IFMS Overview and Progress Report
Portfolio Committee on Public
Service and Administration
4 March 2015
1
Overview
•
What is IFMS?
•
Why IFMS?
•
Historic Overview
•
Project Stakeholders and Roles
•
Project Reviews and the change in the Solution Architecture
•
Current Status
•
Forward-looking Perspective
What is IFMS?
•
The Integrated Financial Management System (IFMS) programme
is a joint initiative between National Treasury, DPSA and SITA to
modernize and integrate the Public Service’s transversal
information technology (IT) systems for the following domains:
–
–
–
–
•
Human resource management
Financial management (including payroll)
Supply chain management (including asset, inventory and procurement
management)
Business intelligence
The current transversal systems in the Public Service (PERSAL,
BAS, LOGIS, Vulindlela, etc) will be decommissioned as the IFMS
is implemented.
Why IFMS?
Practical
• To replace ageing technology.
•
To avoid increasing costs of maintaining obsolete systems.
Organisational
•
To facilitate ongoing financial, supply chain and human resource management
improvements and reforms.
•
To process and compile data in ways that improve availability of quality
information for planning, reporting and better decision making.
•
To offer the potential to take advantage of new features that today’s technology
presents such as self service.
•
To take advantage of global lessons learned in the management of public
resources.
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WHAT ARE THE POSSIBILITIES?
Using Technology for Strategic Ends
•
To allow officials to transact remotely – applying for leave directly via a web interface,
obtaining reports from mobile devices, etc.
•
To contribute to more informed decision-making by presenting data from several
perspectives.
•
Render business processes more efficient - for example, validation of information
held centrally could be done electronically. Examples range from referencing of tax
clearance certificates, confirming identity numbers with Home Affairs and determining
the extent to which specific vendors engage with government.
•
Automation and standardization of business processes will increase business
efficiency, reduce cost and improve data quality.
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Timeline of Events
ORIGINAL PROJECT SCHEDULE
Phase I
Requirements
Specification
Phase II
Institutional capacity
building
2007
Cabinet informed of
challenges and
Rescheduling of project amended plans;
plan due to institutional acquisition/
and project challenges development of
modules commenced
experienced
2006
2005
2004
2002
Phase out of
FMS; URS and
MSP developed
Budget Council approval
to develop strategy to
renew financial systems
Cabinet approved
IFMS with hybrid
solution architecture
(combination of
COTS and bespoke
modules);
Moratorium on
acquisition of IFMS
type systems
ACTUAL SEQUENCE OF EVENTS
6
Timeline of Events (Cont.)
ORIGINAL PROJECT SCHEDULE
Phase III
Procurement and
implementation
Full scale rollout
2013
2010
Completion of
Asset
Management &
Human
Resource
Management
modules
2011
Completion of
Procurement &
Catalogue
Management
modules
2012
Development of
Inventory module
and Business
Intelligence phase I
(Vulindlela
replacement) began
Development of
Financial
Management
module began
External reviews on
IFMS commissioned
On Integration:
• Partial integration with legacy systems: HRM with PERSAL and
Procurement Management with BAS
• Limited integration between IFMS modules
ACTUAL SEQUENCE OF EVENTS
7
Timeline of Events (Cont.)
Turnaround for revised
implementation
approach
Preparation, systems
transition management and
institutional capacity building
1 April 2017
2015
2013
Cabinet approval
to change IFMS
architecture from
hybrid approach to
single COTS ERP
RFP 1282 closed on 30
January 2015, bids
evaluated, currently in
process of obtaining approval
2014
to appoint successful bidder.
Established PMO
Next steps: Conclude
RFP 1182 (COTS ERP software agreement, procure
software and lead site implementation services and
implementation
hosting infrastructure,
services) published 20 blueprinting, development of
March 2014.
solution, commence lead-site
Objections received,
implementations. Develop
RFP allowed to lapse. National rollout plan
RFP 1282 (software)
published 28 Nov 2014
2016
Conduct testing, compare
parallel-system results,
conclude analyses and
undertake refinements where
necessary
Lead sites go live and
commence national
rollout
ENVISAGED TIMEFRAMES
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Key Project Stakeholders and Roles
National Treasury
• Project Sponsor
• Policy Ownership
– Financial Management
including Payroll
– Supply Chain Management
– Accounting Standards
• Manage Corporate Reference
Data for SCM, FIN
• Manage legacy systems
DPSA
• Policy Ownership
– Human Resource
Management
• Manage Corporate Reference
Data for Human Resource
Management
SITA
• As future PSI 1, develop overall
integrated solution architecture
• Acquire and integrate the
components and services into
an overall solution
• Provide technical support over
the solution lifecycle
• Hosting Services
Ministerial Oversight Forum
IFMS Steering Committee (Steer Com)
IFMS SLA Committee (SLA Com)
IFMS PMO
IFMS Product Boards
IFMS Implementation Committees
Notes:
1 - SITA’s
role as logo
Prime Systems Integrator to develop integrated solution architecture will
Hiding
DPSA
substantially change due to the COTS architecture requiring far less integration effort within
the IFMS.
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Project Reviews
• Three independent reviews on IFMS commissioned in 2013 – done by Ernest &
Young, the World Bank and Gartner.
• One of the elements that was considered during the reviews was the IFMS solution
architecture. All the reviews essentially came to the same conclusion, namely that
the hybrid solution architecture should be replaced by a solution architecture that
consists exclusively of COTS modules.
• Reasons for this conclusion:
·
·
·
On-going maintenance costs of the hybrid system would be prohibitive compared to those of a COTSbased solution.
The development and maintenance of bespoke modules for the IFMS require large numbers of highly
skilled technical professionals, who would have to be retained throughout the project life-cycle.
In the case of a COTS solution, module integration and on-going updates are less complex, and unit
costs and skills requirements are less onerous.
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Benefits of Changing the Solution
Architecture
• Benefits of changing the solution architecture:
· Integration and software development platform challenges will be resolved.
· Implementation of a comprehensive COTS solution will commence sooner and
the overall implementation timeline will be delivered with greater confidence.
· Business processes embedded in COTS solutions are based on international
best practices and will assist in improving the management of resources in the
Public Service.
· Implementation of the COTS solution will enhance the development of skills in
the ICT industry.
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Cabinet Resolution of 2013
• Based on the outcome of the independent reviews, a recommendation was
submitted to Cabinet to change the IFMS solution architecture to a single,
integrated COTS solution, to be implemented with limited customization (a socalled “vanilla” solution).
• At its meeting on 20 November 2013 Cabinet approved the revised approach and
solution architecture of the IFMS.
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Present Status
...we are on track to deliver, but with narrow margin for delays
Solution architecture:
• Work on the hybrid IFMS solution was paused soon after the Cabinet
decision of November 2013.
• Decision taken in consultation with IFMS Steering Committee to maintain
current IFMS functionality at lead sites, until deployment of new modules.
• Engagements with service providers on the “old IFMS” to review the impact
of the change in the solution architecture on existing agreements,
commenced.
• A process has been initiated by the IFMS PMO to gather information on
Public Service policies and procedures as well as information on the current
IFMS blue prints. This information will be used to identify any policy or
procedure that may have to be adapted for a “vanilla” COTS solution, and/or
where the system has to be changed to accommodate the policy and
procedure. Outcomes will be confirmed during blueprint workshops once
implementation partners have been appointed.
13
Present Status (Contd.)
...we are on track to deliver, but with narrow margin for delays
Procurement of Software and Licenses:
•
Initial RFP 1182/2013 (for software and lead site services) published during March 2014.
•
Objections were received from a potential bidder. Legal advice was subsequently obtained and while the
advice was considered, the validity period of the RFP expired and it was agreed not to extend the validity
period.
•
Lessons learned in the process were taken into account in determining the revised procurement approach.
•
IFMS Steering Committee considered and provided clear direction on the preferred approach which entails:
• RFP 1 - Procure COTS ERP software and licences, including ongoing upgrades and support for this
software.
• RFP 2 – Procure services for initial design and configuration ( rollout template) and implementation at lead
sites. Procure hosting infrastructure through separate RFP.
• RFP3 – Procure services for national rollout.
•
Current key priority is to successfully complete the procurement of software within the 2014/15 financial year.
•
RFP 1 was published on 28 November 2014 (RFP 1282/2014) and it closed on 30 January 2015. Bid
responses have been evaluated, currently in process of obtaining approval for appointment of successful
bidder.
•
RFP 2 – for development of rollout template and implementation at lead sites, being developed. A separate
RFP for hosting infrastructure is also being prepared. Intention is to publish these tenders early in 2015/16
financial year.
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Present Status (Contd.)
...we are on track to deliver, but with narrow margin for delays
PMO:
• PMO established, governance charters being developed.
• Panel of service providers with a range of specialised skills is in place to
assist with governance and provide technical support where required.
• Several functions within the PMO are being capacitated through
appointments from panel of service providers (programme management,
strategic systems planning, organisational change management and
communications, probity services).
Communication
• IFMS website launched in October 2014 - www.ifms.gov.za
• Communications Committee established.
15
Present Status (Contd.)
...we are on track to deliver, but with narrow margin for delays
Departmental readiness
• The IFMS team has started with initial readiness reviews in some provinces and
national departments to assess the departments’ technical and organisational
capacity to migrate to the new solution, and to initiate any enhancements that
may be required.
• Detailed readiness surveys to be conducted in all departments to assist
departments to prepare for IFMS implementation.
• Cost implications, hardware requirements and other preparations that may be
required for implementation of IFMS will be communicated to departments as
soon as possible.
16
Interim Systems Considerations
•
Moratorium on acquisition of systems
• Moratorium on acquisition of IFMS related systems agreed by Cabinet in 2005 still in force.
• Departments may approach National Treasury for possible deviations.
• National Treasury agreed to allow interim implementation of LOGIS by any department.
•
The current IFMS modules in operation (HRM, PMM, Item and Service Master and Catalogue
Management) will continue to be supported where lead site (pilot) departments request that
these systems be maintained.
•
Legacy systems (PERSAL, BAS, etc) will be maintained and enhanced where considered
critical for purposes of business continuity until the new IFMS solution has been acquired and
implemented.
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Next Steps
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The high level planned next steps over the medium term are:
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•
•
•
2014/15: Award software RFP (1282 of 2014).
2015/16: Conclude software agreement, procure implementation services and
hosting infrastructure, blueprinting, development of solution, commence lead-site
implementations.
2016/17: Conduct testing, compare parallel-system results, conclude analyses
and undertake refinements where necessary.
1 April 2017: Lead sites go live and commence with national rollout to the rest of
the Public Service.
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Thank you
Questions and discussions
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