© SITA 2002 – 1 SITA : Client interface update Joint Portfolio committee presentation 25 June, 2003

© SITA 2002 – 2 Overview SITA  Structure  Operating Model  Impact measurement  Mid-term strategy Client Interface : strategic objectives Customer base Highlights & performance (2002/3) Customer experience  challenges  risks Conclusion: critical success factors

© SITA 2002 – 3 “ “ Holdings Civilian E- services CLIENT INTERFACE SITA : structure Defence CUSTOMERS ( ALL TIERS OF GOVT)

© SITA 2002 – 4 SITA Strategic Ambition To become a leading and respected public sector IT company that is: Delivering value for money Delivering relevant products and services cost effectively An advanced user of IT and An employer of Choice Degree of Commercialisation High Low Degree of strategic focus 3 Years ‘As-Is’ 2002/03 SITA’s Leadership Agenda 100 % transversal business ITAC predictive and budget driver for Government IT Certification and authentication of services and products STRATEGIC DIRECTION – STRATEGIC AMBITION 1 SITA: Consolidate IT Company. Defining the mid-term strategic ambition and leadership agenda Organization migration : subsidiaries Operating model consolidation High

© SITA 2002 – 5 Operating Model Meeting and exceeding client expectations every time Client Interface Quality, delivered and sustainable service delivery management Service Delivery Desired mix of experience and new blood “Leadership from the core “ Human Capital Free cash flow and Value for Money Finance Proactive risk management and institutional capability Risk & Audit Corporate Impact of implementing SM best practices

© SITA 2002 – 6 Measuring impact of operating model……………. 1.Contracting formally 2.Delivering to the promise 3.Coordinating internal resources Client Interface Forum 1.Exceed expectations 2.Benchmark of service 3.Quality and standards management Service Delivery Forum 1.Skills and Competencies 2.Recruitment 3.Performance Management 4.Training and Development 5.LRA and Admin Human Capital Forum 1.Cost Containment 2.Revenue enhancement 3.Free cash flow Finance Forum 1.Identification of Risk 2.Audit and Record KEEP 3.Risk Management Risk & Audit Forum Corporate Impact of implementing SM best practices

© SITA 2002 – 7 Client Interface : Strategic focus Contracting formally Debt management Integrated business approach Customer satisfaction Delivering On promise

© SITA 2002 – 8 SITA : customer base National Department and other organs of State Clients Provincial Government Clients Local Government Clients GOVT CLUSTERS CRIME PREVENTION & IJS INVESTMENT ECONOMIC SOCIAL INTERNATION AL GOVERNANCE & ADMIN. SAPS GAUTENG W CAPE E CAPE N CAPE FREE STATE LIMPOPO MPUMALANGA KZN N WEST 6 METROs DISTRICT AUTHORITIES LOCAL AUTHORITIES

© SITA 2002 – 9 HIGHLIGHTS Progress on client coverage Improved client/SITA interaction –Executive visibility Good recovery on account payables –Historical debts –Improved >60 days position Potential revenue streams : new initiatives –Seat Management Services/ GCCN Contracting formally : improvement (80-85% signed SLAs) Targeted account review sessions : initiated –Co-wide participation Client/SITA work sessions : initiated Revised account planning – customer input Client interface : Highlights

© SITA 2002 – 10 Budgets /Targets by national clusters CLUSTERR/book Budget 02/03 SITA targets 02/03 Achieved 02/03 R/book Budget 03/04 SITA Targets 03/04 Crime Prevention & IJS Investment Economic Social Governance & Admin TBD83 International SAPS

© SITA 2002 – 11 CHALLENGES Establish “ value add’ solution selling methodology and process Delivering on the promise –Entrench service management approach Review products and services packaging –Relevance to market –Delivering on demand Comprehensive Marketing and communications Plan Re-engineer internal processes Challenges

© SITA 2002 – 12 CHALLENGES Revenue growth –Business predictability –Tools & processes Procurement process – refinement Enforcing high performance culture –CI team integration –Performance management –Requisite resource retention Consolidating client/SITA relationship –Client leadership/exec level intervention –Entrench integrated business approach on engagement Challenges….

© SITA 2002 – 13 Risks Revenue erosion –Impact of SITA Act Industry invasion –SITA competency/capability gap Irrelevant costly technologies –Solution fit –Compatibility with IT House of values –Compliance with standards –Competitive pricing from industry Service delivery disconnect SITA Mandate non-achievement –Non delivery –Absence of thought leadership Debt inflation Skills loss

© SITA 2002 – 14 Client Interface Critical success factors Strategic partnering with government clients  achieve IT house of values Consolidate understanding of customer insight Solutions offerings : relevance and customer requirements fit Procurement process : flexibility and alignment Managed engagement process : Formal Client Satisfaction Surveys & feedback Formal contracting :BA and SLAs Mutual trust & support

© SITA 2002 – 15 Thank You…………