transforming sita to enable service delivery in government

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


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


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


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


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


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


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


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


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


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


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


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


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


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


Diagnosis

Model Development

Migration


Business Model options


Migration Strategy

Migration Plan

Key Next steps

The next session of this brief discusses the Business Model options and the recommended Business Model


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


Planning Delivery Maintenance

Managing


Managing

Planning Delivery Mainten-

ance

Managing


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


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


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


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


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


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


Roles and responsibilities per alternative business model role


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


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


Roles and responsibilities per alternative business model role


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



Managing


Managing


ance

Managing


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


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


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


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


Diagnosis

Model Development

Migration


Migration Strategy

Migration Plan

Key Next steps



The next session of the brief discusses the outline of the migration strategy, migration plan and key next steps


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


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


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


• 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


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


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


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 -


Two broad approaches could be adopted for the migration strategy

Fast track Pros



Foundation

Building the future

Wrap-upWrap-up

030

Days3

months8

months12

months15

months



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


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


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


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)


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


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


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



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



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


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


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

transforming sita to enable service delivery in government

Documents

deloitte consulting

process andersen consulting

sita business model

makino technologies

current business model

appropriate model

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