1. IFMS Overview and Progress Report
Portfolio Committee on Public Service and Administration
4 March 2015

2. Overview What is IFMS? Why IFMS? Historic Overview
Project Stakeholders and Roles
Project Reviews and the change in the Solution Architecture
Current Status
Forward-looking Perspective

3. What is IFMS?
The Integrated Financial Management System (IFMS) programme is a joint initiative between National Treasury, DPSA and SITA to modernize and integrate the Public Service’s transversal information technology (IT) systems for the following domains:
Human resource management
Financial management (including payroll)
Supply chain management (including asset, inventory and procurement management)
Business intelligence
The current transversal systems in the Public Service (PERSAL, BAS, LOGIS, Vulindlela, etc) will be decommissioned as the IFMS is implemented.

4. Why IFMS? Practical To replace ageing technology.
To avoid increasing costs of maintaining obsolete systems.
Organisational
To facilitate ongoing financial, supply chain and human resource management improvements and reforms.
To process and compile data in ways that improve availability of quality information for planning, reporting and better decision making.
To offer the potential to take advantage of new features that today’s technology presents such as self service.
To take advantage of global lessons learned in the management of public resources.

5. WHAT ARE THE POSSIBILITIES? Using Technology for Strategic Ends
To allow officials to transact remotely – applying for leave directly via a web interface, obtaining reports from mobile devices, etc.
To contribute to more informed decision-making by presenting data from several perspectives.
Render business processes more efficient - for example, validation of information held centrally could be done electronically. Examples range from referencing of tax clearance certificates, confirming identity numbers with Home Affairs and determining the extent to which specific vendors engage with government.
Automation and standardization of business processes will increase business efficiency, reduce cost and improve data quality.

6. Timeline of Events ACTUAL SEQUENCE OF EVENTS 2002 2004 2007 2006 2005
ORIGINAL PROJECT SCHEDULE
2002
Budget Council approval to develop strategy to renew financial systems
2004
Phase out of FMS; URS and
MSP developed
2007
Cabinet informed of challenges and amended plans; acquisition/ development of modules commenced
Phase I
Requirements Specification
Phase II
Institutional capacity building
2006
Rescheduling of project plan due to institutional and project challenges experienced
2005
Cabinet approved IFMS with hybrid solution architecture (combination of COTS and bespoke modules); Moratorium on acquisition of IFMS type systems
ACTUAL SEQUENCE OF EVENTS

7. Timeline of Events (Cont.)
ORIGINAL PROJECT SCHEDULE
2010
Completion of Asset Management & Human Resource Management modules
2011
Completion of Procurement & Catalogue Management modules
2012
Development of Inventory module and Business Intelligence phase I (Vulindlela replacement) began
Phase III
Procurement and implementation
Full scale rollout
2013
Development of Financial Management module began
External reviews on IFMS commissioned
On Integration:
Partial integration with legacy systems: HRM with PERSAL and Procurement Management with BAS
Limited integration between IFMS modules
ACTUAL SEQUENCE OF EVENTS

8. Timeline of Events (Cont.)
2013
Cabinet approval to change IFMS architecture from hybrid approach to single COTS ERP
2014
Established PMO
RFP 1182 (COTS ERP software and lead site implementation services) published 20 March Objections received, RFP allowed to lapse.
RFP 1282 (software) published 28 Nov 2014
1 April 2017
Lead sites go live and commence national rollout
Turnaround for revised implementation approach
Preparation, systems transition management and institutional capacity building
2016
Conduct testing, compare parallel-system results, conclude analyses and undertake refinements where necessary
2015
RFP 1282 closed on 30 January 2015, bids evaluated, currently in process of obtaining approval to appoint successful bidder.
Next steps: Conclude software agreement, procure implementation services and hosting infrastructure, blueprinting, development of solution, commence lead-site implementations. Develop National rollout plan
ENVISAGED TIMEFRAMES

9. Key Project Stakeholders and Roles
National Treasury
Project Sponsor
Policy Ownership
Financial Management including Payroll
Supply Chain Management
Accounting Standards
Manage Corporate Reference Data for SCM, FIN
Manage legacy systems
DPSA
Policy Ownership
Human Resource Management
Manage Corporate Reference Data for Human Resource Management
SITA
As future PSI 1, develop overall integrated solution architecture
Acquire and integrate the components and services into an overall solution
Provide technical support over the solution lifecycle
Hosting Services
Ministerial Oversight Forum
IFMS Steering Committee (Steer Com)
IFMS SLA Committee (SLA Com)
IFMS PMO
IFMS Product Boards
IFMS Implementation Committees
Notes:
1 - SITA’s role as Prime Systems Integrator to develop integrated solution architecture will substantially change due to the COTS architecture requiring far less integration effort within the IFMS.
Hiding DPSA logo

10. Project Reviews
Three independent reviews on IFMS commissioned in 2013 – done by Ernest & Young, the World Bank and Gartner.
One of the elements that was considered during the reviews was the IFMS solution architecture. All the reviews essentially came to the same conclusion, namely that the hybrid solution architecture should be replaced by a solution architecture that consists exclusively of COTS modules.
Reasons for this conclusion:
On-going maintenance costs of the hybrid system would be prohibitive compared to those of a COTS-based solution.
The development and maintenance of bespoke modules for the IFMS require large numbers of highly skilled technical professionals, who would have to be retained throughout the project life-cycle.
In the case of a COTS solution, module integration and on-going updates are less complex, and unit costs and skills requirements are less onerous.

11. Benefits of Changing the Solution Architecture
Integration and software development platform challenges will be resolved.
Implementation of a comprehensive COTS solution will commence sooner and the overall implementation timeline will be delivered with greater confidence.
Business processes embedded in COTS solutions are based on international best practices and will assist in improving the management of resources in the Public Service.
Implementation of the COTS solution will enhance the development of skills in the ICT industry.

12. Cabinet Resolution of 2013
Based on the outcome of the independent reviews, a recommendation was submitted to Cabinet to change the IFMS solution architecture to a single, integrated COTS solution, to be implemented with limited customization (a so-called “vanilla” solution).
At its meeting on 20 November 2013 Cabinet approved the revised approach and solution architecture of the IFMS.

13. Present Status ...we are on track to deliver, but with narrow margin for delays
Solution architecture:
Work on the hybrid IFMS solution was paused soon after the Cabinet decision of November 2013.
Decision taken in consultation with IFMS Steering Committee to maintain current IFMS functionality at lead sites, until deployment of new modules.
Engagements with service providers on the “old IFMS” to review the impact of the change in the solution architecture on existing agreements, commenced.
A process has been initiated by the IFMS PMO to gather information on Public Service policies and procedures as well as information on the current IFMS blue prints. This information will be used to identify any policy or procedure that may have to be adapted for a “vanilla” COTS solution, and/or where the system has to be changed to accommodate the policy and procedure. Outcomes will be confirmed during blueprint workshops once implementation partners have been appointed.

14. Present Status (Contd. )
Present Status (Contd.) ...we are on track to deliver, but with narrow margin for delays
Procurement of Software and Licenses:
Initial RFP 1182/2013 (for software and lead site services) published during March 2014.
Objections were received from a potential bidder. Legal advice was subsequently obtained and while the advice was considered, the validity period of the RFP expired and it was agreed not to extend the validity period.
Lessons learned in the process were taken into account in determining the revised procurement approach.
IFMS Steering Committee considered and provided clear direction on the preferred approach which entails:
RFP 1 - Procure COTS ERP software and licences, including ongoing upgrades and support for this software.
RFP 2 – Procure services for initial design and configuration ( rollout template) and implementation at lead sites. Procure hosting infrastructure through separate RFP.
RFP3 – Procure services for national rollout.
Current key priority is to successfully complete the procurement of software within the 2014/15 financial year.
RFP 1 was published on 28 November 2014 (RFP 1282/2014) and it closed on 30 January Bid responses have been evaluated, currently in process of obtaining approval for appointment of successful bidder.
RFP 2 – for development of rollout template and implementation at lead sites, being developed. A separate RFP for hosting infrastructure is also being prepared. Intention is to publish these tenders early in 2015/16 financial year.

15. Present Status (Contd. )
Present Status (Contd.) ...we are on track to deliver, but with narrow margin for delays
PMO:
PMO established, governance charters being developed.
Panel of service providers with a range of specialised skills is in place to assist with governance and provide technical support where required.
Several functions within the PMO are being capacitated through appointments from panel of service providers (programme management, strategic systems planning, organisational change management and communications, probity services).
Communication
IFMS website launched in October
Communications Committee established.

16. Present Status (Contd. )
Present Status (Contd.) ...we are on track to deliver, but with narrow margin for delays
Departmental readiness
The IFMS team has started with initial readiness reviews in some provinces and national departments to assess the departments’ technical and organisational capacity to migrate to the new solution, and to initiate any enhancements that may be required.
Detailed readiness surveys to be conducted in all departments to assist departments to prepare for IFMS implementation.
Cost implications, hardware requirements and other preparations that may be required for implementation of IFMS will be communicated to departments as soon as possible.

17. Interim Systems Considerations
Moratorium on acquisition of systems
Moratorium on acquisition of IFMS related systems agreed by Cabinet in 2005 still in force.
Departments may approach National Treasury for possible deviations.
National Treasury agreed to allow interim implementation of LOGIS by any department.
The current IFMS modules in operation (HRM, PMM, Item and Service Master and Catalogue Management) will continue to be supported where lead site (pilot) departments request that these systems be maintained.
Legacy systems (PERSAL, BAS, etc) will be maintained and enhanced where considered critical for purposes of business continuity until the new IFMS solution has been acquired and implemented. .

18. Next Steps The high level planned next steps over the medium term are:
2014/15: Award software RFP (1282 of 2014).
2015/16: Conclude software agreement, procure implementation services and hosting infrastructure, blueprinting, development of solution, commence lead-site implementations.
2016/17: Conduct testing, compare parallel-system results, conclude analyses and undertake refinements where necessary.
1 April 2017: Lead sites go live and commence with national rollout to the rest of the Public Service. .

19. Questions and discussions
Thank you
Questions and discussions