1. INTEGRATED FINANCIAL MANAGEMENT SYSTEM (IFMS 2) PROGRAMME Presentation by DPSA, National Treasury and SITA to the Portfolio Committee on Public Service and Administration/Planning, Monitoring and Evaluation May 2018

2. OVERVIEW OF THE PRESENTATION
Introduction/Background:
What is the IFMS?
Roles and responsibilities of the three main stakeholders
High level historical overview of the Programme since inception
Piloting of the IFMS
IFMS Programme Implementation Approach
IFMS Programme Status
IFMS Programme Governance
IFMS Programme Funding Model
IFMS Programme Dependencies
SITA readiness to support the IFMS Programme

3. WHAT IS IFMS?
The IFMS Programme, as mandated by Cabinet, is a joint initiative between National Treasury, DPSA and SITA to modernize the management and execution of “back-office” processes in the Public Service (excluding Public Entities, Local Government, Legislatures and Intelligence Agencies) in the following domains:
Financial Management (FIN)
Human Resource Management (HRM)
Payroll Management (PAY)
Supply Chain Management (SCM)
Business Intelligence for these domains (BI)

4. WHY IFMS?
Business improvements
To facilitate ongoing financial, supply chain and human resource management improvements and reforms.
To improve service delivery by standardizing and automating Public Service business processes.
To process and compile data in ways that improve availability of quality information for planning, reporting and better decision making.
To utilize new features that modern technology presents such as employee self service.
To take advantage of global lessons learned in the management of public resources.
Technology modernisation
To replace ageing technology (legacy systems).
To avoid increasing costs of maintaining obsolete transversal legacy systems.

5. KEY PROGRAMME STAKEHOLDERS
National Treasury
Project Sponsor
Policy Ownership
Financial Management (FIN)(including elements of payroll management)
Supply Chain Management (SCM)
Accounting Standards
Manage Corporate Reference Data for SCM, FIN
Manage transversal legacy systems
DPSA
Policy Ownership
Human Resource Management (HRM)(including elements of payroll management)
Manage Corporate Reference Data for HRM
SITA
Execution of SITA’s mandatory services e.g.
Hosting service; and
Technical maintenance and support over the system life cycle through the establishment of a Centre of Excellence
Provide Technical advisory services
Business Intelligence

6. HIGH LEVEL HISTORICAL OVERVIEW OF THE IFMS PROGRAMME
2002
Budget Council approval to develop strategy to renew financial systems
2004
URS and
MSP developed
2007
Cabinet informed of challenges and amended plans; acquisition/ development of modules commenced
2006
Rescheduling of project plan due to institutional and project challenges experienced
2005
Cabinet approved IFMS with hybrid solution architecture (combination of COTS and bespoke modules); Moratorium on acquisition of IFMS type systems
Requirements Specifications URS
Master Systems Plan MSP
Commercial off the shelf COTS

7. HIGH LEVEL HISTORICAL OVERVIEW OF THE IFMS PROGRAMME
2010
Implemented at 4 pilot sites in Limpopo
Asset Management & HRM modules
2011
Implementation at 1 pilot site NT
Procurement & Catalogue Management modules
2012
Development of Inventory module and BI phase I (Vulindlela replacement) began
2013
Development of FIN module began
External reviews on IFMS commissioned
On Integration:
Partial integration with legacy systems: HRM module with PERSAL module and Procurement Management module (PMM) with BAS
Limited integration between IFMS modules

8. HIGH LEVEL HISTORICAL OVERVIEW OF THE IFMS PROGRAMME
2013
Cabinet approval to change IFMS solution architecture from hybrid approach
2014
Establishment of PMO commenced
RFP 1282 (software) published 28 Nov 2014
2018
Finalize Envision phase
Procure implementation services
Commence with pilot site implementations
Initiate and establish an IFMS Centre of Excellence
Revised approach
2016 & 17
Conclude software agreement with OSM
Develop implementation strategy
Commenced with Envision phase (architecture design and planning)
Engagements with pilot and lead sites
2015
RFP 1282 closed on 30 January 2015, bids evaluated, preferred OSM identified.
Commence engagements with OSM
Business process mapping exercise

9. ORIGINAL IFMS 1 VS. REVISED SOLUTION ARCHITECTURE

10. Piloting of IFMS

11. IFMS PILOT/LEAD SITES (IFMS 1)
Piloting of IFMS 1 (Hybrid solution architecture)
The following departments were selected as lead (pilot) sites for the various IFMS 1 solutions:
HRM: DPSA and Free State Department of Education
Procurement Management Module: National Treasury and Department of Defence
Catalogue Management in National Treasury
Asset Management: Four departments in the Limpopo Provincial Administration
One of the implications of the 2013 Cabinet decision on the revised IFMS solution architecture was that the further development and roll-out of IFMS 1 solutions would be terminated.
Where these solutions were implemented, it would be maintained should the relevant departments decide to continue using it.
Implementations in Free State Education and Defence were in progress but as a result of the Cabinet decision, these implementations were not completed.
SITA has scaled down its support and maintenance capacity for IFMS 1 solutions in anticipation of the implementation of IFMS 2.
DPSA and National Treasury continued to utilize the IFMS 1 solutions - to be phased out as soon as the IFMS 2 has been implemented.
IFMS 1 HRM solution in DPSA has not been available since February 2018 due to technical challenges – currently a process is on-going to either restore the solution or formally terminate it.

12. IFMS PILOT/LEAD SITES (IFMS 2)
Pilot and Lead sites for IFMS 2 (Single COTS ERP solution)
Discussions are currently on-going to finalize the identification of the pilot sites. National Treasury and DPSA are regarded as potentially suitable pilot sites for the following reasons:
Key stakeholders in the IFMS Programme – NT also the Programme Sponsor
Policy owners for Financial Management, Supply Chain Management and Human Resource Management Modules
Current users of IFMS 1 solutions that should be phased out as soon as possible
Relatively small, well resourced departments
Once the pilot site implementations have been completed, the solution will be further refined in provincial lead sites. Currently a number of departments in the Eastern and Western Cape Provincial Administrations have been identified as lead sites.

13. IMPLEMENTATION APPROACH
AND
TIMEFRAMES

14. IFMS 2 STRATEGIC ROADMAP
Phase 1
OSM
Licences
Phase 2 A
Architecture Planning
Phase 2 B
Pilot Site
Planned
NT &
DPSA
Phase 2 C
Pilot Site
Planned
WC & EC
Phase 3
National Roll out
2017
Mid 2018
Mid 2019
2030 National Rollout Completed
July 2018 -
June 2019
IFMS modules
Fin
HRM
PAY
SCM BI

15. IFMS 2 PROGRAMME IMPLEMENTATION APPROACH
The following detail describes the phases and sub-phases in more detail:
3.1 Phase 1: Software agreement
Completed with contractual agreement with Oracle (software only). 
3.2 Phase 2: Focuses on the development of the Generic Template (GT) that will be used for implementation and roll-out (Pilot Sites & Lead Sites). Three sub-phases agreed:
2A: Design and Template Development ( Planned to take 7 months, November 2017 – June 2018)
Planning, scope, objectives & approach
Procurement of implementation services and hosting infrastructure
Develop generic solution baseline - GT0
Policy owners and assigned business representatives to participate in GT0 design phases to be as inclusive as possible
Phase 2B - Pilot Site Implementation, ( Planned to take 12 months, July 2018 – June 2019)
Implement and Refinement of GT0 at Pilot Sites (Planned DPSA & NT) into GT1
Establish the Centre of Excellence (CoE)
Phase 2C - Lead Site Implementation, (Planned to take 18 months, September 2019 – February 2021)
Refinement of GT1 into GT2 at Lead Sites (Planned Eastern Cape and Western Cape).

16. IFMS 2 PROGRAMME IMPLEMENTATION APPROACH (CONT.)
3.3 Phase 3: National Roll-out (To commence in April 2021)
Long-term planning for Phase 3 is still not quantified, dependent on strategy and resourcing.
Standard departments will implement GT2, additional requirements to be considered through a formal change process.
GT2 will be expanded for the differentiated departments’ legislative requirements (e.g. DOD, SAPS, Education and Health), culminating in GT3.
GT3 locked down and formal change management process in place.
The implementation and hosting approach for the differentiated departments to be clarified.

17. IFMS 2 PROGRAMME STATUS

18. IFMS 2 PROGRAMME PROGRESS TO DATE

19. IFMS 2 DASHBOARD PROGRESS REPORT

20. PHASE 2A & 2B : PLANNED IFMS2 PROGRAMME ACTIVITIES
Finalise the IFMS Programme Business Case
Obtain approval of the IFMS Programme Business Strategy
Finalise Architecture Blueprint, Operating Model and relevant domain strategies i.e. Data Migration, Testing, Application Extension, System Operation and Training.
IFMS Programme Stakeholder Analysis and Engagement Plan for Pilot sites
Execute activities pertaining to the establish phase of the Centre of Excellence
Budget needs and projections (MTEF)
Finalise the IFMS costing and funding model
Evaluate Procurement model for Implementation (National Roll-out) i.e. (SI vs Multiple SIs and/ or PPP, BBBEE) etc.
Panel of Oracle Accredited Service Providers will be brought on board through SITA Transversal Term contract
Capacitation of the NT IFMS Unit and the Programme Management Office
Finalise the MoUs with pilot and lead sites

21. IFMS 2 PROGRAMME GOVERNANCE

22. IFMS 2 PROGRAMME GOVERNANCE
The IFMS Programme is managed using the Prince2 Methodology.
The system implementation will be executed using the Oracle Unified Methodology.
The Organisational Change Management will be executed following an approach and methodology principally influenced by the internationally recognised Prosci methodology, along with its ADKAR change model.
A Memorandum of Understanding (MOU) will be put in place between the Programme Stakeholders and implementation site(s) indicating the roles and responsibilities of each party including budgetary responsibilities.
The Programme is governed through formal governance structures and mechanisms.

23. PROGRAMME GOVERNANCE STRUCTURE
IFMS Programme Committee
Enterprise Architecture
(Design Authority/Architecture Board)
IFMS PMO
Security
Ministerial Oversight
Cabinet
Strategic/ Leading
IFMS Steering Committee
Audit Committees
Risk Committee
COE/ Quality Management
IFMS-1 (Hybrid)
(Support and Maintenance Advisory Board)
Legacy Systems (BAS, Persal, Logis)
Tactical/ Directing
Operational/ Managing and Delivery
Training
Technology
Business
Operations KM

24. The diagram below depicts the work-streams within the IFMS Programme and their scope of work.

25. IFMS PROGRAMME FUNDING MODEL

26. IFMS PROGRAMME FUNDING MODEL
National Treasury will be responsible for funding the acquisition and implementation of the solution including the initial funding of hosting services as well as user change management services.
The implementation site, might be responsible for funding some costs including:
upgrading and/ or providing user access devices,
network infrastructure,
data (gathering and cleansing) and;
logistical arrangements for user change management relating to printing and training facilities.
SITA will be responsible for the establishment and operation of the Centre of Excellence, providing hosting services of the solution and also for providing functional application support and maintenance after the solution has been implemented.

27. IFMS Programme Dependencies

28. IFMS2 PROGRAMME DEPENDENCIES
The success of the IFMS Programme is hugely dependent on the following:
Adequate co-operation and buy-in from all stakeholders;
IFMS Programme being fully capacitated with tools, processes and resources;
Approval of the IFMS costing and funding model;
Adequate resources and capacity at SITA for infrastructure design, specification, implementation, assurance and support;
Complete architecture to be available in time to inform appropriate solution design specifications;
Accurate migration of data from legacy systems.

29. Integrated Financial Management System (IFMS) Programme SITA Readiness to support to the IFMS Programme

30. Context of the IFMS Service Delivery Model

31. “As is” Programme and Project Governance Environment

32. “As is” Architecture and Design Environment

33. “As is” Implementation & Support Services Environment

34. “As is” Implementation & Support Services Environment (cont.)

35. “As is” Implementation & Support Services Environment (cont.)

36. CoE Education/Learning Required Capabilities

37. CoE HR Capacitation Approach
Build
Capacitate inside (utilisation of government learning credits)
Re-skilling previous IFMS 1 resources
Traditional Recruitment
(Utilisation of Internship and Learnership programme.
Buy
Partnership with the OEM (Current Contracting Model)
Borrow from Market (Utilisation of skills from SMMEs)

38. Summary of Government Learning Credit utilisation

39. Detailed HR Capacitation Plan
For the detailed Coe HR Capacitation Plan for the IFMS CoE Establishment refer to the attached Annexure (File name: Oracle SITA Training Capacity Plan)

40. THANK YOU