1. S t a t e I n f o r m a t i o n T e c h n o l o g y A g e n c y Information Brief To the Joint Standing Committee On Defence 15 June 2007 Defence Peter Pedlar Acting CEO Tau Mashigo Head: Business Performance Femke Pienaar Head: Client Business Units Cisco van Schaik GM: DOD business Unit Web:www.sita.co.zawww.sita.co.za

2. 2 2 Agenda 1. SITA Mandate & Services 3. SITA transformation 5. SITA / DOD Relations 7. DEIS Master Plan 2. SITA Financials 6. DOD ICT Spend / Budget 4. SITA Strategic Objectives

3. 3 3 SITA MANDATE & SERVICES

4. 4 4 Mandate and Funding  SITA is an enacted company that derives its mandate from –  SITA Act 88/1998 as amended 2002.  SITA Act 88/1998: General Regulation NR 904, DPSA, Sept 2005.  Objective  To improve service delivery to the public and to promote the efficiency of departments and public bodies through the use of ICT and related services in a secure environment.  Funding Model  SITA Pty (Ltd) is a Schedule 3a Public Company.  Financially self sustaining through Products and Services.

5. 5 5 Government IT House of Values Security Interoperability Reduced Duplication Economies of Scale BEE Enablement Lower Cost Increased Productivity Citizen Convenience Government Architecture

6. 6 6 Services to Government Transversal Systems Standards & Certification IS Convergence Strategy Disaster Recovery Strategy IS Inventory ICT Research … and related Services as per BA (e.g Consult, Train, Support) Transversal Infrastructure Acquire ICT Solutions

7. 7 7 SITA FINANCIALS

8. 8 8 Consolidated Statement of Financial Performance

9. 9 9 Revenue per Business Unit (06/07) Central Region 119,160,399 Coastal Region 651,140,081 Northern Region 429,354,617 National Departments 1,056,991,765 SAPS 539,157,035 DOD 539,923,992

10. 10 SITA TRANSFORMATION

11. 11 SITA Transformation  Reasons for Transformation  SITA Image, Customer Perception, Employee Morale  Transformation – A Journey not a Destination  Approach  Arrest & Normalise The Situation  Rationalise For Optimum Performance  Strategic Imperatives  Radically improve service delivery to the Citizens;  Prioritise Citizen-centric projects;  Drive to the best demonstrated practice in people management and leadership;  Overhaul internal and external communication to improve transparency, visibility and image;  Build an appropriate organisation structure and team to achieve strategic objectives;  Maintain financial sustainability.

12. 12 Performance to Date  Service  CSIFY04/5 (47%)FY06/7 (62%)  Procurement  Tender Days FY04/5 (242)FY06/07 (76)  Finance  RevenueFY05/6 (R2.9Bn)FY06/7[P] (R3.3Bn)  PBTFY05/6 (3.9%)FY06/7 [P](6%) GovTech  Public Sector ICT Conference  Thought Leadership

13. 13 Transformation status  Procurement Services  SPPP updated, tender-award authority restored to Accounting Officers/DG’s; incorporates SCM procedures & processes as per NT Regulations.  Management Structure reconstituted & cleaned up; built-in tender-results review mechanism – no proven corruption case, fewer complaints.  Tender turnaround times reduced from over 240 to 76 days.  Significant cost reductions for government realized – 40% reduction on some SMS equipment.  Share of BEE procurement revenue up to 60%.  Corporate Governance  Continuous efforts made to adhere to PFMA regulations in all mgt spheres with strong Board oversight.  Initial lapses in mgt responses to audit queries attended to.  Corporate governance made a performance assessment factor.

14. 14 SITA Structure SECRETARIATGROUP AUDIT CEO OFFICE RISK Management STRATEGY REPORTS

15. 15 SITA Employment Equity  Notes:  Overall the Company performed well with regards to the achievement towards the set Employment Equity targets in the first year (06/07), however with the commencement of the 2nd year (07/08), Management must make rational decisions when appointments are made in the future.  When analysing the progress made to date with regards to the attainment of the set Employment Equity targets on each occupational job level, there are, however, still concerns that the Company is lagging behind with regards to race representation on specialist and lower management job levels, as well as gender (Female) on advanced specialist and senior management job levels. To this end the Company will implement the integrated employment equity strategy which will address these areas of concern.  The overall IT skills shortage in the market, combined with a very high demand for EE candidates, will remain a serious constraint in the short and medium term.

16. 16 DOD Business Unit EE Statistics  Notes:  The DOD’s Unique application portfolio requires embedded DOD knowledge critical for resources that are difficult to source. The ring fenced Infrastructure (Network & Data centers), current lagging technology baseline also serves as a constraint to attract resources  The overall IT skills shortage in the market, combined with a very high demand for EE candidates, will remain a serious constraint in the short and medium term.

17. 17 STRATEGIC OBJECTIVES

18. 18 Strategic Focus  Reposition for Public Sector ICT Leadership  Accelerate the Implementation of e-Government.  Provide Thought Leadership.  Develop Appropriate Partnerships and Alliances.  Manage Operations  Radically Improve Customer Experience of SITA.  Focus on Operational Efficiency and Effectiveness.

19. 19 Trends and Drivers  Communication Convergence  Service Oriented Architecture  eGovernment Maturity  Identity Management  Open Source Movement  Strategic Out Tasking  Consolidation and Partnerships

20. 20 Initiatives  Destination to Success - Change Management  Service Improvement Programme  e-Government Revitalisation  Municipality Blueprint  Integrated Financial Management System  New Generation Network Platform  OSS Project Management Office  Industry Wide Skills Development

21. 21 The Future SITA  Integrated Solution & Service Delivery (Client Centric)  Skills Development  Black Economic Empowerment  Intellectual Property  Strategic Partnering  Facilitate Government-wide Architecture

22. 22 Future Role of SITA 2010 SITA’s total involvement Execution activities Influence activities (Standards, Certification & Architecture) Management activities 2006 2008 Manage Execute Influence Outsourced entities requires a different mix (DOD, SAPS, etc) as per BA’s Alienable / Inalienable defined Services Defence

23. 23 DOD / SITA Relations

24. 24 SITA / DOD RELATIONS Strategic Alignment 1999 – SITA Creation Buss Agreement Incorp Agreement Amendment Act SITA Regulations SITA Transf 2010 Operating Model / Struct IFMS CMIS D Convergence Sec Def & C SANDF Armscor Role Defense Review update DOD Strat Guidelines Technology Convergence, Net Centric Warfare Other Dept’s, GITOC, Industry Silver Bullets STRATEGIC SYNERGY Defence

25. 25 SITA / DOD Regulatory Bodies Functional Level Business Management Level Executive Forums Requirements Solutions Exco, Divcom CBU Forums DEIS Board SITA / DOD Board SLA CCB IS Planning Forum SLA Management CMIS Ops Forum Steercoms Serv Del Forums Defence

26. 26 SITA / DOD Engagement Model Industry SITA GITO & CMIS GITO “SD” D ICT “Acquire” GOC Sup “Sustain” Serv & Div ArmySAAFSANMEDHROpsLogFin... Service Agreements Business Agreement, Business Model & Service Level Agreements Contracts Service Level Agreement Series (21 SLA’s in total) SLA 1SLA 2SLA 3,4 Defence

27. 27 Relationship summary  Formal engagement channels that are duly constituted.  Strong contract management (SLA)  Excellent financial controls and payment record (debtor)  Strategic partner/relationship  Embedded knowledge of DOD IT business.  Quality Embedded System approach (ISO9000 Certified)  SITA’s 2 nd largest client. Defence

28. 28 DOD ICT Expenditure (SITA) Defence

29. 29 DOD SLA Values 2007/08 Defence

30. 30 DOD – Some statistics  Approximately 500 (120 major) Information Systems (excluding embedded C2 information systems)…  used by over 720 organisations …  supporting over 30 000 “business” & “military” users …  in Land, Maritime, Air & Information operations …  that are deployed nationally & internationally. Defence

31. 31 DOD Application Portfolio* Integrated Military Health e-Learning Procurement HR Recruitment Computer Aided Manufacturing Finance Admin Resource Sustainment HR Sustainment Resource Supply HR Supply Language Translation HR Service Terminating Resource Disposal Crime Administration Defence Management Applications Integrated Intelligence, Planning, Tasking and Control Common Applications Messaging, Document Management, Office Automation 4125623 8361814141 1 28113 633 95 80 12 * Current Information Systems in use in the DOD Defence

32. 32 DOD Project Portfolio (07/08) EnvironmentProject BudgetNo of Projects HRR 3.7m4 FINR 3.3m2 LOGR 20.32 HealthR 9.4m6 Corporate and UniqueR 19.2m6 InfrastructureR 30m16 ArchitectureR 7m2 TotalsR 92.9m40 Defence

33. 33 SITA DOD Business Unit DOD CBU Cisco van Schaik General Manager TRANSVERSE APPLICATION SERVICES Mariette van Wyk Senior Manager CORP & UNIQUE APPLICATION SERVICES Monwabise Matyolo Senior Manager INFRASTRUCTURE SERVICES Danny Singh Senior Manager ENTERPRISE IS PLANNING & SUPPORT Wouter van der Merwe Senior Manager INFORMATION MANAGEMENT SERVICES Bala Subroyen Senior Manager CLIENT SERVICES Piet van Staden Senior Manager Defence

34. 34 DEFENCE ENTERPRISE INFORMATION SYSTEM MASTER PLAN (DEIS MP) Defence

35. 35 Defence Enterprise Information System Master Plan (DEIS MP)  The purpose of the DEIS Master Plan is to provide an integrated ICS Departmental view and a realistic single execution mechanism of all ICS&S initiatives, programmes, projects and requirements, in terms of both the investment and maintenance portfolios. Defence

36. 36 ARMY, NAVY, SAAF, SAMHS, LOG, FIN, HR, etc Defence Enterprise Architecture Shared Non-Shared Infrastructure Applications Core Common IS / ICT Defence Enterprise Information Systems Plan Log, Fin, Pers, (IFMS) & Corp Network & Data Centres (static) Defence

37. 37 Business Drivers for the DEIS Master Plan BUSINESS DEIS SDDEIS MP Transformation of Business Objective into ICS solutions DOD Information Strategy BUSINESS DRIVERS Defence Enterprise Architecture Defence Management Applications Defence Functional Applications Defence Common Applications Defence Information and Communication Infrastructure Defence Data/information Resources ICS Enablement of Info Req Business Converted into Info Req DEIS Framework ICS Business drives ICS design drivers Defence

38. 38 Fragmented Paradigm CMIS Tels CMIS IT IW Service-unique ITService-Unique Tels Diverse State Initiatives Integrated ICS Departmental View Integrated State-wide Initiatives Integrated ICS for DOD Business : Converged Tels & IT ICS enabling All Capability Portfolios Weapon System Embedded ICS Information Documentation Services Resolving The Primary Problem Defence  SITA & ARMSCOR as primary enablers

39. 39 Application Software & Data projects  Defence Management Applications  Command and Control Apps: 5  Planning & Control (Defence Admin) Apps: 51  Military Intelligence Apps: 7  Business Intelligence Apps: 28  Functional Applications  Resource Management Apps: 47  E-Learning Apps: 17  Military Health Apps: 8  Organisational Design Apps: 4  Support Apps: 7  Common Applications  Messaging Apps: 23  Electronic Content Management Apps: 44  Data projects: 23  Defence Management Applications  Command and Control Apps: 5  Planning & Control (Defence Admin) Apps: 51  Military Intelligence Apps: 7  Business Intelligence Apps: 28  Functional Applications  Resource Management Apps: 47  E-Learning Apps: 17  Military Health Apps: 8  Organisational Design Apps: 4  Support Apps: 7  Common Applications  Messaging Apps: 23  Electronic Content Management Apps: 44  Data projects: 23 Defence

40. 40 Infrastructure Projects  Telecommunications: 87  Computing Platforms, Peripheral and Sensors: 27  Database Management: 6  System Collaboration Services: 3  Application Delivery Services and Portal: 20  Info and Comms Security System: 17  Infrastructure Element Management: 13  Telecommunications: 87  Computing Platforms, Peripheral and Sensors: 27  Database Management: 6  System Collaboration Services: 3  Application Delivery Services and Portal: 20  Info and Comms Security System: 17  Infrastructure Element Management: 13 Defence

41. 41 Defence

42. 42 Funding Requirement for DEIS MP NOTE: This excludes Item 10 Funds Defence

43. 43 Benefits of DEIS MP  Integrated ICS Departmental view and a realistic single execution mechanism of all Information and Communication Systems  Funding will be managed corporately  Mission critical capabilities of the DOD have adequate ICS support and enablers  Mission-critical information for decision making is available  Compliance to the DOD Regulatory Framework and National Legislation  Secure Information and Communication Systems Defence

44. 44 Conclusions (DEIS MP)  Priorities are determined by the DOD as guided by the DEIS Master Plan  All acquisition and partnerships will follow the transparent procurement processes.  This event is the start of a long process, pursuing a cooperative engagement of 4 parties (DOD, SITA, Armscor, Industry). Defence

45. 45 Thank You Q & A “A man who does not think and plan long ahead will find trouble right at his door.” - Confucius Defence Peter Pedlar Acting CEO Cel no 083 450 6596 (012) 482 3321 Tau Mashigo Head: Business Performance Femke Pienaar Head: Client Business Units Cisco van Schaik GM: DOD business Unit Web:www.sita.co.zawww.sita.co.za