JORDAN WATER SECTOR – IT MASTER PLAN ITMP - VOLUME I.pdf · 2010-04-19 · JORDAN WATER SECTOR – IT MASTER PLAN FINAL REPORT TO USAID – AUGUST 2006 VOLUME I – RECOMMENDATIONS

JORDAN WATER SECTOR – IT MASTER PLAN FINAL REPORT TO USAID – AUGUST 2006 VOLUME I – RECOMMENDATIONS

August 31, 2006 This publication was produced for review by the United States Agency for International Development. It was prepared by Emerging Markets Group, Ltd.

JORDAN WATER SECTOR – IT MASTER PLAN FINAL REPORT TO USAID - AUGUST 2006 VOLUME I - RECOMMENDATIONS

Submitted by: Emerging Markets Group, Ltd.

Submitted to: USAID Jordan

Contract No.: AFP-I-00-03-00029-00, Task Order 518

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government

Jordan Water Sector – IT Master Plan i Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

ACKNOWLEDGEMENTS

Emerging Markets Group would like to acknowledge and thank the many staff from across the Jordan water sector for their commitment to, and active participation in, the IT Master Plan process. Particular thanks are due to Eng. Mohammad Bany Mustafa for his very effective coordination of the ITMP Steering Committee, his attendance at almost all the formal Working Group meetings, and his leadership of his own Collaboration Working Group. Special thanks are also due to Eng. Khaldoun Khashman for his personal championing of the ITMP initiative, and for his insistence on very active participation of his staff in all aspects of the plan’s development. MWI, LEMA and JVA (thanks to the good efforts of Naser Bataineh) similarly deserve recognition for their strong commitment to the process. AWC’s input, while limited by logistical challenges, was extremely valuable to both the IT Organization and CIS/Billing Working Groups.

Thanks are also due to the other members of the Steering Committee who proactively led or participated in their own Working Groups. Almost everyone distinguished themselves in some way. Particular thanks go to Eng. Youssef Hassan whose experience and wisdom guided our EIS Working Group’s development of a working concept. Eng. Hassan co-led the Group with Eng. Suzan Taha whose leadership, deep knowledge of the National Water Master Plan, and repeated and valuable challenge to the project in regard to other donor initiatives, was instrumental to the ITMP’s success. Eng. Isam Bataineh led a strong team of individuals in the CIS/Billing Group who distinguished themselves highly at the start of the process, before being diverted (as talent often is) to cope with other pressing issues in the same subject area. Eng. Ahmad Abu-Sheikah and Eng. Mahmoud Hakouz both stepped in to lead their Groups at a comparatively late stage and successfully achieved a strong recovery. Mahmoud Shloul should also be recognized for his very strong and effective leadership of the Infrastructure Group.

The personal commitment of many of the Working Group members to the process should also be recognized. They are too numerous in number to guarantee that everyone is properly recognized but the particular efforts of Ra’ed Hijazi, Jamal Hijazi, Aysha Abu Allan, Ahmad Abu-Saoud, Tamer Al-Assad, Nadia Al’fari, Reema Al-Hamouri, Bassim Al-Khatib, Ibtisam Al-Saleh, Eman Fakhoury, Jiryes Ghandoor, Fayez Habarneh, Khalil Jammain, Yasser Jariri, Ghalia Kanznakatbi, Feda Muanes, Nidal Saliba, and Majed Qutaishat come to mind. If particular high-performing individuals have been left out, as some will have been, the fault is entirely the Consultant’s.

From outside, we are especially thankful also for the insightful and very supportive input of Ms. Ruba Kajo of the e-Government Unit at the Ministry of Information Technology and Communications.

We thank also the many, many staff and consultants across the sector who endured our interviews and questions throughout the process – they really are too numerous to even begin mentioning.

On a lighter note, the vocal contributions of Eng. Bany Mustafa and Mahmoud Shloul were always entertaining – as were the many jokes and antics of Eng. Khashman, including his impromptu and horribly real impressions of almost the whole ITMP team at lunch in Aqaba.

It is also very important to recognize the deep personal commitment and strong support of Ms. Obaida Hammash, our USAID Cognizant Technical Officer; and of Mr. James Franckiewicz who originally conceived of the project and supported us so well until he departed Jordan in mid-June for a new assignment. Without the dedication of these two individuals the collaborative process used to develop the ITMP would not have happened, and the sector’s ownership of the product would be much less.

Last but certainly not least, special thanks are due to the Consultant team – Hussam Abu Hartheih, Ramez Mallouk, Sanabel El-Rayes of Deloitte & Touche (M.E.) Jordan and Mohammed Musleh of RazorView for their unwavering personal commitment to their Groups, their constructive challenges to the Chief of Party, and their willingness to always go the extra several kilometers. They were so ably supported by Hala Bayyat who not only was always there to catch the dropped ball, but also constantly steered the team so gently in the right direction.

Jordan Water Sector – IT Master Plan ii Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

LIST OF ACRONYMS

ALM Application Lifecycle Management AM/MM Asset Management / Maintenance Management ASG Assistant Secretary General ASP Application Service Provider ATM Automated Teller Machine AWC Aqaba Water Company BCP Business Continuity Planning BI Business Intelligence BMFO Bulk Meter Flow and Operations BoB Best of Breed CCTA Central Computer and Telecommunications Agency CIO Chief Information Officer CIS Customer Information System COTR Contracting Officers Technical Representative CST Core Support Team CTO Cognizant Technical Officer DBA Database Administrator DCMMS Dorsch Consult Maintenance Management System DSS Decision Support System EAM Enterprise Asset Management EIS Executive Information System EMG Emerging Markets Group ERP Enterprise Resource Planning ESRI The Economic & Social Research Institute FAS Financial Accounting System GIS Geographical Information Systems GL General Ledger GMED Groundwater Monitoring and Enforcement Directorate GoJ Government of Jordan GRP Government Resource Planning GSM Global System for Mobile GTZ German Technical Cooperation GUI Graphical User Interface HQIT Head Quarter Information Technology HRIS Human Resource Information Systems HRM Human Resources Management HRMS Human Resources Management Systems ICT Information and Communications Technology IM Information Management IMT Infrastructure Management Tools INV Inventory ISO International Standards Organization ISP Internet Service Provider IT Information Technology

Jordan Water Sector – IT Master Plan iii Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

ITG Integrated Technology Group ITIL Information Technology Infrastructure Library ITMP IT Master Plan KPIs Key Performance Indicators LAN Local Area Network MIS Management Information Systems MoF Ministry of Finance MoPIC Ministry of Planning and International Cooperation MoICT Ministry of Information & Communication Technology MS Microsoft MWI Ministry of Water & Irrigation NGWA Northern Governorate Water Authority NRW Non Revenue Water NWMP National Water Master Plan O&M Operations & Maintenance ODC Other Direct Cost OE Operating Entity OGC Office of Government Commerce PMBK Project Management Body of Knowledge PMI Project Management Institute PMO Program Management Office PMU Project Management Unit PO Purchase Order PVC permanent virtual circuit QA Quality Assurance RFI Request for Information RFID Radiofrequency Identification Device RFP Request for Proposal RJGC Royal Jordanian Geographical Center ROI Return on Investment SCADA Supervisory Control And Data Acquisition SDLC System Development Life Cycle SEGIR Support for Economic Growth and Institutional Reform SG Secretary General SLA Service Level Agreement UFW Unaccounted for Water USAID United States Agency for International Development VoIP Voice over Internet Protocol WAJ Water Authority of Jordan WAN Wide Area Network WIS Water Information System WMIS Water Management Information System

Jordan Water Sector – IT Master Plan iv Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY....................................................................................................................... 1 2. BACKGROUND AND INTRODUCTION ............................................................................................. 4 3. STRUCTURE OF THIS REPORT.......................................................................................................... 5 4. RATIONALE FOR DEVELOPING AN ITMP ..................................................................................... 6

4.1. INITIAL RATIONALE .......................................................................................................................... 6 4.2. SUPPORT FOR THIS RATIONALE FROM “AS-IS” ASSESSMENT ............................................................ 6 4.3. OTHER OBSERVATIONS AND LEARNINGS .......................................................................................... 8

5. GOALS AND OBJECTIVES OF THE ITMP........................................................................................ 9 5.1. GOAL ................................................................................................................................................ 9 5.2. OBJECTIVES ...................................................................................................................................... 9 5.3. IMPORTANT QUALIFIERS ................................................................................................................. 10

6. APPROACH TO DEVELOPING THE ITMP..................................................................................... 11 6.1. STRUCTURED PROCESS.................................................................................................................... 11 6.2. SOLUTION OPTIONS......................................................................................................................... 12

6.2.1. In-House Development............................................................................................................ 13 6.2.2. Emergence of Best of Breed Systems ...................................................................................... 13 6.2.3. Local Market Solutions ........................................................................................................... 13 6.2.4. Enterprise Resource Planning Systems................................................................................... 13 6.2.5. Assisted In-House Development.............................................................................................. 14 6.2.6. Application Service Providers (ASPs) .................................................................................... 16 6.2.7. Open Source Platforms ........................................................................................................... 16 6.2.8. The Situation Today in the Utility Sector................................................................................ 16

6.3. JORDANIAN WATER SECTOR IT CONCERNS..................................................................................... 17 6.4. IMPORTANCE OF BENEFITS AND BUSINESS CASES ............................................................................ 18

7. PROPOSED IMPLEMENTATION APPROACH FOR THE ITMP ................................................ 19 7.1. OPTIONS FOR IMPLEMENTATION ..................................................................................................... 19 7.2. ROLE OF HQIT IN IMPLEMENTATION .............................................................................................. 19 7.3. SHORT TERM ACTIONS NEEDED...................................................................................................... 20

8. DESCRIPTION OF COMPONENTS................................................................................................... 20 8.1. HEADQUARTERS IT ORGANIZATION (HQIT)................................................................................... 20

8.1.1. Executive Summary of Workgroup Recommendations............................................................ 20 8.1.2. Current Deployment of IT Resources in Headquarters Organizations................................... 21 8.1.3. The Evolving Relationship Between Headquarters and Operating Utilities IT Functions ..... 22 8.1.4. The Opportunity for Improvement .......................................................................................... 23 8.1.5. Options for Reorganizing Headquarters Organizations IT .................................................... 24 8.1.6. Recommendations ................................................................................................................... 24 8.1.7. Roles and Responsibilities of HQIT ........................................................................................ 25 8.1.8. Relationship between the HQIT and Operating Utilities ........................................................ 25 8.1.9. Role of the IT Board................................................................................................................ 26 8.1.10. The Evolving Role of the IT Board.......................................................................................... 26 8.1.11. Organization Structure ........................................................................................................... 27 8.1.12. Corporatization....................................................................................................................... 27 8.1.13. Proposed Approach to Implementation of the HQIT .............................................................. 27 8.1.14. Detailed Design Issues Still Needing Resolution .................................................................... 29 8.1.15. Moving HQIT to International Best Practice Operations....................................................... 30 8.1.16. Implementation Approach for Policies and Procedures ......................................................... 34 8.1.17. USAID’S Role – Technical Assistance to the HQIT................................................................ 34

8.2. ASSET MANAGEMENT - MAINTENANCE MANAGEMENT (AM-MM) ............................................... 34 8.2.1. Executive Summary of Workgroup Recommendations............................................................ 34 8.2.2. As-Is Situation......................................................................................................................... 36 8.2.3. Major Improvement Areas ...................................................................................................... 37 8.2.4. Future Business Requirements................................................................................................ 38

Jordan Water Sector – IT Master Plan v Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

8.2.5. Benefits Identification ............................................................................................................. 38 8.2.6. Evaluation of Available Solution Options............................................................................... 39 8.2.7. Costing Assumptions............................................................................................................... 42 8.2.8. Business Case ......................................................................................................................... 42 8.2.9. Risk Factors and Their Mitigation.......................................................................................... 43 8.2.10. Timing of Implementation ....................................................................................................... 43 8.2.11. USAID’S Potential Role.......................................................................................................... 43

8.3. SUPPLY CHAIN ................................................................................................................................ 43 8.3.1. Executive Summary of Workgroup Recommendations............................................................ 43 8.3.2. As-Is Situation......................................................................................................................... 44 8.3.3. Major Improvement Areas ...................................................................................................... 46 8.3.4. Future Business Requirements................................................................................................ 47 8.3.5. Benefits Identification ............................................................................................................. 50 8.3.6. Evaluation of Available Solution Options............................................................................... 51 8.3.7. Costing Assumptions............................................................................................................... 53 8.3.8. Business Case ......................................................................................................................... 53 8.3.9. Risk Factors and Their Mitigation.......................................................................................... 53 8.3.10. Timing of Implementation ....................................................................................................... 54 8.3.11. USAID’S Potential Role.......................................................................................................... 55

8.4. EXECUTIVE INFORMATION SYSTEM (EIS) ....................................................................................... 55 8.4.1. Executive Summary of Workgroup Recommendations............................................................ 55 8.4.2. As-Is Situation......................................................................................................................... 56 8.4.3. Future Business Requirements................................................................................................ 56 8.4.4. Benefits Identification ............................................................................................................. 59 8.4.5. Evaluation of Available Solution Options............................................................................... 60 8.4.6. Costing Assumptions............................................................................................................... 62 8.4.7. Implementation Approach....................................................................................................... 63 8.4.8. Risk Factors and Their Mitigation.......................................................................................... 64 8.4.9. Key Success Factors ............................................................................................................... 65 8.4.10. Timing of Implementation ....................................................................................................... 65 8.4.11. Potential USAID Inputs .......................................................................................................... 66

8.5. CIS/BILLING SYSTEM ..................................................................................................................... 66 8.5.1. Executive Summary of Workgroup Recommendations............................................................ 66 8.5.2. As-Is Situation......................................................................................................................... 67 8.5.3. Major Improvement Areas ...................................................................................................... 70 8.5.4. Future Business Requirements................................................................................................ 70 8.5.5. Benefits Identification ............................................................................................................. 71 8.5.6. Evaluation of Available Solution Options............................................................................... 74 8.5.7. Costing Assumptions............................................................................................................... 75 8.5.8. Business Case – A Quick Win Opportunity To Shape the X7 Rollout ..................................... 76 8.5.9. Risk Factors and Their Mitigation.......................................................................................... 77 8.5.10. Timing of Implementation ....................................................................................................... 77 8.5.11. USAID’S Potential Role.......................................................................................................... 77

8.6. BACK OFFICE SYSTEMS .................................................................................................................. 78 8.6.1. Executive Summary of Workgroup Recommendations............................................................ 78 8.6.2. Budget Preparation................................................................................................................. 78

8.6.2.1. Executive Summary of Workgroup Recommendations .................................................................. 78 8.6.2.2. As-Is Situation ................................................................................................................................79 8.6.2.3. Major Improvement Areas..............................................................................................................80 8.6.2.4. Future Business Requirements........................................................................................................80 8.6.2.5. Benefits Identification.....................................................................................................................81 8.6.2.6. Evaluation of Available Solution Options ......................................................................................81 8.6.2.7. Costing Assumptions ......................................................................................................................82 8.6.2.8. Risk Factors and Their Mitigation ..................................................................................................82 8.6.2.9. Timing of Implementation ..............................................................................................................82 8.6.2.10. USAID’S Potential Role.................................................................................................................83

8.6.3. Projects Performance ............................................................................................................. 83 8.6.3.1. Executive Summary of Workgroup Recommendations .................................................................. 83 8.6.3.2. As-Is Situation ................................................................................................................................83 8.6.3.3. Major Improvement Areas..............................................................................................................86 8.6.3.4. Future Business Requirements........................................................................................................86 8.6.3.5. Benefits Identification.....................................................................................................................87

Jordan Water Sector – IT Master Plan vi Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

8.6.3.6. Evaluation of Available Solution Options ......................................................................................87 8.6.3.7. Costing Assumptions ......................................................................................................................88 8.6.3.8. Risk Factors and Their Mitigation ..................................................................................................88 8.6.3.9. Timing of Implementation ..............................................................................................................88 8.6.3.10. USAID’S Potential Role.................................................................................................................89

8.6.4. Human Resources Management (HRM) ................................................................................. 89 8.6.4.1. Executive Summary of Workgroup Recommendations .................................................................. 89 8.6.4.2. As-Is Situation ................................................................................................................................89 8.6.4.3. Major Improvement Areas..............................................................................................................89 8.6.4.4. Future Business Requirements........................................................................................................90 8.6.4.5. Benefits Identification.....................................................................................................................91 8.6.4.6. Evaluation of Available Solution Options ......................................................................................91 8.6.4.7. Costing Assumptions ......................................................................................................................92 8.6.4.8. Risk Factors and Their Mitigation ..................................................................................................92 8.6.4.9. Timing of Implementation ..............................................................................................................92 8.6.4.10. USAID’S Potential Role.................................................................................................................92

8.6.5. Legal ....................................................................................................................................... 92 8.6.5.1. Executive Summary of Workgroup Recommendations .................................................................. 92 8.6.5.2. As-Is Situation ................................................................................................................................93 8.6.5.3. Major Improvement Areas..............................................................................................................94 8.6.5.4. Future Business Requirements........................................................................................................94 8.6.5.5. Benefits Identification.....................................................................................................................94 8.6.5.6. Evaluation of Available Solution Options ......................................................................................94 8.6.5.7. Costing Assumptions ......................................................................................................................95 8.6.5.8. Risk Factors and Their Mitigation ..................................................................................................95 8.6.5.9. Timing of Implementation ..............................................................................................................95 8.6.5.10. USAID’S Potential Role.................................................................................................................95

8.6.6. Lands....................................................................................................................................... 95 8.6.6.1. As-Is Situation ................................................................................................................................95 8.6.6.2. Major Improvement Areas..............................................................................................................96 8.6.6.3. Future Business Requirements........................................................................................................97 8.6.6.4. Benefits Identification.....................................................................................................................97 8.6.6.5. Evaluation of Available Solution Options ......................................................................................98 8.6.6.6. Costing Assumptions ......................................................................................................................98 8.6.6.7. Risk Factors and Their Mitigation ..................................................................................................98 8.6.6.8. Timing of Implementation ..............................................................................................................98 8.6.6.9. USAID’S Potential Role.................................................................................................................99

8.7. COLLABORATION AND WEB PRESENCE........................................................................................... 99 8.7.1. Executive Summary of Workgroup Recommendations............................................................ 99 8.7.2. Collaboration Issues ............................................................................................................... 99 8.7.3. As-Is Systems Support ........................................................................................................... 100 8.7.4. Major Improvement Areas .................................................................................................... 102 8.7.5. Future Business Requirements.............................................................................................. 104 8.7.6. Benefits Identification ........................................................................................................... 107 8.7.7. Voice over Internet Protocol (VoIP) ..................................................................................... 107 8.7.8. Evaluation of Available Collaboration Platform Solution Options ...................................... 107 8.7.9. Costing.................................................................................................................................. 108 8.7.10. Business Case ....................................................................................................................... 108 8.7.11. Risk Factors and Their Mitigation........................................................................................ 109 8.7.12. Timing of Implementation ..................................................................................................... 109 8.7.13. USAID’S Potential Role........................................................................................................ 110

8.8. INFRASTRUCTURE, E-READINESS AND E-GOVERNMENT ............................................................... 110 8.8.1. Executive Summary of Workgroup Recommendations.......................................................... 110 8.8.2. As-Is IT Infrastructure .......................................................................................................... 110 8.8.3. MoICT Infrastructure Plans ................................................................................................. 113 8.8.4. MoICT and e-GOvernment Plans ......................................................................................... 113 8.8.5. Optimum IT Architecture for the Sector................................................................................ 114 8.8.6. Critical Infrastructure Needs................................................................................................ 115 8.8.7. Costing Assumptions............................................................................................................. 119 8.8.8. Implementation Risks ............................................................................................................ 119 8.8.9. Timing of Implementation ..................................................................................................... 119 8.8.10. Potential USAID Inputs ........................................................................................................ 120

9. OTHER IT COMPONENTS NOT INCLUDED IN THE MASTER PLAN ................................... 120

Jordan Water Sector – IT Master Plan vii Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

10. PHASING OF COMPONENTS .......................................................................................................... 121 11. CONSOLIDATED COST ESTIMATES ............................................................................................ 122

11.1. ASSUMPTIONS ............................................................................................................................... 122 11.2. COST BUILDUPS ............................................................................................................................ 122

12. OVERALL ITMP BUSINESS CASE.................................................................................................. 123 13. SUMMARY OF QUICK WINS POTENTIAL .................................................................................. 123 14. CONCLUSIONS ................................................................................................................................... 123 ANNEX 1 – PROJECT CONSULTANT TEAM........................................................................................... 126 ANNEX 2 – ITMP STEERING COMMITTEE ............................................................................................ 127 ANNEX 3 – ITMP WORKING GROUPS...................................................................................................... 128 ANNEX 4 – SCOPE OF WORK ..................................................................................................................... 129 ANNEX 5 – PROPOSED HQIT ORGANIZATION DESIGN..................................................................... 136 ANNEX 6 – AM-MM-SUPPLY CHAIN BUSINESS CASE......................................................................... 140 ANNEX 7 – CIS-BILLING BUSINESS CASE .............................................................................................. 141 ANNEX 8 – GIS WORKING GROUP TORS ............................................................................................... 142 ANNEX 9 – PHASING OF ITMP COMPONENTS...................................................................................... 148 ANNEX 10 – ESTIMATED FUNDING NEEDS BY COMPONENT.......................................................... 149 ANNEX 11 – OVERALL ITMP BUSINESS CASE ...................................................................................... 150 ANNEX 12 – GTZ TENTATIVE IM HANDBOOK LAYOUT ................................................................... 151

Jordan Water Sector – IT Master Plan 1 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.

1. EXECUTIVE SUMMARY

Introduction

The stated objective of the IT Master Plan (ITMP) is to identify a program of maximum benefit for least cost IT investments that will improve the flow of critical information to management decision-makers across the sector and thereby:

Enable significant performance improvement in the sector; Improve policy-making; and, Support sector regulation.

This report presents the recommended program of investments. The program was developed collaboratively by over 50 sector staff (both business users and IT staff) and the Consultant team over the last 6 months. A structured process was used throughout, with sector staff getting hands-on involved in data gathering, analysis and synthesis. The collaborative approach was specifically requested by the sector to ensure that the ITMP program would be owned by the sector, not just by the Consultant. This high level of ownership makes the ITMP much more likely to be successfully implemented – subject of course to USAID and other financing being agreed.

A total of 8 components were originally identified for detailed development by the team (with Back Office subsequently identifying five subsystems) as follows:

Headquarters IT Organization (HQIT) Asset Management - Maintenance Management (AM-MM) Supply Chain Executive Information System (EIS) CIS/Billing System Back Office Systems

Budget Preparation Project Management Human Resource Management Legal Lands

Collaboration and Web Presence Infrastructure, E-readiness and E-Government

Structure of this Report

Following this Executive Summary, a number of introductory sections describe the background and rationale for developing the ITMP. Its goals and objectives and its approach are then discussed, along with a proposed implementation approach developed by the staff/Consultant team.

Each of the eight components is then described in detail, starting with a short executive summary. As-is business process and systems support is discussed and major improvement opportunities identified. Future business requirements and potential benefits are then developed. These enable evaluation of solution options, their subsequent costing, and where possible, development of a business case by quantification and comparison of the costs and benefits. Risk issues and their mitigation are then discussed – and the timing and potential funding involvement of USAID presented.

An overall plan for phasing the implementation of the ITMP components is presented next, along with


consolidated cost estimates. The overall business case for the ITMP is then reviewed, and quick wins summarized before conclusions are drawn.

Recommendations

In summary the ITMP recommends: Consolidation, followed by extensive training and capacity building, of the three existing

Headquarters IT Directorates into one unit (HQIT) serving the three Headquarters Organizations. The HQIT would ensure sector-wide compliance with standards where appropriate and justifiable, support the Operating Utilities1 (e.g. NGWA, AWC, LEMA) as needed, and operate to internationally accepted best practice IT policies and procedures

Formal systems selection and well managed implementation of an Asset Management - Maintenance Management (AM-MM) system that is tightly integrated with Supply Chain improvements

Development of an Executive Information System (EIS) capable of delivering high quality, accurate, relevant and timely information direct to the desktops of sector leadership and decision makers to support improved sector planning and performance improvement (this will require additional support to begin the institutionalization of performance management across the sector – working most likely on a “middle-out” basis)

Introduction of a business case and additional functionality requirements to support a carefully targeted high quality implementation of the X7 Billing system, following sector leadership’s decision to complete its rollout

In-house or assisted in-house development of a Lands system for JVA and a Legal system for the sector

Formal systems selection and proof of concept to choose between potential Oracle e-Business suite module solutions, and standalone, fully Oracle integrated solutions developed by an experienced Oracle implementer/integrator, for sector-wide support of Budget Preparation and Human Resources Management

Development by an experienced Oracle implementer/integrator of a Project Management system building on ongoing GTZ and potentially MoPIC initiatives

Additional work to define optimum organizational structures, roles and responsibilities to ensure that both Geographic Information Systems (GIS) and data are fully and readily leveraged through appropriate integration with operational IT systems

Phased implementation sector-wide according to a pre-defined use case and deployment strategy of a collaboration tools suite

Selected hardware and communications network upgrades at Headquarters and to connect more remote sites

Appropriate investment in infrastructure management tools and application life cycle tools

Importance of Principles Underlying the ITMP

Just as important as the specific recommendations is the urgent need for the sector, and for the donors, to understand and accept the principles underlying the development of the ITMP. There is a need to introduce more objectivity, rigor and consistency to the sector to justify IT investments and select

1 The term “Operating Utilities” refers to entities that either have been, or likely will be, corporatized and made fully accountable for their O&M cost recovery. Examples at the date of this report include AWC, LEMA and NGWA.


systems on the basis of business process improvement potential (not just business “needs” in the narrow activity sense). Equally systems implementations must be program managed much more robustly according to accepted best practices, with implementation quality measured on realized business benefits, and transfer of in-depth skills and knowledge to sector staff. Much more regular, detailed and upwardly proactive coordination with donors and MoICT regarding their IT initiatives and plans is also recommended so that the sector can fully leverage, and ensure compatibility with, other IT investments in the Jordanian government sector.

Role of the HQIT

The HQIT will be the champion of these principles. The HQIT component is in fact the critical foundation of the whole ITMP that will build and sustain the skills internally to enable IT to fully support better sector planning, performance and oversight. HQIT will be appropriately sized to reflect the sector’s ongoing decentralization. The principles above represent a major “paradigm shift” in how IT is viewed currently in the sector. Only by successfully embedding that shift, and those principles, in sector thinking will the real and substantial benefits of effective investments in IT be realized. His Excellency the Minister of Water and Irrigation and senior sector leadership have already approved in principle the consolidation of the three Headquarters IT Directorates and there is a pressing need to start detailed planning for this as soon as possible. Significant delay will only lead to erosion of the integrity of the ITMP and continued sub-optimal use of funds.

Our proposed implementation approach uses the HQIT to program manage the implementation of the remaining components of the ITMP. A long term technical assistance project, continuing but deepening the proven collaborative approach used in the ITMP development, will be needed to build, and reinforce through real on-the-job coaching, the capacity and skills of the HQIT2. We support the proposition that USAID fund this technical assistance in full. The scope of the technical assistance would include consolidation, training and capacity building, and subsequent corporatization with its implied operation to commercial norms with the sector paying for and receiving service according to agreed service level agreements. Outside commercial revenues from sale of products and services are also likely in time. To assure project success, the scale and long-term nature of this technical assistance will require that continual ongoing monitoring and evaluation, and periodic checkpoints, be designed in, and performance benchmarks agreed upfront, for both the Consultant and HQIT staff. HQIT will need to be a model organization from both an IT and management perspective.

Costs and Benefits

The total cost of the ITMP, estimated at $22.4M over 5 years inclusive of a 15% contingency, may seem high at first sight. However, the public sector while good at counting the costs of investments is much less used to tracking and accounting for benefits that they yield. It is critically important to note that if implemented properly the benefits that the ITMP can bring to the sector will far exceed its costs. On a very conservative basis, considering only the systems initiatives for which tangible benefits can be derived (Asset and Maintenance Management-Supply Chain and CIS/Billing), the ITMP is estimated to have a potential net value of $7.1M.

Put simply, if USAID were to fund the plan in full, they would give the sector $22.4M in grants, which the sector could then turn into an additional $7.1M in benefits from those grants. In practice, there is clearly a strong argument for co-financing the ITMP with the GoJ here – as is normal practice as the already substantial return to the GoJ is effectively leveraged by the extent of USAID grant financing. Again, we believe our assumptions here to be conservative throughout; and that very significant benefits from systems like EIS, Lands and Budget Preparation have not even been included

2 IT staff in the Operating Utilities would also be expected to benefit from this training and capacity-building – either by direct participation or through staff rotation between HQIT and the Operating Utilities.


in building this business case.

The only real uncertainty around the business case presented relates to the sector’s ability to fully capture the benefits offered by the rollout of the X7 billing system to which sector leadership is now committed. It is not clear to the Consultant that this can be achieved in such a short time frame given that the rollout will be completed by the middle of 2007. Further discussions would be needed on this issue to explore potential ways to assure full benefits achievement, and avoid a missed opportunity to quickly apply and benefit from the ITMP principles. There is potential for USAID to assist in funding this rollout – by providing outside consulting assistance to ensure benefits realization (given the HQIT will not be established and trained in time) and/or by assisting the sector in paying any costs of the X7 vendor related to system modifications to support benefits realization. However, in the absence of any firm cost estimates for either of the above, no provision for this has been made in the overall ITMP costing.

2. BACKGROUND AND INTRODUCTION

In July 2005 Deloitte Touche Tohmatsu Emerging Markets, Ltd. (now Emerging Markets Group, Ltd.) and the United States Agency for International Development (USAID), signed Task Order number 518 of Contract Number: AFP-I-00-03-00029-00, Task Order 518 for the development of an IT Master Plan (ITMP) for the Jordan Water Sector (the “Project”). The project team3 mobilized in September 2005 under the technical supervision of Ms. Obaida Hammash from USAID as CTO, with Ian Driscall from Emerging Markets Group as Chief of Party.

A Steering Committee was quickly established to provide oversight of the project – with membership initially drawn from both the “Headquarters Organizations” MWI, WAJ, JVA and the PMU and the “Operating Utilities4” NGWA, LEMA5, JVA and the PMU. The then IT Directors of these organizations were all members (with the exception of NGWA), along with the Managing Director of NGWA and additional representatives familiar with the sector’s GIS and National Water Master Plan (NWMP) initiatives6. The Steering Committee was coordinated by Eng. Mohammed Bany Mustafa, IT Director of MWI.

An interim workshop in December 2005 presented the project’s “As-Is” findings7 to a large audience of sector management and staff, USAID, some of its subcontractors, and selected external ministry representatives. The findings were well received and the Steering Committee made a specific request to adopt a collaborative working process to develop recommendations from these findings. As such a process is generally considered best consulting practice, the project and USAID readily agreed to this suggestion and the Scope of Work for the project was modified and a cost and time extension was granted by USAID to accommodate this approach.

Eight Working Groups of 5-7 individuals, this time with broad representation from across the sector from both users and IT staff, were struck8 to develop detailed recommendations for each one of the

3 See ANNEX 1 – PROJECT CONSULTANT TEAM for a full list of the individual consultants involved in producing the recommendations herein. 4 Note that the term Operating Utilities is used throughout this report to refer to any part of the sector’s field operations (water supply, treatment and distribution, wastewater collection and treatment, and irrigation water supply and distribution) that already or potentially could operate as a standalone business unit accountable at least for recovering its O&M costs. 5 AWC could not participate actively in the Steering Committee because of the logistical challenges involved. Their extremely valuable input into the Working Groups is described elsewhere in the report. 6 See ANNEX 2 – ITMP STEERING COMMITTEE for a full list of the members. 7 See the separate PowerPoint presentation entitled “JORDAN WATER SECTOR – IT MASTER PLAN AS-IS AND TO-BE OPTIONS WORKSHOP” previously submitted to USAID. 8 See ANNEX 3 – ITMP WORKING GROUPS for a full list of the Working Groups and their membership.


eight components identified as a result of the “As-Is” workshop and approved by the Steering Committee. Working with the project team, and facilitated by the Chief of Party, these Groups have gone through a structured analysis process (see Section 6 below) over the last six months to develop the recommendations contained herein.

It is important to note that the Working Group process has in itself already provided significant benefits to the sector through knowledge transfer and skills building with both junior and senior staff. Most importantly, true ownership of the ITMP process and its recommendations has been successfully engendered. This fact has been stated many times by many of the Group members.

Additional “soft” benefits have also accrued from the simple act of bringing individuals with different functional roles together to enable transfer of knowledge about how the sector works and where their own roles contribute to the broader performance of the sector. Similar, and even stronger benefits have resulted from bringing individuals with similar functional roles in different parts of the sector (whether HQ Organization <> Operating Utility or Operating Utility <> Operating Utility). Also, the style of working in groups off-site in a small space with facilitation in both languages and encouragement of input from all, allied with strong follow-up and support of internal meetings by our wider Consultant team allowed good creativity and exchange of ideas, and greatly empowered the Groups who produced excellent work. Group members appreciated the chance to actively participate and learn and deserve continued recognition and encouragement for that.

Lastly the Ministry of Information Technology and Communications (MoICT), represented by Ms. Ruba Kajo participated in our Working Group process and complimented the sector and the project several times for its structured process which is similar to the one MoICT itself is now going through.

3. STRUCTURE OF THIS REPORT

This report is organized into two volumes: Volume I (this volume) containing the recommendations of the report and supporting annexes Volume II containing selected working papers as Annexes from the Working Groups.

This volume describes: The rationale for developing an ITMP The goals and objectives of the ITMP The approach to developing the ITMP The proposed implementation approach for the ITMP Descriptions of the individual components that we are recommending as the ITMP investment

components A summary of our recommendations and a consolidated master plan budget and schedule Other implementation considerations Other IT components not considered in master plan Our overall conclusions

The reader seeking a quick overview of the ITMP and its recommendations is directed first to the Executive Summary in Section 1, then to Sections 4-7, then to the Executive Summaries for each ITMP component in Section 8, and finally to the overall ITMP business case in Section 12 and the conclusions in Section 14.


4. RATIONALE FOR DEVELOPING AN ITMP

4.1. Initial Rationale

Having made a number of investments in IT in the Jordanian water sector, USAID began to realize the need for a more systematic approach and better coordination of future IT initiatives in the sector. The largest of these investments is the ongoing implementation of nine modules of Oracle’s e-Business suite (the so-called “FAS” project) covering financials and some HR and supply chain functionality. The FAS has been a welcome break with the long tradition within the sector of developing “point” applications with little or no integration that essentially serve only to automate small parts of existing business processes9.

Before making further investments, USAID felt that it was important to develop an ITMP – especially since the sector lacked any “IT Strategy” to focus investments on maximizing the improvement of sector performance by fully aligning systems development with future, best-practice business needs. An IT Strategy would focus investments on improving the quality, integrity, flow and appropriate sharing of information to key decision-makers to support better decision-making and planning.

Such IT Strategies (or ITMPs as used here) are normally considered an essential prerequisite for any IT department in today’s environment. Without such a plan, there is a serious risk that returns on IT investments will be significantly impaired, improvement in sector performance significantly restricted, and planning sub-optimized. USAID further recognized a pressing need to improve coordination of IT initiatives across the three Headquarters IT Organizations and to ensure that donor support of these were optimally coordinated.

As our Scope of Work10 states:

“Until now there has not been a systematic attempt to take a holistic view of the Jordan water and wastewater sector’s IT needs and to develop an IT Master Plan. Such a Master Plan is important in any enterprise or sector-wide IT initiative. It takes account of legacy and ongoing systems implementations but focuses on maximizing the functional benefits of all IT components at minimum cost. In effect it is a “least cost” investment plan for sector IT.

In short, an IT Master Plan is an essential prerequisite to further orderly and effective development of IT in Jordan’s water sector. IT commitments already made have long-term consequences. It is important that any new technology and systems choices build effectively on these prior commitments. New IT choices should only be made after a careful analysis of the success (in return on IT investment terms) of previous systems projects. Careful analysis of the needs, options, integration and technology opportunities and challenges and long term costs and benefits of the options for new IT applications will ensure maximum return on future IT investments in the sector.”

4.2. Support for this Rationale from “As-Is” Assessment

Our rapid assessment of the “As-Is” situation leading up to the December 2005 presentation amply confirmed the above rationale for an ITMP. The critical links between the IT function and business planning and performance improvement were found to be much stronger in the Operating Utilities (NGWA, LEMA, AWC etc.) than in the three main Headquarters Organizations of MWI, WAJ and JVA. Important general observations applying mostly to the latter included:

There is no standard data dictionary for the sector, metadata11 and data exchange standards are largely absent (though some are under development as a result of the USAID-funded GMED and

9 As described in the December 2005 “As-Is” findings presentation. 10 See ANNEX 4 – SCOPE OF WORK.


GTZ-funded Improvement of the Steering Competence of the Water Sector (SCWS) and Integrated Information Management (IIM) projects)

Data is not always validated at source, the same data are often maintained in multiple systems which cannot be easily synchronized (so as one person put it “there are many answers to the same question”), and data is not shared adequately even when there is a clear business need to do so

In the Headquarters Organizations overall (not just in their IT Directorates), there is no top-down management report hierarchy defined (note that this would normally cover both financial and operational data) – instead there is very heavy reliance on ad-hoc reporting and examples of the same or similar reports being produced by multiple departments

Again in the Headquarters Organizations, individual roles and accountabilities are often not clear or are sometimes overlapping, and performance targets at an individual level and a goal-focused performance appraisal system are absent

There is no single information base and reporting system for senior management to manage performance – instead there are often multiple reporting channels to senior with non-integrated systems and no unified data flow

Systems are very fragmented, have little or no integration, do not generally encourage process improvements or support best practices in their design, custom applications are not developed to any consistent standards and are often undocumented, and there are multiple systems providing the same or similar functionality across the sector

Critical gaps exist in effective systems support of key utility operations, planning and back-office12 processes

Overlap and duplication exists in applications, duties and licensing Bureaucratic paper-based procedures seriously limit productivity and slow decision-making Beyond email, professional staff make no significant use of collaboration tools (e.g. to easily

schedule meetings or manage and share documents easily) Hardware resources and IT budgets are very unevenly distributed between the three Headquarters

Organizations and hardware standardization is restricted by government procurement regulations WAN/LAN connectivity, though generally good, does not connect all important remote sites Written IT policies and procedures do not generally exist Sustainability of IT staff and the ability of the sector to attract higher skilled resources is

constrained by low government salary levels compared to external market salaries While IT staff often have good technical skills, their program management skills, particularly for

large systems implementations are weak

While an ITMP is no panacea, it can systematize the sector’s IT investments, provide consistent data quality, ensure that IT development, implementation and support is carried out to accepted best practice international standards, and act as a catalyst for substantially improving sector planning, management and performance.

11 Metadata (sometimes described as “data about data” are parameters that specify the accuracy, quality, frequency of update, validation etc. of data elements 12 Back office systems are systems that are common to all industries – for example budgeting, accounting and finance, HR management (HRM0


4.3. Other Observations and Learnings

A number of very important additional observations became clear as our Working Groups developed their detailed recommendations. Key among these are:

Major systems selection decisions are being taken (both internally and with donor funding support) without:

A well documented, business driven and structured approach for systems selection and endorsement at the sector level

Full consideration of future focused, best practice and appropriately “Jordanized” business requirements

Proper alignment of business objectives with the technology track so that benefit/cost cases can be prepared and a clear return on investment targeted

Adequate coordination – both sector-wide and with external GoJ and other entities Clear and specific Scopes of Work being developed that tightly specify the results of the

implementation Major systems implementations are occurring without:

Full engagement by users and IT staff to facilitate proper skills and knowledge transfer Clear plans to fully realize process reengineering opportunities Any upfront definition of potential business benefits (both tangible and intangible13) Clear plans to fully realize these benefits and measure the quality of the implementation by

that realization Program management of major systems implementations, carried out by outside vendors and

consultants:

Is not supported by centralized unit for project tracking, monitoring and supervision Does not follow any standard program management procedures (normally defined by such a

unit) Does not effectively prevent time and cost overruns

Headquarters IT Directorates:

Do not collaborate well and have separate budget and implementation tracks Do not operate to any international standards normally used by IT Departments

These factors all combine to significantly impair the return on IT investments in the sector. An ITMP will provide a systematic framework to ensure that return is maximized.

Another set of observations relates to coordination of IT initiatives – particularly with IT initiatives that are underway in the Jordanian government sector and therefore have the potential to impact all Ministries, but also between donor initiatives in the IT field. As an example, a GRP (Government Resource Planning) package initiative is underway that is supposed to be rolled out to all Ministries and will connect their finance operations back to the Ministry of Planning and International Cooperation (MoPIC). Our MoICT liaison representative was surprised (and pleased) to hear that the sector had gone ahead with its own Oracle FAS ERP initiative but clearly there will be interactions between these two initiatives that will need to be monitored. In short, coordination between the sector’s IT organizations needs to be much more proactive – with regular exchange of each party’s IT

13 Tangible benefits being quantifiable in JD terms (e.g. revenue increases or cost savings) and intangible being less easily or non-quantifiable like better sector decision-making or improved controls on budgetary allocations to better focus limited sector resources


work plans for supporting IT. An ITMP will be central to such coordination.

Both the sector and the donors that fund (and sometimes even initiate) IT initiatives have a responsibility to effectively address both the systems and the coordination issues above.

5. GOALS AND OBJECTIVES OF THE ITMP

5.1. Goal

The overall goal of the ITMP is to identify a program of maximum benefit for least cost investments in IT (software applications, hardware and communications infrastructure, and IT organization and capacity-building) to improve the flow of critical information to management decision-makers across the sector and thereby:

Enable significant performance improvement in the sector; Improve policy-making; and, Support sector regulation.

Such a planning process will be very familiar to anyone experienced in the sector where new increments of water supply capacity are analyzed through a least cost planning process. The benefits dimension must be added for IT since the outputs of IT projects are much more complex than water.

The anticipated planning and implementation period for the IT Master Plan is 5 – 10 years with the majority of the investments being made in the first five years. After 3-5 years we recommend that the sector repeat the Master Planning process using the same approach (again described below in Section 6).

5.2. Objectives

Within the general goal stated above, more specific ITMP objectives are to: Identify major gaps in current systems coverage, hardware and communications and IT

organization capacity that, if filled, have potential to support significant improvement in sector performance

Define systems, hardware and communications, and supporting institutional development initiatives to fill these gaps by:

Examining the As-Is situation Developing outline Business Requirements that are future-focused, incorporate best business

practices and meet any specific Jordanian needs Develop, where possible, a high-level benefit / cost business case to justify investment in those

initiatives Where this is not possible, describe the targeted business benefits in a qualitative sense Develop solution options and evaluate their pros and cons Recommend a solution option Develop a high-level costing for the solution option Identify what risks must be mitigated to successfully implement the initiative and fully realize its

identified business case or qualitative benefits Suggest appropriate mitigation measures Develop a consolidated program budget and suggested schedule of implementation


5.3. Important Qualifiers

First, it is important to understand that the ITMP is a list of directional recommendations only. It does not propose final systems solutions for any of the investment areas. The details of these have to be worked out in implementation. What the ITMP does do is to recommend the optimum approach to each investment area – e.g. custom development in-house, assisted custom development, implementation of additional Oracle e-Business suite modules etc. The ITMP also provides examples of potential solutions where appropriate, and in some cases a mock up, estimates costs, proposes the timing of implementation, and identifies risks and mitigation measures to ensure a quality implementation that realizes the benefits used to justify the investment.

The cost estimates provided herein are solely for the purpose of estimating funding requirements. They are required by USAID for its long-term planning and budgeting, and will also help identify any amounts that must be obtained from other sources of funding whether from other donors or the GoJ.

It is also important to note that the ITMP is not a “laundry list” of every systems project and hardware upgrade that the IT organizations must take over the next 5 – 10 years. Not only would this be impossible, it would be self-defeating as the goal is to prioritize and justify the most strategic initiatives. Tactical work plans deal with the smaller initiatives on a much shorter planning horizon (typically 6 – 12 months) and these plans must still be developed internally.

The plan also focuses on IT initiatives that are typically led by an IT Department. Specialist tools and systems like hydraulic modeling and SCADA14 systems which must primarily be defined by deep technical specialists or engineers, and are then simply supported by IT staff have not been specifically addressed15.

With one important exception, the ITMP is vendor-neutral. At this assessment stage, the solution options recommended are approach-based, not specific product based. For example, we are strongly recommending that a “best of breed” Asset Management – Maintenance Management (AM-FM) system be implemented. We are not recommending any specific vendor even though, in some Working Groups, an example vendor was invited to make a presentation.

The important exception relates to the Oracle FAS. Given USAID’s large investment in this paradigm-shifting system, it is important that, wherever possible, that investment be leveraged. The e-Business suite licenses purchased by the sector give it access to a predefined “bundle” of some 70 modules, only nine of which are currently being implemented. This “bundling” strategy is common to many vendors as a sales strategy. While it may help in reducing the overall package price, it also confuses the purchaser who mistakenly falls into the trap of the marketing and thinks they are getting something good for free.

Many of these 70 modules will never be relevant to the sector (indeed they reveal Oracle’s underlying manufacturing and retail focus), but some modules may be good solutions to identified gaps. Where additional modules are a real option, we have included these in our evaluation. If they look to be very promising options, our recommendations will say so, and the option should be included in a formal systems selection process against a set of detailed functional system specifications.

That said, we caution both the sector and USAID very strongly not to implement any modules simply because they are already in the bundle purchased. The sunk (and effectively very small) cost of these

14 Supervisory Control and Data Acquisition systems of sensors and transducers used to monitor and control for instance the King Abdullah Canal. 15 Partly for this reason, and partly after identifying that two donor-funded initiatives were already underway in the sector, Geographical Information Systems (GIS) was not selected as a potential investment component. This was a decision endorsed by the ITMP Steering Committee. Subsequently, it became clear that a Working Group could usefully have been struck for this area, but this could not be acted upon with the available resources and time. A suggested Terms of Reference for such a Working Group is included as an Annex to this report.


incremental modules is not a sufficient and justifiable reason to implement them. The real costs are always in the implementation, and to spend hundreds of thousands, or even millions of dollars on implementing a sub-optimal system is simply not wise. No formal systems selection processes took place to define the purchased “bundle” – and the bundle’s existence is no warranty of a particular module’s suitability.

Other important messages relate to implementation constraints. While the ITMP makes recommendations for specific investments, the return on those investments will always depend on high quality implementation. While this is an obvious point, the sector has to make a lot of improvements in this area. The ITMP therefore proposes an extensive program of investment in IT staff and organization, and the adoption of widely accepted best practice international standards in IT operations, so that this quality can be assured in future through robust program management. A very clear ITMP priority is to build internal capacity in the IT organization to achieve excellence in implementation.

Equally the success of these investments may depend on simultaneous process reengineering and change management. No system can fix a bad business process – but they can enable much improved processes to be adopted. The process reengineering and change management around a systems implementation is often overlooked or sometimes deliberately resisted, but it is absolutely fundamental to realizing the full benefits of any system implementation. This point will be reinforced several times in describing our recommended systems investments.

Lastly, no system can completely overcome irrational behavior – whether this consists of perverse and counter-productive incentives in, say, a public-sector procurement process, or the common practice in the public sector of greatly inflating budget requests to overcome highly likely and sometimes irrational or sub-optimal cuts in subsequent approvals. Again the message is change management and process reengineering must accompany successful systems implementations. No system can overcome institutional flaws – the best it can do is highlight their impact and attempt to introduce controls to limit them.

6. APPROACH TO DEVELOPING THE ITMP

6.1. Structured process

All of our Working Groups followed a facilitated, structured process in developing their recommendations. A standardized process was applied by all systems Groups, and completed in detail for the major systems and hardware and communications investments that are recommended. Where the benefits of such investments could be clearly quantified, a benefit / cost business case has been developed. Where benefits could not be quantified, they are identified qualitatively. Note that the Back Office systems Group adopted a simplified approach – primarily because they identified a total of five systems gaps that had to be analyzed within the one Group.

The IT Organization Group was of course unique and followed its own structured process that focused on first on defining the roles of IT functions in the Headquarters Organizations and in the Operating Utilities, and then on optimizing the relationship between the two sets of entities. A high level design for a consolidated Headquarters IT (HQIT) organization was then agreed and a plan developed for its implementation.

The key steps in the structured process used for systems and hardware and communications are: Development, and approval by the Steering Committee, of a Scope of Work for each Group Analysis of the current “As-Is” situation – both in terms of the business processes in use and the

systems support currently provided to them Identification of major improvement areas Development of “To-Be” business requirements that are:


Focused on future, not current, business needs Guided by best practices Appropriately adapted (“Jordanized”) to the often unique issues faced in the Jordan water

sector Identification, and quantification as a business case where possible, of the major benefits that

could be obtained from a quality implementation – avoiding double counting and ensuring that the benefits can be ascribed to the systems implementation and associated business process improvements and change management of staff

Development of potential solution options Evaluation of the pros and cons of these solution options Recommendation of the preferred solution option Estimation of the likely costs of implementing that solution options – including as relevant:

Technical assistance costs Software license costs Software maintenance and support costs (for 3 years) Software implementation costs and expenses Incremental hardware costs Other costs

Identification of risks that must be mitigated to ensure a quality implementation and fully realizes the targeted business benefits

Development of final deliverables in the form of an outline of the group’s recommendations and a short final presentation

Not all of the above steps could be completed by the Working Groups, and the Project Consultant Team assisted as necessary with items like development of estimated costs.

The Working Groups met formally five times on a five-weekly cycle for the Chief of Party to review progress, and explain and set the next steps for the Group to work on. Our Project Consulting Team facilitated the Groups through the approach between formal meetings, meeting internally and coaching individuals as necessary.

Wherever possible, we have tried to coordinate (through MoICT), take account of, and leverage our recommendations with IT initiatives underway or planned in other key Ministries. The same applies to work being carried out by GTZ as part of their SCWS, IIM and Capital Investment Planning projects. We have also been mindful of preferred vendor agreements already in place at a national level, and have used their discounted pricing wherever possible.

6.2. Solution Options

The solution options considered by the Groups in their recommendations are compared below in Table 1. Reviewing and fully understanding this table and the explanatory text below describing the options is important to appreciate fully the reasoning for the recommendations of our Working Groups. It constitutes an essential introduction to the rationale for those recommendations.

The really important point to note in this discussion is that no one solution will meet every new systems need. Organizations (public and private sector) operating in the “utilities” environment (water and electricity) tend to combine these options. They all have their pros and cons and no-one strategy fits all systems needs. While solutions generally become more sophisticated, capable of integration and lower in risk left-to-right in Table 1, specific circumstances are far more important in the end choice of a particular option. Quality assurance of implementation is also very important and, if missing, always has the potential to completely negate the optimum solution choice.


The solution options are now described below:

6.2.1. IN-HOUSE DEVELOPMENT

In one sense the options present an evolution of thinking by companies and organizations in many different sectors. Most organizations, including the Jordanian water sector, started with In-House (1) Development. They developed and supported applications, based often in COBOL or in simple database platforms like FoxPro, following their existing manual business processes. Systems development methodologies and tools were often developed in-house too, and not always tightly controlled. Integration was very limited if present at all. Supporting these “legacy” systems increasingly imposed a heavy workload on IT staff, and the quality of the systems often varied widely.

6.2.2. EMERGENCE OF BEST OF BREED SYSTEMS

As the software markets matured, outside vendors started to develop their own off-the-shelf solutions. Initially these were mostly in key back office areas like finance and accounting or HR and payroll. Over time, these stand-alone solutions also started to be tailored to the specific operational needs of a particular industry and came to be known as Best of Breed (BoB) systems (2). Development of these was sometimes initiated by operating utilities. They continually captured best practice business processes for particular industries as they developed – thereby fostering performance improvement. However, they were still often built with a variety of different software languages and data base platforms, requiring IT organizations to develop a variety of different technical support skills, and difficulties in integration – even to the point where the costs of integration exceeded the costs of purchase. The quality of systems certainly improved, but integrity was sometimes compromised unintentionally by customization of the applications (being the legacy of In-House development) leading vendors to withdraw their support.

6.2.3. LOCAL MARKET SOLUTIONS

As BoB applications, both back office and operational, became popular smaller local IT companies began to develop their own localized equivalents – particularly because of the need for local language interfaces and screens – so called Local Market (3) solutions. These also had the big advantage of being locally supported and often lower in cost – both considerations that are also a legacy of the tradition of In-House development.

6.2.4. ENTERPRISE RESOURCE PLANNING SYSTEMS

A major step forward came with the development of Enterprise Resource Planning (ERP) (4) systems – again initially for back office applications because of the market volume and development cost considerations. For similar reasons, they were also developed according to business processes in use in major industry sectors like manufacturing, retail and financial sector. However, to a large extent for most, but not all back office applications, this did not limit their use in utilities. ERPs used widely-accepted industry standard platforms such as Oracle databases and a modular design. Integration between different modules was designed in, and applications could be configured in a variety of ways to accommodate some custom business processes, and without impeding software upgrades. That said, the embedding (as with BoB systems) of best practices created strong incentives to standardize, reengineer and improve the organization’s own business processes and not to customize the software. Organizations that resisted this need to tailor process to system, not system to process, attempted to customize the ERP applications and again ran into integrity problems and sometimes even withdrawal of vendor support. Configuration would allow customer specific flexibility in the software functionality outside of costly software programming. These capabilities ensured the customers would be able to meet their requirements while still keeping the ability to move forward with new releases and upgrades to the ERP investment. The sophistication and evolution of the ERP vendors has reached a point where many of the ERP modules are now considered best of breed. However, this industry has faced stiff competition and many challenges and now there are only a few ERP vendors left that can meet a wide footprint of business application requirements.


Over time the situation has improved. Vendors have consolidated; ERPs have increased their configuration options and continually added best practices; and some ERP modules are even considered “best of breed” in themselves. ERP scope has also widened to encompass more back office processes – especially in the supply chain and materials management areas. In some cases, operational processes like work order management have been added too and applications somewhat tailored to meet the needs of specific industries. The leader in this regard is without doubt SAP. Underlying most ERP platforms however remains the original manufacturing, retail and financial sector paradigms and it is very important to read beyond the vendors’ marketing literature and pitch, solicit independent ranking of solutions (e.g. from widely-regarded sources like Gartner) and confer with peer companies (in this case utilities) before committing to an ERP footprint that extends significantly beyond back office applications like financials, HR and supply chain.

6.2.5. ASSISTED IN-HOUSE DEVELOPMENT

Assisted In-House Development (5) has emerged partially in response to the limited customization capabilities of ERPs (generally for the very good reason that their embedded best practices should be properly leveraged). Another key driver in recognition, particularly in local markets, that ERP module solutions are sometimes over-complex with multi-layered, even convoluted GUI-based screen designs that do not lend themselves well to efficient use by lower skilled users. As an alternative to implementing a string of over-complicated modules, the development of standalone but fully ERP-integrated custom “add-on” applications providing the same functionality in a much simpler and easy to use way as the multiple module solution. These applications must be developed (or sometimes adapted from existing offerings) by experienced and appropriately certified ERP implementer/integrators. While this appears to be somewhat contradictory to the ERP modules, some vendors (including Oracle themselves) actually recommend this approach in appropriate situations, and ERPs have evolved to accommodate this trend more easily with the provision of features like “flex fields”.

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Jordan Water Sector – IT Master Plan 16 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd

6.2.6. APPLICATION SERVICE PROVIDERS (ASPS)

The increasing availability of ever-higher bandwidth communications networks fostered development of today’s internet and intranet platforms. It is now quite realistic to outsource some business processes and applications to “Application Service Providers” who install, configure and maintain high transaction volume ERP platforms and deliver the systems functionality remotely to their contracted customer organizations through web-enabled portals. Experience of this outsourcing has been mixed, and organizations have tended mostly to only outsource business processes that are not essential “core-competencies”. Examples would be high volume customer call center and billing applications (for example among mobile providers), payroll and sometimes finance and accounting.

However, organizations do not typically outsource their critical operations processes. Utilities in particular, except when they are facing competition and deregulation which applies only to the electricity sector, have not aggressively embraced these models. In fact, the knowledge and wisdom necessary to operate organizations in the water sector does not lend itself to the ASP model and it has therefore not been included in our Solution Options evaluation. If it were to be applied to the sector, what would logically be outsourced would be the Oracle modules (with the exception of Supply Chain) that are currently being implemented under the FAS project.

One other comment here is that if IT in the sector cannot achieve sustainability and attract the increasing level of technical and management skills it needs, ASPs in principle become a more attractive option. Again, the specialist nature of many of the sector’s operations is still going to severely restrict the applicability of this option. Nor will it obviate the same sustainability issues for the IT specialists still required to service the operations that cannot be outsourced. In the opinion of the Consultant, the sector has to find a way to solve its sustainability issues itself.

6.2.7. OPEN SOURCE PLATFORMS

The final evolution, and very new in terms of applications rather than operating systems, is the emergence of “Open Source” platforms. This is an interesting development that the sector would do well to monitor as, along with modern systems development and application lifecycle tools, it offers a cheap and much more tightly controlled way to return to the traditions of custom development for specialist sector applications. License and support costs are very low (but not free), integration is generally relatively easy, and complete applications are increasingly offered as “starter packs” that can be readily customized to an organization’s specific needs. Again the need to quickly recover ongoing development costs through access to high volume markets However, the in-house technical skills required are substantial and, at least in the applications field, open source would still be considered “bleeding edge” and risky. Again we do not recommend it as a sensible option for the Jordan water sector within probably at least a 5 year planning horizon. It should however be placed “on-watch” and reconsidered for its suitability to support some applications areas when the ITMP is updated on this kind of timeframe.

6.2.8. THE SITUATION TODAY IN THE UTILITY SECTOR

Faced with all these choices, what then is the situation today in the water and utility sector worldwide? As stated above – the answer is an optimized mix that best fits solution to need. ERPs are rightly dominant in core back office process areas, and their reach is somewhat extended by the Assisted In-House Development strategy. BoBs (designed today, as a basic go-to-market requirement, to integrate well with standard ERP platforms) have evolved to best meet specific industry sector operational process needs – like maintenance management. Middleware, which developed first to allow easy migration of main-frame applications to client/server environments, then evolved to meet the need to better integrate BoB applications, is now embedded directly within BoBs facilitating this much easier integration. Local market solutions are sometimes still an option and custom-development is re-emerging but using industry-standard (e.g. Oracle Developer) standards under very tightly controlled development lifecycles facilitated by software tools that force development to widely-accepted international best practice standards. The experience and judgment of the Consultant team in reviewing a wide variety of utilities world-wide has been be applied to best determine the


optimum solution option for each identified systems requirement in our Working Groups.

As the implementation of IT and related technologies becomes more complex, reliance of the Jordan water sector on the availability of these systems will increase. Some of the sector leadership still has a limited awareness of the value that IT can provide and therefore naturally resists investing resources in IT. This must change. Sector restructuring is already exposing significant weaknesses in the Headquarters IT organizations. As expected the Operating Utilities who are the subject of the restructuring are better and more quickly able to respond to these challenges.

Fully realizing the value of internal IT capability is the first step the sector needs to make. Local marketplaces are still evolving to the point where can offer sufficiently viable options to selectively outsource IT services. The development and maintenance of sufficient internal skills to operate and maintain a quality IT environment must be the first priority for the sector.

6.3. Jordanian Water Sector IT concerns

A number of specific concerns exist in the Jordan water sector that are common to all solution options16. The most obvious is the essential requirement for Arabic language interfaces and screens (usually these are provided as dual-language interfaces) to facilitate easy data entry, and extend the reach of the system to lower-skilled workers such as stores attendants in more remote areas, or drivers and sweepers who need to complete a leave absence request.

Related to this requirement is the need for simple screen configuration and efficient data entry – discussed already above. This has been an issue recognized at AWC in its initial implementation of the X7 billing system where meter data entry that once took one person now takes three17.

On the maintenance and support side, the sector has had some significant challenges in obtaining timely maintenance and support of applications. If support cannot be provided locally, it tends to be expensive and time zone and calendar (both weekend and holidays) differences may severely restrict its timeliness.

The issue of support costs is related but not quite so easy to justify and support in the opinion of the Consultant. The sector is experiencing some “sticker shock” in dealing both with license costs18 and annual maintenance and support costs. Even though donors often fund the large capital outlays for new large-scale systems implementations, the ongoing support costs are seen as a “rope around the sector’s neck” that tends to get more and more expensive as time goes by. From a sector sustainability point of view (especially given widespread agreement that full O&M cost recovery should be a minimum target for all parts of the sector’s operations) such costs are no different from the ongoing operating costs of energy and chemicals consumption for a newly-constructed water or wastewater treatment works whose initial capital outlay has been donor-funded. The software costs are also much smaller in comparison.

Properly budgeted for, ongoing support and maintenance costs are not really a rational barrier to purchasing an additional ERP module or a new BoB system, and should be considered as the price of access to quality software applications – though of course carefully negotiated down wherever possible. The fact that these costs are considered so irksome19 is partly due to the legacy of custom in-house system development where ongoing maintenance and support was “free” by definition. It

16 These are different from unique business requirements for a specific systems area that are driven by “Jordanization” considerations described under each Working Group’s recommendations. 17 This situation is now being remedied, in part as an output of our CIS/Billing Group, by the vendor. 18 This argues the need for very careful specification of user numbers and appropriate legal due diligence in future systems purchases – another core capability that the proposed HQIT organization will need to develop. 19 The Senegalese Government recently opted to aggressively go “open source” because of this perceived issue of large vendors imposing ongoing support costs. While a brave move, its usefulness to the Jordan water sector is limited.


additionally reflects the often limited value the sector still ascribes to IT (described further in the Section on the IT Organization Working Group).

What is critically missing in sector thinking (and not just as far as support costs are concerned) is counting of the benefits of software implementation as opposed to just the costs. The private sector understands very well that if the benefits of any investment exceed its costs (discounted appropriately for differences in the timing of cash inflows and outflows), the investment is economically rational. Within Government organizations this kind of analysis is much rarer (though understood just the same) for the very simple reason that individuals of both high and low rank in the sector have their performance monitored largely by their ability to minimize spending and control costs. This is the whole public sector budgeting mentality. Properly incorporated in a business case for a proposed systems investment, if it is shown to by the business case to be a good investment, the support costs are more than covered by the benefits to the sector of installing the system. The problem is that Government organizations are only now beginning to count benefits, not just costs.

Another point to note on support costs is that the Jordanian Government through the efforts of MoICT is continually negotiating substantial pricing discounts with major systems and hardware vendors. These agreements should be considered and suitably weighted in the pricing criterion for all future systems selections, and fully leveraged where appropriate.

A final sector-specific concern is their wish for ownership of source code. While freeware and shareware, as well as open-source systems, do provide for this, few large applications vendors do – for intellectual property as well as systems integrity reasons. In the opinion of the Consultant it is not really a reasonable or even necessarily advisable expectation.

6.4. Importance of benefits and business cases

Experience of especially ERP and BoB implementations all over the world has clearly shown the importance of identifying desired benefits and developing a business case for a systems implementation upfront. A business case has two distinct purposes:

Justifying the proposed systems investment on solid economic grounds and ensuring the amount of the investment is appropriate to the need

Establishing a clear baseline for monitoring and evaluation of the quality of the systems implementation

While the former is perhaps more obvious, the latter is in many ways more important. When ERPs first became very popular (the “threat” of Y2K being a huge driver), many organizations spent tens, even hundreds, of millions on their rapid implementation. Two years after “go-live” these organizations were still asking where the real benefits are. Many implementation consultants reacted by offering so-called “second-wave” implementation services – a review of the benefits actually being realized against what potentially could be realized, followed by properly targeted and focused re-configuration often extensive process redesign, and additional training and change management of users. An organization’s first experience of a large ERP implementation is rarely a painless one – the organization is ill-prepared to digest the implementation. The most important people and process dimensions are overlooked in the rush to “go-live” with as “plain-vanilla” an implementation as possible to limit cost overruns.

Developing a clear and specific business case, as a part of the detailed systems specification phase, formation and constant nurturing of a true partnership between client, vendor and implementation consultant with targeted and continually monitoring skills and knowledge transfer, and aggressive targeting of the identified business benefits with formal post-implementation measurement is now clearly proven to be a necessary and best practice in systems implementation. Again these are essential skills the proposed HQIT will have to develop before the sector takes on further large implementations

As Peter Covey, the leading management writer, reminds us “begin with the end in mind”.


7. PROPOSED IMPLEMENTATION APPROACH FOR THE ITMP

7.1. Options for Implementation

The ITMP is intended to direct and funnel significant investments in systems, hardware and communications infrastructure into the Jordan Water sector over the next 5 years – in such a way that these investments significantly improve overall sector performance. If implementations of the investments proposed in the ITMP are carried out to a high standard, so that identified business benefits and business cases are achieved, the value that IT can provide will become obvious to the sector.

At this time the ITMP Steering Committee and the Working Groups are the only entities who truly understand and own the ITMP, and its underlying objectivity and framework for optimizing IT investment decisions. Transferring this ownership and objectivity to the proposed consolidated HQIT organization (described below), and making them the custodians and program managers of the plan, is the obvious and best way to maintain the integrity of the ITMP.

The alternative to implementation by the HQIT organization would be to rely heavily on outside consultants to implement each investment component independently. This is a familiar approach that would most likely result in significant loss of value, unnecessary rework of the plan, and much less control over quality assurance of implementations. Such an approach would also perpetuate the sector’s dependence on consultants and continue to constrain development of management and technical capacity within the sector. In short the value and sustainability that the ITMP can deliver would be jeopardized.

We therefore strongly recommend that the capacity to program manage and implement the plan be built internally within the HQIT. A fundamental tenet of development consulting is the transfer of skills and building of capacity to client organizations. Such an approach follows that tenet and reduces any dependency on consultants. The best development consultants should always be aiming to “do themselves out of a job”.

7.2. Role of HQIT in Implementation

We propose that a new consolidated Headquarters IT organization (HQIT) be established under a single long-term USAID technical assistance project to serve all three Headquarters Organizations (MWI, WAJ and JVA)20, The principal role of the consolidated HQIT, besides providing IT support services to the HQ Organizations, will be to own and manage the ITMP.

Our proposed implementation approach stresses the building of strong technical, business and management capacity within the IT Organizations in the sector. Sector leadership will first expect the new HQIT to prove itself capable of meeting or exceeding the current levels of IT service and support. The capacity-building program we propose will assure this. It will then equip the HQIT to manage and implement the ITMP components effectively to realize their anticipated business benefits. Staff salaries will also be addressed during the long term technical assistance (subject to corporatization being achieved21) in order to ensure sustainability of this enhanced IT capacity in the sector.

Implementation of most of the ITMP systems and hardware and communications initiatives should

20 Involvement of the PMU was considered but since we understand the intention is to devolve this unit to support development of an independent regulator for the sector, and it is already under programmed EU funding, this was considered unadvisable. 21 It may be possible to introduce performance bonus pools before corporatization if Jordanian laws completely limit across the board salary increases prior to corporatization and a way cannot be found around this. Note that there is a precedent established already in Jordan – with MoICT employees being paid outside Government salary scales in order to attract and retain quality talent.


not begin until such staff capacity is developed and proven. Technical assistance for the HQIT Organization may run for up to 5 years on a declining basis, with intensive training and capacity building being completed within the first 2 years, and the major part of the ITMP investments commencing thereafter.

It should also be noted that the existing scope of the Oracle e-Business suite implementation will be completed by July 07. A further focus of capacity building efforts within the HQIT will be on ensuring the internal capacity to support and improve configuration of the e-Business suite modules to realize their full business benefits.

Our recommended approach to the technical assistance – which includes regular and frequent monitoring and evaluation of both the HQIT staff and the Consultant to ensure that capacity building and skills transfer are happening properly - is described further under the IT Organization component in Section 8 below.

7.3. Short Term Actions Needed

The HQIT must be established as quickly as possible to protect the integrity of the ITMP, and USAID’s investment in it. A way must be found for USAID and the sector to preserve and capitalize on the strong momentum and ownership of the ITMP by its Steering Committee and Working Groups. Maintaining this momentum into rapid implementation provides the sector and USAID with an opportunity to substantially mitigate implementation risk. Conversely a significant gap in USAID’s contracting for ITMP implementation activities will inevitably dissipate this ownership and momentum as well as again likely lead to unnecessary rework of the plan, and loss of its integrity and value.

Obtaining and embedding an understanding of the value of the ITMP with the broad range of sector stakeholders, both internally, in other ministries and with the donor community will inevitably take some time. It is important to understand that the ITMP is much more than a set of optimized IT investment recommendations. It is also a set of principles to guide more objective systems selection and results-driven implementations. Subject of course to final acceptance of the ITMP, it is critical that both the sector and USAID adopt this framework as soon as possible, even if only on an interim basis at first, as the definitive framework for reviewing and refining all future project designs. It is important to note that the ITMP is fully consistent with USAID’s own ADS 548 and develops it further according to widely accepted best practice. Early adoption of the ITMP framework will avoid any danger of continuing sub-optimal systems selections and implementations and show an immediate return on USAID’s investment in the ITMP.

8. DESCRIPTION OF COMPONENTS

8.1. Headquarters IT Organization (HQIT)

8.1.1. EXECUTIVE SUMMARY OF WORKGROUP RECOMMENDATIONS

This component is the foundation for the entire ITMP. HQIT will be the custodian of implementation of the ITMP, with all investment components channeled through it and managed by it. HQIT will also be responsible for periodic updating of the ITMP. The vision here is to establish a single Headquarters IT organization, and to train, coach and build sustainable capacity within the organization in all the skills necessary to run an effective IT services organization according to internationally accepted best practices.

HQIT will primarily serve the IT needs of the Headquarters Organizations, but it will also provide services to the Operating Utilities’ IT organizations (e.g. in LEMA, AWC or NGWA) on an as-needs, arms-length basis. In addition, where in the sector’s overall interests, it will set and implement sector-wide data, systems, hardware, interface and communications standards. The HQIT is not envisaged as a very large unit – especially as WAJ and JVA continue to evolve towards stand-alone Operating Utilities and smaller Headquarters Organizations – but it must be a very effective unit. Its staffing


levels will be determined strictly according to identified needs drivers – and its focus will be more on quality of staff, not quantity. The aim is to create a small and fully accountable center of excellence that is a recognized and valued business partner for the whole sector.

Technical, business and management skills currently existing in the three separate HQ IT Directorates (MWI, WAJ and JVA) will all need to be deepened and widened. This will enable the HQIT to properly manage the full range of systems development strategies – from custom development (with or without outside assistance) to leveraging of the ongoing Oracle e-Business suite implementation, to additional large-scale, sector-wide systems implementations. HQIT will be the PMO, systems developer or selector, implementation manager and quality assurance provider for all sector-wide systems. They will advise and offer these skills and services to the Operating Utilities – as and when they require support from the center.

HQIT must also lead the way in all aspects of management practice – not just in technology skills. It will be the first “internal” demonstration user of many of the systems it will ultimately implement sector-wide – including HRM and performance management, budgeting and project management systems, and the collaboration suite. These will help enable the HQIT to be recognized for performance management from the outset.

The sections below first describe the “As-Is” situation in the Headquarters IT Organizations and their evolving role vis-à-vis the emerging Operating Utilities IT Departments. Opportunities for improvement that are essential if Headquarters IT is going to add real value to improving the performance of the sector are then described, and options for reorganization reviewed. A full description of the Group’s recommendations around the role and organization structure of the HQIT, and its relationships with the Operating Utilities is then provided. A detailed implementation “roadmap” is proposed – with issues still requiring resolution clearly identified. References to widely-accepted international best practice standards in IT operations are described next, and a suggested approach to adapting and implementing them to suit the needs of the water sector is described.

The final section describes how USAID could best support this component through a long-term technical assistance project that emphasizes capacity building through training that is focused and timed to meet the real business needs of implementing the ITMP, and reinforced by on-the-job coaching through these needs. This is a large commitment of USAID funds, and clear monitoring and evaluation procedures must be built in, with annual evaluation of both the contractor and HQIT staff against pre-agreed performance baselines to ensure that the capacity is actually being built.

8.1.2. CURRENT DEPLOYMENT OF IT RESOURCES IN HEADQUARTERS ORGANIZATIONS

A total of 57 IT staff is currently employed by the Headquarters Organizations of MWI, WAJ and JVA in three separate IT Directorates each reporting at the ASG level – generally to an ASG of Finance and Administration. About 50% of these staff are located in WAJ Headquarters. Another 19 staff (~ 33% of the total) are employed by JVA – but this total includes 7 data entry clerks. The remaining 10 staff are employed at MWI Headquarters. Annual turnover of IT staff is estimated at 15% - which is certainly high by public sector standards.

Over 50% of the IT staff in Headquarters Organizations hold a B.Sc. in Computer Science or a related field. Another 40% hold a 2 year diploma in IT. 38% of employees are between 20-29 years old, 36% are between 30 – 39 years old and 24% are between 40-50 years old.


The roles and position descriptions within the Headquarters Organizations IT Directorates are distributed as follows:

Role or Position % of total IT staff Programmers 28% Assistant Programmers. 23% Systems Analysts 23% System Engineers 12% Data-Entry 12% Maintenance Engineers 8% Network Administrators 5% Database Administrators (DBAs) 5% IT Manager 3% Reporting Officer 2%

Table 2 - Current Distribution of IT Staff

This distribution of staff with almost 75% of staff being related to programming and systems analysis clearly shows the legacy of custom development in the sector. As the mix of solution options adopted in the sector changes, initially with the introduction of FAS, this distribution of roles will have to change substantially.

8.1.3. THE EVOLVING RELATIONSHIP BETWEEN HEADQUARTERS AND OPERATING UTILITIES IT FUNCTIONS

The water sector in Jordan has now clearly taken on board the concept of corporatization. This effectively enables corporatized units to operate autonomously almost as a private sector operation would but still wholly owned by the GoJ. AWC led the way here, now that the LEMA management contract is coming to a close Amman Water and Wastewater Corporation will be established, and NGWA has just begun a management consultancy to prepare it for corporatization in two years. These corporatized entities have shown substantial performance improvements and are easily achieving O&M cost recovery. There is no reason to suggest the trend of corporatization will not continue – although several entities (both in WAJ and JVA) have a considerable performance gap still to address before they are ready for corporatization.

This trend to corporatization of Operating Utilities is already changing the role of IT in the sector. Broadly speaking the value of IT has been clearly recognized in the Operating Utilities. Senior management within the Operating Utilities has systematically addressed individual manager’s accountabilities, performance targets and reporting needs. Performance improvement imperatives are much clearer than at Headquarters Organizations. Processes are in place to continually identify business issues that need IT support.

IT Departments in the Operating Utilities are generally small, able to attract and retain more qualified IT staff, and focus their resources on business needs. Their manager generally reports direct to the General Manager of the Operating Utility – in a “Chief Information Officer (CIO)” role more typical of the private sector. The IT departments leverage existing custom applications well, and in some cases are building their own Management Information Systems to support continued performance improvement in operations. Other Operating Utilities IT departments are considering leading significant systems development initiatives of their own. IT staff are readily able to make fast, effective local purchasing decisions.

In contrast at the Headquarters Organizations, IT is foundering somewhat. In some cases, sector leadership still needs to be convinced of the real value of IT. IT Directors report low in the organization and in some cases are still viewed either as administrative support, or as “techies” working in the back room, supporting desktops, maintaining legacy systems and occasionally


developing new “point” legacy type applications. The sector focus on IT costs, not benefits/costs, is evidence of this. Morale is low, in part because of salary levels22 and the substitution in some cases by higher paid contract staff, but more importantly because their ability to apply their skills and experience to make a real contribution to the sector’s improvement, and be relevantly trained and skills-upgraded so they can progress their own career development, is extremely limited. Staff are often consumed by low value activities – sometimes even purchasing of routine IT supplies can be a major issue. While quality hardware is not always in short supply, creatively-functioning and motivated IT staff (the hallmark of a constantly progressing IT sector) are rare.

As the Operating Utilities continue to evolve, and their number increases, they will take increasing responsibility for developing and maintaining their own operational support systems. Headquarters Organizations will get smaller in size at the same time, reducing the need for a large IT department there. Not all IT will however be devolved, In the centre, besides specialist planning applications, development, maintenance and support of a number of common “backbone” systems needed to coordinate the sector will become more and more important. The most obvious of these is the Oracle FAS. Effectively this imposes common data and accounting standards across the sector, simplifying budgetary control and reporting, and facilitating easy consolidated reporting. A continuing challenge in implementing the FAS has been getting Headquarters Organizations IT staff to truly actively “partner”, at the high level of commitment required, in the ongoing Oracle FAS implementation. This is in part a symptom of the situation described above.

The sector is also increasingly expected to participate in emerging e-Government initiatives that the MoICT is leading. Both the need to maintain the new backbone systems, and the trend to more outside IT initiatives, are putting pressures on Headquarters IT Organizations that they are not well equipped to bear.

8.1.4. THE OPPORTUNITY FOR IMPROVEMENT

The relative strengths and weaknesses of IT in the sector, both in Headquarters Organizations and Operating Utilities were introduced in Section 4 and discussed further above. The opportunity to improve is clearly for Headquarters Organizations IT Departments to be able to add much more value to the sector’s planning and operations. Operating Utilities IT Departments may be able to do a lot in their own spheres of influence, but backbone systems will continue to need strong centralized IT support. There is clearly a need to better define the role of Headquarters IT Organizations vs. the Operating Utilities IT Departments (which is addressed below) but the first priority must be to leverage IT much better at the center.

In the short-term, the most significant opportunities for improvement are to: Assure greater availability and quality of information Formalize and follow a future business benefits-driven IT selection/development process Optimize IT expenditures and guarantee ROI Better utilize staff and improve service Establish a proper program management function Improve coordination of donor support for IT Improve the security of IT and related assets

In the medium to longer-term, additional improvements are possible including: Establishing and enforcing as sector-wide Unified Data Dictionary

22 We estimate these to be 40-60% below the relevant Jordanian IT market levels.


Developing a comprehensive Executive Information System (EIS) for planning and decision support

Thoroughly assuring the quality of IT project implementation Facilitating easy roll-out of E-Government Services Operation of IT functions to international standards Ownership & regular updating of the IT Master Plan Potentially, commercial revenues from selling IT services to regional utilities and municipalities

Achieving these improvements will require a sustainable cadre of high-quality IT personnel fully cognizant with and capable of directly supporting business needs through the provision of effective and efficient23 systems support.

8.1.5. OPTIONS FOR REORGANIZING HEADQUARTERS ORGANIZATIONS IT

Our initial “As-Is” assessment provided a high-level comparison of the options for reorganizing Headquarters Organizations IT. This is reproduced in its original form as Table 3 below. It strongly suggests that some form of “hybrid” organization that balances a strong centralized Headquarters IT Organization (HQIT) with largely autonomous decentralized IT Departments in the Operating Utilities.

• Still need strong leadership in center• Requires clear service level agreements• Internal / external market discipline

necessary

• Best of all worlds – still close to “utility” needs

• Balance risk and return• Corporatization would increase

sustainability• Generate revenue for sector?

Hybrid

• Who would support HQ/infrastructure needs?

• Mitigate risk by insisting on high quality data standards for sector MIS

• Closest to “utility” business needs• Easiest to escape Civil Service

Bureau limitations

Fully Decentralized

• Previous attempts at collaboration have not worked

• Would still have to focus hard on efficiency, adding value and sustainability

• Ignores sector evolution• Strong leadership by CIO essential

• Sector-wide focus• Reduced duplication & overlap• Better staff development• Improved accountability• Common standards enforceable• More sustainable

One Consolidated

• Not working very well• Not sustainable• Not close to business needs

• No change requiredAs-Is (4 IT Depts)

DisadvantagesAdvantages

• Still need strong leadership in center• Requires clear service level agreements• Internal / external market discipline

necessary

• Best of all worlds – still close to “utility” needs

• Balance risk and return• Corporatization would increase

sustainability• Generate revenue for sector?

Hybrid

• Who would support HQ/infrastructure needs?

• Mitigate risk by insisting on high quality data standards for sector MIS

• Closest to “utility” business needs• Easiest to escape Civil Service

Bureau limitations

Fully Decentralized

• Previous attempts at collaboration have not worked

• Would still have to focus hard on efficiency, adding value and sustainability

• Ignores sector evolution• Strong leadership by CIO essential

• Sector-wide focus• Reduced duplication & overlap• Better staff development• Improved accountability• Common standards enforceable• More sustainable

One Consolidated

• Not working very well• Not sustainable• Not close to business needs

• No change requiredAs-Is (4 IT Depts)

DisadvantagesAdvantages

Table 3 - Evaluation of Options for Reorganizing Headquarters IT Organizations

8.1.6. RECOMMENDATIONS

The IT Organization Working Group was able to develop this “hybrid” concept much further in the course of the last six months. The core of their recommendations involves:

Consolidating the existing three Headquarters IT Directorates into one unified HQIT Organization (see Figure 1 below) serving all the IT needs of the Headquarters Organizations (and, until their

23 Efficiency in the IT world is usually expressed in terms of lowering the Total Cost of Ownership (TCO).


ultimate corporatization, non-Amman based operational entities still closely tied to those Headquarters Organizations)

Clearly defining the roles and responsibilities between HQIT and Operating Utilities IT departments

Establishing a governing IT Board to ensure those roles are followed, and that excellent levels of IT service are provided to the Headquarters Organizations and available as needed to the rest of the sector.

A properly unified HQIT would serve the consolidated needs of MWI, WAJ and JVA, with its most senior manager reporting on a day to day basis in a “CIO” role directly to senior sector decision-maker(s). Policy and performance oversight would be provided by an IT Board with voting MWI, WAJ, and JVA representation from both Headquarters Organizations and Operating Utilities (IT users as well as IT staff). The Board’s involvement would be high during initial establishment of the HQIT, but would later reduce to normal board oversight responsibilities once the HQIT becomes fully effective. HQIT would be the custodian of applications and data, but the individual businesses would still own these.

UUnniiffiieedd IITT OOrrgg

Ministry of Water & Irrigation

(MWI) Sector-Wide

Ministry of Water & Irrigation

IT Directorate

Jordan Valley Authority

IT Directorate

Water Authority Of Jordan

IT Directorate

IITT BBooaarrdd

Figure 1 - Proposed HQIT

8.1.7. ROLES AND RESPONSIBILITIES OF HQIT

The principal roles and responsibilities of the HQIT would be to: Implement, maintain & support sector-wide backbone systems (e.g. Oracle FAS, GIS) and

infrastructure Maintain the integrity of all systems, data and information needed for MWI planning (e.g. water

situation, capital budgeting, O&M subsidies) & performance oversight (and / or regulation) Ensure pro-active & effective coordination with e-Government, MoICT, MoF, MoPIC and other

systems initiatives of external bodies Consolidate software licenses where this is in the interests of the sector Support Operating Utilities’ IT departments as requested Provide staff development, training and rotation to build sector-wide sustainability of IT Monitor & evaluate projects & conduct process quality tests Manage risk – backup, disaster recovery, access control and software development standards – all

to international best-practice standards Procure equipment according to applicable laws and bylaws – leveraging centralized purchasing

power where in sector interests

8.1.8. RELATIONSHIP BETWEEN THE HQIT AND OPERATING UTILITIES

The HQIT and the Operating Utilities IT Departments will need to collaborate especially closely and effectively in the following critical areas:


Coordination of all shared IT activities and joint liaison with the IT Board for issues resolution as appropriate

Creation of core support teams for backbone systems support and implementation Provision of operating data and management information to Headquarters Organizations for EIS

dissemination and consolidated reporting Joint implementation of a business continuity and fail-over plan

8.1.9. ROLE OF THE IT BOARD

The Board will operate ultimately in a normal governance role, ensuring that an appropriate balance is maintained between the IT needs of the Headquarters Organizations and Operating Utilities, and ensuring that the sector’s overall interests are maintained within IT decision-making.

The Board would therefore: Monitor the performance of HQIT against agreed service levels to Headquarters Organizations

(and Operating Utilities where appropriate) as defined in Service Level Agreements (SLAs) Develop and monitor a broader set of key performance indicators (KPIs) for HQIT Oversee the continuity of implementing selected IT standards Act as a “regulator” for sector-wide IT projects Monitor the progress of major IT projects Ensure due ITMP process is followed in developing new systems recommendations Continue to be involved in backbone system selections Monitor HQIT’s operating program maintained by the PMO, and review and approve regular

updates Ensure the periodic update of the ITMP by HQIT and approve such updates Ensure that IT plans are generally maintained and coordinated within the sector, and with external

donors, other Ministries and stakeholders Monitor IT staff development plans sector-wide

8.1.10. THE EVOLVING ROLE OF THE IT BOARD

As identified above the role of the IT Board will be significantly different during the initial establishment of the HQIT and implementation of the ITMP components. The evolving role is summarized in Table 4 below.


# During IT Master Plan Implementation Post Master Plan Implementation

1 Actively participate in backbone system selection and procurement

Continue to be involved in backbone system selections

2 Oversee implementation of backbone systems Monitor project(s) progress 3 Report on project progress, risks and obstacles

4 Actively be involved in selection and acquisition of common infrastructure components

5 Co-design Policies and Procedures, approve and implement Act as a “regulator” for IT projects sector-wide 6 Co-recommend New Systems Co-recommend New Systems

7 Review and approve IT related staff development plans sector-wide Monitor that plans are maintained

8 Co-setup PMO for water sector with Operating Utilities. (HQIT will keep updating PMO) Monitor PMO, review and approve updates

9 Monitor the performance of IT HQ and assist in KPI's definition Monitor KPI 10 Be responsible for successful implementation of IT Master Plan Update IT Master Plan

11 Co-implement best practices, standards in IT management, operations, security … etc

Oversee continuity of implementing selected standards

Table 4 - The Evolving Role of the IT Board

8.1.11. ORGANIZATION STRUCTURE

A proposed organization structure and descriptions of the proposed roles and staffing compositions for the HQIT is attached and described in detail as ANNEX 5 – PROPOSED HQIT ORGANIZATION DESIGN to this Volume. We propose four separate Directorates covering Business Applications, Infrastructure, Security and QA, and Strategic Planning and Program Management. Each Directorate is organized into Sections with 11 Sections proposed in all.

Developed by the IT Organization Working Group, this organization structure will have to be reviewed and developed further as part of detailed implementation planning for consolidating the three Headquarters IT Directorates into the HQIT. In particular optimum staffing levels will have to be confirmed. It is however a comprehensive proposal that properly expands but focuses the role of HQIT on the sector’s future IT needs and required skill sets. This will shift it from its present legacy systems focus to being able to properly cope with the demands of the many different solution options it now has to manage and manage well.

8.1.12. CORPORATIZATION

As has been demonstrated in the Operating Utilities, corporatization brings a new focus on operational improvements. Corporatizing the HQIT will force it to move from being a cost center to being a financially sustainable business in its own right. While it will still obtain the bulk of its revenues from providing services directly to the water sector (through fees charged after corporatization under the SLAs with each entity), this will necessarily be on an “arms length” market basis. In the same way, services HQIT provides to the Operating Utilities will be priced at arms length market prices and HQIT will have to demonstrate better value for money than outside private sector providers. Additional revenues from sales of its specialist water sector and expertise to other regional utilities and municipalities are also anticipated. Corporatizing HQIT will also help to raise Jordan’s IT competitiveness in the region and encourage foreign and domestic private investment opportunities in the country.

8.1.13. PROPOSED APPROACH TO IMPLEMENTATION OF THE HQIT

After a detailed planning phase, the existing three headquarters IT Directorates will be consolidated (within six months of commencement of the detailed planning phase) into one new HQIT serving the whole sector. Intensive needs-based training, coaching and capacity building will then begin with


each staff member having agreed performance targets. Efforts will be made post-consolidation to provide for performance bonuses to begin to address the salaries issue. Subsequently, we recommend that the HQIT be corporatized, allowing it to set its own salary and benefits packages to enable it to compete for professional talent in the appropriate local and regional IT labor markets.

The major phases, and constituent activities, of the HQIT component are: Detailed Planning For Consolidation Of The Three Existing HQ IT Directorates

Review HQIT design proposed in ITMP Conduct a legal review to confirm the feasibility of in-sourcing of IT services to a common

HQIT, and identify and resolve any staff or asset transfer issues Recommend solution on outstanding implementation issues (see below for a full list) – these

include the organizational location of HQIT, reporting lines, and any staff salaries flexibility – and obtain the approval of sector leadership

Establish project oversight mechanisms Develop detailed inventory of current service scope and levels Develop improved target service scope and levels, and develop Service Level Agreements

(SLAs) with each HQ organization Establish monitoring and reporting mechanisms to track service levels Working from the ITMP HQIT design, develop a detailed staffing model and detailed job

descriptions and performance expectations at the individual staff member level Optimally match current staff to the new positions and roles, and prepare a Day Zero “cap-

badging” plan that reallocates staff into their new roles and/or transfer options for any residual staff

Review existing operating and capital budgets and develop an approach to preparing a consolidated HQ-wide budget

Identify common office facilities and prepare necessary infrastructure Identify critical systems that must be in place for Day Zero to maintain business continuity

and plan their availability Develop on-line Policies and Procedures Manual for HQIT operations – based on

international best practices (e.g. Information Technology Infrastructure Library (ITIL) Establish IT Board and conduct training in their role Consolidate all the above into a Day Zero consolidation plan – again to ensure seamless

business continuity during and after consolidation. Consolidation and Capacity Building

Implement the Day Zero consolidation plan – transferring staff into their new roles and departments

Set performance goals for each staff member Review the training plan developed during the ITMP24 Implement the training plan and track each staff member’s training progress Apply and continuously coach the skills learned in each training course Monitor and report service levels Conduct semi-annual and annual staff appraisals Review legislation applicable to corporatization and salaries

24 See Volume II, IT Organization Component


Prepare corporatization plan Prepare post-corporatization business plan (with/without commercial service offerings) Establish internal administration unit (to become effective on corporatization) Manage hardware and infrastructure and communications upgrades and implementation of

infrastructure management tools Manage sector-wide centralized deployment of collaboration tools Begin working with outside Oracle vendor to develop selected Back Office applications, and

new Lands system. Corporatization

Complete legal transfer to new corporate entity Transfer SLAs to new entity Implement own salary and benefits packages Review staffing Monitor performance

Full HQIT Operations

Manage routine support according to SLA agreements Prepare annual operations and capital plans and budgets Manage implementation of all remaining ITMP components Prepare detailed systems specification Conduct formal systems selection Manage vendor implementations Ensure full realization of targeted business benefits Provide quality assurance for all operations and projects Monitor emerging trends in it (e.g. Availability of open source applications tailored to sector

needs) and incorporate as ready Review and update ITMP Begin to offer commercial it services to other regional utilities and municipalities (outside

scope of any USAID assistance)

8.1.14. DETAILED DESIGN ISSUES STILL NEEDING RESOLUTION

Sector leadership has now given formal approval in principle for consolidation of Headquarters Organizations IT Directorates to proceed. However, as described above, the Working Group identified a number of detailed design issues that still need to be resolved during the Detailed Planning for Consolidation phase. These are shown in Table 5 below:


Where will HQIT initially be located, under MWI, WAJ or JVA? What is optimal to allow subsequent corporatization? How will budget funds be reallocated and annual operating and capital budgets be prepared? (latter will be guided by the ITMP) What will happen to any current open and signed contracts? What will be the status of software and other licenses? When is the time to do the consolidation? (we have proposed 6 months after the start of detailed planning for consolidation) What will happen with the current IT directors from both an organizational and functional perspective?

IT HQ Organization

What will be the future of IT staff in MWI, WAJ and JVA? What qualifications and experience should the new CIO have? What will be the selection process? To whom the CIO will report? What will be the job description and function of the new CIO?

Leadership

What are the expectations of Operating Utilities from the new CIO? What will be the right mechanism/legal and administrative process to consolidate the IT staff for Headquarters Organizations? How long will it take to finalize the Detailed Consolidation Plan and mechanism? Given that bylaw no 60 is on hold, what will happen to staff employed on the Social Security law when consolidating?

Staff Consolidation

Are Operating Utilities willing to accept some IT staff transferred from HQIT? Salaries need to be revised and raised to market level – does the law and associated bylaws allow for defining a new salary scale or performance- based bonus pool? What will be the new salary scale and how should it be related to individual performance? Who has to define/create the scale? How long will take to approve the new salary scale?

Salaries

Do Operating Utilities IT staff also need to follow the IT HQ new scale or can they use their own since they have O&M recovery responsibility? A proper team building mechanism needs to be developed prior to Consolidation – to create trust between staff, develop soft skills, and improve team dynamics

Team Dynamics and

Consolidation Approach

(As identified above) a detailed consolidation plan needs to be developed highlighting all Legal, Human Resources, Processes, Systems, Office Supplies and other logistics issues

Table 5 – Outstanding Detailed Design Issues

It is critical that an early start be made on Detailed Planning for Consolidation because of the need to maintain the momentum of the Working Group, and in recognition of the time needed to agree and gain approval on the above issues.

8.1.15. MOVING HQIT TO INTERNATIONAL BEST PRACTICE OPERATIONS

Once the HQIT has been established it will be important to set standards for its performance. These standards would be codified in a set of HQIT Policies and Procedures that would be made available in an on-line manual. Under its Integrated Information Management (IIM) project, GTZ has already tabled a high level Common Information Management Policy and a draft Information Management (IM) Handbook. These provide a foundation for developing HQIT Policies and Procedures (see ANNEX 12 – GTZ TENTATIVE IM HANDBOOK LAYOUT for the draft layout and GTZ’s suggested responsibilities for detailing each section). We propose this detailing be done, and additional policy areas added as appropriate, by referencing widely accepted international best


practice standards for IT operations – adapting them accordingly to the situation and needs of the Jordanian water sector. Some key reference points are described below.

IT Infrastructure Library (ITIL)

ITIL is the most useful starting point for moving to best practice IT operations. An introductory overview is available at http://www.itsmf.no/bestpractice/itil_overview.pdf. ITIL provides a framework of best practice guidelines for IT Service Management. A roadmap for introducing ITIL is shown in Figure 2 below.

Figure 2 - ITIL Roadmap

ITIL is the most widely used and accepted approach to IT Service Management in the world. It covers the following areas:

Business Perspective: - this provides advice and guidance to help IT personnel to understand how they can best contribute to the business objectives and how their roles and services can be better aligned and exploited to maximize that contribution.

Service Management Implementation: - this is the fundamental definition and interpretation of the Service Management term used throughout the ITIL framework. It is a core principle of ITIL and covers all aspects of the provision and quality management of IT services.

Service Support: - this describes the processes associated with the day-to day support and maintenance activities associated with the provision of quality IT services.

Service Delivery: - covers the processes required for the planning and delivery of quality IT services and looks at the longer term processes associates with improving the quality of IT services delivered.

ICT Infrastructure Management: - covers all aspects of ICT Infrastructure Management from identification of business requirements through the tendering process, to the testing, installation, deployment, and ongoing operation and optimization of the ICT components and IT services.

http://www.itsmf.no/bestpractice/itil_overview.pdf


Applications Management: - examines the issues and tasks involved in planning, implementing and improving Service Management processes within an organization. It also addresses the issues associated with addressing Cultural and Organizational Change, the development of a vision and strategy and the most appropriate method of approach.

Security Management: - this details the process of planning and managing a defined level of security for information and IT services, including all aspects associated with reaction to security incidents. It also includes the assessment and management of risks and vulnerabilities, and the implementation of cost justifiable countermeasures.

ITIL is a comprehensive set of IT specific standards. Implementation of them should be done gradually in phases – with the standards being tailored to the sector’s needs and capabilities. ITIL standards should be fully embedded in the Service Level Agreements that HQIT would define with the Headquarters Organizations (and possibly the Operating Utilities) – and in fact offer a useful guideline for preparing these internal contracts.

ISO/IEC 27001 (http://www.iso.org) – Information Security

ISO/IEC 27001 is the International Standards Organization (the world’s most widely accepted quality standards body) standard on information security management system requirements, risk management, metrics and measurement, and implementation guidance. The standard is structured into the following domains:

Risk Assessment and Treatment Security Policy Organization of Information Security Asset Management Human Resources Security Physical and Environmental Security Communications and Operations Management Access Control Information Systems Acquisition, Development and Maintenance Information Security Incident Management Business Continuity Management Compliance

Again ISO 27001 needs to be implemented in gradual manner, starting from a sector-wide vision developed by HQIT and then extended later to the Operating Utilities.

Project Management Standards

The two most widely accepted standards for project and program management of IT (and in fact non-IT ) projects are:

Project Management Institute (PMI) - see http://www.pmi.org/. The Project Management Body of Knowledge (PMBOK) available here is a comprehensive reference for PMI project management standards detailing the various phases of a project lifecycle.

PRINCE2 (Projects in Controlled Environment) is an alternative methodology covering the organization, management and control of projects. PRINCE was first developed by the Central Computer and Telecommunications Agency (CCTA), now part of the Office of Government Commerce (OGC), in 1989 as a UK Government standard for IT project management – see http://www.ogc.gov.uk/prince2/index.html.,

http://www.pmi.org/

http://www.ogc.gov.uk/prince2/index.html


Either standard could be adopted by the HQIT.

Note that, as an integral part of quality program and project management, we also strongly recommend that upon the completion of all major IT projects a “lessons learned” document is prepared – ideally, in this case, by a neutral consultant. This will identify gaps in the implementation approach and benefits realization and recommend mitigation measures to be incorporated into future IT projects.

ISO 35.080 (/IEC 27001 – Software Development Life Cycle (SDLC)

This ISO standard establishes standards covering the SDLC including software development, documentation, and design and use of internet applications. (See http://iso.nocrew.org/iso/en/CatalogueListPage.CatalogueList?ICS1=35&ICS2=80&ICS3=&scopelist for a description of the standard). This will be an essential best practice for HQIT given it will still need to develop and maintain some applications in-house and/or work with outside vendors on an assisted in-house development basis.

ISO 17799:2005 - Business Continuity Management

Both ISO 17799:2005 and ITIL emphasize the need to plan and implement a business continuity management strategy. Such a strategy involves the development of recovery plans following any major incident causing, or potentially causing disruption, of service. Under business continuity, IT services are provided to an agreed level, within an agreed schedule. IT Service Continuity is therefore a component of Business Continuity Planning (BCP). A description of this standard is available at:

http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=39612&ICS1=35&ICS2=40&ICS3=. The standard contains best practices of control objectives and controls in the following areas of information security management:

Security policy; Organization of information security; Asset management; Human resources security; Physical and environmental security; Communications and operations management; Access control; Information systems acquisition, development and maintenance; Information security incident management; Business continuity management; Compliance

A business continuity management process should be implemented to minimize the impact on the organization and recover from loss of information assets (which may be the result of, for example, natural disasters, accidents, equipment failures, and deliberate actions) through a combination of preventive and recovery controls. This process should identify the critical business processes and integrate the information security management requirements of business continuity with other continuity requirements relating to such aspects as operations, staffing, materials, transport and facilities.

The sector should look carefully into business continuity management and develop plans that not only cover hardware, communication, software but also human resources, business processes and legal aspects. The ITMP (as part of its Infrastructure Working Group) provides a first line proposal for a secure infrastructure network design that allows building a fail-over strategy to allow operating

http://iso.nocrew.org/iso/en/CatalogueListPage.CatalogueList?ICS1=35&ICS2=80&ICS3=&scopelist

http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=39612&ICS1=35&ICS2=40&ICS3

http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=39612&ICS1=35&ICS2=40&ICS3


entities and headquarters to use each other’s email and internet backbone in case a failure happens.

8.1.16. IMPLEMENTATION APPROACH FOR POLICIES AND PROCEDURES

Again, adopting the international standards, updating IT business processes, and developing the detailed IT Policies and Procedures needs to be done in a phased manner with expert involvement. We propose this be done as a part of the technical assistance to the HQIT proposed below. The laws of Jordan need to be applied wherever possible to ensure compatibility with the standards.

8.1.17. USAID’S ROLE – TECHNICAL ASSISTANCE TO THE HQIT

USAID has a pivotal and logical role to play in establishing the HQIT. By funding a long-term technical assistance project to explicitly build the sector’s IT technical and management capacity, USAID can properly reduce the sector’s dependence on consultants, build real sustainability, while all the time protecting its other investments in ITMP components. The development of the ITMP has clearly shown the success of a participatory approach and this would be continued into the technical assistance.

The long-term assistance project will establish the HQIT organization, comprehensively train its staff in key technical and management skills in a manner targeted to short-term work plans, build and transfer capacity to plan and manage IT projects, and provide on-the-job coaching to implement the ITMP systems, hardware and networking components. The technical assistance contractor will also provide assurance to USAID that the ITMP is properly implemented, and that its identified business benefits are realized.

We propose that this technical assistance run for a total of 5 years – but with declining technical assistance as HQIT capacity is built. An interim IT Manager for the HQIT (functioning in a “CIO” role) would be provided by the project through corporatization (which we envision would be possible 18-24 months after the start of the technical assistance). Ideally this individual should be a returning Jordanian American with strong IT and leadership experience. The CIO will be selected, according to predefined evaluation criteria, by members of the ITMP Steering Committee with the help of USAID. At corporatization this individual would hand over to an externally recruited or internally promoted CIO.

Given the size and duration of this investment - estimated at $8.6M over 5 years - it will be very important that regular evaluation of the project’s success be carried out in order to provide checkpoints for continuing with its funding. A continual monitoring and evaluation process would be established. Performance indicators (output-based as far as possible) would be established at the start of the technical assistance for both key HQIT staff and the Consultant. Progress against these should be evaluated at least annually. Note that the HQIT staff performance indicators will flow logically from their individual goals set annually as part of a formal performance appraisal process – and ideally linked to performance bonuses. Establishing best practice HRM processes and systems will be an important part of capacity building and will establish HQIT as a center of excellence not only in IT operations but also in its own management. Corporatization cannot happen if this is not achieved.

8.2. Asset Management - Maintenance Management (AM-MM)


Asset and maintenance management is a fundamental core competence in any water utility or irrigation authority. Water and wastewater treatment plants and pumping stations (usually termed “facilities” in asset management – because of their discrete geographical location) must operate efficiently with very high availability, and at minimum maintenance cost. Tracking their condition and implementing advanced preventive maintenance strategies like condition based or reliability centered maintenance is the key to ensuring such performance.

Network assets are even more important and much more challenging to maintain because of their geographically distributed (and often underground) nature which requires strong GIS integration. Reducing non-revenue water (NRW) is the single most important performance issue in the Jordanian


water sector and its technical component depends critically on the condition of network assets (pipes, valves, meters etc.). Network asset maintenance is a distinctive and defining requirement of utility operations. This is widely recognized in the sector and has resulted in a number of very effective donor-supported projects. However, systems support for effective planning and targeting of preventive maintenance remains very limited. Other important asset classes that must also be maintained in a utility include its vehicle fleet, buildings and offices, SCADA infrastructure, and IT assets.

Modern AM-MM systems can manage all the above asset classes in one application. They are also tightly integrated with (and sometimes even include their own) supply chain functionality. Again it is important to note that utilities operate on a “just-in-case” inventory policy – spare parts must be stocked in quantities to just meet anticipated repair and maintenance needs. This is quite different from the manufacturing inventory paradigm of “just-in-time” that most supply chain functionality supports. Operating and maintenance needs are the key driver of inventory management in utilities.

Our Working Groups were organized as separate AM-MM and Supply Chain Groups, so their recommendations are presented separately here. However, the business case is really is a combined one because of this need for tight integration between the two components. Implementation of the two components would also be done in parallel so that the integration schema between Oracle Supply Chain modules and the selected AM-MM solution can be optimized.

Major functionality and best practice embedded in these AM-MM systems includes: Condition-tracking and management of the maintenance of all sector assets – plant, network,

dams, vehicles, buildings etc. In one system Optimized management of maintenance schedules and planned shutoffs Optimized management of maintenance personnel and outside contractors Management of special tools and heavy equipment Tracking of maintenance costs – labor and parts Optimization of spare parts inventory on a “just-in-case” basis – with full visibility into all stores

sector-wide for appropriate parts sharing Full mobile-enabled work order management direct to the field crews Management of safety lockouts and clearances Automatic generation of preventative and reliability-centered (with scada integration) work-orders Maintenance budgeting Optimum targeting of maintenance and rehabilitation priorities

Note that AM-MM requirements are not driven by back office finance and accounting needs. We are not here discussing tracking just the financial value of assets, but their operational condition, maintenance needs and total cost of ownership25. Finance and accounting are only the recipients of asset values and maintenance costs – operations is the driver. While it is very important that any AM-MM system be fully integrated with the Oracle Financials modules currently under implementation, (including the comprehensive and detailed fixed assets register that we understand is now to be developed by the FAS project) AM-MM requirements should be specified by O&M users, not financial users.

25 Total cost of ownership monitors the full “cradle to grave” cost of deploying an asset over its entire life – from specification, design, operation and maintenance to retirement. Monitoring and minimizing the total cost of ownership enables better specification of future assets and better management of rehabilitation and replacement.


This ITMP component discusses the “as-is” situation for asset and maintenance management – in terms both of business processes and systems support. It then identifies future business requirements, and develops a high-level benefits justification. Potential solution options are then identified and compared before making a recommendation, presenting cost estimates for implementation and summarizing the overall business case to justify funding.

The solution options evaluated included in-house development, assisted in-house development, implementing the Oracle e-Business suite EAM module and implementing a best of breed AM-MM system that can be optimally integrated to Oracle supply chain modules. Our evaluation of these options shows a best of breed solution is the preferred solution here, but the sector may want to include the Oracle e-Business Suite EAM module in a formal and objective systems selection to meet AM-MM requirements. Assuming a best-of-breed solution, total implementation costs across all Operating Utilities (including JVA) are estimated at approximately $4.7M.

The largest quantifiable improvements in sector performance and strongest business case identified in the ITMP will come from implementation, across all Operating Entities in the sector, of a best of breed AM-MM system that is optimally integrated with the appropriate set of Oracle e-Business suite Supply Chain modules. The business benefits derive principally from annually-recurring reductions in non-revenue water, energy savings and a large additional one-time inventory reduction.

Our analysis clearly shows that the AM-MM system has a strong benefit / cost case – even without counting the associated supply benefits, and after correcting for ongoing support costs. The real “cost” to the sector is actually a net cash inflow of some $2.7M (based on discounting the 10 year benefits stream at 10% and subtracting the estimated implementation costs). In fact, the combined AM-MM-Supply Chain benefit / cost case comes close to paying for the whole ITMP – even after deferring the benefits of its implementation because of its late phasing in our proposed implementation schedule.

8.2.2. AS-IS SITUATION

Business Processes

Example high level business process descriptions developed by the Working Group are provided in Volume II of this report. However, the current situation can be characterized overall (there are local exceptions in some cases) by the following points:

Separate maintenance processes are defined for wells, water and wastewater networks, pumping and booster stations, dams, reservoirs, water and wastewater treatment plants, vehicles, evaporation and monitoring stations, the King Abdullah canal and side-wadis, and other equipment including furniture and fixtures and communications and IT equipment

Often there are separate system for service management (customer complaints) and maintenance of meters is generally managed by Subscriber departments, not by O&M staff

Maintenance is overwhelmingly corrective based (vehicles are the one exception) Maintenance processes are not standardized across the sector Maintenance expenditures are not necessarily targeted well (a disproportionately high amount

goes to vehicles) Historical and current asset condition data is not generally available across the sector (although

e.g. For the last three years NGWA and LEMA have been using both GIS and the DCMMS system described below to track network asset condition and age)

Integration with supply chain is weak Maintenance budgets are developed primarily from experience, not from operational and

maintenance data


While advantage is taken of vendor-supplied maintenance for some newly-commissioned assets, there are no sector-wide plans to outsource maintenance (although again NGWA is planning to use outside contractors for a meter replacement program)

Maintenance budgets are generally very limited – emphasizing the need to carefully optimize maintenance procedures and resources

Considerable technical support (notably through the German funded OMS project) has been provided for O&M process improvement - with some simple systems support included

NRW levels vary widely across the sector – with WAJ averaging around 46% (generally assumed to be split 50:50 between technical and administrative losses) – but lower NRW levels clearly correlate with the quality of maintenance processes in place

Energy costs in WAJ account represent close to 35% of total revenues

Systems Support

There are no standard asset or maintenance management systems in place sector-wide. Systems support varies widely from one Operating Utility to another, with individual point applications, often developed in-house or donated by donors, supporting individual asset classes. Not all classes of assets are covered in all Operating Utilities. There is increasing use of GIS tools (from the ESRI ArcGIS product suite) to track and communicate asset locations and provide asset type and some condition information – though standards for data management are not yet consistent across the sector and applications tend to be viewer type rather than directly-interfaced to asset and maintenance applications (DCMMS does have basic GIS integration).

Examples of point applications at LEMA include an Oracle based in-house developed Vehicle Maintenance Management System, ALFA which is a tailor made inventory application for spare parts tracking that is not integrated with LEMA, a Microsoft Access based system for facilities maintenance management and an ArcView based GIS driven customer complaint system.

At NGWA and at AWC, there is good use of DCMMS – see http://dcmms.sourceforge.net/ - an open-source web-based freeware application developed in Jordan which is used to support maintenance crew dispatch and record and analyze customer complaints and repairs in water supply networks. DCMMS is interfaced with the billing system COBUS-II and GIS – but there is no integration between DCMMS and Oracle Financials. While use of maintenance costing and resource consumption data is still limited, the DCMMS system provides a major benefit in tracking the location, type and assets involved of pipe bursts. This facilitates much improved rehabilitation planning.

JVA has a custom-built job costing system at its Central Workshops in Fannoush – this is interfaced with Oracle FAS but the Supply Chain modules are not currently in use because of a lack of key users and an ongoing change in the inventory coding system.

8.2.3. MAJOR IMPROVEMENT AREAS

Significant savings in NRW and energy costs can be achieved by implementing modern AM-MM applications with embedded best maintenance practices. Process reengineering would follow these practices. The major improvement areas include:

Institutionalizing a well planned and fully optimized preventative maintenance business cycle Better targeting of maintenance budgets and resources to optimize O&M benefit/cost Better planning of outages and increased availability of assets Improved repair/replace decisions and better rehabilitation plans Improved customer complaint response time

http://dcmms.sourceforge.net/


Reduction and optimization of spare parts inventory stocks – recognizing that supply chain should be driven by maintenance activities (see supply chain component)

Improved maintenance resource allocation and contractor management Optimization of crew mobility and commuting time Better leverage of equipment warranties Extended asset lives Automated work order production and processing from financial and safety approvals with full

capture of labor and materials cost elements and appropriate capitalization

8.2.4. FUTURE BUSINESS REQUIREMENTS

Rather than simply automating current maintenance processes, an AM-MM system should meet anticipated future business needs, include best practices and be able to cope with any requirements specific to the Jordanian water sector. Future business requirements (almost all now accepted best practice) therefore include:

Reduction of technical NRW through more effective, preventative maintenance Assisting in the reduction of administrative NRW though improved meter maintenance Reduction of energy costs due to improved pump and equipment maintenance Full integration with existing and planned SCADA systems to support reliability-centered

maintenance strategies Ready availability of accurate information (historical, budget and actual) for maintenance

budgeting and rehabilitation studies Optimized scheduling of maintenance staff and special tools and equipment Full and easy capture of all job costing data Tight integration with supply chain and inventory management functionality in existing systems

with “just-in-case” optimization of spare parts stocks Full mobile support of maintenance crews from receipt of approved work orders, and provision of

asset condition and location information, and automated truck inventory management Support for bar code and radiofrequency identification device (RFID) tracking of critical assets Seamless integration with GIS, SCADA, CIS/Billing and Financials systems as required On-line parts catalogues and maintenance procedures Planned management of plant, pump and other equipment outages Support for the full range of maintenance strategies from corrective, through time based, to

preventative condition-based and reliability centered Comprehensive and fully and easily customizable reporting with full “drill-down” capability for

ad-hoc queries

From a Jordanization perspective, Arabization is essential along with simple, easy to quickly navigate screens to enable use of the system by all levels of O&M staff. Local vendor support is also a requirement. Compliance with GoJ procurement laws is a requirement also and may affect data exchange with the Oracle Purchasing module.

8.2.5. BENEFITS IDENTIFICATION

Tangible benefits from properly implementing an AM-MM system so that it fully realizes targeted improvements in the sector’s performance are primarily in reduction of NRW and energy savings. In the long run maintenance costs would also likely be reduced as the cumulative impact of switching


from corrective to preventive maintenance is realized – but although tangible this is very difficult to estimate so it has been left out of the business case calculation. Additional savings will also come from optimizing spare parts inventory levels, ensuring materials availability so corrective maintenance can always be completed quickly, and reducing inventory losses – but these are considered under the Supply Chain component that follows.

Less easily quantified benefits include better management of maintenance crews and outside contractors, reduction of plant and equipment outages, improved service response time, fuel savings and better targeting of maintenance and rehabilitation activity, and improved safety levels.

Estimation of Tangible Benefits

Our Working Group made two critical assumptions in estimating the benefits from an AM-MM implementation (discounting Supply Chain benefits for now – these will be consolidated in the Supply Chain component section):

NRW savings possible are estimated at 1.5% in absolute reduction terms Energy savings possible are estimated at 1%

The detailed benefits calculations are shown in ANNEX 6 – AM-MM-SUPPLY CHAIN BUSINESS CASE along with the full business case itself (discussed further below). Estimated total annual savings from NRW reduction and energy savings are ~ $1.6M with ~ $1.lM coming from the NRW savings component. Note that the calculations assume these benefits do not increase year on year as they are likely to in practice – up to some plateau value. It is quite correct and conservative to count the base savings annually.

It is impossible to estimate these savings with any precision in advance of the implementation, but our Working Group and NGWA leadership consider them to be conservative. NRW savings were valued at the average retail tariff and corrected for the contribution margin from associated wastewater billing. Ongoing software support costs beyond the initial 3 years assumed to be funded by USAID are netted out accordingly. Note that JVA makes very little contribution to the business case because of its very low realized revenue on NRW saved.

8.2.6. EVALUATION OF AVAILABLE SOLUTION OPTIONS

A number of different solution options were considered for the AM-MM system – from custom in-house development through assisted in-house development to implementing the Oracle e-Business suite Enterprise Asset Management (EAM) module to implementation of a Best of Breed system.

In-House or Assisted In-House Development

In-house development (assisted or not) is not a realistic option for an AM-MM system. The complexity of asset management does not lend itself well to this approach – especially with the high degree of implementation to GIS, SCADA, financials and CIS/Billing systems that may be required. The Consultant is not aware of any fully comprehensive AM-MM system capable of meeting the future business requirements defined above that has been developed in-house. While such an approach has the advantage of low cost it is a very high risk proposition unless software development lifecycle standards such as ISO 35.080 are thoroughly embedded and rigorously followed. In-house development would also take an inordinately long time and consume a very high level of programming resources. There are unlikely to be significant business process improvements resulting from such an approach – as AM-MM best practices knowledge resides outside the sector.

Assisted in-house development is likely just to increase the cost but not necessarily the quality of the solution in this case, and extensive due diligence would need to done on their ongoing support capacity. Ownership of the source code could probably be arranged but likely at substantial additional cost. These in-house approaches are not considered further.


Oracle e-Business suite Enterprise Asset Management (EAM) module

At first sight this appears to be a very attractive solution option. It has the obvious advantage of built in integration with all other components of the suite. It has also already been licensed as part of the e-Business suite bundle purchased by the FAS project. However, closer examination of its functionality reveals serious shortcomings when compared to best of breed offerings. As stated above, having already bought the module is no automatic justification for its implementation – especially since there was no formal systems selection for this module (or indeed any other) when the Oracle e-Business suite bundle was purchased. Implementation decisions should always be based on a careful examination of the functionality of each product. Implementation costs always significantly exceed license costs anyhow so the apparent cost advantage of Oracle EAM is smaller than it first appears.

Examination of Oracle’s data sheet for the EAM module readily confirms its underlying manufacturing (i.e. limited to plant facilities) paradigm. Some third party add-ons (e.g. Exor) are available to provide network asset capabilities but these are largely unproven, have limited functionality and have been implemented only by smaller utilities. Integration with financials is stressed – but as stated above AM-MM is an operation, not financials driven.

Independent market analysts constitute a more objective source than any vendors – the most well known of these being Gartner26 who publish their so-called “Magic Quadrant” periodically for all major systems areas. The quadrants rank vendor offerings on two dimensions – market presence and performance. To the best of the Consultant’s knowledge, Oracle EAM has not even featured in these rankings in recent years. With the exception of SAP (again more oriented to manufacturing industries), no major vendor of ERPs makes either the Leader or Challenger category. (Note of course that it would not generally be logical to try to integrate ERP modules from different vendors). The market share (across all industries, not specifically utilities) for Oracle EAM is believed to be in the 3% range compared to 10-14% for the Leader category products. Utility implementations are believed to be very few – and mainly restricted to smaller municipal utilities.

The Working Group’s view of the EAM module recognized its easy integration with Oracle FAS advantage, but found the product offering to be very generic with no specific business KPIs or domain expertise relevant to the water sector being offered. The total costs were considered to be likely very similar to a best of breed implementation because of increased customization required. Business case benefits were also viewed as likely to be lower than for a best of breed system.

Best of Breed AM-MM systems

Best of breed systems have typically been developed by large niche vendors who specialize in asset-intensive industries like utilities, chemicals and resource extraction. The AM-MM field is unusual among software products for the plethora of niche vendors it supports. The future functionality requirements identified above are easily met by most best of breed products. Best practices are deeply embedded in these systems and continually improved over time. Easy integration to standard ERP platforms like Oracle is now a market requirement. Best of breed systems are far and away the favored solution for AM-MM applications – which accounts for their majority ownership of the Leader category in independent market rankings. Well known vendors who are strongly positioned include:

MRO Software with their Maximo product – see http://www.mro.com/ Indus – see http://www.indus.com Mincom - see http://www.mincom.com

26 The latest Gartner Magic Quadrant for AM-MM systems “Magic Quadrant for Enterprise Asset Management, 1H06 was published in March 2006 and is available for purchase at www.gartner.com at a cost of $495

http://www.mro.com/

http://www.indus.com/

http://www.mincom.com/


IFS (actually an ERP vendor that also offers a standalone AM-MM solution) – see www.ifsworld.com

A vendor presentation by MRO was given to our Working Group, based on their large Middle East presence (including implementations at Abu Dhabi Water and Electricity and Oman Wastewater) and Arabized product offering. As the ITMP is vendor-neutral, selection of MRO for the vendor presentation is in no way an endorsement of their particular product.

The Working Group saw the main advantages of a best of breed solution to be its embedded best practices specific to the utilities domain, the availability of built in KPIs, and good availability of user documentation specific to the domain. On the negative side, total implementation costs are high if not justified by a clear business case with and implementation quality assured by realization of that case. Arabization and local support may be an issue for some vendors and the implementation period can be long.

Final Recommendation – Formal Systems Selection (BoB vs. Oracle EAM)

On balance, our Working Group came out in favor of a best of breed solution. (See the detailed comparison (unweighted) in Table 6 below). While this is also the Consultant’s recommendation, there is no reason that Oracle EAM could not be included in a formal systems selection process facing off against a range of best of breed offerings27. Indeed, given the importance of optimum integration to Supply Chain functionality (in order to reap the large business benefits also available there from inventory and loss reduction) this may be a good choice to make.

The typical systems selection process has extensive end-user (i.e. O&M staff) involvement. It begins with the issuance of a Request for Information (RFI) which outlines the business requirements at a high level and may ask for a list of reference clients who have implemented the product as well as and specify some “drop dead” issues like proven Arabic interface. Generally analysis of the responses to an RFI allows a short list of vendors to be developed.

In parallel with the issuance of the RFI, detailed functional system specifications requirements should be prepared and weighted according to their importance. Upwards of 150-200 criteria specific to both current and future business requirements are included here, along with any critical best practices and “Jordanization” requirements. The functional systems specification is then issued as part of a formal RFP which also defines the relative weightings given to functionality and price (typically 80/20)28. Short-listed vendors are then asked to self-score their products (from 1 (does not meet requirement) to 5 (fully meets requirement)) against these criteria and a total weighted score is then calculated for each vendor response.

Careful analysis of vendor’s strengths and weaknesses are also made from the scorings. These enable the preparation of scripted demos that are used to compare vendor’s relative strengths and / or weaknesses. Typically the 2-3 most highly scoring vendors are invited to a demo and given 3-5 specific business requirements to demo on their system. There is no necessary requirement for all vendors to receive the same scripts but there should be some level playing field comparisons.

After writing up a detailed report on the evaluation and demos, the final step is to visit vendor reference sites before finalizing the selection. Particular attention should be paid during these visits to demonstrated realization of targeted business benefits, quality of implementation, effective transfer of skills to users and IT support staff and post go-live support.

27 We strongly recommend the use of a waiver to obtain permission to source all ITMP software components on a worldwide basis using Geographic Code 935 including Cooperating Countries. This will ensure the maximum available choice – particularly where best of breed solutions are recommended. 28 GoJ procurement regulations place a very heavy weighting on price. For a products as complex as operations and back office software this is not recommended. Use of USAID procurement rules allows the more appropriate weighting to be used, thereby ensuring a much better functional fit.

http://www.ifsworld.com/


CCuussttoomm DDeevveellooppmmeenntt EERRPP BBeesstt ooff BBrreeeedd Functionality Moderate 2.5 Generic 3 Best Practice 5 Ease of initial customization V.good 3.5 Moderate 2 Good 3 Best practices Limited 2 Moderate 3 V.good 4 Ease of integration Difficult and

time consuming

2 Good 3 Good 3

Ease of upgrade Difficult 2 Good 3 Good 3 Stability if changes made Low 2 Good 3 Good 3 Risk – Reverse Scale Logic High 1 Medium 2.5 Minimum 3.5 Documentation No guarantee 1 Good 3 Good 3 Total cost – Reverse Scale Logic Low 1 High with less

benefits 2 High but more

benefits 3

Arabic language support V.Good 4 No guarantee unless Oracle

2 No guarantee unless MAXIMO

2

Maintenance / local support Risky 1 Risky 1 Risky but safer than ERP

2

Total 22 30.5 34.5 Fitness = Total / (11*5 =55) 40% 55% 62%

Note: 11 is Number of Categories, 5 is the highest Score

Table 6 - Comparison of AM-MM Solution Options

8.2.7. COSTING ASSUMPTIONS

The cost estimates we developed include the estimated costs of integration with Supply Chain and the need to do additional configuration work on the Oracle PO and INV modules in order to realize the identified Supply Chain business benefits (again discussed in the Supply Chain section). The estimate was derived using both vendor inputs and benchmark multipliers common to most implementations. The total cost of implementation based on an estimated 156 users (covering all WAJ and JVA operations) is estimated to be in the $4.7M range.

Note that the final costs of implementation can only be determined during negotiations with the winning vendor. Effective negotiation skills are another HQIT requirement.

8.2.8. BUSINESS CASE

With benefits and costs both now estimated, the full business case can be developed – see ANNEX 6 – AM-MM-SUPPLY CHAIN BUSINESS CASE29. Assuming a very conservative 10% discount rate (easily justifiable as the opportunity cost of government funds which typically return much less), the net present value of the AM-MM implementation alone is estimated at $2.7 M. This is without any consideration of additional Supply Chain benefits (these are discussed later under that component). This number represents the net value of the projected benefits of the AM-MM implementation – i.e. there is no net “cost” to the sector of completing this implementation – instead benefits worth $2.7M at the time of implementation can be expected.

29 Note this business case presents both the aggregated AM-MM-Supply Chain case and the AM-MM and Supply Chain components separately.


The impact of the AM-MM implementation (combined with Supply Chain) on the overall business case for the ITMP is examined in Section 12. Together the combined system comes very close to paying for the whole ITMP (i.e. disregarding any tangible but difficult to quantify benefits from all other proposed systems implementation components in the ITMP).

8.2.9. RISK FACTORS AND THEIR MITIGATION

Whatever solution is finally selected, its success will only be as good as its implementation. A number of risk factors need to be mitigated to ensure this. Vendor and / or implementation consultant experience should be diligently checked as part of the selection process. HQIT will need to bring its best program management skills and a team of users and IT support staff will have to be committed full-time to the implementation effort. Sector readiness both in terms of human resources and hardware and communications infrastructure must be in place and proven before implementation starts. Warehouse consolidation and potential business process improvements to inventory management processes should be studied prior to implementation, and a detailed and accurate fixed assets register and inventory stock take (with elimination of any duplicate item names or codes) completed, and the inventory classification system reviewed.

We recommend a phased roll-out approach based on training a dedicated Core Support Team (CST) of O&M personnel, users and IT support personnel. A pilot implementation (with NGWA) being the most likely candidate would be program managed with full tracking of realized benefits against the business case. The CST would work closely with the vendor and / or implementation consultant to develop and sign off on appropriate detailed configuration and user-friendly screens and optimize Oracle integration and reconfiguration schema (to realize the identified Supply Chain benefits). HQIT would provide robust quality assurance and acceptance testing and ensure extensive training of users and support personnel by the vendor. Rollout of the system to other Operating Utilities would then be done by the fully trained CST.

Training plans and materials as well as reference documentation must be made readily available in Arabic by the vendor – for both technical and functional staff.

Other risks needing to be mitigated relate to post-implementation support. Recurring support costs are included in the business case so they can be absorbed without issue. However, appropriate due diligence must be carried out to assure the quality, cost and ready availability of both routine and special ad-hoc support.

8.2.10. TIMING OF IMPLEMENTATION

We do not recommend the sector take on this implementation until well into the ITMP period. (NGWA also prefers not to start implementation before mid-2008 at the earliest because it will be preoccupied with other initiatives in including completing and embedding its FAS implementation). The sector’s recent experience with systems implementations has not been very positive and it is clear that extensive capacity needs to be built internally to properly manage large scale implementations. This will take time. Our suggested phasing of the AM-MM implementation is discussed in Section 10.

8.2.11. USAID’S POTENTIAL ROLE

USAID would support AM-MM implementation through its long-term technical assistance to the HQIT. This would ensure a professional systems selection takes place, followed by quality implementation with full skills and knowledge transfer. The vendor implementation contract would be managed by HQIT according to USAID procurement procedures. USAID could finance all or part of the implementation cost themselves – but substantial co-financing of this initiative by GoJ is also justified by the business case.

8.3. Supply Chain


The Supply Chain Working Group is closely linked to the AM-MM Group, because of the fact that


the real driver of inventory management in a utility environment is operations and maintenance. Experience of other utilities when implementing Supply Chain systems consistently shows that major benefits can be realized from optimizing supply chain processes and systems. The largest benefit is typically a one-time reduction of inventory. In most cases, “strategic sourcing” (leveraging centralized purchasing power) is another major (and annually recurring benefit) – however current GoJ procurement regulations severely restrict our potential to realize these benefits in Jordan.

Major improvement areas identified by the Working Group include potential consolidation of POs, reduction in the number of PO errors, and reduction of the PO cycle time. A large one-time reduction in inventory is possible, as are annual recurring reductions in inventory losses. Consolidation of Sub-Warehouses and providing the consolidated set with networking connectivity to enable access to supply chain systems functionality are also seen as opportunities.

A unique feature of this Working Group is that, to a limited extent, supply chain functionality is already being implemented across the sector using the Oracle e-Business Suite Purchase Order (PO) and Inventory (INV) (or Warehouse Management) module. However, the focus of this implementation is very much financial. Physical optimization (i.e. by item, not value) of purchasing and inventory management was not included in the FAS project’s scope and no business benefits were targeted at the outset of the implementation.

The solution options here therefore logically reduce to choosing between reconfiguring the PO and INV modules to optimize the physical side of supply chain, or using the proposed AM-MM system to do this instead. In practice a mixture of both options may be needed. In both cases, optimized integration between the AM-MM and PO and INV modules will be required, with mirroring of databases to keep the two systems in full synchronization. The final choice is actually a difficult one and early vendor input, once again through a formal systems selection process is the only way to objectively solve it. The sector should resist rushing to solve the supply chain issue immediately through standalone PO and INV module reconfiguration, until a full evaluation of the combined AM-MM-Supply Chain options has been made.

This ITMP component discusses the “as-is” situation in terms of business processes and systems support. It then identifies future business requirements, and develops a high-level benefits justification. Potential solution options are then identified and compared before making a recommendation, presenting cost estimates for implementation and summarizing the overall business case to justify funding.

Our business case analysis clearly shows that the Supply Chain opportunity is very large – with an estimated net benefit of $12.7M to the sector (based on the discounting, over 10 years at 10%, of a 5M JD one-time inventory reduction and annual inventory loss reductions of 1.05M JD, with an estimated implementation cost of $0.7M. All of these assumptions are considered conservative. Again, the combined AM-MM-Supply Chain benefit / cost case comes close to paying for the whole ITMP – even after deferring the benefits of its implementation because of its late phasing in our proposed implementation schedule.

8.3.2. AS-IS SITUATION

Business Processes

Supply Chain operations are centered on two business processes: A description of each follows:

Purchasing

The Purchasing process is decentralized among multiple entities: WAJ, NGWA, JVA, and LEMA. Each of these entities has their own Purchasing sub-department which follows the Finance Department of that entity

The Purchasing process follows four major steps: Purchase Requisition, Tendering, Evaluation, and PO Generation and Awarding


The Purchasing process follows very well defined procedures established by the “Supplies Act”, for material tenders, and the “General Works Bylaw” for works tenders. The procedures have defined purchasing methods and authorities. The Supplies Act is enforced by the General Supplies Department of the Ministry of Finance

Some minor variations exist between the 4 entities in the procedures followed during a procurement process. For example:

Committees’ authorities differ between WAJ and JVA. WAJ has a central committee with is authorized to handle tenders with a ceiling of 5 M JD. JVA forms multiple committees; their authority ceiling is 20,000 JD

At WAJ Direct Purchases is more decentralized, while at JVA it’s more centralized and controlled

WAJ has the authority to import material from other countries; JVA does not The annual Procurement Budget is estimated by each department separately, and sent to the

Ministry of Finance in the Dec – Jan timeframe. Departments implicitly expect that the Ministry of Finance will only grant 50% - 60% of the requested budget

Budget allocation is dependant on Parliamentary approval. The entities do not receive formal approval of the budgets until Apr - May of each year. This leaves the Purchasing Departments without a budget for almost 1.5 quarter of the year

If Purchasing departments do not spend the allocated budget by Dec of every year, they will loose the remaining allocated budget for that year. Therefore (absent reform of GoJ Procurement regulations and processes), Purchasing departments would benefit by greater speed and efficiency in processing Purchase Requests in general, but especially at year end, to avoid loosing the allocated budget

Inventory Management

Inventory management is decentralized among WAJ and JVA. NGWA is considered semi-independent, as they operate their own warehouses, but they are still governed by WAJ main warehouse

The Inventory process includes 5 major activities: Receiving, Issuance, Custody Management, Item Management, and Stock-taking

Inventory management is controlled by Central warehouses: Ein Ghazal for WAJ, and Houfa for NGWA. The Central warehouses are responsible for managing the Sub-Warehouses. The Sub-Warehouses are mainly used for inventory distribution. JVA does not have a Central warehouse, as they follow a specialized stores approach with each warehouse specializing in managing one material category

In WAJ, there are a total of 54 Central and Sub-Warehouses distributed roughly equally across the Northern, Southern, and Middle governorates. JVA has an additional 10 warehouses

The total value of inventory fluctuates throughout the year because of budget timing and funds availability – reaching its peak in mid-late summer and falling to a minimum in mid-winter. We estimate total sector inventory varies from 15 to 30M JD over the course of a year.

WAJ and its Operating Utilities account for approximately 13 to 27 M JD, while JVA accounts for 2 to 3 M JD approximately


Systems Support

Currently, Purchasing and Inventory Management across the sector are primarily supported manually (e.g. card indexes) or by using Excel sheets, but this situation is changing rapidly with the ongoing implementation of the Oracle e-Business suite Purchase Order (PO) and Inventory30 (INV) modules. This implementation primarily focuses on the financial aspects of Purchasing and Inventory, in order to prepare the data required for other financial modules. Optimum configuration of comprehensive Purchase Order and Inventory management modules from a physical item control perspective is out of scope for FAS.

Purchasing

At WAJ the FAS- PO module has been implemented to handle PO generation to closing. Tendering is still done manually.

At JVA and NGWA purchasing is still handled manually and supported by Excel sheets, FAS is still in testing phase.

At LEMA, purchasing is also handled manually and supported by Excel sheets. FAS implementation was stopped.


Generally, systems support is focused on the Central warehouses, while Sub-Warehouses rely on manual card indexes. The geographical scope of the Oracle INV module covers 3 WAJ warehouses: WAJ - Ein Ghazal, JVA - Dirar, and NGWA – Houfa. Sub-Warehouses are out of scope for FAS.

At WAJ Central warehouse, 95% of operations are still handled using Cobol. Currently FAS is only used for 5% of operations.

User-friendliness is a major issue affecting this, but we understand that there are also integration issues between the PO and INV modules, the “stock on hand’ concept used by WAJ is not configured and invoices for transfers to Operating Utilities are not included. We understand that these items are being considered for inclusion in an extension of the FAS project, but were unable to obtain a SOW from USAID for this by the date of this report.

At WAJ Sub-Warehouses, inventory management is handled entirely using manual cards because of the lack of connectivity.

At JVA Central store, a combination of Excel sheets, manual card indexes, and the Oracle INV module is being used. Difficulties in identifying or hiring super-users, combined with ongoing changes in the inventory coding system, are understood to be the barriers. The remaining warehouses rely on manual card indexes – again for lack of connectivity reasons.

At NGWA, inventory management is done using manual cards but the FAS PO and INV modules are expected to go-live sometime later this year.

LEMA uses a combination of a simple Access database, and manual card indexes (it has so far been out of the FAS project scope – although this may change given its imminent corporatization)


The following major improvement areas were identified:

30 Or Warehouse Management module


Purchasing

Optimize PO cycle time (from Needs Identification to PO Awarding) – to speed, and increase the efficiency of the PO process. Currently, the manual process causes delays in material requisition which could affect the performance of a project, or of the department requesting the material

Reduction of PO errors - errors in PO information are estimated at approximately 5%. Errors result from manually exchanging PO information between multiple parties (the Department originating the Purchase Request, the Purchasing Department, the Warehouse, and Finance Department). Typical errors include material specifications, number of items requested, value of requested items etc.

Automating the PO generation process would reduce the error rate. If limited desktop access is a barrier to broader deployment of the PO module (along with possible incremental license requirements, a simple way to do that would be to provide access to a Purchase Requisition e-Form through the self-service terminals suggested under the Collaboration component of the ITMP. These forms would be routed electronically to Central Purchasing and could be automatically sorted within the Collaboration suite to enable a consolidated PO to be raised.

Consolidation of POs – both within an entity (e.g. consolidating direct purchases in JVA), and potentially among multiple entities (WAJ and JVA). Currently, determining material requirements, and generating POs is decentralized among the entities, resulting in duplication of POs, and overstocking of some inventory items. The PO module could be reconfigured to support automatic consolidation of POs. This should assist in getting a better price and quality from the vendor. It will also reduce overstocking of items


Optimize inventory levels to reduce excess inventory and avoid inventory shortages – as highlighted above, we estimate that 50% of the total inventory value is currently “just-in-case” inventory. While some of this is likely justifiable on the grounds of unexpected maintenance needs, there appears to be scope for significant (one-time) inventory reduction. When implementing supply chain systems, most utilities discover large potential inventory reductions are possible (see below), and they target configuration of their supply chain systems accordingly

Reducing inventory losses - from dead stock, damaged, expired, and lost inventory Consolidation of Sub-Warehouses – there appears to be scope for reducing the number of Sub-

Warehouses – but detailed optimization studies (trading off the cost of additional transfers between stores against inventory carrying costs) would need to be carried out to confirm this

Providing communications infrastructure to connect Sub-Warehouses with the Central warehouse within an entity, and potentially to connect Central warehouses between different departments – to reduce, and improve control over, total inventory levels, and to prevent overstocking in a Sub-Warehouse, while the Central warehouse sees a need to order this material.


Future Needs

The workgroup identified the following future business requirements for Purchasing and Inventory Management. The group discussed these requirements with the Oracle FAS team, to determine if any of them will be achieved under the current FAS configuration. The FAS team indicated that, except for managing custody items and monitoring vendor performance, none of the following business requirements in Table 7 below are currently within their Scope of Work.

The requirements here represent what we believe to be applicable best practice for the Jordan water sector. To the extent they can be achieved through additional configuration of the Oracle PO and INV


NNoo.. BBuussiinneessss RReeqquuiirreemmeenntt JJuussttiiffiiccaattiioonn Purchasing

1 Automate the purchasing process (from needs Identification to awarding of PO)

Accommodate flexible procedures but automate tender procedures as far as possible - including evaluation and award. Manage workflow for approvals and awards electronically with both internal staff and suppliers Would require Oracle Sourcing module (not currently licensed)

2 Maintain purchase item specifications Ensure specifications are consistent - and changes/overrides are properly approved through internal workflow management

3 Monitor vendor performance Provide supplier history on pricing and quality of items purchased (included in current Oracle FAS PO module configuration)

4 Consolidate POs wherever possible Leverage sector-wide purchasing power to reduce price and increase quality of purchased goods

5 Support e-Procurement Routine orders can be processed over the internet - subject to GoJ procurement regulations

6 Support e-Payment Following appropriate matching, pay supplier electronically Inventory

1 Defining, and complying with optimal safety stock levels by item Reduce inventory levels and avoid inventory shortages

2 Tracking losses by type (e.g. damaged, expired, dead stock, other loss)

Losses are not currently tracked, and the cost of losses is not estimated – tracking them will enable them to be reduced

3 Consolidating Sub-Warehouses Reduce inventory levels and carrying costs – improve control over items

4 Providing communications infrastructure to connect Sub-Warehouses31

Reduce overstock & non-moving items due to lack of connectivity between warehouses, reduce number of POs needed and improve availability of real-time inventory information

5 Managing custody items To be carried out under current Oracle INV module configuration

6 Improving item management, and tracking of sub-items Improve efficiency of item and assembly management

7 Use of bar coding or RFID Physical tracking of high value items Would require Oracle Warehouse Management (RFID) module (not currently licensed)

Table 7 - Future Business Requirements

modules already being implemented, they represent quick wins. Further detailed configuration, studies supported by additional business case development, should be done to provide justification for each requirement – especially where incremental Oracle module purchases or licenses for additional users of current modules would be needed.

Best Practices

Almost all of the future business requirements identified above are recognized supply chain best practices. During implementation of supply chain systems, typical targeted and realized benefits from

31 The costing implications of this requirement are considered further under the Infrastructure component. Implementation would be phased – starting with the stores with the highest total inventory values. Consolidation studies should be completed first to optimize store locations.


leveraging these best practices in other utilities are shown in Table 8 below.

Benefit Performance Improvement IInnvveennttoorryy rreedduuccttiioonn ttyyppiiccaallllyy 2200 –– 7755 %% oonnee--ttiimmee Inventory loss reduction typically 10 – 20% annually Shorter purchasing cycle (needs identification to delivery) typically 10 – 60% reduction Improved asset utilization typically 10 – 50% improvement

Table 8 - Typical Performance Improvements from Best Practices

Additional “Jordanization” Considerations

GoJ procurement regulations constrain the purchasing process as follows:

Non-competitive bidding is not permitted. The Purchasing Department is not allowed to contact a supplier directly based on a previous successful relationship, even though internal controls could be introduced through the supply chain system to prevent possible abuse

The basis for tender evaluation is solely “best price” – no consideration is given to quality, or any other criteria.

Multiple authorities are involved in monitoring the purchasing process including (Internal Accounting, Internal Monitoring Unit, General Supplies Department, and MWI Finance Department). This adds multiple checkpoints, and slows the required approvals for purchasing.

Rationalization of these constraints would likely require a change in the law. The economic case for this (especially across the whole Government sector appears strong). For the moment they must be accepted as constraints in any supply chain implementation but such implementation should also be flexible to accommodate possible future relaxation of these constraints.

Timing of budget disbursement – as discussed above, budgets are submitted to the Ministry of Finance in the Dec- Jan timeframe. Approval and budget allocation is received in the April – May timeframe. Purchasing Departments are not permitted to issue any POs for almost 1.5 quarters of the year, and they have to respond to all purchasing requests within 2.5 quarters of the year. This approach might result in overstocking inventory to face the lack of budget for 1.5 quarters of the month.

While budget planning and preparation is currently de-centralized, there is an opportunity to improve centralized consolidation of budgets, better track what the sector is spending on what, and consolidate and adjust budgets on a more rational basis with an audit trail of justifications for such adjustments. Support for such an approach would need to be provided in the Budgeting system (see Back Office component)

Human resources issues – the current employee base does not possess the necessary skills to fully support an Oracle e-Business Supply Chain system. This issue is more apparent in warehouses and sub-warehouses outside of Amman. Training is not a sufficient solution to this issue, as employees do not have the minimum skill requirements to receive the training

Organization politics – these considerations relate to inter-departmental relationships and control over sub-warehouses by Governorates. Departments prefer to manage their purchasing and inventory operations autonomously, to maintain their control, and independence in their decision making and budget spending. This should be encouraged and supported generally by supply chain systems – because it moves accountability for performance closer to the Operating Utilities while still allowing centralized monitoring and rational fully justified budget consolidation



Major Benefits Sources

Tangible Benefits

Optimization of inventory levels - define, plan, and implement rational maximum and minimum inventory levels, to avoid inventory shortages or overstocking

Reduction of inventory losses (e.g. through damage, expiry, dead stock) - measuring inventory losses in warehouses, and sub-warehouses across the sector, will assist the sector in understanding and controlling the causes of losses, which will result in minimizing the losses

Reducing PO cycle time - (needs identification – awarding) – automation of the PO cycle will assist in speeding and increasing the efficiency of this process. This becomes particularly important to manage the loss of 1.5 quarter of the year, during which the purchasing department is waiting for Parliamentary approvals. This will also assist the department in avoiding any budget loss at the end of the year, because it could not process the Purchase Requests by Dec

Other Intangible Benefits

Improving information sharing by providing communications infrastructure to connect Central and Sub-Warehouses with each other, and with the Purchasing Department – this will prevent inventory overstocking in certain sub-warehouses, and will assist the Central warehouse in monitoring and controlling inventory in Sub-Warehouses. Also, it will assist the Purchasing department in making informed decisions on purchasing requirements based on accurate understanding of inventory availability

Improving item management and the ability to track sub-items and assemblies – currently there is no effective tracking of sub-items. Improving overall item and sub-item management will help in measuring and controlling the cost of sub-item replacement, and avoiding warranty expiry before utilization

Improving the reliability and efficiency of the stock taking process – currently the purpose of the stock taking process in the water sector is very different from its purpose in the private sector. The purpose of this process in the sector is monitoring and loss reduction, while its focus should also be on planning and controlling

Improving reporting – both for regular management reports and for drill-down ad-hoc queries on individual items or sub-items

Estimation of Tangible Benefits

Optimization of inventory levels will result in an estimated one time 5 M JD saving

Current maximum total inventory value for the water sector is estimated at 30 M – with the minimum value being 15 M

50% of total stock value is therefore likely to be “just-in-case” inventory We assume that 33% of this “just-in-case” inventory could be eliminated for a one time

reduction of inventory levels of 5 M JD Reduction of inventory losses (damage, expiry, dead stock… etc) will result in a 1.05 M JD/year.

Total inventory losses across the sector are estimated at 10% of minimum inventory or 1.5M JD / year

Assuming a reduction in losses of 10% to 3% is possible will result in a saving of 1.05 M JD/year.


Reducing PO cycle time (Need Identification – Awarding) will reduce PO cycle time from 6 – 2 weeks (note this is a tangible benefit but it is not easily valued in monetary terms)

currently the average PO takes 30 days to process; while the average Pre - PO process takes another 60 days

The majority of the delay therefore lies in the Pre - PO process, (i.e. Needs Identification - PO Raising). The major reasons for delay are routine, lack of information, manual information collection... etc.

assuming the Pre - PO process can be cut to an average of 2 weeks, a four week saving in PO cycle time would result

8.3.6. EVALUATION OF AVAILABLE SOLUTION OPTIONS

The development of solution options in this case has to carefully consider the need for tight integration of AM-MM and Supply Chain functionality, already described above under the AM-MM component. This is difficult to do in advance without hearing from each of the AM-MM vendors what their suggested integration approach (which should be based on their extensive experience of such integration) would be. There are two main options (which are also illustrated in Figure 3 below):

Use the Oracle e-Business Suite PO and INV modules to continue to handle just the financial aspects of purchases and inventory management. The AM-MM system would handle optimization of the physical aspects (which a best of breed AM-MM system should be better able to do). Both physical and financial data by item and sub-item would be real-time “mirrored” between the two systems so they are always fully synchronized

Substantially reconfigure the Oracle e-Business Suite PO and INV modules to handle optimization of physical aspects (AM-MM would still provide the maintenance “intelligence” to define “just-in-case” safety stocks by item). Again mirroring would be used to keep the two systems synchronized. Note that, at least in principle, to a large extent this reconfiguration could be done in advance of the AM-MM implementation

The third option which is to do both financial and physical processing in the AM-MM system is also valid. In principle, while this would break the financial “integrity” of the Oracle e-Business Suite implementation, a parallel here can be drawn with CIS/Billing where customer account detail is maintained in a separate system to Oracle financials and updated to the latter in summary form periodically. Similar treatment could be applied to item management. From a purely rational economic perspective the sunk costs of already implementing the PO and INV modules to cover financial functionality should not affect a future decision on the best option to follow above. However, recognizing Oracle’s strong financial functionality and likely resistance from both the sector and the donors, we have not considered this option further.


AM/MM

S/C – Financial & Physical

S/C – FinancialO

ptio

n 1:

O

ptio

n 2:

Ora

cle

Ora

cle

AM B

OB

AM B

OB

S/C - Physical AM/MM

Figure 3 - Supply Chain Solution Options

The key point to make here is that the vision of the combined AM-MM- Supply Chain project is far greater than the FAS project Scope of Work defined. This underscores the importance of the key ITMP principles of more process performance targeted, benefit / cost justified, tightly defined Scopes of Work, and benefits realization tracked systems implementations.

The pros and cons of options 1. and 2. are summarized in Table 9 below.

Table 9 - Comparison of Supply Chain Solution Options

Note that in-house development (assisted or not) is again simply not a realistic option here – it obviously makes more sense to better leverage the Oracle e-Business Suite implementation – with or without a best of breed AM-MM system (depending on the result of the AM-MM systems selection described above which might include the Oracle e-Business Suite EAM module).

OOppttiioonn AAddvvaannttaaggeess DDiissaaddvvaannttaaggeess 1. Appropriate integration of

Oracle PO and INV modules with the proposed AM-MM system – with the latter handling physical item optimization

Closer integration with AM/MM functionality

Substantially better physical item optimization, assuming a best of breed AM-MM solution

Possible small incremental cost of additional supply chain module for AM-MM system

Possible delay in implementation

2. Optimization of Oracle PO and INV modules to handle both financial and physical item aspects - in advance of AM-MM implementation

Possibly less cost Some user familiarity with the

Oracle system has been established (though it is still weak)

Leverages existing investment Can be done sooner

Physical item optimization likely to be much less effective

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

Rec

omm

enda

tion

– E

arly

Ven

dor

Invo

lvem

ent

Qui

te c

lear

ly th

is is

a d

iffic

ult c

hoic

e, b

ut th

e va

lue

of th

e be

nefit

s re

aliz

able

arg

ue s

trong

ly f

or a

n ea

rly s

tart

on f

orm

al s

yste

ms

sele

ctio

n so

that

det

aile

d so

lutio

n op

tions

can

be

deve

lope

d, a

nd p

roof

of c

once

pt p

rovi

ded,

by

a ra

nge

of A

M-M

M v

endo

rs a

nd O

racl

e. A

n ob

ject

ive

solu

tion

deci

sion

can

then

be

mad

e. A

stu

dy o

f th

e po

tent

ial

for

Sub-

War

ehou

se c

onso

lidat

ion,

and

ear

ly p

rovi

sion

of

full

com

mun

icat

ions

con

nect

ivity

(un

der

the

Infr

astru

ctur

e co

mpo

nent

of t

he IT

MP)

fol

low

ed b

y w

eb-e

nabl

emen

t of O

racl

e e-

Bus

ines

s Su

ite IN

V m

odul

e fu

nctio

nalit

y, c

an b

oth

be d

one

in p

aral

lel,

or e

ven

ahea

d of

th

is sy

stem

s sel

ectio

n, o

ffer

ing

a “q

uick

win

”.

8.3.

7.

CO

STIN

G A

SSU

MPT

ION

S

The

cost

s of i

mpl

emen

ting

a Su

pply

Cha

in so

lutio

n w

ill d

epen

d on

whi

ch o

ptio

n is

cho

sen,

and

on

wha

t the

opt

imiz

ed in

tegr

atio

n ap

proa

ch b

etw

een

AM

-MM

an

d Su

pply

Cha

in is

. Our

initi

al e

stim

ate,

allo

win

g fo

r som

e re

conf

igur

atio

n of

the

PO a

nd /

or IN

V m

odul

es, a

dditi

onal

lice

nse

fees

for O

racl

e e-

Bus

ines

s Su

ite m

odul

es n

eede

d to

mee

t all

the

futu

re b

usin

ess r

equi

rem

ents

def

ined

abo

ve, a

nd in

clud

ing

likel

y in

tegr

atio

n co

sts i

s $0.

7M.

8.3.

8.

BU

SIN

ESS

CA

SE

Bas

ed o

n th

e be

nefit

s and

cos

ts e

stim

ated

abo

ve, t

he b

usin

ess c

ase

for t

he S

uppl

y C

hain

impl

emen

tatio

n is

show

n in

AN

NEX

6 –

AM

-MM

-SU

PPLY

CH

AIN

B

USI

NES

S C

ASE

. Not

e th

at in

crem

enta

l ong

oing

sup

port

cost

s (d

efer

red

3 ye

ars

beca

use

it is

exp

ecte

d th

at IT

MP

fund

ing

shou

ld c

over

thes

e) a

re in

clud

ed,

even

tho

ugh

they

are

ess

entia

lly i

nsig

nific

ant.

We

have

als

o co

nser

vativ

ely

assu

med

tha

t th

e be

nefit

s of

im

plem

enta

tion

only

beg

in 2

yea

rs a

fter

impl

emen

tatio

n. T

he N

PV o

f th

e im

plem

enta

tion,

ass

umin

g a

10%

dis

coun

t rat

e, is

est

imat

ed to

be

$11.

2 M

. Thi

s re

pres

ents

the

net v

alue

of

the

bene

fits

stre

am a

t the

star

t of t

he im

plem

enta

tion.

The

impa

ct o

f th

e Su

pply

Cha

in im

plem

enta

tion

on th

e ov

eral

l bus

ines

s ca

se f

or th

e IT

MP

is e

xam

ined

in S

ectio

n 12

. Tog

ethe

r th

e co

mbi

ned

AM

-MM

-Su

pply

sys

tem

com

es v

ery

clos

e to

pay

ing

for

the

who

le I

TMP

(i.e.

dis

rega

rdin

g an

y ta

ngib

le b

ut d

iffic

ult

to q

uant

ify b

enef

its f

rom

all

othe

r pr

opos

ed

syst

ems i

mpl

emen

tatio

n co

mpo

nent

s in

the

ITM

P).

8.3.

9.

RIS

K F

AC

TO

RS

AN

D T

HE

IR M

ITIG

AT

ION

A s

igni

fican

t ris

k fa

ctor

in im

plem

entin

g ei

ther

Sup

ply

Cha

in s

olut

ion

optio

n is

use

r res

ista

nce

to O

racl

e so

lutio

ns a

s a

resu

lt of

the

chal

leng

es th

e se

ctor

has

ex

perie

nced

with

im

plem

entin

g FA

S. W

hile

thi

s re

sist

ance

is

not

alw

ays

ratio

nal,

proa

ctiv

e co

mm

unic

atio

n of

the

ben

efits

alre

ady

real

ized

by

the

FAS

impl

emen

tatio

n, i

ncre

asin

g aw

aren

ess

of t

he c

apab

ility

of

optim

ally

con

figur

ed O

racl

e m

odul

es,

soci

aliz

atio

n of

the

bus

ines

s ca

se f

or S

uppl

y C

hain

im

prov

emen

ts,

obje

ctiv

e as

sess

men

t of

“le

sson

s le

arne

d” f

rom

the

FA

S pr

ojec

t an

d th

eir

impl

icat

ions

for

the

HQ

IT o

rgan

izat

ion,

and

ful

l en

d-us

er

invo

lvem

ent i

n th

e fo

rmal

solu

tion

optio

n se

lect

ion

proc

ess d

escr

ibed

abo

ve w

ill a

ll he

lp to

miti

gate

this

resi

stan

ce.

The

qual

ity o

f im

plem

enta

tion

of a

sup

ply

chai

n so

lutio

n w

ill d

epen

d cr

itica

lly o

n th

e de

finiti

on o

f a v

ery

clea

r and

det

aile

d Sc

ope

of W

ork,

on

refin

emen

t of

the

busi

ness

cas

e de

scrib

ed a

bove

, and

on

form

al H

QIT

sig

noff

on

the

vend

or’s

pro

pose

d in

tegr

atio

n an

d/or

Ora

cle

reco

nfig

urat

ion

sche

ma.

As

stat

ed a

bove

w

e re

com

men

d th

at th

e A

M-M

M v

endo

r su

bcon

tract

any

Ora

cle

conf

igur

atio

n re

sour

ces

requ

ired.

We

also

enc

oura

ge th

e de

velo

pmen

t of

a fu

ll pr

oof

of

conc

ept a

nd a

full

and

fran

k di

scus

sion

of t

he in

tegr

atio

n an

d co

nfig

urat

ion

issu

es a

nd ri

sk w

ith th

e H

QIT

.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

Add

ition

ally

, it w

ill b

e im

porta

nt fo

r the

sect

or (t

hrou

gh H

QIT

) to

deve

lop

stro

ng O

racl

e re

conf

igur

atio

n sk

ills i

n or

der t

hat a

ll th

e be

nefit

s of i

mpl

emen

ting

it ca

n be

real

ized

. Tra

inin

g an

d co

achi

ng in

this

topi

c is

incl

uded

in th

e H

QIT

tech

nica

l ass

ista

nce

desi

gn. o

f a c

lear

Wha

teve

r sol

utio

n is

fina

lly s

elec

ted,

its

succ

ess

will

onl

y be

as

good

as

its im

plem

enta

tion.

A n

umbe

r of r

isk

fact

ors

need

to b

e m

itiga

ted

to e

nsur

e th

is. V

endo

r and

/ or

impl

emen

tatio

n co

nsul

tant

ex

perie

nce

shou

ld b

e di

ligen

tly c

heck

ed a

s pa

rt of

the

sele

ctio

n pr

oces

s. H

QIT

will

nee

d to

brin

g its

bes

t pro

gram

man

agem

ent s

kills

and

a te

am o

f use

rs a

nd

IT s

uppo

rt st

aff

will

hav

e to

be

com

mitt

ed f

ull-t

ime

to t

he i

mpl

emen

tatio

n ef

fort.

Sec

tor

read

ines

s bo

th i

n te

rms

of h

uman

res

ourc

es a

nd h

ardw

are

and

com

mun

icat

ions

inf

rast

ruct

ure

mus

t be

in

plac

e an

d pr

oven

bef

ore

impl

emen

tatio

n st

arts

. W

areh

ouse

con

solid

atio

n an

d po

tent

ial

busi

ness

pro

cess

im

prov

emen

ts to

inve

ntor

y m

anag

emen

t pro

cess

es s

houl

d be

stu

died

prio

r to

impl

emen

tatio

n, a

nd a

det

aile

d an

d ac

cura

te fi

xed

asse

ts re

gist

er a

nd in

vent

ory

stoc

k ta

ke (w

ith e

limin

atio

n of

any

dup

licat

e ite

m n

ames

or c

odes

) com

plet

ed, a

nd th

e in

vent

ory

clas

sific

atio

n sy

stem

revi

ewed

.

We

reco

mm

end

a ph

ased

roll-

out a

ppro

ach

base

d on

trai

ning

a d

edic

ated

Cor

e Su

ppor

t Tea

m (C

ST) o

f O&

M p

erso

nnel

, use

rs a

nd IT

sup

port

pers

onne

l. A

pi

lot i

mpl

emen

tatio

n (w

ith N

GW

A)

bein

g th

e m

ost l

ikel

y ca

ndid

ate

wou

ld b

e pr

ogra

m m

anag

ed w

ith f

ull t

rack

ing

of r

ealiz

ed b

enef

its a

gain

st th

e bu

sine

ss

case

. The

CST

wou

ld w

ork

clos

ely

with

the

vend

or a

nd /

or im

plem

enta

tion

cons

ulta

nt to

dev

elop

and

sign

off

on

appr

opria

te d

etai

led

conf

igur

atio

n an

d us

er-

frie

ndly

scr

eens

and

opt

imiz

e O

racl

e in

tegr

atio

n an

d re

conf

igur

atio

n sc

hem

a (to

rea

lize

the

iden

tifie

d Su

pply

Cha

in b

enef

its).

HQ

IT w

ould

pro

vide

rob

ust

qual

ity a

ssur

ance

and

acc

epta

nce

test

ing

and

ensu

re e

xten

sive

trai

ning

of u

sers

and

sup

port

pers

onne

l by

the

vend

or. R

ollo

ut o

f the

sys

tem

to o

ther

Ope

ratin

g U

tiliti

es w

ould

then

be

done

by

the

fully

trai

ned

CST

.

Trai

ning

pla

ns a

nd m

ater

ials

as

wel

l as

refe

renc

e do

cum

enta

tion

mus

t be

mad

e re

adily

ava

ilabl

e in

Ara

bic

by th

e ve

ndor

– fo

r bot

h te

chni

cal a

nd fu

nctio

nal

staf

f.

We

do n

ot re

com

men

d th

e se

ctor

take

on

this

impl

emen

tatio

n un

til w

ell i

nto

the

ITM

P pe

riod.

(NG

WA

als

o pr

efer

s no

t to

star

t im

plem

enta

tion

befo

re m

id-

2008

at t

he e

arlie

st b

ecau

se it

will

be

preo

ccup

ied

with

oth

er in

itiat

ives

in in

clud

ing

com

plet

ing

and

embe

ddin

g its

FA

S im

plem

enta

tion)

. The

sec

tor’

s re

cent

ex

perie

nce

with

sys

tem

s im

plem

enta

tions

has

not

bee

n ve

ry p

ositi

ve a

nd it

is c

lear

that

ext

ensi

ve c

apac

ity n

eeds

to b

e bu

ilt in

tern

ally

to p

rope

rly m

anag

e la

rge

scal

e im

plem

enta

tions

. Thi

s will

take

tim

e. O

ur su

gges

ted

phas

ing

of th

e A

M-M

M im

plem

enta

tion

is d

iscu

ssed

in S

ectio

n 10

.

Oth

er ri

sks

need

ing

to b

e m

itiga

ted

rela

te to

pos

t-im

plem

enta

tion

supp

ort.

Rec

urrin

g su

ppor

t cos

ts a

re in

clud

ed in

the

busi

ness

cas

e so

they

can

be

abso

rbed

w

ithou

t iss

ue. H

owev

er, a

ppro

pria

te d

ue d

ilige

nce

mus

t be

carr

ied

out t

o as

sure

the

qual

ity, c

ost a

nd r

eady

ava

ilabi

lity

of b

oth

rout

ine

and

spec

ial a

d-ho

c su

ppor

t.

8.3.

10.

TIM

ING

OF

IMPL

EM

EN

TA

TIO

N

Cle

arly

this

mus

t be

coor

dina

ted

with

the

AM

-MM

impl

emen

tatio

n if

Opt

ion

1 is

cho

sen

afte

r for

mal

sys

tem

s se

lect

ion.

For

the

reas

ons

stat

ed a

bove

in th

e A

M-M

M c

ompo

nent

, it i

s not

real

istic

to e

xpec

t im

plem

enta

tion

to st

art b

efor

e m

id 2

008.

If O

ptio

n 2

is c

hose

n th

ere

is a

sm

all p

ossi

bilit

y th

at o

ptim

izat

ion

of O

racl

e PO

and

IN

V c

onfig

urat

ion

coul

d st

art s

light

ly e

arlie

r. H

owev

er, b

uild

ing

the

capa

city

of t

he H

QIT

to d

o th

is fo

rmal

sys

tem

s se

lect

ion

and

effe

ctiv

ely

prog

ram

man

age

any

reco

nfig

urat

ion,

whi

le c

ompl

etin

g th

e re

orga

niza

tion,

is g

oing

to

take

tim

e. O

n ba

lanc

e w

e do

not

see

impl

emen

tatio

n of

eith

er o

ptio

n (a

ssum

ing

rigor

ous p

roce

ss is

dul

y fo

llow

ed) a

s fea

sibl

e to

star

t bef

ore

mid

200

8. T

his

is st

ill o

nly

just

one

yea

r afte

r com

plet

ion

of th

e FA

S pr

ojec

t whi

ch it

self

will

still

be

bein

g “e

mbe

dded

” at

that

tim

e.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

8.3.

11.

USA

ID’S

PO

TE

NT

IAL

RO

LE

USA

ID w

ould

aga

in s

uppo

rt Su

pply

Cha

in im

plem

enta

tion

thro

ugh

its lo

ng-te

rm te

chni

cal a

ssis

tanc

e to

the

HQ

IT to

ens

ure

a pr

ofes

sion

al s

olut

ion

sele

ctio

n ta

kes

plac

e, f

ollo

wed

by

qual

ity im

plem

enta

tion

with

ful

l ski

lls a

nd k

now

ledg

e tra

nsfe

r. Th

e ve

ndor

impl

emen

tatio

n co

ntra

ct w

ould

be

man

aged

by

HQ

IT

acco

rdin

g to

USA

ID p

rocu

rem

ent p

roce

dure

s. If

Opt

ion

2 w

ere

sele

cted

we

wou

ld a

dvis

e th

at a

ny O

racl

e re

conf

igur

atio

n as

sist

ance

requ

ired

from

out

side

be

subc

ontra

cted

und

er t

he A

M-M

M v

endo

r co

ntra

ct. T

his

will

ens

ure

sing

le v

endo

r ac

coun

tabi

lity

for

real

izat

ion

of t

he c

ombi

ned

AM

-MM

-Sup

ply

Cha

in

busi

ness

cas

e, a

nd w

ill a

lso

ease

the

prog

ram

man

agem

ent b

urde

n on

HQ

IT.

Aga

in, U

SAID

cou

ld fi

nanc

e al

l or p

art o

f the

impl

emen

tatio

n co

st th

em –

but

su

bsta

ntia

l co-

finan

cing

of t

his i

nitia

tive

by G

oJ is

read

ily ju

stifi

ed b

y th

e bu

sine

ss c

ase.

8.4.

Ex

ecut

ive

Info

rmat

ion

Syst

em (E

IS)

8.4.

1.

EX

EC

UT

IVE

SU

MM

AR

Y O

F W

OR

KG

RO

UP

RE

CO

MM

EN

DA

TIO

NS

Impr

ovin

g th

e av

aila

bilit

y of

tim

ely,

rele

vant

, acc

urat

e an

d ac

tiona

ble

info

rmat

ion

to s

enio

r dec

isio

n m

aker

s in

the

sect

or h

as th

e po

tent

ial t

o pr

oduc

e la

rge

bene

fits

thro

ugh

impr

oved

pla

nnin

g an

d de

cisi

on-m

akin

g an

d ea

sier

ove

rsig

ht o

f sec

tor p

erfo

rman

ce. B

ased

on

the

“wis

dom

” re

sour

ces

avai

labl

e to

us

over

th

e W

orki

ng G

roup

per

iod,

six

are

as w

ere

iden

tifie

d as

crit

ical

– w

ater

situ

atio

n, c

apita

l inv

estm

ents

, pro

ject

s pe

rfor

man

ce, f

inan

ce, a

dmin

istra

tive

and

lega

l, an

d op

erat

ions

and

mai

nten

ance

and

a c

once

pt (

not

in a

ny s

ense

the

fin

al)

desi

gn d

evel

oped

. Det

aile

d de

sign

wor

k is

a s

igni

fican

t ex

erci

se t

hat

will

be

com

plet

ed d

urin

g th

e im

plem

enta

tion

of th

e IT

MP.

The

visi

on fo

r the

EIS

is th

at it

will

ser

ve a

s th

e si

ngle

, cen

tral i

nfor

mat

ion

syst

em, p

rovi

ding

relia

ble,

tim

ely

data

for e

xecu

tives

and

dec

isio

n m

aker

s in

the

wat

er s

ecto

r. Th

e EI

S w

ill p

rovi

de a

com

plet

e pe

rfor

man

ce m

easu

rem

ent f

ram

ewor

k fo

r ex

ecut

ives

, thr

ough

a v

isua

l use

r-fr

iend

ly in

terf

ace.

It i

s pr

imar

ily

targ

eted

at H

eadq

uarte

rs O

rgan

izat

ions

, but

wou

ld a

lso

be a

vaila

ble

to th

e se

nior

man

agem

ent o

f Ope

ratin

g U

tiliti

es. O

pera

ting

Util

ities

will

(som

e al

read

y ar

e) w

ant

to d

evel

op t

heir

own

loca

l M

anag

emen

t In

form

atio

n Sy

stem

(M

IS)

equi

vale

nts

of t

he E

IS t

o su

ppor

t th

eir

own

mor

e de

taile

d op

erat

iona

l an

d pl

anni

ng n

eeds

and

the

perf

orm

ance

man

agem

ent o

f the

ir ut

ility

.

The

EIS

com

pone

nt w

ill b

e cu

stom

des

igne

d to

com

bine

and

app

ropr

iate

ly m

anip

ulat

e da

ta fr

om a

larg

e nu

mbe

r of d

ispa

rate

sour

ce sy

stem

s acr

oss t

he se

ctor

; an

d pr

esen

t se

nior

dec

isio

n m

aker

s w

ith t

he i

nfor

mat

ion

they

req

uire

to

mon

itor

the

sect

or’s

per

form

ance

, ac

t to

cor

rect

neg

ativ

e tre

nds,

and

mon

itor

regu

lato

ry c

ompl

ianc

e. A

wid

e va

riety

of

user

-frie

ndly

, se

lf-se

rvic

e au

thor

ed,

and

read

ily c

usto

miz

able

gra

phic

al o

utpu

ts w

ill b

e su

ppor

ted

– in

clud

ing

scor

ecar

ds,

dash

boar

ds,

ad-h

oc q

uerie

s, cr

oss

tabs

and

eve

nt a

lerts

and

man

agem

ent.

App

ropr

iate

dril

l-dow

n ca

pabi

litie

s w

ill b

e av

aila

ble

in a

ll ou

tput

fo

rmat

s. Fu

ll G

IS in

tegr

atio

n w

ill a

lso

be in

clud

ed.

Solu

tion

optio

ns fo

r an

EIS

use

com

mer

cial

ly a

vaila

ble

(and

qui

te c

ost-e

ffec

tive)

bus

ines

s in

telli

genc

e (B

I) to

ols.

Impl

emen

tatio

n co

sts

are

dom

inat

ed b

y th

e pr

epar

ator

y w

ork

need

ed to

inte

grat

e th

e va

rious

sour

ce d

ata

syst

ems a

nd a

ssur

e th

eir d

ata

qual

ity.

The

busi

ness

cas

e fo

r an

EIS

is li

kely

to b

e ve

ry s

trong

but

ver

y di

ffic

ult t

o qu

antit

ativ

ely

estim

ate

prio

r to

a de

taile

d de

sign

pha

se. A

t thi

s st

age,

it m

ay b

e po

ssib

le to

qua

ntify

the

valu

e of

cer

tain

type

s of d

ecis

ions

, dev

elop

targ

ets f

or th

eir i

mpr

ovem

ent a

nd

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

8.4.

2.

AS-

IS S

ITU

AT

ION

The

curr

ent s

ituat

ion

can

be c

hara

cter

ized

as f

ollo

ws:

The

sect

or’s

dat

a ar

e cu

rren

tly m

anag

ed b

y th

ree

diff

eren

t ent

ities

(WA

J, JV

A a

nd M

WI)

As a

resu

lt, re

dund

ant d

ata

stor

es e

xist

acr

oss t

he th

ree

entit

ies w

ith d

iffer

ent d

ata

form

ats a

nd re

latio

nshi

ps

So

me

data

are

stor

ed in

dat

abas

es -

how

ever

ther

e is

als

o si

gnifi

cant

relia

nce

on E

xcel

file

s and

pap

er re

cord

s

Ther

e is

no

sect

or-w

ide

stan

dard

dat

a di

ctio

nary

– e

xist

ing

data

ther

efor

e su

ffer

s fro

m b

oth

qual

ity a

nd in

tegr

ity is

sues

With

lim

ited

exce

ptio

ns32

, the

re a

re a

lso

no s

tand

ard

data

flo

w p

roce

dure

s co

ntro

lling

dat

a co

llect

ion

from

sou

rces

, and

dat

a tra

nsfe

r an

d ex

chan

ge

betw

een

conc

erne

d us

ers

La

ck o

f coo

rdin

atio

n an

d co

oper

atio

n be

twee

n th

e th

ree

entit

ies

has

resu

lted

in is

olat

ed is

land

s of

info

rmat

ion.

Em

ploy

ees

of o

ne e

ntity

do

not h

ave

any

know

ledg

e ab

out t

he in

form

atio

n av

aila

ble

in a

noth

er e

ntity

, eve

n at

the

mid

dle

man

ager

s lev

el

M

ultip

le a

nsw

ers a

re a

vaila

ble

to m

any

ques

tions

as a

resu

lt

The

deci

sion

to c

reat

e a

new

dat

a st

ore

is o

ften

depe

nden

t on

a de

partm

ent’s

Dire

ctor

, who

doe

s not

alw

ays s

tudy

the

avai

labl

e da

ta st

ores

, or c

onsu

lt w

ith

the

IT d

epar

tmen

t. Th

is h

as re

sulte

d in

info

rmat

ion

sour

ces d

uplic

atio

n an

d in

com

patib

ility

Som

e pr

omis

ing

Info

rmat

ion

Man

agem

ent

(IM

) in

itiat

ives

exi

st i

n th

e m

inis

try (

GTZ

’s S

CW

S /

IIM

pro

ject

s an

d th

e PM

Us

Perf

orm

ance

Ind

icat

ors

proj

ect).

How

ever

, the

sco

pe o

f tho

se in

itiat

ives

is n

arro

w a

nd fo

cuse

d on

MW

I in

the

case

of G

TZ, a

nd o

n W

AJ

oper

atio

ns in

the

case

of P

MU

. The

re is

no

ove

rarc

hing

vis

ion

of d

ata

and

info

rmat

ion

avai

labi

lity

So

me

info

rmat

ion

sour

ces d

o no

t cur

rent

ly e

xist

in a

n ef

fect

ive

form

– fo

r exa

mpl

e:

A

lega

l cas

e tra

ckin

g sy

stem

(cov

erin

g bo

th th

e st

atus

of c

ases

and

thei

r cos

ts a

nd c

ontin

gent

liab

ilitie

s)

A

cap

ital i

nves

tmen

ts -

pro

ject

s m

anag

emen

t sys

tem

(tra

ckin

g pr

ojec

t sta

tus

and

finan

cing

, and

com

parin

g a

ctua

l pro

ject

per

form

ance

to

desi

gn

spec

ifica

tions

8.4.

3.

FUT

UR

E B

USI

NE

SS R

EQ

UIR

EM

EN

TS

To b

uild

a c

once

pt d

esig

n fo

r a fu

ture

per

form

ance

man

agem

ent v

isio

n fo

r the

wat

er se

ctor

, the

Wor

king

Gro

up ta

pped

the

wis

dom

of s

enio

r sec

tor r

esou

rces

,

32 A

not

able

exa

mpl

e w

ould

be

the

Gro

undw

ater

Mon

itorin

g an

d Ev

alua

tion

Dep

artm

ent (

GM

ED) p

roje

ct, f

unde

d by

USA

ID, w

hich

is d

evel

opin

g da

ta in

tegr

ity sy

stem

s an

d st

anda

rds

for b

ulk

met

erin

g.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

who

are

rec

ogni

zed

for

thei

r lo

ng a

nd in

tens

ive

expe

rienc

e of

und

erst

andi

ng e

xecu

tive

deci

sion

-mak

ers

requ

irem

ents

in th

e Jo

rdan

ian

wat

er s

ecto

r. Th

ose

reco

gniz

ed so

urce

s of w

isdo

m a

re:

En

g. Y

ouse

f Has

san,

Dire

ctor

of P

lann

ing

Dep

artm

ent i

n JV

A, p

revi

ous A

SG fo

r Pla

nnin

g an

d In

form

atio

n at

JVA

, and

pre

viou

s WM

IS D

irect

or

En

g. S

uzan

Tah

a, D

irect

or o

f Nat

iona

l Wat

er M

aste

r Pla

n (N

atio

nal W

ater

Mas

ter P

lann

ing

and

Wat

er In

form

atio

n Sy

stem

), an

d Pr

ojec

t Coo

rdin

ator

for

the

Stee

ring

Com

pete

nce

(SC

WS)

pro

ject

fund

ed b

y G

TZ

Th

e gr

oup

also

sol

icite

d th

e in

put

of v

ario

us e

xper

t re

sour

ces

at N

GW

A,

WA

J, JV

A,

MW

I, G

TZ,

PMU

, an

d N

atio

nal

Age

nda

– G

over

nmen

t Pe

rfor

man

ce M

onito

ring

Uni

t.

The

grou

p us

ed th

e fo

llow

ing

appr

oach

to id

entif

y th

e fu

ture

bus

ines

s req

uire

men

ts:

It

first

iden

tifie

d 6

key

perf

orm

ance

man

agem

ent a

reas

(sub

ject

are

as) t

hat a

llow

us

to e

valu

ate

the

sect

or’s

per

form

ance

. Tho

se a

re li

sted

bel

ow in

Tab

le

10 b

elow

:

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

1. W

ater S

ituati

on

Meas

uring

the

perfo

rman

ce o

f the

wate

r bud

get i

nclud

ing re

sour

ces,

supp

ly, a

nd d

eman

d. Al

so m

easu

ring

the p

erfor

manc

e of

water

qua

lity,

non-

conv

entio

nal w

ater,

and

non-

reve

nue

water

, usin

g his

torica

l and

pr

ojecte

d data

.

2. Ca

pital

Inves

tmen

t Me

asur

ing th

e pe

rform

ance

of t

he c

apita

l inv

estm

ent p

lan, f

undin

g sta

tus, a

nd ex

pecte

d yiel

d.

3. Pr

ojects

Per

forma

nce

Meas

uring

the

perfo

rman

ce o

f sec

tor p

rojec

ts inc

luding

fina

ncial

and

no

n-fin

ancia

l per

forma

nce.

4. Fin

ance

Me

asur

ing th

e pe

rform

ance

of f

inanc

ial p

lannin

g, sp

endin

g, re

venu

e, co

st re

cove

ry, ta

riffs,

and o

vera

ll fina

ncial

susta

inabil

ity of

the s

ector

5. Op

erati

on &

Main

tenan

ce

Meas

uring

the

pe

rform

ance

of

plant

oper

ation

s, cu

stome

r ma

nage

ment,

netw

ork e

fficien

cy, a

nd en

ergy

cons

umpti

on

6. Ad

minis

trativ

e, HR

& Le

gal

Meas

uring

the

perfo

rman

ce o

f hum

an re

sour

ces,

includ

ing: m

anpo

wer

and

succ

essio

n pla

nning

, tra

ining

plan

s, an

d tur

nove

r and

reten

tion

statis

tics

Trac

king a

nd m

onito

ring l

egal

affair

s Me

asur

ing th

e per

forma

nce o

f any

othe

r key

admi

nistra

tive f

uncti

ons

Tabl

e 10

- EI

S Se

ctor

Per

form

ance

Man

agem

ent A

reas

Nex

t the

Gro

up:

Id

entif

ied

mor

e de

taile

d in

form

atio

n ne

eds f

or e

ach

of th

e 6

subj

ect a

reas

Det

erm

ined

futu

re re

porti

ng fr

eque

ncy

Id

entif

ied

curr

ent d

ata

sour

ces

acro

ss a

ll en

titie

s ( M

WI,

WA

J, JV

A, a

nd N

GW

A) a

nd k

ey is

sues

and

con

stra

ints

rela

ted

to d

ata

qual

ity, a

vaila

bilit

y, a

nd

freq

uenc

y

Col

lect

ed in

form

atio

n, a

nd d

ocum

ente

d A

s-Is

Dat

a flo

ws r

elat

ed to

the

6 ke

y pe

rfor

man

ce a

reas

acr

oss a

ll en

titie

s

Des

igne

d pr

otot

ype

scre

ens t

o so

licit

feed

back

and

refin

e th

e bu

sine

ss re

quire

men

ts

Id

entif

ied

curr

ent I

nfor

mat

ion

Man

agem

ent (

IM) i

nitia

tives

, and

map

ped/

docu

men

ted

thei

r rel

evan

ce to

the

EIS

initi

ativ

e

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

D

evel

oped

a c

once

ptua

l to

-be

visi

on d

escr

ibin

g th

e re

latio

nshi

p be

twee

n C

apita

l In

vest

men

t, Fi

nanc

e, a

nd P

roje

ct M

anag

emen

t as

an

exam

ple

of a

pe

rfor

man

ce m

anag

emen

t “cl

osed

loop

”

Met

with

the

follo

win

g ke

y re

pres

enta

tives

to d

iscu

ss a

nd re

fine

requ

irem

ents

:

G

TZ:

Dr.

Phili

p M

agie

ra

PM

U: W

alee

d Su

kkar

Gov

ernm

ent P

erfo

rman

ce M

onito

ring

Uni

t, Pr

ime

Min

istry

: May

soon

El-Z

oubi

8.4.

4.

BE

NE

FIT

S ID

EN

TIF

ICA

TIO

N

Diff

icul

ty in

Qua

ntify

ing

Tan

gibl

e B

enef

its

Impl

emen

tatio

ns o

f EI

S in

diff

eren

t or

gani

zatio

ns h

ave

prov

en t

o re

nder

mul

tiple

tan

gibl

e be

nefit

s. Th

e na

ture

of

the

bene

fits

diff

er b

ased

on

the

orga

niza

tion’

s na

ture

, siz

e, a

nd p

re-im

plem

enta

tions

’ sta

tus

(ava

ilabi

lity

of d

ata

in a

sta

ndar

dize

d an

d qu

ality

ass

ured

man

ner)

. Als

o, th

e ab

ility

to q

uant

ify

thos

e ta

ngib

le b

enef

its d

iffer

s fr

om o

ne o

rgan

izat

ion

to a

noth

er. T

here

fore

, the

typi

cal b

usin

ess

case

mod

el, u

sed

to c

alcu

late

the

retu

rn o

n in

vest

men

t for

an

appl

icat

ion

syst

ems R

OI d

oes n

ot a

lway

s app

ly to

the

EIS

situ

atio

n.

The

follo

win

g ar

e so

me

of th

e an

ticip

ated

tang

ible

ben

efits

from

impl

emen

ting

an E

IS in

the

Wat

er se

ctor

:

Mak

ing

mor

e in

form

ed a

nd b

ette

r pla

nnin

g an

d op

erat

iona

l dec

isio

ns o

n th

e ba

sis o

f com

mon

shar

ed in

form

atio

n

Incr

ease

d in

divi

dual

acc

ount

abili

ty a

nd r

espo

nsib

ility

for

man

agem

ent

actio

n ac

ross

the

org

aniz

atio

n th

roug

h th

e pr

ovis

ion

and

supp

ort

of a

co

mpr

ehen

sive

fram

ewor

k fo

r per

form

ance

mea

sure

men

t acr

oss t

he se

ctor

Avo

idin

g th

e co

sts o

f bad

dec

isio

ns b

ased

on

mul

tiple

unr

elia

ble

data

sour

ces

Fa

ster

iden

tific

atio

n an

d co

rrec

tion

of p

erfo

rman

ce a

nd c

ompl

ianc

e is

sues

Spee

dier

dec

isio

n m

akin

g an

d ap

prov

als e

nabl

ing

mor

e ra

pid

sect

or p

erfo

rman

ce im

prov

emen

t

Savi

ng o

f sec

tor l

eade

rshi

p’s t

ime

curr

ently

spen

t on

com

mun

icat

ion

with

staf

f or w

ith o

ther

exe

cutiv

es to

col

lect

or a

naly

ze d

ata

Sa

ving

the

cos

t of

pro

cess

ing

and

mai

ntai

ning

red

unda

nt d

ata

stor

es (

allo

win

g th

e al

loca

tion

of m

iddl

e le

vel

prof

essi

onal

sta

ff t

o m

ore

valu

e-ad

ded

dutie

s)

Sa

ving

s in

info

rmat

ion

dist

ribut

ion

cost

s, in

clud

ing

the

cost

s of m

emos

and

doc

umen

ts in

term

s of p

aper

, cop

ying

, bin

ding

and

mai

ling

Maj

or In

tang

ible

Ben

efits

The

follo

win

g ar

e m

ajor

inta

ngib

le b

enef

its e

xpec

ted

from

the

EIS

impl

emen

tatio

n:

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

Pr

ovid

ing

sect

or le

ader

ship

in g

aini

ng a

com

preh

ensi

ve (b

oth

broa

d an

d de

ep) u

nder

stan

ding

of t

he o

rgan

izat

ions

per

form

ance

, as o

ppos

ed to

focu

sing

on

som

e ar

eas d

ue to

lim

ited

time

or in

form

atio

n av

aila

bilit

y

Prov

idin

g a

clea

r in

sigh

t in

to o

rgan

izat

ions

per

form

ance

at

mul

tiple

lev

els,

star

ting

at t

he o

vera

ll se

ctor

s’ p

erfo

rman

ce,

and

drill

ing

dow

n to

a

depa

rtmen

tal,

utili

ty o

r geo

grap

hica

l per

form

ance

Bet

ter a

ligni

ng th

e se

ctor

’s o

bjec

tives

acr

oss t

he th

ree

entit

ies (

MW

I, W

AJ,

and

JVA

), an

d w

ith th

e N

atio

nal A

gend

a ob

ject

ives

Inte

grat

ing

info

rmat

ion

from

the

thre

e en

titie

s (M

WI,

WA

J, an

d JV

A),

into

one

sing

le in

form

atio

n sy

stem

Incr

easi

ng tr

ansp

aren

cy a

nd v

isib

ility

of i

nfor

mat

ion

M

onito

ring

and

cont

rolli

ng d

ata

qual

ity a

nd in

tegr

ity

R

educ

ing

busi

ness

dep

ende

ncy

on IT

for r

outin

e re

port

deve

lopm

ent a

nd a

d-ho

c in

form

atio

n an

alys

is

For t

he re

ason

s out

lined

abo

ve, w

e ha

ve n

ot b

een

to d

evel

op a

qua

ntita

tive

busi

ness

cas

e. H

owev

er, w

e re

com

men

d th

at d

urin

g th

e de

taile

d de

sign

stag

e so

me

spec

ific

quan

tifia

ble

deci

sion

type

s ar

e id

entif

ied

and

quan

tifie

d as

exa

mpl

e be

nchm

arks

for a

ssur

ing

the

qual

ity o

f the

impl

emen

tatio

n. T

his

is m

uch

mor

e lik

ely

to b

e dr

iven

by

the

data

pre

para

tion

wor

k (d

escr

ibed

furth

er b

elow

) tha

n by

the

actu

al p

rogr

amm

ing

and

impl

emen

tatio

n of

the

BI t

ool.

8.4.

5.

EV

AL

UA

TIO

N O

F A

VA

ILA

BL

E S

OL

UT

ION

OPT

ION

S

Unl

ike

spec

ializ

ed o

pera

tiona

l and

bac

k of

fice

appl

icat

ions

, Bus

ines

s In

telli

genc

e ap

plic

atio

ns a

re b

ecom

ing

com

mod

ity s

oftw

are

tool

s us

ed b

y al

l kin

ds o

f or

gani

zatio

ns. F

orm

al sy

stem

s sel

ectio

n is

still

nec

essa

ry to

com

pare

the

feat

ures

of d

iffer

ent p

rodu

ct o

ffer

ings

, but

the

qual

ity o

f ven

dor r

elat

ions

(in

term

s of

a tru

e pa

rtner

ship

) and

the

avai

labi

lity

of lo

cal s

uppo

rt m

ay b

e m

ore

impo

rtant

sele

ctio

n cr

iteria

than

just

pro

duct

feat

ures

for E

IS. T

he c

reat

ivity

of t

he to

ol is

lim

ited

only

by

the

avai

labi

lity

of q

ualit

y da

ta w

ithin

the

impl

emen

ting

orga

niza

tion.

A n

umbe

r of w

ell k

now

n in

dust

ry le

ader

s exi

st –

incl

udin

g:

C

ogno

s33

B

usin

ess O

bjec

ts

SA

S

Hyp

erio

n

33 A

ven

dor

dem

onst

ratio

n of

this

pro

duct

was

giv

en to

, and

wel

l rec

eive

d by

, a la

rge

audi

ence

of

sect

or s

taff

by

Bus

ines

s Sy

stem

s G

roup

(B

SG),

a M

iddl

e Ea

st p

artn

er f

or th

e pr

oduc

t. N

o en

dors

emen

t of t

his p

artic

ular

pro

duct

by

the

ITM

P sh

ould

be

impl

ied

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

BI

tool

s fo

rm t

he h

ighe

st l

ayer

of

the

busi

ness

sys

tem

s ar

chite

ctur

e –

sitti

ng o

n to

p of

the

dat

a w

areh

ouse

and

mid

dlew

are

laye

r. Th

e da

ta w

areh

ouse

co

ntin

ually

ext

ract

s, an

d st

ores

in

a qu

ickl

y ac

cess

ible

for

m,

a m

ultid

imen

sion

al s

ubse

t of

dat

a th

at i

s of

gre

ates

t in

tere

st t

o EP

exe

cutiv

es a

nd s

enio

r m

anag

emen

t. Th

ese

data

cou

ld b

e dr

awn

from

man

y so

urce

s in

clud

ing

Ora

cle

e-B

usin

ess

Suite

mod

ules

, cus

tom

er/b

illin

g, o

pera

tiona

l and

mai

nten

ance

and

H

R s

yste

ms,

and

even

pot

entia

lly S

CA

DA

sys

tem

s. A

wid

e va

riety

of

sour

ce f

orm

ats

shou

ld b

e su

ppor

ted

incl

udin

g al

l re

latio

nal

data

base

s, an

d O

LAP

sour

ces,

com

mon

ER

P pl

atfo

rms,

Exce

l, A

cces

s an

d ot

her f

lat f

iles,

and

all d

ata

war

ehou

ses

wha

teve

r the

ir da

ta s

chem

a. U

nico

de s

uppo

rt is

usu

ally

pro

vide

d fo

r “on

-the-

fly”

mul

tilin

gual

repo

rting

.

Each

EIS

use

r ha

s th

eir

own

fully

cus

tom

izab

le “

porta

l” s

cree

n th

at a

llow

s th

em to

rea

dily

acc

ess

and

man

age

the

info

rmat

ion

they

mos

t rou

tinel

y ne

ed.

Diff

eren

t ind

ivid

uals

will

hav

e di

ffer

ent p

orta

l des

igns

acc

ordi

ng to

thei

r nee

ds, b

ut a

ll po

rtals

are

read

ily c

usto

miz

able

by

the

user

(with

littl

e or

no

need

for

IT s

uppo

rt). T

he B

I to

ols

prov

ide

this

fle

xibi

lity

thro

ugh

a se

t of

ful

ly i

nteg

rate

d qu

ery,

ana

lysi

s an

d re

porti

ng t

ools

, bas

ed a

roun

d a

sing

le c

entra

lized

m

etad

ata

mod

el,

whi

ch d

eliv

ers

man

agem

ent

info

rmat

ion

thro

ugh

a w

eb p

orta

l. A

wid

e va

riety

of

user

-frie

ndly

, se

lf-se

rvic

e au

thor

ed,

and

read

ily

cust

omiz

able

gra

phic

al o

utpu

ts s

houl

d be

sup

porte

d –

incl

udin

g sc

orec

ards

, das

hboa

rds,

ad-h

oc q

uerie

s, cr

oss

tabs

and

eve

nt a

lerts

and

man

agem

ent.

Full

drill

-dow

n ca

pabi

litie

s sh

ould

be

avai

labl

e in

all

outp

ut f

orm

ats,

alon

g w

ith d

rag

and

drop

piv

ot a

nd f

ilter

cap

abili

ty. M

ore

adva

nced

com

pone

nts

ofte

n av

aila

ble

as o

ptio

ns in

clud

e an

alyt

ics

engi

nes

to fa

cilit

ate

busi

ness

pla

nnin

g an

d si

mul

atio

n, a

nd d

ata

min

ing

tool

s. Th

e ab

ility

to in

terf

ace

to G

IS s

yste

ms

is

also

an

impo

rtant

con

side

ratio

n fo

r the

wat

er se

ctor

.

BI t

ools

sho

uld

be fu

lly c

apab

le o

f acc

essi

ng a

ny c

ombi

natio

n of

dat

a so

urce

s (O

LAP34

or r

elat

iona

l) w

hile

hid

ing

this

com

plex

ity fr

om th

e us

er a

nd e

nsur

ing

cons

iste

ncy,

inte

grity

and

acc

urac

y of

info

rmat

ion.

Is s

hort

they

sup

port

an o

pen

data

stra

tegy

and

bei

ng fu

lly w

eb-e

nabl

ed e

nabl

e ra

pid

low

-cos

t dep

loym

ent

and

mai

nten

ance

and

lots

of f

lexi

bilit

y to

mee

t evo

lvin

g bu

sine

ss n

eeds

.

Whi

le a

ll ER

P-ba

sed

syst

ems

(incl

udin

g th

e O

racl

e e-

Bus

ines

s Su

ite) c

ome

with

thei

r ow

n re

porti

ng to

ols,

thes

e ar

e of

ten

limite

d in

thei

r fun

ctio

nalit

y an

d in

tegr

atio

n, a

nd m

ay p

ut s

igni

fican

t ove

rhea

d on

the

syst

ems

data

base

and

infr

astru

ctur

e. T

hey

still

typi

cally

requ

ire s

peci

alis

t IT

supp

ort f

or p

rodu

ctio

n of

cu

stom

repo

rts. A

lso

not a

ll su

ch to

ols s

uppo

rt 3r

d pa

rty O

LAP

(mul

tidim

ensi

onal

) too

ls o

r int

erfa

ces.

Crit

ical

ly su

ch re

porti

ng to

ols h

ave

very

lim

ited

abili

ty

to im

port

data

from

oth

er so

urce

s and

bec

ause

they

lack

the

data

war

ehou

se su

ppor

t, th

eir p

erfo

rman

ce is

slow

.

Rec

omm

enda

tion

– Fo

rmal

Sys

tem

s Sel

ectio

n af

ter

Iden

tific

atio

n of

a R

obus

t Dat

a Pl

atfo

rm

Unl

ike

man

y so

ftwar

e ap

plic

atio

ns, a

n EI

S ca

n be

impl

emen

ted

in a

n ev

olut

iona

ry w

ay. I

n ot

her w

ords

, a s

tart

can

be m

ade

with

wha

teve

r dat

a is

ava

ilabl

e pr

ovid

ed th

at u

sers

und

erst

and

the

limita

tions

of t

he d

ata

that

sup

ports

the

info

rmat

ion

prov

ided

by

the

EIS.

In th

e ca

se o

f the

Jor

dan

wat

er s

ecto

r, w

e do

not

re

com

men

d th

at a

form

al sy

stem

s sel

ectio

n of

a B

I pla

tform

be

carr

ied

out u

ntil

mor

e de

taile

d pr

epar

ator

y w

ork

is c

arrie

d ou

t tha

t ide

ntifi

es so

me

area

s whe

re

data

ava

ilabi

lity

is h

igh

and

data

qua

lity

is g

ood.

The

se a

reas

then

form

a ro

bust

pla

tform

to b

egin

an

evol

utio

nary

app

roac

h to

EIS

impl

emen

tatio

n, w

ithou

t ris

king

the

cred

ibili

ty o

f the

who

le sy

stem

.

34 O

n-Li

ne A

naly

tical

Pro

cess

ing

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

In th

e Jo

rdan

ian

wat

er s

ecto

r, th

ere

are

two

area

s th

at a

re a

lread

y w

ell o

rgan

ized

with

gen

eral

ly g

ood

data

qua

lity.

The

se a

re th

e N

atio

nal W

ater

Mas

ter P

lan

and

the

Wat

er S

ecto

r Inv

estm

ent P

lan.

The

Wat

er In

form

atio

n Sy

stem

(WIS

) and

an

ongo

ing

GTZ

initi

ativ

e to

bui

ld a

Pro

ject

s D

atab

ase

prov

ide

a po

tent

ial

robu

st p

latfo

rm. U

sing

this

pla

tform

to in

form

a B

I to

ol s

yste

m s

elec

tion

wou

ld e

nabl

e an

ear

ly s

tart

on a

n ev

olut

iona

ry E

IS a

ppro

ach.

Suc

h an

d ap

proa

ch

wou

ld a

lso

help

to so

lve

som

e of

the

exis

ting

data

inte

grat

ion

issu

es fa

ced

by th

e W

IS (e

.g. w

ith th

e W

MIS

), an

d w

ould

allo

w e

asy

and

flexi

ble

acce

ss to

WIS

an

d Pr

ojec

ts D

atab

ase

info

rmat

ion

(in f

act a

llow

ing

the

two

data

sou

rces

to

be c

ombi

ned

and

cons

olid

ated

vie

ws

(or

“OLA

P cu

bes”

) de

fined

tha

t re

late

pr

ojec

t ne

eds

and

perf

orm

ance

to

the

WIS

) by

sec

tor

lead

ersh

ip.

This

wou

ld h

ave

an i

mm

edia

te i

mpa

ct o

n in

form

atio

n av

aila

bilit

y an

d aw

aren

ess

and

impr

ove

deci

sion

-mak

ing.

In sh

ort,

ther

e is

pot

entia

l her

e fo

r a “

quic

k w

in”

limite

d m

ore

by th

e av

aila

bilit

y of

inte

rnal

reso

urce

s tha

n fu

nds35

.

8.4.

6.

CO

STIN

G A

SSU

MPT

ION

S

Cos

ting

assu

mpt

ions

hav

e to

add

ress

the

cost

s of

pre

para

tory

dat

a w

ork

as w

ell a

s th

e ac

tual

pur

chas

e, p

rogr

amm

ing

and

impl

emen

tatio

n of

the

BI t

ool s

uite

, as

wel

l as

des

ign

of t

he d

ata

war

ehou

se a

nd E

TL36

rou

tines

. Th

e co

sts

of t

he p

repa

rato

ry w

ork

will

sub

stan

tially

exc

eed

thos

e of

the

act

ual

EIS

impl

emen

tatio

n. O

ur e

stim

ated

tota

l cos

t for

the

EIS

initi

ativ

e is

$2.

42M

.

The

follo

win

g as

sum

ptio

ns w

ere

used

in d

evel

opin

g th

ese

cost

est

imat

es:

So

ftwar

e co

sts a

re e

stim

ated

bas

ed o

n 50

use

rs: w

hich

wou

ld in

clud

e th

e M

inis

ter,

SGs,

ASG

s, an

d K

ey D

irect

ors

Th

e M

inis

try w

ill u

tiliz

e ex

istin

g da

taba

se li

cens

es, a

nd w

ill n

ot n

eed

to a

cqui

re n

ew d

atab

ase

licen

ses t

o de

velo

p th

e EI

S ba

ck-e

nd

Fi

nal s

oftw

are

cost

will

var

y ba

sed

on n

egot

iatio

ns w

ith th

e se

lect

ed v

endo

r

Impl

emen

tatio

n co

sts

assu

me

that

all

sour

ce s

yste

ms

are

in p

lace

. Cos

t of s

ourc

e sy

stem

s de

velo

pmen

t is

not i

nclu

ded

(maj

or s

ourc

e sy

stem

s m

issi

ng a

re

bein

g co

vere

d by

the

Bac

k O

ffic

e IT

MP

com

pone

nt)

Im

plem

enta

tion

cost

is s

igni

fican

tly h

ighe

r tha

n so

ftwar

e co

st a

s im

plem

enta

tion

incl

udes

dev

elop

men

t of t

he E

IS d

ata

back

-end

(dat

a ar

chite

ctur

e), a

nd

fron

t-end

(sc

reen

s). D

evel

opin

g th

e EI

S ba

ck-e

nd is

by

far

the

mos

t sig

nific

ant a

nd ti

me

cons

umin

g ta

sk o

f th

is p

roje

ct, w

hich

incl

udes

the

follo

win

g ac

tiviti

es:

Id

entif

ying

dat

a so

urce

s, in

clud

ing

syst

ems,

tabl

es, a

nd fi

elds

Ana

lyzi

ng d

ata

read

ines

s in

term

s of a

vaila

bilit

y, in

tegr

ity, q

ualit

y, a

nd u

pdat

e fr

eque

ncy

D

esig

ning

EIS

dat

a sc

hem

a

35 U

SAID

’s p

ropo

sed

Wat

er D

eman

d M

anag

emen

t Uni

t Pro

gram

whi

ch p

lans

to le

vera

ge th

e W

IS a

nd o

ther

wat

er d

ata

sour

ces

may

pro

vide

a u

sefu

l pla

tform

to in

itiat

e su

ch a

n ef

fort

and

gene

rate

a “

quic

k w

in”

here

. 36

Ext

ract

ion,

Tra

nsfo

rmat

ion

and

Load

– ro

utin

es to

pop

ulat

e an

d re

gula

rly u

pdat

e th

e da

ta w

areh

ouse

from

oth

er so

urce

dat

a sy

stem

s

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

D

esig

ning

Ext

ract

ion,

Tra

nsfo

rmat

ion,

and

Loa

d pr

oced

ures

to p

opul

ate

the

EIS

data

sche

ma

Im

plem

enta

tion

cost

mig

ht v

ary

base

d on

ven

dor s

elec

ted

to p

rovi

de p

rofe

ssio

nal s

ervi

ces

Im

plem

enta

tion

cost

can

sig

nific

antly

var

y ba

sed

on fi

nal s

cope

and

requ

irem

ents

of t

he E

IS (N

o. o

f KPI

s, N

o. o

f scr

eens

... e

tc) –

our

est

imat

es a

re b

ased

on

reas

onab

le a

nd a

dequ

ate

cove

rage

of t

he si

x su

bjec

t are

as d

efin

ed

8.4.

7.

IMPL

EM

EN

TA

TIO

N A

PPR

OA

CH

Dat

a A

rchi

tect

ure

Pre-

Wor

k

Giv

en th

e as

-is s

tatu

s of

info

rmat

ion

in th

e w

ater

sec

tor,

a da

ta a

rchi

tect

ure

exer

cise

is e

ssen

tial t

o th

e su

cces

s an

d su

stai

nabi

lity

of th

e EI

S sy

stem

and

any

fu

ture

Inf

orm

atio

n M

anag

emen

t (IM

), or

Dec

isio

n Su

ppor

t Sys

tem

(D

SS)

initi

ativ

e. T

he f

ollo

win

g st

eps

repr

esen

t a p

rove

n ap

proa

ch to

a s

ucce

ssfu

l dat

a ar

chite

ctur

e ex

erci

se:

Id

entif

y an

d al

ign

Info

rmat

ion

Man

agem

ent i

nitia

tives

, and

coo

rdin

ate

dono

r eff

orts

Iden

tify

exis

ting

data

sour

ces,

dat

a flo

ws,

busi

ness

pro

cess

es, s

tand

ards

and

pol

icie

s

Ass

ess d

ata

read

ines

s in

term

s of a

vaila

bilit

y, q

ualit

y, a

nd u

pdat

e fr

eque

ncy

A

sses

smen

t aga

inst

bes

t pra

ctic

es

D

evel

opin

g of

futu

re p

erfo

rman

ce g

oals

, obj

ectiv

es, a

nd b

usin

ess r

equi

rem

ents

Dev

elop

futu

re d

ata

arch

itect

ure,

dat

a m

odel

s, an

d da

ta d

efin

ition

s

Perf

orm

gap

ana

lysi

s, an

d hi

ghlig

ht a

ny is

sues

Dev

elop

hig

h le

vel c

hang

e m

anag

emen

t and

trai

ning

pla

n

Esta

blis

h da

ta g

over

nanc

e st

anda

rds,

polic

ies,

and

proc

esse

s

Prio

ritiz

e ke

y pe

rfor

man

ce su

bjec

t are

as fr

om th

e ex

ecut

ives

poi

nt o

f vie

w, a

nd b

egin

impl

emen

ting

the

top

prio

rity

area

s37

37 W

hile

our

Wor

king

Gro

up h

as a

lread

y su

gges

ted

thes

e, se

ctor

lead

ersh

ip w

ill n

eed

to b

e ac

tivel

y in

volv

ed in

thei

r con

firm

atio

n an

d re

finem

ent

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

EIS

Des

ign

and

Prog

ram

min

g

The

succ

ess o

f thi

s sta

ge is

pre

dica

ted

on h

igh

qual

ity d

ata

arch

itect

ure

pre-

wor

k ha

ving

bee

n co

mpl

eted

. Act

ive

sect

or le

ader

ship

invo

lvem

ent i

n pr

otot

ypin

g of

scre

ens i

s a k

ey su

cces

s fac

tor.

The

maj

or a

ctiv

ities

requ

ired

are

to:

D

efin

e bu

sine

ss re

quire

men

ts, i

nclu

ding

Key

Per

form

ance

Indi

cato

rs (K

PIs)

, bus

ines

s dim

ensi

ons,

view

s, ac

cess

righ

ts...

etc

Iden

tify

data

sour

ces,

incl

udin

g ta

bles

, and

fiel

ds

D

esig

n EI

S D

ata

mod

el

D

esig

n pr

oced

ures

to e

xtra

ct d

ata

from

orig

inal

sour

ce a

nd tr

ansf

orm

it to

the

EIS

data

sche

ma

Pr

iorit

ize

busi

ness

requ

irem

ents

Dev

elop

a p

roto

type

to te

st th

e co

ncep

t with

the

busi

ness

use

rs

D

evel

op b

usin

ess d

ata

laye

r usi

ng th

e B

usin

ess I

ntel

ligen

ce (B

I) to

ol

D

evel

op E

IS sc

reen

s and

ana

lytic

al re

ports

Impl

emen

t sec

urity

con

trols

and

acc

ess r

ight

s

Test

the

solu

tion

8.4.

8.

RIS

K F

AC

TO

RS

AN

D T

HE

IR M

ITIG

AT

ION

A n

umbe

r of

ris

k fa

ctor

s ex

ist f

or th

is I

TMP

com

pone

nt. T

hey

are

liste

d in

Tab

le 1

1 be

low

alo

ng w

ith s

ugge

sted

miti

gatio

n ap

proa

ches

. Org

aniz

atio

nal

resi

stan

ce to

an

EIS

initi

ativ

e is

qui

te c

omm

on, b

ut th

e su

cces

s of

the

impl

emen

tatio

n de

pend

s cr

itica

lly o

n ov

erco

min

g th

is a

nd o

n en

surin

g th

e or

gani

zatio

n is

read

y in

term

s of

per

form

ance

man

agem

ent t

o re

ceiv

e th

e EI

S. A

s us

ers

gain

com

fort

and

expe

rienc

e w

ith a

n EI

S, o

rgan

izat

iona

l res

ista

nce

ofte

n qu

ickl

y re

duce

s.

RR iiss kk

MM

ii tt iigg aa

tt ii oonn

Lack

of

orga

nizati

onal

read

iness

fro

m a

mana

geme

nt,

busin

ess u

nder

stand

ing, o

r data

back

end p

ersp

ectiv

es

Ass

essm

ent o

f the o

rgan

izatio

n’s re

adine

ss pr

ior to

the

comm

ence

ment

of the

proje

ct.

Outl

ining

any g

aps,

issue

s and

deve

loping

a ch

ange

ma

nage

ment

plan t

o add

ress

the i

ssue

s Re

sistan

ce t

o inf

orma

tion

shar

ing a

mong

the

thr

ee

entiti

es (M

WI, W

AJ, J

VA)

“Ch

ange

Man

agem

ent”

to br

idge t

he ga

p betw

een t

he th

ree

entiti

es.

Deta

iled d

efinit

ion of

the i

nform

ation

requ

ired (

not a

ll inf

orma

tion w

ill ha

ve to

be sh

ared

)

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

RR iiss kk

MM

ii tt iigg aa

tt ii oonn

Resis

tance

to

settin

g ac

tiona

ble,

and

meas

urab

le pe

rform

ance

indic

ators

“Ch

ange

man

agem

ent”

to ed

ucate

exec

utive

decis

ion

make

rs on

the i

mpor

tance

of pe

rform

ance

indic

ators.

This

EI

S ca

n only

mak

e the

infor

matio

n ava

ilable

for d

ecisi

on

make

rs. T

he sy

stem

can t

ake a

ction

on th

e info

rmati

on –

only

perfo

rman

ce m

anag

emen

t can

enco

urag

e tha

t Pr

oduc

ing a

sys

tem w

ith d

ata in

tegrity

issu

es. T

his w

ill re

sult

in us

ers’

lack

of co

nfide

nce

in the

sys

tem, a

nd

grad

ual lo

ss of

supp

ort, o

r inter

est in

using

it.

Pro

viding

clea

r data

integ

rity an

d qua

lity st

anda

rds t

o sou

rce

depa

rtmen

ts or

IT di

vision

s P

erfor

ming

a se

cond

leve

l of d

ata in

tegrity

chec

ks du

ring

the E

TL pr

oces

s

Tabl

e 11

- EI

S Im

plem

enta

tion

Ris

ks

8.4.

9.

KE

Y S

UC

CE

SS F

AC

TO

RS

Ove

rall

key

succ

ess f

acto

rs in

clud

e:

Fi

ndin

g an

app

ropr

iate

inte

rnal

“ch

ampi

on”

with

in se

ctor

lead

ersh

ip to

bui

ld a

war

enes

s and

supp

ort f

or th

e va

lue

of th

e EI

S in

itiat

ive

En

surin

g ac

tive

and

cont

inuo

us in

volv

emen

t of a

ll en

d us

ers f

rom

sect

or le

ader

ship

to m

iddl

e m

anag

emen

t (a

role

for t

he c

ham

pion

to p

lay)

Del

iver

ing

a si

mpl

e pr

otot

ype

quic

kly

Cha

nge

man

agem

ent,

com

mun

icat

ion

and

train

ing

to o

verc

ome

resi

stan

ce

8.4.

10.

TIM

ING

OF

IMPL

EM

EN

TA

TIO

N

The

high

vis

ibili

ty a

nd s

trong

(if

diff

icul

t to

quan

tify

in a

dvan

ce)

busi

ness

cas

e fo

r an

EIS

impl

emen

tatio

n pr

ovid

es a

stro

ng c

ase

for e

arly

impl

emen

tatio

n w

ithin

the

con

stra

ints

of

avai

labl

e IT

res

ourc

es.

Dur

ing

and

imm

edia

tely

afte

r th

e or

gani

zatio

nal

rest

ruct

urin

g of

the

Hea

dqua

rters

Org

aniz

atio

ns I

T D

irect

orat

es to

form

the

HQ

IT, I

T re

sour

ces

will

be

seve

rely

con

stra

ined

and

bus

y w

ith tr

aini

ng a

nd c

apac

ity b

uild

ing.

A s

ugge

sted

evo

lutio

nary

app

roac

h to

im

plem

entin

g th

e EI

S w

as d

escr

ibed

abo

ve in

our

dis

cuss

ion

on so

lutio

n op

tions

.

If s

trong

inte

rnal

reso

urce

s ou

tsid

e th

e H

QIT

can

be

dedi

cate

d to

suc

h an

app

roac

h (p

erha

ps e

ven

seco

nded

to th

e H

QIT

), an

d si

mpl

y pr

ogra

m m

anag

ed b

y th

e H

QIT

, it m

ay w

ell b

e po

ssib

le to

ach

ieve

a q

uick

if p

artia

l win

. The

re m

ay b

e so

me

adva

ntag

e in

ear

ly p

rocu

rem

ent o

f th

e B

I to

ol to

sup

port

adva

nce

effo

rts o

n EI

S de

velo

pmen

t usi

ng n

on-H

QIT

sta

ff. T

his

coul

d he

lp s

olve

sho

rt-te

rm is

sues

with

, for

exa

mpl

e, W

IS/W

MIS

/Pro

ject

Dat

abas

e in

tegr

atio

n. W

e ha

ve r

efle

cted

this

pos

sibi

lity

in d

evel

opin

g ou

r su

gges

ted

phas

ing

in S

ectio

n 10

. How

ever

com

plet

e im

plem

enta

tion

of th

e EI

S is

unl

ikel

y to

be

achi

eved

in

side

of 3

yea

rs fr

om c

omm

ence

men

t of i

mpl

emen

tatio

n of

the

ITM

P.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

8.4.

11.

POT

EN

TIA

L U

SAID

INPU

TS

USA

ID s

uppo

rt fo

r thi

s pr

ojec

t will

be

prov

ided

thro

ugh

the

tech

nica

l ass

ista

nce

to th

e H

QIT

, and

like

all

othe

r ITM

P co

mpo

nent

s, th

e EI

S in

itiat

ive

wou

ld

be c

ontra

cted

thro

ugh

and

prog

ram

man

aged

by

the

HQ

IT. C

ontra

ctin

g ap

proa

ches

to s

uppo

rt an

ear

ly s

tart

on th

e ev

olut

iona

ry a

ppro

ach

may

hav

e to

be

furth

er e

xplo

red.

The

diff

icul

ty o

f id

entif

ying

in a

dvan

ce q

uant

ifiab

le b

enef

its f

or th

e EI

S m

ay m

ake

GoJ

co-

finan

cing

of

this

initi

ativ

e m

ore

diff

icul

t. H

owev

er th

e ac

tive

invo

lvem

ent o

f ou

tsid

e m

inis

tries

incl

udin

g M

oIC

T an

d th

e G

over

nmen

t Per

form

ance

Mon

itorin

g U

nit i

n th

e Pr

ime

Min

istry

may

pro

vide

an

aven

ue f

or

fund

ing

so th

at th

e w

ater

sect

or c

an p

rovi

de a

bes

t pra

ctic

e ex

ampl

e of

sect

or m

anag

emen

t with

in Jo

rdan

.

8.5.

C

IS/B

illin

g Sy

stem

8.5.

1.

EX

EC

UT

IVE

SU

MM

AR

Y O

F W

OR

KG

RO

UP

RE

CO

MM

EN

DA

TIO

NS

This

Gro

up s

tarte

d by

fol

low

ing

the

stan

dard

pro

cess

use

d by

all

the

Wor

king

Gro

ups

invo

lved

in s

yste

ms

initi

ativ

es. T

hey

quic

kly

deve

lope

d a

deta

iled

anal

ysis

of

curr

ent

busi

ness

pro

cess

es a

nd a

det

aile

d co

mpa

rison

of

the

lega

cy b

illin

g sy

stem

s in

use

– p

rimar

ily C

OB

OSS

II

and

X7.

CO

BO

SS I

I w

as

orig

inal

ly d

evel

oped

in-h

ouse

on

a C

obol

pla

tform

, and

sub

sequ

ently

upg

rade

d to

pro

duce

ver

sion

II. X

7 w

as in

trodu

ced

by L

EMA

und

er th

eir m

anag

emen

t co

ntra

ct to

ope

rate

the

Am

man

wat

er a

nd w

aste

wat

er s

yste

m. X

7 w

as a

lso

impl

emen

ted

at A

WC

and

a c

ontra

ct w

orth

aro

und

$450

K w

as s

igne

d in

Mar

ch

2005

with

the

Fren

ch v

endo

r to

rollo

ut th

e sy

stem

acr

oss t

he re

st o

f WA

J - b

ut th

e ro

llout

did

not

go

ahea

d at

that

tim

e.

The

Gro

up th

en c

ontin

ued

thei

r an

alys

is p

roce

ss to

dev

elop

aga

in a

ver

y de

taile

d se

t of

futu

re b

usin

ess

requ

irem

ents

that

incl

uded

man

y re

cogn

ized

bes

t pr

actic

es a

nd s

ever

al “

Jord

aniz

atio

n” fe

atur

es to

mee

t the

ver

y un

ique

requ

irem

ents

of t

he Jo

rdan

wat

er s

ecto

r – n

otab

ly th

e po

tent

ial t

o re

duce

adm

inis

trativ

e lo

sses

in N

RW

. In

addi

tion

the

Gro

up b

egan

dev

elop

ing

a bu

sine

ss c

ase

for a

new

CIS

/Bill

ing

syst

em.

The

Gro

up’s

wor

k qu

ickl

y co

nfirm

ed th

at X

7 ha

d re

ceiv

ed m

ixed

revi

ews

acro

ss th

e se

ctor

and

iden

tifie

d si

gnifi

cant

def

icie

ncie

s in

its

func

tiona

lity

agai

nst

the

deta

iled

set

of f

utur

e bu

sine

ss r

equi

rem

ents

the

y ha

d al

read

y de

velo

ped.

Mea

nwhi

le A

WC

wer

e ac

tivel

y co

nsid

erin

g a

priv

ate

join

t ve

ntur

e w

ith a

n ou

tsid

e sy

stem

s dev

elop

er to

bui

ld a

nd m

arke

t the

ir ow

n C

IS/B

illin

g so

lutio

n as

an

alte

rnat

ive

to c

ontin

uing

the

use

of X

7.

At

this

tim

e, s

ecto

r le

ader

ship

mad

e a

deci

sion

, w

ith U

SAID

’s s

uppo

rt fo

llow

ing

conc

erns

exp

ress

ed b

y th

e O

racl

e e-

Bus

ines

s Su

ite i

mpl

emen

tatio

n co

nsul

tant

tha

t de

lay

in i

mpl

emen

ting

X7

was

im

pact

ing

thei

r ow

n im

plem

enta

tion

sche

dule

, to

prec

ede

with

the

X7

rollo

ut a

ccor

ding

to

the

prev

ious

ly

sign

ed c

ontra

ct. T

he W

orki

ng G

roup

’s f

indi

ngs

wer

e no

t con

side

red

in m

akin

g th

is X

7 ro

llout

dec

isio

n an

d th

e IT

MP

Stee

ring

Com

mitt

ee w

as u

nabl

e to

ne

gotia

te su

ffic

ient

tim

e to

allo

w c

ompl

etio

n of

the

Wor

king

Gro

up p

roce

ss b

efor

e im

plem

enta

tion

of th

e ro

llout

.

This

had

an

imm

edia

te im

pact

on

the

Gro

up’s

cap

acity

to c

ontri

bute

to th

e an

alys

is p

roce

ss a

s m

any

of th

e sa

me

indi

vidu

als

wer

e ch

arge

d w

ith d

irect

ing

and

man

agin

g th

e X

7 ro

llout

. Due

dili

genc

e on

pot

entia

l bet

ter a

ltern

ativ

es to

X7

(bot

h be

st o

f bre

ed a

nd A

WC

’s p

ropo

sed

assi

sted

in-h

ouse

dev

elop

men

t eff

ort)

was

som

ewha

t cur

taile

d. H

owev

er, t

he G

roup

reco

gniz

ed a

nd q

uick

ly p

roce

eded

to ta

ke a

dvan

tage

of t

he o

ppor

tuni

ty to

feed

its

func

tiona

lity

conc

erns

to th

e X

7 ve

ndor

(Ade

lior)

who

resp

onde

d by

indi

catin

g th

at m

any

of th

ese

coul

d be

acc

omm

odat

ed d

urin

g ro

llout

subj

ect t

o so

me

cust

omiz

atio

n. W

hile

this

shou

ld

in n

o w

ay b

e ta

ken

as a

n en

dors

emen

t by

the

Gro

up o

f the

sui

tabi

lity

of X

7 to

fully

mee

t the

sec

tor’

s C

IS/B

illin

g ne

eds,

it do

es re

cogn

ize

the

prac

tical

ity o

f th

e si

tuat

ion

and

tries

to m

ake

the

best

of i

t.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

The

sect

or n

ow n

eeds

to se

e w

heth

er A

delio

r can

cos

t-eff

ectiv

ely

impr

ove

the

func

tiona

lity

of it

s X7

syst

em, a

nd w

heth

er it

can

ade

quat

ely

mee

t loc

al su

ppor

t ex

pect

atio

ns. R

egar

dles

s of

this

dec

isio

n, th

e G

roup

was

abl

e to

con

tinue

its

revi

ew o

f al

tern

ativ

e sy

stem

s at

leas

t to

the

poin

t of

cons

iste

ncy

with

oth

er

Gro

ups,

alth

ough

no

exam

ple

vend

or d

emon

stra

tions

wer

e po

ssib

le. S

houl

d X

7 fa

il to

ade

quat

ely

mee

t sec

tor e

xpec

tatio

ns, w

e re

com

men

d a

form

al s

yste

ms

sele

ctio

n be

twee

n re

gion

ally

dev

elop

ed “

best

of b

reed

” sy

stem

s and

AW

C’s

pro

pose

d as

sist

ed in

-hou

se d

evel

oped

pro

duct

be

mad

e –

givi

ng h

ighe

r wei

ghtin

g to

the

“Jor

dani

zatio

n” is

sues

iden

tifie

d in

the

Gro

up’s

wor

k.

Reg

ardl

ess

of a

ny u

ncer

tain

ty in

the

abili

ty o

f X7

to fu

lly m

eet s

ecto

r nee

ds, a

n op

portu

nity

als

o ex

ists

(tho

ugh

it is

not

yet

cle

ar th

at it

will

be

real

ized

) to

com

plet

e th

e de

velo

pmen

t of

the

bus

ines

s ca

se a

nd u

se t

his

as a

tar

get

perf

orm

ance

bas

elin

e fo

r th

e X

7 im

plem

enta

tion

– to

man

age

both

the

sys

tem

co

nfig

urat

ion

and

asso

ciat

ed p

roce

ss a

nd in

stitu

tiona

l cha

nges

requ

ired.

The

Con

sulta

nt h

as m

ade

som

e es

timat

es o

f the

mag

nitu

de o

f thi

s bus

ines

s cas

e ba

sed

on th

e G

roup

’s in

itial

wor

k. I

t wou

ld b

e irr

atio

nal t

o pr

ocee

d w

ith th

e X

7 ro

llout

with

out t

arge

ting

and

real

izin

g th

ese

bene

fits

as th

ey w

ould

con

tribu

te

sign

ifica

nt c

ash

savi

ngs

to t

he s

ecto

r. O

nce

embe

dded

, the

se p

roce

ss a

nd i

nstit

utio

nal

chan

ges

coul

d al

so e

asily

be

leve

rage

d by

any

fut

ure

CIS

/Bill

ing

syst

em.

In s

hort,

the

Gro

up h

as g

one

som

e w

ay, a

nd c

ould

eas

ily c

ompl

ete

the

proc

ess,

to a

chie

ving

a “

quic

k w

in”

for t

he s

ecto

r by

appl

ying

thei

r fin

ding

s to

the

X7

rollo

ut d

ecis

ion

that

was

giv

en. T

he G

roup

has

als

o de

velo

ped

an e

xcel

lent

set

of

syst

em s

peci

ficat

ions

that

wou

ld f

orm

a s

olid

fou

ndat

ion

for

any

futu

re

syst

ems

sele

ctio

n or

dev

elop

men

t eff

ort –

that

wou

ld a

nyw

ay b

e a

requ

irem

ent a

t im

plem

enta

tion.

Adv

anta

ge o

f th

is h

as a

lread

y be

en ta

ken

by A

WC

in

refin

ing

its R

FP fo

r its

pro

pose

d cu

stom

dev

elop

men

t eff

ort.

In th

e m

eant

ime,

ens

urin

g th

at th

ese

func

tiona

lity

requ

irem

ents

are

app

lied

in fu

ll to

the

X7,

and

th

at a

targ

eted

bus

ines

s ca

se is

bui

lt re

aliz

ed d

urin

g im

plem

enta

tion,

will

gre

atly

incr

ease

the

retu

rn o

n th

e X

7 ro

llout

and

on

any

futu

re C

IS/B

illin

g sy

stem

re

plac

emen

t.

8.5.

2.

AS-

IS S

ITU

AT

ION

Bus

ines

s Pro

cess

es a

nd S

yste

ms S

uppo

rt

A d

etai

led

desc

riptio

n of

cur

rent

met

er re

adin

g, b

illin

g, a

nd c

olle

ctio

ns p

roce

sses

is in

clud

ed in

Vol

ume

II in

the

CIS

/Bill

ing

sect

ion.

Tw

o ve

rsio

ns o

f an

in-

hous

e de

velo

ped

Cob

ol C

IS/B

illin

g sy

stem

are

cur

rent

ly in

use

acr

oss

the

sect

or, a

long

with

the

X7

billi

ng s

yste

m in

trodu

ced

unde

r the

LEM

A m

anag

emen

t co

ntra

ct.

The

proc

ess

desc

riptio

n in

clud

es a

det

aile

d co

mpa

rison

of

wha

t ac

tiviti

es a

re s

uppo

rted

by t

hese

diff

eren

t sy

stem

s. Th

e lis

t of

act

iviti

es w

as

deve

lope

d by

the

Gro

up, u

sing

a c

ompr

ehen

sive

list

of a

ccep

ted

best

pra

ctic

es in

CIS

/Bill

ing,

with

app

ropr

iate

“Jo

rdan

izat

ion”

.

Not

e th

at J

VA

use

s th

e W

ater

Man

agem

ent I

nfor

mat

ion

Syst

em (

WM

IS)

for

its b

illin

g (a

long

with

man

y ot

her

func

tions

that

incl

ude

plan

ning

as

wel

l as

trans

actio

n ca

ptur

e an

d m

anag

emen

t). J

VA

’s I

T D

irect

or s

aw n

o cu

rren

t ne

ed t

o up

grad

e th

is s

yste

m.

How

ever

, fu

ture

bill

ing

syst

em d

evel

opm

ent

or

impl

emen

tatio

n w

ithin

WA

J ca

n re

adily

be

adap

ted

to J

VA

. The

maj

or is

sue

at J

VA

rega

rdin

g w

ater

reve

nues

is m

ore

linke

d to

the

inst

itutio

nal i

ssue

s th

at

prod

uce

low

cos

t rec

over

y be

caus

e of

the

soci

al ta

riffs

, and

the

inab

ility

to d

isco

nnec

t non

-pay

ing

cust

omer

s, th

at a

re d

riven

by

JVA

’s b

road

er d

evel

opm

ent

man

date

. Th

ese

issu

es a

re o

utsi

de t

he s

cope

of

this

rep

ort

but

are

bein

g ad

dres

sed

in p

art

thro

ugh

farm

er’s

coo

pera

tives

tha

t ca

n he

lp s

elf-

polic

e no

n-pa

ymen

ts.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

CO

BO

SS B

illin

g Sy

stem

For

Ope

ratin

g U

tiliti

es t

hat

use

CO

BO

SS (

eith

er v

ersi

on),

the

met

er r

eadi

ng p

roce

ss i

s in

itiat

ed,

gene

rally

on

a qu

arte

rly b

asis

, by

the

Sub

scrib

ers

Dep

artm

ent.

Muc

h of

the

met

er re

adin

g da

ta c

olle

ctio

n is

stil

l don

e m

anua

lly u

sing

pre

-prin

ted

shee

ts, b

ut in

som

e ar

eas

GSM

met

er re

adin

g an

d ha

nd-h

eld

met

er re

ader

s are

bei

ng tr

iale

d. If

a m

eter

can

not b

e re

ad in

the

curr

ent c

ycle

, it i

s est

imat

ed a

nd si

mpl

y re

ad in

the

next

cyc

le.

Bill

prin

ting

is a

gain

ini

tiate

d by

req

uest

fro

m t

he S

ubsc

riber

s D

epar

tmen

t, an

d w

here

CO

BO

SS 2

is

in u

se,

incl

udes

a c

heck

of

the

bill

valu

e fo

r re

ason

able

ness

. Out

liers

are

che

cked

aga

inst

the

met

er re

adin

g (f

or d

ata

entry

err

ors)

, or t

he m

eter

is re

-rea

d by

man

ual i

ssua

nce

of a

wor

k or

der i

f the

read

ing

itsel

f app

ears

to b

e ou

t of l

imits

. Bill

s are

dis

tribu

ted

man

ually

be

colle

ctor

s with

bill

issu

ance

reco

rds a

lso

bein

g en

tere

d in

to th

e sy

stem

.

Cus

tom

ers

have

fou

r pa

ymen

t cha

nnel

s av

aila

ble

to th

em –

ban

ks, f

ield

col

lect

ion,

pos

t off

ices

and

res

iden

tial c

olle

ctio

n. R

ecei

pts

data

(in

the

bank

s ca

se

sum

mar

ized

and

upl

oade

d di

rect

ly b

y em

ail o

r flo

ppy

disk

) are

ent

ered

into

the

syst

em, c

usto

mer

bal

ance

s are

adj

uste

d an

d re

venu

e re

ports

pre

pare

d.

Whe

n co

mpa

red

to th

e lis

t of “

Jord

aniz

ed”

best

pra

ctic

e fu

nctio

nalit

y, C

OB

OSS

2 fu

lly c

over

s on

ly 9

of t

he 2

8 ke

y fu

nctio

nalit

ies

iden

tifie

d. A

noth

er fo

ur

(new

cus

tom

er a

pplic

atio

ns, p

aym

ent c

ontro

lling

, met

er d

ata

chan

ges,

and

cust

omer

pay

men

t his

tory

) are

par

tially

cov

ered

. Maj

or g

aps i

nclu

de:

H

and

held

supp

ort

Fl

exib

ility

in th

e m

eter

read

ing

cycl

e

Dec

isio

n m

atrix

supp

ort (

data

val

idat

ion

and

dete

rmin

atio

n of

cor

rect

ive

actio

n ne

eded

)

Abi

lity

to h

andl

e m

eter

cha

nge

outs

Elec

troni

c re

ceip

ts

B

ad c

heck

pro

cess

ing

C

usto

mer

reco

rds (

non-

finan

cial

dat

a)

O

n-lin

e in

terf

acin

g to

GIS

and

Ora

cle

finan

cial

s

Supp

ort f

or n

on re

venu

e w

ater

con

trol

Se

wer

age

billi

ng (t

his i

s cur

rent

ly h

andl

ed in

a se

para

te S

DS

syst

em)

M

anag

emen

t of c

usto

mer

car

e an

d ob

ject

ions

Trac

king

of n

ew c

onne

ctio

ns c

osts

Wat

er ta

nker

bill

ing

A

utom

atic

issu

e of

wor

k or

ders

Adj

ustm

ent o

f wat

er v

olum

e bi

lled

whe

n cu

stom

er b

ills a

re a

djus

ted

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

Add

ition

al s

treng

ths

note

d fo

r CO

BO

SS in

clud

e no

lice

nse

cost

s, gu

aran

teed

inte

rnal

sup

port,

and

abs

ence

of b

ugs

due

to lo

ng e

xper

ienc

e w

ith th

e sy

stem

, lo

w s

tora

ge n

eeds

, use

r-fr

iend

ly a

nd h

ighl

y pr

oduc

tive

inte

rfac

es a

nd o

fflin

e G

IS in

tegr

atio

n. E

xcha

nge

of d

ata

with

GIS

, fin

anci

als,

SDS,

and

the

DC

MM

S ap

plic

atio

n ar

e in

fact

all

poss

ible

but

onl

y of

fline

. Int

erna

l con

trols

app

ear t

o be

a si

gnifi

cant

wea

knes

s bot

h in

pro

cess

and

syst

em te

rms.

X7

CIS

/Bill

ing

Syst

em

X7

is c

urre

ntly

in u

se a

t LEM

A a

nd A

WC

, and

at W

AJ

Hea

dqua

rters

for p

rivat

e w

ell b

illin

g. X

7 fu

lly c

over

s 14

of t

he 2

8 ke

y fu

nctio

nalit

ies

iden

tifie

d as

“J

orda

nize

d” b

est p

ract

ices

, and

par

tially

mee

ts a

noth

er 4

requ

irem

ents

. It i

nclu

des s

ome

supp

ort f

or h

and

held

met

er re

ader

s, su

ppor

ts e

lect

roni

c re

ceip

ts, a

nd

hand

les

met

er d

ata,

cus

tom

er r

ecor

ds a

nd p

aym

ent

cont

rols

muc

h be

tter.

Bad

che

cks

are

also

han

dled

, bu

t th

e pr

oces

s is

not

eff

ectiv

e. W

hile

sep

arat

e cu

stom

er c

are

syst

ems a

re in

use

, X7

gene

rally

pro

vide

s goo

d re

al-ti

me

supp

ort t

o th

e fr

ont o

ffic

e to

han

dle

cust

omer

issu

es. I

ts u

se o

f del

iver

y po

int c

odes

as

a ge

ogra

phic

refe

renc

e ke

y to

man

age

all a

spec

ts o

f the

cus

tom

er re

latio

nshi

p is

ver

y fle

xibl

e an

d va

luab

le. T

he s

yste

m a

lso

has

muc

h be

tter a

cces

s co

ntro

l. H

owev

er, d

ata

entry

is m

uch

slow

er th

an in

CO

BO

SS b

ecau

se o

f com

plex

scre

en d

esig

n.

Maj

or g

aps i

n X

7 fu

nctio

nalit

y ag

ain

incl

ude:

Dec

isio

n m

atrix

supp

ort

O

n-lin

e in

terf

acin

g to

GIS

and

Ora

cle

finan

cial

s

Supp

ort f

or n

on re

venu

e w

ater

con

trol

Se

wer

age

billi

ng

M

anag

emen

t of c

usto

mer

car

e an

d ob

ject

ions

Trac

king

of n

ew c

onne

ctio

ns c

osts

Wat

er ta

nker

bill

ing

A

utom

atic

issu

e of

wor

k or

ders

Add

ition

al w

eakn

esse

s no

ted

for X

7 in

clud

e lo

w p

erfo

rman

ce a

nd s

low

dat

a en

try, h

igh

stor

age

need

s, no

acc

ess

for d

evel

oper

s to

mod

ify th

e so

urce

cod

e38,

licen

se c

osts

and

ver

y w

eak

loca

l sup

port.

Ove

rall

AW

C, w

ho p

rovi

ded

the

Gro

up w

ith a

com

preh

ensi

ve o

verv

iew

of t

heir

X7

expe

rienc

e, e

mph

asiz

ing

both

its

stre

ngth

s an

d w

eakn

esse

s an

d le

sson

s le

arne

d, fe

lt th

at X

7 pr

ovid

ed v

alua

ble

insi

ght i

nto

outs

ide

best

pra

ctic

es a

s a

“bes

t of b

reed

” sy

stem

. How

ever

, wea

knes

ses

in u

ser f

riend

lines

s an

d sy

stem

38 T

his i

s not

unt

ypic

al o

f mar

ket b

ased

syst

ems –

mod

ifica

tion

of so

urce

cod

e w

ithou

t ver

y tig

ht in

tern

al IT

con

trols

is n

ot a

reco

mm

ende

d pr

actic

e.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

supp

ort

detra

cted

sig

nific

antly

fro

m t

his.

Add

ition

al “

flex

field

s” d

o al

low

som

e di

rect

cus

tom

izat

ion

by I

T st

aff

but

cont

rols

ove

r da

ta i

nteg

rity

wer

e id

entif

ied

as a

con

cern

her

e to

o, a

s was

the

abili

ty to

dire

ctly

edi

t dat

abas

e re

cord

s.

LEM

A is

usi

ng o

fflin

e G

IS a

pplic

atio

ns to

opt

imiz

e its

met

er re

adin

g ro

utes

– a

gain

a re

cogn

ized

bes

t pra

ctic

e.

8.5.

3.

MA

JOR

IMPR

OV

EM

EN

T A

RE

AS

Maj

or im

prov

emen

t are

as id

entif

ied

by th

e G

roup

acr

oss b

oth

proc

esse

s and

syst

ems i

nclu

de:

A

bsen

ce o

f on-

line

acce

ss in

all

regi

onal

off

ices

Hig

h %

of e

stim

ated

met

er re

adin

gs

H

igh

% o

f uns

eale

d m

eter

s

Gro

wth

in a

rrea

rs

N

o ag

ing

repo

rts to

hel

p co

ntro

l arr

ears

Lim

ited

inte

rfac

ing

to o

ther

syst

ems (

finan

cial

s, G

IS, A

M-M

M, B

MFO

, SC

AD

A

Su

ppor

t for

ATM

, VIS

A a

nd o

ther

pay

men

t met

hods

Add

ition

al w

eakn

esse

s ap

pear

to

exis

t in

int

erna

l co

ntro

ls, a

nd i

n re

venu

e as

sura

nce

and

NR

W c

ontro

l. Id

eally

a C

IS/B

illin

g sy

stem

can

use

zon

al s

ub-

met

erin

g to

hel

p cr

oss-

chec

k th

at th

e sy

stem

is in

con

trol a

cros

s a

zone

. Whi

le d

iffer

ence

s in

tech

nica

l los

ses

mak

e it

diff

icul

t to

com

pare

zon

es, t

rend

s ov

er

time

may

stil

l hel

p id

entif

y ch

ange

s in

adm

inis

trativ

e lo

sses

. The

uni

que

oper

atio

nal i

ssue

s w

ithin

Jor

dan

(inte

rmitt

ent w

ater

dis

tribu

tion

lead

ing

to p

ipes

fil

ling

and

empt

ying

, and

met

ers

runn

ing

pote

ntia

lly f

ast

or s

low

). In

tegr

atio

n w

ith B

MFO

, SC

AD

A, A

M-M

M a

nd G

IS s

yste

ms

can

all h

elp

here

and

a

com

preh

ensi

ve sy

stem

s pla

n co

uld

be d

evel

oped

show

ing

how

ava

ilabl

e da

ta c

ould

bes

t be

anal

yzed

and

inte

grat

ed to

man

age

this

ver

y im

porta

nt is

sue.

Whi

le d

etai

led

activ

ity (i

.e. p

roce

ss c

onte

nt) c

ompa

rison

s aga

inst

bes

t pra

ctic

e he

lp id

entif

y im

prov

emen

t opp

ortu

nitie

s, m

easu

rem

ent o

f pro

cess

per

form

ance

an

d id

entif

icat

ion

of o

ppor

tuni

ties

to i

mpr

ove

that

per

form

ance

ofte

n pr

ovid

es l

arge

r op

portu

nitie

s. M

any

of t

hese

are

qui

te s

impl

e, b

ut t

hey

are

easi

ly

over

look

ed if

the

emph

asis

is a

lway

s on

proc

ess m

appi

ng, n

ot o

vera

ll pr

oces

s and

syst

em p

erfo

rman

ce.

Ther

e is

a m

ajor

opp

ortu

nity

acr

oss

the

sect

or to

sig

nific

antly

red

uce

the

met

er r

ead

to c

ash

colle

ctio

n cy

cle

time.

Thi

s ha

s al

read

y be

en r

ecog

nize

d, a

nd

impl

emen

ted

with

X7’

s su

ppor

t for

flex

ible

bill

ing

cycl

es, a

t AW

C w

here

mon

thly

inst

ead

of q

uarte

rly b

illin

g ju

st o

f the

top

50 c

usto

mer

s by

con

sum

ptio

n ga

ve a

one

-tim

e ca

sh in

flow

of

1M J

D. W

hile

Aqa

ba’s

cus

tom

er b

ase

is u

niqu

e in

the

Kin

gdom

, thi

s id

ea is

one

that

mus

t be

care

fully

con

side

red.

It i

s di

scus

sed

furth

er b

elow

, alo

ng w

ith o

ther

opp

ortu

nitie

s, un

der t

he B

enef

its Id

entif

icat

ion

sect

ion.

8.5.

4.

FUT

UR

E B

USI

NE

SS R

EQ

UIR

EM

EN

TS

The

Gro

up’s

fut

ure

busi

ness

req

uire

men

ts w

ere

deve

lope

d w

ith r

efer

ence

to f

utur

e ne

eds,

best

pra

ctic

es a

nd J

orda

n-sp

ecifi

c ne

eds,

and

are

deta

iled,

alo

ng

with

add

ition

al r

equi

rem

ents

sug

gest

ed b

y th

e C

onsu

ltant

, in

Vol

ume

II. A

s de

scrib

ed a

bove

they

wer

e us

ed to

eva

luat

e th

e as

-is p

erfo

rman

ce o

f th

e tw

o

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

billi

ng s

yste

ms

in u

se a

cros

s th

e se

ctor

. The

y pr

ovid

e a

valu

able

refe

renc

e po

int f

or a

ny fu

ture

sys

tem

s se

lect

ion.

AW

C h

as a

lso

prop

osed

ass

iste

d in

-hou

se

deve

lopm

ent o

f its

ow

n C

IS/B

illin

g sy

stem

as

a re

plac

emen

t for

X7.

A p

rivat

e se

ctor

dev

elop

er h

as b

een

iden

tifie

d as

a p

artn

er a

nd a

n R

FP a

nd d

etai

led

func

tiona

l sy

stem

s sp

ecifi

catio

n pr

epar

ed. W

hile

thi

s ha

s no

t be

en m

ade

avai

labl

e to

the

Gro

up f

or c

omm

erci

al r

easo

ns, i

nfor

mal

exc

hang

e of

bus

ines

s re

quire

men

ts b

etw

een

the

Gro

up a

nd A

WC

resu

lted

in im

prov

emen

ts to

bot

h se

ts o

f req

uire

men

ts.

In th

e M

arch

-Apr

il tim

efra

me,

a d

ecis

ion

was

mad

e by

sect

or le

ader

ship

to c

ompl

ete

the

roll

out o

f the

X7

billi

ng sy

stem

acr

oss t

he K

ingd

om p

er th

e co

ntra

ct

sign

ed in

Mar

ch 2

005.

Man

y of

the

Gro

up m

embe

rs w

ere

aske

d to

be

invo

lved

in th

e pr

ogra

m a

nd te

chni

cal m

anag

emen

t of t

his

rollo

ut –

wor

king

clo

sely

w

ith th

e ve

ndor

Ade

lior.

The

Gro

up th

eref

ore

took

the

oppo

rtuni

ty to

revi

sit t

heir

asse

ssm

ent o

f X7

func

tiona

lity

agai

nst t

heir

best

pra

ctic

e lis

t and

iden

tify

pote

ntia

l sys

tem

fixe

s, co

nfig

urat

ion

chan

ges,

cust

omiz

atio

ns, a

nd in

terf

acin

g re

quire

men

ts th

at c

ould

be

cons

ider

ed fo

r inc

orpo

ratio

n in

to th

e X

7 ro

llout

. The

re

vise

d X

7 as

sess

men

t is i

nclu

ded

in V

olum

e II

.

Whi

le s

ome

key

issu

es a

re s

till b

eing

neg

otia

ted

(incl

udin

g G

IS a

nd f

utur

e A

M-M

M in

terf

acin

g, c

aptu

re a

nd p

roce

ssin

g of

all

reve

nue

sour

ces

incl

udin

g se

wer

age,

and

pot

entia

l us

e in

NR

W c

ontro

l, an

d di

rect

CIS

and

cus

tom

er c

are

supp

ort)

ther

e ha

s be

en a

sig

nific

ant

impr

ovem

ent

in l

ever

agin

g th

e fu

nctio

nalit

y al

read

y av

aila

ble

with

in X

7. A

dditi

onal

feat

ures

may

requ

ire s

ome

reco

nfig

urat

ion

and/

or c

usto

miz

atio

n an

d es

timat

es fo

r the

cos

t of t

hese

are

be

ing

disc

usse

d an

d ne

gotia

ted.

Ove

rall

the

timel

y in

put o

f the

Gro

up’s

wor

k in

to th

e X

7 de

cisi

on h

as re

sulte

d in

sig

nific

ant i

mpr

ovem

ents

to th

e sy

stem

and

its

futu

re im

plem

enta

tion.

The

futu

re su

cces

s of t

he X

7 sy

stem

now

dep

ends

hea

vily

on

the

qual

ity a

nd re

spon

sive

ness

of i

ts su

ppor

t by

the

vend

or.

8.5.

5.

BE

NE

FIT

S ID

EN

TIF

ICA

TIO

N

Est

imat

ion

of T

angi

ble

Ben

efits

Maj

or p

oten

tial t

angi

ble

bene

fits

from

CIS

/Bill

ing

impl

emen

tatio

n ca

n re

sult

– if

the

impl

emen

tatio

n is

pro

perly

pro

gram

man

aged

and

thos

e be

nefit

s us

ed to

es

tabl

ish

a ta

rget

ed p

erfo

rman

ce im

prov

emen

t bas

elin

e to

con

tinua

lly m

onito

r the

qua

lity

of im

plem

enta

tion.

Thi

s is a

gain

a k

ey p

rinci

ple

of th

e IT

MP.

Not

e th

at t

he b

enef

its h

ere

depe

nd s

ubst

antia

lly o

n ac

com

pany

ing

inst

itutio

nal

chan

ges,

on p

roce

ss r

eeng

inee

ring,

and

on

chan

ge m

anag

emen

t. Th

ese

oppo

rtuni

ties

alw

ays

pres

ent t

hem

selv

es d

urin

g sy

stem

s im

plem

enta

tion,

and

it w

ill b

e th

e fu

ture

res

pons

ibili

ty o

f th

e H

QIT

that

thes

e fu

ture

per

form

ance

is

sues

be

cons

ider

ed f

ully

in

deve

lopi

ng d

etai

led

func

tiona

l sy

stem

s sp

ecifi

catio

ns, a

nd r

ealiz

ed f

ully

dur

ing

impl

emen

tatio

n. F

or n

ow t

houg

h, g

iven

the

on

goin

g ro

llout

of X

7, th

e op

portu

nity

shou

ld b

e ta

ken

to se

ize

them

now

.

The

maj

or p

oten

tial b

enef

its id

entif

ied

by th

e G

roup

incl

ude:

One

-tim

e ca

sh in

flow

from

cha

nge

in q

uarte

rly to

mon

thly

bill

ing

(pha

sed

if ne

cess

ary

in o

rder

of c

usto

mer

con

sum

ptio

n by

val

ue)

A

nnua

l rec

urrin

g re

duct

ion

in a

dmin

istra

tive

NR

W

O

ne-ti

me

cash

inje

ctio

n th

roug

h re

cove

ry o

f bad

deb

ts

Not

e th

at ta

rget

ing

an a

nnua

lly re

curr

ing

incr

ease

in c

olle

ctio

ns w

ould

be

doub

le c

ount

ing

the

bene

fit o

f ann

ually

recu

rrin

g re

duct

ion

in a

dmin

istra

tive

NR

W,

sinc

e th

is is

how

the

latte

r is r

ealiz

ed.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

Due

to th

e X

7 ro

llout

dec

isio

n, th

e G

roup

did

not

com

plet

e th

eir q

uant

itativ

e an

alys

is o

f the

se p

oten

tial b

enef

its. T

he C

onsu

ltant

has

ther

efor

e do

ne a

hig

h-le

vel a

naly

sis

of th

e m

ajor

cas

h flo

w c

ontri

butio

ns th

at c

ould

be

real

ized

. Thi

s sh

ould

be

valid

ated

fur

ther

by

the

Gro

up, a

nd u

sed

as a

targ

et p

erfo

rman

ce

base

line

for t

he X

7 im

plem

enta

tion.

Shift

to M

onth

ly B

illin

g

Cur

rent

ly, t

he to

tal m

eter

read

to c

ash

rece

ipt (

“met

er to

cas

h”) c

ycle

tim

e ca

n be

as m

uch

as 1

35 d

ays (

allo

win

g fo

r the

full

met

er re

ad c

ycle

, bill

prin

ting

and

dist

ribut

ion,

and

cus

tom

er p

aym

ent).

It a

vera

ges

120

days

. Bes

t pra

ctic

e is

45

– 60

day

s or

less

, but

75

days

mig

ht b

e a

reas

onab

le ta

rget

for W

AJ

initi

ally

. A

nnua

l cus

tom

er re

venu

es a

cros

s W

AJ

are

arou

nd 7

2M J

D (e

xclu

sive

of t

axes

col

lect

ed w

ithin

was

te w

ater

bill

ing)

. Thi

s m

eans

abo

ut a

third

of a

nnua

l cas

h in

flow

s (2

4M J

D) i

s “t

rapp

ed”

in a

n in

effic

ient

met

er re

ad to

cas

h re

ceip

t cyc

le).

A s

impl

e sh

ift fr

om q

uarte

rly to

mon

thly

(ide

ally

rolli

ng m

onth

ly) b

illin

g –

for t

he le

ss th

an 2

% o

f lar

ger c

usto

mer

s who

acc

ount

for s

ome

50%

of t

otal

reve

nues

– h

as th

e po

tent

ial t

o pr

ovid

e a

one-

time

cash

inflo

w o

f alm

ost 4

.5M

JD.

Red

ucin

g th

e bi

lling

freq

uenc

y al

so h

as o

ther

ben

efits

– s

ome

of w

hich

hav

e al

read

y be

en n

oted

at A

WC

. The

se ty

pica

lly in

clud

e in

crea

sed

prod

uctiv

ity o

f m

eter

read

ers

and

billi

ng s

taff

(wor

k is

eve

ned

out),

incr

ease

d co

llect

ions

(cus

tom

ers

face

sm

alle

r bill

s) a

nd re

duce

d “l

oss”

of c

usto

mer

s be

caus

e of

cha

nges

in

pro

perty

ow

ners

hip.

Incr

emen

tal c

osts

are

ver

y lo

w.

Red

uctio

n in

Non

Rev

enue

Wat

er

The

gene

rally

acc

epte

d de

finiti

on o

f Non

Rev

enue

Wat

er in

clud

es le

gal u

se o

f wat

er th

at is

not

pai

d fo

r (ei

ther

not

bill

ed, o

r not

col

lect

ed).

Una

ccou

nted

for

Wat

er d

oes

not i

nclu

de th

is c

ompo

nent

and

the

adm

inis

trativ

e pa

rt of

UFW

is th

eref

ore

all i

llega

l con

sum

ptio

n. 5

0% o

f N

RW

in J

orda

n is

ass

umed

to b

e ad

min

istra

tive

thou

gh d

etai

led

brea

kdow

ns a

re h

ard

to o

btai

n or

val

idat

e an

d of

ten

vary

wid

ely

from

are

a to

are

a. M

akin

g an

ass

umpt

ion

(that

the

Gro

up

shou

ld v

alid

ate)

that

onl

y 30

% o

f the

adm

inis

trativ

e pa

rt of

NR

W is

lega

l use

that

is n

ot p

aid

for,

this

is th

e po

tent

ial s

avin

gs th

at im

prov

emen

ts in

the

met

er

to c

ash

proc

ess c

an ta

rget

.

Giv

en to

tal N

RW

of 2

75M

m3 in

the

sect

or, t

he p

oten

tial s

avin

gs fr

om im

prov

ing

the

met

er to

cas

h pr

oces

s co

uld

in th

eory

be

as h

igh

as 1

4.4M

JD

, val

ued

at

the

aver

age

reta

il ta

riff f

or w

ater

and

add

ing

a ve

ry sm

all c

ontri

butio

n m

argi

n fr

om w

aste

wat

er b

illin

g. A

5%

rela

tive

redu

ctio

n in

this

am

ount

(app

roxi

mat

ely

equi

vale

nt to

a 1

.5%

abs

olut

e re

duct

ion

in to

tal N

RW

(whi

ch c

oinc

iden

tally

is th

e sa

me

in a

bsol

ute

term

s as

that

ass

umed

for A

M-M

M re

duct

ion

in te

chni

cal

loss

es) y

ield

s an

annu

al re

curr

ing

bene

fit o

f 0.8

2M JD

.

Rec

over

y of

Bad

Deb

ts

Bad

deb

ts o

n th

e ba

lanc

e sh

eet

curr

ently

tot

al a

roun

d 13

.5M

JD

or

alm

ost

19%

of

annu

al r

even

ues.

If a

n ad

ditio

nal

1.5%

of

thes

e ba

d de

bts

coul

d be

re

cove

red

(by

targ

etin

g th

e la

rges

t out

stan

ding

) –

i.e. a

10%

red

uctio

n in

bad

deb

ts o

utst

andi

ng, a

n ad

ditio

nal o

ne-ti

me

cash

inflo

w o

f 1.

35M

JD

cou

ld b

e re

aliz

ed. T

he p

ract

ical

feas

ibili

ty o

f thi

s re

cove

ry w

ould

hav

e to

be

asse

ssed

by

the

Gro

up. F

acto

ring

of b

ad d

ebts

is o

ften

used

in o

ther

situ

atio

ns –

with

the

bad

debt

res

pons

ibili

ty b

eing

out

sour

ced

to a

col

lect

ions

age

ncy.

The

y w

ould

be

expe

cted

to a

chie

ve m

uch

larg

er r

educ

tions

but

in e

xcha

nge

for k

eepi

ng a

su

bsta

ntia

l per

cent

age

of th

e ne

t rec

over

y.

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

Sum

mar

y of

Pot

entia

l Tan

gibl

e B

enef

its

Th

e fu

ll ca

lcul

atio

n of

th

ese

bene

fits

is

prov

ided

in

lo

cal

curr

ency

in

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

NNEX 7

– C

IS-B

ILLI

NG

BU

SIN

ESS

CA

SE. B

enef

its a

re th

en c

onve

rted

to U

SD a

nd d

isco

unte

d ba

ck to

the

star

t of

impl

emen

tatio

n to

allo

w d

irect

com

paris

on

with

syst

ems c

osts

.

The

sim

ple

(and

ver

y co

nser

vativ

e) a

naly

sis

abov

e su

gges

ts th

at o

ne-ti

me

cash

inflo

ws

of 3

- 4

M J

D c

ould

be

achi

eved

in th

e fir

st tw

o ye

ars

of o

pera

tion

of

the

CIS

/Bill

ing

syst

em, w

ith a

noth

er 0

.8 M

JD c

ontin

uing

in p

erpe

tuity

.

Oth

er In

tang

ible

Ben

efits

Thes

e in

clud

e:

R

educ

tion

in th

e nu

mbe

r of c

usto

mer

com

plai

nts (

both

bill

ing

and

serv

ice)

Impr

oved

resp

onse

tim

e to

fix

cust

omer

issu

es

R

educ

ed ti

me

to c

onne

ct n

ew c

usto

mer

s

Bet

ter c

ontro

l ove

r cha

nge

of p

rope

rty o

wne

rshi

p

Whe

re p

ossi

ble

thes

e an

d ot

her i

ntan

gibl

e be

nefit

s sh

ould

be

valid

ated

by

the

Gro

up, a

nd n

umer

ical

targ

ets

esta

blis

hed

as im

plem

enta

tion

benc

hmar

ks –

or

qual

itativ

e ch

ange

s mad

e to

the

impl

emen

tatio

n de

sign

– to

ens

ure

thei

r rea

lizat

ion.

8.5.

6.

EV

AL

UA

TIO

N O

F A

VA

ILA

BL

E S

OL

UT

ION

OPT

ION

S

The

Gro

up b

egan

look

ing

at fo

ur o

ptio

ns:

In

-hou

se o

r as

sist

ed i

n-ho

use

deve

lopm

ent

of a

sec

tor-

spec

ific

CIS

/Bill

ing

solu

tion

that

wou

ld r

epla

ce a

nd s

ubst

antia

lly i

mpr

ove

the

very

rel

iabl

e

CO

BO

SS 2

syst

em

R

ollo

ut o

f the

X7

syst

em a

s orig

inal

ly p

lann

ed

Pu

rcha

se o

f an

inte

rnat

iona

l bes

t of b

reed

syst

em –

typi

cally

US

sour

ced

such

as P

eace

, SPL

, or I

ndus

;

Impl

emen

tatio

n of

a re

gion

ally

dev

elop

ed sy

stem

such

as E

DA

MS

or th

e sy

stem

dev

elop

ed b

y A

rab

Tech

nolo

gy S

ervi

ces

Whi

le fu

ll ev

alua

tion

of th

ese

optio

ns w

as n

ot c

ompl

eted

bec

ause

of t

he ro

llout

dec

isio

n fo

r X7,

som

e ob

viou

s pro

s and

con

s em

erge

d in

clud

ing:

Inte

rnat

iona

l bes

t of

bree

d sy

stem

s w

ere

gene

rally

too

focu

sed

on N

orth

Am

eric

an o

r Eu

rope

an u

tiliti

es w

hich

are

ver

y di

ffer

ent f

rom

the

Jord

ania

n si

tuat

ion.

The

y of

ten

have

not

bee

n A

rabi

zed,

and

loca

l sup

port

is h

ard

to o

btai

n w

hile

out

side

supp

ort i

s exp

ensi

ve

M

any

of th

e ab

ove

issu

es, w

ith th

e ex

cept

ion

of A

rabi

zatio

n, a

nd so

me

othe

r iss

ues d

escr

ibed

abo

ve, a

lso

cast

dou

bt o

n th

e su

itabi

lity

of th

e X

7 so

lutio

n –

thou

gh m

any

of th

e fu

nctio

nalit

y an

d pe

rfor

man

ce is

sues

do

now

seem

to b

e be

ing

addr

esse

d by

the

Ade

lior v

endo

r

Reg

iona

l sol

utio

ns sh

owed

som

e pr

omis

e, b

ut c

ould

not

be

rese

arch

ed in

dep

th a

nd w

ould

nee

d fu

rther

det

aile

d ev

alua

tion

befo

re re

com

men

ding

them

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

1 Fi

nal R

epor

t to U

SAID

– V

olum

e I R

ecom

men

datio

ns A

ugus

t 200

6

Emer

ging

Mar

kets

Grou

p, L

td.

A

ssis

ted

in-h

ouse

dev

elop

men

t, as

sug

gest

ed a

nd in

vest

igat

ed, b

y A

WC

see

med

a g

ood

solu

tion

beca

use

of th

e Jo

rdan

-spe

cific

requ

irem

ents

– b

ut w

ould

ne

ed t

o be

com

plet

ed u

nder

ver

y ro

bust

qua

lity

assu

ranc

e co

nditi

ons

acro

ss t

he c

ompl

ete

SDLC

– p

artic

ular

ly g

iven

the

sec

tor’

s re

lativ

ely

com

plex

“J

orda

niza

tion”

requ

irem

ents

The

sect

or is

now

ado

ptin

g a

“wai

t and

see

” at

titud

e to

X7.

NG

WA

will

not

pro

ceed

with

X7

for

a ye

ar o

r m

ore,

giv

en it

s cu

rren

t ong

oing

Ora

cle

FAS

impl

emen

tatio

n. A

WC

’s d

ecis

ion

on g

oing

ahe

ad w

ith it

s jo

int v

entu

re fo

r ass

iste

d in

-hou

se d

evel

opm

ent a

lso

appe

ars

to b

e on

hol

d, p

endi

ng e

valu

atio

n of

th

e la

test

ver

sion

of X

7 no

w p

rovi

ded

by th

e ve

ndor

.

If th

e X

7 im

plem

enta

tion

can

be ti

ghtly

man

aged

to a

chie

ve th

e id

entif

ied

bene

fits

abov

e, a

nd th

e su

ppor

t iss

ues

that

hav

e do

gged

the

syst

em s

o fa

r can

be

over

com

e, X

7 m

ay y

et tu

rn o

ut to

be

an a

ccep

tabl

e so

lutio

n, d

espi

te th

e fa

ct it

pro

babl

y w

ould

not

win

a fo

rmal

sys

tem

s se

lect

ion

proc

ess.

The

acce

ptab

ility

of

X7

is h

owev

er fi

rmly

pre

dica

ted

on c

ompl

etin

g th

e pr

oces

s im

prov

emen

ts a

nd in

stitu

tiona

l cha

nges

that

und

erlie

the

iden

tifie

d be

nefit

s. It

is im

porta

nt to

no

te th

at th

e on

e-tim

e ca

sh in

flow

from

shi

fting

larg

e cu

stom

ers

to m

onth

ly b

illin

g an

d th

e po

tent

ial r

educ

tion

in a

rrea

rs a

re fu

lly s

uppo

rted

by X

7’s

curr

ent

func

tiona

lity.

Eve

n w

ithou

t sub

-met

erin

g of

dis

tribu

tion

zone

s an

d SC

AD

A/G

IS in

terf

acin

g, th

e ac

tivat

ion

or p

rogr

amm

ing

of s

ome

sim

ple

inte

rnal

reve

nue

assu

ranc

e co

ntro

ls o

n bi

lling

and

col

lect

ions

sho

uld

also

allo

w t

he N

RW

red

uctio

n to

be

achi

eved

. It

wou

ld b

e irr

atio

nal

to p

roce

ed w

ith t

he X

7 im

plem

enta

tion

with

out t

arge

ting

and

real

izin

g th

ese

bene

fits

as a

min

imum

– e

spec

ially

as

the

resu

lting

inst

itutio

nal a

nd p

roce

ss c

hang

es w

ould

then

be

embe

dded

and

cou

ld e

asily

be

leve

rage

d if

X7

subs

eque

ntly

did

hav

e to

be

repl

aced

.

If X

7 do

es n

ot m

eet t

he e

xpec

tatio

ns n

ow s

et, t

he G

roup

’s w

ork

on fu

ture

bus

ines

s re

quire

men

ts w

ill fo

rm a

goo

d ba

sis

for d

evel

opin

g a

fully

det

aile

d se

t of

func

tiona

l sys

tem

s sp

ecifi

catio

ns f

or a

for

mal

sys

tem

s se

lect

ion

proc

ess.

We

wou

ld s

ugge

st th

at s

elec

tion

incl

ude

both

reg

iona

lly d

evel

oped

sol

utio

ns a

nd

assi

sted

in-h

ouse

opt

ions

. Ful

l pro

of o

f co

ncep

t and

det

aile

d im

plem

enta

tion

refe

renc

e si

te v

isits

and

eva

luat

ions

sho

uld

be in

clud

ed in

suc

h a

proc

ess.

In

wei

ghtin

g th

e ev

alua

tion

crite

ria, t

he s

elec

tion

shou

ld e

mph

asiz

e si

mpl

icity

of u

se (s

cree

n co

nfig

urat

ion

and

data

ent

ry),

supp

ort f

or N

RW

redu

ctio

n, e

ase

of

GIS

inte

grat

ion,

stro

ng C

IS f

unct

iona

lity

(e.g

. ful

l cal

l cen

ter

inte

grat

ion)

, tig

ht i

nter

nal c

ontro

ls, a

nd g

ood

repo

rting

sup

port

for

reve

nue

assu

ranc

e. F

ull

Ara

biza

tion

and

timel

y an

d co

st-e

ffec

tive

loca

l sup

port

are

likel

y “m

ust-h

aves

”. A

lthou

gh th

e G

roup

was

not

abl

e to

exa

min

e th

e pr

oduc

t off

erin

g in

det

ail,

the

EDA

MS

prod

uct s

houl

d al

mos

t cer

tain

ly b

e in

clud

ed in

any

sele

ctio

n gr

oup

beca

use

of it

s stro

ng fo

cus o

n N

RW

redu

ctio

n.

8.5.

7.

CO

STIN

G A

SSU

MPT

ION

S

Det

aile

d co

stin

g as

sum

ptio

ns w

ere

not

deve

lope

d fu

rther

giv

en t

he r

ollo

ut d

ecis

ion

for

X7.

The

bas

e fo

r th

is i

s un

ders

tood

to

tota

l $7

75K

whe

n im

plem

enta

tion

and

licen

se c

osts

are

incl

uded

.

The

busi

ness

cas

e an

alys

is in

the

follo

win

g se

ctio

n cl

early

sho

ws

that

pro

vide

d im

plem

enta

tion

can

be p

rope

rly ta

rget

ed a

nd m

anag

ed to

real

ize

the

bene

fits

iden

tifie

d, th

ere

is a

bsol

utel

y no

reas

on w

hy th

e se

ctor

cou

ld n

ot p

ay u

p to

$3-

5 M

to im

plem

ent a

new

CIS

/Bill

ing

syst

em if

nec

essa

ry. H

owev

er, i

n te

rms o

f U

SAID

fun

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ANNEX 7 – CIS-BILLING BUSINESS CASE. Discounting the benefits streams discussed above back to the start of the CIS/Billing implementation, assuming a conservative 10% discount rate, and an implementation period of 2 years with a further one year of operation to realize the initial benefits stream gives a present value (PV) of $11.6M. Given that the rollout contract for the X7 is ~ $775K and assuming a contingency of 30% to cover additional functionality and hardware needs (this is likely to be high), the total implementation cost in local currency is around 700K JD. Assuming this is spread over a two year implementation period gives a PV (again at a 10% discount rate) of $1.69M 38F

39. This can be directly compared to the PV of the benefits stream to give a potential (and conservative) net present value (NPV) of $9.9M – subject of course to the rollout and implementation being robustly completed and program managed to a standard that enables full realization of the targeted benefits. This is clearly a “quick win opportunity” that should be seized.


The risk factors applicable to each generic solution option are described in 446HTable 1 above. The risk factors in the X7 rollout, that the sector is now committed to, have already been discussed above. Given the difficulty of identifying sufficient experienced and strong program management within the sector – especially given the sector’s lack of implementation experience according to a business case – argues strongly for consideration of outside program management assistance. Whether this is realistic given the implementation schedule which sees work being completed around April 2007 is not clear. USAID contracting procedures would effectively prevent their involvement on a useful timescale. However, the business case clearly shows that significant program management expenses can be incurred – provided that quality services are purchased that can hold themselves accountable on behalf of the sector to the benefits realization.


Discussion of this issue is moot.


As identified above, given timely and effective coordination between the sector and the donor community, outside assistance from a quality shop might have been funded by USAID to assist in the X7 rollout. Unfortunately this did not happen and the business benefits opportunity may have been missed unless the sector can identify internally, or hire regionally, resources of adequate quality itself.

The case for USAID to participate further in the X7 rollout is not strong, unless agreement could be reached with the vendor for substantial on-going on-site support and partnering to pursue the business case opportunity using a “second wave” approach. This might be possible given that two of the three benefits in this case (shift to monthly billing and bad debt reduction) do depend substantially on institutional and process changes that exercise the existing functionality of X7. Realization of the annual recurring NRW benefit would be more challenging as it would require very close vendor cooperation but again it is possible that USAID could help fund the functionality upgrades required here. Finding outside assistance that would be willing to take on accountability for these results, absent a “clean sheet” starting point, might also be very difficult.

As stated above, given that vendor negotiations are still in progress and detailed cost estimates are not available, funding of this ITMP component has not been considered further in our overall cost estimates.

39 Note the inclusion of ongoing support costs in the analysis.


8.6. Back Office Systems


Back office systems are generally defined as systems needed to run any kind of business. Examples would include finance and accounting, HR and HRM, and supply chain. ERP vendors have traditionally focused their development efforts on such back office systems because of their broad appeal to a large market.

Five priority back office systems areas, that are currently not supported or supported only poorly, were identified by the Back Office Working Group. One of those (Lands) is in fact a core operational system for JVA.

Given that five systems had to be covered by one Group, less detail is available for individual Back Office systems than has been provided above for key operational systems. Business case benefits are anyway often smaller and difficult to quantify for many back office systems. Our focus here has therefore been on understanding the as-is situation, developing the future business requirements and developing and recommending the best solution option. Wherever possible, the solutions chosen here leverage ongoing USAID’s investment in sector-wide implementation of Oracle e-Business Suite – subject of course to the solution being appropriate and suited to the identified business needs.

8.6.2. BUDGET PREPARATION

8.6.2.1. Executive Summary of Workgroup Recommendations

We understand that the completed or ongoing implementation of the Oracle e-Business Suite General Ledger module across much of the sector entry of budget line items, allocation and transfers of budget funds, and budgetary control and fund checking. Budget preparation (up to the point of final budget line entry) is however also important. Budget preparation is the process that sets direction for management improvement and efficiency, and by which the sector entities (especially the Operating Utilities) communicate their decisions about priorities and expected performance. Well prepared and, planned budget is a key determinant of sector performance. Budgeting is also the process that supports the achievement of the identified national goals. Rational, efficient and effective allocation of resources is the very foundation of sector performance improvement.

A comprehensive budgeting solution should: Systematize budget preparation across all cost centers Standardize workflow for planning and budget preparation – including standard worksheets for

budget line item development, justification and consolidation Provide for standard worksheets with Capture all budget justification at source Provide a full audit trail of the entire budgeting process – from initial budget submission through

approvals and changes to the final agreed budget Manage and support unlimited budgeting cycles Support zero-based budgeting which is generally much more effective than incremental budgeting

based on last year’s spending Support consolidation at any point to a standard chart of accounts so that departmental budgets

can be developed at the lowest level and consolidated up hierarchically Ability to make standard worksheet with the customization ability for specific needs

Arguably, from a financial as opposed to an accounting perspective, effective budget preparation is even more important than tight budgetary control. In the extreme case, there is little point in tightly controlling the wrong resource allocation.


The objective of this component is to implement a distributed budgeting tool that supports budget creation and justification review, modification and consolidation. It will be tightly integrated with chart of accounts and cost-center structures maintained in the Oracle FAS GL module, and will provide easy access to historical data maintained there to support budget preparation. Data on budget drivers and justification, captured at source, should be maintained throughout subsequent consolidations and available by drill down. Combined with a full audit trail of approvals and changes and their justifications, the system will enable a more systematic and effective budgeting process across the sector.

There are a number of options currently being investigated for configuring such functionality within the Oracle e-Business Suite financials – mostly available within the existing license package. An experienced Oracle implementer / integrator will be needed to make the final choice and complete the required configuration and / or application development. To assure a return on systems investment, a parallel institutional and change management project focused on the top-down introduction of performance management is required, but the EIS component described above could be leveraged to provide this.

8.6.2.2. As-Is Situation

Business Processes

Preparation for the next fiscal year budget begins a few months prior to the current fiscal year budget release in mid-July – with the issuance of a "call memo" from the General Budget Department. All departments prepare their budget requirements which are reviewed and revised by supervisory managers. Salaries and overhead items are usually budgeted at last year's level plus inflation – but other expenses are built bottom up according to the current business needs.

The current budgeting process tends to be input based rather than output based – limiting accountability for results. It may also be siloed – with limited consideration of the interaction of different line items. Managers often lack clear direction on overall results priorities and their specific individual accountabilities. Rather than being performance focused, the budget process often wastes inordinate time on detail that is only very loosely tied to performance targets and improvements. This effort diverts time and energy from the tough policy and managerial judgments needed to move entities closer to full, or at least O&M cost recovery. A lot of emphasis is placed on justifying new spending proposals, rather than defining expected outputs which are easier to justify and harder to subsequently cut. There is a widespread expectation that many budget requests will be significantly reduced in the approvals process so typically more funds are requested than are needed. In short (and this is not untypical of many budgeting processes especially in public sector institutions) the budget process is “gamed”.

While a budgeting system cannot directly change budgeting behavior and culture, systematization of budget preparation can be used to encourage a more output based focus leading to more effective resource allocation. Inclusion of a full audit trail that requires proper justification for both initial inputs and subsequent changes ensures budgetary discipline is maintained up to final budget approval. When government funds are rationed, cuts can at least be done on a more prioritized and logical basis with increased transparency.

Systems Support

Current budget processes are supported only by manually prepared Excel and Word templates with the former providing the numerical inputs and the latter providing justification. Justification is often limited and not tied to specific outputs or performance targets. Beyond passage of these templates up and down the management hierarchy, there is no controlled and audited workflow that ensures the final budget amounts can be readily tracked back to their original justification.


8.6.2.3. Major Improvement Areas

Clearly there are significant opportunities to improve the budgeting process. This will require significant institutional changes as well as systems support. Budgeting should set clear output and performance based management direction. It should also ensure that accountability for those outputs flows back into individual performance appraisal. Effective budgeting begins with a clear and regularly updated strategic plan that sets long-term goals and annual performance targets. Beyond tangible operational performance improvements, consideration of softer targets like customer service should also be included. Priorities amongst competing demands should be defined. All of this should then be effectively communicated to the sector’s 8,600 or so employees in such a way that they can each understand what their own contribution to improving sector performance. Obviously this cannot all be done at once – hierarchical top-down development and roll-out of performance targets must be done on a prioritized basis according to the largest and most quickly realizable performance improvements.

Incorporating these performance objectives and results as key elements in budget preparation (and in subsequent management reviews) is an essential foundation for this performance improvement focus. Systematizing the budget process, providing standard budget workflow (ideally that encourages team-based collaboration) and providing a full audit trail of justification for all inputs and changes is an important enabler of this institutional change process.

8.6.2.4. Future Business Requirements

A budget preparation system should: Be fully integrated with the Oracle General Ledger (GL) module and its chart of accounts and

cost center structure Maintain multiple versions within the GL during budget development and approval, with

automatic final posting of the approved budget into the control accounts Be fully web-enabled so all departments can access it (even if initially only on one desktop) Support budget creation, review, modification and consolidation through standardized fully

automated “push” workflow with full access control Include and require definition of all budget drivers and justifications – both financial and non-

financial Provide a full range of analytical tools (e.g. what-if and scenario analysis tools) to support budget

preparation Provide forecasting capabilities for demand drivers like number of new connections Be able to pull historical data from the GL and/or Projects and Grants for reference as needed Define standard worksheets for budget entry and justification (with limited customization possible

for specific departmental needs) Be able to export budget worksheets to Excel or HTML for collaboration with remote users, as

well as import to Excel for offline users Maintain a full audit trail of the entire budgeting process, including approvals and changes with

required justifications for initial inputs and all changes Be able to seamlessly consolidate spreadsheets from a departmental level up to the standard chart

of accounts, as well as summarization and full drill down across an entire entity budget Support unlimited budgeting cycles – so for example a current budget could be modified while

next years budget is under preparation Maintain a full history of past budget submissions and revisions Support all budgeting methods including zero-based budgeting


Be supported by user-friendly reporting and graphing toolsets

8.6.2.5. Benefits Identification

A quantitative business case is very difficult to develop so discussion here is limited to qualitative benefits. At the highest level the business benefits are driven by optimal allocation of each JD of Government budget to improving sector planning and performance. As discussed above this is absolutely fundamental to sector operation. More detailed business benefits might be derived as implementation targets and performance baselines by examining specific performance parameters and their historical budget allocations.

8.6.2.6. Evaluation of Available Solution Options

The Group examined a number of potential solution options, all based around the Oracle e-Business Suite implementation. Some of these would leverage existing and already installed modules, others considered implementation of additional modules that are already licensed or could be purchased additionally, while still others considered customized standalone applications that integrate fully with Oracle modules using their “flex field” features.

More specifically, the following options were identified: Fully configure the Oracle Budgeting and Planning functionality which is already embedded

within the GL and the Oracle Financial Analyzer distributed reporting module (already licensed as part of the existing e-Business Suite) to fully support the budget preparation future business requirements identified above

Implement the Oracle Enterprise Planning and Budgeting module (which replaces Oracle Financial Analyzer) which is not licensed under the existing e-Business Suite

Implement Oracle Public Sector Budgeting (also not licensed under the existing e-Business Suite) Implement a standalone “best of breed” budget preparation system selected from another vendor

like ROSS, Great Plains, Fund ware or Microsoft Implement a standalone, web-enabled budget preparation application developed by an

experienced Oracle implementation / integration vendor that is fully integrated with the Oracle GL module

Implement an in-house developed standalone budget preparation application

The pros and cons of these options are as follows: In-house development can be ruled out by the sector’s lack of experience to date with developing

applications that integrate with the Oracle e-Business Suite Such development could be done by an experienced Oracle implementer/integrator using the “flex

field” functionality available in Oracle modules. Such a strategy is actually supported by Oracle where client needs demand it. Very careful specification of business requirements, vendor selection and detailed proof of concept would be needed for this option but it would be possible to meet all the identified business requirements in this way

Standalone “best of breed” system applicability would depend on their ability to fully integrate with the Oracle modules – and would again require proof of concept. It is unlikely to be a cost-effective solution in this case

Implement new (currently unlicensed) Oracle modules:


Oracle Enterprise Planning and Budgeting module39F

40 which has full analysis and forecasting capability and meets most of the identified future business requirements – except for requirement of budget justification

Oracle Public Sector Budgeting – we understand that this does meet all the future business requirements identified above, including tracking of budget justifications. However the international version of the Public Sector Financials module may be required (the standard version uses US Public Sector accounting). This is likely to be an expensive and possibly over complex solution

Fully configure the Budgeting and Planning functionality which is already embedded within the GL module. This would not be able to meet all the identified business needs (including justification tracking) and would require detailed review of the existing configurations of all the implemented financials modules to ensure they are optimizing to support budgeting

Final Recommendation – Further Detailed Study and Proof of Concept Needed

It is not possible to definitively state the optimum solution here. Most likely the optimal solution is some form of “hybrid” that would require full configuration of the budgeting and planning functionality already embedded in the GL module, supplemented by some customization and/or standalone application development to support justification tracking. Further detailed study and proof of concept is therefore needed.

While in principle, and subject to availability of funds and USAID contracting requirements, the existing Oracle FAS team could do this we recommend that an experienced Oracle implementer/integrator be engaged to carry out this work. Customization of Oracle configuration is generally not a best business practice but it may be the only cost-effective solution in this case. Again, very careful specification of business requirements, vendor selection and detailed proof of concept would be needed here.

8.6.2.7. Costing Assumptions

Our best estimate of the costs involved in completing the above work, assuming a “hybrid” solution of the kind described above, with input from an example experienced Oracle implementer/integrator is $300K.

8.6.2.8. Risk Factors and Their Mitigation

The major risk factor here is HQIT’s ability to provide tight program management of all stages of the solution development, proof of concept, and implementation. This will take time to build and may result in the budgeting preparation requirement being pushed back in the overall phasing of the ITMP components. A review of the configuration of the existing Oracle financials modules can be done in advance. Clear performance baselines for implementation will need to be agreed as part of this program management. A concerted and parallel effort on institutionalizing new budget procedures and performance management principles will also be needed to assure a return on the systems investment.

8.6.2.9. Timing of Implementation

For the reasons discussed above, implementation of this ITMP component is likely one of the later Back Office modules. This is not ideal, since the benefits of its implementation are likely to be very significant, but it is probably unavoidable. The detailed schedule for implementation should be coordinated carefully with the annual planning and budgeting cycle to allow parallel operation of the

40 Note that Oracle now includes this module in its current Oracle e-Business Suite offering. There may be scope to renegotiate the licensed module bundle.


current manual process with the budgeting systems solution over one cycle.

8.6.2.10. USAID’S Potential Role

The fundamental importance of effective and efficient resource allocation across the sector, the low initial outlay, and the significant benefits obtainable from this component argue strongly for USAID support. However, proper institutional and change management preparation will also need to be considered, likely in conjunction with the EIS component described above.

8.6.3. PROJECTS PERFORMANCE


Currently the sector has no systems in place to manage its often major capital investments from planning, selection, design and financing, through construction oversight (budget and schedule) to validation of final project performance. A closed loop needs to be supported that covers both capital investments and projects performance. A projects management system is also an essential prerequisite for the EIS component described above.

Working in conjunction with GTZ, a joint vision of such a process has been developed and systems functionality and possible options identified to support it. This is shown in 447HFigure 4. GTZ is already working on the development of a basic projects database (due to go-live in September 2006) and this development effort can be leveraged as the basis for development of a more comprehensive solution later. This system will likely be standalone but fully integrated with Oracle FAS. A standalone solution will provide a more cost-effective and user-friendly solution than integration of additional Oracle project management modules already included in the current license package. Basic project accounting functionality is already included under the Oracle Accounts Payable module implementation.


Business Processes

The typical project in the water sector will undergo a number of phases before it becomes operational. These inxlude:

Project identification and assessment by the executing authorities (WAJ and JVA) Evaluation of the project business case and prioritization of project investments against sector

objectives and resources and funds constraints Detailed project design and planning – including definition of projects activity and development

of overall project structure and work plan Funding – after project approval, financing agreements are signed by MoPIC and the project

owner if the project is funded by donors as grants or loans The SG of the entity owning the project sends a copy of these financing agreements to the SG of

MWI Implementation – the executing authority will receive the project documents and issue tenders for

preparatory studies or the construction and implementation as appropriate Follow up and evaluation – the executing authority receives progress reports from the contractors

and sends them to the Project Finance Department within the Ministry

MWI: The Projects Finance Directorate in the Ministry is responsible for preparing the overall sector’s capital investment plan. It also coordinates between WAJ, JVA and MoPIC to arrange donor and private sector financing support if needed.


WAJ: There are two Directorates concerned with projects management – the Water Projects Directorate and the Waste Water Projects Directorate. Each is responsible for developing, prioritizing and designing the projects required – and for following up the progress of projects after their approval by the Minister. A Project Manager is assigned for each project to monitor the contractor’s performance and approve progress payments. The Project Accounting department processes these payments.

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JVA: There is no special unit within JVA for project management. Each Directorate in JVA is responsible for defining their own project needs and for monitoring of project progress.

Ministry of Planning and International Cooperation (MoPIC): MoPIC is responsible for coordinating project financing sources and for signing funding agreements with the donors for all sector projects.

Systems Support

Neither WAJ nor JVA have a projects database and a lot of project data is stored in Excel files. JVA has begun a projects database initiative but it is not yet implemented. MWI, with the support of GTZ is developing a projects database which should go-live in September. The Oracle database design was developed over two years ago but the project has now been restarted. There are no plans to integrate the database with Oracle financials and the database design captures only basic project information and funds disbursement. It does not include project objectives or tracking of actual performance against design parameters and it does not monitor project progress beyond financial tracking. Essentially it really is a database and not an application that really enables full project management. However, it is an excellent start to addressing the projects management area and can be leveraged in development of more sophisticated project management solutions under the ITMP.

MoPIC has purchased an application called ProgramOne to store and manage projects information across all governmental agencies. The applications focus is primarily on construction schedules and on management of tenders and contractors (see 208Hhttp://www.mopicone.gov.jo/Login.asp ). It does not monitor projects performance in the sense required by the sector. The application is web-based using and is maintained by an ASP. MoPIC was responsible for training users on the application, and three individuals from WAJ, JVA and MWI were trained almost two years ago. These individuals provided then provided paper-based project data to MoPIC to populate the system. However, full implementation has not been completed.


A full scope Project Management System available on a web-enabled basis to the whole sector is required. It should cover the full project life cycle (Planning, Tracking, Costing, Budgeting, Monitoring, and Closing) and ensure closure of the performance loop (both actual vs. design performance, and contractor performance against budget and schedule). Closure of the performance loop is needed to move from simple progress monitoring to actual progress management.


A Project Management System (PMS) should include the following functionality: Project parameters and design data Specific project objectives Management of project approvals and their associated workflow Management of project funding (to ensure adequate amounts and mixes of funds are raised from

local, private, donor loan and / or donor grant sources Monitoring of project progress and management of progress payments and variation orders Monitoring of contractor performance Comparison of actual project performance against design considerations Management of project tendering and contracting Funds disbursements and loan servicing Project resourcing


Consolidated project reporting Identification and incorporation of best practices and lessons learned from previous projects

While detailed project design and screening for prioritization are processes that require expert technical input, a PMS should include planned as well as in-progress projects so that design parameters can be compared.

The overall philosophy of the PMS is summarized in 448HFigure 5. The philosophy applies both to project design and to management of project construction.

Figure 5 - Project Performance Loop


Benefits are again difficult to estimate quantitatively in advance but design and implementation of the PMS should target the following qualitative performance dimensions:

Efficient planning and follow up for projects in the whole water sector as one unit Efficient planning for the water resources management for the Kingdom (this may require

integration with the NWMP / WIS) Effective prioritization of project spending according to the project portfolio developed Effective and efficient use of available donor and loan funds Better coordination of donors and stronger project justification Timely and properly justified allocation and tracking of funds disbursements Preparation of project budgets and budgetary control Preparation and monitoring of budget schedules Internal and external (e.g. MoPIC/donor) project reporting Support for ad-hoc project queries


The Group identified the following solution options: Implement the Project Costing, Billing and Resource Management modules already licensed

under the Oracle e-Business Suite module bundle Purchase or negotiate a new license for the Oracle Projects Management that is not included under

the current module bundle but is now included in the current Oracle e-Business Suite offering


Implement the ProgramOne system (web-based application) already purchased by MoPIC and intended to be implemented across all Ministries

Implement (or customize an existing core application already developed) a standalone, but fully Oracle financials integrated web-based application developed and customized by an experienced Oracle implementation / integration vendor

Develop the same in-house

The pros and cons of these options are as follows: Examination of the functionality of Oracle’s e-Business Suite modules shows them to focus very

strongly on the financial aspects of projects. Billing and Resource Management have little relevance. Both Costing and Projects Management have a very strong financial focus and are over-complex solutions focused more on the needs of contractors themselves

Implementing the MOP application is without doubt the cheapest solution. However, its functionality is also very limited. Integration with its needs, assuming MoPIC completes its implementation, will need to be considered if any other solution option is chosen

A standalone, fully Oracle integrated solution is best likely to meet the sector’s needs is a simple and user-friendly manner. However, it will need to be specified, designed and program managed very carefully, and the developer carefully selected

In-house development is a possible option in the longer term once the capacity of the HQIT has reached the point where it can cover off Oracle e-Business Suite configuration management and integration, but it is not recommended as a short-term solution

Final Recommendation – Development by Experienced Oracle Implementer/Integrator

On balance, the best option is standalone development of a fully Oracle integrated solution. However, first the success of the GTZ database should be fully understood and MoPIC’s future plans for ProgramOne clarified. The design of the standalone application should fully leverage and integrate with both of these initiatives.


Based on a demonstration and follow up discussions with an experienced Oracle implementer/integrator (Arab Technical Services), our best current estimate of the funds requirement for this initiative is $430K. This would need to be confirmed after systems selection during final negotiations.


The major risk factor here again is HQIT’s ability to provide tight program management of all stages of the solution development, proof of concept, and implementation. Detailed functional system specifications and screen designs will need to be developed. Compatibility with MoF and MoPIC requirements will also need to be assured. Tight program management and quality assurance procedures will need to be agreed with the developer, and their long-term support for the product verified.


Again development of this application will have to await building of effective program management and quality assurance procedures in the new HQIT. However, we suggest in this case, given the importance of having some kind of project management system available to the HQIT to monitor and manage its own portfolio of projects that vendor proof of concept might be advanced and a free demonstration version installed in HQIT for further evaluation. This would also provide a platform for development of detailed functional systems specification requirements with full involvement of


project management departments in all entities.


Given the current involvement of GTZ in this area, collaboration and/or co-funding could be considered in this case. USAID’s main contribution would be in building program management and technical skills in the new HQIT to assure quality design and implementation of the application.

8.6.4. HUMAN RESOURCES MANAGEMENT (HRM)


While HR (employee records) and Payroll modules are being implemented under the Oracle FAS project, there is no plan to extend HR functionality to the full HRM cycle. There are currently no clear career or human resources development tracks in the sector and no training plans tailored to individual needs. Training courses offered externally are not always allocated on a rational basis, but an annual survey of all employees is used to plan internal training programs.

The objective of this component is to provide the sector with comprehensive HRM functionality including performance management, career development and training planning, succession planning and manpower planning. This will greatly improve the effectiveness of training in the sector and relate it much more closely to performance achievement and career development.

Again, our recommendation is to implement a standalone, but fully Oracle FAS integrated, HRM solution developed by an experienced Oracle implementer / integrator.


Business Processes

Identification of this HRM requirement first came to light when the Group examined current training processes. It was first suggested that a new “training” application needed to be built. (Note that individual training records can be maintained in the HR module being implemented as part of the Oracle e-Business Suite).

Current training processes are described below: The Training Department plans annually for the training needs of all employees by distributing a

survey distributed to all employees with the training courses offered Survey data is received by the Training Department, analyzed and summarized into an Excel file,

and reviewed and approved by the Unit Head The Training Department then plans its Training Program based on the survey results and this is

reviewed and approved by the SG Training is delivered internally by the sector’s own training staff, outsourced, or provided by the

GoJ or donors.

Systems Support

There is no sector-wide systems support for training beyond the use of Excel spreadsheets, and certainly none for HRM as discussed further below.


Analysis of this training process revealed a number of improvement opportunities that properly position training with the Human Resources Management cycle as a programmed part of individual and sector human resource development. This is of course closely linked to the whole performance


management agenda which has already been identified as missing in the Headquarters Organizations. Achievement of the full potential of its human resources, and their appropriate motivation, is essential to any organization and there appears to be a major opportunity within the Headquarters Organizations to introduce these concepts and adequately them with appropriate systems. Specific opportunities identified include:

Establishing and communicating clear goals and annual plans for each department, driven by the National Agenda and the sector’s Strategic Plans

Translating these into specific roles, responsibilities and job descriptions for each department and position that are clearly linked to sector performance improvements defined in the goals and annual plans

Further parsing these roles and responsibilities, considering individual capabilities and experience into annual performance goals and targets that are agreed with each individual

Developing individual training (and certification where appropriate) plans to support achievement of these goals and targets

Also developing standard career development and training tracks for typical entry routes (e.g. new graduate)

Monitor and track training courses completed by individuals Annually appraise individual performance, and ideally reward, achievement against the pre-

agreed annual goals

The above improvements constitute basic best practice in modern HRM. Training needs are explicitly and rationally linked to individual and departmental needs and properly aligned with the sector’s long-term plans and performance improvement needs. Subjective training allocations are eliminated and training budgets can be fully justified on a bottom-up needs basis. We do not suggest they can be implemented across the whole sector in one go, but they could be phased in on a “middle management out” basis given appropriate systems support.


On the basis of the vision just described, a full scope but simple and user-friendly application is needed to cover the full HRM cycle. It should be fully integrated with employee records maintained in the Oracle HR module, and be able as core functionality to:

Define standard career development and succession paths Enter and record for each individual their agreed annual goals and performance targets Enter and record for each individual their annual appraisals against these goals and their review

by their supervisors and / or annual management Allow individuals to retrieve and review their training and performance records Provide a searchable e-Catalogue of training courses Track training and certifications completed Provide a competency and experience search engine to identify “best-fit” employees for specific

positions

Additional HR functionality identified by the Group that could either be included in this application or provided in other ways includes:

Maintenance of manpower planning needs Support for succession planning Full cycle support for recruitment –from needs identification, through advertising, application

receipt, and interviewing to job offer


Integration of Oracle payroll with attendance clocks or finger print clocks (this was not investigated further as there appears to be no strong business case for it)

Making HR policies, procedures and forms available electronically (this is covered under the Collaboration component of the ITMP)


Once again, a quantitative business case is hard to define here. Qualitative benefits however include: Substantial increases in employee motivation and productivity Effective succession (and possibly job rotation) planning Effective and efficient allocation of training resources Increased focus on individual contributions to sector performance improvement


The Oracle E-Business Suite module bundle already licensed includes several additional HR modules beyond the two (HR and Payroll) that are currently being implemented. Licensed modules include:

HR Self-Service Advanced Benefits Training Administration (now Learning Management) HR Intelligence

Examination of the functionality of these modules suggests that it may be possible to satisfy the business requirements identified above in the following way:

Carrying out additional configuration in the HR module Implementing Learning Management and HR Self-Service (the latter for appraisal entry)

The main alternative to this solution is to implement (or customize from an existing application) a standalone HRM system that is fully integrated with the Oracle HR module. Many organizations that have implemented ERP solutions still find this the most cost-effective and simple way to manage the core performance management component of HRM and several best of breed standalone systems (unfortunately not yet Arabized) exist in the market because of this fact. Again an experienced Oracle implementer/integrator would be needed to do this (in-house development is not recommended). A demonstration by an example vendor (Arab Technical Services) of such a system was provided. Such standalone systems are supported by Oracle as appropriate in some cases according to client needs.

The pros and cons of these options are as follows: Additional proof of concept would be required before committing to the Oracle module solution

and care should be taken that the solution is not overly complex and that screens are user-friendly A standalone, fully Oracle integrated solution is more likely to cost-effectively meet the sector’s

needs is a simple and user-friendly manner. Again it will need to be specified, designed and program managed very carefully, and the developer carefully selected. However, proof of concept should again be sought.

Final Recommendation – Proof of Concept to Choose between an Oracle Module Approach and Standalone Solution Developed by an Experienced Oracle Implementer/Integrator

Without detailed proof of concept, it is difficult to choose between these options. On balance, we believe that the simplest and most cost-effective option is standalone development of a fully Oracle integrated solution. However, this would need to be confirmed through a systematic systems selection process that includes detailed proof of concept. Functionality should be weighted much higher than


price in such a selection (80/20 being a good guide).


Based on the demonstration received and on follow up discussions with the demonstration vendor, and assuming a standalone solution developed by an experienced Oracle implementer/integrator, our best current estimate of the funds requirement for this initiative is $470K. As the demonstration system included certain functionality already provided in the Oracle HR module implementation (HR record keeping and payroll), it may be possible to reduce this price somewhat during final negotiations. An Oracle module solution is likely to be feasible for a similar or possibly slightly higher cost but the final decision again should emphasize functionality and we consider the $470K to be a workable estimate at this stage.


Once again, the major risk factor here again is HQIT’s ability to provide tight program management of all stages of the solution development, proof of concept, and implementation.


As in the case of the Project Management System, the HRM system will be very useful to the HQIT implementation which puts great emphasis on effective capacity building, training and performance management of HQIT staff. We therefore again suggest that some vendors be approached to provide an early proof of concept and potentially a free demonstration version installed in HQIT for further evaluation and development of detailed functional systems specification requirements with full involvement of HR staff across all entities. Oracle should also be given the opportunity to demonstrate its module proof of concept at this time also – though it is less clear that Oracle would be willing to provide a free demonstration system for the exclusive short-term use of the HQIT.


The case for USAID supporting this ITMP component is directly linked to its technical assistance support for the new HQIT. Effective and early implementation of an HRM solution would be a critical component for continual monitoring and evaluation, and periodic evaluation, of the success of that technical assistance – with the ability both to measure and track training inputs, but more importantly provide objective proof of individual development outputs.

8.6.5. LEGAL


Some 1,000 – 1,500 legal cases are open at any one time across the sector, relating to a variety of issues including land acquisition and compensation, personnel, construction and customer illegal connections. External legal services are employed to support some of these. A system is needed to manage electronically the extensive documentation generated in handling these cases, to manage the case workflow on a push basis, to track and manage financial implications both in terms of external costs and contingent liabilities, and to monitor win/loss rates.

While it has not been possible to definitively obtain details of the net amounts paid out by the sector in these cases, it clearly runs into several millions of JD. A 10% improvement in the win rate due to better organization and management of the case load aided by such a system has the potential to pay for the systems needed investment within 1 – 2 years. Legal case tracking has also been identified as a key input for the proposed EIS component of the ITMP.

The recommended solution option here leverages the Collaboration Suite component and would be internally developed by the HQIT at minimum cost.



Business Processes

The sector currently has a total of 14 legal staff – four full time lawyers at both MWI and JVA, each assisted by 3 legal clerks. In addition, another six lawyers are on contract to MWI, and one to LEMA. WAJ does not employ or contract its own lawyers as they are covered by the MWI Legal Department. Legal cases managed by the sector fall into a number of different categories including:

Land acquisition and compensation Human resources cases (wrongful dismissal etc.) Wells Construction and other projects. Customer cases

The majority of cases relate to come form of compensation claim against the sector. Some 1,000 – 1,500 cases are open at any one time across the sector. There are no electronic records kept – only paper files. The legal department was unable to provide any recent data on the number of cases lost or won and the net compensation paid by the sector – except by referring directly to individual files as a specific data collection exercise.

Systems Support

An existing Oracle database application at WAJ records basic case data including the file number, case number, key dates, court, lawyers involved, and claim and judgment details. The full database schema is shown in 449HFigure 6 below.

Figure 6 - WAJ Legal Case Tracking Database Schema

There is currently no document management or workflow functionality but this could be provided


through integration with other systems. The key functionality that is missing is the financial tracking aspect – which is essential in making accounting provisions for contingent liabilities.

JVA’s legal department currently has no legal systems support.


The Group identified three improvement areas as follows: Addition of full document management and “push” workflow functionality to better track and

manage cases and be easily able to review case histories (long lapses are not uncommon) Provision of selected financial tracking of claim and judgment amounts and payments and

external legal costs – note that there is no requirement for full integration with Oracle financials here

Better tracking and controlling external legal fees Reporting tools and ad-hoc query support to easily and accurately generate case reports and

monitor win/loss rates etc. as required by sector leadership


The business requirements follow the major improvement areas above. Tight security controls on document and financial records access will also be needed with full audit trail capability to ensure that documents do not get into the public domain unintentionally.


A simple business case could be developed based on the amount of compensation paid out annually. While improvements in win rates may be hard to estimate, the system is bound to have some positive impact on this. It should be designed with this goal in mind and full involvement of the Legal Department obtained to get their insights on specific management and process performance and improvement issues, not just design another improved database. A very simple estimate – based on an assumption of a 10% win rate improvement would suggest the system investment is likely to pay for itself in 1 – 2 years.


Legal applications available in the market typically satisfy the needs of law firms, large and small. They are not so well suited to the sector’s legal situation, but could, at least in principle, be customized to do so. The best match identified in a market solutions search was Focus Power Legal – see 209Hwww.focuskm.com This legal workflow solution constitutes an advisory tool to respond to upper management enquiries in a timely and accurate manner. Focus Power Legal is specialized software that controls, distributes, monitors and manages the workflow of legal cases. It assists in efficiently completing the tasks, enables centralized monitoring of progress and supports benchmarking and smooth reporting in a concise manner.

A much better alternative in this case is probably in-house development. At one level this could just be further development of the existing database – leveraging the ImageLinks system for both document management and workflow functionality.

However, given the IMTP is proposing that the sector move to a full collaboration tool suite, it would be more effective to leverage the workflow and document management functionality available in that suite. Programming and database functionality is also supported by most collaboration systems so a full application could readily be developed internally.


Final Recommendation – In-House Development of a new Legal Application using the Collaboration Suite Functionality

Besides being easy to develop, this approach has the advantage of being able to demonstrate an early “win” for the collaboration suite investment.


Cost Estimation:

A local vendor suggested that customization of its already developed system targeting law firms might cost around $20K based on 6 users, and might take up to 2 months for implementation. This is clearly a low-cost solution, but better functionality is likely obtainable by in-house development and total costs can then be entirely met internally from staff salaries.


In-house development must be carried out according to acceptable international software development standards, supported and fully documented using appropriate applications lifecycle management (ALM) tools.


This development effort could start as soon as the collaboration tool suite, and appropriate parts of the ISO 35.080 software development standard and supporting ALM tools, are in place.


External funding of this application is not required. Even if a market solution were adapted, internal budgets should be able to cover this need – especially since it should be fully justifiable by a simple business case.

8.6.6. LANDS

Effective management of the lands portfolio is critical particularly to JVA – both for its leasing revenue impacts and for achievement of its socio-economic goals. A large amount of diverse data has to be tracked and managed around lands – including land type, use, leases, and value. Such information needs to be fully integrated with GIS. The Lands system needs to go beyond being a simple database application to supporting more effective lands management processes and better decision-making across all the departments involved in lands management.

Further work on the business case and desired functionality for this system should be undertaken in preparing the detailed systems specification, as this is a complex system from which real business benefits must be extracted – especially given JVA’s current level of cost recovery. The final solution here will be a custom developed system appropriately integrated with Oracle FAS, GIS and WMIS. This will require careful specification and tight program management of the outside development partner. Example cost estimates have been obtained from an experienced Oracle systems implementer / integrator. In the short-term, enhancements to the current system (which the Group anyway considered as a valid solution option) should be undertaken as a stopgap measure.


Business Processes

The JVA Land Department expropriates land in the Jordan valley to divide into farming and housing units, to build dams, to build canals, and for other projects. JVA both compensates owners of expropriated land and receives compensation for the redistributed land, so former owners and


purchasers alike are considered JVA “customers”. Customers have either debit or credit accounts with the JVA. Former owners have credit that the JVA pays off in installments over a period not to exceed ten years. Purchasers of land are in debt to the JVA; they must pay it off in no more than twenty years. In effect JVA is managing a portfolio of land investment and it is important that systems support is provided to do this optimally. Lands are a major revenue source – accounting for about 65% (or around 5-6M JD) of total revenues with sales of water40F

41 making up the remaining amount.

Additional business processes include lease management (mainly for tourism projects, but also for commercial and industrial use), allotment of agricultural land and housing units, aggregation of lands, change of ownership, management of irrigation network devices and power supply connections and change of zoning. Use of data contained within JVA’s Water Management Information System (which also supports billing for water at JVA) and within GIS systems is therefore needed also.

Systems Support

Transactions involving land are tracked on a computer system developed by ERNO/SMS under a 1988 contract. The system is organized as six modules: coding, database administration, land transactions, housing, accounting, and reporting. The system integrates with Oracle financials modules to track the capital value of the lands and share the plot number. Invoicing, and cash receipts and disbursements are tracked directly within Oracle financials.


A number of specific improvement areas for financial and accounting needs have been identified in previous studies including:

For sales of land:

Aging of customer accounts to identify and better manage bad debts Provision of credit notes for support of adjustments to farmer’s accounts Establishment of master accounts by farmer to help monitor accounts receivable and to be

able to tell the financial position of each farmer, his fees and payments, ability to pay, credit limit and water consumption forecasts

For lease of land for investments:

Track of accounts receivable and payable Treat the value of the land in accordance with international accounting standards – either as a

current or non-current asset depending on whether the land is expected to be sold within one year

Record interest earned and interest accrued on a monthly basis Generate proper subsidiary ledgers for regular posting to the general ledger Allow for revaluation of long-term land investments

More importantly, full document management and workflow functionality should be added in addition to simple land transaction capture and tracking. Ideally the system should contain tools for optimizing the lands portfolio based on balancing achievement of socio-economic indicators and revenue optimization according to land use options.

While water sales are tracked and managed by the WMIS, there should also be appropriate integration of the Lands system with WMIS, and indeed with GIS.

41 Managed through JVA’s Water Management Information System (WMIS) which supports a wide variety of functions including water budgeting (supply and demand), water allocation, management of water extraction and reservoir levels, irrigation scheduling, supply of water to Amman, and water distribution and billing .



As investment (especially in the tourism sector) in the Jordan Valley is becoming a very profitable business, a system that optimizes investment decisions across the entire lands portofolio has he potential to make a significant impact on JVA’s cost recovery. Access to the Lands system should be fully web-enabled so that the Lands Department, the Lands Authority (another GoJ entity), the Investment Department, Labs, WMIS staff and JVA leadership can all access the system.

Full document management functionality (leveraging the collaboration suite component) should be included (all records are currently kept on paper) and digitization capabilities provided. Workflow functionality should support all the different transaction types involved in lands management, and optimization routines and constraints should be developed and built into the application. Full GIS integration for land use is required, as is some WMIS integration because of the inherent link between land use and irrigation..

A high-level block diagram of the proposed application is shown below in 450HFigure 7:

Figure 7 - Lands System High Level Block Diagram

Significant additional effort is required to fully develop the detailed functional system specification for the Lands system to ensure that it is an effective management tool and not just a tracking database.

Consideration should also be given to including any specific lands management issues that WAJ faces –e.g. rights of way management and potential revenues from them.


With a better understanding of what optimization business rules can be applied to lands management in the Jordan Valley, it should be possible to develop a business case for the system. The Group was unable to do this in the time available. Full account of the increase in land value from improvements like the provision of roads and power should be included in the optimization. In this case, as well as


justifying the investment and providing an implementation baseline, the business case should also aid in the detailed design of the application. In developing the revenue driven business case, account must be taken of any tradeoffs with socio-economic objectives mandated for JVA.

Besides revenue optimization through better portfolio management, additional cash inflows may be derived from better collections management if the Lands Department is provided with aged receivables and appropriate exception reports. Optimization of the irrigated land portfolio by crop type (revenue/m2) recognizing the constraint of soil type is another potential business case driver.

The prices of lands changes by time as enhancements on the lands “such as roads and power” is being done, the system would also help better evaluate prices and thus generate revenue for the JVA.


The Consultant was unable to identify in the time available any comparable and comprehensive systems for land management that would meet all of JVA’s specific needs. Customization of a market solution is therefore not a realistic option. Development must therefore be done either fully in-house, or with the assistance of an outside software developer.

One such development option is to enhance the existing system. It already meets some 80% of needs, and is fully internally developed and supported so that knowledge and wisdom about the system is still retained within JVA. It is not however integrated with either GIS or FAS, although plot numbers allow manual cross-reference to these systems. Internal development would also not require any outside donor support, and could be started immediately if it did not wish to benefit from the proposed HQIT capacity building effort. However, it is not clear to the Consultant that going down this particular development route would guarantee the best possible optimization of lands revenues.

Final Recommendation – Assisted In-House Development

A better alternative to enhancement of the existing system is to engage an outside vendor to work alongside the HQIT staff to develop a new system from the ground up. Parallel development of a business case with outside involvement is likely to produce a more highly developed and comprehensive set of detailed functional systems requirements that would do much more than just automate the existing business processes and track all relevant data elements of different transactions. Developing this system according to best systems development practices is also a very good learning and growth opportunity for HQIT staff as they work alongside outside developers.

8.6.6.6. Costing Assumptions Provisional cost estimates developed with input from an outside vendor, and inclusive of development costs, implementation fees, hardware, documentation and 3 years support and maintenance, suggest final costs might be around $510,000.


Assisted in-house development must also be carried out according to acceptable international software development standards, supported and fully documented using appropriate applications lifecycle management (ALM) tools. HQIT will again need to provide tight program management and QA.


Given the complexity of both adequately defining and designing this system, and the need for tight project management, we suggest that implementation should await demonstrated building of capacity within the HQIT. Engagement even of an experienced and trusted outside developer before that is unlikely to produce the same quality of results. In the meantime, upgrade of the existing system could be used as a stopgap measure.



USAID should fully support this development initiative through its technical assistance component of the HQIT with the outside developer contract being procured through and managed by the latter.

8.7. Collaboration and Web Presence


The effective use of modern “collaboration” technology to improve personal and administrative productivity is a major opportunity in many public sector organizations. Its importance to the water sector is that it enables management staff to do more value-added work that target higher level goals like improving the sector’s performance. Collaboration tools functionality goes well beyond normal Microsoft Office programs that are already widely used in the sector. The functionality and the opportunities they provide include:

Document and knowledge management – developing, sharing, archiving, commenting and approving of internal documents (generally project-related) to increase information availability and enhance productivity

Work flow and correspondence management – automated electronic routing and “push-based” approval of internal memos and common forms (e.g. leave requests) – with full audit trail – to speed approvals and reduce unnecessary bureaucracy and paperwork

Communications (internal and external) including email, instant messaging, potentially remote access to documents, meeting coordination, common contacts database, internal news communication

Groupware to facilitate shared project work and easily collaboration through virtual shared intranet (or internet) sites

The financial investment required here is by far the smallest of the ITMP components, making a detailed business plan much less important. The latter is anyway very difficult to develop and soft factors may be more important than direct cost savings. Overall the benefits of this implementation in improved personal and sector productivity can be very significant, but substantial investment in internal staff time and training will be required to fully realize the benefits of this initiative and change deeply rooted work habits. Phased implementation, clear communication of use cases, innovative deployment strategies and solid training plans will all need to be developed by the new HQIT. HQIT should also be the “middle-out” launching ground for the sector-wide deployment.

The section begins by discussing the collaboration issues that the sector faces. A review of current collaboration systems support is presented next, followed by identification of the major improvement opportunities. The future business requirements and easy portal access to them is described, before available collaboration platform options are considered. While the functionality of the two major market offerings (IBM Workplace and Microsoft Sharepoint) is generally very similar, the Group opted for a formal systems selection during implementation to make the final choice, Price (driven in part by the availability of preferential pricing agreements negotiated with large vendors by MoICT should have a heavier than normal weighting in evaluation of commodity software offerings like collaboration platforms. Basic costings are then developed and risk factors discussed.

As far as web presence is concerned the sector has a site that is moving towards full compliance with the MoICT e-Portal standards. The beginnings of Government to Citizen (G2C) services are also available but there are probably unrealized opportunities to reengineer internal processes to better support these. Continuous upgrading of these services is largely an internal matter that does not require significant capital investment from donors or other outside sources. Close, regular and upwardly proactive coordination with the e-Government unit at MoICT is recommended.

8.7.2. COLLABORATION ISSUES

The sector currently faces a number of collaboration issues. The Group began their process by


brainstorming these – from both a current and future perspective. The issues identified fall into four main categories and include:

Internal Communications

Email and instant messaging Remote access to internet, email and files Time management – shared calendar for meeting and event scheduling Contact management – shared contact list Task and resource allocation Use of intranet for sector news and events Net meeting and video-conferencing VOIP

External Communications

Internet access Remote access to internet, email and files e-Government portal e-Government G2C41F

42 functionality (G Work flow and correspondence management

Automated, pre-defined approval and routing processes for common procedures (e.g. leave requests) and memo.

On-line access to sector policies, procedures and forms Audit trail

Document and knowledge management

Sharing, working and commenting on, and approving of documents Knowledge management (capture of the “wisdom” in the sector before it retires) Provision of a search engine to find key content Control of access to documentation Multi-language capability – on-line dictionary and thesaurus

Not all of these issues need to be addressed immediately. In fact there is a good case for phased introduction of collaboration tools that address these issues. The sector has yet to demonstrate that it can absorb and use such tools proactively and widely. A number of barriers to such use are described below. But the overall and longer-term vision here is that the sector would move gradually towards a paperless office, with a “push” workflow culture, easy sharing of information and increased personal and organizational productivity.

8.7.3. AS-IS SYSTEMS SUPPORT

There has been some recognition of the collaboration issues in the sector, resulting in use of some collaboration tools (proprietary or in-house developed). However, user education has severely limited uptake of the more advanced applications, and the other tools are point solutions. To date there has been no attempt to implement and actively drive the use of an integrated suite of collaboration tools.

42 Government to Consumer


Internal Communications Tools

The collaboration platform in use in the sector at this time is Lotus Notes. It is almost exclusively used as an email client, despite the fact that its integral Domino server can also offer advanced groupware features. Besides calendaring and scheduling, address book and other basic feature, Lotus Notes also has database, web server and programming capabilities. Knowledge of these advanced features is largely restricted to the IT Directorates, and there has been no recent or concerted effort to encourage much wider and deeper use, even though several applications have been built in the system. The update and maintenance agreement with the vendor has expired, and a major barrier is that the system has not been Arabized. Some employees elect to use free email services like Yahoo and Hotmail.

Workflow and Correspondence Management Systems

Jordanian law currently requires hardcopies of all key documents, including correspondence and internal memos, to be archived for legal and auditing reasons. While this may eventually be changed (such features are readily available electronically and can be made just as secure with appropriate back up and disaster recovery procedures), document management for now is overwhelmingly paper based. Whole “Diwan” departments are therefore dedicated to logging, tracking and archiving of documents using very basic software tools. The norm in the sector is to require a letter for even quite trivial internal requests and approvals. Approvals generally proceed at their own pace, with manual expediting if required. There is limited use in some departments of ImageLinks, an Arabic/English document capture and management system that also includes some basic work flow functionality, although the latter has really only been used in the PMU.

Knowledge Management

There is no electronic knowledge base at present, although again limited use of ImageLinks is being made in some departments. Instead multiple copies of paper documents are scattered all over the sector. Such documents contain valuable knowledge that needs to be shared with the water sector officials and other stakeholders. Those individuals may not always even be aware that a particular document exists. An initiative is in place to raise funds to create a water sector related document center that would archive all documents in the sector. However funding is not certain, and operational documentation and knowledge management would anyway fall outside of this initiative.

External Communications and Website Presence

The water sector currently has an informative web site at 210Hhttp://www.mwi.gov.jo. The site is bilingual. Under the MoICT’s e-Portal initiative, the site is moving actively towards a common look and feel with all Jordanian Ministry internet sites. However, content is not mirrored, server response is sometimes slow, and the site is not updated regularly.

Again under MoICT’s leadership, e-Government is well advanced at the strategy level but individual Ministry Plans are still being developed. In general the MoICT’s focus is on Government to Citizen (G2C) portals G2C, not yet Government to Business (G2B) or Government to Government (G2G). G2C initiatives in other Ministries have successfully driven internal process reengineering of service provision, very significantly improving customer service and reducing turnaround times (e.g. issue of visas and driving licences).

At WAJ and JVA, efforts are beginning to “e-enable” many customer-facing services. The functionality available currently through the MWI website appeared very limited however, and could not reliably be remotely accessed to review the functionality offered.

Upgrading and maintaining the sectors’ internet presence, and extending its e-Government services, is largely a matter of upwardly proactive coordination with MoICT, and compliance with e-Government standards and expectations as they are developed out in more detail by MoICT. Costs of doing these would be entirely funded internally as they essentially involve only staff support. Investments needs


in this area are therefore not considered further.


Collaboration as a concept is not addressed uniformly across the water sector – with MWI, WAJ and JVA all operating instead as separate islands. Although there is some common use of very basic collaboration tools like the Diwan software, in general the limited collaboration software initiatives are not well coordinated and there is no overarching vision of sector-wide collaboration.

Given that the three entities already share one network at the Headquarters building, a base for stronger collaboration in the sector exists that could easily be leveraged. Applying a unified collaboration across the water sector will help in creating a more efficient water sector. A gradual move to a paperless office will make the sector much more efficient, speed approvals, increase transparency and accountability, reduce costs of toner, stationary, and copier and printer maintenance as well as travel and lodging expenses, and, most importantly, achieve a much higher level of cooperation across the sector42F

43.

The following opportunities were highlighted by the Group: Reduce paperwork and speed approvals

Electronic forms: forms in common use – for example a vacation or leave request – could be made available through electronically, and completed on-line (as e-Forms), through a small number of self-service terminals on selected floors of the Headquarters building. The user interface here would be “ATM-style” with minimum data entry requirements driven by an employee number. Requests would flow automatically to the individual’s supervisor for electronic approval from their desktop. The individual requesting the leave would check back on the ATM next day for their approval - and receive a paper printout if necessary (again like an ATM slip).

Note that a review of the commonly used forms in the sector showed that many of these are HR-related and could perhaps be provided through the self-service HR module already licensed in the Oracle e-Business Suite. However, a more general and easily customizable e-Forms solution could have much wider use in the sector – and its incremental cost would also be very low as it comes as part of a full collaboration suite. Such a more general solution for example could easily support stores requests, in effect widening the electronic accessibility of the PO and INV modules.

Memos and correspondence: similar to leave requests these could all be prepared using standard Office tools and forwarded for electronic approval. Paper copy could be generated at any time on request, or routinely by the Diwan department if paper archives cannot be avoided. This will create a more efficient and transparent environment.

Work flow automation: All of the above functionality is driven by work flow automation. This will help the sector to specify, execute, monitor, and coordinate the flow of work within their environment according to the document routing required. This work flow functionality could also be used externally and tied to the e-Government services made available on the MWI web site. This would provide the basis for reengineering and streamlining many customer-facing processes. Work flow functionality has two main components:

- Workflow Modeling to enable administrators, leaders, and analysts to define processes activities and workflows, analyze and simulate them to

43 In this context, note that the simple act of bringing users and IT staff from across the sector in the ITMP Working Groups was widely recognized by the Group members themselves as beneficial. New and productive working relationships have been formed as a result.


improve their performance and then assign them to specific individuals to oversee or participate in.

- Workflow Execution which provides the Work Flow engine to drive the coordination of processes and activities provide, and provides various forms of user interface including e-Forms and electronic messaging. All user interfaces operate under preset rules driven by the Work Flow engine.

As an example of the productivity increases that should be possible, the time requested to process a request an item from the supplies room would go down dramatically due to implementation of e-Forms and workflow. Currently, such a request usually requires 12 stages to be completed; with each stage done completely manually. Even if a better balance between control and efficiency cannot be struck, the time to process a supplies request can be cut drastically with much improved sector productivity.

These types of initiatives would likely be supported by the Government Performance Monitoring Unit in the Prime Ministry and there is an opportunity here for the water sector to show some leadership in increasing efficiency in the Jordanian public sector.

Communication and collaboration tools

Scheduling: this uses a Resource Allocation engine that will allow the water sector to book resources such as conference rooms, training rooms and other facilities electronically. The tool is fully integrated with users’ calendars, team sites (see below), and messaging systems. Meetings could be set up electronically with individuals’ availability checked in advance before a calendar entry is made in individual calendars and an email notification sent automatically to all attendees. Such systems can be used directly by the individuals or by their support staff.

Messaging: instant messaging and email offer real time communications for the water sector employees allowing different parts of the organization to communicate more efficiently. The appropriate method of communication is chosen by the user at the time of needing the communication – for example an urgent or small issue might be dealt with by instant messaging, whereas a larger issue that can be dealt with overnight, and requires a full audit trail, would use email. Email is a simple and effective messaging and communication platform that is used almost universally. If authorized as the principal form of communication instead of paper the sector would be much more efficient – without any necessary loss of audit trail.

Team sites and remote meeting: Team sites can be used to create virtual project teams that can collaborate and share expertise to resolve issues remotely and effectively. They are supported by remote meeting tools that use TCP/IP protocol to transmit voice and video over a network. Such tools would allow easier participation of AWC and NGWA in Headquarters Organizations projects, reducing the need for face-to-face meetings and helping to reduce travel and lodging expenses. In time this could be extended to video-conferencing.

Electronic Document Management: A Document Management System enables organizations to manage their documents in an electronic format. Typically a large number of documents are stored for subsequent retrieval. Document management systems commonly provide check-in, check-out, storage and retrieval of electronic documents. Electronic Document Management systems have three main components:

Archiving: Document are first created or fed into the system; then stored in a database and fully indexed by content, not just title, for fast retrieval.

Administration: Sector management will have administrative rights to fully control and secure document flow and ensure only authorized users have access to the documents within workflow and policies and procedures within the water sector.

Search and retrieval: A document management system must enable an authorized user to find and access a document with minimal time and efforts, thus helping the


sector become more effective and efficient. A robust search engine merged with an user friendly user interface provides an easy and user-friendly way to do this.

451HFigure 8 below illustrates the document management system functionality:

Figure 8 - Document Management System Functionality

Policies and procedures: internal policies and procedures could all be made available on-line enabling easy distribution, reference and updating.


Collaboration Suite

452HFigure 9 illustrates the structure of the collaboration suite that we propose be implemented across the sector:

Electronic Document Management System

Archiving Administration Retrieval

Feed

Store

Index

Control

Secure

Search

Access

Share

Ensure Return on Investment


. Figure 9 - Proposed Collaboration Suite

The collaboration solution will be built on a stable database platform. All the solutions we have researched are database agnostic and allow use of most of the common databases in the market including Oracle, MS SQL, and MySQL. At the center of the solution resides a portal engine. The portal engine is the heart of the collaboration suite. Here all the collaboration suite components are driven and, as required, merged and integrated with other systems such as Oracle e-Business Suite Human Resources modules.

The portal itself is a user-friendly launching pad for employees in their day to day operations and provides access to elements such as e-Forms, document management, electronic correspondence, messaging, workflow and any other components identified above that are necessary to address the sector’s collaboration business needs. 453HFigure 10 below shows what our proposed portal might look like:

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A detailed benefits case for implementing a collaboration suite is very hard to develop – although elements of it can be quantified and estimated (see below). As widely-available market offerings, the benefits derived depend much more on the extent to which the product is ultimately used – and less on price and product features. Before attempting any quantification of benefits elements, the Group identified the main qualitative drivers that would help ensure a return on investment for a collaboration platform. The main drivers identified were:

Minimum (ideally zero!) cost Full and widespread use of the system by sector employees so that increases in personal and

group productivity result. This will require:

Easy to use, simple user-interfaces to encourage widespread use of the platform Appropriate training (continual, not just one-off) Change management to encourage use of the collaboration tools Policies and procedures to force use for certain workflows (e.g. all meetings and meeting

facilities can only be booked through the collaboration platform) Communication of the benefits of use – with practical examples

Security – since all users must know the system is secure

In effect, these drivers are critical risk factors that must be mitigated to ensure a return on investment.

8.7.7. VOICE OVER INTERNET PROTOCOL (VOIP)

VoIP uses internet technology to merge and integrate the data network with the voice network. It provides free voice communication for everyone that is connected to the same Wide Area Network. This has the potential to completely eliminate the need for landline based telecommunications voice networks (at this point in time mobile VoIP solutions have only very limited availability). VoIP can be integrated with other messaging platforms such as email and instant messaging; thus providing a better communication network VoIPs major advantage is in reducing international call costs. However special phone sets are required and at this stage of the technology they are still expensive. The two major providers of VoIP are Avaya and Cisco - both provide similar capabilities and are very comparable.

The Group discussed the merits and costs of implementing VoIP.in the water sector. Analysis of annual phone bills (see the business case in Volume II) did not give a clear business case for implementing VoIP. The high costs of VoIP handsets and the relatively limited international calling within the sector does not support a business case for VoIP. The Group discussed whether a phased implementation might enable a stronger business case, but the high initial fixed costs still make this doubtful. Ms. Ruba Kajo, our MoICT representative was not aware of any plans to explore VoIP across the Jordanian public sector. VoIP was not considered further but should be re-visited when the ITMP is updated in 3-5 years time, as handset prices will have reduced substantially by then.

8.7.8. EVALUATION OF AVAILABLE COLLABORATION PLATFORM SOLUTION OPTIONS

The Group examined three different proprietary and well known collaboration platforms: IBM Workplace – which includes as its email and groupware platform Lotus Notes/Domino MS Sharepoint43F

44 – which uses the Outlook Exchange platform

44 Note that WAJ has been actively exploring use of the Sharepoint platform.


Oracle Collaboration Suite44F

45

The market is overwhelmingly dominated by the first two products – with the market analyst IDC estimating MS in late 2005 as having about a 50% share, and Lotus a 40% share. Oracle’s share at that time was 0.3% but this may have increased somewhat following a new release of their product and cheap introductory pricing. However the MS and IBM products still dominate the market by far. A number of open-source applications are also coming into wider use and these should be re-examined during formal systems selection for their potential use.

Broadly speaking the three major market offerings provide very similar functionality – with email, calendar and contact tools as well as groupware, document sharing and web conferencing. Lotus Notes with its additional groupware, web server, database, developer and programming capabilities will require a more technically able IT support. For e-Forms and work flow, the IBM and MS products are competitive and fully cover the business needs. However, Microsoft uses third party products to close the business cycle while IBM provides a total solution. The security features of the IBM product are also considered somewhat stronger.

Against that technical advantage, a high weighting should be given to price when selecting commodity software (as opposed to specialist systems like asset and maintenance management where technical functionality varies much more). Both the Microsoft and Oracle solutions are covered by MoICT national pricing agreements. While the limited market presence of the latter raises questions over its suitability, pricing is likely to be a significant advantage for the MS product.

Demonstrations of both the MS and IBM solutions were arranged by the Groups. However, the Group was enable to agree on the relative merits of the two products and recommends that normal best practice of a formal systems selection be followed.

Note that MoICT’s Collaboration suite is based around MS Sharepoint and also uses some third party plug-ins. At present there is no comprehensive collaboration suite in operation at MoICT. Collaboration features will be included in the proposed GRP initiative.

8.7.9. COSTING

Total Cost

Our total cost estimate includes the portal engine with all the required collaboration features, perpetual licenses for email, and improvements to email infrastructure and hardware. The e-Form generator is part of the portal engine in the Sharepoint software purchased last year by WAJ but not yet implemented. Additional software will need to be purchased to act as middleware between the client and the server. After inclusion of other costs such as hardware costs for the self-service terminals and 3 years support and maintenance, the total cost of the Collaboration initiative is around $190,000.

8.7.10. BUSINESS CASE

For illustrative purposes, a business case for a paperless office is included in Volume II. Savings in paper and toner are examined as well as savings in personnel time. Note that the latter only has value if staffing levels are reduced accordingly (likely through attrition) or redeployed to more productive duties.

45 Note that the Oracle Collaboration Suite is a standalone product that is distinct from some of the collaboration features already included in the Oracle e-Business Suite (mainly workflow modeling and workflow engine to model, optimize and manage the business processes covered by the Oracle e-Business Suite modules themselves).



Even though the total investment here is small, achievement of a return is still a priority – even moreso given its high sector visibility. The key risk factors are described below.

Ensuring Return on Investment

Clearly if the collaboration platform is implemented and very few staff use it, the benefits will be very small. It is therefore important to develop use cases that can be easily adopted and their benefits readily understood and communicated across the sector. A phased “middle-out” implementation is recommended – starting with the new HQIT organization, reaching out to IT departments in the Operating Utilities, then extending to middle and senior management in the Headquarters Organizations, followed finally by wider deployment to lower levels of staff for self-service e-Forms use. Benefits of implementation should be broadly communicated as they accrue and examples of specific success stories publicized in each functionality area.

Strengthening Computer Skills

Not all potential users have even the basic computer skills needed to take full advantage of the collaboration suite functionality. In some cases, this means more senior staff as well as more junior staff. This is quite typical in many organizations. Often the initial solution for senior staff is providing them with a dedicated and fully computer-literate secretary. Over time though, senior staff usage will increase naturally. For junior staff, a number of basic computer literacy courses are available which could be offered by the Training Department as indeed some already are. Self-service terminals should be designed to require little or no computer skills.

Deployment for Cost-Effective Access

In an ideal world, almost all sector staff would have access to the collaboration tools. In practice this is unrealistic and appropriate and cost-effective strategies to deliver access must be developed. Most professional and professional support staff already have desktop access so deployment to the user group that can extract the largest benefits is straightforward. As stated above, self-service terminals located strategically within the Headquarters building and Operating Utilities headquarters can readily extend access to more junior staff for e-Forms access.

Importance of Proactive Coordination with MoICT

Continuous and upwardly proactive coordination with MoICT is recommended on the collaboration suite. As MoICT plans unfold, there are likely to be opportunities to either leverage new initiatives or learn from their experiences and someone within the new HQIT should be expressly responsible for such coordination.


Implementation of the collaboration suite is one of the earliest ITMP components. This is because of the need for the new HQIT to begin to immediately leverage its potential, and because of the broad reach of its benefits. Development of detailed functional specifications, systems selection, and program management of implementation here is also relatively straightforward – so this implementation will provide an ideal proving ground for HQIT to hone its new program management skills.

HQIT will however have to give careful thought to, and prepare detailed plans for, use cases and deployment strategies to ensure a return on investment. HQIT will be accountable for achieving that return – so indicators and monitoring processes (in this case largely input based) will need to be included in the planning. HQIT will also need to take on the communications role to broaden awareness of the suite and its impacts on sector productivity, and provide technical training to those who specifically require it.



USAID’s support of this initiative is low-cost, low-risk, easily contracted locally, and potentially high return if appropriate monitoring and check points are designed into the implementation. The technical assistance to the new HQIT organization will enable support and oversight of the selection and implementation process.

8.8. Infrastructure, E-readiness and E-Government


Infrastructure investments usually follow systems investments that are defined by real business needs – since they enable the systems investments to be deployed. With the increasing move to web-enabled applications (even in the case of in-house developed specialist systems), network infrastructure and its management will become more important to the sector.

Generally, the backbone IT infrastructure of the sector is adequate for current and future needs and bandwidth can easily be expanded as required under operating budgets. Longer term there may also be an opportunity to leverage the MoICT’s fiber optics infrastructure investment under the Ministry of Education’s Jordan Education Initiative.

In the short-term however, there are some specific upgrades to the headquarters LAN that need to be completed to support future expansion and improve sustainability and performance. A comprehensive program of LAN/WAN and associated hardware upgrades covering remote locations was also defined – with the improved connectivity being a key enabler of the supply-chain benefits discussed above, as well as making backbone systems and collaboration tools available across all sector sites. There are also significant opportunities across the sector to standardize and better utilize hardware investments.

Additional funding requests from NGWA – primarily for additional hardware in the Regional Offices, support for hand-held meter readers, and implementation of a NGWA call center – were received after the formal closure of the Working Group process. These estimates were developed with input from the Severn-Trent management consultant with the aim of improving customer service, increasing cash collections, and reducing collections costs. While detailed due diligence on the need for, and costing of, these requirements could not be completed within the ITMP timeline, the incremental requirements have been added to the ITMP costing. They should however be reviewed in detail by HQIT before any procurement is initiated – and such review should include possible duplication with infrastructure upgrades carried out under the GMED and BMFO projects.

In addition, requirements for appropriately scaled and scoped but essential investments in both Infrastructure Management Tools and Application Lifecycle Management Tools are discussed.

Finally, e-Government initiatives, and their relevance to the ITMP, are also discussed in this section.

8.8.2. AS-IS IT INFRASTRUCTURE

Backbone Communications Infrastructure - WAN

The existing communications backbone for the water sector is built over widely-used frame relay technology provided by Batelco, a local telecoms and internet services provider. This is a blind network that functions as a packet transmitter providing a secure and reliable Wide Area Network. Frame relay is one of the most cost effective WAN designs for data transmission for intermittent traffic between local LANs and between end-points in a WAN.

Frame relay puts data in variable-size units called "frames" and leaves any necessary error-correction up to the end-points. This speeds up overall data transmission. For most services, the network provides a permanent virtual circuit (PVC), which means that the customer sees a continuous, dedicated connection without having to pay for a full-time leased line, while the service-provider figures out the route each frame travels to its destination and can charge based on usage. Frame relay is not generally suitable for voice or video data transmission.


Frame relay networking is fully scalable depending on the ISP capabilities. When more bandwidth is needed, the ISP will increase the bandwidth limit. It is simple process that does not require any major new capital investment in backbone infrastructure, and is met instead from operating budgets.

Remote Site LAN/WAN connectivity

A number of remote sites exist across the sector (see Volume II for a full list by site type). They include Area Directorates or Regional Offices, other Customer Service locations, Central Labs, Remote Stores, Workshops, Treatment Plants, JVA Stage Offices, Dams and major Pumping Stations. The importance of LAN/WAN connectivity at these sites depends on the type of business processes carried out there, and the volume and frequency of data transfers to and from the site.

Many of these remote sites are connected to the sector’s WAN through the backbone frame relay system. While most of these sites also have the hardware to connect to the WAN, many of the connection have not actually been activated, apparently because of breakdown of management communications. (It is not uncommon in parts of the sector to have a surplus of unused hardware – this issue should be eliminated completely under the new HQIT initiative). Most of the remote offices also have at least a primitive LAN, but this may have been installed by a semi-IT-technical individual such as a mechanical engineer who happens to work at that remote location. As a result, at these locations, the number of LAN outlets may be inadequate, outdated and non-standard technology is in use, speed may be inadequate, security (both physical and network access) and data backup procedures are weak, and a variety of different communications protocols may be in use. A small number of remote locations have no LAN, or they have a LAN but either no WAN connection or just a dial up line.

Most of the remote locations do not have a proper server room or cabinet, and proper design and operating documentation is often missing. The LANs operate as isolated islands and do not communicate with each other. Remote locations will also need basic Infrastructure Management Tools (IMTs). While these could be provided centrally, the Operating Utilities may choose to deploy their own solutions.

Finally there is a serious shortage of qualified staff in remote locations. Most of the work is done manually and applications if present at all are very basic. There is little or no integration of remote applications with centralized systems (even between remote stores and the Oracle e-Business Suite INV module. WIS seems to have most coverage in the sector, but no real time integration is present.

Desktop Computers

In general the sector has up to date desktop computers. Most of the new desktops are located at the center and at the independent Operating Utilities. A total of some 800 desktop computers are deployed across a sector with some 8,600 permanent staff. The sector has a wide range of desktop computers distributed as follows:

The sector has a wide range of desktop computers distributed approximately as follows: Pentium IVs account for 80% of Headquarters machines and 70% of Operating Utilities machines

but only 15% of remote WAJ and JVA sites Pentium III’s account for 10% of Headquarters, 20% of Operating Utilities, and 30% of remote

office machines Older machines make up the remainder in each case – meaning 55% of remote office machines

are older than Pentium IIIs

Over time, newer desktops do find their way to the remote sites as brand new ones replace them elsewhere.

There is no standardization in terms of the software being run and many computers are not running basic utilities like anti-virus or firewall software.


Servers

WAJ has the most up-to-date and consolidated servers as they have recently acquired blade servers (multiple servers housed in one chassis with dedicated management systems and power supplies). The WAJ blades are installed, but only 2 out of 11 servers are activated. Proper utilization of the new blade servers can be ensured by the new HQIT – this would save the sector a significant investment in servers as the blade servers are very powerful and leading edge.

Generally however, the sector is running on much older servers, even at the Operating Utilities. More than 50% of the servers are more than 2 years old. The server network for the sector will need a major upgrade under the ITMP because we will be deploying new and demanding applications. Server upgrades should generally be determined at the time of application implementation but in the meantime there is certainly an advantage to standardizing and consolidating server types. The number of types has multiplied because of GoJ procurement regulations emphasizing least cost. Procurement under the ITMP can therefore focus on standardization as well as cost.

MWI is currently using old desktops as servers – this needs to be rectified quickly and the servers consolidated. Such consolidation would save the sector money and help to create a network that is stable, fully scalable and highly available.

Infrastructure Management Tools

Infrastructure management tools support a wide variety of systems functions – from monitoring the operation and performance of networks, servers and other hardware, allowing IT administrators to manage the systems configuration (e.g. for security reasons), to deployment of software. Other tools support IT asset management and help desk support.

Currently, the sector’s infrastructure management is purely reactive. Network managers are constantly fighting fires and have very limited tools and resources to anticipate and troubleshoot problems. The sector has acquired the basic Network Node Management module from HP’s OpenView infrastructure management suite. However the module has not been fully activated and the training provided during implementation was inadequate. It therefore does not add much value at this time – and highlights the issue of choosing solutions appropriate to sector needs and capabilities, and again program managing implementations to ensure training is adequate and real skills transfer occurs.

A very basic help desk system was developed under Lotus Notes. It provided a tool to request technical support and follow up on such requests. The system was developed in association with a USAID funded project “WQICP – Water Quality Improvement and Conservation Project” and deployed sector-wide, but, except in the PMU, has not been utilized since 2000. Its use is limited by the Lotus Notes platform not being Arabized, and by the user-friendliness of some of the screens. Similarly a computer inventory system “Clicknet” was deployed but again has not been used since 2000. This has now been decommissioned due to lack of technical support.

Other

Other points relating to As-Is infrastructure include: The sector has a wide array of networking and communication devices – their performance being

dependent on the experience of the individual staff using it. At Headquarters Organizations and in the Operating Utilities, where most of the experienced employees are, In the center, there is generally good utilization of infrastructure. In remote locations, equipment has often been deployed but has either not been activated or is no longer in use.

The sector has also acquired printers, scanners, and hand held devices, and some water meters now use GSM technology for automatic meter reading. Expensive resources such as plotters are scattered throughout the sector. Such devices should be standardized, inventoried, and made more widely available where needed across the sector.


SCADA infrastructure has been deployed in many locations across the kingdom with particular focus on the King Abdullah Canal in the Jordan Valley and in Amman. A comprehensive nation wide SCADA plan is being prepared by the PMU, and HQIT will need to coordinate with this plan.

There is no a comprehensive disaster recovery plan – only manual tape backups happening largely independently across the sector.

IT human resources vary widely in their skill level. Proper training and knowledge transfer plans have to be established – this will be a major thrust of the new HQIT initiative.

8.8.3. MOICT INFRASTRUCTURE PLANS

As in a number of other areas already discussed, it is important when planning infrastructure upgrades to consider MoICT’s plans. The two most important infrastructure initiatives are:

Secure Government Network

The Secure Government Network is a government initiative that will route all government electronic communication through one data center. The project is using Microsoft technology and is expected to fulfill the needs of the whole government within the next two years. Its scope is however limited to Amman.

Communications Infrastructure

As part of the Jordanian Education Initiative, MoICT is connecting over 3,000 schools, learning centers, colleges, and universities across the kingdom through a fiber optic network over 5,000 km in length. This network will be owned and operated by the Ministry of Education. Potentially, negotiating access to this geographically extensive network could save the sector future capital investment in expanding their communications network.

8.8.4. MOICT AND E-GOVERNMENT PLANS

e-Government is a National Program initiated by his Majesty King Abdullah II. The purpose of this program is to enhance the performance of government in terms of service provision, efficiency, accuracy, time and cost effectiveness, transparency, high level of customer satisfaction, cross-Governmental integration, and many more elements related to the style in which the GoJ works and the public’s perception of this.

e-Government Portal

MoICT’s e-Government unit is designing a government portal that will connect citizens, businesses, and government together. The vision here is that the portal will act as a one stop shop for all government services. A citizen will be able to contact and connect with any government official electronically and transparently in order to settle business with the government. The portal will be supported buy a payment gateway that will enable the settlement of financial issues online. The water sector can elect to serve clients directly through the MWI portal or they can connect through the general government portal.

GRP Software

MoF, MoPIC and MoICT are all involved in the planning phase for selecting and implementing a Government Resource Planning (GRP) system. Jordan’s Integrated Technology Group (ITG) has already deployed Phase One its GRP solution, WaveGRP™ at the Jordanian Ministry of Tourism & Antiquities. The goal of the GRP system is to connect the financial operations arm of each government office back to the Ministry of Planning. Such an initiative will help create more transparent and efficient government operations. Given that the water sector is already implementing Oracle Financials there will be a need to examine how this system integrates with the planned GRP –


though this is unlikely be a big issue and could potentially be leveraged into the Budget Preparation support needs identified by the Back Office Group.

Other

The e-Government program is also sponsoring a multitude of initiatives to enhance the competitiveness of the Jordanian economy and the IT sector. These include continuous training and rehabilitation of the government workforce and increasing the operational efficiency of the different government offices all over the kingdom.

8.8.5. OPTIMUM IT ARCHITECTURE FOR THE SECTOR

The networking infrastructure architecture provides another essential foundation for the ITMP. Just as the HQIT addresses the human resources and capacity building needed to ensure the success of the ITMP, the network infrastructure is needed to assure maximum access and availability to applications as needed across the sector.

An optimum IT architecture that is proposed is shown in 454HFigure 11 below.


Figure 11 – Proposed Architecture of the sector’s network

The proposed architecture adheres to industry security and quality standards including ISO 17799 and Information Technology Information Library (ITIL). It will continue to be based over a Frame Relay network - but one that now connects all entities together. The secure intranet will allow full integration of all applications and resources in the water sector. The collaboration solution (described in the previous section) will reside on the intranet as will other systems such as EIS.

The proposed architecture will be built to assure high availability of all applications and resources on the network. Single point network failure will be eliminated. The network design will utilize stringent security measures, isolating the intranet from outside dangers such as hackers. The public will not be able to access the sector’s network except in a controlled manner and on specific segments of the network known as demilitarized zones (DMZs).

Hardware and software solutions will be in place to detect and stop intrusion attempts, viruses, spam and any other threat that may affect the network’s performance. Such solutions will be deployed wherever necessary on the network, such as on internet gateways and between the entities and the headquarters.

8.8.6. CRITICAL INFRASTRUCTURE NEEDS

The Group identified four main infrastructure upgrade components. Each one is described below:

Headquarters LAN Upgrade

Additional detail on the As-Is situation at Headquarters is provided first, before describing the upgrades that are required below:

LAN

The Headquarters LAN is currently shared between all entities at the head quarters, and managed by Mahmoud Shloul. The LAN has now reached its full capacity in terms of the number of ports it can support. The network backbone switch that connects all the ports across the two adjacent


Headquarters buildings is a layer 2 switch with a very limited number of ports and limited expandability.

On the plus side, the HQ LAN is interfaced to the internet through a hardware firewall box that provides full protection and servicing including

Anti Virus Anti Spam Intrusion detection and prevention Packet filtering Main relaying

Server Room

The power supplies and backup Uninterruptible Power Supplies (UPSs) for the main server room are not sized or stable enough to adequately sustain the hardware and systems at the Headquarters. Operational conditions for the main server room are also not up to international standards for the following reasons

Air-conditioning is inadequate for current needs Physical security and access rights are weak – there is no controlled access system and the server

room is not locked at all times Server room floor space is not adequate - parts of the server room are in fact used as staff

workspace Power and data hookups are substandard and need upgrading The server room does not have clear labeling and its configuration is not adequately documented.

Servers

The HQ LAN is managed by two non-clustered mid-range servers with insufficient fault tolerance. Two proxy servers are installed on top of the LAN to control internet access for all entities. One of the servers is a Pentium II desktop with very limited functionality. The front end servers are Pentium IIIs – again with limited fault tolerance. There are two mail servers - one for the sector and one for the PMU. One of these servers is new and the other is a Pentium a PIII. Again the design lacks redundancy. Applications servers support a wide range of applications at the Headquarters. Some of the application servers are Pentium II desktops, while others are premium blade server components.

Improvements Needed

The improvements recommended to the Headquarters LAN are summarized in 455HTable 12 below:

Item Justification Remarks Network outlets To add new key users to the LAN to improve their

productivity and share information and expertise.

Replacement of the current backbone layer 2 modular switch

To cover the existing needed ports for servers on the backbone, enable future expansion, and support VLANs to improve performance and maintain LAN sustainability through “layer 3 protocols”

The existing switch can be used elsewhere in the sector or traded in.

Upgrade server room To control servers access and ensure good operational conditions to avoid any faults

UPS for all Telecomms Cabinets To provide enough power for communication device to allow data recovery


Item Justification Remarks Internet speed To improve the speed of communication with the

internet to normally accepted international standards

Firewall system To protect the LAN from hackers, viruses, spam, and any other source of intrusion

Training To enable local staff to manage the LAN professionally

Table 12 - HQ LAN Upgrades

The total costs of these upgrades are estimated at $0.21M.

Implementation Risks

HQIT will install and run the new Headquarters LAN – so there should no risks here.

Remote LAN/WAN upgrades (including associated hardware upgrades)

The As-Is situation here was described in some detail above. The suggested improvements are listed below:

Potential Improvements

Install standard LANs to normal professional standards where needed – including locations currently running legacy or sub-standard LANs

Provide WAN connectivity for remote sites where justified by the business needs – this should be a priority for locations that already have the communications hardware installed

Upgrade servers, server rooms and cabinets and desktop computers as appropriate Provide end user training

Estimated Costing

After carrying out an extensive inventory of existing remote site LAN/WAN connectivity and hardware, with very detailed inputs from JVA, NGWA and LEMA in particular, the total estimated cost of required remote site LAN/WAN and associated hardware upgrades is just over $1.1M.

Justification

The remote site upgrades are justified on the basis of making the collaboration tools and backbone applications available to all sites. In addition, upgrades at remote store locations will be critical to realizing the substantial supply chain benefits identified above in Section 456H8.3.

Additional hardware requests from NGWA

Additional incremental hardware requests were received from NGWA after the formal closure of the Working Group process. These were developed with input from the Severn Trent management consultant. They have not been subject to detailed due diligence by the Group, but have been included in the overall ITMP cost nevertheless. These requests should be reviewed in detail by HQIT before any procurement is initiated – and such review should include possible duplication with infrastructure upgrades carried out under the GMED and BMFO projects.


Infrastructure Requests

New file, printer and domain servers in the Regional Offices plus additional PCs and associated peripherals

Server upgrades at the NGWA HQ office Incremental licenses for basic software installs required for the above - including antivirus,

firewall and anti-spam Installation of a call center at NGWA HQ – plus associated telecoms infrastructure and

interfacing to the legacy billing system Provision of handheld meter reading units and their interfacing to the legacy billing system

Justification

The remote site upgrades above will significantly improve customer service, increase collections and lower collections costs – in addition, again, to making the collaboration tools and backbone applications available to all sites.

Estimated Costing

NGWA’s cost estimate for this additional infrastructure is $0.7M.

Infrastructure Management Tools (IMT)

Current Situation

The As-Is situation here was described in some detail above.

Justification

An adequate suite of infrastructure management tools is essential for smooth operation of the LAN, WAN, servers, desktops and communications components in the sector. Such tools enable real-time assessment to enable predictive maintenance in anticipation of network bottlenecks. High availability of systems across the sector is essential – particularly for billing software, email and web services for example. IMTs will also be needed to manage rollout of more systems and systems upgrades across the sector. Deploying the ITMP systems components without proper IMTs could significantly impair their usefulness – especially given that most of the new applications will be web-enabled.

Recommendation

While IMT’s are clearly essential to the sector, we do need to find an appropriate balance between functionality and price and invest wisely as the price tag on such tools can very expensive. IMT suites can range widely in price according to the vendor who makes them and the capabilities provided. cost range for such a solution highly depends on the capabilities of such a system. Prices can range from $50,000 to $4M. Without further detailed study, it is difficult to estimate the costs of the requirements here. Independent specialist analysis is probably required to develop such estimates and this could readily be done at implementation. However, the group accepted that an investment of the order of $300K would be a significant step in the right direction – especially given the plans above to upgrade the network anyway. This would cover all HQIT infrastructure responsibilities – i.e. the Headquarters LAN and the WAN up to the Operating Utility’s firewall. The tools could also be made available to Operating Utilities if preferential licensing could be negotiated.


Application Lifecycle Management Tools (ALM)

Current Situation

Although these tools do not strictly fit under the Infrastructure Group, having robust applications and maintaining their integrity through successive customizations and upgrades is just as important as maintaining network and communications infrastructure performance. This is especially true given that the sector will continue to need in-house developed systems, and these will now need to be routinely integrated with Oracle e-Business Suite modules. Currently the sector has neither standardized procedures nor supporting tools for application lifecycle management.

Justification

In order to bring standard processes, rigor and discipline to all aspects of software development and maintenance, it is important to establish appropriate policies and procedures. This point was made clear in the IT Organization discussion where the importance of referencing international standards was made. ALM tools complement these international standards in the same way that IMT would complement network and infrastructure management policies and procedures. The functionality included in ALM tool suites covers requirements management, configuration management, process and change management and IT project management. The newer tool suites are now also able to support and track Oracle e-Business Suite configuration changes which will be increasingly important also going forward.

Recommendation

An appropriate initial investment in ALM tools is estimated to be around $150K based on 20 users. Packaged solutions are readily available with low implementation and support costs.

8.8.7. COSTING ASSUMPTIONS

Inclusive of hardware, software, implementation and support costs the total cost of the infrastructure component is estimated at

8.8.8. IMPLEMENTATION RISKS

Implementation Risks

Based on past experiences, the main risks appear to be over-investment and under-use. The establishment of the HQIT and its effective management of both systems specification and selection and implementation and support will be the main way to mitigate this risk. Training in all the skills and tools involved in infrastructure management (and applications management) is an integral part of the HQIT proposal.

Implementation risk is also high in the case of IMT. Implementation should only be done by very highly qualified professionals. A previous attempt to acquire such tools failed because of under qualified installation engineers. To further mitigate risks, the implementation should be phased and rolled out on a modular basis according to prioritized needs. This is fully consistent with a phased investment in such tools.


The importance of infrastructure upgrades as a foundation for other ITMP components means that this component is also one of the first to be completed under the plan. The Headquarters LAN upgrade is becoming urgent, and the remote site LAN/WAN upgrades are fundamental to extending the reach of applications and in particular realizing some of the benefits identified in the supply chain area. Similarly early embedding of both IMT and ALM tools will support the development of the foundation policies and procedures needed by the new HQIT. Lastly, with the exception of the IMT, infrastructure upgrades are generally straightforward and the program management burden on the


HQIT in its early post-consolidation days will still be manageable.

8.8.10. POTENTIAL USAID INPUTS

USAID’s direct involvement in this component is important to facilitate standardization of hardware items that is difficult to achieve under GoJ procurement rules. Procurement could be done in this case under Geographic Source Code 899 which would allow both local and US-based procurement.

9. OTHER IT COMPONENTS NOT INCLUDED IN THE MASTER PLAN

A number of other IT components common in water sector operations were not identified as real priorities in the development of the ITMP, either because they are relatively small investments, require extensive specialist technical or engineering knowledge to develop them, or other projects are already extensively supporting them. The focus of the ITMP is on where to invest to achieve maximum return in absolute JD terms.

Specific areas that were not developed include GIS, SCADA, Laboratory Information Management Systems (LIMS) and hydraulic and network modeling tools. A SCADA master plan for WAJ is under development by the PMU funded by the EU, and the extensive SCADA systems for JVA’s management of the King Abdullah Canal are performing well though require some hardware upgrades which have been included in the ITMP Infrastructure component.

Hydraulic and network modeling tools are generally used by outside consultants for specific engineering studies. While some internal capacity to use these tools already exists and could be extended, the investments required are small and require specialist inputs that were not available to the project team.

The LIMS is a critical system for ensuring water quality and compliance with environmental standards across the sector (especially following centralization of the labs). The current system was supplied by Applied Bio Systems, a leading vendor of LIMS systems. It was implemented in 2001/2002 and uses an Oracle database. There appear still to be bugs and support issues with the new LIMS, which are clearly operational issues.

Other key issues include difficulty in uploading of historical data from other systems and labs (often necessitating patches), lack of appropriate integration with GIS, the need for development of sector-wide coding systems, and the need to develop one centralized database of water quality data with sophisticated reporting tools to analyze and manipulate that data. LIMS tools primarily manage the handling, processing and analysis of samples, and are not sophisticated data management tools.

Many of these issues are operational or institutional and are therefore considered outside the scope of the ITMP. The GIS integration issue should be addressed as part of a Working Group discussed below.

When the ITMP project selected the investment components it would detail, based on the Consultant’s as-is recommendations presented at a workshop in December 2005, GIS was identified as a backbone system for the sector. However, recognizing ongoing support of GIS by both the EU through the PMU and GTZ, the ITMP Steering Committee agreed with the Consultant not to include GIS as an ITMP component for further detailed. The GIS representative on the ITMP did express some concern over this decision – recognizing that the ITMP represented an opportunity to rejuvenate and better coordinate GIS initiatives. However, no GIS Working Group was established.

In March 2006, at a meeting in Aqaba, the Steering Committee questioned the progress and achievements of the sector’s GIS initiatives. Specific issues related to the organizational roles and responsibilities that the proposed HQIT should play in relation to GIS, to the apparently stalled efforts to establish a sector-wide GIS clearinghouse, and to the need for a larger vision of GIS that goes beyond viewer type applications to support systems integration across the sector to provide a spatial dimension where needed to improve planning, performance, and oversight of the sector. The Steering Committee requested that a follow-on Working Group be established (likely under USAID funding as


an early part of the ITMP implementation phase) to address this issues. The Consultant was asked to develop a Terms of Reference for the proposed GIS Working Group – which is attached as 457HANNEX 8 – GIS WORKING GROUP TORS.

10. PHASING OF COMPONENTS

In recommending an appropriate phasing of the ITMP components, there are many factors to balance and trade off including:

Front-end loading as many components as possible that bring large benefits to the sector Quick win opportunities Front-end loading ITMP components that enable other components (e.g. Infrastructure and source

systems essential to the EIS) Management capacity of the HQIT to cope with a high workload from overlapping component

implementation

458HANNEX 9 – PHASING OF ITMP COMPONENTS provides an overview of the suggested phasing of each ITMP component. Essentially the ITMP is a series of investments over a four and a half year period that, if implemented well, will reap performance improvement benefits for the sector. We recommend that the ITMP be revisited every 3 – 4 years by the HQIT organization as sector needs evolve.

The HQIT technical assistance provides the foundation which runs through the entire program. The first components implemented are relatively straightforward hardware and networking infrastructure improvements, and implementation of an off-the-shelf collaboration suite. Implementation of these can begin even alongside the comprehensive training and capacity building program which continues into 2008.

Various Back-Office systems will be implemented next. The Legal application leverages the Collaboration Suite and is therefore an obvious starting point. HRM and Project Management applications can be centrally deployed, and will likely be custom-built in conjunction with an outside vendor who is experienced both in Oracle e-Business suite implementations and in design of custom-built solutions that are tightly integrated with that suite. Recognizing their importance to the effective operation of the new HQIT, we suggest that vendors be approached early to provide proof of concept and a small scale pilot application for early deployment at HQIT. This can then be evaluated and improved for broader rollout. Budget Preparation and Lands are likely the two most complicated components of Back Office and may need to be developed last when the management capacity, program management and QA skills have reached acceptable levels in the HQIT. Given the Lands system is core to JVA’s operations, there may be a need to identify some short-term fixes here as an interim measure. This was anyway recognized as a possible solution option here.

By this point, corporatization of the HQIT should have been achieved, and the problem of staff sustainability fully solved. The staff training program will be complete and the HQIT will have both the broad and deep management and IT skills needed to take on the remaining two major initiatives.

The first of these is the sector-wide implementation across all Operating Entities of a comprehensive Asset Management-Maintenance Management system that is tightly integrated with an optimally configured set of Oracle Supply Chain modules. The second is the detailed design and implementation, primarily across headquarters organizations, of the Executive Information System. The latter will require extensive preparation work – both on data flows and sources and on preparing headquarters staff for its effective use in performance management. As discussed under the EIS component, there may be some advantage in early procurement of the BI tool to support advance efforts on EIS development using non-HQIT staff. This could help solve short-term issues with for example WIS/WMIS/Project Database integration.


11. CONSOLIDATED COST ESTIMATES

11.1. Assumptions

Cost estimates for technical assistance components have been estimated using standard USAID costing principles, rates and multipliers applicable under the current SEGIR II IQC contracting vehicle. Since all other ITMP components are routed through the HQIT Organization technical assistance, they are therefore subject to normal USAID G&A markups. No contingency is applied to the HQIT component.

The costs of other ITMP components have been estimated using standard IT costing benchmarks and vendor inputs. 15% contingency has been added to the labor, ODCs and G&A subtotal. This is considered appropriate given that final costings will be dependent on development of detailed functional systems specifications and formal selection of the best vendor.

Costs are stated throughout in 2006 dollars – i.e. there is no allowance for inflation

11.2. Cost Buildups

459HANNEX 10 – ESTIMATED FUNDING NEEDS BY COMPONENT presents cost estimates in summary form by ITMP component by year. Each cost element is estimated by calendar year, allowing consolidated funding requirements to be derived by year for USAID budgetary and programming purposes.


12. OVERALL ITMP BUSINESS CASE

The overall business case for the ITMP is summarized in 460HANNEX 11 – OVERALL ITMP BUSINESS CASE. This aggregates the benefits streams where these have been quantified, discounts them further to correct for the fact that some components are not implemented immediately, and then compares the result with the PV of the ITMP disbursements.

A conservative discount factor of 10% is applied. This represents the opportunity cost of money provided by the government sector or the donors. In reality this is likely to be much lower than 10%, confirming our conservatism. Note also that ongoing support costs (widely perceived as a major issue in the sector) have been factored in appropriately. They are readily absorbed if the benefits of the systems implementations are fully realized and the sector’s belief that these are a barrier is shown to be unwarranted.

The ITMP is shown to have a net benefit of $7.1M based on the conservative assumptions used throughout. Significant additional benefits that cannot easily be estimated would accrue from other ITMP components such as EIS, Lands, Budget Preparation, and Legal, as well as the Collaboration Suite.

Note that the AM-MM-Supply Chain initiative alone covers almost 80% of the ITMP costs. While the major portion of these net benefits (from our individual component analyses above) derives from the Supply Chain portion, the two initiatives are interlinked and will reinforce one another in reality. CIS/Billing tips the balance of the ITMP firmly to the net benefit side. However, the benefits need to be captured during or possibly soon after the X7 implementation.

13. SUMMARY OF QUICK WINS POTENTIAL

The largest and most immediate quick win lies in improving the rollout and implementation of the X7 CIS/Billing System, largely through coordinating process improvement and institutional changes. However, unless robust program management and process skills can quickly be allocated within the sector, this quick win is “at-risk”.

Implementation of the Collaboration Suite is another significant quick win – although its benefits will have to be phased in over time. The e-Forms functionality and workflow may be a particularly quick win, speeding approvals and freeing up resources for more value-added activities.

Another potential quick win is providing early connectivity to the many remote stores thereby making the Oracle INV module available to those stores to begin better management and reduction of inventory.

Lastly the pilot implementation within HQIT of the HRM and Project Management tools will support quick wins in the capacity and performance of the HQIT organization.

14. CONCLUSIONS

An IT Master Plan founded on building strong and sustainable IT management and operations skills in the Jordanian water sector has been developed. The total program cost is estimated at some $21.6 million over the next five years. Funding requirements start out at around $8.5M in 2007 and peak at around $9 million a year in 2008 because of the high front end funding required for the HQIT, and the fact that a number of different systems initiatives kick in then.

While $21.6M may well seem high at first sight, the benefits that the ITMP can bring to the sector far exceed its costs. Based on conservative assumptions, and counting only the systems initiatives for which tangible benefits can be derived (Asset and Maintenance Management-Supply Chain and CIS/Billing) the ITMP has a potential net value of some $14M. Even without considering the substantial benefits that are likely to be gained from the EIS, Lands and Budget Preparation initiatives for example, if USAID were to fund the plan in full, they would give the sector $21.6M in grants,


which the sector could then turn into an additional $11M in benefits from those grants. This suggests that the usual practice of GoJ co-financing normally required by the donors can easily be justified.

Early investment in building sustainable IT capacity in the sector underpins implementation of the whole ITMP. Establishing the HQIT and ensuring that it champions the philosophy and underlying principles of the ITMP across the sector and among the donors will bring real objectivity, rigor and consistency to IT investments and ensure they provide a guaranteed return. Systems must now be selected on the basis of business process improvement potential (not just business “needs” in the narrow activity sense). Equally systems implementations must be program managed much more robustly according to accepted best practices, with implementation quality measured on realized business benefits, and transfer of in-depth skills and knowledge to sector staff. The burden and responsibility of both world-class technical and program management of the ITMP falls on the HQIT, underpinning the need to ensure its capacity is adequately and quickly built. Building this capacity internally however, is much more likely in the long run to maintain the integrity of the ITMP and its principles and lead to sustainability of quality IT support to the sector.

Finally, the need for much more regular, detailed and upwardly proactive coordination with donors and MoICT regarding their IT initiatives and plans has also been identified. This will ensure that the sector can fully leverage, and ensure full compatibility with, other IT investments in the Jordanian government sector


ANNEXES TO VOLUME I


ANNEX 1 – PROJECT CONSULTANT TEAM

Name Title Company

Ian Driscall COP-Chief of Party Emerging Markets Group

Hussam Abu-Harthieh Business Process Analyst Emerging Markets Group

Ramez Mallouk Senior IT Consultant Emerging Markets Group

Sanabel El-Rayes IT Consultant Deloitte & Touche (M.E.) Jordan

Mohammad Musleh IT Consultant RazorView


ANNEX 2 – ITMP STEERING COMMITTEE

Steering Committee

Eng. Khaldon Khashman NGWA

Ra'ed Hijazi NGWA

Mahmoud Shloul PMU

Naser Bataineh JVA

Isam Bataineh WAJ

Eng. Mohammad Bani Mustafa "Coordinator" MWI

Eng. Youssef Hassan MWI

Eng. Suzan Taha MWI

Nidal Saliba PMU


ANNEX 3 – ITMP WORKING GROUPS

IT Organizational Structure Executive Information System” EIS

Eng. Khaldon Khashman* NGWA Eng. Youssef Hassan* JVA

Mahmoud Shloul PMU Ibtisam Al- Saleh MWI

Naser Bataineh JVA Eng. Suzan Taha* MWI

Eng. Mohammad Bani Mustafa MWI Eng. Wessam Yared WAJ

Isam Bataineh WAJ Back Office

Ra'ed Hijazi NGWA Naser Bataineh* JVA

Majid Qutaishat WAJ Ghalia Khaznakatbi JVA

Customer Information System "CIS" Ayda Jbour JVA

Isam Bataineh* WAJ Nadia Al-Ja'fari WAJ

Fayez Habarneh NGWA Moeen Barqawe WAJ

Yasser Jariri WAJ Mahmoud Zou'bi NGWA

Ahmad Abu-Saoud AWC Mohammad Muhaisen LEMA

Mohammad Al-Khateeb JVA Collaboration and Web Presence

Ahmad Al-Sadouni LEMA Mohammad Bani Mustafa* MWI

Eng.Tamer Al-Assad WAJ Inas Mohammad Zuraiqat MWI

Asset and Plant Management & Maintenance Aysha Abu Allan WAJ

Eng. Ahmad Abu-Sheikah* NGWA Firas Khallad LEMA

Jiryes Ghandoor LEMA Abdulqader Jaradat NGWA

Nidal Saliba PMU Hashem El-Naser MWI

Esmat Halaseh WAJ Infrastructure, e-Readiness & e-Government

Wa'el Abu-Taha WAJ Mahmoud Shloul* PMU

Esam Rahal JVA Ahmad Abu-Alkishk LEMA

Jamal Al-Khatib JVA Eng. Suzan Hamdan JVA

Supply Chain Reema Hamori MWI

Eng. Mahmoud Hakouz* JVA Eng. Qais Khashman WAJ

Eng. Eman Fakhouri WAJ Eng. Bassim Al-Khatib NGWA

Khalil Jammain WAJ

Husein Abu Nijim NGWA

Eng. Feda Muanes JVA

* Group Leader


ANNEX 4 – SCOPE OF WORK

Scope of Work Information Technology (IT) Master Plan

Background

The potential for performance improvement in the Jordanian water sector through use of information –technology (IT) has been recognized for some time. Improving the flow of management information to decision –makers within MWI, WAJ and JVA allows performance improvement on many levels – for example, more timely and accurate billing, identification of principle sources of unaccounted for water, or overstock of supplies. At the same time, improved access to performance information for MWI facilities leads to better policy-making and supports the introduction of effective regulation.

Integrated Management Information Systems (MIS) are usually built around a data warehouse. This may accept outputs from of a wide range of IT applications (e.g., financial, revenue management, materials management, work management, HR and SCADA to populate the data warehouse. If a particular application does not easily interface to the data warehouse, “middleware” is available to build that interface. Suitable reporting, data interrogation, and even data mining tools allow an almost infinite variety of financial, operational, management, regulatory and other reports to be reproduced easily from the data warehouse. Such reports can be web-enabled with appropriate security.

Over the past several years, a number of projects have implemented new information systems and technologies in Jordan’s water sector. Examples include the Water Information System, the GIS database, and most recently ORACLE financials and Customer Relationship Management. These are funded by a variety of donors and have tended to be “point” solutions justified on the basis of their own benefit/cost business cases. The geographic and organizational scope of these systems varies and integration of them is limited. While this situation is not uncommon, the synergies of an integrated suite of IT applications that combine financial and operational data to provide management implementation costs are not as developed as they need to be.

Recently a number of developments in communications technology have increased the ways that data can be accessed and transmitted. They have also opened the possibility of using outsourced application Service Provider (ASP) approaches. Indeed, proposals have been made to introduce several additional ORACLE applications through a Unified Application Service Provider to serve all entities in the sector and to establish e-government capabilities.

Until now there has not been a systematic attempt to take a holistic view of the Jordan water and wastewater sector’s IT needs and to develop an IT Master Plan. Such a Master Plan is important in any enterprise or sector-wide IT initiative. It takes account of legacy and ongoing systems implementations but focuses on maximizing the functional benefits of all IT components at minimum cost. In effect it is a “least cost” investment plan for sector IT.

In short, an IT Master Plan is an essential prerequisite to further orderly and effective development of IT in Jordan’s water sector. IT commitments already made have long-term consequences. It is important that any new technology and systems choices build effectively on these post commitments. New IT choices should only be made after a careful analysis of the success (in return on IT investment terms) of previous systems projects. Careful analysis of the needs, options, integration and technology opportunities and challenges and long term costs and benefits of the options for new IT applications will ensure maximum return on future IT investments in the sector.

Several software applications currently exist in the MWI, WAJ and JVA. The following tables summarize these applications.

MWI

Application Name Description Type Tools Status

Attendees System Administration Internal Oracle Not Used


Development Water Information System (WIS)

Water Management

Internal Development

Oracle Production

Expenditure System

Financial System External development

Oracle Production

WAJ

Application Name Description Vendor Tools Database Version COBOL Billing System

Financial-Billing Internal/WAJ COBOL COBOL file System

COBOSS0 COBOSS1 COBOSS2

X7 Billing System Financial-Billing Info Oracle Inventory System Inventory Internal/WAJ COBOL Cobol file

System

COBOL Personnel System

Personnel Internal/WAJ COBOL COBOL file System

COBOL Payroll System

Financial Payroll Internal/WAJ COBOL COBOL file System

Expropriation System

Expropriation Internal/WAJ COBOL COBOL file System

Tenders System Tenders Internal/WAJ COBOL COBOL file System

ACCPAC Financial System

Financial Ready Made Package

Oracle Pervasive .SQL Database

NGWA Oracle Personnel System

Personnel Internal/OMS Oracle Oracle Database

NGWA Sewerage System

Sewerage Internal/OMS Oracle Oracle Database

Job Costing System

Maintenance System

Externally Developed by the RSS

Oracle Oracle Database

SCADA System is still under development in Karak governorate and is expected to be in operation in 2004-2005. GIS system is in production in most governorates and is maintained separately within each governorate.

JVA

Application Name Description Type Tools Status HRMS & Payroll Administration Internal

Development Oracle Not Used

Water Management Information System (WMIS)

Water Management

Internal Development

Oracle Production

Financial Accounting System

Financial System Oracle e-business Suite

Oracle Production


Application Name Description Type Tools Status Geographical Information System (GIS)

Packaged Application (ARC View)

Production

Objectives

This activity will critically review the IT systems already implemented or currently being implemented in Jordan’s water and wastewater sector. Based on an analysis of stakeholder reporting needs relative to the capabilities existing systems, the activity will prepare an IT Master Plan. The objective of the IT Master Plan is to ensure that optimal choices are made concerning the platform, application, configuration, and supporting technologies and resources to build commercially- oriented IT capability for Jordan’s water and wastewater sector.

At a minimum, an IT Master Plan:

Evaluates the reporting needs of sector stakeholders to establish clear goals for further IT implementation;

Sets appropriate standards for hardware, software, network and other communications infrastructure to provide “plug and play” functionality to ensure expandability in terms either of increased scope of existing applications, or implementation of new applications;

Analyzes and justifies the least cost networking and communications strategies providing maximum connectivity to sector stakeholders;

Analyzes strategic options for IT development in the sector (e.g., in- house systems development vs. integrated “best of breed” vs. enterprise resource planning (ERP) applications; or rapid vs. phased implementation) and justifies the optimum strategies; or outsourcings. Analyzes in-house IT functions;

Prioritizes new IT applications in benefit/cost terms and sets clear implementation targets to monitor and track implementation success;

Recommends software, hardware and human resource needs to support the plan’s implementation.

Recommends the preferred applications; and, Ensures the long term sustainability of sector–wide IT by planning for organizational

development and capacity building of IT functions and resources in the sector.

The IT Master Plan will clearly identify the priority IT applications and the integration within the sector. Experience of other developing country utilities suggests the maximum benefit/costs will likely come from improvements in:

MIS- especially in data warehousing and reporting tools (to the extent these are not already supported in the current Oracle implementation);

Metering technologies; Cost recovery; Billing, collection and customer relationship management systems; Regulatory and high level performance information management systems to support better

regulation and performance reporting; Human resource information systems (HRIS) to improve labor deployment and productivity

and manage skills upgrading; Network operations and asset management applications to minimize unaccounted for water;

and, Materials management applications to minimize inventory costs

These areas would be critically evaluated for potential “quick win” opportunities as well as for IT-


enabled re-engineering following systems selection.

Tasks Task 1: Assessment of The Current Systems and The Identification of Gaps

Inventory, map, review, assess and document to the degree necessary the existing/available IT systems in the water and wastewater sector that are possessed by MWI, WAJ and JVA, including LEMA, AWC and each governorate’s Water Authority.

Evaluate the extent of integration between these existing IT applications. Obtain a comprehensive understanding of the justifiable reporting needs. Determine the optimum current and future uses of IT human resources, hardware and systems

in fulfilling perceived operational, financial, and other business objectives of MWI, WAJ, JVA and other pertinent water establishments.

Identify the major “gaps” between current and planned IT functionality, and reporting and performance improvement needs to be addressed by new systems.

Identify the major performance improvement opportunities across the water and wastewater sector (production, conveyance, supply, groundwater monitoring, quality control and laboratories, etc).

Prioritize system applications and technology needs. Prioritize new systems using a high-level benefit/cost/risk business case basis, and identify

potential for small-scale pilot implementations to demonstrate “quick wins”. Task 2: Development of an IT Strategy to Support System Integration

Added after Mod. (2)) Establish a series of Working Groups, each with membership of 4-6 persons drawn from the Counterpart Committee and wider sector management as appropriate, to work with the Consultant to develop out the prioritized Master Plan components from Task 1 in more detail;

Facilitated by the Consultant, each Working Group would complete the data collection and analysis steps identified in Tasks 2 and 3 below to justify each component in terms of benefits, costs and risks, evaluate options to deliver each Master Plan component, recommend specific options, and develop high level budgets and implementation plans;

Understand the number of entities and sub-entities (e.g., Regional or Divisional Offices, Zones, Billing Centers etc.) to be covered;

Develop the conceptual design for the required communications and networking infrastructure-evaluating the cost of different communications options;

Establish appropriate hardware, software, communications and networking platform standards;

Specify system security, backup and disaster recovery standards; Develop and evaluate on a benefit/cost/risk basis the strategic options for implementing the

additional systems required (including the ASP model) and for integrating existing systems, and,

Review the IT organizations and skills levels across MWI, WAJ and JVA. Evaluate the IT “change readiness” of the entities and sub-entities where additional systems will be implemented and develop appropriate capacity-building plans.

Task 3: Selection of IT Applications

Carry out market surveys of available IT offerings that could help fill the identified gaps; Detail business cases for each target application; Develop high-level functional specifications for each application; Develop budgets for each application;


Identify the future costs and personnel required to support the selected applications and platform;

Task 4: Prepare IT Master Plan Implementation Budget and Work Plan

Develop an implementation budget for the Master Plan. Develop an implementation work plan, including tasks, timetable and personnel requirements

Remarks:

USAID/Jordan would not restrict the design contractor from being the implementing contractor.

Time Schedule

After adding the Working Group activity, it is anticipated that the in-country effort will be completed within a nine months period starting from the signing of the Task Order. All work under the Task Order shall be completed within eleven months from the award date (see attached new project schedule).

Deliverables/ Report/ Outputs Progress Reporting

Develop work plan with benchmarks and targets for the IT assessment activities, and establish reporting systems to document progress in relation to the benchmarks and targets.

Prepare and maintain project records, conduct implementation workshops to report progress and resolve problem areas. Submittals:

It is required that close and clear communications be maintained between the contractor, USAID/Jordan and MWI, WAJ, JVA throughout the project. The Contractors shall submit sufficient status reports to MWI, WAJ, JVA and USAID/ Jordan to keep them fully informed of the project.

The Contractor shall submit monthly progress reports to USAID/Jordan. The reports shall, at a minimum, include the following:

A brief discussion of current activities for each major element of the project. This shall include status of each task and activity, progress, status of coordinating work with MWI, WAJ, JVA, cash flow status, recommendations issued, and other activities pertinent to the problems.

Presentation of major problem areas, current or foreseen, and recommendations for resolving these problems

Anticipated activities for the coming month.

A status report on the contractor staff, including arrival and departure dates of U.S. personnel, employment and termination dates of Jordanian personnel, a summary of man days to date and projected for each major task.

Presentation of actual progress to date versus scheduled progress in graphic form, and where appropriate, discuss reasons for slippage from schedule and actions being taken toward recovery.

Such supporting information as required to provide a concise and comprehensive report.

Monthly status reports shall be due on the tenth working day of the following month. Five copies of each report shall be delivered to the USAID/Jordan COTR.

An implementation schedule for the Contractor’s activities shall be required.

Demobilization Plan

One month prior to the estimated completion date of the Task Order, the Contractor shall submit a draft demobilization plan to the USAID COTR and Contracting officer for review and approval. The demobilization plan shall have a realistic time frame with a detailed schedule breakdown by task or deliverables, demonstrating compliance with the Task Order terms and requirements. The Plan shall


have three components:

Equipment: The plan for transfer of custody should be directly tied to the work required under the Task Order. Note that no equipment procurement is anticipated under this Task Order.

Staff: Demobilization of staff must be tied to the Task Order work plan

Programmatic: This aspect of the demobilization plan tracks the deliverables to be provided under the Task Order, indicating when the deliverables will be completed or at what stage of completion they will be when staff departs post. This component must track closely with the work plan.

At the conclusion of Task Order activities, a final report shall be produced requiring USAID review and approval that includes a review and discussion of the planning, implementation and outcomes of the Task Order activities.

Submitted to USAID for approval thirty days after the completion of the IT Plan, the Final Report shall include the IT Plan and summarize all Task Order activities and assess the progress made in fulfilling the Task Order purpose and include the following information:

Expatriate personnel (by name and job title); arrival and departure dates; man weeks of service in the performance of the work.

Jordanian personnel (by name and job title) with inclusive dates of work on the project.

Actual submission and approval dates; comments

Problem areas in Task Order administration and suggestions for improvements

All sources of data, information interviews, etc., and a bibliography of reference works used in carrying out the project.

A draft report shall be submitted to USAID for review and comment prior to submittal of the final report.

Ten copies of the Contractor’s final report shall be submitted to USAID.

For USAID/Washington, the Contractor should submit the following:

For EGAT/EG: one hard copy of the final report and close out report by mail to: Mark H. Karns, CFA

Sr. Privatization Advisor Agency for International Development Bureau for Economic Growth, Agriculture and Trade EGAT/EG Suite 2.11.115 1300 Pennsylvania Ave. NW Washington, DC 20523 – 2110 Direct (202) 712 5516 Fax (202) 216 3025 Email [email protected] Web 212Hhttp://inside.usaid.gov/eg

And

Yoon Joo Lee, Ph D, Economist & CTO

USAID EGAT/EG, Room RRB-2.11-72 Washington, DC 20523 Tel:202-712-4281; Fax: 202-216-3010 EM: [email protected] For CDIE: one hard copy of the final report and one electronic copy on diskette to:


U.S Agency for International Development PPC/CDIE/DI, Attention: Acquisitions 1300 Pennsylvania Avenue, N.W. Ronald Regan Building M.01-010 Washington, D.C 20523

Monitoring & Evaluation

In cooperation and coordination with the MWI Project Manager and the USAID/Jordan Team Leader will perform monitoring of contractor’s performance. Evaluation of the contractor’s performance at the completion of each of the four phases will be documented in the Task Order file.


ANNEX 5 – PROPOSED HQIT ORGANIZATION DESIGN

The proposed design of the new HQIT organization is shown below:

The HQIT is led by a Center/Unit Manager acting as the “Chief Information Officer (CIO)” of the water sector. This individual is responsible for monitoring and assuring the continuous development of IT in the sector according to the ITMP which will be updated every 3 – 5 years. The Center/Unit Manager will work jointly with sector leadership to provide them with consolidated reports and information aggregated by the Executive Information System.

Directorates and their roles

The HQIT will consist of four Directorates with the roles and responsibilities described below. Note that a full Administration, Finance and HR Directorate would need to be added when the HQIT is corporatized: Business Application Directorate

Communicate specific business needs and detailed requirements to the PMO Section for project initiation and procurement.

Provide technical implementation services and ongoing configuration support for backbone systems

Develop and maintain in-house built applications as required to formal international best practice standards

Maintain up to date documentation and change records for all backbone and Headquarters Organizations applications

Ensure that applications are available on a 24x7 basis Provide training services for backbone systems and other developed applications Monitor research and development trends for utility based business applications Liaise with other Directorates and Operating Utilities on applications-related issues Implement the recommendations of the Security and Quality Assurance for applications

HQIT Manager

InfrastructureDirectorate

Security & QADirectorate

Business Applications Directorate

Strategic Planning& PMO

Directorate

Applications R&D Section

Head

Tech SupportSection Head

ImplementationSection Head


DeploymentSection Head

QASection Head

Info SecuritySection Head

PMOSection Head

Info MgmtSection Head

Strategic PlanningSection Head

GIS Systems & Integration

Section Head

HQIT Manager

InfrastructureDirectorate

Security & QADirectorate

Business Applications Directorate

Strategic Planning& PMO

Directorate

Applications R&D Section

Head


ImplementationSection Head


DeploymentSection Head

QASection Head

Info SecuritySection Head

PMOSection Head

Info MgmtSection Head

Strategic PlanningSection Head

GIS Systems & Integration

Section Head


Update the sector-wide intranet and web portal from an applications perspective Infrastructure Directorate

Upgrade and support the HQ LAN and WAN as per the ITMP Co-plan and design in cooperation with Operating Utilities WAN upgrades and extensions,

again guided by the ITMP Implement the recommendations of the Security and Quality Assurance for infrastructure Efficiently and effectively procure properly justified HQ hardware, operating system and

infrastructure needs Ensure that the Headquarters Organizations IT environment is fully available on a 24x7 basis Liaise with other Directorates and Operating Utilities on infrastructure-related issues Cooperate with Operating Utilities to design business continuity and fail-over strategies Maintain the sector-wide intranet and web portal from an infrastructure perspective Provide technical support for end-users

Security and QA

Review and recommend best practice standards and procedures for other HQIT Directorates such as ITIL and SDLCs

Review, adapt and implement best practices in information security (example: ISO 17799) Identify, manage and mitigate all IT risks within HQ Directorates Conduct internal audits for security compliance and provide recommendations to all

Directorates Cooperate with Operating Utilities to encourage their adoption of, and compliance with, risk

management, risk mitigation and information security policies – developed again to best practice standards

Provide quality assurance for all IT HQ related projects, applications, processes and deliverables

Strategic Planning and Program Management Office (PMO)

Develop Project Management Practice policies, procedures and forms Act as the Program Management Office planning, managing and monitoring the

implementation of all large IT projects Manage and monitor progress against 6-monthly updated HQIT work plans Manage annual zero-based budget development by all Sections Be responsible for ensuring that PMO standards are adopted on all projects and properly

communicated to operating entities Cooperate with Operating Utilities to ensure endorsement of PMO Consolidate sector-wide information and be responsible for providing CIO and EIS with

decision-making data and related information. Prepare tender documents and be responsible for procurement and negotiation of services,

products and other IT commodities. Perform technology watch services and provide sector-wide with analyst reports on latest

technologies and standards.

Composition of Sections within each Directorate

The suggested staffing composition of each section under the four Directorates is as follows: Business Application Directorate

Solutions/Applications Implementation Section – this Section hosts functional consultants and system analysts who possess broad experience of business needs and their systems support solutions.


These individuals will work with business users to develop detailed business requirements and software specifications. They will also provide on-the-job functional training and post-implementation functional support.

Solutions/Applications Technical Support Section – this Section provides Help Desk and technical support services for all solutions/applications implemented by MWI, JVA and WAJ. It hosts purely application technical personnel such as database administrators, application technical administrators, and technical solution architects. and other. It does not provide any infrastructure related administration.

Applications Research and Development Section – primarily hosting a development team who are either responsible for developing internal applications, system interfaces, or customizing best of breed application, this Section acts as a second level support to the Technical Support Section above. It has no interaction with end users. The Section is also responsible for monitoring technology developments in the applications/software domain for the water and utilities sector, and for providing feedback to the HQIT Center/Unit Manager to be communicated across other Operating Utilities.

Geographical Information Systems Section – based on the request of the ITMP Steering Committee, this Section has been created to host technical support staff for GIS. It acts as a custodian of GIS not as an owner (this resides with the specialist end-user community). It has the following specific mandates – providing technical support to business users and owners of GIS data, managing and organizing technology agreements with the Department of Lands and Survey, the Royal Jordanian Geographical Center (RJGC) etc., and developing and ensuring compliance sector-wide with GIS meta data and applications interfacing standards suitable for the Jordan Water Sector. Finally it will also act as the unified repository for sector-wide GIS data. Infrastructure Directorate

Deployment Section – this Section is responsible for developing hardware and infrastructure specifications and for working collaboratively with the Applications/Solutions Section for infrastructure provisioning. The team is responsible for rolling out infrastructure environments, ensuring that all operational aspects are monitored and that 24x7 service is guaranteed.

Technical Support Section – this Section provides Help Desk and technical support to end users on all issues related to hardware, operating systems, email and related collaboration and office applications and infrastructure. The Section does not provide other applications/solutions support except that it works jointly and collaboratively with the relevant Applications/Solutions Technical Support Section. Security and QA

Information Security Section – this Section handles all aspects of security monitoring, reporting, resolving and escalation of threats, vulnerability, intrusion…etc. They monitor the audit files and logs of applications and infrastructure components and report violations in a prompt manner. The Section also works with the various business units in authorizing users and granting access privileges.

Quality Assurance Section – this Section ensures compliance of all IT operations with a comprehensive QA process. It is an integral element in assuring data integrity. The role of the QA Section is to test applications, ensure that all IT policies and procedures are followed. It will also assure the quality of systems implementations, monitor acceptance tests, and assure realization of targeted business benefits. Strategic Planning and PMO

Information Management Section - consolidating and presenting information to decision-makers is the primarily responsibility of this Section. It also assumes the role of monitoring developments in IT worldwide, organizing and watching important related events, and coordinating with other Sections and Operating Utilities.

Program Management Office Section – this Section sets project management and implementation standards, participates in project meetings and is empowered to make sure that all projects are on


track. It escalates risks and issues as quickly as possible to the HQIT Center/Unit Manager for further action as necessary.

Strategic Planning Section – this Section is responsible for drafting contracts, operational policies and procedures, preparing RFPs and monitoring contracts and budgets. The Section is also the custodian of the sector-wide ITMP and ensures its periodic update. Additionally it manages and monitors the 6-monthly workplans of each section and oversees the annual budget preparation process ensuring its consistency with the ITMP.

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es:

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nd c

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not

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in p

rice

or v

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are

ass

umed

not

to b

egin

for 2

yea

rs3.

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efits

con

tinue

bey

ond

year

10

acco

rdin

g to

sys

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are

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ould

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ly a

sm

all P

V

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Lega

l Not

Pai

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For =

Assu

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rela

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% re

duct

ion

achi

eved

=


ANNEX 8 – GIS WORKING GROUP TORS

Information Technology Master Plan Program For the Ministry of Water & Irrigation – Jordan

Technical Working Group Sector Wide “Geographical Information System”

Scope of Work June 2006 Version 1.1 DRAFT


Table of Contents 213H1. INTRODUCTION..................................................................................................................... 461H144

214H2. COMMON OBJECTIVES....................................................................................................... 462H144

215H3. SPECIFIC WORKING GROUP OBJECTIVES................................................................... 463H144

216H4. TASKS AND APPROACH ...................................................................................................... 464H145

217H5. DELIVERABLES ..................................................................................................................... 465H146

218H6. TIME FRAME .......................................................................................................................... 466H146

219H7. COMMUNICATION AND MEETINGS................................................................................ 467H146


Introduction

Geographical/spatial Information is essential to the work of the different agencies comprising the Water Sector. In the full cycle of water exploitation, from the planning and management of water resources, to the extraction, transportation, storage, and purification of raw water, to the management and delivery of consumable water, and to the collection, transportation, treatment, and recycling of wastewater, there is an extensive need for reliable geographical information, supported with advanced spatially-based analysis functions, and seamlessly integrated with other types of information.

The water sector identified the potential benefits of Geographical Information Systems (GIS) over a decade ago. Over the years, many project-based and departmental GIS systems have developed all across the Sector. These systems varied in size, purpose, and achieved success and productivity, but all were limited to the needs, capacities, and perceptions of the concerned developing entities. This resulted in a large number of scattered and uncoordinated GIS arrangements spread all over the Sector. In WAJ, for example, independent GIS entities exist in the PMU, LEMA Company, NGWA, Aqaba Water Company, and several departments and directorates in WAJ-Central. In MWI, on the other hand, GIS is utilized as a tool by several end-users with inadequate collaboration and coordination.

The problems, deficiencies, and lost opportunities resulting from the situation described above have been widely recognized by the GIS community in the Sector, and have been discussed and described in several documents and venues. In addition, several initiatives have been taken to alleviate such problem by promoting the concepts of common standards, shared policies, and collaboration among GIS users but none have yet succeeded unequivocally.

The IT Master Plan has seen the need to establish a GIS Working Group, with the following main objectives:

• To review, consolidate, rejuvenate and build on previous initiatives in this regard • To integrate GIS with the overall IT Master Plan and the findings of the eight Working

Groups, especially where integration of GIS with other information systems is required (e.g., Asset and Maintenance Management, Customer Information and Billing Systems, Lands Management etc..)

• To develop a GIS road map for the Water Sector for establishing a Sector-wide GIS clearinghouse that meets the needs of the widest spectrum of GIS users in the Sector, whether in technical planning functions or in operations and maintenance

The Working Group shall consist of six people from MWI, WAJ (including its operating sub-entities) and JVA. This group will be headed by EE from the SC and KK from the IT Master Plan Project.

Common Objectives

This Working Group is formed to work under a continuation of the IT Master Plan project, funded by USAID, but yet to be defined and contracted. Following the goals of that original project, the objectives of this TOR are ultimately to:

• enable significant performance improvement across the Jordanian water and wastewater sector

• improve policy-making • support effective sector regulation

Specific Working Group Objectives

This Group has to work with the GIS community in MWI, WAJ, JVA, PMU, LEMA, NGWA and/or AWC to understand their current GIS activities and existing resources as well as


future needs.

The group also needs to be aware of the developments introduced by National GIS Strategy, and ensure that the Sector GIS road map is in agreement with this Strategy.

Accordingly, the Group needs to work on achieving the following specific objectives:

I. Review, build on, and consolidate the outcomes of previous activities in this regard, which include reports issued by the PMU GIS Department, the documentation of the April 2005 workshop, the finding of the four GIS task force groups, and the latest GIS Needs Assessment Report that was conducted by the external Consultant under the support of GTZ.

II. Assimilate the recommendations of the IT Master Plan and identify areas of integration/interaction between GIS and other information systems (including AM-MM, CIS/Billing, Lands, LIMS).

III. Identify and review, though literature review and other research current best practices in GIS utilization in water utilities and water planning authorities, and determine if and how these best practices could be applied to the Jordanian water sector.

IV. Develop a detailed GIS road map for the Jordan water sector, that should result finally in both a sector-wide GIS clearinghouse and a clear Vision for a fully-GIS enabled and leveraged water sector, by addressing the following aspects:

a. Identify existing and potential users of the envisaged GIS Clearinghouse

b. Define all ‘framework’ GIS data sets necessary for the Clearinghouse, including assessment of their current availability, status, and source (both internal and external), based on the recent inventory of existing GIS data sets

c. Define GIS standards to be implemented (data models, data dictionaries, metadata, coordinate systems, application integration standards and GIS middleware tools, …), including assessment of their current implementation status as appropriate

d. Propose an organizational structure for a unified GIS ‘overseeing’ entity (including how it should relate to the envisaged unified IT Org as well as to decentralized entities such as LEMA and NGWA), with a clear mandate and well-defined list of responsibilities

e. Identify areas where expansion of GIS implementation is needed

f. Specify the technical requirements for building the Clearinghouse including software, hardware, networking, internet/intranet, …etc

g. Develop a GIS information policy plan that would govern the propagation of GIS information both within the Sector and with external agencies

Tasks and Approach

To be fully defined once full agreement on the objectives above is reached – however the tasks required are likely to include some or all of the following:

• Review of documentation on existing GIS initiatives and future plans by all entities involved

• Interviews with sector leaders and thinkers involved in developing or using GIS the outputs of current GIS initiatives

• Inventorying of existing GIS initiatives, equipment, standards etc. where data is not already available

• Secondary research into GIS best practices as implemented to support both planning and operations in water utilities and planning and oversight bodies worldwide


• Identification of “Jordanization” priorities or needs that might cause these best practice standards to need to be adapted

• Development of a business case that captures and / or estimates both the tangible and intangible benefits that could be realized by effectively leveraging GIS in the sector, and a plan for how this could be used to direct and prioritize GIS budget allocations and donor support in the sector

• Synthesis of the above into an action plan, budget and timeline for implementing both the GIS Clearinghouse and the Vision for a fully GIS-enabled and leveraged water sector

Deliverables

The group should be able to provide the following deliverables:

1. An inventory of existing GIS implementations and resources in the Sector (human, IT and data resources)

2. GIS information needs and requirements: individual entities, the sector a whole, and the National GIS Strategy

3. Roadmap to implementation for both the GIS Clearinghouse and the Vision for a fully-GIS enabled and leveraged water sector

4. Final Report and Presentation

Time Frame

To be determined, but not less than six months (it is important to time bound the activities of the Group, and to ensure their adequate release from normal duties to complete this TOR)

Communication and Meetings

To be determined

Thinking Lines

Below is a list of questions that may help in this exercise, they are provided as guideline and the group need to add to or enhance.

• What are the top issues facing the GIS community in the Sector today due to lack of a holistic approach in implementing GIS?

• What aspects in implementing GIS should be handled by the envisaged unified IT Org and what should be the responsibility of the unified GIS ‘overseeing’ entity?

• Understand the interdependency with external agencies concerning GIS data and services

• What is the current and planned (within the IT Master Plan) IT infrastructure? How it should be tailored to suit the proposed GIS implementation

• How should the relationship be defined with decentralized entities such as utilities in other governorates?

• What are the GIS ‘framework’ layers needed for the Clearinghouse? N.B. ‘Framework’ GIS layers are usually characterized by the following:

1. Mostly used to geographically reference other GIS layers (e.g., administrative boundaries, localities, roads, land lots, ..)

2. Are needed by a majority of GIS users

3. Mostly have nation-wide coverage (not local)

• Cost / budget issues.


• What is needed to make a shift in attitude from ‘My data ..’ to ‘Sector data ..’?

• Are efforts needed to raise awareness in the Sector on:

1. The importance and potential of GIS?

2. The need for the GIS project, and its incorporation into the IT Master Plan?

• What type of relationships are needed between GIS and other information systems (integration / interfacing / data exchange)? What are other system that would benefit from assigning a geographical/mapping dimension to their information sets and applications?

• How can GIS best contribute to better sector planning and operational performance improvement?

Jord

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tor –

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14

8 Fi

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Q2

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2010

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Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

14

9 Fi

nal R

epor

t to U

SAID

– V

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datio

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proc

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ith th

e X7 r

ollou

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/Billi

ng (in

cludin

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proc

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ork)

is as

sume

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rnall

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ded

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e Leg

al sy

stem

is de

velop

ed en

tirely

inter

nally

with

in the

Coll

abor

ation

suite

, so n

o exte

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fundin

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ed.

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rastr

uctur

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t esti

mates

inclu

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NGW

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rmal

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oces

s

Jord

an W

ater

Sec

tor –

IT M

aste

r Plan

15

0 Fi

nal R

epor

t to U

SAID

– V

olum

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men

datio

ns A

ugus

t 200

6

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ging

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kets

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p, L

td.

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NEX

11

– O

VER

ALL

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USI

NES

S C

ASE

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roug

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me

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ITS

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enef

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at s

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erre

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rs)

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tal P

V of

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osts

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Estim

ated

NPV

of t

he IT

MP

7.13


ANNEX 12 – GTZ TENTATIVE IM HANDBOOK LAYOUT

# Chapter Responsible A Background and Purpose SCWS B General Information Management Rules and Regulations B.1 Data Management Roles and Responsibilities SCWS B.2 Intellectual Property and Copyright SCWS B.3 Data Classification and Use SCWS B.4 Public Communication Strategy SCWS B.5 Electronic Filing SCWS B.6 Data Sharing with External Users SCWS B.7 Individual Computer Use Rules IT Master Plan C IT Operations C.1 Information Resources IT Master Plan C.2 Risk Assessment and Treatment IT Master Plan C.3 IT Security IT Master Plan C.4 Data Access Control IT Master Plan C.5 Communications and Operations Management IT Master Plan C.6 Information Systems Acquisition, Development and Planning IT Master Plan C.7 Software Development IT Master Plan D Internet Use D.1 Internet Use Regulations SCWS D.2 Web Site Publication Standards IT Master Plan E Executive Information System IT Master Plan F Water Related Information Systems F.1 Water Sector Information SCWS F.2 Water Management Information System (WMIS) JVA F.3 Bulk Meter Flow Operation (BMFO) System SCWS F.4 Laboratory Information Management System WAJ Labs F.5 Water Information System (WIS) SCWS G Back Office Information Systems G.1 Financial Accounting System (FAS) IT Master Plan G.2 Human Resources Management IT Master Plan G.3 Payroll IT Master Plan G.4 Projects IT Master Plan G.5 Budget IT Master Plan G.6 Legal IT Master Plan G.7 Lands IT Master Plan G.8 Geographic Information System IT Master Plan H Asset Management IT Master Plan I Supply Chain IT Master Plan


# Chapter Responsible J CIS / Billing System IT Master Plan

The IM Handbook chapters are not final. They are only the starting point of a continuous process. The IM Handbook shall be implemented as a web document on the MWI intranet. SWSC may start the implementation activities. Whenever the ITMP project is operational it should continue the endeavour.

Documents

JORDAN WATER SECTOR – IT MASTER PLAN ITMP - VOLUME I.pdf · 2010-04-19 · JORDAN WATER SECTOR – IT MASTER PLAN FINAL REPORT TO USAID – AUGUST 2006 VOLUME I – RECOMMENDATIONS