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Local Government Services Enabling Service Delivery August 2011

EOH Local Government Services

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Overview of EOH Local Government Services. How we see the challenges facing local government in South Africa, and how we can assist.

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Page 1: EOH Local Government Services

Local Government Services Enabling Service Delivery

August 2011

Page 2: EOH Local Government Services

• Leader in Technology and Business Solutions

• Largest implementer of ERP solutions

• Widest range of applications

• One of Top 4 IT service providers in SA

• End-to-end offering

• Strong Black Economic Empowerment profile

• Operates in Africa (South Africa, Botswana, Kenya,

Nigeria) and UK

• Listed on JSE since 1998

• 1700 + staff, > 2200 customers

EOH at a glance

Key Findings: The South African IT services market is dominated by local players (Dimension Data, GijimaAst, Business Connexion and Enterprise Outsourcing Holdings [EOH]) which increased their combined market share by 1.4% to nearly 27% in 2009.

Gartner: Market Share Analysis: IT Services Rankings,

Middle East and Africa, 2009

EOH provides specialised consulting, technology and outsourcing services to the following industries: Financial Services Mining Manufacturing Industry Public Sector, Telecommunications, Retail Industry

The EOH Vision To be the best technology and business solutions company to

work for, partner with and invest in

Page 3: EOH Local Government Services

• Leader in Technology and Business Solutions

• Largest implementer of ERP solutions

• Widest range of applications

• One of Top 4 IT service providers in SA

• End-to-end offering

• Strong Black Economic Empowerment profile

• Operates in Africa (South Africa, Botswana, Kenya,

Nigeria) and UK

• Listed on JSE since 1998

• 1700 + staff, > 2200 customers

EOH at a glance

Key Findings: The South African IT services market is dominated by local players (Dimension Data, GijimaAst, Business Connexion and Enterprise Outsourcing Holdings [EOH]) which increased their combined market share by 1.4% to nearly 27% in 2009.

Gartner: Market Share Analysis: IT Services Rankings,

Middle East and Africa, 2009

EOH provides specialised consulting, technology and outsourcing services to the following industries: Financial Services Mining Manufacturing Industry Public Sector, Telecommunications, Retail Industry

The EOH Vision To be the best technology and business solutions company to

work for, partner with and invest in

Page 5: EOH Local Government Services

Key Message

• Local government is critical to service delivery in South Africa

• However, Local Government is failing • ICT is a great tool assist in turning this around • However ICT on its own will not do this – need an

integrated municipal turnaround strategy – strategy, people, process, technology

• Need to do things radically different – more of the same will not work.

• EOH Local Government Services has tremendous experience and skill in the municipal space. – Offers new perspectives and innovative approaches – Operates across strategy, people, process & technology – Should be YOUR partner in helping you enable service delivery

Page 6: EOH Local Government Services

Service delivery protests!!!

One of the most pressing challenges facing South Africa is the need to strengthen local government.

• Local government is key to the service delivery strategy of the government as it is the sphere of government with deals with the implementation of national and provincial policies, in a way that is tangible to people “on the ground”. It is the sphere of government where the “rubber hits the road”.

• Although the lives of many South Africans have improved since 1994, major challenges still lie ahead.

• Part of these challenges is that many municipalities, which are central to the implementation of government policies, still do not have the necessary capacity to implement government programmes and ensure that there is sustainable delivery of basic services - even when resources are available

Page 7: EOH Local Government Services

• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)

• Lack of communication with communities

• Corruption and Nepotism

• Financial mismanagement and Maladministration

• Outstanding debt payments for municipal services

• Lack of capacity – poor project planning, poor management and/or under-spending by municipalities

• Government officials who spend time focusing on their personal business interests at the expense of service delivery.

• Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.

• Poverty and unemployment

Causes include

A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA.

Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009

So, the key question is: Can ICT be used to help government deal with these issues?

Page 8: EOH Local Government Services

Outstanding debt payments for municipal services

• Improved visibility and transparency of information on the new invoice, the ability for citizens to pay their accounts at any municipal pay point and the implementation of a call center to address billing queries.

• Revenue Services performed significant data alignment duties in converting data to SAP.

• Revenue enhancement interventions have received priority attention.

Calculation:

• 1% increase in the payment ration = R6 mil per month.

• ROI option: 90 % payment ratio was used as the baseline for this ROI study and only 11% of financial value of the increase above baseline has been used. = R224.6 mil.

• 100% option: Instead of allocating only 11% - if 100% allocation over 90% base is to be used the financial value would be = R794 mil.

How was the benefit realised?

12 Month Moving Average -Payment Ratio

82.00%84.00%86.00%88.00%90.00%92.00%94.00%96.00%98.00%

100.00%

Jul-0

3A

ug-0

3S

ep-0

3O

ct-0

3N

ov-0

3D

ec-0

3Ja

n-04

Feb-

04M

ar-0

4A

pr-0

4M

ay-0

4Ju

n-04

Jul-0

4A

ug-0

4S

ep-0

4O

ct-0

4N

ov-0

4D

ec-0

4Ja

n-05

Feb-

05M

ar-0

5A

pr-0

5

Payment RatioROI Baseline

Source: City of Cape Town

Page 9: EOH Local Government Services

Cash Position - City of Cape TownJune 2002 to July 2006

0

500

1,000

1,500

2,000

2,500

Jun-

02

Dec

-02

Jun-

03

Dec

-03

Jun-

04

Dec

-04

Jun-

05

Dec

-05

Jun-

06

R '0

00 0

00

Budget Actual Cash Position

Go-live

Planned loan of R300 mil not taken up

Financial mismanagement and Maladministration

Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04.

Source: City of Cape Town

Page 10: EOH Local Government Services

Lack of Capacity

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000 Inv Value per Day

Sum of Inv Value

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

No Txns per Day

Sum of No Txns

Average Daily Value R744,201

Average Daily No. of Transactions 1140

Andre Stelzner, Director: IS&T, City of CT “Another interesting area has been the automation of fuel payments through e-fuel system and interface into SAP. Through this we pay approximately R750 000 per day for fuel to the respective suppliers without any human intervention......

......What makes things even better is that the price is checked against contract pricing and payment is optimised to ensure that we only pay on due date. In the past we had the fuel supply cut to the city due to late payment, now nobody worries about it.”

Source: City of Cape Town

Page 11: EOH Local Government Services

Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)

If all Services / Works Request follow the same process it becomes easy to Record, Initiate action and track progress across the diversity of services government is responsible for: This can also be spatially enabled

Page 12: EOH Local Government Services

Creating Citizen Value creates Citizen Loyalty.

Lack of communication with communities

• Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via

Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect

reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels

including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online

Page 13: EOH Local Government Services

Creating Citizen Value creates Citizen Loyalty.

Lack of communication with communities

• Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via

Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect

reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels

including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online

Page 14: EOH Local Government Services

Government officials who spend time focusing on their personal business interests at the expense of service delivery.

Page 15: EOH Local Government Services

Help deal with poverty and unemployment

• Large disparity in the socio-economic status of citizens. Systems assist with – Identifying citizens which can – but don’t pay; versus – Citizens which do not have the means to pay. – Support the vulnerable members of society.

• Examples of social responsible Policies and Tariff- structures enable via the ERP Program: – Free Basic Utility Services. – Grants for the Indigent – Debt relief through arrangements and incentives

• Other ICT initatives – Public Internet facilities– reducing the digital divide and

empowering communities – Digital Business Centres – assisting small businesses – Learnerships, volunteerism and skills development

Page 16: EOH Local Government Services

Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises

service delivery.

Page 17: EOH Local Government Services

Implementing effective ICT in the Public Sector can help deal with

• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)

• Lack of communication with communities

• Corruption and Nepotism

• Financial mismanagement and Maladministration

• Outstanding debt payments for municipal services

• Lack of capacity – poor project planning, poor management and/or under-spending by municipalities

• Government officials who spend time focusing on their personal business interests at the expense of service delivery.

• Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.

• Poverty and unemployment A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA.

Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009

People

Strategy

Process

Tech

Page 18: EOH Local Government Services

The Conditions & Challenges impacting Local Government Today

• Ensure that municipalities meet the basic service needs of communities • Build clean, effective, efficient, responsive and accountable local

government • Improve performance and professionalism in municipalities • Improve national and provincial policy, oversight and support • Strengthen partnerships between local government, communities and civil

society

Utilise ICT to restore the confidence of the majority of citizens in the municipalities, as the primary expression of the developmental state at a local level • Pre-configured solutions that can be implemented rapidly • Simplified IT solutions, Shorter time-to-value • Innovative commercial model with scalability options • Centralized and/or on-site services allowing quicker implementations

• Service Delivery Excellence • Improved Customer Service and Convenience • Greater Transparency on decision making and administrative issues • Increased participation

Challenge

Opportunity

Citizen Benefits

Loca

l Gov

ernm

ent

Fact

ors

Page 19: EOH Local Government Services

EOH offers preconfigured solutions with fixed-scope implementation services, flexible commercial

options and scalability for future extension

Immediate value to Local Government with fast deployable solutions

Built-in benefit justifying investment

Easy to deploy ‘Building-block’ implementation approach

End-to-end processes delivering process integration and operational efficiency

EOH Solutions for Local Government

Page 20: EOH Local Government Services

• Streamlined processes • Increased

accountability at all levels

• Move to zero Audit Qualifications

• Budget spend according to plan

• Service Delivery Excellence

Value

Efficiency

EOH Municipal Solutions for Local Government

Implementation Costs

Infrastructure Aquisition

Customer Value

SLA

EOH Value Proposition

€ 17.4 Bn

Typical Implementation Project s today…

Implementation Costs

Infrastructure Aquisition

Customer Value

Proj

ect

Life

cycl

e

Post

-im

plem

enta

tion

SLA

Page 21: EOH Local Government Services

EOH Municipal Solution

The EOH Enablement Approach

EOH Centre of Excellence

Page 22: EOH Local Government Services

Municipality Process Enabled by EOH Property Management Value Chain

Valuations GIS Deeds Planning

Building Control

Register Transfer Maps Street Addresses

Valuation Roll Land Use

Revenue Management Value Chain Loss

Managmt Invoicing & Collections Revenue Planning

Admin Customer

Base

Measure Usage

Financial / Technical

Loss

Manage Revenue Targets

Billing Collect Revenues

Credit Management

Develop Tariffs

Citizen Relationship

Management Value Chain

CRM

Acquire Customer

Deliver Services

Customer Care

Page 23: EOH Local Government Services

Property Management Value Chain

Integrated Solution

Property Management Value Chain Valuations GIS Deeds Planning

Building Control

Register Transfer Maps Street Addresses

Valuation Roll Land Use

Page 24: EOH Local Government Services

Revenue Management Value Chain

Process Definition KPI

Manage Revenue Targets

Set targets/quotas for billing revenue and forecasting product usage in line with a designed sales plan and business unit revenue and surplus attainment objectives. It also includes the use of analytical tools to improve the accuracy of revenue projections and to track revenue and to ensure that it is effectively managed.

• Revenue Actual vs. Target (Rands) • % achievement of target billings

Develop Targets

Setting of tariff policies, applicable tariffs/rates to be charged and the controlling and monitoring of the application thereof and to ensure that it is effectively managed.

• Adherence to government inflation objectives.

• Adherence to City's objectives • % achievement of revenue targets • Publication of tariffs on time

Revenue Management Value Chain Loss

Managmt Financial / Technical

Loss

Invoicing & Collections

Admin Customer

Base

Measure Usage

Billing Collect Revenues

Credit Management

Revenue Planning

Manage Revenue Targets

Develop Tariffs

Page 25: EOH Local Government Services

Revenue Management Value Chain (cont.)

Process Definition KPI

Admin Customer Base

Maintenance of the customer accounts including opening, changes to and closure s. This includes updating on billing data such as on meter installations, repairs, replacements and maintenance inspections.

• Turnaround time for updated customer data • % Accurate customer data

Measure Product Usage

Determining of consumption on products in order to accurately bill customers

• % of accurate meter readings per cycle • Cycle time to finalise readings • Cycle time to complete out-of-cycle

readings

Billing Ensure that services rendered are effective, accurate and billed on time. This also includes the timely delivery of the bills to the consumers by various means.

• % Bills prepared and printed on time % Bills delivered on time

• Cycle time to have Bills ready for delivery

Revenue Management Value Chain Loss

Managmt Financial / Technical

Loss

Invoicing & Collections

Admin Customer

Base

Measure Usage

Billing Collect Revenues

Credit Management

Revenue Planning

Manage Revenue Targets

Develop Tariffs

Page 26: EOH Local Government Services

Revenue Management Value Chain (cont.)

Process Definition KPI

Collect Revenues

Ensure effectively management by making sure that all that for all services billed, the revenues collected are on time and in full.

• % of Amount billed Received

Credit Management

The management of credit monitoring and control, legal recovery and cut-off processes.

• No. of days outstanding • % of overdue amounts recovered. • % of overdue accounts on which services

are terminated

Revenue Management Value Chain Loss

Managmt Financial / Technical

Loss

Invoicing & Collections

Admin Customer

Base

Measure Usage

Billing Collect Revenues

Credit Management

Revenue Planning

Manage Revenue Targets

Develop Tariffs

Page 27: EOH Local Government Services

Revenue Management Value Chain (cont.)

Process Definition KPI

Financial / Technical Loss

The identification, evaluation and the management of financial and technical losses.

• Value of losses identified • % correction on identified losses

Revenue Management Value Chain Loss

Managmt Financial / Technical

Loss

Invoicing & Collections

Admin Customer

Base

Measure Usage

Billing Collect Revenues

Credit Management

Revenue Planning

Manage Revenue Targets

Develop Tariffs

Page 28: EOH Local Government Services

Process Definition KPI

Acquire Customer

Establishing and providing a strategic framework for accepting, managing and delivering the service interaction between the City and its citizens.

• Status of Audit reports • Channel Utilisation • Customer satisfaction • Customer awareness pertaining to the city’s

available interactive channels

Deliver Services

Accepting, executing and monitoring information requests, new service requests and complaints made by citizens, businesses and visitors related to City offerings.

• % First call resolution (FCR) • % Staff declared competent • Waiting time / queue time • Ageing analysis for all logged "tickets" • % Dropped calls • Average handle time • Hours spent per 100 interactions • Fault lifecycle • Call Centre utilisation per FTE • Average speed of answer • % Of customer interactions self serviced • Channel usage ratio

Citizen Relationship Management Value Chain Citizen Relationship

Management Value Chain

CRM

Acquire Customer

Deliver Services

Customer Care

Page 29: EOH Local Government Services

Process Definition KPI

Customer Care

In order to enhance service delivery, focus needs to be placed on Customer Care in order to further improve the customer experience. Managing customer relationships by means of our ability to identify customers, segment customers in order to develop services and manage customers and obtain feedback and monitor feedback.

• % First call resolution (FCR) • % Staff declared competent • Waiting time / queue time (all channels specified

independently) • Ageing analysis for all logged "tickets" • % Dropped calls • Average handle time • Hours spent per 100 interactions • Fault lifecycle • Call Centre utilisation per FTE • Average speed of answer • % Of customer interactions self serviced • Channel usage ratio • Customer Survey results

CRM Value Chain (cont.) Citizen Relationship

Management Value Chain

CRM

Acquire Customer

Deliver Services

Customer Care

Page 30: EOH Local Government Services

Mobile Solution Overview

Call routed to municipality (department)

MIS reports updated

Citizen Log via USSD

Server

Central Control

Municipality District Pothole Identified

Page 31: EOH Local Government Services

EOH MOBILE MUNICIPAL SOLUTION

*120*494*12345# Advantages:

Works with ALL phones (not only smartphones) Do not need data bundles

Cheaper than sms

TRY THIS!!!

Page 32: EOH Local Government Services

• Partnership with SAFIPA (South Africa - Finland knowledge partnership on ICT) & EOH

• Key emphasis on improving the effectiveness of local government by utilising a people, process and systems approach – good, solid, repeatable processes enabled by a system executed by trained people.

• To deliver a package (toolbox) comprising of a systems architecture, process maps, implementation methodology and templates that will be used by municipalities to improve their service delivery.

• Tightly integrated to EOH Municipal systems platform consisting of Operational systems (for day to day running of the municipality), Business Intelligence systems (to enhance information visibility and decision making) , performance management systems (increased accountability) and an e-Government platform to enhance citizen participation and oversight

• Hosted by EOH Local Government Services

EOH Municipality in a Box E-Government platform Available free to South African Municipalities!!!

Co

un

cil o

ffic

ials

an

d p

olit

icia

ns

Cit

ize

ns

and

co

mm

un

itie

s

E-Government Platform •Supply Chain Management/ e-tendering •Council Secretariat (including Agenda Management and Council Meeting Management) •Document Management •Knowledge Management and Knowledge Repository (legislation, reports, etc.) •Municipal Incident reporting and management system •Etc.

Tightly integrated with EOH Municipal Solution

Or

Integrate with existing

back-end transactional

systems

Page 33: EOH Local Government Services

Predefined Municipal Solutions Offering

Page 34: EOH Local Government Services

EOH Value Proposition

EOH commitment to

Local government success

Right 1st Time culture Customer Enablement

Via EOH Academy Quality Management

Local Govt Value Skilled Expertise

Knowledge Transfer Proven Practices

Subject Matter Expertise Actionable Recommendations

Process Optimization Business Support Enablement

Page 35: EOH Local Government Services

EOH

EOH VALUE OFFERING Provides business relevant content

Fully understands Local Government operating model and processes

Shared commitment to service delivery

Collaboration platform

Business Requirements

Solution Matching

LOCAL GOVERNMENT

MUNICIPALITY OBJECTIVES Ensure that municipalities meet the basic service needs of

communities Build clean, effective, efficient, responsive and accountable local

government Improve performance and accountability

Use local resources to drive revenue – attract industry / tourism

Run municipality as a business

Knowledge transfer thru’ EOH Academy

EOH Centre of Excellence Enablement Approach

Proven practices

Page 36: EOH Local Government Services

Legacy Integration

What makes the EOH difference? Integrated approach to deliver a complete end-to-end solution

Flexibility

Price

Hardware

Software / Data

Implementation services

Delivery Concept

SOLUTION OFFERING FEATURES

predefined solution options

optionally at customer site or hosted

deployment package by EOH

Customer relevant pre-configured business processes delivered on building block principle for quick time to value and predictable costs while retaining flexibility

can be included

flexible pricing options

included

Page 37: EOH Local Government Services

reduced implementation costs and time allows for easy and quick extension of the solution landscape along new business requirements

simplify complex system landscapes adopting integrated solutions

Preconfigure & Predefined

Ease of Use

designed to start small addressing the immediate issues while allowing for later growth along increasing business requirements

Scalable Implementation

access to support personnel either on-site and/or through the EOH Centre of Excellence

Support

A dedicated consulting arm that understands the Local Government Domain with a proven track record

Local Government knowledge

Page 38: EOH Local Government Services

The service offering includes preconfigured software and fixed-scope implementation services at a predictable price. It also combines the ability to address your service delivery requirements with the flexibility to accommodate future growth. This service offering can lower your cost and risk of solution implementation and accelerate your time to value.

Summary of EOH Value Proposition

SUMMARIZED VALUE PROPOSITION

Preconfigured software addressing Local Government priorities with end-to-end processes

Preconfigured software

A templatised methodology of delivering defined results within predictable costs and time of implementation

Predefined service

Leverage pre-configured municipal specific content.

Rapid Deployment

Diagnostics (Grand Plans/Route Maps) Implementation through BPI of Legislation/ Policies

Public Sector Consulting

Page 39: EOH Local Government Services

Key Message

• Local government is critical to service delivery in South Africa

• However, Local Government is failing • ICT is a great tool assist in turning this around • However ICT on its own will not do this – need an

integrated municipal turnaround strategy – strategy, people, process, technology

• Need to do things radically different – more of the same will not work.

• EOH Local Government Services has tremendous experience and skill in the municipal space. – Offers new perspectives and innovative approaches – Operates across strategy, people, process & technology – Should be YOUR partner in helping you enable service delivery

Page 40: EOH Local Government Services

www.EOH.co.za Nirvesh Sooful Enoch Makhubo [email protected] [email protected] +27 84 909 9284 +27 72 907 6342

Wayne Noble Lucky Mondlani [email protected] [email protected] +27 72 510 4668 +27 82 570 4691

Discussion/ Comments

FIND OUT MORE

BENEFITS STATEMENT

Integrated solution improving time-to-value, reducing Total Cost of Integration (TCI) and increasing ease-of-implementation by combining Local Government Expertise, preconfigured solution and flexible implementation services

Innovative and scalable delivery model offering additional benefits in deployment