Transforming SITA to enable service delivery in Government

1
Transforming SITA to enable service delivery in
Government

• Executive Summary
• December 2000

2
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
Project Team
Mandate

• 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

3
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

• Outline of the Contents

Introduction
Background and Context
Business Model Options
Migration Strategy
Key Next Steps
4
The approach we took, the stakeholders involved
and the results achieved
Outputs
Processes
Stakeholders involved in the process
Diagnosis
SITA Board
Background and context
SITA Executives
Business Model Options

• 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

Recommended Business Model
Model Development
Migration Strategy
Migration Plan
Migration
Key Next Steps
5
DPSA service delivery imperatives that guide the
utilisation of IT as an enabler of service
delivery
Service Delivery Principles
DPSA Transformation Priorities
Rationalisation and restructuring the public
service
Consulting the users of the services
Institution building and management
Setting of service standards
Getting the best value for money
Representativeness and Affirmative action
Transforming service delivery
Increasing access to services
Remedying mistakes and failures
Democratising the state
Human resource development and training
Information Technology
Ensuring courtesy to the public
Increasing openness and transparency
Employment conditions and Labour relations
Providing more and better information
The promotion of a professional service ethos
Source White paper on the transformation of
public service Nov 24 1995 and Oct 1 1997 (The
Batho Pele White paper)
6
The cradle to grave service delivery
imperatives from the Citizen and Business
The key areas in a citizens life that will
require IT enabled interaction with the
Government Organisation.
Birth
Health
Benefits
Properties
Job
Social
Environ Conditions
Death
Politics
Research
Education
Travel
Transport
Marriage
Investment
Communication
Tax
National Defense
The key areas in a Businesss life that will
require IT enabled interaction with the
Government Organisation.
Incorporation
Subsidy/ Funding
Human Resources
Vehicle
Purchases
Accreditation
Politics
Liquidation
Research
Finance
Exports/ Imports
Business Development
Sales
Administration
Corporate Citizenship
Communication
Statutory Requirements
7
Key service delivery expectations from the
citizen point of view
Sample of Life Events
Expectations

• 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

• Identification Documents , drivers licenses and
  passport applications
• Education
• Health
• Transport
• Employment, Investments and Taxation
• Property procurement
• Social Security
• Crime and Justice

Key service delivery expectation is the reduction
of waiting time
8
Key service delivery expectations from the
citizen point of view
Expectations
Challenges
Expectations

• 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

• 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

Key challenge is to maintain security and privacy
of information
9
Key expectations and current service delivery
challenges from the business point of view
Sample of Business Events
Expectations

• 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 service delivery expectation is the reduction
of waiting time and improvement in productivity
10
Key expectations and current service delivery
challenges from the business point of view
Expectations
Challenges
Expectations

• 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

Key challenge is to maintain security and service
levels
11
The imperatives for IT service delivery have been
captured in the house of IT value

• Cost of access
• Cost of delivery

• In service delivery

Primary elements of IT Value
Cost
Production
Service Delivery (User Welfare)

• Convenience, Choice, Control and Universal access

Enabled by .
Key Strategic focus areas
Elimination of Duplication
IT Security
Economies of Scale
Interoperability
These imperatives will form the foundation for
the rest of this document
12
SITAs current performance does not live up to
its legislative mandate
Mandate
Current Performance

• 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.
• SITAs intervention has not reduced departments
  dependence on contractors
• SITAs intervention has not eliminated
  duplication and non compatibility of IT
  infrastructure
• Information sharing and interoperability in
  government IT services has not yet occurred

13
Discussions with stakeholders reveal that there
is a strong perception that SITA has not yet
fulfilled its mandate
Stakeholder Perceptions
Yes
No

• 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
14
Key Business model development challenges that
SITA has to resolve
Elements of the Challenge

• 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 ?

15
The next session of this brief discusses the
Business Model options and the recommended
Business Model
Diagnosis
Background and context
Business Model options
Recommended Business Model
Model Development
Migration Strategy
Migration Plan
Migration
Key Next steps
16
Potential business model roles for SITA were
defined in terms of planning, delivery,
maintenance and managing
The IT Value Chain
Description of the Elements
The planning and formulation of Government-wide
IS strategy to achieve the IT value imperatives
Planning
Delivery
Mainte - nance
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
Managing
Continuous guidance to support the delivery of
business capabilities through procurement and
contract management as well as project and
programme management
17
Three alternative business model roles for SITA
was developed
Option 1
Option 3
Planning
Delivery
Maintenance
Planning
Delivery
Mainten- ance
Managing
Managing
Option 4
Option 2
Planning
Delivery
Maintenance
Planning
Delivery
Mainten- ance
Managing
Managing
The fourth model option was developed as an
extension of model option 2
18
Another view of the three distinct business model
options for the role of SITA in IT service
delivery
Planning Control of the delivery capability
Delivery of Technology Solutions to enable
service delivery
Role Option 1
Program / Project Management
Solution Development
Solution Maintenance
End-User Application Services
Information Management
IS Planning and Architecture
IS Quality Standards
Acquisition Centre - IT Procurement Administration
Role Option 2
Data CentreServices
CommunicationServices
Security RecoveryServices
End-UserServices
DesktopServices
Transversal Systems
Customer Relation- ship Management
Management of Infrastructure and Services
Role Option 3
Role Option 4 Role Option 2


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
19
Each model option was explored further
Key Elements of the Analysis

• 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

20
The value proposition per alternative business
model role
Option 1
Option 2
Developments of standards and guidelines to
facilitate the acquisition and implementation of
IT solutions
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
Maintenance and updating of standards timeously

• Assist Departments translate their business needs
  into IT
• Specifications 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

• Consolidation of bulk buying power through a
  shared
• service procurement capability

21
The value proposition per alternative business
model role
Option 3
Option 4
Provide adequate capacity to implement and
maintain IT Solutions timeously, at the lowest
possible cost
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
22
Roles and responsibilities per alternative
business model role
Option 1
Option 2
What SITA Does
What SITA Does

• 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

• 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
What SITA Does Not Do

• 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

The departments have to define the service levels
that SITA should be fulfilling SITA would propose
solutions that would enable the achievement of
these service levels
23
Roles and responsibilities per alternative
business model role
Option 3
Option 4
What SITA Does
What SITA Does

• 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

• 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 Not Do
What SITA Does Not Do

• 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
  it
• will remain responsible for the management
  thereof
• to ensure compliance with standards and IT
  security

The departments have to define the service levels
that SITA should be fulfilling SITA would propose
solutions that would enable the achievement of
these service levels
24
Impact on the House of IT Value imperatives per
alternative business model role
Option 2
Option 3
Option 1
Option 4
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
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
Rationale - Development of standards to govern IT
services - However minimal involvement in
implementation and monitoring reduces iimpact of
model on IT value
High
Low
Impact Scale
25
Impact on current operations per alternative
business model role for SITA
Option 1
Option 3
Planning
Delivery
Maintenance
Planning
Delivery
Mainten- ance
Managing
Managing
Option 4
Option 2
Planning
Delivery
Maintenance
Planning
Delivery
Maintenance
Managing
Managing
The un-shaded areas are the capabilities that
SITA must plan to remove from the current
operations
26
Implications on the degree of change per
alternative business model role
Option 2
Option 3
Option 1
Option 4
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
Based on the evaluation, Option 4 was selected as
the preferred target business model
High
Low

Impact Scale
27
Financial Value proposition per business model
option
Options
Funding
Capital Expenditure
Working Capital
Options

• Grants from DPSA

1

• Minor capital expenditure

• Requirements are small

• Charge to customers based on
• Contract management fee
• Subscription fee for IT advice
• Outsourcing arrangements with vendors

2

• 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

• 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

3

• Charge to customers based on goods and services
  delivered

4

• Capex burdens placed on vendors through contracts
• Capex planning for network acquisition, upgrades
  and replacements

• Customer accounts managed on a 30 day cycle
• Vendor accounts managed on 30 day cycle

• Charge to customers based on
• Contract management fee
• Project management fee
• Subscription fee for IT advice
• Outsourcing arrangements with vendors

28
The Service delivery strategies and targets
together with the preferred role option will be
the primary influence on the SITA business model
Need to develop business skills that match the
dynamic and varied needs of departments
Organisation Structure and Competencies
Development of a citizen focused scorecard to
measure service delivery
Strategy
Performance Management
Development of partnership strategies around key
IT government interventions. (E.g. eGovernment)
Processes
Technology
Development of a voice, data and video network to
deliver education to previously disadvantaged
areas
Facilities
Facilitate the development of an integrated
government through process enhancements. (E.g
using eGovernment )
Development of a regional and centralised service
hubs to facilitate service delivery
29
The next session of the brief discusses the
outline of the migration strategy, migration plan
and key next steps
Diagnosis
Background and context
Business Model Options
Recommended Business Model
Model Development
Migration Strategy
Migration Plan
Migration
Key Next steps
30
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
Agree on set of drivers which will define the
scope and extent of further work required
Define the key change programs in the change
journey
Develop the high level migration plan
Validate the migration plan with key stakeholders
Prioritise the change programs
We are here
Define and communicate potential require- ments
to key stakeholders
Validate and confirm the migration plan
Complete the first draft of the detailed plan
Refine and add further detail to the plan
Align the migration plan with the SITA business
plans
Finalise planning and set up the implementation
capability
Implement the migration plan
To be finalised by SITA
?
Done
Not yet Done
31
Specific guidelines were then developed in order
to address the challenges resulting from the
migration issues
Outline of Issues
Migration guidelines

• 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

• 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

32
Certain assumptions were made in developing the
migration plan. The changes to these assumptions
may impact the implementation of the migration
plan

• 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.

33
Based on our experience, successful migration
plans are dependent on four key factors -
Navigation, Leadership, Ownership and Enablement

• 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

• 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

Leadership
Navigation

• 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

• 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

Enablement
Ownership
34
The migration strategy will have 8 major change
programs implemented according to two major themes
Wrap-up
Maintain Improve service levels while
transitioning
Preparation
Establish
Scale Up
Powerhouse
Foundation
35
Each phase in the migration strategy will result
in specific outputs
4. Scale Up
5. Powerhouse

• 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

• SITA is effectively running according to the
  preferred business model

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

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

1. Preparation for the Migration

• Plan for success
• Set up program management office
• Review Business plans

36
At each landmark, SITA will be enable to deliver
specific value based on services
- Capability creation at each milestone -
3. Establish
2. 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

37
Two broad approaches could be adopted for the
migration strategy
Fast track
Pros

• Rapid improvements in service delivery
• Build credibility quickly
• Create a sense of urgency

Wrap-up
Maintain Improve service levels while
transitioning
Concerns

• Impact of union involvement
• Time to build key competencies
• Time to obtain approval

Preparation
Establish
Scale Up
Powerhouse
Foundation
30 Days
3 months
8 months
12 months
15 months
0
Pros
Even paced

• Managed pace of change
• Extra time for transitioning and capability
  building exercise

Wrap-up
Maintain Improve service levels while
transitioning
Concerns

• Allows time for resistance to change
• Does not address urgency for service delivery
• Duplication of costs due to running old and new

Preparation
Establish
Scale Up
Powerhouse
Foundation
30 Days
12 months
18 months
24 months
30 months
0
38
The capability transition program is focused on
planning the migration of capabilities not
included in the recommended option
Key Issues that have to be addressed

• 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?

39
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

40
A partnership rather than a solo effort approach
with key stakeholders will position SITA to
overcome key change barriers and achieve the
strategic objectives
Critical factor 1 Partnership
Example of Key Area
Example of Key Partners

• National Treasury
• Department of Trade and Industry
• DPSA

Procurement

• Department of Communications
• Department of Trade and Industry
• Department of Arts, Culture, Science and
  Technology
• DPSA

E-Government
The exact details of the partnership will have to
be developed jointly with the relevant
departments within the context of the specific
project(s)

• 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

41
We recommend a two step process to dealing with
the founding departments
Critical factor 2 Improve performance and Review
SLA

• 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

42
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
Critical factor 3 Integration
The integration approach will influence

• 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

43
There are 2 broad integration approaches that
could be adopted - Lock stock and barrel
integration, Contract based integration
Critical factor 3 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

44
We recommend the Contract based integration
approach
Critical factor 3 Integration
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

45
SITA will have to re-organise itself in order
ensure that it achieves business results from the
change journey
Critical factor 4 Structure
Objectives

• 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

46
A preliminary structure was developed in order to
achieve the describe objectives
Critical factor 4 Structure
Board of Directors
MD
COO
Ring fenced Delivery Capabilities
Core Capabilities
Support Capabilities
47
We recommend that SITA completes the folloing key
next step to ensure success
Key Next Steps

• 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