final ann. rep. 0 (converted)-5...final ann. rep. 0 (converted)-5 1/17/05 4:23 pm page 5 composite c...

FINAL ANN. REP. 0 (Converted)-5 1/17/05 4:23 PM

Composite

C M Y CM MY CY CMY K


Composite


MITTS Ltd Annual Report 2003

Table of Contents

Chairman’s Statement 2

Here We Grow Again 6

Sustaining Investment in ICT Growth 10

Partnership with Clients: Oiling the Clockwork 14

Committed to Continuous Improvement:Unlocking the Potential of Our People 16

A Commitment to the Future 19


Composite


This is the final occasion on which it is my privilege to write a foreword to a MITTS Ltd annualreport. In January 2005 I am stepping down as Head of the Public Service and as Chairmanof MITTS Ltd. These two roles are closely interlinked because of the core function of MITTSLtd, which remains that of supporting change in the Public Service through the exploitationof information and communications technology.

I have been a member of the board of directors of MITTS Ltd since the incorporation of thecompany in November 1990. I have served as Chairman for these last eight years. Keyachievements during these years include the development and upgrading of the MaltaGovernment Network; the introduction of e-mail and its diffusion throughout the Public Serviceas from 1996; the preparations for Y2K, a largely forgotten event today but one which representeda major exercise in contingency planning and precautionary work; the development of a majorpresence for the Public Service on the Internet, with 56 ministry and departmental websitesin addition to the main portal (www.gov.mt); the introduction of transactable e-governmentservices; and, more recently still, the development of information security procedures andexpertise.

It is no exaggeration to say that, with the support of MITTS Ltd, the Public Service has gonethrough a silent revolution. Every single back office process in Government departments isdependent on information technology. If, today, Malta’s progress towards the objectives of “e-Europe” compares very well with those of other EU member states, this is in considerablemeasure thanks to MITTS Ltd.

However, constant change in the Public Service has been matched by constant change onthe part of MITTS Ltd itself — to develop new areas of expertise in line with the needs of itsclient, to keep up with technological change, and to maintain its strengths at a time when therapid expansion of the local IT industry was leading to fast staff turnover.

MITTS Ltd succeeded in fulfilling its mission and in adapting itself to meet new requirementsthanks to the excellence of its management team and the commitment of its workforce. Thecompany kept its staff on board throughout the constant internal changes, without compromisingits pursuit of high standards. Care was taken to limit the damage caused by change; therewas no chopping and changing for its own sake; values were constantly promoted and targetswere set, but time was also taken to appreciate the efforts and attributes of staff and to givecredit to their achievements. The investment of time and patience has proved to be thecornerstone of successful change management.

Another cornerstone of a well-run company is a proper understanding by key players — seniormanagement, the directors, the Chairman — of their respective roles. The Chairman shouldrefrain from constant involvement in day-to-day management. Yet he should remain alert tothe need to intervene and be quick to do so when necessary.

Chairman’s StatementJoseph R Grima


Composite


Directors: Joseph W Izzo, Elizabeth Micallef

Joseph R GrimaChairman

As Chairman I did not hesitate to take tough decisions when these were needed, or to intervenewhere I could add value to the company. Examples of such interventions include the developmentof contacts with the UK and Canada which enabled MITTS Ltd staff to exchange experiences withtheir overseas counterparts, or the commissioning of a technology audit which proved particularlyuseful as an independent yardstick by which to set future directions. However, these wereinterventions by exception. I regarded my most important role as Chairman as that of sustainingthe company in times of difficulty and acting as a source of stability in the best interests of theGovernment (as shareholder of the company), the staff and the Public Service.

My other role of Principal Permanent Secretary also influenced my conduct as Chairman, as itshould have. I was concerned with upholding the core role of MITTS Ltd, of facilitating theexploitation of information and communications technology as a tool to improve efficiency andservice quality within the Public Service. This core role has not always been widely understood.It came under searching scrutiny more than once in the company’s short history. However, theseturbulent periods had the benefit of compelling us to rethink our mission and refocus on ourpriorities.

Today MITTS Ltd is backed in the fulfilment of its core role by the Central Information ManagementUnit within the Office of the Prime Minister and by Information Management Units within ministries.These offices effectively define the requirements which MITTS Ltd should fulfil on the PublicService’s behalf, and in so doing ensure that the goal of exploiting ICT is internalised withinministries.

MITTS Ltd has overcome various challenges, but it will no doubt face new ones as times change.The successes achieved within the Public Service need to be replicated within the wider publicsector. MITTS Ltd is well placed to take the lead in this endeavour, even as it sustains its activitieswithin the Public Service. In the longer term, MITTS Ltd will need resourcefulness to continue toprosper as a strong company within a changing environment; yet again this search for newopportunities and activities should not displace the focus on its core role.

I have every confidence in the company’s ability to meet the challenges of the future. It has astrong management team and a committed workforce. It is with pride and great satisfaction thatI leave MITTS Ltd in the shape it is today.

I wish to record my profound appreciation for the support I have received over the years from otherboard members, who gave of their best and who proved a valuable resource for me and for thecompany. I am equally indebted to the management and staff in MITTS Ltd for their professionalability, loyalty and commitment to the company. The company, and the country, owes them all agreat deal.


Composite


evolutionandgrowth

Throughout the history of humanity the human racehas survived and developed by evolving andchanging, constantly improving from the originalprototype of the human species going through alife cycle process much akin to a completemetamorphosis.

Just like the simple butterfly, a highly adaptablespecies whose life cycle encompassed the stagesof hatching, larva, pupa and fully-fledged adulthood.

Humans also go through a growth process embracingfoetal growth, birth, youth and adulthood. Such aprocess equips them for adapting and surviving ina complex and competitive world which mirrorsnature in many respects.

In today’s commercially diverse world, organisationslike MITTS Ltd must also change to adapt in a highlycomplex environment, developing their organisationaltalent to ensure sustainability and commercialsuccess without which their very existence wouldbe jeopardised and their continuity curtailed.


Composite



Composite


Continuous Refinement: Quality,Teamwork and Process Improvement

In today’s complex, competitive and rapidlychanging business climate, three criticalsuccess factors drive every business –People, Processes and Technology. Withthis frame of mind, throughout 2003, MITTSLtd maintained its commitment towards acontinuous effort to improve the level ofservice provided through the managementof the Information CommunicationsTechnology (ICT) infrastructure base andthrough the ever increasing investment in itsintellectual and human capital. MITTS Ltdhas recognised that developing organisationaltalent is a key leadership responsibility criticalto its success.

MITTS Ltd has also acknowledged that thesecornerstones must be present for continuousimprovement to work. If one is left out theCompany will lose the battle to develop anorganisation that will last. Quality withoutteamwork leaves MITTS Ltd competingagainst itself. Teamwork without processimprovement leaves the Company vulnerableto the market forces. Process improvementwithout quality and value for money leavesMITTS Ltd without clients.

In this regard, 2003 has been characterisedby a sustained effort to continuouslystreamline business processes and providehigher levels of customer service. As partof the Company’s continuing investment inimproving efficiency and effectiveness anumber of resources were also shifted tomore productive and value added roles.

This is the dawn of a new era for MITTS Ltd.The improvements constantly carried outrepresent a refreshing approach tocontinuously contemplate better ways to workeach and every day. MITTS Ltd reallybelieves that every single team member hasthe capacity to make a difference that willsteer the Company forward through ownideas, can-do attitude and enthusiasm. Thisphilosophy represents the beginning of newopportunities to continuously invest in newtechnology and tools, and further streamline

GrowHere we

Again!


Composite


"After over twenty years experience of the delivery oftechnology enabled solutions - spanning manyindustries, countries and governments - rarely have Iseen so much delivered so effectively as that observedin MITTS Ltd. Their philosophy is not just to be thebest, but to continually get better, which is moreimportant."

Peter Shores - Senior DirectorGartner

International Standards applied successfully to theLocal Context.

Ongoing Commitment to Quality Assurance!

In 1998, MITTS Ltd undertook a long term commitment togain ISO 9000 Certification. Initial certification was gainedagainst the ISO 9000:1994 standard. The ISO 9000:1994standard allowed for a gradual scope increase over anumber of years, with the final target of including the entireCompany under ISO scope.

In December 2003, the ISO Auditing firm (SGS Yarsley)conducted a migration audit from ISO 9001:1994 to ISO9001:2000. The audit was successful and MITTS Ltd wasrecommended for certification of ISO 9001:2000 assessedin accordance with the TickIT scheme for all functionswithin MITTS Ltd. This made MITTS Ltd the first companyof its size locally to attain this standard.

The year 2003 also saw the initiation of a mobilisationprocess in order to develop a roadmap for the certificationof the ISO 17799 methodology for the newly formeddepartment of Information Security and Risk Management.

MITTS Ltd – the PRINCE of Project Management

The Company’s vision of having a Corporate ProjectManagement Framework in order to ensure the continuousimprovement of one of MITTS Ltd core competencies hasbeen attained in the first half of 2003, whereby PRINCEII was introduced as the Project Management practice.The Company can now boast of having PRINCE II certifiedproject managers; however, the certification alone is notenough. Thus the Company ensured that its projectmanagement practices were revised and calibrated toensure effective project management governance, alsothrough such practices being entrenched within the scopeof ISO. This with the intention of aiding internalcommunication between the various teams, to standardisework practices with regard to project management, andto have a greater involvement of the client at the criticalmilestones of each project delivery.

Effective Service Management for Effective Service Delivery

The service delivery philosophy embraced by MITTS Ltdis the Open Group Consortium’s (OGC’s UK) Information

internal processes in order to provide a better service andmore value for money to our clients.

The Key to Improvement by Measuring Performance

The sayings, “You get what you measure” and “What getsmeasured gets managed” are well known, and well worn.However, their simple logic is fundamental to MITTS Ltdorganisational behaviour and culture where every employeecan now relate to the objectives of the Company.

The need for effective measures that allow progressivemonitoring of performance improvements and externalcomparisons and benchmarking has proved to be centralto MITTS Ltd pursuit of excellence. MITTS Ltd hasrecognised that without the ability to measure effectively,the journey of excellence cannot even begin.

With this objective, in 2003, MITTS Ltd introduced theconcept of Key Performance Targets and Key PerformanceIndicators with a view that such metrics provide managementand functions with statistical data which will allow to gaugethe effectiveness and / or efficiency of services in its questto assist the Company in the decision making process andin order to steer the Company to the right direction shouldthe indicators show that the targets are not being met.

Targets were not set to meet the Company’s existingperformance at the time, but were intentionally set at highlevels with a view that over the medium term MITTS Ltdcould be attaining such ambitious targets. After the firstyear of measurement, it transpired that the results weremuch higher than expectations proving the point that therationale of having a key performance target frameworkserved the purpose extremely well in so far as having aguide for continuous improvement.

MITTS Ltd will in 2004, continue with the refinement ofthese performance metrics and results will be continuouslyreviewed so that proactive actions are undertaken toconstantly improve technology, systems and processes butabove all, to always provide value for money services toclients.


Composite


Technology Infrastructure Library (ITIL). A number ofprocedures, namely: incident; problem; change and servicelevel management have been successfully implementedand audited and included within the ISO 9001 certificationcarried out in January 2003. This service managementphilosophy brought about a transformation in the wayservices are now delivered to clients, as with improvedand tighter disciplines introduced in 2003, together withthe Company Value of being client focused, saw a paradigmshift in effective management of the MITTS Ltd servicesdelivered to clients.

MITTS Ltd has also continued with an across the boardaccredited development programme for ITIL, targeting allproject and services managers, line managers, project andteam leaders.

Further Calibration of the Organisational Set-up

MITTS Ltd acknowledged the need to be innovative, beingopen to new technology and how this can simplify businessprocesses and enable increased efficiency both internallyand externally. In the same way as being innovative,MITTS Ltd has recognised the need of being flexible,quickly adapting to changes. The fast pace of newtechnologies being introduced and adopted has in turnbeen reflected in the way MITTS Ltd is conducting businessso as to remain client focused and provide value for moneyservices. Hence, a number of refinements to theorganisational structure were implemented to quicklyrespond to changing business environments. Majorcalibration was carried out within the Service Managementfunction in order to be more pro-active in the way servicesare delivered to MITTS Ltd clients. Such calibration,however, was also coupled with the introduction oftechnology tools and the re-design of processes in orderto make the transition more effective.

Proactive Command and Control

With the advent of 24x7 services, all professional serviceproviders that offer such availability are required to havean internal set-up that is indeed 24x7. With a massive roll-out of e-Government services in 2003, MITTS Ltdrecognised that such a service level deserves a round-the-clock assurance mechanism.

Thus, in order to ensure the maintenance of high levelservices any time and any day, and in order to ensure alocum of responsibility should a crisis occur, in 2003 MITTSLtd established a Command and Control Centre (CCC)within the Service Management Department. Its remit alsoincludes special focus on introducing more proactivemonitoring and anticipating problems through the utilisationof automation techniques; transferring certain tasks androutine jobs during the late hours and doing more thingsremotely through the proper utilisation and exploitation oftools. 2003 was a mobilisation period, whereby a pilotNetwork Management System was introduced and a 24x7shift was launched towards the end of the year. It isenvisaged that by mid 2004, the Command and ControlCentre will be fully functional at near to optimum levels.

During 2003, MITTS Ltd also took a proactive approachthrough initiating the compilation of a Company standardframework and a set of procedures for the formalestablishment of a Crisis Management function in order tobe in a much better position not to jeopardise the Company’sability to operate and deliver services that clients havebecome mainly dependent upon and in order to have acontrolled approach with crisis situations such as virusattacks, that may hit at any time of the day and night.

Is MITTS Ltd living by its Corporate Value of beingClient Focused?

In 2003, MITTS Ltd commissioned a surveying companyto carry out a customer survey targeting its client’sperception of the quality of services provided. This surveyproduced excellent results for MITTS Ltd, with levels ofsatisfaction rated in the region of 80% (median) with someservices or perceptions reaching a high median of 90%.Such outstanding results have put additional pressure onMITTS Ltd not only to maintain but also to possibly exceedthese levels of service provision in the future.

Towards an e-MITTS

During the first quarter of 2003, MITTS Ltd initiated a driveto move towards an e-MITTS in order to continuouslyimprove internal operations, costs and interaction withclients. The e-strategy framework developed which isbusiness driven, is based on a dual parallel approach –targeting both the internal and external fronts.

Moreover, the e-strategy has been articulated around theprinciples of what can be achieved in the short-term (thushaving quick wins that not only generate victories but alsoenable MITTS Ltd to learn what works and what doesn’t)and what can be carried out in the medium to long term,thus giving a long term visibility of where the Companyshould be heading in this regard.

On the internal front, the Company will continue to striveto address operational process issues by implementingelectronic transactions in its interaction with employees.Quick wins carried out in 2003 included:

• The on-line application forms for the movement of fixedassets.

• The launch of the MITTS Ltd Intranet.• The launch of the MITTS

Ltd internal newsletter.• The launch of the

e-Learning in i t ia t ive.• The launch of the first

phase of e-HR.• The revamping of Say-

It, the MITTS Ltde-Comments ande-Suggestions system.


Composite


• The introduction of the tools whichenables users to rely on proactivebusiness alerts and keep managementupdated about all areas of financialoperations.

From a service delivery perspective, the e-Strategy is targeting to enhance the smoothdelivery to clients by increasing the efficiencyby which the Company will operate anddeliver its services through electronictransactions. In addition to this, MITTS Ltdclients will be given the possibility to interactwith the Company through its e-Platform ina two-way interactive process.

The other side for external interaction ofthe Company is the relationship with itssuppliers. MITTS Ltd will, during 2004 andbeyond, implement processes that permitsuppliers to interact through its e-Platformin a bid to streamline processes, increasetransparency, efficiency and reducing theoverall cost of the process. Majorbreakthroughs already embarked upon andtargeting the external front, include:

• The launch of the e-Request for Service(e-RFS).

• The launch of the official MITTS Ltdnewsletter in January 2003, namelyITCatalyst.

• The launch of the revamped MITTS Ltdweb site.

• The launch of the Exchequer’s paperlessmodule.

• The introduction of an e-Customer CareSystem.

• e-Procurement Software System forGovernment.

The medium to long term strategy for an e-MITTS will be pivoted on the launch of theMITTS Ltd web services portal which willbe the virtual gateway that will provide userswith the point of entry to a host of servicesand activities. This personalised portaltogether with the introduction of the newService Management System can providean unlimited range of e-Services designedto cater for different users being employees,clients, the public in general and suppliers.


Composite


MITTS Ltd over the past years embarkedon a cohesive strategic programme tostrengthen the operations of the PublicService through its continuous improvementsin the ICT infrastructure, services and theactualisation of ICT projects. In this regard,MITTS Ltd invested substantially tostrengthen the infrastructural ICT framework.This has been done on two fronts.

On the first front MITTS Ltd has invested inupgrading the framework underpinning theICT core services. Investment in this regardrelated to the setting up of GovNet, the webframework, e-mail, disaster recovery andextension of the Computer Centre.Moreover, late in 2003, negotiations havebeen concluded for the provision of a highspeed fibre optic connectivity network thatwill replace the existing Malta GovernmentNetwork (MAGNET) in the Valletta, Florianaand Guardamangia region.

On the second front, MITTS Ltd has investedto consolidate and strengthen its internalICT applications. An integrated ManagementInformation System will consolidate thealready implemented cost and accountingmanagemen t , human resou rcesmanagement and time recording with theservice management environment andproject reporting mechanism.

Investment was also directed towardsintroducing technology management tools.Of particular mention are the HP OpenViewfor the management of MAGNET andMicrosoft SMS.

It is to be borne in mind, however, thatimplementing technology successfully isnever just about technology. Only theeffective integration of people, processesand technology will result in a measurableand sustainable, and thus successfulimplementation.

Effective Cost Management for BetterDecision Making

The plans of having the Cost ManagementAccounting Framework (CMAF) fully

ICT Growth

SustainingInvestment

in


Composite


The MAGNET II network will connect fifty-nine (59)Government Ministries and Departments located in theValletta / Floriana / Guardamangia area over a high speed,secure and resilient Fibre Optic Network. FurthermoreGattard House and the Disaster Recovery Site will also beconnected via Point-to-Point Fibre Optic links so as tofacilitate a mirrored real-time operation between these twoData Centres. The service contract also incorporatesService Level and Performance Level Agreements thusensuring the best network performance on a twenty-fourhour basis.

It is anticipated that work on the implementation phase willstart in the first quarter of 2004, with acceptance testingplanned for August 2004 and commissioning for September2004. The last quarter of 2004 will see the migration of thefifty-nine sites from the current network on to MAGNET II.This process will be planned and phased over a numberof weekends so as to ensure minimal impact to clients.

This agreement visibly demonstrates that MITTS Ltdcommitment to work with the private sector is not mere lipservice but rather an integral part of its business behaviourand value system. This ensures that the best of breedideas, technologies and intellectual capital are brought tofruition to ensure cost effective and efficient services toGovernment and the general public.

It is with this spirit of collaboration that this network will bebrought to life at the end of 2004, and operated over thecoming twelve years.

Web Framework, e-Government and m-Government

Given that the Web Framework has to act as the backbonefor the entire e-Government Programme, MITTS Ltdinvested heavily during 2002 and 2003 to scale up thecurrent platform to ensure it meets the throughput generatedfrom the demand, thus ensuring resiliency, scalability andsecurity with an availability service level of 98.5%.

MITTS Ltd also assisted the Ministry for InformationTechnology and Investments responsible for e-Governmentwith the design and management of the core e-GovernmentICT framework and participated in the establishment of them-Government gateway. The architecture of the latter was

"Managing Malta's largest network and theGovernment of Malta's complex NetworkInfrastructure is a critical task for MITTS Ltd. HewlettPackard commends MITTS Ltd proactive approachtowards network management through HP'sOpenView Network Node Manager and associatedprocesses and policies implementations. HP waspleasantly surprised with MITTS Ltd technicalcommitment and forward thinking culture."

Alberto Caprara - Sales ManagerHP European Emerging Markets

functional (with the exception of the Project ManagementModule) by the second quarter of 2003 were successfullyattained, whereby two out of three major CMAF components- the cost accounting engine and the new Human Resourcesand Payroll System were fully functional. Moreover, in thelast quarter of 2003, a sales reporting tool was implemented,whereby such a reporting tool was added to the scope ofthe CMAF half way through the year.

The third component, that is the project managementengine, is in its evaluation stage as the CMAF team isawaiting for the new release of MS Project to be issuedby Microsoft.

A Service Management Culture with the aid ofappropriate Tools

An extremely important aspect of the operation of MITTSLtd is ensuring continuity in the provision of its services tothe levels expected by its clients. MITTS Ltd is committedto various Service Level Agreements and the honouringof these agreements is fundamental to MITTS Ltd successfuloperation.

To this effect, MITTS Ltd has embarked on a project toreplace the existing Support System with a new ServiceManagement System based on ITIL philosophy. Followingthe evaluation of the submissions to a Request for Proposalsissued by the Company, in the last half of 2003 MITTS Ltdcarried out on-site and technical hands-on evaluations ofthe selected system that placed best in the short-listingprocess.

Contract negotiations will commence in the beginning of2004 and the implementation of the new package isexpected to be carried out in a phased manner commencingwith those functional areas that are currently already inoperation, that is, incident, problem and changemanagement together with the first phase of theconfiguration management database. This would then befollowed with the full implementation of configuration,release and service level management. Each phase willcomprise: (i) a process improvement exercise; (ii) themigration of data from various data sources; (iii)configuration of the new system to suit our requirements;(iv) training; and (v) switch over from old to new system(where applicable).

MAGNET II

With the increased availability of new technologies withinthe ICT environment and further to Government’sdetermination to improve its services to meet the evergrowing demands and expectations, it was establishedthat the current network needed to be enhanced.

Late in December 2003, after a year and a half of lengthyand at times difficult and complex negotiations, MITTS Ltdentered into a twelve-year agreement with the Maltacomplc and Melita Cable plc Consortium to replace the currentMAGNET and thus provide Government with a state ofthe art and long term flexible network infrastructure to meetthe increasing needs and dependency of Government onInformation Systems (IS) business applications.


Composite


also recognised at European levels, where during an EUConference on e-Government held in Como, Italy, them-Government solution obtained an EU recognition for itsdesign, scalability and functionality, receiving a ‘Finalist’certificate after being chosen by an independent panel ofexperts as one of the 65 applications representing "thebest practices of public administrations in Europe" from357 proposals.

Centralised Testing and Development Environments

As part of MITTS Ltd efforts to improve its operations,streamline recurrent operational costs and have astandardised environment, a consolidation exercise aimedat having a centralised development and testingenvironment was embarked upon. This initiative was theculmination of a number of proposals that MITTS Ltdgrouped under one project mid way through 2002. Theproject scope included Linux, UNIX, Windows and webbased platforms with the Windows platforms utilising virtualmachine software for the first time in MITTS Ltd.

Work was practically concluded on all initiatives by theend of 2003. MITTS Ltd can now boast of not only havinga comprehensive underlying infrastructure and expertisein quality assurance and in leading technologies but alsoof having a fully deployed Web Test Environment beingused for the testing of web applications prior to release onthe Web Framework. This has already shown a great dealof benefits with the vast majority of issues now beingtrapped at testing stages.

Now that the environments are stable, a process ofdecommissioning of stand alone development servers willbe initiated to gain from the benefits of consolidation.

Alternative Connectivity Project

Early in 2003, MITTS Ltd proposed to the Ministry ofForeign Affairs an alternative communications platformwith the scope of connecting embassies and missionsusing internet along with the networking equipment toprovide the required security. This project also providedfor a sufficient increase in bandwidth and would also allowfor Voice over Internet Protocol (VoIP) transmissions thusfurther exploiting and maximising these alternative links.

The implementation of the Alternative Connectivity projectkicked off in the last quarter of 2003 and is expected to beconcluded in the first quarter of 2004. This will provide anumber of benefits, namely, a drastic overall reduction inmaintenance and support costs as well as an increase inbandwidth that allows for the possibility of VoIP betweenthese embassies and MAGNET together with access toother ICT services and systems provided by MAGNET.Given its success, during 2004, this initiative will also beextended to cover other Maltese embassies and missionsabroad including Libya, Egypt, Tunisia, China and Russia.

MITTS Ltd has also piloted successfully the introductionof VoIP within the Ministry for Social Policy to leveragethese value added services arising from data and voiceconvergence. A formulation of a strategy framework is also

underway to extend these benefits to the whole ofGovernment.

Introduction of Automated Tools

During 2003, MITTS Ltd aggressively piloted the introductionof network and system management tools to provide theCompany with the capacity to be proactive, undertakepreventive maintenance, and automate tasks and therebyreduce the cost of ownership of operations.

The pilot project produced quick-wins and importantmechanisms so as to shift away from the reactive modewith respect to network problems. Through the NetworkManagement System (NMS), the technical resources arenow alerted within a few seconds if a network problemexists on the MAGNET and corrective action is immediatelycarried out centrally, thus drastically reducing the cost ofmaintenance and the service turnaround time to solve anyproblems on the network and network devices.

Moreover, MITTS Ltd will finally be in a position to actuallyhave a Technical Capacity Monitoring and Planning toolthat will allow for better decision making with respect toplanning for increases in capacity of bandwidth, serverdisk space and power, routers and connections, just tomention a few. This will result in improved customersatisfaction and increased service availability.

In 2004, it is planned that additional solutions from theOpenView family suite of toolsets will be graduallyintroduced and added to this building block architecture.This will allow MITTS Ltd to be adaptable so that bothoperations and the infrastructure can respond easily tobusiness change through the combination of people,processes and technology thus automating the dynamiclink between business and IT.

Electronic Government Mail (EGM) Improvements

EGM services have fast become an essential service thatclients cannot do without. The introduction of additionalservices such as Web Mail and Secure Mail have inducedsenior public officials to make more intensive use of EGMservices and have become extremely dependent on itsuse. A further 4,000 Web Mail accounts were activatedin the Ministry of Education for the provision of e-mailaccounts to teaching staff. Overall the e-mail penetrationwithin the Public Service, Schools and Local Councils hasreached approximately 14,000 accounts in 2003.

During the past three years, MITTS Ltd placed considerableinvestment in the EGM infrastructure to ensure that servicelevels are maintained and improved. Due to the increasein Web Mail take up and due to service level assuranceof 99.88% availability, an EGM enhancement project wasinitiated in December 2002 focusing on the partialreplacement of the current infrastructure. This investmentwhich was completed by mid 2003 has improved such aninfrastructure through the replacement of hardware includingfour e-mail servers, that increased internet e-mail resiliency,capacity and also allowed for the implementation of anti-spamming measures.


Composite


In 2004, MITTS Ltd will undertake a studyto look at other different systems that couldpossibly add more benefits to the usersthrough integration of various Groupwareproducts and features, thus providing aseamless collaborative environment.

Server Consolidation

Given the increasing maintenance andsupport costs for Government, therebysqueezing out financing for new investmentand work in progress, MITTS Ltd will bechampioning a process of consolidation inorder to reduce running costs for both MITTSLtd and its clients. The e-mail infrastructurehas already been rationalised, resulting inlower cost and improved performance. Otherconsolidation initiatives are also underway(such as a consolidated new DocumentRegistry System). It is also estimated thatover 200 servers in place across Governmentwill be the target for further consolidation.It is strongly believed and argued thatconsolidation of the data centres and themyriad of servers in place, coupled with theever increasing costs to maintain the currentdecentralised environment, is essential inorder to reduce the total cost of ownershipand reap higher return on investment.However, another important by-product isthe centralisation of IT / IS systems and thusincreased management and administration.

In this regard, MITTS Ltd vision is that thetime is now ripe to move more aggressivelytowards this goal given the soon availabilityof a high-speed, secure and resilient network,through MAGNET II. The real challenge isthat of ensuring that these IT / IS systemsare available to clients in a seamless manner,as though still available within the samebuilding.

This is in line with the National ICT strategyand vision whereby costs can only berationalised through consolidation of theexternal ICT environment and interoperabilityof systems. It is MITTS Ltd firm belief thatconsolidation should orbit around MITTS LtdICT capacity.


Composite


MITTS Ltd has been one of the agents ofchange which catalysed the transformationof the Public Service – both in terms of theinstitutional framework as well as theintroduction of Information Technology asan instrument of change.

A passion for excellence of service and anunremitting drive to add increasing value formoney to clients through the quality ofpartnership and teamwork and the rigour ofbusiness processes remain at the heart ofMITTS Ltd strategy to meet clients’needs speedily and effectively. Mouldingtechnology, people and processes to provideimproved and more cost-effective businesssolutions is the basis of MITTS Ltd success.

Working in partnership with clients ensuresthat MITTS Ltd not only keeps up to speedwith policy developments, good practice andemerging opportunities for developingbusiness, but most importantly, MITTS Ltdis placed in a more favourable position toassist its business partners by understandingbetter their needs and applying state-of-the-art solutions for the attainment of their goalsby meeting and exceeding their requirements.

MITTS Ltd has, however, recognised that itcould not continue to operate as an ‘endto end’ ICT services organisation. It wasunderstood that MITTS Ltd would be far moreeffective if it channelled its resources on thestrategic aspects of ICT to the Public Service;whilst at the same time shedding to theprivate sector work falling outside the definedcore business programme subject to thecaveat that MITTS Ltd financial sustainabilitywould be maintained.

In this regard, MITTS Ltd core business wasdefined as follows:

• P rog ramme managemen t anddevelopment of strategic applications toGovernment, including e-Government.

• Contract and project managementwherein MITTS Ltd acts as clientrepresentatives to Ministries on majorprojects.

Oiling the Clockwork

PartnershipClients:

with


Composite


• Security and risk management.• Infrastructure management and provision of

core services and operations.

Though MITTS Ltd main business remains the PublicService, in 2003, effort for new business was channelledonly towards the activities that are related to the aboveidentified core business. The focusing onto the aforementioned core business areas has allowed MITTS Ltdto bring in the private sector in areas that were traditionalwithin its business domain.

The business development efforts and client requirementsin 2003 resulted in a programme of works that will roll-over to 2004. These roll-overs are in synch with theidentified strategic core business. Such long-termprogrammes are confirmation of the Company’s philosophyto partner with clients and are in line with the objective ofsustainability. The 2003 secured large contracts that willroll-over in 2004 include:

• Anti-Virus Services.• Agriculture and Fisheries Integrated Administration

and Control System (IACS) Project.• Design and Development of Paying Agency

Management System.• Visa Management System.• Immigration Development Project.• Acts Management System.• VAT99 Core System - EU Related Enhancements.• Consultancy to Government for the procurement of

an HRM and Payrol l Information System.• Tax Compliance Unit Integration.• Implementation Assistance for the New Customs

(Danish) System.• Inland Revenue Department Enhancements.• New Vera Continuation.• Accrua l Account ing Impact Assessment .• Data Protection Act Compliance.• Common Database Management Services.• Internet for Schools.

MITTS Ltd also continued to provide support and resourcesto Government to roll-out more e-Government andm-Government services to the public. Major initiativescarried out in 2003 or are currently underway include:

e-Government Initiatives

• Registration for Evening Classes.• e-Rent.• Web interface to the Licence Agency System (LAS).• Web interface to the Legal Case Management (LECAM)

Statistics.• Web Judgements.• Enhancement of the Laws on Malta on the Internet.• Online Vehicle Licence Renewal (e-VERA).• Public Registry On-Line Certificates.• Online Police Reporting.

With respect to e-Government, however, the main thrustwas without any doubt the launch of the Registration andAuthentication mechanism that will allow citizens, businessand agents to have an electronic identity which will be pivotalin instilling trust in the e-Government initiative and willinstigate the roll-out of e-services that require higher levelsof security, especially relating to e-VAT, IRD On-line, andSocial Security Services, whilst it will open the doors forother roll-outs inline with the e-Europe Action Plan.

Given the high penetration rate of mobile devices in Malta,the extensive use of Short Messaging System (SMS) bymobile subscribers, and the potential of third generationmobile telephony, MITTS Ltd is considering m-Governmentto be of strategic importance, both from a profile point ofview and from a technical point of view.

m-Government Initiatives undertaken in 2003 include:

• Development, Testing and Deployment of SMS Gateway.• Notification of Court Deferrals via SMS.• Notif ications of Licence Renewals via SMS.• Development of Adaptive Changes to the e-Customer

Care System for the Notification of Status ofComplaints via SMS.

• Social Benefit Administration Systems (SABS) DirectCredit Advices.

• m-Government Exams System.

MITTS Ltd priority remains that of anticipating clients’ needsand meeting them speedily and effectively. Success willcontinue to be built on long term partnerships with clientswhereby MITTS Ltd will continue to provide solutions andservices of the highest quality and value for money.

"I would like to personally thank MITTS Ltd who in closecollaboration and partnership with my Ministrydeveloped the Integrated Administration and ControlSystem (IACS) with which a complex process has beengreatly simplified.Through the use of the system no forms will be sent tothe applicants, as the information required will be entereddirectly into the system's database during interviewsconducted by Ministry officials. This will reducedrastically the time required by the applicants to submittheir request and the Department's turnaround time toprocess."

Hon George PullicinoMinister for Rural Affairs and the Environment


Composite


MITTS Ltd boasts that one of its major assets, its people,make the difference through their skills capabilities,enthusiasm, outstanding commitment, hard work and theirwillingness to take no detail for granted. The environmentin which MITTS Ltd operates, calls for professionalism,unremitting effort and a high degree of dedication. Onoccasions, work demands an uncommon degree of tact,patience and considerable courage to operate in an everchanging environment.

The Company faces a range of challenges on the personneland professional development fronts. As MITTS Ltdoperates in a highly competitive environment, the fastmoving nature of ICT means that the Company hascontinually to innovate and develop its skills to ensure thatit remains an improving organisation at the forefront ofprofessional practice with the aim of positioning itself asa first choice employer. MITTS Ltd has thus recognisedthat one of the fuels that sustain continuous improvementis its investment towards personal growth and development.

Drive to Manage by Values

The launch of the Values Framework in January 2003was, for the Company, the beginning of a journey to furtherinculcate the professionalism and integrity of its employeesand to define the ‘soul’ of the Company. From a proceduralpoint of view the Company Values were incorporated intothe systems governing the management of people andthese are gradually being reinforced through training andother corporate activities. During 2004 further initiativeswill be embarked upon to continue building within thisframework with the aim of attracting employees to internalisethese values and practice them in their work.

Attainment of ‘Investors in People’ Award

In January 2003, MITTS Ltd commissioned an audit toInvestors in People auditors from the United Kingdom toestablish the Company's requirements for recognition asan Investor in People. The motivation behind the intentto obtain this standard is the leverage that this places to

adopt HR best practices and in being a model employer.To MITTS Ltd satisfaction, it resulted from the preliminaryaudit that nine out of twelve areas for achieving the standardsrequired by the award were already in place. A secondaudit was commissioned in November 2003, whereby theauditors certified MITTS Ltd of having obtained the highstandards required for the award. This was another proudmoment for MITTS Ltd and the culmination of years ofwork.

The Investors in People standard powerfully affirms MITTSLtd belief in enabling its people to improve their knowledgeand skills reflecting the ability to learn, to change and tocontinuously improve work practices and efficiency in linewith the changing requirements of the business and clients.Yet again, MITTS Ltd is the first Maltese medium-sizedcompany to have attained this international prestigiousaward.

Foundation for Human Resources Development Awardfor HR Strategy to Business Success

In November 2003, MITTS Ltd was also honoured by theFoundation for Human Resources Development (FHRD)with the award for ‘Best HR Strategy to Business Success’through the corporate MITTS Ltd human resources strategy.Such an award was conferred on MITTS Ltd by anindependent body, thus confirming that by local standards,MITTS Ltd is truly making the mark.

Most importantly, the award signifies that the work beingcarried out in human resources is truly beneficial to theoverall strategy and business success of the Company.

Sustained Investment in Intellectual and Human Capital

Continuous improvement cannot be sustained through thestatus quo. During the last two years, MITTS Ltd investedheavily to re-train and re-skill employees primarily from thefirst level support strata to more specialised activities suchas Information Security Management, Internet and WebAdministration, Database Administration and Networking.This was also possible as the Company enjoys a relativelyyoung, adaptable and flexible workforce, with 70% ofemployees within the age group of 18 – 35 years.Throughout 2003, MITTS Ltd continued to invest in a

"MITTS Ltd as an organisation approached achievingthe National Standard for Investors in People througha planned and proactive approach to improvingbusiness performance through the development oftheir people. The positive approach taken was one ofwhen will the Company achieve the Standard and notif. MITTS Ltd have committed to being reviewed on aregular basis which demonstrates its commitment tocontinuous improvement through the ongoingdevelopment of its staff."

Mark Wem - AssessorInvestors in People

Our People

Committedto Continuous

Improvement:Unlocking the

Potential of


Composite


sustained manner in its intellectual andhuman capital to ensure that the Companyembraces new ICT skills as well as to re-skill and re-train staff where appropriate.

During 2003, MITTS Ltd invested heavilyin human resources training anddevelopment. Specific attention was directedtowards accredited courses, mainly focusingon CISCO – CCNA, programming withVB.net, ISEB 02 Certification in DataProtection, Linux Red Hat, Biz Talk, VMWare, Business Objects, Prince 2practitioners and the accredited ITILManagement foundation. In all, over 70courses were organised with audiencesreaching 600 attendees. This investmentwas translated into an average of 8.4training days per employee. A very highaverage compared to industry standards.

Investment in human resource developmentwill continue to target IT capabilities andskills in order to improve work practicesand processes, minimising administrativeand clerical effort and increasing what addsmost value. MITTS Ltd success in retainingits high calibre staff is never taken forgranted.

Management and Business DevelopmentProgrammes

A certified Management DevelopmentProgramme (MDP), held in collaborationwith the Malta University Services Ltd forall middle managers was designed andconducted in 2003, spanning over a threemonth period, with the aim of updating anduplifting the management skills andtechniques of middle managers in order tohave stronger and more consistentmanagement practices across theCompany.

Moreover, a Business DevelopmentProgramme of seven sessions targetingBusiness Development Managers held incollaboration with the Malta Institute ofManagement (MIM) was conducted so asto certify Business Development Managersin the latest Business to Business marketingtechniques. This certified and tailor-mademarketing programme reached its overallobjective of assisting and furtherstrengthening the Company values of beingclient focused and professional and ofcontinuously seeking improvement withinits business philosophy of adopting a marketoriented mentality.


Composite


Stone Over Stone: The Building of a TeamCulture!

The third phase of the teambuilding sessionswere organised on a corporate level by theHR Group with the assistance of an externalfacilitator. The feedback received from theparticipants showed that this initiative wasvery well received and that it has to a largeextent achieved the expected result.Measuring the direct return of such initiativesis difficult, yet based on the feedback receivedfrom the facilitator of the sessions, theInvestors in People auditor and theparticipants themselves, the goal of breakingdown the barriers between people within theCompany to work better in teamenvironments is being achieved.

This spirit is being translated into moreeffective teams that learn how to worktogether, where difference in departments,roles and skills are not being seen as adividing factor, but as a complementary onein order to reach the Company’s objectives.

MITTS Ltd Day on Easter Monday is aninvestment on teambuilding par excellence.

Awards for Excellence

In order to continue to recognise and rewardthose teams and individuals that havedistinguished themselves above the restwithin the Company, certain changes werecarried out to the MITTS Ltd Awards forExcellence. There are now three categoriesfor the awards, each designed to reward aspecific characteristic which is deemedimportant to the culture and value system ofthe Company. The awards are:

• An award for knowledge sharing,‘Knowledge at the Heart of MITTS Ltd’.

• An individual award for excellence andvalues commitment, ‘Supporting theTransformation’.

• Two awards for outstanding teamachievement, ‘On the Edge’.

Tokens are again being awarded toemployees who celebrate their 10th yearanniversary with the Company.


Composite


An Invitation to Private Industry to Share in thisCommitment

Faced with unprecedented pressures of tighter budgetsand escalating citizen demands, Governments are turningto the private sector as an important source of talents,skills and resources to be tapped in support of sustainabledevelopment.

In this new era of partnerships, the relationship betweenMITTS Ltd and the private sector is today one of mutualtrust and credibility, in that MITTS Ltd has shown that it isserious in its intent to partner with and involve the privatesector in ICT initiatives.

In 2001, separate contractual frameworks were establishedfor the hiving-off of web site design and the hiving-off ofsmall application development outside of the strategicapplications. In 2003, desktop support of 1,500 PCs wassubcontracted to four private sector contractors.

Such a strategy was, and will continue, to be carried outincrementally and with business responsibility, so as tofocus on the core areas, without, however, jeopardisingthe financial sustainability of the Company and the abilityof MITTS Ltd to maintain and not put at risk the requiredICT investment and technology refresh for public services.

This drive for a greater spirit of collaboration has beenfurther recognised through the MAGNET II initiative thatMITTS Ltd has concluded with the Maltacom plc and MelitaCable Ltd consortium. This new partnership approachhighlights a fundamental shift of thinking, putting behindthe ideology and dogma of the past.

Talk is cheap! Walking one’s talk is a sure sign of integrity.MITTS Ltd has once again honoured its commitment ofwalking the talk.

The future is now. Following a series of discussions withkey local players in the ICT environment, it clearly cameto light that MITTS Ltd could be positioned as a ‘nationalasset’ in assisting local firms to successfully penetratemarkets overseas through its strategic contribution in areassuch as the comprehensive underlying infrastructure; theadoption of international benchmarks; expertise in qualityassurance and the expertise of MITTS Ltd staff in leadingtechnologies. Such a concept has already been acceptedin principle by a numerous number of local ICT organisationsand is complementary to the Strategic Thrusts at a nationallevel of pooling in all local effort in order to position Maltastrongly in the international ICT market.

ICT Public Fora

MITTS Ltd introduced the ICT Public Fora to act as amedium to bring together academics, practitioners, theprivate sector, Government and interested parties to discussand debate salient ICT related themes. Following thesuccess of the first ICT Public Forum held in late 2002,MITTS Ltd in 2003 organised four ICT Public Fora with thefollowing themes:

• ICT for Cyber Smart Kids.• Securing Cyber Space: An Expensive Irrelevancy?• The Great Pursuit: Securing Privacy.• Knowledge Management : St ruc tur ing the

Unstructured.

All of the fora organised were a success; showing theimportance of establishing a debating society on ICT inMalta. This encourages the company to continue thissuccessful series of ICT public discussions.

Partnerships with Organisations

In 2001, MITTS Ltd in partnership with the KummissjoniNazzjonali Persuni b’Dizabilita’ (KNDP) established the“MITTS Ltd Foundation for IT Accessibility” (FITA) for thedisabled. MITTS Ltd is still providing continuous supportto this social partnership for long term sustainability andfurther growth in the social role it occupies. FITA is invitingthe private industry to participate more actively.

MITTS Ltd also teamed up with the Board of IT Studies ofthe University of Malta to establish the Industry to AcademiaPartnership to achieve the common goal of inculcating anInformation Society and Economy. 2004 will see the firstwave of intakes from first year graduate students that weresponsored in the initiation of the agreement.

COMNET-IT Overseas Assignments – Flying the MaltaFlag

MITTS Ltd has continued to collaborate with COMNET-ITand provided assistance in an international workshop on“Planning for e-Government in Southern AfricanDevelopment Community (SADC) Countries” held inMozambique in November 2003 and in a United NationsDevelopment Programme ICT workshop on “National e-Strategies and e-Governance”, held in Baku, Azerbaijan.It is also envisaged that during 2004, MITTS Ltd will continueto assist COMNET-IT in another two international workshopsand training programmes, namely:

• The Commonwea l th Reg iona l Workshopon “e-Government and Sectoral Development”, to beheld in St Lucia during February 2004.

• The SADC Regional Consultation on Nationale-Government Readiness, to be held in Botswanaduring April 2004.

to theFutureA Commitment


Composite


Hence, to position itself tomorrow, MITTS Ltd needs tocontinuously look beyond what is readily at the fingertipsand try to find new ways to improve even the most basicprocesses. It has been the entrepreneurial spirit, hardwork and the ever-increasing teamwork that has broughtthe Company to its present levels. The same spirit is whatwill enable MITTS Ltd to work smarter and be ready tomeet the complex challenges that will face the Companyin the future.

MITTS Ltd will continue to play an active role to assistGovernment to enhance customer service by delivering onthe promise of this millennium: to provide quality publicservices, every time, everywhere, to all.

Embracing Change for a Better Future

The changes that have taken place over the last yearsmark the beginning of an exciting future. At times,professionalism and commitment were tested to the limit,but MITTS Ltd has come through stronger and betterequipped to meet future challenges. Having improvedhowever, does not mean that MITTS Ltd should becomecomplacent. MITTS Ltd acknowledges the fact thatachieving good performance is a journey not a destination.There is still more to be done and continuous improvementwill remain the mantra for the future.

Whilst continuously embracing change for a better future,the focus now will shift from organisational and processcapacity building to increase value added initiatives andreap the return on investment carried out: streamliningfurther the internal and external processes, acceleratingproduct development, maximising the investment inautomated tools and ensuring that the cost structure iskept to the minimum.

final ann. rep. 0 (converted)-5...final ann. rep. 0 (converted)-5 1/17/05 4:23 pm page 5 composite c...

Documents