Strategic Plan (2015/19)
and
Annual Performance Plan (2016/17)
Presentation to Portfolio Committee on
Telecommunications and Postal Services
7 April 2016
Contents
•
•
•
•
•
•
•
Introduction
Strategic overview
Strategic priorities
Strategic initiatives
Strategic programmes and goals
Strategic objectives, indictors and targets
Financials
2
Introduction
•
The development of the Strategic Plan and Annual Performance Plan (APP) was a
process which involved a detailed analysis of the internal and external environment.
This was coupled with multiple planning workshops with all relevant stakeholders.
•
The Strategic Plan and APP are aligned to the NDP, MTSF, SoNA and budget vote.
•
The plans were approved by the SITA BOARD and further submitted to the Executive
Authority (DTPS) for considerations and approval. Feedback from DTPS has been
effected where applicable.
•
The Strategic Plan & APP comprises of 6 Strategic Goals supported by 13 Strategic
Objectives and 25 Annual Targets for 2016/17 financial year.
•
The APP further unpacks the 25 annual targets into quarterly targets. The targets
are implemented across 6 strategic programmes.
3
Strategic Overview
•
SITA continues to deliver on e-Government in alignment with the MTSF outcomes. The
Agency will work in partnership with its customers to design and build integrated eGovernment services.
•
The Agency will implement a number key initiatives in response to the legislative
requirements, security gaps identified within the public ICT systems, Internal and
External ICT Security Reviews, support for the DTPS Cyber Security mandate and also
contribute to the South African e-Skills programme by focusing on building cyber skills.
•
SITA has designed a comprehensive approach to implementing its procurement mandate
in order to realise the intended economies of scale by government, improve efficiency,
turnaround times and customer satisfaction while curbing fraud and corruption in its
practices.
•
SITA will also strengthen its collaboration with the office of the National Treasury Chief
Procurement Officer and proactively work on enhancing the current tender portal to
create an enabling environment for automating of its procurement processes across
Government.
4
Strategic Overview
•
The Agency has strategically planned to modernise its infrastructure with advanced technology
capability by upgrading its current central data centre and will modernise all SITA owned Data
Centres and also create Disaster Recovery centre capabilities to ensure business continuity .
•
Modernising the technology landscape within the data centres will results in a capability allowing
SITA to effectively implement, provide and support systems currently used by government. This
modernisation will further enable government to consolidate their current data centre ICT
investments through centralisation and implementation of broadband capability.
•
The Agency will develop and implement a customer relationship management strategy and a new
customer centric engagement model. The key thrust of the strategy is the placement of customer
challenges, fears and unsatisfied desires as a primary area of focus. This emphasis being informed
by the understanding that comprehension of customer needs define new market opportunities,
drive innovation and ultimately growth.
•
SITA will continue to build on its business development strategies for growth, harnessing more
value and achieving a larger share of the current approved ICT spend. The organisation has
reviewed its financial statements to present a rather sombre but realistic financial plan that is free
of material errors, practical in terms of its ability to execute on and that presents a fair picture of
the state of the organization.
•
SITA continues to place emphasis on culture and climate, accountability, coordination and control,
capabilities and motivation in the drive to create a high-performance organisation.
5
Strategic Priorities
The figure below provides a summary description of the strategic priorities
The strategic priorities have not changed, implementation still continues as per
the MTSF targets
6
Strategic Initiatives
The figure below depicts the 23 strategic initiatives across 4 key categories
1 Implement contract tracking & management
system
8 Consolidate & modernise data
centres
2 Implement new approach to technical
specifications
9 Upgrade bandwidth & network
10 Design and implement security
system
3 Launch new procurement process
4 Establish contract model
5 Launch On-line Buying
E-Gov &
IT Service
Portfolio
Procurement
6 Introduce new organisation model
A
7 Revise SITA’s procurement policies
19 Integrate and automate finance
and procurement process
20 Develop and implement new
customer engagement model
21 Recruit top talent to SITA
22 PMO Strategy Institutionalization
23 Financial Sustainability
D
Business
Enablers
12 Build internal capabilities
B
13 Design and implement retained
organisation (contract external
assistance)
C
▪ Create a customer centric
14
organisation (include stakeholder)
SITA
18 Create transparency on cost
11 New IT Service Delivery Model,
System Integration & e-GOV
Organisational Health
15
▪ Reward and recognise exceptional
performance
▪ Implement HPO across
16
organisation
▪ Empower SITAzens to fully
17
leverage their capabilities
The strategic initiatives have been revised to include an initiative on financial
sustainability
7
Strategic Programmes
and Goals
The table below provides the 6 strategic programmes and related goals
Strategic programme
Programme 1: Service
Delivery
Programme 2:
Infrastructure
Programme 3:
Procurement
Goals
Goal 1: To provide high-quality IT services to enable
Government to deliver efficient and convenient services
through the use of ICT
Goal 2: To optimise the provision of SITA’s IT infrastructure
services in order increase availability, flexibility, scalability,
predictability and security
Goal 3: To address all issues relating to delayed procurement
turnaround times, removing customer pain points, and
transforming the procurement function
Programme 4: Financial
Sustainability
Goal 4: To ensure an effective and efficient financial
management and ensure financial growth and sustainability
Programme 5:
Organisation
Goal 5: To build and maintain organisational capability to
enable SITA to achieve its strategic imperatives and becomes
an employer of choice within the ICT industry
Programme 6: Governance
and Administration
Goal 6: To provide leadership, strategic management,
governance, risk and resource management in line with
government-accepted norms and standards
8
Strategic Objectives, Indicators
and Annual Targets(2016/17)
Strategic
Programmes
Programme 1:
Service Delivery
Strategic
Objectives
Performance
Indicators
Annual Targets
Enhance efficiency of
Government
business processes
# of e-Government
services implemented
20 e- services
implemented
Improve Security of
Government Data
assets
Level of maturity of ICT
security
Implementation of the
following
security controls:
•
Endpoint protection
•
Threat Management
% compliance of SITA
National Key Points
(NKP) with National Key
Points Act with South
African Police Services
(SAPS) evaluation
>90% compliance of
SITA NKP with SAPS
evaluation
% compliance to
personnel security
clearance requirements
>90% compliance to
personnel security
clearance requirements
9
Strategic Objectives, Indicators
and Annual Targets (2016/17)
Strategic
Programmes
Strategic
Objectives
Transform SITA into
customer centric
organisation
Programme 1:
Service Delivery
Achieve growth in
government market
share
Performance
Indicators
Annual Targets
Customer satisfaction
level
60% customer
satisfaction level
% performance against
measured contracted
SLA metrics
95% performance
against measured
contracted SLA metrics
% increase in
government market
share
10% increase in
government market
share (increase on
2014/2015
% retention of services
provided to customer
90% retention of
services provided to
customer
10
Strategic Objectives, Indicators
and Annual Targets (2016/17)
Strategic
Programmes
Programme 2:
Infrastructure
Strategic Objectives
Performance Indicators
Consolidate and
modernize data
centers
#of data centres
modernized
# of storage and server
infrastructure refreshed
Improvement of ICT
Infrastructure:
Disaster Recovery
(DR)
# of disaster recovery
sites established
Annual Targets
3 SITA owned data
centres stabilized to
99.749% availability
electrically and
mechanically
Infrastructure and
modernisation plan
developed and approved
by Board
2 disaster recovery sites
established
11
Strategic Objectives, Indicators
and Annual Targets(2016/17)
Strategic
Programmes
Strategic Objectives
Improve procurement
operational efficiency
(to enable service
delivery)
Programme 3:
Procurement
Performance Indicators
Annual Targets
% of tender awards
completed within the
targeted turnaround time
65% of tender awards
completed within the
targeted turnaround time
Development and roll-out
of the Government eProcurement portal
Implementation and rollout of Government
Transversal eProcurement portal at SITA
and National Treasury in
the OCPO
Drive ICT cost
effectiveness through
economies of scale
% Actual savings on
acquisition of ICT goods
and services with major
OEM’s / OSM
10% actual savings on
acquisition of ICT goods
and services with major
OEMs / OSM
Drive ICT Economic
Transformation agenda
% of ICT acquisition spend
through SMME entities
10% of ICT acquisition
spend through SMME
entities
Number of SMME entities
completed SITA Enterprise
Development (ED)
programs
10 SMME entities
completed SITA ED
programs
12
Strategic Objectives, Indicators
and Annual Targets (2016/17)
Strategic
Programmes
Programme 4:
Financial
Sustainability
Strategic
Programme
Programme 5:
Organisation
Strategic
Objectives
Achieve Sound
Financial
Management
Strategic
Objectives
Build a Healthy &
High Performing
Organisation
Performance
Indicators
% EBIT
Annual Targets
2% EBIT
Liquidity Ratio
1.2:1
% Gross Margin
20% Gross Margin
% expenditure against
approved Capex budget
90% expenditure
against approved Capex
budget
Performance
Indicators
% Improvement on HPO
baseline and HPO
institutionalisation
Annual Targets
Drive & implement 80%
of the 13 HPO
Dimensions as per the
HPO improvement plan
% of critical positions
20% of critical positions
with minimum cover ratio with minimum cover
of 1:2
ratio of 1:2
13
Strategic Objectives, Indicators
and Annual Targets(2016/17)
Strategic
Programmes
Strategic
Objectives
Establish effective
governance practice
Programme 6:
Governance and
Administration
Proactive approach to
procurement
compliance including
fraud & corruption
Performance
Indicators
Annual Targets
# of Material Auditor
General findings on
finances, predetermined
objectives and
compliance to laws and
regulations
Maturity level of risk
management
implementation
0 Material Auditor
General findings on
finances and
predetermined objectives
# of findings in the
External Audit with
respect to fraud and
corruption in
procurement process
related activities.
0 findings
Maturity level 4 of risk
management
implementation
14
Statement of Financial
Performance
Gross Revenue
Less: Cost of sales
Gross Profit
Operating Expenses
Operating Profit
Other income
Earnings Before Interest and Tax
Net finance income
Surplus before tax
Tax
Net Surplus/ (loss)
Revenue growth
Gross Margin as a % of revenue
EBIT as a % of revenue
Operational expenciture as a %
of revenue
Actual
FY 2014/15
APP
FY 2015/16
Rev Budget
FY 2015/16
Forecast
FY 2015/16
Budget
FY 2016/17
R'000
R'000
R'000
R'000
R'000
Estimates
FY 2017/18 FY 2018/19
R'000
R'000
5 089 678
(3 954 847)
1 134 832
(1 083 614)
51 218
34 457
85 675
122 321
207 996
(63 707)
144 289
8.5%
22.3%
1.7%
5 390 000
(4 312 000)
1 078 000
(875 638)
202 362
35 268
237 630
54 601
292 231
(81 825)
210 407
5.9%
20.0%
4.4%
5 674 373
(4 396 258)
1 278 114
(1 242 882)
35 232
29 501
64 733
54 601
119 335
(33 414)
85 921
10.3%
22.5%
1.1%
5 390 000
(4 312 000)
1 078 000
(1 074 366)
3 634
35 981
39 615
15 000
54 615
(15 292)
39 323
5.6%
20.0%
0.7%
6 395 449
(5 173 077)
1 222 372
(1 155 538)
66 834
21 370
88 204
47 175
135 379
(37 906)
97 473
18.7%
19.1%
1.4%
6 779 176
(5 423 341)
1 355 835
(1 186 356)
169 479
22 609
192 089
49 912
242 000
(67 760)
174 240
6.0%
20.0%
2.8%
7 185 926
(5 748 741)
1 437 185
(1 257 537)
179 648
23 921
203 569
52 806
256 375
(71 785)
184 590
6.0%
20.0%
2.8%
21.3%
16.2%
21.9%
19.9%
18.1%
17.5%
17.5%
15
Budget per Programme
PROGRAMME 1: SERVICE DELIVERY
Budget Estimate
2016/2017 2017/2018
Estimate
2017/2018
PROGRAMME 2: INFRASTRACTURE
PROGRAMME 3: PROCUREMENT PROGRAMME 4: FINANCIAL SUSTAINABILITY
Budget Estimate Estimate Budget Estimate Estimate Budget
2016/2017 2017/2018 2017/2018 2016/2017 2017/2018 2017/2018 2016/2017
Gross Revenue
5,309,994 5,396,010
5,722,536 1,085,455 1,383,166 1,463,390
Less: Cost of Sales
4,435,652 4,649,277
4,929,781
737,425
774,064
818,960
Gross Surplus
874,342
746,733
792,755
348,030
609,102
644,430
Less: Operating Expenses
367,909
377,695
400,357
21,875
22,457
23,804
Operating Profit/(deficit)
506,433
369,038
392,399
326,155
586,645
-
-
-
-
-
-
Estimate
2017/2018
-
PROGRAMME 6: GOVERNANCE AND
ADMINISTRATION
PROGRAMME 5: ORGANISATION
Estimate Budget Estimate Estimate Budget Estimate Estimate
2017/2018 2016/2017 2017/2018 2017/2018 2016/2017 2017/2018 2017/2018
-
-
-
-
-
-
-
-
0
0
0
0
0
0
0
0
0
52,290
62,872
64,545
68,417
76,910
78,956
83,693
599,773
696,727
738,530
620,625 (48,052) (49,331) (52,290)
(62,872)
(64,545)
(68,417)
(76,910)
(78,956)
(83,693)
(599,773) (696,727) (738,530)
48,052 49,331
16
Statement of Financial
Position
Actual
FY 2014/15
R'000
Forecast
2015/16
R'000
Budget
FY 2016/17
R'000
Estimate
FY 2018/19
FY 2017/18
R'000
R'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Income Tax receivable
Prepayments
NON-CURRENT ASSETS
Property, plant & equipment
Intangible assets
Deferred tax assets
TOTAL ASSETS
2 717 061
1 539 405
1 022 869
140 479
14 309
1 008 781
613 913
291 785
103 083
3 725 843
2 045 639
797 779
1 107 534
125 187
15 139
1 796 247
1 337 043
350 142
109 062
3 841 886
2 008 676
1 117 742
788 480
87 281
15 595
2 065 965
1 530 408
420 171
115 387
4 074 641
2 085 361
1 214 396
835 789
19 521
16 078
2 290 453
1 664 169
504 205
122 080
4 375 815
2 386 330
1 484 228
885 936
16 588
2 372 053
1 637 848
605 046
129 160
4 758 383
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Income received in advance
Current tax liability
NON-CURRENT LIABILITIES
Post-retirement medical liability
TOTAL LIABILITY
TOTAL NET ASSETS
TOTAL LIABILITIES AND ASSETS
867 481
688 444
179 036
127 446
127 446
994 926
2 730 917
3 725 843
936 233
700 228
236 005
142 617
142 617
1 078 850
2 763 036
3 841 886
1 009 434
759 434
250 000
150 889
150 889
1 160 323
2 914 318
4 074 641
1 043 164
793 164
250 000
159 640
159 640
1 202 804
3 173 011
4 375 815
1 143 018
840 753
250 000
52 264
168 899
168 899
1 311 917
3 446 466
4 758 383
17
Statement of Cash Flows
Budget
Actual
Forecast
Estimates
FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19
Cash from operating activities
Cash flows from investing activities
Cash flow from financing activities
Incease/(decrease) in cash and cash equivalents
Cash and cash equivalents beginning of year
Cash and cash equivalents end of year
R'000
R'000
R'000
R'000
R'000
160 156
(250 904)
(90 748)
1 630 153
1 539 405
139 786
(881 411)
(741 626)
1 539 405
797 779
816 152
(496 189)
319 963
797 779
1 117 742
642 397
(545 742)
96 655
1 117 742
1 214 396
712 102
(442 270)
269 832
1 214 396
1 484 228
18
Capital Expenditure
Programme and sub-programme
Programme 1: Service delivery
Sub-prog 1.1: Contact Centres
Sub-prog 1.2: Customer Unique
Sub-prog 1.3: DSS & 1st Line
Sub-prog 1.4: Modernisation
Sub-prog 1.5: Networks
Sub-prog 1.6: R&D Capex
Sub-prog 1.7: Security
Sub-prog 1.8 Switching Centres
Total programme 1
Programme 2: Infrastructure
Sub-prog 2.1: Data Centres
Sub-prog 2.2: Modernisation
Sub-prog 2.3: Transversal
Total programme 2
Programme 6: Governance and Administration
Sub-prog 6.1: Facilities
Sub-prog 6.2: Integrated Security Management Solutions
Sub-prog 6.3: Internal IT
Sub-prog 6.4: Production Toolsets
Total programme 6
Grand Total
Forecast 2015/16
Rollovers
Budget
FY2016/17
Estimate
FY2017/18
Estimate
FY2018/19
4 165 000
20 931 479
12 309 440
7 604 927
59 904 298
4 000 000
22 000 000
250 379 640
381 294 783
1 504 200
3 150 200
44 201 152
33 200 000
12 300 000
94 355 552
54 598 096
1 504 200
3 150 200
38 256 446
107 017 599
29 700 000
4 800 000
239 026 541
32 006 446
37 895 039
5 000 000
13 500 000
88 401 485
29 528 372
5 000 000
8 500 000
43 028 372
181 386 310
5 467 000
12 686 702
199 540 012
65 156 021
10 604 637
75 760 658
103 379 224
66 750 000
21 209 274
191 338 498
169 910 000
125 100 000
43 000 000
338 010 000
137 550 000
183 800 000
321 350 000
20 344 693
3 358 030
54 792 244
1 435 000
79 929 967
660 764 762
7 023 304
15 979 972
2 035 457
25 038 733
195 154 943
5 023 304
16 359 620
42 546 567
1 800 000
65 729 491
496 094 529
3 200 000
12 493 000
101 337 955
2 300 000
119 330 955
545 742 440
1 700 000
11 500 000
62 192 062
2 500 000
77 892 062
442 270 434
19
Thank You
20