Shirikiana Shared Services Master Plan 2011

Government of Kenya Shared Services

Master Plan Finalization

Panafric Hotel

Nairobi, Kenya

3rd May 2011

Accenture

• Consulting – Technology – Outsourcing

• 215,000 employees in 53 countries with clients in 120

countries

• $21.5 billion in revenue

• Clients include 94 of Global Fortune 100 and three-

quarters of the Global Fortune 500

• Business & Technology Consulting: Strategy, HR and

Talent Management, Supply Chain, Financial

Management

• Global leader in Shared Services strategy, design and

operations across Government and Private Sector

• Accenture Development Partnerships operates on a

non-profit basis for clients in the international

development sector

2

Each phase

contains key Shared Services activities Each activity has a summary,

a full text document, and links to relevant deliverables

Accenture and Accenture Development Partnerships

IT Shared Services – Agenda

Current State Assessment

Target State Recommendations

3

Shared Services Overview




4


What is IT Shared Services?

IT Shared Services is the consolidation of IT support

functions from several departments or agencies into a

single, stand-alone organizational entity whose only

mission is to provide services as efficiently and effectively

as possible.

5

Project Overview

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1. Formalize a Government of Kenya IT Shared Services strategy and blueprint for

Central and Local Government

2. Provide a high-level roadmap for transitioning identified IT function into a shared

services paradigm

3. Align the Shared Services strategy/blueprint and roadmap with other

Government-led technology initiatives

4. Prepare a detailed business plan for establishing a Shared Services Centre

5. Conduct Shared Services study visits for key stakeholders

High-Level Project Objectives




7


Current State Assessment Overview

Met with over 250 people across Central and Local Government

Collected IT budget, spending, workforce, asset and project information from 42

Ministries and 4 entities

Assessed detailed application, data and infrastructure for 8 Ministries

Analyzed IT budget and workforce across 175 Local Authorities

Collected detailed IT spend, asset and project information from 22 Local Authorities

Held 10 workshops with ICT Heads and officials

Visited 22 Local Authorities

8

Our team worked closely with eGovernment and Kenya ICT Board from April –

August 2010 to assess the current state of the Government of Kenya’s IT spending,

workforce, technology, capabilities, priorities and key projects.

• Culture and Strategy – while technology is viewed as an important enabler of Kenya’s growth and

critical for the achievement of strategic goals, IT is still struggling to be a priority for many Ministries

• IT Investments – in comparison to spending in other Governments globally, the Govt of Kenya is

greatly under-invested in technology

• Budget Execution – where investments are reflected in IT budgets, a large gap exists between

budgets and actual spending for most Ministries

• People – comparatively low levels of IT staffing are exacerbated by a shortage of skilled resources

with tools needed to effectively execute projects

• Process – lack of standard processes across Ministries have lead to confusion, increased

inefficiencies and duplication

• Automation – few processes are fully automated, resulting in heavily manual process, increasing

user errors and longer times to complete

• Technology – outdated technology and incomplete systems are common across the few functions

that are automated

• Projects – most projects are siloed within Ministries and do not reach completion; few are launched

cross-Government, resulting in mis-aligned engagements with low success rates

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Without investment and standardization, the Government of Kenya is not well-

prepared to support major technology-enabled Vision 2030 initiatives.

Key Findings

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2009 2010 2011 2012 2013 2014 2015Project Ministry

Infr

astr

uctu

re

Tota

l: S

17.0

B

illio

n 8,482 million KESKENET – Capacity purchase for Universities

Government Data Center (GDC)

Government Common Core Network (GCCN)

Bandwidth to E-Government Network

All Other Infrastructure projects

Education

E-Government

E-Government

InfoComm

Various

Applic

ations

Tota

l: S

14.8

B

illio

n

Kenya Government Email – Lotus Notes

Education Management Information System (EMIS)

Integrated Financial Management Information System

(IFMIS)

Integrated Personnel & Payroll Database (IPPD)

All Other Application Initiatives: Develop database

management and ministry-specific processes

E-Government

Education

Finance

Public Service

Various

2,800 million (continuous) KES

2,100 million KES

4,000 million KES

Dig

italiz

ation

Tota

l: S

X

Bill

ion

National Lands Information Management System

High Court Registry- digitization & Application

Digitization of Company Registry Files

Lands

Judiciary

State Law 170 million KES (in progress)

TBD (in progress)

1,010 million KES

1,000 million KES

3,486 million KES

675 million KES

9,898 million KES

1,000 million KES

1,245 million KES

80+ technology-enabled projects worth over 35 billion KES are in progress or are

planned for delivery across 39 Ministries.

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Current State Findings – IT Enabled Projects

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Higher levels of spending on hardware, reflecting the relatively lower cost of labor

and greater opportunities for non-labor savings.

IT spending is significantly lower

for internal staffing than the

average. Kenya’s average IT

worker salary is relatively low

compared to other governments.

Lower software spend reflects the

dominance of manual processes

within Kenya’s Ministries

Hardware spent is much higher

compared to average, reflecting the

Government’s traditional focus on

client computing peripherals and

data centers.

Excluded Ministries Total: 9 Cooperative, PSCK,OPM,DPM, Trade, Industrialisation, Education, Local Government, Provincial Admin,

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Source: Government of Kenya IT Data Collection, June 2010 and Accenture analysis, and Gartner IT Metrics

68.5%

20.0%

18.0%

18.4%

40.0%

38.0%

12.6%

19.0%

22.0%

2.0%

3.0%

19.0%

18.0%

0.1% 0.4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Kenya Government %IT Spending by

Component

*Gartner: Gov't IT Spending by

Component

*Gartner: Overall IT Spending by

Component

Hardware Personel Software Other Outsourcing

Current State Findings – IT Spend by Component

IT capabilities across the Ministry ICT organizations are fairly limited, reflecting

minimal investments in standard, repeatable processes.

Capabilities Description Maturity Rating Current Rating Target Rating*

Strategic IT Alignment

How business strategies are translated into IT investment and operating plans. How IT impacts enterprise performance and is measured

↑ Process in place for E-Government to define the strategy.

↓ Defined Strategy and Enterprise Architecture not realised

• Need consistent, methodological approach to building the strategy. This will gain support to build IT across Government.

IT Governance

How IT decisions are made, sponsored, enforced and how overall IT performance and IT investment outcomes are tracked

↑ Some standards are in place

↓ Limited portfolio mgt. Poor budget control.

↓ No overall framework

• Require structured, documented portfolio mgmt

• Need clear and unambiguous roles & responsibilities

Architecture Management

How the strategic execution IT architecture framework is created and “lived”

↑ Network Infrastructure architecture documented

↓ Limited Application & Dev.

• Need standardised, repeatable and proactive management of architecture

The ratings indicate the relative maturity of execution within the specific

domain. It is not necessarily desirable for a company to be at best practice

level in all areas.

None

Initial

Repeatable

Defined

Managed

Optimising

Current rating

Target rating*

* Target rating is based on estimated desired position with respects to ambition to implement an IT Shared Service and the size of the Client’s IT org.

•** Current Rating rationale is based upon interviews with Heads of ICT and Data Collection process.

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Current State Findings – Process & Organization Maturity

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IT capabilities across the Ministry ICT organizations are fairly limited, reflecting

minimal investments in standard, repeatable processes.

Capabilities Description Maturity Rating Current Rating Target Rating*

Solutions DeliveryHow systems are built and moved into live service

↑ Custom solutions have been built in the past, and good leveraging of package solutions.

↓ Lack processes/frameworks

• Need ability to consistently deliver common initiatives with multiple stakeholders

Service Management & Operations

How day-to-day operational service is planned, delivered and measured

↑ Some key applications have dedicated departments

↓ Lack methodology to cope with existing demand in a streamlined manner.

• Need defined approach to defining, delivering and maintaining IT services/SLAs

Workforce & Resource Management

How HR, knowledge and financial resources are managed and support services are delivered.

↑ Support from Leadership

↓ Limited capacity is a risk

↓ Skilled retainable workforce is a challenge

• Need for incentive structures to drive desired behaviour

• Need to secure capacity of skilled & motivated workforce

The ratings indicate the relative maturity of execution within the specific

domain. It is not necessarily desirable for a company to be at best practice

level in all areas.

None

Initial

Repeatable

Defined

Managed

Optimising

Current rating

Target rating*

* Target rating is based on estimated desired position with respects to ambition to implement an IT Shared Service and the size of the Client’s IT org.

•** Current Rating rationale is based upon interviews with Heads of ICT and Data Collection process.

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Current State Findings – Process & Organization Maturity

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Customer Self-Service

Citizen-Centric Government Functions

Operational

Enabling and Foundational

Ministry

Websites

Citizen

Self-Service

Business Self-

Service

Citizen

Engagement

Govt Employee

Self-Service

Health &

Welfare

Public Safety &

Security

Education &

Learning

Revenue &

CustomsPublic Works

Human

Services

ProcurementHR, Workforce

& Payroll

Finance &

AccountingIT & Telecomm Other

Customer

Service

Information &

Data Mgmt

Infrastructure

Mgmt

Document,

Content

& Workflow

End User ToolsEmail &

Collaboration

Disaster

Recovery

42

215

1

53

4

Government of Kenya Application Landscape

2

2

2

1

Not automatedSome level of

automationFully automated

While there is not a lot of duplication across applications, very few Government core

business functions are automated.

Number of applications

Current State Findings – Process & Applications

Even if all of the IT-enabled Projects were completed, accessing a citizen’s data

would still be complicated, reflecting the need for a common architecture.

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Database

Name: John Doe

Date of Birth:

07/12/1980

Personal ID: 23909871

Finance

E-

Government

Immigration

Judiciary

State Law

InfrastructureApplicationsDigitalization

IT Enabled Initiatives (Examples)

Name: Kamau Nzioki

Date of Birth: 07/12/1980

Personal ID: 23909871

Information:

Vehicle Registration

Passport/Visa

Tax Records

Criminal Records

... …

Database

>Vehicle Reg

Database

>Passport/Visa

Database

>Tax Records

Database

>Criminal Records

…

Current State Findings – Data Management




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Key Recommendations

1. Shared services centre – implement a single organisation that will be responsible for handling non core

ministry functions ranging from Technology, Processes and People. Leverage Government ICT

organizations particularly the Kenya ICT Board to deliver IT-enabled projects

2. IT investments – refocus the IT spending to balance future IT investments with greater focus on process

automation. Introduce global governance and prioritization over all IT investments

3. Standardization – implement Government wide approach of working across core IT processes

4. Ownership – assign owners and define decision rights across global IT processes and capabilities

5. IT projects execution – implement a consistent and predictable methodology of executing IT projects to

completion within time and budget

6. Human capital – identify and recruit resources with relevant industry skills. Develop a comprehensive

training curriculum to continuously keep resources up to date. Create a rewards and retention program to

ensure skills retention and organisational continuity

7. Initiative alignment – take advantage of ongoing foundational initiatives (NOFBI, EMAX, Govt Data

Centre) to expedite shared services realization in Central, County and Local Governments. Use the

existing opportunity to analyze and define a roadmap to streamline the ICT projects that are underway

8. Financial management system implementation – kick-start the Finance implementation project as

flagship for Shared Services application

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An opportunity of embarking on a transformation journey through Shared

Services Centre exists today

Government of Kenya Shared Services Framework

The Kenya Shared Services Framework defines the major elements of shared services within

Government and its operation through the Shared Services Centre.

Governance: Who will own and

control Shared Services and to

whom will the SSC be

accountable?

Service & Operating Model:

How will people, processes, and

technology interact to support the

organisation’s strategy? Which IT

services will be offered by the

SSC?

Service Level Management:

How contractually will the SSC

engage with Ministries based on

agreed services set of services?

Sourcing: How will services be

delivered and managed based on

the nature of services?

Chargeback: How will the SSC

cover costs incurred when

providing service to its customers

in a fair and transparent manner?

Technology : What technology is

going to support the service

provision of the SSC ranging from

application architecture, technical

architecture and data

management?

Performance Management:

How does the SSC measure its

performance against

commitments made to customers

e.g. Performance Reports&

Balance Scorecards?

Organization : How will the SSC

be organized to fulfill the defined

services and processes?

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The IT Shared Service Operating Model defines the interaction between people, process and

entities involved in IT service delivery

Operating Model – Overview

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SSC Government

Relationship Management

SSC Services

• Programme & Project Management

• Application Development

• Application Maintenance & Support

• Infrastructure & Security

Government Retained IT

Services:• Enterprise Architecture

• IT Strategy & Planning

• Ministry Specific Architecture

• Requirement Gathering

• Ministry Specific Application

Solution Development

SSC Support Function Resource Mngt, Contract Mngt, Performance Mngt,

Vendor Mngt, Quality Control, Risk & Compliance

SSC EnablersService Level Management, Chargeback Management,

Service Performance and Reporting

Government IT

Shared Service Centre

Data Centre

ICT Marketing &

Communication

Vendors

Kenya Government

4. Vendor Management

Interaction with SSC:1. Strategic Direction & Planning

and Engagement

2. Implementation, Maintenance and

Projects

3. IT Support to Ministries

4. Engagement with Suppliers and

Contractors

SSC Government Relationship Management

Central Government

1. G

RM

3. H

elp

De

sk

2. S

SC

Se

rvic

es

Local Government Government Parastatals

Project Delivery

Capacity

Project Delivery Capacity• Project Management Capacity for the

delivery of the Shared Services

Project

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Government Business Processes

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SSC Operating

Model

The IT Shared Services Centre organization will deliver key functions to enable the

effective delivery of IT services to the Government

IT Service Model – Target

State

Organization Design – Functions

Shared Services as enabler for Citizen Focused Services

IT Shared Services will enable the Government to provide excellence in citizen

focused services, by being the foundation of IT in Kenyan Government.

Scenario 1: Complete user control to access Government services

Public Government Employees Quasi Government

Sign In &

Request Service

Sign In &

Request Service

Sign In &

Request Service

Government Portal – Single View of the Kenyan Government for all users

Citizens will be able to access Ministry

Websites, apply for passports, driving

licences all online.

Employees will be able to access

Operational Applications (ERP) and have

a single version of the data at any time.

Quasi Government will be able to access

Operational Applications and retrieve

reports as per specific requirements.

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IT Shared Services will enable the Government to provide excellence in citizen

focused services, by being the foundation of IT in Kenyan Government.

Scenario 2: Potential Improvements to application processes (e.g. Birth Certificate)

Current State Target State

1 Citizen travels to Nairobi to make an Application

(e.g. for a Birth Certificate)

2 Citizen queues for an application form in the

Ministry.

Citizen returns home to fill in the Application. 3

4 Citizen travels to Nairobi to submit the Application

by paper.

5 Ministry processes the application and may request

by letter further information from the Citizen.

6 Citizen travels to Nairobi to receive final documents. For

Birth Certificates this has been known to take 2 years.

7 Citizen receives final documents

1 Citizen accesses Government Portal for

Application.

2 Citizen completes application online.

3

4 Online processing speeds up the end to end

lifecycle of applications.

5 Citizen downloads final documents securely and

officially from Government Portal.

Ministry processes the application and may request

further information from the Citizen by email.

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Shared Services as enabler for Citizen Focused Services

Kenya IT Shared Services in a Cloud

Local Government

Quasi

Government

organisations

IT Shared Services

Cloud

Provide content,

utilise services

Infrastructure

Services

Citizen

Services (e.g.

Web, Lands,

Immigration)

Ministry

Functions

(HR, Finance,

Procurement)

Application

Interoperability

Public Access

(home, internet

kiosk, PDA)

Disaster Recovery Site

To deliver Technology seamlessly across Government, an IT Shared Services Cloud

will allow common services to be provided effectively, efficiently and in real-time.

Central Government

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© 2010 Accenture - Proprietary and Confidential24

The primary responsibilities of the Regional Hubs are:

1. Direct End User Service Delivery

Provide IT Support

Provide IT Training

Manage Customer Relationships

2. Enable better Technology Service Delivery

Faster access to network-enabled applications

Backup and Disaster Recovery

Regional Hubs are not IT Shared Service Centres.

Regional Hubs exist to extend IT SSC services on a

personal basis through face-to-face IT support, training

facilities, and regional relationship management. In

addition, they act as mini data centres with the

appropriate infrastructure in place to facilitate faster and

redundant access to technology applications.

Operating Model – Regional Hubs

A single IT SSC with Regional Hubs enable Local Government IT SSC to extend end

user services and enhance technology service delivery physically.

IT Shared Services Evolution - Centre, Tech, Citizens

Shared Services Capabilities

• Implement Operational and

Governance model

• Develop standards

• Implement asset and vendor mgmt

End User Computing

• Implement Portal Phase I

• Begin global desktop, email and

active directory

Foundational IT

• Develop data management strategy

Operational Applications

• Implement Financial Management

Shared Services Capabilities

• Roll-out service management

End User Computing

• Complete global desktop, email and

active directory

• Implement Portal Phase II

Operational Applications

• Build content management

• Implement operational cross ministry

applications

Foundational IT

• Implement global business

intelligence

End User Computing

• Roll out of desktop management for

all non-central government

employees

• Assessment and implementation of

of a citizen facing CRM/portal

application

• Assess mobile phone technologies

for citizens and government

employees

• Assess visual collaboration options

across government

Phase 1 – Creation of an operational

IT Shared Services CenterPhase 2 – Roll out of enabling

technologies

• Year 1-2 • Year 3-4 • Year 4+

Operational

Strategic

Partner

Phase 3 – Increase impact to citizens

Phase 1 of Organizational Design Phase 2 of Organizational Design Phase 3 of Organizational Design

IT in the Kenyan Government will evolve from primarily supporting client computing

to being a strategic enabler of Government functions.

Visual

Collaboration

FY2011 FY2012 FY2013 FY2014 FY2015+

En

d U

se

r S

erv

ice

sA

pp

lic

ati

on

sA

rch

ite

ctu

reC

ap

ab

ilit

ies

Email Phase I Email AD Phase II

Mobile Enabled Services

Desktop Management

Phase I

Desktop Management

Phase II

Desktop Management

Phase III

Help Desk

End User Tools

Portal Phase I Portal Phase II Portal Phase III

SMS Enquiry & Mobile Payment

Operational Application

Assessment

Financial Management System

Human Resources / Payroll SystemProcurement System

Document / Content

Management SystemLocal Authority / Ministry

Application Growth

LA / Ministry Application Re-

engineering & Migration

Citizen CRM Assessment

Infrastructure Management

Technology / Application

Architecture

Network Advancement

Disaster Recovery / Business

Continuity

Global Data

Management

Business Intelligence

Service Management

Operating Model

Governance Model

Asset / Contract Analysis

Enterprise Architecture &

Info Structure Schema

Staffing, Recruiting and Capacity Building

Training

Govt. Relationship Mgmt.

Asset Management

Global Security

App. Dev. / App. Support

Project Management

Local Government Specific Initiatives

Citizen CRM Implementation

Telecom (VoIP)

Document Conversion / Scanning

Smartphone Applications

Central Government Specific Initiatives

Central and Local Govt Shared Services Roadmap

IT Shared Services Centre will increase the number and quality of services. Visibility

of IT spend while delivering current services and projects at lower cost.

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Operational IT

IT Projects

Operational

IT

IT Projects

“As is” cost

and impactImpact updates

• Very little spend on Applications or Project Management

• Redundant and overlapping projects across ministries

• Siloed processes for acquiring hardware and software licenses

• Individual data centres for each ministry

• Consider consolidated procurement process for hardware and software

• Removal of extraneous data centres

• Standardized Desktop Offering

• Increase in applications to streamline business processes

• Improved quality and services offered

• Increase quality and visibilityof IT spend

Current cost impact

“To be” cost

structure

New IT

Services

• Increase in capabilities and operational applications available to ministries

• Increased support services and standardization of services

Increasing Number and Quality of Services

Shared Services Benefits Overview

Centres of excellence allow for

the development of specialized

skills which can be leveraged

across the organization

Consolidated functions and

processes eliminate

redundancies and minimize

the cost of transaction

processing activities

A shared services utility acts as

an organizational infrastructure to

ease reorganization of operating

departments

Standardized practices and

compatible data provide a

common language and feel to

diverse operating units and

facilitate analytical decision-

making

A focused, specialized,

service-oriented support unit

ensures that operating

department needs and issues

are addressed in a timely

mannerResponsiveness

Economy of

Skill

Economy of

Scale

Flexibility

Standardization

Shared

Services

Benefits

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Government Shared Services will deliver many benefits, including

responsiveness, maximize use of resources, standardization and flexibility.

Documents

Shirikiana Shared Services Master Plan 2011