Parliamentary Portfolio Committee Presentation

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Parliamentary Portfolio Committee Presentation
05 June 2002
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Agenda

• Update on the progress of partnership delivery
• SITA finances and cash flow management
• ITAC the means to delivery

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Objectives of Partnership

• SITA will use Partnerships to achieve the
  following
• Provide access to convenient ,cost effective and
  high quality Information Technology (IT)
  services
• To Partner with the Public (including state owned
  enterprises) and Private sector to develop
  innovate IT delivery solutions e.g. Partnership
  with SABS for providing IS Security solutions
• Develop a positive regulatory environment for IT
  service Delivery that will ensure that the Social
  , Economic and Political impact of the regulation
  of e-Government services are carefully managed

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Areas of Partnerships
SITA Partnership levels will have a strong focus
on e-Business solutions and typically operate in
the following areas - Consulting services -
System integration - Evaluation,implementation
and continuous improvements on
Government initiated projects
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Partnership levels
The SITA service Partnership will be possible at
the following levels - SITA Global
Partnership Applicable to strong companies who
provide comprehensive service offerings and
operate with market coverage of the whole
entire country - SITA Alliance
PartnershipApplicable to strong consulting
companies offering comprehensive services to
SITA key accounts in the corresponding
market. - SITA Global Alliance PartnershipThe
Global Alliance Partnership is the highest
partnership level.This level represents a
selected group of companies with a dedicated
SITA business focus. Commitment is
demonstrated through the significant investment
in resources. Participation is offered by
invitation through the SITA Board approval process
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TYPES OF PARTNERSHIP

• Service Partners
• Applicable to companies offering consulting
  services in areas like business re-engineering,
  evaluations, implementation and system
  integration
• Technology Partners
• Applicable to key technology driven vendors who
  enhance the technological platform for SITA.These
  are companies offering hardware,operating
  systems,databases,networks or storage facilities
• Software Partners
• Applicable to companies that supply SITA
  customers with third-party software products and
  services that may interface or offered as
  integrated mini-apps.This category will also
  comprise software manufacturers
• Hosting PartnersApplicable to companies with a
  huge knowledge in areas of application management
  ,hosting ,service provision ,and market-place
  hosting
• -

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TYPES OF PARTNERSHIP (2)

• Channel Partners
• Applicable to BEE / SMME that provide value added
  service industry specific solutions and services
  to Government
• Education Partners
• Applicable to companies that deliver high-quality
  professional education in and around the business
  solutions.
• Support Partners
• Applicable to companies that deliver high quality
  support through the entire life cycle of a SITA
  solution
• Content Partners
• Applicable to industry leaders who offer the best
  content in terms of information on companies
  needed to keep pace with todays rapidly changing
  Business landscape

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Partnership update

• SABS - information security
• CSIR - technology research
• Delloite Consulting ITAC
• AST - security delivery and implementation
• CIPAL International (Belgium) under discussion
  for Municipality delivery
• EDS under discussion for knowledge share
• Arivia.Kom 5 priority projects for delivery of
  Transversals

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CASH FLOW MANAGEMENT PROCESS
Ø  Cash flows are bi-weekly compiled by the
Divisions and Holding   Ø Consolidated cash
flows are approved by EXCOM - based on the
available cash   Ø Cash flows are monitored by
comparing the budget to the amount spent and the
amount committed
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ITAC - Background

• PRC Recommendations suggest ICT procurement
  reform as a prime consideration
• Legal framework mandates SITA with this task
• National Treasury transforms into a Common
  Service Provider
• SITA in mutual agreement with National Treasury
  to address ICT component of procurement reform.

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SITA Procurement Policy - Current Focus

• Compile and promulgate a process that
• is legal
• Practical
• Achievable in the current environment
• Addresses as many of perceived shortcomings /
  challenges as possible

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National Treasury Delegations up to 31 March 2002

• Current National Treasury IT delegations
• ltR100k
• Departmental responsibility
• 3 Quotes
• Procure from lowest quote and in accordance with
  specification
• ltR750k
• Departmental responsibility
• Internal tender
• Lowest and in accordance with specification
• Above R750k
• National Treasury tender
• Departmental procurement
• Departmental contract management

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ITAC Delegations from 01 April 2002

• ltR100k
• Client responsibility
• 3 Quotes process
• Procure from lowest quote and in accordance with
  specification
• Utilise the ITAC Supplier Database (will include
  suppliers from provincial databases)
• gt R100k
• Tender process to be followed
• All tenders done via the ITAC process
• Consistent and sufficient consultation with
  clients

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ITAC Process Overview
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The main objective of ITAC is to facilitate ICT
acquisitions through effectively managed
contracts with vendors

• Primarily,
• Negotiate and manage contracts with vendors in
  accordance with the needs of government
• Tender evaluations
• Leverage government buying power to increase the
  value (and reduce the cost) of all IT investment
  in government
• Consolidated procurement
• Source and provide technology that serves as a
  vehicle for enhancing government service delivery
  to citizens
• Research, Certification, Enterprise Programme
  Management and eSolutions
• But also,
• Further the governments initiatives in
  increasing value-added presence of BEE and SMME
  in the sector

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These objectives will be achieved through
managing expectations of the various stakeholders
in the process

• Identify and agree on the stakeholder map and
  expectations of the relationships
• Role players in the process and their capacities
• Develop a process that will be agreed by all
  stakeholders
• Define and agree the roles and responsibilities
  across the process
• Set performance measures for the process aligned
  to agreed SLAs to manage stakeholder expectations
• Review expectations on a regular basis to manage
  deviance from agreed expectations
• What was the plan?
• What was the target?
• What is the actual?
• If not met, what are we going to do differently?

PDR methodology
PLAN
REVIEW
DO
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Also, they will be achieved if certain
fundamental principles are agreed to by the
stakeholders
ITAC is based on the fundamental principles that

• Government departments (clients) have ultimate
  decision making power in the expenditure of their
  IT budgets
• ITAC facilitates client needs through effective
  acquisitions and integrated contract management
• Once the contract has been setup, the client then
  interacts with the vendor directly
• SITA is involved on an ad hoc basis
• Clients feed all their requirements to SITA to
  leverage (in reality) on economies of scale when
  negotiating contracts with vendors

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The visible value add of ITAC is to setup ICT
contracts for government, everything else must be
behind the scenes
Government (client)
Vendor
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4
1
2
ITAC

• Contract Definition
• Do we understand what the customer wants/needs?
• Contract Development
• Who is best suited to render the solution/service
  to the customer?
• Procurement from contract
• ITAC disappears from the day-to-day procurement
  from the contract
• But behind the scenes, keeps track of customer
  satisfaction and supplier performance
• Contract Review / Contract Definition
• On review/renew of contracts, ITAC prepares the
  required information and manage the process

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To deliver to expectation, weve had to define a
stakeholder map so as to manage those
relationships clearly
Cabinet DPSA
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2
SITA Holdings
GITO Council
National Treasury
Government Departments
SITA C
SITA D
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Accounting Officer
CIO / IT Dir
Purchasing Officer
eSERVICES
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ITAC
VENDORS
Core Suppliers
VARs
SMME BEE
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The relationships between ITAC and SITA C D in
particular, are critical and require thorough
understanding
End Customer
Accounting Officer (National)
Intermediate Customer
SITA D
Accounting Officer (Provincial)
ITAC
SITA C
Accounting Officer (Local)

• Expectations
• Relationship

• Expectations
• Relationship

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The ITAC value chain helps us to clearly define
our relationships with the stakeholders and thus
manage them
CLIENT
SITA (CERTIFICATION ITAC)
CLIENT
Develop Business Case
Register Business Case
Certify against (IT House Of Values)
Manage Tender Process
Setup Contract
Procure From Contract
Manage Delivery
CERT/ITAC delegation
Client delegation
Client delegation

• ITAC and Certification take full accountability
  and responsibility
• But, CONSULTS the client BEFORE decisions are made

• Client has full accountability and responsibility
• SITA C D support the client
• SITA E consulted so the process is expedited (eg.
  CERT)

• Client has full responsibility and accountability
• ITAC (Contract Management) is involved in order
  to monitor and manage vendor performance against
  agreed SLAs
• SITA C and D involved from a delivery point of
  view

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ITAC process is aligned to the government IT
House of Values
Production
In-service delivery
Cost
Cost of Access Delivery
Primary elements of IT Value
Service Delivery (User Welfare)
Convenience, Choice and Control
Enabled by
Key Strategic Focus Areas
Inter-operability
Elimination of Duplication
Economies of Scale
IT Security
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Its important to highlight that in the ITAC
process, there is sufficient involvement of
clients in tender evaluations
tender evaluation committee (incl. client)
evaluates and recommends to SSB
supplier selection board (incl. client) assesses
risk and reviews process conformance
supplier selection authority (incl. National
Treasury) awards tender to successful bidder
TEC
SSB
SSA
AO
AO
Sign-off By Accounting Officer
Consultation With Accounting Officer
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Basic operational capability is in place, we need
to deliver on the medium/long term goals
Completed
still to do

• The process and procedures have been developed
  and are being reviewed today
• Documentation for the process has been developed
• Policy, brochure and How to Guide
• Logistics have been put in place for the process
  to be operational
• Interim Staffed Call Centre - 0800 33 itac -
  (0800 33 4822)
• www.sita.co.za/itac
• Contracts have been ceded from National Treasury
• Interim capacity to run the process has been put
  in place
• Consultants for a 3 month period
• We are soliciting assistance from National
  Treasury staff for contract migration

• The 7 key projects
• Licensing
• Seat Management
• Disaster Recovery Management
• Etc.
• Skills development in ITAC to ideal levels to
  meet customer requirements
• Technology research, development and
  implementation for ITAC, SITA and Government
• ITAC Call Centre migration to an E-Services Call
  Centre
• Communication Sessions
• National Road shows
• Content Workgroups
• Cross Functional Sourcing teams
• Industry Sessions
• ICT Definition Guidelines

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Thank you for all the support and guidance