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META Group
Transforming SITA to enable service delivery in Government
Executive Summary
December 2000
2Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Act as advisors to the board on the SITA business model
Review the current business model submitted to the board and recommend an appropriate model that will assist SITA in achieving the IT value imperatives
Provide a high level migration plan
Project Team Mandate
META Group
Strategic advisory servicesStrategic advisory services
IT strategyIT strategy
IT research and benchmarkingIT research and benchmarking
Change managementChange management
Operations managementOperations management
Best of breed advisory services
The board of SITA appointed a team of leading consulting companies to review and define a business model that will position SITA as an excellent provider of IT services
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Migration Strategy
Background and Context
Outline of the Contents
Business Model Options
Key Next Steps
This report describes the background and context of the business model development process, the recommended business model and the migration plan for the recommended model
IntroductionIntroduction
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Key stakeholders in Government
DPSA GITO Members Department of Communication Department of Justice Department of Correctional Services Department of Home Affairs Department of Finance SARS Department of Defence SAPS Gauteng Provincial Government
DiagnosisDiagnosis
Model Development
Model Development
MigrationMigration
SITA Executives
SITA Board
OutputsOutputs
Background and context
Business Model Options
Recommended Business Model
Migration Strategy
Migration Plan
Key Next Steps
ProcessesProcesses Stakeholders involved in the processStakeholders involved in the process
The approach we took, the stakeholders involved and the results achieved
5Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Information Technology
Consulting the users of the services Setting of
service standards
Increasing access to services
Ensuring courtesy to the public
Providing more and better
information
Increasing openness and transparency
Remedying mistakes and
failures
Getting the best value for money
Rationalisation and restructuring the public service
Institution building and management
Representativeness and Affirmative action
Transforming service delivery
Democratising the state
Human resource development and training
Employment conditions and Labour relations
The promotion of a professional service ethos
Batho Pele Service Delivery PrinciplesBatho Pele Service Delivery Principles
Source: White paper on the transformation of public service Nov 24 1995 and Oct 1 1997 (The Batho Pele White paper)
DPSA Transformation PrioritiesDPSA Transformation Priorities
DPSA service delivery imperatives that guide the utilisation of IT as an enabler of service delivery
6Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Birth
Education
Health Benefits
TravelTranspor
t
PropertiesJob
Marriage Investment
Social
Communication
Environ Condition
sDeathPolitics
Tax
Research
National Defense
The key areas in a citizen’s life that will require IT enabled interaction with the Government Organisation.
Incorporation
Finance
Subsidy/ Funding
Exports/ Imports
Human Resources
Business Development
Vehicle
Sales
Purchases
Administration
Accreditation Politics
Corporate Citizenship
Liquidation
Communication
Research
Statutory Requirements
The key areas in a Business’s life that will require IT enabled interaction with the Government Organisation.
The “cradle to grave” service delivery imperatives from the Citizen and Business
7Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Key service delivery expectations from the citizen point of view
Sample of Life Events Expectations
Key service delivery expectation is the reduction of waiting time
Identification Documents , drivers licenses and passport applications
Education
Health
Transport
Employment, Investments and Taxation
Property procurement
Social Security
Crime and Justice
Prompt generation of identification documents drivers licenses and passports
Citizen identification for registration
Educational records and facilitation of planning
Remote health diagnosis
Ability to report road damage to enable quick repair
Consolidated Citizen identification systems (e.g. population register)
Electronic submission of tax returns and query handling
Prompt registration of properties
Ease of pension payments
Speedy closure of cases
Easier track down of criminals
8Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Key service delivery expectations from the citizen point of view
ExpectationsExpectations Challenges
Key challenge is to maintain security and privacy of information
Prompt generation of identification documents, drivers licenses
and passports
Citizen identification for registration
Educational records
Remote health diagnosis
Ability to report road damage to enable quick repair
Consolidated Citizen identification systems (e.g. population
register)
Electronic submission of tax returns and query handling
Prompt registration of properties
Prompt feedback on eligibility and ease of pension payments
Speedy closure of cases
Easier track down of criminals
Integrated, accurate and up-to-date population register
Bio-metrics integrated with population register
Educational records linked to population register
Network access, bandwidth, link to health records
Call center to route call to correct Authority (Local, National, Provincial)
Automated scheduling of maintenance team
Bio-metrics integrated with population register
Access to SARS tax systems
Linking the conveyancer, bondholder, land register and the surveyor general to the Deeds register and the GIS
Bio-metrics integrated with population register, deeds register, unemployment records, health records and vehicle register; accessibility to pay-points
Court automation and links to police and correctional services
Bio-metrics integrated with population register and links to justice, police and correctional services
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Sample of Business Events Expectations
Key service delivery expectation is the reduction of waiting time and improvement in productivity
Starting-up a business
Raising funds
Training
Health, Safety & Environment
Labour relation issues
Minimal red-tape
Quick understanding and approval of Government incentives and support
Clear understanding of Government policy and available support, particularly to smaller businesses
Understanding of Government regulation and requirements; obtaining advice from officials
Understand rules of the game and speedy resolution of labour related cases
Key expectations and current service delivery challenges from the business point of view
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Key expectations and current service delivery challenges from the business point of view
ExpectationsExpectations Challenges
Key challenge is to maintain security and service levels
Minimal red-tape
Quick understanding and approval of Government incentives and support
Clear understanding of Government policy and available support, particularly to smaller businesses
Understanding of Government regulation and requirements; obtaining advice from officials
Understand rules of the game and speedy resolution of labour related cases
One-stop registration for Registrar of companies, UIF, SARS, SETA, RSC, Local Authorities, etc
Advise and prompt direction of businesses to IDC, SBDC, Land Bank, NSF, DTI, etc
Links to Labour, Education and Educational Institutions, SAQA
Access to Health,Safety and Environmental Officers
Quick access to advice and scheduling appointments for mediation and conciliation cases
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Inte
rop
era
bility
Ec
on
om
ies
of S
ca
le
Elim
ina
tion
of D
up
lica
tion
IT S
ec
urity
Productio
n Cost
Service Delivery (User Welfare)
•Cost of access•Cost of delivery•In service delivery
•Convenience, Choice, Control and Universal accessEnabled by ….
Primary elements of IT Value
Key Strategic focus areas
These imperatives will form the foundation for the rest of this document
The imperatives for IT service delivery have been captured in the house of IT value
12Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Provide information technology and information systems training;
Provide application software development and maintenance services;
Promote the effective utilization of information technology to enhance the efficiency at all levels of the Public Service;
Provide technical, functional and business advice and support regarding information technology;
Provide information technology and information systems management services;
Act as procurement agency in respect of information technology requirements, in accordance with State procurement policy
Provide data processing services;
SITA has not alleviated IT skills shortages in government.
Provision of effective IT resource management has not been done by SITA
Economies of scale on IT service procurement has not been felt at any level of the public sector
Value for money has not been provided by SITA in delivering IT services to departments or convenience to the citizens.
SITA’s intervention has not reduced departments’ dependence on contractors
SITA’s intervention has not eliminated duplication and non compatibility of IT infrastructure
Information sharing and interoperability in government IT services has not yet occurred
Mandate Current Performance
SITA’s current performance does not live up to its legislative mandate
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Has SITA provided value for money?
Has SITA provided effective IT resource management?
Has SITA reduced high IT cost?
Has SITA reduced the dependence on contractors?
Has SITA eliminated duplication and non compatibility
of IT infrastructure?
Has SITA promoted information sharing in government?
Has SITA alleviated IT skills shortages in government?
X
X
X
X
X
X
X
Stakeholder Perceptions Yes No
Discussions with stakeholders reveal that there is a strong perception that SITA has not yet fulfilled its mandate
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What value creating role should SITA be playing ?
What is the value proposition for that role ?
How can we optimally migrate SITA to achieve this role ?
What is the optimal time-frame to achieve this role ?
Key Business model development challenges that SITA has to resolve
Elements of the ChallengeElements of the Challenge
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Diagnosis
Model Development
Migration
Background and context
Business Model options
Recommended Business Model
Migration Strategy
Migration Plan
Key Next steps
The next session of this brief discusses the Business Model options and the recommended Business Model
16Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Potential business model roles for SITA were defined in terms of planning, delivery, maintenance and managing
Planning Delivery Mainte -
nance
Managing
The planning and formulation of Government-wide
IS strategy to achieve the IT value imperatives
To ensure that there is delivery capacity and to meet the specfic IT needs of the organs of state
To have inhouse capabilities to maintain the IT solutions at a low cost and the highest levels of quality
Continuous guidance to support the delivery of
business capabilities through procurement and
contract management as well as project and
programme management
The IT Value Chain Description of the ElementsDescription of the Elements
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Planning Delivery Maintenance
Managing
Planning Delivery Maintenance
Managing
Planning Delivery Mainten-
ance
Managing
Planning Delivery Mainten-
ance
Managing
Option 1
Option 4Option 2
Option 3
The fourth model option was developed as an extension of model option 2
Three alternative business model roles for SITA was developed
18Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Data CentreServices
CommunicationServices
Security & RecoveryServices
End-UserServices
Planning & Control of the delivery
capability
IS Planning and Architecture
IS Quality & Standards
Acquisition Centre- IT ProcurementAdministration
Customer Relation-ship Management
Program / Project Management
Solution Development
Solution Maintenance
End-UserApplication Services
Information Management
Delivery of Technology Solutions to enable service deliveryRole
Option 1Role
Option 1
Role Option 2
Role Option 2
Role Option 3Role Option 3
Options 1,2 and 3 are pure and represent the core logic/reason for existence
Additional capabilities have been added to option 2 to fully support the achievement of the IT value imperatives
The options enable the organisation to focus its capability building and migration
Role Option 4 = Role Option 2Role Option 4 = Role Option 2 ++
DesktopServices
TransversalSystems
Management of Infrastructure and Services
Another view of the three distinct business model options for the role of SITA in IT service delivery
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Each model option was explored further
Value proposition
Impact on the “House of IT value”
Roles and Responsibilities
Impact on current operations
Implications on the degree of change
Financial value proposition
Key Elements of the Analysis
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Interoperability Elimination
of duplication
Economies of Scale
IT Security
Developments of standards and guidelines to facilitate theacquisition and implementation of IT solutions
Option 1 Option 2
Ensure that all technology solutions that have broad applications are shared by departments
Assist Departments translate their business needs into ITSpecifications with minimal dependence on vendors
Management of vendor relationships to ensure delivery to
agreed service levels
Release of departmental managerial focus from IT towards delivery of service to their constituents
Maintenance and updating of standards timeously
Adherence to an agreed standard utilised across Government, ensuring interoperability of systems
Consolidation of bulk buying power through a shared service procurement capability
The value proposition per alternative business model role
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Interoperability Elimination
of duplication
Economies of Scale
IT Security
Provide adequate capacity to implement and maintain ITSolutions timeously, at the lowest possible cost
Option 3 Option 4
Adherence to an agreed standard utilised across Government, ensuring interoperability of systems
Ensure that all technology solutions that have broad applications are shared by departments
Consolidation of bulk buying power through a shared service procurement capability
Management of vendor relationships to ensure delivery to
agreed service levels
Assist departments translate their business needs into IT specifications with minimal dependence on vendors
Release of departmental managerial focus from IT towards delivery of service to their constituents
Ensure that a government-wide focus and management of
IT security is maintained
The value proposition per alternative business model role
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Provides advices to DPSA on planning and development of government-wide IT standards
Performs advanced technology research
Definition of architecture and network design
Planning of human resources
What SITA Does
What SITA Does Not Do
What SITA Does
Option 1 Option 2
The departments have to define the service levels that SITA should be fulfillingSITA would propose solutions that would enable the achievement of these service levels
SITA does not execute project and program management
SITA does not deliver Technology
SITA does not implements skills development and transfer programs within departments
Business process management is not executed by SITA
The improvement of service delivery at departmental level becomes the responsibility of the private sector and other stakeholders and not SITA
Does not develop systems
Does not operate the front office
Does not do physical support
Will not implement and run the network, however it will remain responsible for the management thereof to ensure compliance with standards and IT security
Does not execute IT security
Capabilities described in option 1
Provide the mechanism where departments can obtain Technology that complies with Government standards
Monitor the implementation of IT solutions that enable service delivery imperatives
Manages the acquisition of IT solutions through procurement and contract management
What SITA Does Not Do
Roles and responsibilities per alternative business model role
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SITA is executes project and program management
SITA implements skills development and transfer programs within departments
Business process management is executed by SITA
The improvement of service delivery at departmental level becomes the responsibility of SITA
SITA is responsible for managing projects’ life cycle costs
What SITA Does
What SITA Does Not Do
Provide the mechanism where departments can obtain Technology that complies with Government standards
Monitor the implementation of IT solutions that enable service delivery imperatives
The security and recovery agent for all Government services in collaboration with the security cluster
What SITA Does
Option 3 Option 4
The departments have to define the service levels that SITA should be fulfillingSITA would propose solutions that would enable the achievement of these service levels
SITA does not plan and develop Government-wide IT standards
Sourcing alternatives are the departments’ responsibility
SITA is on the delivery end of the ITG service delivery spectrum and not on the policy and standards development end
The design of government IT service delivery process is the domain of the DPSA not SITA
Does not develop systems
Does not operate the front office
Does not do physical support
Will not implement and run the network, however itwill remain responsible for the management thereof to ensure compliance with standards and IT security
What SITA Does Not Do
Roles and responsibilities per alternative business model role
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Option 2Option 2 Option 3Option 3Option 1Option 1
Produ
ctio
n
Cost
Service Delivery
Intero
pe
rab
ility
Econ
om
ies o
f Sca
le
Elim
ina
tion o
f Du
plicatio
n
IT S
ecu
rity
High LowImpact Scale
Rationale- Development of standards to govern IT services- However minimal involvement in implementation and monitoring reduces iimpact of model on IT value
Rationale- Planning and control role increases the degree of quality(service) assurance- Lesser involvement in implementation reduces some of the impact of model on IT value
Rationale- Primary involvement in implementation ensures delivery according to promise- Since SITA will not have capacity to perform all implementation, minimal inolvement in monitoring and control will reduce the impact on IT value
Produ
ctio
n
Cost
Service Delivery
Intero
pe
rab
ility
Econ
om
ies o
f Sca
le
Elim
ina
tion o
f Du
plicatio
n
IT S
ecu
rity
Produ
ctio
n
Cost
Service Delivery
Intero
pe
rab
ility
Econ
om
ies o
f Sca
le
Elim
ina
tion o
f Du
plicatio
n
IT S
ecu
rity
Produ
ctio
n
Cost
Service Delivery
Intero
pe
rab
ility
Econ
om
ies o
f Sca
le
Elim
ina
tion o
f Du
plicatio
n
IT S
ecu
rity
Rationale- Full involvement in implementation and focused responsibility for delivery further enhances the probability for delivery according to promise by vendors- IT also reduces the burden for develoing internal capacity without increasing the delivery risk
Option 4Option 4
Impact on the “House of IT Value imperatives” per alternative business model role
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Planning Delivery Maintenance
Managing
Planning Delivery Maintenance
Managing
Planning Delivery Mainten-
ance
Managing
Planning Delivery Maintenance
Managing
Option 1Option 1
Option 4Option 4Option 2Option 2
Option 3Option 3
The un-shaded areas are the capabilities that SITA must plan to remove from the current operations
Impact on current operations per alternative business model role for SITA
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Option 2Option 2 Option 3Option 3Option 1Option 1
1 Scale of change to current operations in SITA
2 Scale of skills development - reskilling and acquisition
3 Degree of Impact on the current organisation
4 Criticallity of customer relationship management
5 Criticallity of a coherent and focused communication strategy
6 Criticality of executive buy-in to the model option
High Low
Impact Scale…
Based on the evaluation, Option 4 was selected as the preferred target business model
Option 4Option 4
Implications on the degree of change per alternative business model role
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Options
1
4
3
2
Grants from DPSA Minor capital expenditure
Charge to customers based on:
Contract management fee
Subscription fee for IT advice
Outsourcing arrangements with vendors
Charge to customers based on goods and services delivered
Charge to customers based on:
Contract management fee
Project management fee
Subscription fee for IT advice
Outsourcing arrangements with vendors
Customer accounts managed on a 30 day cycle
Vendor accounts managed on 30 day cycle
Capex burdens placed on vendors through contracts
Minor capex requirements
Requirements are small
Capex burdens placed on vendors through contracts
Capex planning for network acquisition, upgrades and replacements
Huge and fluctuating capex requirements covering networks, computers, hardware, software and infrastructure
Large and fluctuating as inventory is included
Risk of inventory obsolescence
Risk of late / non payments for goods and services delivered
Options Funding Capital ExpenditureWorking Capital
Customer accounts managed on a 30 day cycle
Vendor accounts managed on 30 day cycle
Financial Value proposition per business model option
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Organisation Structure and Competencies
Facilities
Processes Technology
Strategy Performance Management
Development of a voice, data
and video network to
deliver education to previously
disadvantaged areas
Need to develop business skills that match the dynamic
and varied needs of departments
Development of a regional and centralised service hubs to facilitate service delivery
Development of partnership
strategies around key IT government
interventions. (E.g.
eGovernment)
Facilitate the development of an integrated government
through process enhancements. (E.g using
eGovernment )
Development of a citizen focused
scorecard to measure
service delivery
The Service delivery strategies and targets together with the preferred role option will be the primary influence on the SITA business model
29Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Diagnosis
Model Development
Migration
Background and context
Migration Strategy
Migration Plan
Key Next steps
Recommended Business Model
Business Model Options
The next session of the brief discusses the outline of the migration strategy, migration plan and key next steps
30Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
The business model migration strategy was developed using a comprehensive process with the purpose of defining the major initiatives and approach for SITA to achieve tangible results
Done Not yet Done To be finalised by SITA
Define and communicate
potential require-ments to key stakeholders
Validate and confirm the
migration plan
Complete the first draft of the
detailed plan
Finalise planning and set up the
implementation capability
Implement the migration plan
Agree on setof drivers which will define the
scope and extentof further
work required
Define the key change programs
in the change journey
Develop the high level migration plan
Validate the migration
plan with keystakeholders
Refine and add further detail to
the plan
We are
here
We are
here
Align themigration plan with the SITA business plans
Prioritisethe change programs
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The perception that SITA will not be able to
dramatically improve its levels of service
SITA does not therefore deserve extra time in
order to prove that it can add value
Perception that SITA is arrogant because it has
a captive market
Potential for resistance from departments
The large scale and complexity of change
required to achieve the new business model
The need to maintain and improve service
levels to the current customer base
The need to source the financial investment
required to achieve the migration plan
Outline of Issues
Communication, marketing and public relations should play a
fundamental role in order to promote a positive can do image
The creation of visible, tangible and early successes is critical
in building service delivery credibility
Collaboration(especially with influencial depts) should drive
partnership approach with departments
Utilise both the regulatory power & the collaboration approach
View and manage the migration as a program vs a “large
project”
Manage SITA with a dual focus - “Maintain and improve current
service levels” while “Building the new capabilities”
Utilise the collaboration approach in order to share the
investment required and reduce the burden on SITA
Migration guidelines
Specific guidelines were then developed in order to address the challenges resulting from the migration issues
32Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
There will be visible leadership, sponsorship and support for the change programme;
Change initiatives and progress on the migration process will be managed throughout the migration;
The project team will have sufficient access to the key decision makers;
The migration strategy will be adjusted to accommodate changes to the selected model option;
SITA will dedicate the necessary resources required throughout the change journey;
Communication for the overall journey will be planned and delivered in a consistent manner;
Decision making that impacts the migration process will be prompt;
Current initiatives within SITA will be incorporated into the migration plan if they are aligned to the
implementation of the preferred business option.
Executive buy-in to the business model and migration plan will be achieved ;and
Detailed planning will be done before the implementation of each phase.
There will be visible leadership, sponsorship and support for the change programme;
Change initiatives and progress on the migration process will be managed throughout the migration;
The project team will have sufficient access to the key decision makers;
The migration strategy will be adjusted to accommodate changes to the selected model option;
SITA will dedicate the necessary resources required throughout the change journey;
Communication for the overall journey will be planned and delivered in a consistent manner;
Decision making that impacts the migration process will be prompt;
Current initiatives within SITA will be incorporated into the migration plan if they are aligned to the
implementation of the preferred business option.
Executive buy-in to the business model and migration plan will be achieved ;and
Detailed planning will be done before the implementation of each phase.
Certain assumptions were made in developing the migration plan. The changes to these assumptions may impact the implementation of the migration plan
33Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
• Clearly define the change
programme
• Minimum interuption of
operations during the migration
• Realisation of value through
service delivery
• Delivery of business benefits
• Prioritisation of the change
initiatives
• Ownership of the SITA vision at all
levels of the organisation
• Communication of consistent
messages to ensure buy-in
• Management of stakeholders’
expectations
• Development of a set of common
values
• Executive sponsorship and involvement
• Dedicate resources needed for the
change journey
• Ensure skills tranfer and capacity
builiding during the change process
• Demonstrate support for the change
programmes
• Creation of a desired business
culture
• Leverage of SITA resources and
skills as much as possible
• Value -based partnerships
• Reward for performance and not
attendance
LeadershipNavigation
Enablement Ownership
Based on our experience, successful migration plans are dependent on four key factors - Navigation, Leadership, Ownership and Enablement
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Communications and Mobilisation
Culture Programme
Leadership Development
Marketing and Public
Relations
Organisational Performance Management
Capability Development Management
Programme Management
Capability Transition
Management
Preparation Establish Scale Up Powerhouse
Maintain & Improve service levels while transitioningMaintain & Improve service levels while transitioning
Foundation
Building the future
Wrap-upWrap-up
The migration strategy will have 8 major change programs implemented according to two major themes
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Each phase in the migration strategy will result in specific outputs
3. Establish• Implement the rest of the
capabilities• Transition next set of capabilities
not in the preferred model• Complete review of all IT
contracts• Sign the first set of service level
contracts with departments• Complete performance
management system
4. Scale Up
• Further enhance the performance of all capabilities
• Wrap-up transitioning capabilities• Sign more service level contracts with
departments• Create a culture of “Customer is King”
5. Powerhouse
• SITA is effectively running according to the preferred business model
1. Preparation for the Migration• Plan for success• Set up program management office• Review Business plans
2. Foundation• Achieve the critical mass of capabilities• Transition out critical mass of current
capabilities not in the preferred model• Start review of all IT contracts(current and
pending)• Determine systems needs based on life
events• Review and align all internal performance
contracts
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At each landmark, SITA will be enable to deliver specific value based on services
3. Establish2. Foundation
• IT procurement administration
• Contract Management
• Legal services
• Security management
• Service delivery management
• Customer Satisfaction management
• Technology research and
development
• Client Interface management
• Governance
• Architecture definition
• IS Strategic planning
• Programme and Project management
• IS measurement and monitoring
• Performance and Capacity
management
• Standards Development
• Human Capital planning
• IT Change management
• Configuration management
• Problem management
- Capability creation at each milestone -
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Two broad approaches could be adopted for the migration strategy
Fast track Pros
Preparation Establish Scale Up Powerhouse
Maintain & Improve service levels while transitioningMaintain & Improve service levels while transitioning
Foundation
Building the future
Wrap-upWrap-up
030
Days3
months8
months12
months15
months
Preparation Establish Scale Up Powerhouse
Maintain & Improve service levels while transitioningMaintain & Improve service levels while transitioning
Foundation
Building the future
Wrap-upWrap-up
030
Days12
months18
months24
months30
months
• Rapid improvements in service delivery
• Build credibility quickly• Create a sense of urgency
Concerns
• Impact of union involvement• Time to build key competencies• Time to obtain approval
Pros
• Managed pace of change• Extra time for transitioning and
capability building exercise
Concerns• Allows time for resistance to
change• Does not address urgency for
service delivery• Duplication of costs due to
running old and new
Even paced
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The capability transition program is focused on planning the migration of capabilities not included in the recommended option
How can we manage the transition of capabilities with minimal impact on the current
operations and service levels to the customer?
What will be the approach to integration of customers into the new SITA?
How should we organise SITA in order to manage the creation of new capabilities
while fulfilling our current commitments?
What approach should we use to manage the financial implications of the capability
transition?
Key Issues that have to be addressed
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A number of critical factors will have to be fulfilled in order to achieve successful transition of capabilities
Partner with key departments to ensure success
Focus on improving performance and review service level agreeement before transitioning
The migration of capabilities should be done in parallel with contract negotiations and selection of
the preferred vendor. This will
minimise potential conflict with the unions through the development of an inclusive approach that is
utilised in all integration efforts
minimise the need for SITA manage the assets of the integrated operations
minimise the impact on service levels through careful management of the transition to the preferred
vendor
provide an opportunity to minimise the impact on the employees by ensuring that this forms part of
the contract negotiations. e.g. retrenchment clauses, representativeness of the staff,
Organise SITA to maintain a comprehensive focus on maintaining current service levels,
development of new capabilities and the successful integration
40Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
A partnership rather than a solo effort approach with key stakeholders will position SITA to overcome key change barriers and achieve the strategic objectives
Example of Key Area Example of Key Partners
Procurement • National Treasury
• Department of Trade and Industry
• DPSA
E-Government • Department of Communications
• Department of Trade and Industry
• Department of Arts, Culture, Science and Technology
• DPSA
This will
• accelerate the process of obtaining buy-in from different stakeholders
• leverage the significantly good work that has been done by other stakeholders and avoid duplication of
effort
• enhance the creation of a spirit of cooperation rather than that of “us” vs “them”
• potentially form the foundation for discussions around contribution of both effort and investment towards
implementation of key capabilities
• promote the concept of “one window” to government services
Critical factor 1: PartnershipCritical factor 1: Partnership
The exact details of the partnership will have to be developed jointly with the relevant departments
within the context of the specific project(s)
41Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Focus on improving the effectiveness across all key entities …
Personnel effectiveness
Process effeciencies
Technology platform uutilised
… whilst reviewing the current service level agreement(s) to ensure that …
the expected service outputs from SITA are aligned with the new direction implied by the IT value imperatives
the business plans of the transition capabilities are are aligned with the new direction implied by the IT value imperatives
the time-frame for the transition is aligned with the change journey imperatives
Benefits of the approach
The capabilities that are transitioned out of SITA will be positioned for success
Minimises the risk of disruption in service levels and enables SITA to plan the transition
Ensures that the capabilities adhere to the direction implied by the IT value imperatives in all areas – choice
of technology, management of the IT assets, relationships with vendors …
Critical factor 2: Improve performance and Review SLACritical factor 2: Improve performance and Review SLA
We recommend a two step process to dealing with the founding departments
42Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Integration is the key compentence that will influence both the migration of departments into SITA and the migration of current capabilities into a new entity
The customer interaction and absoprtion into SITA
The negotiations about management of assets (Hardware, Sotware and
Peopleware) post - integration
The IT service levels to the integrated department post-integration
The capacity that SITA will have to develop in order to manage the integrated
assets (Hardware, Sotware and Peopleware)
The approach to partnering with the preferred vendor(s)
The impact of potential union involvement on the success of the integration
The content of the contracts with the preferred vendor(s)
The financial implications for both SITA and the integrated department
The integration approach will influence
Critical factor 3: IntegrationCritical factor 3: Integration
43Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
There are 2 broad integration approaches that could be adopted - “Lock stock and barrel integration”, “Contract based integration”
Lock Stock and Barrel integration implies that
SITA takes over the responsibility for the IT assets (Hardware, Sotware and Peopleware)
Departments cede responsibility for contract management and procurement to SITA
SITA manages the assets in the interim before it selects the preferred vendor
SITA negotiates contract with the preferred vendor
SITA transfers responsibility for managing the assets to the preferred vendor
SITA manages the contract and service levels
Vendor delivers the service to the department
Once the current contract expires, SITA negotiates new contract
Contract based integration implies that
Departments cede responsibility for contract management and procurement to SITA
SITA negotiates contract with the preferred vendor
SITA transfers responsibility for managing the assets to the preferred vendor
Vendor takes over the responsibility for the IT assets (Hardware, Software and Peopleware)
SITA manages the contract and service levels
Vendor delivers the service to the department
Once the current contract expires, SITA negotiates new contract
Critical factor 3: IntegrationCritical factor 3: Integration
44Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
We recommend the Contract based integration approach
Benefit Key Success factors
SITA does not have to develop the capacity to
manage the integrated assets (Hardware,
Sotware and Peopleware) - This responsibility
will be passed on to the preferred vendor
The IT service levels to the integrated
department post-integration are not interrupted
The risk of potential union push-back will be
managed through contract stipulations. (E.g on
retrenchment and training)
The financial implications for both SITA and the
integrated department are minimised through
transfer of responsibility to the vendor using
contract management
A set of critical skills have to be rapidly
developed within SITA. E.g
Contract development and Management
Service Level agreements and
management
Customer and Vendor interface
management in order to manage the
relationship between SITA and the
preferred vendors
Rapid audit of the current environment -
Both within SITA and in the government IT
environment
Critical factor 3: IntegrationCritical factor 3: Integration
45Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Objectives
SITA will have to re-organise itself in order ensure that it achieves business results from the change journey
• Ensure that the structure enables SITA to maintain focus on current operations
• Ensure that a structure that enables the migration of in-house capabilities that are not part of the
preferred model
• Ensure that a structure that enables SITA to focus on the creation of the future business model
• Ensure that integration process has
– the adequate level of executive emphasis
– maintains the dual effort - migration of departments into SITA and in-house capabilities that
are not part of the preferred model out of SITA
Critical factor 4: StructureCritical factor 4: Structure
46Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
A preliminary structure was developed in order to achieve the describe objectives
Core Capabilities Ring fenced Delivery Capabilities
Support Capabilities
Board of Directors
MD
COO
Critical factor 4: StructureCritical factor 4: Structure
47Report prepared by Andersen Consulting, Deloitte Consulting, Makino Technologies and Meta Group
Key Next StepsKey Next Steps
We recommend that SITA completes the folloing key next step to ensure success
Preparation of a detailed migration plan
Conduct financial analysis in order to understand the financial implications of the migration
approach
Conduct a skills audit based on the competences required in the preferred option
Determine the integrated solution requirements to drive the IT solution blue-print(IT audit and future
systems needs to drive a proactive solution delivery strategy)
Review the integration approach to ensure that it does not commit SITA in a direction that is not
aligned to the preferred model
Review the recruitment approach to ensure that it is aligned to the preferred model
Build partnernships with key stkeholders that will enable SITA to achieve rapid and tangible success
Ensure that the executive performance contracts are aligned to the achievement of the strategic
imperatives in the preferred model