%
Jul-0
3A
ug-0
3S
ep-0
3O
ct-0
3N
ov-0
3D
ec-0
3Ja
n-04
Feb-
04M
ar-0
4A
pr-0
4M
ay-0
4Ju
n-04
Jul-0
4A
ug-0
4S
ep-0
4O
ct-0
4N
ov-0
4D
ec-0
4Ja
n-05
Feb-
05M
ar-0
5A
pr-0
5
Payment RatioROI Baseline
Source: City of Cape Town
Cash Position - City of Cape TownJune 2002 to July 2006
0
500
1,000
1,500
2,000
2,500
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Jun-
05
Dec
-05
Jun-
06
R '0
00 0
00
Budget Actual Cash Position
Go-live
Planned loan of R300 mil not taken up
Financial mismanagement and Maladministration
Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04.
Source: City of Cape Town
Lack of Capacity
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000 Inv Value per Day
Sum of Inv Value
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
No Txns per Day
Sum of No Txns
Average Daily Value R744,201
Average Daily No. of Transactions 1140
Andre Stelzner, Director: IS&T, City of CT “Another interesting area has been the automation of fuel payments through e-fuel system and interface into SAP. Through this we pay approximately R750 000 per day for fuel to the respective suppliers without any human intervention......
......What makes things even better is that the price is checked against contract pricing and payment is optimised to ensure that we only pay on due date. In the past we had the fuel supply cut to the city due to late payment, now nobody worries about it.”
Source: City of Cape Town
Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)
If all Services / Works Request follow the same process it becomes easy to Record, Initiate action and track progress across the diversity of services government is responsible for: This can also be spatially enabled
Creating Citizen Value creates Citizen Loyalty.
Lack of communication with communities
• Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via
Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect
reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels
including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online
Creating Citizen Value creates Citizen Loyalty.
Lack of communication with communities
• Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via
Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect
reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels
including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online
Government officials who spend time focusing on their personal business interests at the expense of service delivery.
Help deal with poverty and unemployment
• Large disparity in the socio-economic status of citizens. Systems assist with – Identifying citizens which can – but don’t pay; versus – Citizens which do not have the means to pay. – Support the vulnerable members of society.
• Examples of social responsible Policies and Tariff- structures enable via the ERP Program: – Free Basic Utility Services. – Grants for the Indigent – Debt relief through arrangements and incentives
• Other ICT initatives – Public Internet facilities– reducing the digital divide and
empowering communities – Digital Business Centres – assisting small businesses – Learnerships, volunteerism and skills development
Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises
service delivery.
Implementing effective ICT in the Public Sector can help deal with
• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)
• Lack of communication with communities
• Corruption and Nepotism
• Financial mismanagement and Maladministration
• Outstanding debt payments for municipal services
• Lack of capacity – poor project planning, poor management and/or under-spending by municipalities
• Government officials who spend time focusing on their personal business interests at the expense of service delivery.
• Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.
• Poverty and unemployment A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA.
Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009
People
Strategy
Process
Tech
The Conditions & Challenges impacting Local Government Today
• Ensure that municipalities meet the basic service needs of communities • Build clean, effective, efficient, responsive and accountable local
government • Improve performance and professionalism in municipalities • Improve national and provincial policy, oversight and support • Strengthen partnerships between local government, communities and civil
society
Utilise ICT to restore the confidence of the majority of citizens in the municipalities, as the primary expression of the developmental state at a local level • Pre-configured solutions that can be implemented rapidly • Simplified IT solutions, Shorter time-to-value • Innovative commercial model with scalability options • Centralized and/or on-site services allowing quicker implementations
• Service Delivery Excellence • Improved Customer Service and Convenience • Greater Transparency on decision making and administrative issues • Increased participation
Challenge
Opportunity
Citizen Benefits
Loca
l Gov
ernm
ent
Fact
ors
EOH offers preconfigured solutions with fixed-scope implementation services, flexible commercial
options and scalability for future extension
Immediate value to Local Government with fast deployable solutions
Built-in benefit justifying investment
Easy to deploy ‘Building-block’ implementation approach
End-to-end processes delivering process integration and operational efficiency
EOH Solutions for Local Government
• Streamlined processes • Increased
accountability at all levels
• Move to zero Audit Qualifications
• Budget spend according to plan
• Service Delivery Excellence
Value
Efficiency
EOH Municipal Solutions for Local Government
Implementation Costs
Infrastructure Aquisition
Customer Value
SLA
EOH Value Proposition
€ 17.4 Bn
Typical Implementation Project s today…
Implementation Costs
Infrastructure Aquisition
Customer Value
Proj
ect
Life
cycl
e
Post
-im
plem
enta
tion
SLA
EOH Municipal Solution
The EOH Enablement Approach
EOH Centre of Excellence
Municipality Process Enabled by EOH Property Management Value Chain
Valuations GIS Deeds Planning
Building Control
Register Transfer Maps Street Addresses
Valuation Roll Land Use
Revenue Management Value Chain Loss
Managmt Invoicing & Collections Revenue Planning
Admin Customer
Base
Measure Usage
Financial / Technical
Loss
Manage Revenue Targets
Billing Collect Revenues
Credit Management
Develop Tariffs
Citizen Relationship
Management Value Chain
CRM
Acquire Customer
Deliver Services
Customer Care
Property Management Value Chain
Integrated Solution
Property Management Value Chain Valuations GIS Deeds Planning
Building Control
Register Transfer Maps Street Addresses
Valuation Roll Land Use
Revenue Management Value Chain
Process Definition KPI
Manage Revenue Targets
Set targets/quotas for billing revenue and forecasting product usage in line with a designed sales plan and business unit revenue and surplus attainment objectives. It also includes the use of analytical tools to improve the accuracy of revenue projections and to track revenue and to ensure that it is effectively managed.
• Revenue Actual vs. Target (Rands) • % achievement of target billings
Develop Targets
Setting of tariff policies, applicable tariffs/rates to be charged and the controlling and monitoring of the application thereof and to ensure that it is effectively managed.
• Adherence to government inflation objectives.
• Adherence to City's objectives • % achievement of revenue targets • Publication of tariffs on time
Revenue Management Value Chain Loss
Managmt Financial / Technical
Loss
Invoicing & Collections
Admin Customer
Base
Measure Usage
Billing Collect Revenues
Credit Management
Revenue Planning
Manage Revenue Targets
Develop Tariffs
Revenue Management Value Chain (cont.)
Process Definition KPI
Admin Customer Base
Maintenance of the customer accounts including opening, changes to and closure s. This includes updating on billing data such as on meter installations, repairs, replacements and maintenance inspections.
• Turnaround time for updated customer data • % Accurate customer data
Measure Product Usage
Determining of consumption on products in order to accurately bill customers
• % of accurate meter readings per cycle • Cycle time to finalise readings • Cycle time to complete out-of-cycle
readings
Billing Ensure that services rendered are effective, accurate and billed on time. This also includes the timely delivery of the bills to the consumers by various means.
• % Bills prepared and printed on time % Bills delivered on time
• Cycle time to have Bills ready for delivery
Revenue Management Value Chain Loss
Managmt Financial / Technical
Loss
Invoicing & Collections
Admin Customer
Base
Measure Usage
Billing Collect Revenues
Credit Management
Revenue Planning
Manage Revenue Targets
Develop Tariffs
Revenue Management Value Chain (cont.)
Process Definition KPI
Collect Revenues
Ensure effectively management by making sure that all that for all services billed, the revenues collected are on time and in full.
• % of Amount billed Received
Credit Management
The management of credit monitoring and control, legal recovery and cut-off processes.
• No. of days outstanding • % of overdue amounts recovered. • % of overdue accounts on which services
are terminated
Revenue Management Value Chain Loss
Managmt Financial / Technical
Loss
Invoicing & Collections
Admin Customer
Base
Measure Usage
Billing Collect Revenues
Credit Management
Revenue Planning
Manage Revenue Targets
Develop Tariffs
Revenue Management Value Chain (cont.)
Process Definition KPI
Financial / Technical Loss
The identification, evaluation and the management of financial and technical losses.
• Value of losses identified • % correction on identified losses
Revenue Management Value Chain Loss
Managmt Financial / Technical
Loss
Invoicing & Collections
Admin Customer
Base
Measure Usage
Billing Collect Revenues
Credit Management
Revenue Planning
Manage Revenue Targets
Develop Tariffs
Process Definition KPI
Acquire Customer
Establishing and providing a strategic framework for accepting, managing and delivering the service interaction between the City and its citizens.
• Status of Audit reports • Channel Utilisation • Customer satisfaction • Customer awareness pertaining to the city’s
available interactive channels
Deliver Services
Accepting, executing and monitoring information requests, new service requests and complaints made by citizens, businesses and visitors related to City offerings.
• % First call resolution (FCR) • % Staff declared competent • Waiting time / queue time • Ageing analysis for all logged "tickets" • % Dropped calls • Average handle time • Hours spent per 100 interactions • Fault lifecycle • Call Centre utilisation per FTE • Average speed of answer • % Of customer interactions self serviced • Channel usage ratio
Citizen Relationship Management Value Chain Citizen Relationship
Management Value Chain
CRM
Acquire Customer
Deliver Services
Customer Care
Process Definition KPI
Customer Care
In order to enhance service delivery, focus needs to be placed on Customer Care in order to further improve the customer experience. Managing customer relationships by means of our ability to identify customers, segment customers in order to develop services and manage customers and obtain feedback and monitor feedback.
• % First call resolution (FCR) • % Staff declared competent • Waiting time / queue time (all channels specified
independently) • Ageing analysis for all logged "tickets" • % Dropped calls • Average handle time • Hours spent per 100 interactions • Fault lifecycle • Call Centre utilisation per FTE • Average speed of answer • % Of customer interactions self serviced • Channel usage ratio • Customer Survey results
CRM Value Chain (cont.) Citizen Relationship
Management Value Chain
CRM
Acquire Customer
Deliver Services
Customer Care
Mobile Solution Overview
Call routed to municipality (department)
MIS reports updated
Citizen Log via USSD
Server
Central Control
Municipality District Pothole Identified
EOH MOBILE MUNICIPAL SOLUTION
*120*494*12345# Advantages:
Works with ALL phones (not only smartphones) Do not need data bundles
Cheaper than sms
TRY THIS!!!
• Partnership with SAFIPA (South Africa - Finland knowledge partnership on ICT) & EOH
• Key emphasis on improving the effectiveness of local government by utilising a people, process and systems approach – good, solid, repeatable processes enabled by a system executed by trained people.
• To deliver a package (toolbox) comprising of a systems architecture, process maps, implementation methodology and templates that will be used by municipalities to improve their service delivery.
• Tightly integrated to EOH Municipal systems platform consisting of Operational systems (for day to day running of the municipality), Business Intelligence systems (to enhance information visibility and decision making) , performance management systems (increased accountability) and an e-Government platform to enhance citizen participation and oversight
• Hosted by EOH Local Government Services
EOH Municipality in a Box E-Government platform Available free to South African Municipalities!!!
Co
un
cil o
ffic
ials
an
d p
olit
icia
ns
Cit
ize
ns
and
co
mm
un
itie
s
E-Government Platform •Supply Chain Management/ e-tendering •Council Secretariat (including Agenda Management and Council Meeting Management) •Document Management •Knowledge Management and Knowledge Repository (legislation, reports, etc.) •Municipal Incident reporting and management system •Etc.
Tightly integrated with EOH Municipal Solution
Or
Integrate with existing
back-end transactional
systems
Predefined Municipal Solutions Offering
EOH Value Proposition
EOH commitment to
Local government success
Right 1st Time culture Customer Enablement
Via EOH Academy Quality Management
Local Govt Value Skilled Expertise
Knowledge Transfer Proven Practices
Subject Matter Expertise Actionable Recommendations
Process Optimization Business Support Enablement
EOH
EOH VALUE OFFERING Provides business relevant content
Fully understands Local Government operating model and processes
Shared commitment to service delivery
Collaboration platform
Business Requirements
Solution Matching
LOCAL GOVERNMENT
MUNICIPALITY OBJECTIVES Ensure that municipalities meet the basic service needs of
communities Build clean, effective, efficient, responsive and accountable local
government Improve performance and accountability
Use local resources to drive revenue – attract industry / tourism
Run municipality as a business
Knowledge transfer thru’ EOH Academy
EOH Centre of Excellence Enablement Approach
Proven practices
Legacy Integration
What makes the EOH difference? Integrated approach to deliver a complete end-to-end solution
Flexibility
Price
Hardware
Software / Data
Implementation services
Delivery Concept
SOLUTION OFFERING FEATURES
predefined solution options
optionally at customer site or hosted
deployment package by EOH
Customer relevant pre-configured business processes delivered on building block principle for quick time to value and predictable costs while retaining flexibility
can be included
flexible pricing options
included
reduced implementation costs and time allows for easy and quick extension of the solution landscape along new business requirements
simplify complex system landscapes adopting integrated solutions
Preconfigure & Predefined
Ease of Use
designed to start small addressing the immediate issues while allowing for later growth along increasing business requirements
Scalable Implementation
access to support personnel either on-site and/or through the EOH Centre of Excellence
Support
A dedicated consulting arm that understands the Local Government Domain with a proven track record
Local Government knowledge
The service offering includes preconfigured software and fixed-scope implementation services at a predictable price. It also combines the ability to address your service delivery requirements with the flexibility to accommodate future growth. This service offering can lower your cost and risk of solution implementation and accelerate your time to value.
Summary of EOH Value Proposition
SUMMARIZED VALUE PROPOSITION
Preconfigured software addressing Local Government priorities with end-to-end processes
Preconfigured software
A templatised methodology of delivering defined results within predictable costs and time of implementation
Predefined service
Leverage pre-configured municipal specific content.
Rapid Deployment
Diagnostics (Grand Plans/Route Maps) Implementation through BPI of Legislation/ Policies
Public Sector Consulting
Key Message
• Local government is critical to service delivery in South Africa
• However, Local Government is failing • ICT is a great tool assist in turning this around • However ICT on its own will not do this – need an
integrated municipal turnaround strategy – strategy, people, process, technology
• Need to do things radically different – more of the same will not work.
• EOH Local Government Services has tremendous experience and skill in the municipal space. – Offers new perspectives and innovative approaches – Operates across strategy, people, process & technology – Should be YOUR partner in helping you enable service delivery
www.EOH.co.za Nirvesh Sooful Enoch Makhubo [email protected] [email protected] +27 84 909 9284 +27 72 907 6342
Wayne Noble Lucky Mondlani [email protected] [email protected] +27 72 510 4668 +27 82 570 4691
Discussion/ Comments
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BENEFITS STATEMENT
Integrated solution improving time-to-value, reducing Total Cost of Integration (TCI) and increasing ease-of-implementation by combining Local Government Expertise, preconfigured solution and flexible implementation services
Innovative and scalable delivery model offering additional benefits in deployment