Information%20Brief

1
Information Brief

• To the
• Joint Standing Committee
• On Defence
• 15 June 2007

Peter Pedlar Acting CEO Tau Mashigo Head
Business Performance Femke Pienaar Head Client
Business Units Cisco van Schaik GM DOD business
Unit Web www.sita.co.za
2
Agenda
1. SITA Mandate Services
2. SITA Financials
3. SITA transformation
4. SITA Strategic Objectives
5. SITA / DOD Relations
6. DOD ICT Spend / Budget
7. DEIS Master Plan
3
SITA MANDATE SERVICES
4
Mandate and Funding

• SITA is an enacted company that derives its
  mandate from
• SITA Act 88/1998 as amended 2002.
• SITA Act 88/1998 General Regulation NR 904,
  DPSA, Sept 2005.
• Objective
• To improve service delivery to the public and to
  promote the efficiency of departments and public
  bodies through the use of ICT and related
  services in a secure environment.
• Funding Model
• SITA Pty (Ltd) is a Schedule 3a Public Company.
• Financially self sustaining through Products and
  Services.

5
Government IT House of Values
6
Services to Government
7
SITA FINANCIALS
8
Consolidated Statement of Financial Performance
9
Revenue per Business Unit (06/07)
Central Region 119,160,399
Coastal Region 651,140,081
Northern Region 429,354,617
National Departments 1,056,991,765
SAPS 539,157,035
DOD 539,923,992
10
SITA TRANSFORMATION
11
SITA Transformation

• Reasons for Transformation
• SITA Image, Customer Perception, Employee Morale
• Transformation A Journey not a Destination
• Approach
• Arrest Normalise The Situation
• Rationalise For Optimum Performance
• Strategic Imperatives
• Radically improve service delivery to the
  Citizens
• Prioritise Citizen-centric projects
• Drive to the best demonstrated practice in people
  management and leadership
• Overhaul internal and external communication to
  improve transparency, visibility and image
• Build an appropriate organisation structure and
  team to achieve strategic objectives
• Maintain financial sustainability.

12
Performance to Date

• Service
• CSI FY04/5 (47) FY06/7 (62)
• Procurement
• Tender Days FY04/5 (242) FY06/07 (76)
• Finance
• Revenue FY05/6 (R2.9Bn) FY06/7P (R3.3Bn)
• PBT FY05/6 (3.9) FY06/7 P(6)
• GovTech
• Public Sector ICT Conference
• Thought Leadership

13
Transformation status

• Procurement Services
• SPPP updated, tender-award authority restored to
  Accounting Officers/DGs incorporates SCM
  procedures processes as per NT Regulations.
• Management Structure reconstituted cleaned up
  built-in tender-results review mechanism no
  proven corruption case, fewer complaints.
• Tender turnaround times reduced from over 240 to
  76 days.
• Significant cost reductions for government
  realized 40 reduction on some SMS equipment.
• Share of BEE procurement revenue up to 60.
• Corporate Governance
• Continuous efforts made to adhere to PFMA
  regulations in all mgt spheres with strong Board
  oversight.
• Initial lapses in mgt responses to audit queries
  attended to.
• Corporate governance made a performance
  assessment factor.

14
SITA Structure
15
SITA Employment Equity

• Notes
• Overall the Company performed well with regards
  to the achievement towards the set Employment
  Equity targets in the first year (06/07), however
  with the commencement of the 2nd year (07/08),
  Management must make rational decisions when
  appointments are made in the future.
• When analysing the progress made to date with
  regards to the attainment of the set Employment
  Equity targets on each occupational job level,
  there are, however, still concerns that the
  Company is lagging behind with regards to race
  representation on specialist and lower management
  job levels, as well as gender (Female) on
  advanced specialist and senior management job
  levels. To this end the Company will implement
  the integrated employment equity strategy which
  will address these areas of concern.
• The overall IT skills shortage in the market,
  combined with a very high demand for EE
  candidates, will remain a serious constraint in
  the short and medium term.

16
DOD Business Unit EE Statistics

• Notes
• The DODs Unique application portfolio requires
  embedded DOD knowledge critical for resources
  that are difficult to source. The ring fenced
  Infrastructure (Network Data centers), current
  lagging technology baseline also serves as a
  constraint to attract resources
• The overall IT skills shortage in the market,
  combined with a very high demand for EE
  candidates, will remain a serious constraint in
  the short and medium term.

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STRATEGIC OBJECTIVES
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Strategic Focus

• Reposition for Public Sector ICT Leadership
• Accelerate the Implementation of e-Government.
• Provide Thought Leadership.
• Develop Appropriate Partnerships and Alliances.
• Manage Operations
• Radically Improve Customer Experience of SITA.
• Focus on Operational Efficiency and Effectiveness.

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Trends and Drivers

• Communication Convergence
• Service Oriented Architecture
• eGovernment Maturity
• Identity Management
• Open Source Movement
• Strategic Out Tasking
• Consolidation and Partnerships

20
Initiatives

• Destination to Success - Change Management
• Service Improvement Programme
• e-Government Revitalisation
• Municipality Blueprint
• Integrated Financial Management System
• New Generation Network Platform
• OSS Project Management Office
• Industry Wide Skills Development

21
The Future SITA

• Integrated Solution Service Delivery (Client
  Centric)
• Skills Development
• Black Economic Empowerment
• Intellectual Property
• Strategic Partnering
• Facilitate Government-wide Architecture

22
Future Role of SITA
2010
23
DOD / SITA Relations
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SITA / DOD RELATIONSStrategic Alignment
STRATEGIC SYNERGY
1999 SITA Creation Buss Agreement Incorp
Agreement
CMIS D Convergence Sec Def C SANDF Armscor
Role Defense Review update DOD Strat Guidelines
Amendment Act SITA Regulations SITA Transf
2010 Operating Model / Struct IFMS

• Strategic Resonance

Technology Convergence , Net Centric
Warfare Other Depts, GITOC, Industry Silver
Bullets
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SITA / DOD Regulatory Bodies
Requirements
Solutions
Executive Forums
Exco, Divcom CBU Forums
DEIS Board
Business Management Level
SITA / DOD Board
SLA CCB
IS Planning Forum
Steercoms
Functional Level
SLA Management
CMIS Ops Forum
Serv Del Forums
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SITA / DOD Engagement Model
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Relationship summary

• Formal engagement channels that are duly
  constituted.
• Strong contract management (SLA)
• Excellent financial controls and payment record
  (debtor)
• Strategic partner/relationship
• Embedded knowledge of DOD IT business.
• Quality Embedded System approach (ISO9000
  Certified)
• SITAs 2nd largest client.

28
DOD ICT Expenditure (SITA)
29
DOD SLA Values 2007/08
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DOD Some statistics

• Approximately 500 (120 major) Information Systems
  (excluding embedded C2 information systems)
• used by over 720 organisations
• supporting over 30 000 business military
  users
• in Land, Maritime, Air Information operations
  
• that are deployed nationally internationally.

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DOD Application Portfolio
41
25
6
23
95
8
3
6
18
1
4
1
4
1
1
28
1
1
3
80
12
6
3
3
Current Information Systems in use in the DOD
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DOD Project Portfolio (07/08)
Environment Project Budget No of Projects
HR R 3.7m 4
FIN R 3.3m 2
LOG R 20.3 2
Health R 9.4m 6
Corporate and Unique R 19.2m 6
Infrastructure R 30m 16
Architecture R 7m 2
Totals R 92.9m 40
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SITA DOD Business Unit
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DEFENCE ENTERPRISE INFORMATION SYSTEM MASTER PLAN
(DEIS MP)
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Defence Enterprise Information System Master Plan
(DEIS MP)

• The purpose of the DEIS Master Plan is to provide
  an integrated ICS Departmental view and a
  realistic single execution mechanism of all ICSS
  initiatives, programmes, projects and
  requirements, in terms of both the investment and
  maintenance portfolios.

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Defence Enterprise Architecture
ARMY, NAVY, SAAF, SAMHS, LOG, FIN, HR, etc
Log, Fin, Pers, (IFMS) Corp
IS / ICT
Network Data Centres (static)
Defence Enterprise Information Systems Plan
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Business Drivers for the DEIS Master Plan
Transformation of Business Objective into ICS
solutions
BUSINESS
DEIS SD
DEIS MP
DOD Information Strategy
Defence Enterprise Architecture
Defence Management Applications
Business Converted into Info Req
Defence Functional Applications
ICS Enablement of Info Req
BUSINESS DRIVERS
ICS Business drives ICS design drivers
Defence Common Applications
Defence Information and Communication Infrastructu
re
DEIS Framework
Defence Data/information Resources
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Resolving The Primary Problem
Fragmented Paradigm
CMIS IT
Diverse State Initiatives
CMIS Tels
IW
Service-unique IT
Service-Unique Tels
Documentation Services

• SITA ARMSCOR as primary enablers

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Application Software Data projects

• Defence Management Applications
• Command and Control Apps 5
• Planning Control (Defence Admin) Apps 51
• Military Intelligence Apps 7
• Business Intelligence Apps 28
• Functional Applications
• Resource Management Apps 47
• E-Learning Apps 17
• Military Health Apps 8
• Organisational Design Apps 4
• Support Apps 7
• Common Applications
• Messaging Apps 23
• Electronic Content Management Apps 44
• Data projects 23

40
Infrastructure Projects

• Telecommunications 87
• Computing Platforms, Peripheral and Sensors 27
• Database Management 6
• System Collaboration Services 3
• Application Delivery Services and Portal 20
• Info and Comms Security System 17
• Infrastructure Element Management 13

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(No Transcript)
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Funding Requirement for DEIS MP
NOTE This excludes Item 10 Funds
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Benefits of DEIS MP

• Integrated ICS Departmental view and a realistic
  single execution mechanism of all Information and
  Communication Systems
• Funding will be managed corporately
• Mission critical capabilities of the DOD have
  adequate ICS support and enablers
• Mission-critical information for decision making
  is available
• Compliance to the DOD Regulatory Framework and
  National Legislation
• Secure Information and Communication Systems

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Conclusions (DEIS MP)

• Priorities are determined by the DOD as guided by
  the DEIS Master Plan
• All acquisition and partnerships will follow the
  transparent procurement processes.
• This event is the start of a long process,
  pursuing a cooperative engagement of 4 parties
  (DOD, SITA, Armscor, Industry).

45
Thank You Q A
Peter Pedlar Acting CEO Cel no 083 450 6596 (012)
482 3321 Tau Mashigo Head Business
Performance Femke Pienaar Head Client Business
Units Cisco van Schaik GM DOD business
Unit Web www.sita.co.za
A man who does not think and plan long ahead
will find trouble right at his door. -
Confucius