1. SITA PROGRESS REPORT TO THE PORTFOLIO COMMITTEE ON POLICE Acting Chairperson of Board Febe Potgieter- Gqubule 20 September 2011

2. Contents 1.2010- 2014 SEVEN OUTCOMES OF THE TURN-AROUND STRATEGY 2.PERFORMANCE METRICS IN RAG 3.IMPROVEMENT IN THE QUALITY OF SERVICE - SCM 4.SAPS SPECIFIC SCM IMPACTS 5.IMPROVEMENT IN THE QUALITY OF SERVICE – Proposals and SLA 6.QUALITY OF SERVICE INTERVENTIONS 7.PROFICIENT LEAD AGENCY 8.E- GOVERNMENT 9.SAPS SPECIFI E-GOVERNMENT INITIATIVES 10.IFMS PROJECT 2

3. Contents (cont) 11.ROLE OF SAPS wrt IFMS 12.ICT SUPPLY CHAIN MANAGEMENT 13.SAPS SPECIFIC ICT SCM BENEFITS 14.PRICING 15.STAKEHOLDER RELATIONSHIP MANAGEMENT 16.OUTCOME OF THE SAPS-SITA JOINT STRATEGIC PLANNING SESSION 17.PROGRESS ON THE IMPLEMENTATION OF THE JOINT SESSION RESOLUTION 18.EXPENDITURE AND PROGRESS OF NATIONAL NETWORK UPGRADE PROGRAMME 19.EXPENDITURE AND PROGRESS ON ICDMS 20.PRICING FOR SUPPORT SERVICES 21.QUESTIONS 3

4. 2010- 2014 SEVEN OUTCOMES OF THE TURN-AROUND STRATEGY 1. Quality ICT service delivery to the public sector 2. Proficient lead agency in the public sector ICT 3. Integrated public sector ICT Supply Chain Management 4. Competitive pricing and financial sustainability 5. Effective ICT Regulator 6. Effective governance and monitoring 7. Employer of choice 4

5. PERFORMANCE METRICS IN RAG ColourDescriptionSymbol RedUnsatisfactory performance AmberRoom for improvement GreenSatisfactory performance 5

6. IMPROVEMENT IN THE QUALITY OF SERVICE INITIATIVESTATUS AS PRIOR TAS YEAR 1 (2010/11) TARGETS YEAR 2 (2011/12) TARGETS PROGRESS TO DATE Non- Compliance with SCM Processes Non-rotation of Evaluation teams Rotation of members with of evaluation teams & representation from client Departments. Shift from procurement to SCM processes Establish SCM Committee system - Bid Evaluation Committee with Subject Matter & Technical Expertise SCM Policy due for approval with clarity on roles, responsibilities and requirements specifications for bid committees Non-disclosure of business interests Compulsory disclosure of interests by members of evaluation & adjudication panels Internal controls & procedures defined SCM Procedure Manual in place 6

7. IMPROVEMENT IN THE QUALITY OF SERVICE cont. INITIATIVESTATUS AS PRIOR TAS YEAR 1 (2010/11) TARGETS YEAR 2 (2011/12) TARGETS PROGRESS TO DATE SCM Turn- Around times (working days) Requests for Bids (RFBs) = 280 days RFBs = 208 days finalisation = 100 days RFBs = 78 days from close tender RFBs (2011) = 119 days Backlog RFBs= 260 days Closed Bids (Preferred List) Request for Quotes (RFQs) = 190 days RFQs = 145 daysPreferred List RFQs = 100 days Preferred List RFQs = 94.9 days Backlog RFQs = Ad-hoc RFQs = 100 days Ad-hoc RFQs = 78 days Ad-hoc RFQs = 30 days Ad-hoc RFQs = 18. 2 days Contract finalisation = 2 years Contract finalisation = 120 days Contract finalisation = 60 days Contract finalisation = 83 days 7

8. SAPS SPECIFIC SCM IMPACTS INITIATIVEYEAR 1 (2010/11) TARGETS YEAR 2 (2011/12) TARGETS PROGRESS TO DATE SCM Turn- Around times (working days) RFBs = 74 daysRFBs = 78 days from close tender RFBs (2011) = none requested Backlog RFBs= 432 days Non RequestedPreferred List RFQs = 100 days None requested RFQs = 81 daysRFQs = 30 daysNone Requested Contract finalisation = 51 days Contract finalisation = 60 days Contract finalisation = 57 days 8

9. IMPROVEMENT IN THE QUALITY OF SERVICE (QoS) 9 INITIATIVESTATUS AS PRIOR TAS YEAR 1 (2010/11) TARGETS YEAR 2 (2011/12) TARGETS PROGRESS TO DATE Responses to Request for Proposals 06 – 07 months03 months14 days from receipt of request 25 days Guarantee Service Levels on across the SITA services Guaranteed 98% service availability on hosting and network services Service availability for Hosting, Network & Service management centre (SMC) = 98% 98% Service availability on hosting, network & SMC Hosting = 100% Networks =99.80% SMC = 99.9%

10. SAPS SPECIFIC QoS IMPACTS 10 INITIATIVESTATUS AS PRIOR TAS YEAR 1 (2010/11) TARGETS YEAR 2 (2011/12) TARGETS PROGRESS TO DATE Responses to Request for Proposals 3 months14 days from receipt of request 1 month Guarantee Service Levels on across the SITA services Service availability for Hosting, Network & Service management centre (SMC/ARS) = 98% 98% Service availability on hosting, network & SMC/ARS Hosting = 99.9% Networks =99.95% ARS = 83%

11. QUALITY OF SERVICE INTERVENTIONS Finalising the SITA Service Strategy with performance metrics in all services within the SITA service catalogue To improve Contract Management –Instituted Report on contract management to the Procurement Sub-Committee of the Board 11

12. PROFICIENT LEAD AGENCY (VALUE ADD TO GOVT IT) Established a function dedicated to government solutions under the leadership of an Executive Approved that 2% of Operational Expenditure be dedicated to innovation on government solutions Commenced the process to partner industry on innovation, e.g. Smart government solutions inclusive of war rooms, smart cities & e- government 12

13. E-Government Broad definition of e-government: The use of information technology to enable government to: –Perform efficiently (government to government –G2G- services) –Render services to citizens at their convenience (government to citizens -G2C- and government to business –G2C) G2G initiatives include: –Integrated Financial Management System –System to assist with the disclosure and verification of business interests by members of the Senior Management Staff of government : The Minister for the Public Service and Administration will perform a test run of this system during the 2011 Public Service week SITA has identified 10 key government services to be made immediately available online to citizens including business upon Cabinet approval Together with Home Affairs, SITA is offering connectivity for the banks to verify the identities of bank clients through the National Population Register (NPR) that is hosted by SITA 13

14. SAPS SPECIFIC E-GOV INITIATIVES INITIATIVEDescriptionYEAR 2 (2011/12) TARGETS PROGRESS TO DATE eForms as part of ICDMS Project Provides for an electronic statement which can be submitted on line. end Dec 2011for completion 60% complete in terms of URS 14

15. IFMS Project September 2005, Cabinet mandated National Treasury, DPSA and SITA to proceed with the IFMS project with the following objectives: –Integrate and renew Financial, Supply Chain and Human Resource Management systems used by National and Provincial Departments –SITA will use the IFMS as a catalyst to become the Prime Systems Integrator (PSI) for government –PSI Benefits for government Improve quality of service clients Reduce the cost of IT to government through partnership with industry in the development and acquisition of government IT goods and services Eliminate duplication of information systems and thus reduce wastage of resources Lower the prices of IT services 15

16. Product Scope 16 Health and Safety Management Education Training Development Labour Relations HR Planning Organization Management Recruitment Management Employee Movement Performance Management HR Reporting Career Management Remuneration Management Termination of Service HR Administration Catalogue Management Procurement Management Inventory Management (not available now) Asset Management MTEF Budget Preparation Departmental Financial Management Treasury Financial Management Payroll Management Reporting Analysis Dashboards Data mining Supply Chain Management Human Resource Management Financial Management Business Intelligence

17. Product Status 17 Supply Chain Management Human Resource Management Financial Management Business Intelligence  Core SCM Asset Management, Item Master, Catalogue Mgt, Procurement Mgt, and Integration BAS  None  HRM Generic Template Delivered To Date Future  Inventory Management  Enterprise Asset Management  Full SCM Integration Capability  Service Delivery Management  Potential Customisation / Configuration at future sites  Fin Core Product Development In Process  Integration to Master Data  BI Legacy Replacement  Payroll Product Development

18. Lead Site Implementation Status 18 Supply Chain Management Human Resource Management  National Treasury  Asset Management, Catalogue Management, IT Master, Basic Inventory, Procurement Management, and BAS Integration (SCM Core)  Asset Management (Limpopo)  Provincial Treasury, Local Govt and Housing, Roads and Transport and Agriculture  Department of Public Service and Administration Implemented  Free State Department of Education In process  SCM Core  Department of Defense  Limpopo Dept of Health & Social Development

19. ROLE OF SAPS wrt IFMS SAPS is a member of the IFMS Project Steering Committee Participate in all IFMS Business Forums and provide inputs towards IFMS user requirements All the SAPS ERP-related solutions have been assessed in terms of functionality and business rules In 2005, SAPS indicated that they will be the last Department to roll-out IFMS 19

20. ICT SUPPLY CHAIN MANAGEMENT Transforming the organisation from Procurement function to SCM Commenced the implementation of the SITA Industry Partnership model, we have engaged with OEMs on: –Telecommunications –Network Communications devices –Desktop and peripheral devices such as printers, scanners etc –Storage (Data Centres) –Software development Objectives of the industry partnership –Development of the local & indigenous IT industry –Improve the quality of service through government friendly product support and maintenance 20

21. ICT SUPPLY CHAIN MANAGEMENT cont. Objectives of the industry partnership cont. –Contribute to the growth of innovative IT solutions for government –Contribute to the IT skills development within government and country in general –Reduce the cost of government business through IT –BEE and SMME development through fostering participation friendly OEM resellers or partners accreditation terms/ requirements –Lower prices of IT goods through bulk purchasing and preferred discounts for government The partnership with industry to be based on risk and revenue sharing models 21

22. SAPS SPECIFIC ICT SCM BENEFITS Benefits from cloud computing (Data centres & storage) Lower prices for the War Room installation – better prices & advanced technology options (Network communication devices) Lower cost for the National Network Upgrade Programme (Network communication devices) More bandwidth, disaster recovery and redundancy on the government network ( dependent on SAPS on SITA Next-Generation Network) Reduce the cost of Voice Communication through VoIP (dependent on SAPS on SITA NGN) 22

23. Pricing The Cost and Pricing model is due to be finalised with the following outlook: – Significant reduction in prices of SITA services –Guarantee continuous reduction of prices in certain commodities of services Lower cost through industry partnership Infrastructure investment –There were no investment in the IT infrastructure of SITA in the last 2 years due to a lack of infrastructure strategy –The IT Infrastructure Strategy and plan has been finalised to support the Capital Expenditure over the next 5 years –The infrastructure investment will be done through partnership with industry with the following objectives: o Lower the cost of technology services o Support the enablement of an electronic government (e- government) o Benefit from continuous innovation 23

24. STAKEHOLDER RELATIONSHIP MANAGEMENT SITA was characterised by non-responsiveness to stakeholders We have since embarked on engagements with stakeholders through –Joint Strategic Planning sessions with clients such as SAPS, DOD, DOJ & Depts of Education –Provincial visits and we have already visited WC, EC, KZN, Limpopo, N Cape, NW & FS –Re-establishing good working relations with GITOC –Repositioning GOVTECH as an engagement platform with our stakeholders to advance the government IT Agenda The engagements with stakeholders have resulted in a mechanism for stakeholder performance feedback and review of our provincial distribution model 24

25. OUTCOMES OF THE SAPS –SITA JOINT STRATEGIC PLANNING SESSION BA Agreement negotiations to be finalised by end Sept 2011 SLA negotiations to be finalised by end Sept 2011 All services provided to SAPS to be converted to “Service-based” as opposed to “Body-shopping” SAPS to provide User requirements for ICDMS. SITA to provide Proposal for NGN and VoIP 25

26. PROGRESS ON THE IMPLEMENTATION OF THE JOINT SESSION RESOLUTIONS BA discussions have commenced and due to complete end September as planned 5 x SLAs have been negotiated and concluded at a functional level 2 x New SLAs requested by SAPS and being drafted for negotiations (SCM & IT Security) Proposals for the service conversion underway ICDMS demo was presented to SAPS and the ICDMS backbone to complete in December 2011 Additional ICDMS User Requirements to be submitted by SAPS  e-Docket (scanning solution) was developed and deployed at 320 police stations in 8 provinces except for the Eastern Cape.  Approximately 1,650 mil dockets having been scanned as at 5th Sept 2011 NGN and VoIP proposals submitted to SAPS

27. EXPENDITURE & PROGRESS OF NATIONAL NETWORK UPGRADE PROGRAMME 27 YEARSAPS Tasked AmountsSITA Contracted Switching Centres Sites Upgrades 2005 to 2008R325,1m26 386 2008/2009R248.3m272 2009/2010R518.5m388 2010/2011R460.0m314 (Telkom line outstanding in certain areas) 2011/2012Not yet tasked TOTALR1,551.8m261,360

28. EXPENDITURE & PROGRESS ON ICDMS 28 YEARSAPS Tasked AmountsActual Expenditure eDocket Delivered as part of the Applications and Maintenance SLA. Excl network, hardware and storage component costs R9.9m 2009/10R 25,2mR 19.9m 2010/11R 26,8mR 19.2m 2011/12R 25,3m 2012/13R 27,0m 2013/14R 28,9m TOTAL R 133,3mR 49.0m

29. Pricing for Support Services 29 Recurring ICT Support Services NOTE:- Monthly invoice values excludes the once off licensing fees -SITA requested Interim Orders based on the SITA proposed pricing

30. Thank you Questions 30