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

1. Local Government Services
Enabling Service Delivery
August 2011

2. EOH at a glance
• Leader in Technology and Business Solutions Key Findings:
The South African IT services market is
• Largest implementer of ERP solutions dominated by local players (Dimension
Data, GijimaAst, Business Connexion
• Widest range of applications and Enterprise Outsourcing Holdings
[EOH]) which increased their combined
• One of Top 4 IT service providers in SA
market share by 1.4% to nearly 27% in
• End-to-end offering 2009.
Gartner:
• Strong Black Economic Empowerment profile Market Share Analysis: IT Services Rankings,
Middle East and Africa, 2009
• Operates in Africa (South Africa, Botswana, Kenya,
Nigeria) and UK The EOH Vision
To be the best technology and
• Listed on JSE since 1998 business solutions company to
• 1700 + staff, > 2200 customers work for, partner with and invest in
EOH provides specialised consulting, technology and
outsourcing services to the following industries:
Financial Services Mining
Manufacturing Industry Public Sector,
Telecommunications, Retail Industry

3. EOH at a glance
• Leader in Technology and Business Solutions Key Findings:
The South African IT services market is
• Largest implementer of ERP solutions dominated by local players (Dimension
Data, GijimaAst, Business Connexion
• Widest range of applications and Enterprise Outsourcing Holdings
[EOH]) which increased their combined
• One of Top 4 IT service providers in SA
market share by 1.4% to nearly 27% in
• End-to-end offering 2009.
Gartner:
• Strong Black Economic Empowerment profile Market Share Analysis: IT Services Rankings,
Middle East and Africa, 2009
• Operates in Africa (South Africa, Botswana, Kenya,
Nigeria) and UK The EOH Vision
To be the best technology and
• Listed on JSE since 1998 business solutions company to
• 1700 + staff, > 2200 customers work for, partner with and invest in
EOH provides specialised consulting, technology and
outsourcing services to the following industries:
Financial Services Mining
Manufacturing Industry Public Sector,
Telecommunications, Retail Industry

4. Some of our South African Clients

5. 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

6. 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 Service delivery
many municipalities, which are
central to the implementation of protests!!!
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

7. Causes include
• 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
So, the key question is: Can ICT be thePROTESTS’ INhelp AFRICA.
Commissioned by usedChairperson Committees,
House to
SOUTH
government deal with these issues?
Oversight and ICT, Parliament of South Africa, 2009

8. Outstanding debt payments for municipal services
How was the benefit realised?
• 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:
12 Month Moving Average -
Payment Ratio
• 1% increase in the payment ration = R6 mil
100.00%
98.00% per month.
96.00% • ROI option: 90 % payment ratio was used
94.00% as the baseline for this ROI study and only
92.00%
90.00%
11% of financial value of the increase
88.00% above baseline has been used. = R224.6
86.00% mil.
Payment Ratio
84.00% ROI Baseline
82.00%
• 100% option: Instead of allocating only
11% - if 100% allocation over 90% base is
Jul-03
Nov-03
Jun-04
Jul-04
Nov-04
Aug-03
Jan-04
May-04
Aug-04
Jan-05
Oct-03
Mar-04
Apr-04
Mar-05
Apr-05
Sep-03
Dec-03
Feb-04
Sep-04
Oct-04
Dec-04
Feb-05
to be used the financial value would be =
R794 mil.
Source: City of Cape Town

9. Financial mismanagement and Maladministration
Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04.
Cash Position - City of Cape Town
June 2002 to July 2006
2,500
2,000
R '000 000
1,500
Go-live
1,000
500 Planned loan of
R300 mil not
0 taken up
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Dec-02
Dec-03
Dec-04
Dec-05
Source: City of Cape Town Budget Actual Cash Position

10. Lack of Capacity
Average Daily Value R744,201 No Txns per Day
Average Daily No. of Transactions 1140 8 000
7 000
Andre Stelzner, Director: IS&T, City of CT 6 000
“Another interesting area has been the 5 000
automation of fuel payments through e-fuel
4 000
3 000
system and interface into SAP. Through this 2 000
we pay approximately R750 000 per day for 1 000
fuel to the respective suppliers without any 0
human intervention......
3 500 000 Inv Value per Day Sum of No Txns
3 000 000
2 500 000 ......What makes things even better
2 000 000 is that the price is checked against
1 500 000 contract pricing and payment is
1 000 000 optimised to ensure that we only
500 000 pay on due date. In the past we had
0 the fuel supply cut to the city due
to late payment, now nobody
Sum of Inv Value
worries about it.”
Source: City of Cape Town

11. 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

12. Lack of communication with communities
Creating Citizen Value creates Citizen Loyalty.
• 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

13. Lack of communication with communities
Creating Citizen Value creates Citizen Loyalty.
• 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

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

15. 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

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

17. 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
Strategy
• 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
Tech
business interests at the expense of service delivery.
• Violation of MFMA & Supply Chain Mgt - results in tender
Process People
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

18. 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
Local Government Factors
• Improve performance and professionalism in municipalities
• Improve national and provincial policy, oversight and support
• Strengthen partnerships between local government, communities and civil
Challenge 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
Opportunity • 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
Citizen • Increased participation
Benefits

19. EOH Solutions for Local Government
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

20. EOH Value Proposition
implementation
Customer
Value
Post-
• Streamlined processes
Efficiency • Increased
SLA accountability at all
levels
• Move to zero Audit
Customer Qualifications
Value • Budget spend
according to plan
• Service Delivery
Project Lifecycle
Excellence
Implementation
€ 17.4 Bn
Costs Implementation
Costs
SLA
Infrastructure Infrastructure
Aquisition Aquisition
Value
Typical Implementation EOH Municipal Solutions for
Project s today… Local Government

21. The EOH Enablement Approach
EOH Municipal Solution
EOH Centre of
Excellence

22. Municipality Process Enabled by EOH
Property Management Value Chain
Planning Deeds GIS Valuations
Building Street Valuation
Register Transfer Maps Land Use
Control Addresses Roll
Revenue Management Value Chain
Revenue Planning Invoicing & Collections Loss
Managmt
Manage Admin Financial /
Develop Measure Collect Credit
Revenue Customer Billing Technical
Tariffs Usage Revenues Management
Targets Base Loss
Citizen Relationship
CRM
Acquire Deliver Customer
Customer Services Care
Management Value Chain

23. Property Management Value Chain
Property Management Value Chain
Planning Deeds GIS Valuations
Building Street Valuation
Register Transfer Maps Land Use
Control Addresses Roll
Integrated Solution

24. Revenue Management Value Chain
Revenue Management Value Chain
Revenue Planning Invoicing & Collections Loss
Managmt
Manage Admin Financial /
Develop Measure Collect Credit
Revenue Customer Billing Technical
Tariffs Usage Revenues Management
Targets Base Loss
Process Definition KPI
Manage Set targets/quotas for billing revenue and forecasting product • Revenue Actual vs. Target (Rands)
Revenue
usage in line with a designed sales plan and business unit • % achievement of target billings
revenue and surplus attainment objectives. It also includes the
Targets use of analytical tools to improve the accuracy of revenue
projections and to track revenue and to ensure that it is
effectively managed.
Develop Setting of tariff policies, applicable tariffs/rates to be charged • Adherence to government inflation
and the controlling and monitoring of the application thereof objectives.
Targets and to ensure that it is effectively managed.
• Adherence to City's objectives
• % achievement of revenue targets
• Publication of tariffs on time

25. Revenue Management Value Chain (cont.)
Revenue Management Value Chain
Revenue Planning Invoicing & Collections Loss
Managmt
Manage Admin Financial /
Develop Measure Collect Credit
Revenue Customer Billing Technical
Tariffs Usage Revenues Management
Targets Base Loss
Process Definition KPI
Admin Maintenance of the customer accounts including • Turnaround time for updated customer data
Customer
opening, changes to and closure s. This includes updating • % Accurate customer data
on billing data such as on meter installations, repairs,
Base replacements and maintenance inspections.
Measure Determining of consumption on products in order to • % of accurate meter readings per cycle
Product
accurately bill customers • Cycle time to finalise readings
Usage • Cycle time to complete out-of-cycle
readings
Billing Ensure that services rendered are effective, accurate and • % Bills prepared and printed on time
billed on time. This also includes the timely delivery of % Bills delivered on time
the bills to the consumers by various means.
• Cycle time to have Bills ready for delivery

26. Revenue Management Value Chain (cont.)
Revenue Management Value Chain
Revenue Planning Invoicing & Collections Loss
Managmt
Manage Admin Financial /
Develop Measure Collect Credit
Revenue Customer Billing Technical
Tariffs Usage Revenues Management
Targets Base Loss
Process Definition KPI
Collect Ensure effectively management by making sure that all • % of Amount billed Received
that for all services billed, the revenues collected are on
Revenues time and in full.
Credit The management of credit monitoring and control, legal • No. of days outstanding
Managem
recovery and cut-off processes. • % of overdue amounts recovered.
ent • % of overdue accounts on which services
are terminated

27. Revenue Management Value Chain (cont.)
Revenue Management Value Chain
Revenue Planning Invoicing & Collections Loss
Managmt
Manage Admin Financial /
Develop Measure Collect Credit
Revenue Customer Billing Technical
Tariffs Usage Revenues Management
Targets Base Loss
Process Definition KPI
Financial / The identification, evaluation and the management of • Value of losses identified
Technical
financial and technical losses. • % correction on identified losses
Loss

28. Citizen Relationship Management Value Chain
Citizen Relationship
CRM
Acquire Deliver Customer
Customer Services Care
Management Value Chain
Process Definition KPI
Establishing and providing a strategic framework • Status of Audit reports
for accepting, managing and delivering the service • Channel Utilisation
Acquire interaction between the City and its citizens.
• Customer satisfaction
Customer • Customer awareness pertaining to the city’s
available interactive channels
Accepting, executing and monitoring information • % First call resolution (FCR)
requests, new service requests and complaints • % Staff declared competent
made by citizens, businesses and visitors related
• Waiting time / queue time
to City offerings.
• Ageing analysis for all logged "tickets"
• % Dropped calls
Deliver • Average handle time
Services • Hours spent per 100 interactions
• Fault lifecycle
• Call Centre utilisation per FTE
• Average speed of answer
• % Of customer interactions self serviced
• Channel usage ratio

29. CRM Value Chain (cont.)
Citizen Relationship
CRM
Acquire Deliver Customer
Customer Services Care
Management Value Chain
Process Definition KPI
In order to enhance service delivery, focus needs • % First call resolution (FCR)
to be placed on Customer Care in order to further • % Staff declared competent
improve the customer experience. Managing
• Waiting time / queue time (all channels specified
customer relationships by means of our ability to
identify customers, segment customers in order independently)
to develop services and manage customers and • Ageing analysis for all logged "tickets"
obtain feedback and monitor feedback. • % Dropped calls
Customer • Average handle time
Care • 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

30. Mobile Solution Overview
Municipality District Pothole Identified Citizen Log via USSD
Call routed to municipality
(department)
Server
Central
Control
MIS reports updated

31. TRY
THIS!!!
EOH MOBILE MUNICIPAL SOLUTION
*120*494*12345#
Advantages:
Works with ALL phones (not only smartphones)
Do not need data bundles
Cheaper than sms

32. EOH Municipality in a Box E-Government platform
Available free to South African Municipalities!!!
• Partnership with SAFIPA (South Africa - E-Government
Finland knowledge partnership on ICT) & Tightly Platform
EOH
integrated
Council officials and politicians
•Supply Chain
• Management/ e-
Key emphasis on improving the effectiveness with EOH
Citizens and communities
of local government by utilising a people, tendering
process and systems approach – good, solid, Municipal •Council Secretariat
repeatable processes enabled by a system (including Agenda
executed by trained people. Solution Management and
Council Meeting
• To deliver a package (toolbox) comprising of a Management)
systems architecture, process maps,
implementation methodology and templates •Document
that will be used by municipalities to improve Or Management
their service delivery. •Knowledge
Management and
• Tightly integrated to EOH Municipal systems Knowledge
platform consisting of Operational systems Repository
(for day to day running of the municipality), Integrate with (legislation, reports,
Business Intelligence systems (to enhance etc.)
information visibility and decision making) , existing •Municipal Incident
performance management systems (increased
accountability) and an e-Government back-end reporting and
management system
platform to enhance citizen participation and transactional •Etc.
oversight
systems
• Hosted by EOH Local Government Services

33. Predefined Municipal Solutions Offering

34. EOH Value Proposition
Local Govt Value
EOH Skilled Expertise
commitment to Knowledge Transfer
Local government success Proven Practices
Subject Matter Expertise Right 1st Time culture
Actionable Recommendations Customer Enablement
Process Optimization Via EOH Academy
Business Support Enablement Quality Management

35. EOH Centre of Excellence Enablement
Approach
MUNICIPALITY OBJECTIVES
LOCAL GOVERNMENT  Ensure that municipalities meet the basic service needs of
Run municipality as a business communities
Use local resources to drive revenue –  Build clean, effective, efficient, responsive and accountable local
attract industry / tourism government
 Improve performance and accountability
Business
Requirements Collaboration
Solution platform
Matching
EOH VALUE OFFERING
Knowledge transfer thru’ EOH Academy  Provides business relevant content
Proven practices  Fully understands Local Government operating model and
processes
 Shared commitment to service delivery
EOH

36. What makes the EOH difference?
Integrated approach to deliver a complete end-to-end solution
SOLUTION OFFERING FEATURES
Flexibility predefined solution options
Price flexible pricing options
Hardware can be included
Software / Data optionally at customer site or hosted
Legacy Integration included
Implementation services deployment package by EOH
Delivery Concept Customer relevant pre-configured business processes
delivered on building block principle for quick time to
value and predictable costs while retaining flexibility

37. A dedicated consulting arm that
Local Government
knowledge
understands the Local Government
Domain with a proven track record
designed to start small addressing the
Scalable immediate issues while allowing for
Implementation later growth along increasing business
requirements
reduced implementation costs and time
Preconfigure & allows for easy and quick extension of
Predefined the solution landscape along new
business requirements
simplify complex system landscapes
Ease of Use
adopting integrated solutions
access to support personnel either on-
Support site and/or through the EOH Centre of
Excellence

38. Summary of EOH Value Proposition
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.
SUMMARIZED VALUE PROPOSITION
Public Sector
Preconfigured software Predefined service Rapid Deployment
Consulting
Diagnostics Preconfigured software A templatised Leverage pre-
(Grand Plans/Route addressing Local methodology of configured
Maps) Government priorities delivering defined results municipal specific
Implementation with end-to-end within predictable costs content.
through BPI of processes and time of
Legislation/ Policies implementation

39. 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

40. Discussion/ Comments
 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
BENEFITS implementation services
STATEMENT
 Innovative and scalable delivery model offering additional benefits in
deployment
 www.EOH.co.za
FIND OUT  Nirvesh Sooful Enoch Makhubo
MORE nirvesh.sooful@eoh.co.za enoch.makhubo@eoh.co.za
+27 84 909 9284 +27 72 907 6342
Wayne Noble Lucky Mondlani
wayne.noble@eoh.co.za lucky.mondlani@eoh.co.za
+27 72 510 4668 +27 82 570 4691