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Government of Kenya Shared Services

Master Plan Finalization

Panafric Hotel
Nairobi, Kenya
3rd May 2011
Accenture and Accenture Development Partnerships

Accenture

• Consulting – Technology – Outsourcing


Each phase

• 215,000 employees in 53 countries with clients in 120 contains key Shared


Services activities Each activity has a summary,
a full text document, and links
countries to relevant deliverables

• $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

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IT Shared Services – Agenda

Shared Services Overview

Current State Assessment

Target State Recommendations

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IT Shared Services – Agenda

Shared Services Overview

Current State Assessment

Target State Recommendations

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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.

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Project Overview

High-Level Project Objectives

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

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IT Shared Services – Agenda

Shared Services Overview

Current State Assessment

Target State Recommendations

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Current State Assessment Overview

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.

 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

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Key Findings

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


prepared to support major technology-enabled Vision 2030 initiatives.
• 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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Current State Findings – IT Enabled Projects

80+ technology-enabled projects worth over 35 billion KES are in progress or are
planned for delivery across 39 Ministries.
Project Ministry 2009 2010 2011 2012 2013 2014 2015
Digitalization

National Lands Information Management System Lands 4,000 million KES


Total: SX
Billion

High Court Registry- digitization & Application Judiciary TBD (in progress)

Digitization of Company Registry Files State Law 170 million KES (in progress)

Kenya Government Email – Lotus Notes E-Government 2,100 million KES


Education
Total: S14.8 Billion

Education Management Information System (EMIS)


1,010 million KES
Applications

Integrated Financial Management Information System


(IFMIS) Finance
675 million KES
Integrated Personnel & Payroll Database (IPPD)
Public Service 1,000 million KES
All Other Application Initiatives: Develop database
management and ministry-specific processes Various 9,898 million KES

8,482 million KES


KENET – Capacity purchase for Universities
Total: S17.0 Billion

Education
Infrastructure

Government Data Center (GDC) E-Government 2,800 million (continuous) KES

Government Common Core Network (GCCN) E-Government 1,000 million KES


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Bandwidth to E-Government Network InfoComm 1,245 million KES

All Other Infrastructure projects Various 3,486 million KES

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Current State Findings – IT Spend by Component

Higher levels of spending on hardware, reflecting the relatively lower cost of labor
and greater opportunities for non-labor savings.

*Gartner: Overall IT Spending by


 IT spending is significantly lower
18.0% 38.0% 22.0% 3.0% 18.0%
Component for internal staffing than the
average. Kenya’s average IT
worker salary is relatively low
compared to other governments.

*Gartner: Gov't IT Spending by


20.0% 40.0% 19.0% 2.0% 19.0%  Lower software spend reflects the
Component
dominance of manual processes
within Kenya’s Ministries

 Hardware spent is much higher


Kenya Government %IT Spending by
compared to average, reflecting the
Component
68.5% 18.4% 12.6% 0.1% 0.4% Government’s traditional focus on
client computing peripherals and
data centers.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Hardware Personel Software Other Outsourcing

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

Source: Government of Kenya IT Data Collection, June 2010 and Accenture analysis, and Gartner IT Metrics
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Current State Findings – Process & Organization Maturity

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*

• Need consistent,
How business strategies are translated ↑ Process in place for E-Government to define methodological approach
into IT investment and operating the strategy. to building the strategy.
Strategic IT Alignment
plans. How IT impacts enterprise ↓ Defined Strategy and Enterprise Architecture This will gain support to
performance and is measured not realised build IT across
Government.
• Require structured,
How IT decisions are made, sponsored, ↑ Some standards are in place documented portfolio
enforced and how overall IT mgmt
IT Governance ↓ Limited portfolio mgt. Poor budget control.
performance and IT investment • Need clear and
outcomes are tracked ↓ No overall framework unambiguous roles &
responsibilities

↑ Network Infrastructure architecture • Need standardised,


How the strategic execution IT
Architecture documented repeatable and proactive
architecture framework is created and
Management management of
“lived” ↓ Limited Application & Dev. architecture

Current rating None Repeatable Managed 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
Target rating* Initial Defined Optimising
level in all areas.

* 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

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*

↑ Custom solutions have been built in the past, • Need ability to


How systems are built and moved into and good leveraging of package solutions. consistently deliver
Solutions Delivery
live service common initiatives with
↓ Lack processes/frameworks multiple stakeholders

↑ Some key applications have dedicated • Need defined approach to


Service Management How day-to-day operational service is departments defining, delivering and
& Operations planned, delivered and measured 13 ↓ Lack methodology to cope with existing maintaining IT
demand in a streamlined manner. services/SLAs

• Need for incentive


↑ Support from Leadership structures to drive desired
How HR, knowledge and financial behaviour
Workforce & Resource
resources are managed and support ↓ Limited capacity is a risk
Management
services are delivered. • Need to secure capacity
↓ Skilled retainable workforce is a challenge of skilled & motivated
workforce

Current rating None Repeatable Managed 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
Target rating* Initial Defined Optimising
level in all areas.

* 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 & Applications

While there is not a lot of duplication across applications, very few Government core
business functions are automated.

Government of Kenya Application Landscape

Customer Self-Service
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Ministry Citizen Business Self- Govt Employee Citizen
Websites Self-Service Service Self-Service Engagement

Citizen-Centric Government Functions


2 2 3 5
Health & Education & Public Safety & Revenue & Human
Public Works
Welfare Learning Security Customs Services

Operational
15 2 2 1
Finance & HR, Workforce Customer
Procurement IT & Telecomm Other
Accounting & Payroll Service

Enabling and Foundational


Document, 4 1
Information & Infrastructure Disaster Email &
Content End User Tools
Data Mgmt Mgmt Recovery Collaboration
& Workflow

Some level of
Fully automated Not automated Number of applications
automation

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Current State Findings – Data Management

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.

IT Enabled Initiatives (Examples)


Digitalization Applications Infrastructure

Database

Name: John Doe

Date of Birth:
07/12/1980
Finance
Database
Personal ID: 23909871
Name: Kamau Nzioki

Date of Birth: 07/12/1980 >Vehicle Reg E-


Government
Personal ID: 23909871 Database

Information: >Passport/Visa
Immigration
Vehicle Registration Database

Passport/Visa >Tax Records


Judiciary
Tax Records Database
Criminal Records
>Criminal Records State Law
...


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IT Shared Services – Agenda

Shared Services Overview

Current State Assessment

Target State Recommendations

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Key Recommendations

An opportunity of embarking on a transformation journey through Shared


Services Centre exists today

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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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.
Performance Management: Service & Operating Model:
How does the SSC measure its How will people, processes, and
performance against technology interact to support the
commitments made to customers organisation’s strategy? Which IT
e.g. Performance Reports& services will be offered by the
Balance Scorecards? SSC?

Chargeback: How will the SSC


cover costs incurred when Organization : How will the SSC
providing service to its customers be organized to fulfill the defined
in a fair and transparent manner? services and processes?

Service Level Management: Sourcing: How will services be


How contractually will the SSC delivered and managed based on
engage with Ministries based on the nature of services?
agreed services set of services?
Technology : What technology is
going to support the service
Governance: Who will own and
provision of the SSC ranging from
control Shared Services and to
application architecture, technical
whom will the SSC be
architecture and data
accountable?
management?

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Operating Model – Overview

The IT Shared Service Operating Model defines the interaction between people, process and
entities involved in IT service delivery
Government Retained IT
Central Government Local Government Government Parastatals Services:
• Enterprise Architecture
• IT Strategy & Planning
Government Business Processes • Ministry Specific Architecture
• Requirement Gathering
SSC Government Relationship Management • Ministry Specific Application
Solution Development
1. GRM

Interaction with SSC:

2. SSC Services

3. Help Desk
1. Strategic Direction & Planning
and Engagement
2. Implementation, Maintenance and
Projects
SSC Government Government IT 3. IT Support to Ministries
Relationship Management Shared Service Centre 4. Engagement with Suppliers and
Contractors
SSC Services Data Centre
• Programme & Project Management
• Application Development Project Delivery Capacity
• Application Maintenance & Support ICT Marketing & • Project Management Capacity for the
• Infrastructure & Security Communication delivery of the Shared Services
Project

Service Level Management, Chargeback Management,


SSC Enablers Project Delivery
Service Performance and Reporting
Capacity

Resource Mngt, Contract Mngt, Performance Mngt,


SSC Support Function Vendor Mngt, Quality Control, Risk & Compliance 4. Vendor Management Vendors

19 Kenya Government
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Organization Design – Functions

The IT Shared Services Centre organization will deliver key functions to enable the
effective delivery of IT services to the Government

SSC Operating
Model

IT Service Model – Target


State

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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 & Sign In & Sign In &


Request Service Request Service Request Service

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

Citizens will be able to access Ministry Employees will be able to access Quasi Government will be able to access
Websites, apply for passports, driving Operational Applications (ERP) and have Operational Applications and retrieve
licences all online. a single version of the data at any time. reports as per specific requirements.

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

Current State Target State


1 Citizen travels to Nairobi to make an Application 1 Citizen accesses Government Portal for
(e.g. for a Birth Certificate) Application.

2 Citizen queues for an application form in the 2 Citizen completes application online.
Ministry.

Citizen returns home to fill in the Application. Ministry processes the application and may request
3 3
further information from the Citizen by email.

4 Citizen travels to Nairobi to submit the Application 4 Online processing speeds up the end to end
by paper. lifecycle of applications.

5 Ministry processes the application and may request


by letter further information from the Citizen. Citizen downloads final documents securely and
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officially from Government Portal.
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

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Kenya IT Shared Services in a Cloud

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


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

IT Shared Services
Ministry
Cloud Functions Application
(HR, Finance, Interoperability Disaster Recovery Site
Procurement)

Citizen
Services (e.g. Infrastructure
Web, Lands, Services
Provide content, Immigration)
utilise services
Quasi
Government
organisations

Central Government

Public Access
Local Government (home, internet
23 kiosk, PDA)
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.

 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.

24 © 2010 Accenture - Proprietary and Confidential


IT Shared Services Evolution - Centre, Tech, Citizens

IT in the Kenyan Government will evolve from primarily supporting client computing
to being a strategic enabler of Government functions.
Strategic
Partner

Phase 1 – Creation of an operational Phase 2 – Roll out of enabling Phase 3 – Increase impact to citizens
IT Shared Services Center technologies

Shared Services Capabilities Shared Services Capabilities End User Computing


• Implement Operational and • Roll-out service management • Roll out of desktop management for
Governance model End User Computing all non-central government
• Develop standards employees
• Complete global desktop, email and
• Implement asset and vendor mgmt active directory • Assessment and implementation of
of a citizen facing CRM/portal
End User Computing • Implement Portal Phase II application
• Implement Portal Phase I Operational Applications • Assess mobile phone technologies
• Begin global desktop, email and • Build content management for citizens and government
active directory • Implement operational cross ministry employees
Foundational IT applications • Assess visual collaboration options
• Develop data management strategy Foundational IT across government
Operational Applications • Implement global business
• Implement Financial Management intelligence

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


Operational

• Year 1-2 • Year 3-4 • Year 4+


Central and Local Govt Shared Services Roadmap

FY2011 FY2012 FY2013 FY2014 FY2015+

Email Phase I Email AD Phase II Telecom (VoIP)


End User Services

Mobile Enabled Services SMS Enquiry & Mobile Payment Smartphone Applications
Desktop Management Desktop Management Desktop Management Visual
End User Tools
Phase I Phase II Phase III Collaboration

Help Desk Citizen CRM Assessment Citizen CRM Implementation

Portal Phase I Portal Phase II Portal Phase III

Financial Management System Document Conversion / Scanning


Applications

Operational Application Procurement System Human Resources / Payroll System


Assessment
Document / Content Local Authority / Ministry LA / Ministry Application Re-
Management System
Application Growth engineering & Migration

Infrastructure Management
Architecture

Technology / Application Disaster Recovery / Business Global Data Business Intelligence


Architecture Continuity Management
Network Advancement

Service Management Project Management


Operating Model Asset Management
Governance Model Global Security
Capabilities

Asset / Contract Analysis App. Dev. / App. Support


Enterprise Architecture &
Info Structure Schema
Govt. Relationship Mgmt.
Staffing, Recruiting and Capacity Building
Training

Central Government Specific Initiatives Local Government Specific Initiatives


Increasing Number and Quality of Services

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.

“As is” cost “To be” cost


and impact structure
Current cost impact Impact updates
• Increase in capabilities and
operational applications
New IT available to ministries
• Very little spend on IT Projects
Applications or Project Services • Increased support services and
Management standardization of services

• Redundant and • Increase in applications to


overlapping projects streamline business processes
across ministries
• Improved quality and services
offered
IT Projects • Increase quality and visibility
of IT spend
• Siloed processes for
acquiring hardware and
software licenses Operational IT
• Consider consolidated
procurement process for
• Individual data centres Operational hardware and software
for each ministry
IT • Removal of extraneous data
centres
• Standardized Desktop Offering

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Shared Services Benefits Overview

Government Shared Services will deliver many benefits, including


responsiveness, maximize use of resources, standardization and flexibility.
A focused, specialized,
service-oriented support unit Centres of excellence allow for
ensures that operating the development of specialized
department needs and issues skills which can be leveraged
Economy of
are addressed in a timely Skill across the organization
manner
Responsiveness

Shared
Services Economy of Consolidated functions and
Benefits Scale processes eliminate
redundancies and minimize
the cost of transaction
Standardized practices and Standardization processing activities
compatible data provide a Flexibility
common language and feel to
diverse operating units and
facilitate analytical decision- A shared services utility acts as
making an organizational infrastructure to
ease reorganization of operating
departments

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