Agenda

l Background on Business Areas l Technology Infrastructure l SAPO’s ticketing vision l Way forward

Business areas l Postal Services l Courier and Freight l Channel infrastructure (Retail) l Financial services l Postbank

Ø Infrastructure Ø Products and services

BULK MAIL (EBdn)

* ADDRESSED MAILING

eg Statement mailing

UNADDRESSED MAILING

Weekly promotional brochures, pamphlets, etc

MAILROOM MANAGEMENT and HYBRID MAIL

Internal Mail (Inter Office)

External Mail (Inter Branch

and Region)

DIRECT MAIL CENTRE ‐ A South African Post Office initiative in Midrand, JHB

Services offered by the DMC: s Exciting Workshops s Presentations on specific Direct Marketing topics s Direct Mail Library s Directory of suppliers eg. List Owners, Creative

designers, printers, etc s Personal consultation

COURIER FREIGHT GROUP (CFG)

Speed Services Courier Service

XPS and PX Logistics and Freight

DOCEX Financial and Legal Documents

Customer channel

This type of facility is provided in company­owned or leased accommodation on a stand alone basis. It is either operated on a full­time or part­time basis by post office staff providing the full spectrum of post office products and services to our clients during standard business hours.

CONVENTIONAL TYPE POST OFFICE

RETAIL POST OFFICE

A Postpoint: is a fully fledged post office providing the full spectrum of post products and services to clients by our own staff with the exception that it is situated in a host business eg.Supermarkets Benefits: l Operates same hours as the host business. ( longer hours) l Free accommodation and electricity. l Convenience to shoppers. ( one stop shopping) l Fully fledged post office providing all products and services. l More feet into host business.

RETAIL POSTAL AGENCY

l Also situated in a host business such as a café or other small business and is usually established in areas where the operation of a traditional type post office or Postpoint is not economically viable. l It is operated by a fully trained agent during the same business hours of the host business rendering full basic postal services with the choice of optional services. In return:

nThe agent receives a remuneration per transaction successfully executed

NATIONAL OUTLET STATUS AS AT

SEPTEMBER 2005 SERVICED AREAS: SERVICED AREAS: OUTLET TYPE OUTLET TYPE ACTUAL ACTUAL CTPO’S 683 RPO’S 134 RPA’S 440

UNDER UNDER­ ­SERVICED: SERVICED:

OUTLET TYPE OUTLET TYPE ACTUAL ACTUAL CTPO’S 449 RPO’S 45 RPA’S 805

TOTAL 2556

CTPO’s 1132 RPO’s 179 RPA’s 1245

We have the widest retail network compared to any other business entity in the country

MENLYN POST OFFICE

TYPES OF SERVICES

Transactional services * Pay­a­Bill * EBPP * E­filing (applications) * Banking (withdrawals and deposits)

Pension pay­outs * Biometric and smart card application in North West supported by bank account

Money transfers *Mzansi Money Transfer *PIN Express

Enabled by high level security system eg Trust Centre (Digital certificate and biometrics)

We reach the most rural point

Merchandising Telephone Cards Cell Phone Recharge Vouchers etc

There’s a Postbank in every Post Office

SAVINGS Mzansi Flezi Maxi Save Smart Save Flexi Card Group Save Bonus Save Term Save

INSURANCE Thuso Funeral Plan

LENDING Mothusi

“BANKING THE UNBANKED”

POST BANK

Support Infrastructure l Operations Management Tools l Patrol, Maestro, Tivoli Workload Scheduler, Tivoli Storage Management. l Network Management l One of the largest commercial wide area networks (WAN) in the southern hemisphere

(more than 1500 sites) as well as numerous Local Area Network (LAN) components. 27000 devices and components connected to network

l In order to ensure availability in excess of 99% a well­equipped enterprise network management infrastructure has been implemented. This includes HP/Openview, Cisco Works, Nethealth (implemented on the 278 main backbone sites).

l Currently busy consolidating all the Management Tools under one Enterprise Management Tool.

l Change Management (Remedy) l Remedy Support desk system. l Customer Services – Support Desk l Development and Technical Support ­ all systems l In­house IT business support departments, supplemented by external supplier

contractors where appropriate. l Operational Figures ­ Health Reports, Capacity and Network Reports l Performance Management ­ BBS l Introspection, Internal IT Audits l Regular formal audits are conducted by Internal Audit, External auditors and external IT

management consultants to ensure that the Division maintains the highest standards in all areas and keeps pace with the latest IT trends and techniques in management and operations.

l Standards l The following standards have been adopted for operating systems software database

software, desktops and Intranet development. n Version policy is latest version ­1. n Unix (AIX, HP/UX and Sun Solaris) n NT, NT Server, Windows and MS Office n OS2 warp3 (POS Counters) to be replaced by MS n Oracle, Sequel Server. n Microsoft Office + Professional n Visual Basic ­ MS FrontPage, ASP’s.

l The following standards are implemented for the Applications systems, SDLC, Change and Project Management. n Corporate Systems SAP/R3 (SAP abap) n Central (SAP abap) n Middelware (IBM MQ Series) n Banking ­ Flexcube n SDLC (Summit D and ASAP) n MS Project – Officetime, PMBOK based policies n Support Desk and Change control ­ Remedy

l The following standards are implemented for Network Installations and Management. n Cisco routers and Switches n UTP CAT 5E network cabling (100mbps LANs) n Network Management – Network Node Manager. n Network Management ­ Net Health n Network Management ­ CiscoWorks 2000

l Data Security and Anti­Virus Measures l SAPO IT utilizes Trend Micro Anti­virus software and a variety of monitoring and

security tools to protect its environment from Spamming, hacker and virus attacks

l VANS (ISP) License l SA Post Office has a VANS License and as a node of the Internet can offer VANS and

ISP services to external clients. This allows us to legally transport Third Party client data across the WAN.

l Flexcube l The Post Office Savings Bank banking applications package l Postlink 2 l The implementation of the Postlink POS system to almost every Post Office in the

country l E­Product platform l Post Office has the capability for EFT/ACB verification and inter­bank financial

switching with all retail banks through its business partners l Network Expansion ­ VSAT 300 l Utilizing VSat to provide the necessary extended reach to the Wide Area Network at

358 additional locations l HW Consolidation l 30+ Unix hosts consolidated to 8 powerful IBM hosts connected to a 30+TB EMC SAN.

90% of applications have moved to this new architecture – the rest has application specific constraints and solutions for these are busy being implemented. Server consolidation involved the implementation of powerful regional servers using to Wintel 2003 servers and Exchange 2003 in an Active Directory environment

l 3rd Party Access l Clients are able to transmit information in a number of ways.

n Secure Internet n Secure Ftp n Secure E­mail

l These delivery cannels can be done via a direct link between the supplier/partner and the Post Office.

Postilion Switch l Implemented Postilion switch during the first quarter of 2005. l Postilion drives payments, including advanced financial transactions such as prepay

and self­service, through ATMs, POS terminals, phones, and Internet access points. This integrated multi­channel architecture provides consolidated management information, integrated card management, EMV chip enablement, and loyalty software solutions.

l Postilion delivers the following capabilities: n ATM and advanced ATM processing and monitoring n Retail POS processing n EFT switching and routing n Prepayment n WAP and Internet payments and banking n Mobile commerce n Call center transaction processing n Postilion can drive consumer­generated transactions at every point of an EFT

network. l Includes several components that manage the integrity and security of transactions,

control the routing of transaction information, and can perform authorization on behalf of card issuers. It can perform currency conversion, reconcile transactions, and assist operators with terminal monitoring and event logging.

l Postilion Office is a product that provides post­transaction processing of data retrieved from Postilion Realtime. It offers a comprehensive source of information for near real time monitoring and analysis of all transactions processed by the Postilion Realtime system without affecting the performance of the Postilion Realtime system. Postilion Office provides the following functionality: n multi­party settlement and the creation of payment (ACH) files n extracting of transaction files in any format required n automatic transaction reconciliation with terminals and networks n reporting on the above

l The eSocket family of products was developed to enable third parties to easily integrate with Postilion. Any member of the eSocket family can be placed on a foreign device or system to transaction­enable that customer channel. The family of eSocket clients that connect to Postilion Realtime consist of components for the following devices:

l web servers (eSocket.web) l interactive voice response (IVR) units (eSocket.web) l ATMs and kiosks, particularly web­enabled devices (eSocket.ATM) l electronic point­of­sale (EPOS) cash registers (eSocket.POS)

l Postilion PostCard l PostCard provides card production management, PIN management, and

authorization services to card issuers. The product was designed to provide services to multiple issuers from a single system. Web­based consoles allow users from each issuer location to access the system.

Electronic Signing of the ECT Act – July 2002 ECT Act

Creation of Authentication Authority ito ECT Act :

Establish a Trust Centre – level 5 security

Situated in Western Cape

Immediate product range

Biometrics

Digital Certificates

Electronic Signature

Advanced electronic signature (digital signature)

T­systems age of innovation and sustainability:

Most promising new innovation (2003)

Technology Top 100 qualifier (2003)

Computer Strategist‘s IT Project Master Award (2003)

Computer Strategist’s Collaboration Award (2003)

Technology Award Winner at World Mail Awards (2004)

Security Award Winner at World Mail Awards (2004)

E­Commerce finalist award at World Mail Awards (2004)

Innovation finalist award at World Mail Awards (2004)

X­pert Project Manager of the year (2004)

X­pert Project Sponsor of the year (2004)

Standard Bank CPSI award for Public Sector Innovator of the year: 1 st

Runner-up (2004)

Standard Bank CPSI award for Innovative enhancements on Internal systems within Government: Finalist for ebdn (2004)

Standard Bank CPSI award for Innovative enhancements on Internal systems within Government: Finalist for Pension project (2004)

Standard Bank CPSI award for most effective use of technology in service delivery (2004)

Top Individual, Maanda Manyatshe , African ICT Awards (2004)

Most progressive company in ICT Sector, African ICT Awards (2004)

The solution should cover the following:

• Physical infrastructure

• Technological infrastructure

• Application development & integration

• Adherence to industry standards (banking, ISO 19977 et cetera)

The Post Office strongly believes in a model that gives the consumer choice: choice of association, choice of services and choice of delivery. For this model to be sustainable, it should ­

promote an open­system approach;

adhere to industry standards or lack thereof;

foster interoperability between systems and suppliers;

promote the concept of banking for the “unbanked”;

allow the beneficiary to choose how and when tickets are purchases; and

be supported by a central database

l Establishment of Ticketing committee (similar than Interbank Mzansi initiative)

l Purpose/role n 1) Define collaborative vs competitive space

n 2) Establish work streams n 3) Define standards/user requirements for collaborative space

n 4) Establish implementation plan