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JORDAN WATER SECTOR – IT MASTER PLAN FINAL REPORT TO USAID – AUGUST 2006 VOLUME I – RECOMMENDATIONS
August 31, 2006 This publication was produced for review by the United States Agency for International Development. It was prepared by Emerging Markets Group, Ltd.
JORDAN WATER SECTOR – IT MASTER PLAN FINAL REPORT TO USAID - AUGUST 2006 VOLUME I - RECOMMENDATIONS
Submitted by: Emerging Markets Group, Ltd.
Submitted to: USAID Jordan
Contract No.: AFP-I-00-03-00029-00, Task Order 518
DISCLAIMER
The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government
Jordan Water Sector – IT Master Plan i Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
ACKNOWLEDGEMENTS
Emerging Markets Group would like to acknowledge and thank the many staff from across the Jordan water sector for their commitment to, and active participation in, the IT Master Plan process. Particular thanks are due to Eng. Mohammad Bany Mustafa for his very effective coordination of the ITMP Steering Committee, his attendance at almost all the formal Working Group meetings, and his leadership of his own Collaboration Working Group. Special thanks are also due to Eng. Khaldoun Khashman for his personal championing of the ITMP initiative, and for his insistence on very active participation of his staff in all aspects of the plan’s development. MWI, LEMA and JVA (thanks to the good efforts of Naser Bataineh) similarly deserve recognition for their strong commitment to the process. AWC’s input, while limited by logistical challenges, was extremely valuable to both the IT Organization and CIS/Billing Working Groups.
Thanks are also due to the other members of the Steering Committee who proactively led or participated in their own Working Groups. Almost everyone distinguished themselves in some way. Particular thanks go to Eng. Youssef Hassan whose experience and wisdom guided our EIS Working Group’s development of a working concept. Eng. Hassan co-led the Group with Eng. Suzan Taha whose leadership, deep knowledge of the National Water Master Plan, and repeated and valuable challenge to the project in regard to other donor initiatives, was instrumental to the ITMP’s success. Eng. Isam Bataineh led a strong team of individuals in the CIS/Billing Group who distinguished themselves highly at the start of the process, before being diverted (as talent often is) to cope with other pressing issues in the same subject area. Eng. Ahmad Abu-Sheikah and Eng. Mahmoud Hakouz both stepped in to lead their Groups at a comparatively late stage and successfully achieved a strong recovery. Mahmoud Shloul should also be recognized for his very strong and effective leadership of the Infrastructure Group.
The personal commitment of many of the Working Group members to the process should also be recognized. They are too numerous in number to guarantee that everyone is properly recognized but the particular efforts of Ra’ed Hijazi, Jamal Hijazi, Aysha Abu Allan, Ahmad Abu-Saoud, Tamer Al-Assad, Nadia Al’fari, Reema Al-Hamouri, Bassim Al-Khatib, Ibtisam Al-Saleh, Eman Fakhoury, Jiryes Ghandoor, Fayez Habarneh, Khalil Jammain, Yasser Jariri, Ghalia Kanznakatbi, Feda Muanes, Nidal Saliba, and Majed Qutaishat come to mind. If particular high-performing individuals have been left out, as some will have been, the fault is entirely the Consultant’s.
From outside, we are especially thankful also for the insightful and very supportive input of Ms. Ruba Kajo of the e-Government Unit at the Ministry of Information Technology and Communications.
We thank also the many, many staff and consultants across the sector who endured our interviews and questions throughout the process – they really are too numerous to even begin mentioning.
On a lighter note, the vocal contributions of Eng. Bany Mustafa and Mahmoud Shloul were always entertaining – as were the many jokes and antics of Eng. Khashman, including his impromptu and horribly real impressions of almost the whole ITMP team at lunch in Aqaba.
It is also very important to recognize the deep personal commitment and strong support of Ms. Obaida Hammash, our USAID Cognizant Technical Officer; and of Mr. James Franckiewicz who originally conceived of the project and supported us so well until he departed Jordan in mid-June for a new assignment. Without the dedication of these two individuals the collaborative process used to develop the ITMP would not have happened, and the sector’s ownership of the product would be much less.
Last but certainly not least, special thanks are due to the Consultant team – Hussam Abu Hartheih, Ramez Mallouk, Sanabel El-Rayes of Deloitte & Touche (M.E.) Jordan and Mohammed Musleh of RazorView for their unwavering personal commitment to their Groups, their constructive challenges to the Chief of Party, and their willingness to always go the extra several kilometers. They were so ably supported by Hala Bayyat who not only was always there to catch the dropped ball, but also constantly steered the team so gently in the right direction.
Jordan Water Sector – IT Master Plan ii Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
LIST OF ACRONYMS
ALM Application Lifecycle Management AM/MM Asset Management / Maintenance Management ASG Assistant Secretary General ASP Application Service Provider ATM Automated Teller Machine AWC Aqaba Water Company BCP Business Continuity Planning BI Business Intelligence BMFO Bulk Meter Flow and Operations BoB Best of Breed CCTA Central Computer and Telecommunications Agency CIO Chief Information Officer CIS Customer Information System COTR Contracting Officers Technical Representative CST Core Support Team CTO Cognizant Technical Officer DBA Database Administrator DCMMS Dorsch Consult Maintenance Management System DSS Decision Support System EAM Enterprise Asset Management EIS Executive Information System EMG Emerging Markets Group ERP Enterprise Resource Planning ESRI The Economic & Social Research Institute FAS Financial Accounting System GIS Geographical Information Systems GL General Ledger GMED Groundwater Monitoring and Enforcement Directorate GoJ Government of Jordan GRP Government Resource Planning GSM Global System for Mobile GTZ German Technical Cooperation GUI Graphical User Interface HQIT Head Quarter Information Technology HRIS Human Resource Information Systems HRM Human Resources Management HRMS Human Resources Management Systems ICT Information and Communications Technology IM Information Management IMT Infrastructure Management Tools INV Inventory ISO International Standards Organization ISP Internet Service Provider IT Information Technology
Jordan Water Sector – IT Master Plan iii Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
ITG Integrated Technology Group ITIL Information Technology Infrastructure Library ITMP IT Master Plan KPIs Key Performance Indicators LAN Local Area Network MIS Management Information Systems MoF Ministry of Finance MoPIC Ministry of Planning and International Cooperation MoICT Ministry of Information & Communication Technology MS Microsoft MWI Ministry of Water & Irrigation NGWA Northern Governorate Water Authority NRW Non Revenue Water NWMP National Water Master Plan O&M Operations & Maintenance ODC Other Direct Cost OE Operating Entity OGC Office of Government Commerce PMBK Project Management Body of Knowledge PMI Project Management Institute PMO Program Management Office PMU Project Management Unit PO Purchase Order PVC permanent virtual circuit QA Quality Assurance RFI Request for Information RFID Radiofrequency Identification Device RFP Request for Proposal RJGC Royal Jordanian Geographical Center ROI Return on Investment SCADA Supervisory Control And Data Acquisition SDLC System Development Life Cycle SEGIR Support for Economic Growth and Institutional Reform SG Secretary General SLA Service Level Agreement UFW Unaccounted for Water USAID United States Agency for International Development VoIP Voice over Internet Protocol WAJ Water Authority of Jordan WAN Wide Area Network WIS Water Information System WMIS Water Management Information System
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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY....................................................................................................................... 1 2. BACKGROUND AND INTRODUCTION ............................................................................................. 4 3. STRUCTURE OF THIS REPORT.......................................................................................................... 5 4. RATIONALE FOR DEVELOPING AN ITMP ..................................................................................... 6
4.1. INITIAL RATIONALE .......................................................................................................................... 6 4.2. SUPPORT FOR THIS RATIONALE FROM “AS-IS” ASSESSMENT ............................................................ 6 4.3. OTHER OBSERVATIONS AND LEARNINGS .......................................................................................... 8
5. GOALS AND OBJECTIVES OF THE ITMP........................................................................................ 9 5.1. GOAL ................................................................................................................................................ 9 5.2. OBJECTIVES ...................................................................................................................................... 9 5.3. IMPORTANT QUALIFIERS ................................................................................................................. 10
6. APPROACH TO DEVELOPING THE ITMP..................................................................................... 11 6.1. STRUCTURED PROCESS.................................................................................................................... 11 6.2. SOLUTION OPTIONS......................................................................................................................... 12
6.2.1. In-House Development............................................................................................................ 13 6.2.2. Emergence of Best of Breed Systems ...................................................................................... 13 6.2.3. Local Market Solutions ........................................................................................................... 13 6.2.4. Enterprise Resource Planning Systems................................................................................... 13 6.2.5. Assisted In-House Development.............................................................................................. 14 6.2.6. Application Service Providers (ASPs) .................................................................................... 16 6.2.7. Open Source Platforms ........................................................................................................... 16 6.2.8. The Situation Today in the Utility Sector................................................................................ 16
6.3. JORDANIAN WATER SECTOR IT CONCERNS..................................................................................... 17 6.4. IMPORTANCE OF BENEFITS AND BUSINESS CASES ............................................................................ 18
7. PROPOSED IMPLEMENTATION APPROACH FOR THE ITMP ................................................ 19 7.1. OPTIONS FOR IMPLEMENTATION ..................................................................................................... 19 7.2. ROLE OF HQIT IN IMPLEMENTATION .............................................................................................. 19 7.3. SHORT TERM ACTIONS NEEDED...................................................................................................... 20
8. DESCRIPTION OF COMPONENTS................................................................................................... 20 8.1. HEADQUARTERS IT ORGANIZATION (HQIT)................................................................................... 20
8.1.1. Executive Summary of Workgroup Recommendations............................................................ 20 8.1.2. Current Deployment of IT Resources in Headquarters Organizations................................... 21 8.1.3. The Evolving Relationship Between Headquarters and Operating Utilities IT Functions ..... 22 8.1.4. The Opportunity for Improvement .......................................................................................... 23 8.1.5. Options for Reorganizing Headquarters Organizations IT .................................................... 24 8.1.6. Recommendations ................................................................................................................... 24 8.1.7. Roles and Responsibilities of HQIT ........................................................................................ 25 8.1.8. Relationship between the HQIT and Operating Utilities ........................................................ 25 8.1.9. Role of the IT Board................................................................................................................ 26 8.1.10. The Evolving Role of the IT Board.......................................................................................... 26 8.1.11. Organization Structure ........................................................................................................... 27 8.1.12. Corporatization....................................................................................................................... 27 8.1.13. Proposed Approach to Implementation of the HQIT .............................................................. 27 8.1.14. Detailed Design Issues Still Needing Resolution .................................................................... 29 8.1.15. Moving HQIT to International Best Practice Operations....................................................... 30 8.1.16. Implementation Approach for Policies and Procedures ......................................................... 34 8.1.17. USAID’S Role – Technical Assistance to the HQIT................................................................ 34
8.2. ASSET MANAGEMENT - MAINTENANCE MANAGEMENT (AM-MM) ............................................... 34 8.2.1. Executive Summary of Workgroup Recommendations............................................................ 34 8.2.2. As-Is Situation......................................................................................................................... 36 8.2.3. Major Improvement Areas ...................................................................................................... 37 8.2.4. Future Business Requirements................................................................................................ 38
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8.2.5. Benefits Identification ............................................................................................................. 38 8.2.6. Evaluation of Available Solution Options............................................................................... 39 8.2.7. Costing Assumptions............................................................................................................... 42 8.2.8. Business Case ......................................................................................................................... 42 8.2.9. Risk Factors and Their Mitigation.......................................................................................... 43 8.2.10. Timing of Implementation ....................................................................................................... 43 8.2.11. USAID’S Potential Role.......................................................................................................... 43
8.3. SUPPLY CHAIN ................................................................................................................................ 43 8.3.1. Executive Summary of Workgroup Recommendations............................................................ 43 8.3.2. As-Is Situation......................................................................................................................... 44 8.3.3. Major Improvement Areas ...................................................................................................... 46 8.3.4. Future Business Requirements................................................................................................ 47 8.3.5. Benefits Identification ............................................................................................................. 50 8.3.6. Evaluation of Available Solution Options............................................................................... 51 8.3.7. Costing Assumptions............................................................................................................... 53 8.3.8. Business Case ......................................................................................................................... 53 8.3.9. Risk Factors and Their Mitigation.......................................................................................... 53 8.3.10. Timing of Implementation ....................................................................................................... 54 8.3.11. USAID’S Potential Role.......................................................................................................... 55
8.4. EXECUTIVE INFORMATION SYSTEM (EIS) ....................................................................................... 55 8.4.1. Executive Summary of Workgroup Recommendations............................................................ 55 8.4.2. As-Is Situation......................................................................................................................... 56 8.4.3. Future Business Requirements................................................................................................ 56 8.4.4. Benefits Identification ............................................................................................................. 59 8.4.5. Evaluation of Available Solution Options............................................................................... 60 8.4.6. Costing Assumptions............................................................................................................... 62 8.4.7. Implementation Approach....................................................................................................... 63 8.4.8. Risk Factors and Their Mitigation.......................................................................................... 64 8.4.9. Key Success Factors ............................................................................................................... 65 8.4.10. Timing of Implementation ....................................................................................................... 65 8.4.11. Potential USAID Inputs .......................................................................................................... 66
8.5. CIS/BILLING SYSTEM ..................................................................................................................... 66 8.5.1. Executive Summary of Workgroup Recommendations............................................................ 66 8.5.2. As-Is Situation......................................................................................................................... 67 8.5.3. Major Improvement Areas ...................................................................................................... 70 8.5.4. Future Business Requirements................................................................................................ 70 8.5.5. Benefits Identification ............................................................................................................. 71 8.5.6. Evaluation of Available Solution Options............................................................................... 74 8.5.7. Costing Assumptions............................................................................................................... 75 8.5.8. Business Case – A Quick Win Opportunity To Shape the X7 Rollout ..................................... 76 8.5.9. Risk Factors and Their Mitigation.......................................................................................... 77 8.5.10. Timing of Implementation ....................................................................................................... 77 8.5.11. USAID’S Potential Role.......................................................................................................... 77
8.6. BACK OFFICE SYSTEMS .................................................................................................................. 78 8.6.1. Executive Summary of Workgroup Recommendations............................................................ 78 8.6.2. Budget Preparation................................................................................................................. 78
8.6.2.1. Executive Summary of Workgroup Recommendations .................................................................. 78 8.6.2.2. As-Is Situation ................................................................................................................................79 8.6.2.3. Major Improvement Areas..............................................................................................................80 8.6.2.4. Future Business Requirements........................................................................................................80 8.6.2.5. Benefits Identification.....................................................................................................................81 8.6.2.6. Evaluation of Available Solution Options ......................................................................................81 8.6.2.7. Costing Assumptions ......................................................................................................................82 8.6.2.8. Risk Factors and Their Mitigation ..................................................................................................82 8.6.2.9. Timing of Implementation ..............................................................................................................82 8.6.2.10. USAID’S Potential Role.................................................................................................................83
8.6.3. Projects Performance ............................................................................................................. 83 8.6.3.1. Executive Summary of Workgroup Recommendations .................................................................. 83 8.6.3.2. As-Is Situation ................................................................................................................................83 8.6.3.3. Major Improvement Areas..............................................................................................................86 8.6.3.4. Future Business Requirements........................................................................................................86 8.6.3.5. Benefits Identification.....................................................................................................................87
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8.6.3.6. Evaluation of Available Solution Options ......................................................................................87 8.6.3.7. Costing Assumptions ......................................................................................................................88 8.6.3.8. Risk Factors and Their Mitigation ..................................................................................................88 8.6.3.9. Timing of Implementation ..............................................................................................................88 8.6.3.10. USAID’S Potential Role.................................................................................................................89
8.6.4. Human Resources Management (HRM) ................................................................................. 89 8.6.4.1. Executive Summary of Workgroup Recommendations .................................................................. 89 8.6.4.2. As-Is Situation ................................................................................................................................89 8.6.4.3. Major Improvement Areas..............................................................................................................89 8.6.4.4. Future Business Requirements........................................................................................................90 8.6.4.5. Benefits Identification.....................................................................................................................91 8.6.4.6. Evaluation of Available Solution Options ......................................................................................91 8.6.4.7. Costing Assumptions ......................................................................................................................92 8.6.4.8. Risk Factors and Their Mitigation ..................................................................................................92 8.6.4.9. Timing of Implementation ..............................................................................................................92 8.6.4.10. USAID’S Potential Role.................................................................................................................92
8.6.5. Legal ....................................................................................................................................... 92 8.6.5.1. Executive Summary of Workgroup Recommendations .................................................................. 92 8.6.5.2. As-Is Situation ................................................................................................................................93 8.6.5.3. Major Improvement Areas..............................................................................................................94 8.6.5.4. Future Business Requirements........................................................................................................94 8.6.5.5. Benefits Identification.....................................................................................................................94 8.6.5.6. Evaluation of Available Solution Options ......................................................................................94 8.6.5.7. Costing Assumptions ......................................................................................................................95 8.6.5.8. Risk Factors and Their Mitigation ..................................................................................................95 8.6.5.9. Timing of Implementation ..............................................................................................................95 8.6.5.10. USAID’S Potential Role.................................................................................................................95
8.6.6. Lands....................................................................................................................................... 95 8.6.6.1. As-Is Situation ................................................................................................................................95 8.6.6.2. Major Improvement Areas..............................................................................................................96 8.6.6.3. Future Business Requirements........................................................................................................97 8.6.6.4. Benefits Identification.....................................................................................................................97 8.6.6.5. Evaluation of Available Solution Options ......................................................................................98 8.6.6.6. Costing Assumptions ......................................................................................................................98 8.6.6.7. Risk Factors and Their Mitigation ..................................................................................................98 8.6.6.8. Timing of Implementation ..............................................................................................................98 8.6.6.9. USAID’S Potential Role.................................................................................................................99
8.7. COLLABORATION AND WEB PRESENCE........................................................................................... 99 8.7.1. Executive Summary of Workgroup Recommendations............................................................ 99 8.7.2. Collaboration Issues ............................................................................................................... 99 8.7.3. As-Is Systems Support ........................................................................................................... 100 8.7.4. Major Improvement Areas .................................................................................................... 102 8.7.5. Future Business Requirements.............................................................................................. 104 8.7.6. Benefits Identification ........................................................................................................... 107 8.7.7. Voice over Internet Protocol (VoIP) ..................................................................................... 107 8.7.8. Evaluation of Available Collaboration Platform Solution Options ...................................... 107 8.7.9. Costing.................................................................................................................................. 108 8.7.10. Business Case ....................................................................................................................... 108 8.7.11. Risk Factors and Their Mitigation........................................................................................ 109 8.7.12. Timing of Implementation ..................................................................................................... 109 8.7.13. USAID’S Potential Role........................................................................................................ 110
8.8. INFRASTRUCTURE, E-READINESS AND E-GOVERNMENT ............................................................... 110 8.8.1. Executive Summary of Workgroup Recommendations.......................................................... 110 8.8.2. As-Is IT Infrastructure .......................................................................................................... 110 8.8.3. MoICT Infrastructure Plans ................................................................................................. 113 8.8.4. MoICT and e-GOvernment Plans ......................................................................................... 113 8.8.5. Optimum IT Architecture for the Sector................................................................................ 114 8.8.6. Critical Infrastructure Needs................................................................................................ 115 8.8.7. Costing Assumptions............................................................................................................. 119 8.8.8. Implementation Risks ............................................................................................................ 119 8.8.9. Timing of Implementation ..................................................................................................... 119 8.8.10. Potential USAID Inputs ........................................................................................................ 120
9. OTHER IT COMPONENTS NOT INCLUDED IN THE MASTER PLAN ................................... 120
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10. PHASING OF COMPONENTS .......................................................................................................... 121 11. CONSOLIDATED COST ESTIMATES ............................................................................................ 122
11.1. ASSUMPTIONS ............................................................................................................................... 122 11.2. COST BUILDUPS ............................................................................................................................ 122
12. OVERALL ITMP BUSINESS CASE.................................................................................................. 123 13. SUMMARY OF QUICK WINS POTENTIAL .................................................................................. 123 14. CONCLUSIONS ................................................................................................................................... 123 ANNEX 1 – PROJECT CONSULTANT TEAM........................................................................................... 126 ANNEX 2 – ITMP STEERING COMMITTEE ............................................................................................ 127 ANNEX 3 – ITMP WORKING GROUPS...................................................................................................... 128 ANNEX 4 – SCOPE OF WORK ..................................................................................................................... 129 ANNEX 5 – PROPOSED HQIT ORGANIZATION DESIGN..................................................................... 136 ANNEX 6 – AM-MM-SUPPLY CHAIN BUSINESS CASE......................................................................... 140 ANNEX 7 – CIS-BILLING BUSINESS CASE .............................................................................................. 141 ANNEX 8 – GIS WORKING GROUP TORS ............................................................................................... 142 ANNEX 9 – PHASING OF ITMP COMPONENTS...................................................................................... 148 ANNEX 10 – ESTIMATED FUNDING NEEDS BY COMPONENT.......................................................... 149 ANNEX 11 – OVERALL ITMP BUSINESS CASE ...................................................................................... 150 ANNEX 12 – GTZ TENTATIVE IM HANDBOOK LAYOUT ................................................................... 151
Jordan Water Sector – IT Master Plan 1 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
1. EXECUTIVE SUMMARY
Introduction
The stated objective of the IT Master Plan (ITMP) is to identify a program of maximum benefit for least cost IT investments that will improve the flow of critical information to management decision-makers across the sector and thereby:
Enable significant performance improvement in the sector; Improve policy-making; and, Support sector regulation.
This report presents the recommended program of investments. The program was developed collaboratively by over 50 sector staff (both business users and IT staff) and the Consultant team over the last 6 months. A structured process was used throughout, with sector staff getting hands-on involved in data gathering, analysis and synthesis. The collaborative approach was specifically requested by the sector to ensure that the ITMP program would be owned by the sector, not just by the Consultant. This high level of ownership makes the ITMP much more likely to be successfully implemented – subject of course to USAID and other financing being agreed.
A total of 8 components were originally identified for detailed development by the team (with Back Office subsequently identifying five subsystems) as follows:
Headquarters IT Organization (HQIT) Asset Management - Maintenance Management (AM-MM) Supply Chain Executive Information System (EIS) CIS/Billing System Back Office Systems
Budget Preparation Project Management Human Resource Management Legal Lands
Collaboration and Web Presence Infrastructure, E-readiness and E-Government
Structure of this Report
Following this Executive Summary, a number of introductory sections describe the background and rationale for developing the ITMP. Its goals and objectives and its approach are then discussed, along with a proposed implementation approach developed by the staff/Consultant team.
Each of the eight components is then described in detail, starting with a short executive summary. As-is business process and systems support is discussed and major improvement opportunities identified. Future business requirements and potential benefits are then developed. These enable evaluation of solution options, their subsequent costing, and where possible, development of a business case by quantification and comparison of the costs and benefits. Risk issues and their mitigation are then discussed – and the timing and potential funding involvement of USAID presented.
An overall plan for phasing the implementation of the ITMP components is presented next, along with
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consolidated cost estimates. The overall business case for the ITMP is then reviewed, and quick wins summarized before conclusions are drawn.
Recommendations
In summary the ITMP recommends: Consolidation, followed by extensive training and capacity building, of the three existing
Headquarters IT Directorates into one unit (HQIT) serving the three Headquarters Organizations. The HQIT would ensure sector-wide compliance with standards where appropriate and justifiable, support the Operating Utilities1 (e.g. NGWA, AWC, LEMA) as needed, and operate to internationally accepted best practice IT policies and procedures
Formal systems selection and well managed implementation of an Asset Management - Maintenance Management (AM-MM) system that is tightly integrated with Supply Chain improvements
Development of an Executive Information System (EIS) capable of delivering high quality, accurate, relevant and timely information direct to the desktops of sector leadership and decision makers to support improved sector planning and performance improvement (this will require additional support to begin the institutionalization of performance management across the sector – working most likely on a “middle-out” basis)
Introduction of a business case and additional functionality requirements to support a carefully targeted high quality implementation of the X7 Billing system, following sector leadership’s decision to complete its rollout
In-house or assisted in-house development of a Lands system for JVA and a Legal system for the sector
Formal systems selection and proof of concept to choose between potential Oracle e-Business suite module solutions, and standalone, fully Oracle integrated solutions developed by an experienced Oracle implementer/integrator, for sector-wide support of Budget Preparation and Human Resources Management
Development by an experienced Oracle implementer/integrator of a Project Management system building on ongoing GTZ and potentially MoPIC initiatives
Additional work to define optimum organizational structures, roles and responsibilities to ensure that both Geographic Information Systems (GIS) and data are fully and readily leveraged through appropriate integration with operational IT systems
Phased implementation sector-wide according to a pre-defined use case and deployment strategy of a collaboration tools suite
Selected hardware and communications network upgrades at Headquarters and to connect more remote sites
Appropriate investment in infrastructure management tools and application life cycle tools
Importance of Principles Underlying the ITMP
Just as important as the specific recommendations is the urgent need for the sector, and for the donors, to understand and accept the principles underlying the development of the ITMP. There is a need to introduce more objectivity, rigor and consistency to the sector to justify IT investments and select
1 The term “Operating Utilities” refers to entities that either have been, or likely will be, corporatized and made fully accountable for their O&M cost recovery. Examples at the date of this report include AWC, LEMA and NGWA.
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systems on the basis of business process improvement potential (not just business “needs” in the narrow activity sense). Equally systems implementations must be program managed much more robustly according to accepted best practices, with implementation quality measured on realized business benefits, and transfer of in-depth skills and knowledge to sector staff. Much more regular, detailed and upwardly proactive coordination with donors and MoICT regarding their IT initiatives and plans is also recommended so that the sector can fully leverage, and ensure compatibility with, other IT investments in the Jordanian government sector.
Role of the HQIT
The HQIT will be the champion of these principles. The HQIT component is in fact the critical foundation of the whole ITMP that will build and sustain the skills internally to enable IT to fully support better sector planning, performance and oversight. HQIT will be appropriately sized to reflect the sector’s ongoing decentralization. The principles above represent a major “paradigm shift” in how IT is viewed currently in the sector. Only by successfully embedding that shift, and those principles, in sector thinking will the real and substantial benefits of effective investments in IT be realized. His Excellency the Minister of Water and Irrigation and senior sector leadership have already approved in principle the consolidation of the three Headquarters IT Directorates and there is a pressing need to start detailed planning for this as soon as possible. Significant delay will only lead to erosion of the integrity of the ITMP and continued sub-optimal use of funds.
Our proposed implementation approach uses the HQIT to program manage the implementation of the remaining components of the ITMP. A long term technical assistance project, continuing but deepening the proven collaborative approach used in the ITMP development, will be needed to build, and reinforce through real on-the-job coaching, the capacity and skills of the HQIT2. We support the proposition that USAID fund this technical assistance in full. The scope of the technical assistance would include consolidation, training and capacity building, and subsequent corporatization with its implied operation to commercial norms with the sector paying for and receiving service according to agreed service level agreements. Outside commercial revenues from sale of products and services are also likely in time. To assure project success, the scale and long-term nature of this technical assistance will require that continual ongoing monitoring and evaluation, and periodic checkpoints, be designed in, and performance benchmarks agreed upfront, for both the Consultant and HQIT staff. HQIT will need to be a model organization from both an IT and management perspective.
Costs and Benefits
The total cost of the ITMP, estimated at $22.4M over 5 years inclusive of a 15% contingency, may seem high at first sight. However, the public sector while good at counting the costs of investments is much less used to tracking and accounting for benefits that they yield. It is critically important to note that if implemented properly the benefits that the ITMP can bring to the sector will far exceed its costs. On a very conservative basis, considering only the systems initiatives for which tangible benefits can be derived (Asset and Maintenance Management-Supply Chain and CIS/Billing), the ITMP is estimated to have a potential net value of $7.1M.
Put simply, if USAID were to fund the plan in full, they would give the sector $22.4M in grants, which the sector could then turn into an additional $7.1M in benefits from those grants. In practice, there is clearly a strong argument for co-financing the ITMP with the GoJ here – as is normal practice as the already substantial return to the GoJ is effectively leveraged by the extent of USAID grant financing. Again, we believe our assumptions here to be conservative throughout; and that very significant benefits from systems like EIS, Lands and Budget Preparation have not even been included
2 IT staff in the Operating Utilities would also be expected to benefit from this training and capacity-building – either by direct participation or through staff rotation between HQIT and the Operating Utilities.
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in building this business case.
The only real uncertainty around the business case presented relates to the sector’s ability to fully capture the benefits offered by the rollout of the X7 billing system to which sector leadership is now committed. It is not clear to the Consultant that this can be achieved in such a short time frame given that the rollout will be completed by the middle of 2007. Further discussions would be needed on this issue to explore potential ways to assure full benefits achievement, and avoid a missed opportunity to quickly apply and benefit from the ITMP principles. There is potential for USAID to assist in funding this rollout – by providing outside consulting assistance to ensure benefits realization (given the HQIT will not be established and trained in time) and/or by assisting the sector in paying any costs of the X7 vendor related to system modifications to support benefits realization. However, in the absence of any firm cost estimates for either of the above, no provision for this has been made in the overall ITMP costing.
2. BACKGROUND AND INTRODUCTION
In July 2005 Deloitte Touche Tohmatsu Emerging Markets, Ltd. (now Emerging Markets Group, Ltd.) and the United States Agency for International Development (USAID), signed Task Order number 518 of Contract Number: AFP-I-00-03-00029-00, Task Order 518 for the development of an IT Master Plan (ITMP) for the Jordan Water Sector (the “Project”). The project team3 mobilized in September 2005 under the technical supervision of Ms. Obaida Hammash from USAID as CTO, with Ian Driscall from Emerging Markets Group as Chief of Party.
A Steering Committee was quickly established to provide oversight of the project – with membership initially drawn from both the “Headquarters Organizations” MWI, WAJ, JVA and the PMU and the “Operating Utilities4” NGWA, LEMA5, JVA and the PMU. The then IT Directors of these organizations were all members (with the exception of NGWA), along with the Managing Director of NGWA and additional representatives familiar with the sector’s GIS and National Water Master Plan (NWMP) initiatives6. The Steering Committee was coordinated by Eng. Mohammed Bany Mustafa, IT Director of MWI.
An interim workshop in December 2005 presented the project’s “As-Is” findings7 to a large audience of sector management and staff, USAID, some of its subcontractors, and selected external ministry representatives. The findings were well received and the Steering Committee made a specific request to adopt a collaborative working process to develop recommendations from these findings. As such a process is generally considered best consulting practice, the project and USAID readily agreed to this suggestion and the Scope of Work for the project was modified and a cost and time extension was granted by USAID to accommodate this approach.
Eight Working Groups of 5-7 individuals, this time with broad representation from across the sector from both users and IT staff, were struck8 to develop detailed recommendations for each one of the
3 See ANNEX 1 – PROJECT CONSULTANT TEAM for a full list of the individual consultants involved in producing the recommendations herein. 4 Note that the term Operating Utilities is used throughout this report to refer to any part of the sector’s field operations (water supply, treatment and distribution, wastewater collection and treatment, and irrigation water supply and distribution) that already or potentially could operate as a standalone business unit accountable at least for recovering its O&M costs. 5 AWC could not participate actively in the Steering Committee because of the logistical challenges involved. Their extremely valuable input into the Working Groups is described elsewhere in the report. 6 See ANNEX 2 – ITMP STEERING COMMITTEE for a full list of the members. 7 See the separate PowerPoint presentation entitled “JORDAN WATER SECTOR – IT MASTER PLAN AS-IS AND TO-BE OPTIONS WORKSHOP” previously submitted to USAID. 8 See ANNEX 3 – ITMP WORKING GROUPS for a full list of the Working Groups and their membership.
Jordan Water Sector – IT Master Plan 5 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
eight components identified as a result of the “As-Is” workshop and approved by the Steering Committee. Working with the project team, and facilitated by the Chief of Party, these Groups have gone through a structured analysis process (see Section 6 below) over the last six months to develop the recommendations contained herein.
It is important to note that the Working Group process has in itself already provided significant benefits to the sector through knowledge transfer and skills building with both junior and senior staff. Most importantly, true ownership of the ITMP process and its recommendations has been successfully engendered. This fact has been stated many times by many of the Group members.
Additional “soft” benefits have also accrued from the simple act of bringing individuals with different functional roles together to enable transfer of knowledge about how the sector works and where their own roles contribute to the broader performance of the sector. Similar, and even stronger benefits have resulted from bringing individuals with similar functional roles in different parts of the sector (whether HQ Organization <> Operating Utility or Operating Utility <> Operating Utility). Also, the style of working in groups off-site in a small space with facilitation in both languages and encouragement of input from all, allied with strong follow-up and support of internal meetings by our wider Consultant team allowed good creativity and exchange of ideas, and greatly empowered the Groups who produced excellent work. Group members appreciated the chance to actively participate and learn and deserve continued recognition and encouragement for that.
Lastly the Ministry of Information Technology and Communications (MoICT), represented by Ms. Ruba Kajo participated in our Working Group process and complimented the sector and the project several times for its structured process which is similar to the one MoICT itself is now going through.
3. STRUCTURE OF THIS REPORT
This report is organized into two volumes: Volume I (this volume) containing the recommendations of the report and supporting annexes Volume II containing selected working papers as Annexes from the Working Groups.
This volume describes: The rationale for developing an ITMP The goals and objectives of the ITMP The approach to developing the ITMP The proposed implementation approach for the ITMP Descriptions of the individual components that we are recommending as the ITMP investment
components A summary of our recommendations and a consolidated master plan budget and schedule Other implementation considerations Other IT components not considered in master plan Our overall conclusions
The reader seeking a quick overview of the ITMP and its recommendations is directed first to the Executive Summary in Section 1, then to Sections 4-7, then to the Executive Summaries for each ITMP component in Section 8, and finally to the overall ITMP business case in Section 12 and the conclusions in Section 14.
Jordan Water Sector – IT Master Plan 6 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
4. RATIONALE FOR DEVELOPING AN ITMP
4.1. Initial Rationale
Having made a number of investments in IT in the Jordanian water sector, USAID began to realize the need for a more systematic approach and better coordination of future IT initiatives in the sector. The largest of these investments is the ongoing implementation of nine modules of Oracle’s e-Business suite (the so-called “FAS” project) covering financials and some HR and supply chain functionality. The FAS has been a welcome break with the long tradition within the sector of developing “point” applications with little or no integration that essentially serve only to automate small parts of existing business processes9.
Before making further investments, USAID felt that it was important to develop an ITMP – especially since the sector lacked any “IT Strategy” to focus investments on maximizing the improvement of sector performance by fully aligning systems development with future, best-practice business needs. An IT Strategy would focus investments on improving the quality, integrity, flow and appropriate sharing of information to key decision-makers to support better decision-making and planning.
Such IT Strategies (or ITMPs as used here) are normally considered an essential prerequisite for any IT department in today’s environment. Without such a plan, there is a serious risk that returns on IT investments will be significantly impaired, improvement in sector performance significantly restricted, and planning sub-optimized. USAID further recognized a pressing need to improve coordination of IT initiatives across the three Headquarters IT Organizations and to ensure that donor support of these were optimally coordinated.
As our Scope of Work10 states:
“Until now there has not been a systematic attempt to take a holistic view of the Jordan water and wastewater sector’s IT needs and to develop an IT Master Plan. Such a Master Plan is important in any enterprise or sector-wide IT initiative. It takes account of legacy and ongoing systems implementations but focuses on maximizing the functional benefits of all IT components at minimum cost. In effect it is a “least cost” investment plan for sector IT.
In short, an IT Master Plan is an essential prerequisite to further orderly and effective development of IT in Jordan’s water sector. IT commitments already made have long-term consequences. It is important that any new technology and systems choices build effectively on these prior commitments. New IT choices should only be made after a careful analysis of the success (in return on IT investment terms) of previous systems projects. Careful analysis of the needs, options, integration and technology opportunities and challenges and long term costs and benefits of the options for new IT applications will ensure maximum return on future IT investments in the sector.”
4.2. Support for this Rationale from “As-Is” Assessment
Our rapid assessment of the “As-Is” situation leading up to the December 2005 presentation amply confirmed the above rationale for an ITMP. The critical links between the IT function and business planning and performance improvement were found to be much stronger in the Operating Utilities (NGWA, LEMA, AWC etc.) than in the three main Headquarters Organizations of MWI, WAJ and JVA. Important general observations applying mostly to the latter included:
There is no standard data dictionary for the sector, metadata11 and data exchange standards are largely absent (though some are under development as a result of the USAID-funded GMED and
9 As described in the December 2005 “As-Is” findings presentation. 10 See ANNEX 4 – SCOPE OF WORK.
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GTZ-funded Improvement of the Steering Competence of the Water Sector (SCWS) and Integrated Information Management (IIM) projects)
Data is not always validated at source, the same data are often maintained in multiple systems which cannot be easily synchronized (so as one person put it “there are many answers to the same question”), and data is not shared adequately even when there is a clear business need to do so
In the Headquarters Organizations overall (not just in their IT Directorates), there is no top-down management report hierarchy defined (note that this would normally cover both financial and operational data) – instead there is very heavy reliance on ad-hoc reporting and examples of the same or similar reports being produced by multiple departments
Again in the Headquarters Organizations, individual roles and accountabilities are often not clear or are sometimes overlapping, and performance targets at an individual level and a goal-focused performance appraisal system are absent
There is no single information base and reporting system for senior management to manage performance – instead there are often multiple reporting channels to senior with non-integrated systems and no unified data flow
Systems are very fragmented, have little or no integration, do not generally encourage process improvements or support best practices in their design, custom applications are not developed to any consistent standards and are often undocumented, and there are multiple systems providing the same or similar functionality across the sector
Critical gaps exist in effective systems support of key utility operations, planning and back-office12 processes
Overlap and duplication exists in applications, duties and licensing Bureaucratic paper-based procedures seriously limit productivity and slow decision-making Beyond email, professional staff make no significant use of collaboration tools (e.g. to easily
schedule meetings or manage and share documents easily) Hardware resources and IT budgets are very unevenly distributed between the three Headquarters
Organizations and hardware standardization is restricted by government procurement regulations WAN/LAN connectivity, though generally good, does not connect all important remote sites Written IT policies and procedures do not generally exist Sustainability of IT staff and the ability of the sector to attract higher skilled resources is
constrained by low government salary levels compared to external market salaries While IT staff often have good technical skills, their program management skills, particularly for
large systems implementations are weak
While an ITMP is no panacea, it can systematize the sector’s IT investments, provide consistent data quality, ensure that IT development, implementation and support is carried out to accepted best practice international standards, and act as a catalyst for substantially improving sector planning, management and performance.
11 Metadata (sometimes described as “data about data” are parameters that specify the accuracy, quality, frequency of update, validation etc. of data elements 12 Back office systems are systems that are common to all industries – for example budgeting, accounting and finance, HR management (HRM0
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4.3. Other Observations and Learnings
A number of very important additional observations became clear as our Working Groups developed their detailed recommendations. Key among these are:
Major systems selection decisions are being taken (both internally and with donor funding support) without:
A well documented, business driven and structured approach for systems selection and endorsement at the sector level
Full consideration of future focused, best practice and appropriately “Jordanized” business requirements
Proper alignment of business objectives with the technology track so that benefit/cost cases can be prepared and a clear return on investment targeted
Adequate coordination – both sector-wide and with external GoJ and other entities Clear and specific Scopes of Work being developed that tightly specify the results of the
implementation Major systems implementations are occurring without:
Full engagement by users and IT staff to facilitate proper skills and knowledge transfer Clear plans to fully realize process reengineering opportunities Any upfront definition of potential business benefits (both tangible and intangible13) Clear plans to fully realize these benefits and measure the quality of the implementation by
that realization Program management of major systems implementations, carried out by outside vendors and
consultants:
Is not supported by centralized unit for project tracking, monitoring and supervision Does not follow any standard program management procedures (normally defined by such a
unit) Does not effectively prevent time and cost overruns
Headquarters IT Directorates:
Do not collaborate well and have separate budget and implementation tracks Do not operate to any international standards normally used by IT Departments
These factors all combine to significantly impair the return on IT investments in the sector. An ITMP will provide a systematic framework to ensure that return is maximized.
Another set of observations relates to coordination of IT initiatives – particularly with IT initiatives that are underway in the Jordanian government sector and therefore have the potential to impact all Ministries, but also between donor initiatives in the IT field. As an example, a GRP (Government Resource Planning) package initiative is underway that is supposed to be rolled out to all Ministries and will connect their finance operations back to the Ministry of Planning and International Cooperation (MoPIC). Our MoICT liaison representative was surprised (and pleased) to hear that the sector had gone ahead with its own Oracle FAS ERP initiative but clearly there will be interactions between these two initiatives that will need to be monitored. In short, coordination between the sector’s IT organizations needs to be much more proactive – with regular exchange of each party’s IT
13 Tangible benefits being quantifiable in JD terms (e.g. revenue increases or cost savings) and intangible being less easily or non-quantifiable like better sector decision-making or improved controls on budgetary allocations to better focus limited sector resources
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work plans for supporting IT. An ITMP will be central to such coordination.
Both the sector and the donors that fund (and sometimes even initiate) IT initiatives have a responsibility to effectively address both the systems and the coordination issues above.
5. GOALS AND OBJECTIVES OF THE ITMP
5.1. Goal
The overall goal of the ITMP is to identify a program of maximum benefit for least cost investments in IT (software applications, hardware and communications infrastructure, and IT organization and capacity-building) to improve the flow of critical information to management decision-makers across the sector and thereby:
Enable significant performance improvement in the sector; Improve policy-making; and, Support sector regulation.
Such a planning process will be very familiar to anyone experienced in the sector where new increments of water supply capacity are analyzed through a least cost planning process. The benefits dimension must be added for IT since the outputs of IT projects are much more complex than water.
The anticipated planning and implementation period for the IT Master Plan is 5 – 10 years with the majority of the investments being made in the first five years. After 3-5 years we recommend that the sector repeat the Master Planning process using the same approach (again described below in Section 6).
5.2. Objectives
Within the general goal stated above, more specific ITMP objectives are to: Identify major gaps in current systems coverage, hardware and communications and IT
organization capacity that, if filled, have potential to support significant improvement in sector performance
Define systems, hardware and communications, and supporting institutional development initiatives to fill these gaps by:
Examining the As-Is situation Developing outline Business Requirements that are future-focused, incorporate best business
practices and meet any specific Jordanian needs Develop, where possible, a high-level benefit / cost business case to justify investment in those
initiatives Where this is not possible, describe the targeted business benefits in a qualitative sense Develop solution options and evaluate their pros and cons Recommend a solution option Develop a high-level costing for the solution option Identify what risks must be mitigated to successfully implement the initiative and fully realize its
identified business case or qualitative benefits Suggest appropriate mitigation measures Develop a consolidated program budget and suggested schedule of implementation
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5.3. Important Qualifiers
First, it is important to understand that the ITMP is a list of directional recommendations only. It does not propose final systems solutions for any of the investment areas. The details of these have to be worked out in implementation. What the ITMP does do is to recommend the optimum approach to each investment area – e.g. custom development in-house, assisted custom development, implementation of additional Oracle e-Business suite modules etc. The ITMP also provides examples of potential solutions where appropriate, and in some cases a mock up, estimates costs, proposes the timing of implementation, and identifies risks and mitigation measures to ensure a quality implementation that realizes the benefits used to justify the investment.
The cost estimates provided herein are solely for the purpose of estimating funding requirements. They are required by USAID for its long-term planning and budgeting, and will also help identify any amounts that must be obtained from other sources of funding whether from other donors or the GoJ.
It is also important to note that the ITMP is not a “laundry list” of every systems project and hardware upgrade that the IT organizations must take over the next 5 – 10 years. Not only would this be impossible, it would be self-defeating as the goal is to prioritize and justify the most strategic initiatives. Tactical work plans deal with the smaller initiatives on a much shorter planning horizon (typically 6 – 12 months) and these plans must still be developed internally.
The plan also focuses on IT initiatives that are typically led by an IT Department. Specialist tools and systems like hydraulic modeling and SCADA14 systems which must primarily be defined by deep technical specialists or engineers, and are then simply supported by IT staff have not been specifically addressed15.
With one important exception, the ITMP is vendor-neutral. At this assessment stage, the solution options recommended are approach-based, not specific product based. For example, we are strongly recommending that a “best of breed” Asset Management – Maintenance Management (AM-FM) system be implemented. We are not recommending any specific vendor even though, in some Working Groups, an example vendor was invited to make a presentation.
The important exception relates to the Oracle FAS. Given USAID’s large investment in this paradigm-shifting system, it is important that, wherever possible, that investment be leveraged. The e-Business suite licenses purchased by the sector give it access to a predefined “bundle” of some 70 modules, only nine of which are currently being implemented. This “bundling” strategy is common to many vendors as a sales strategy. While it may help in reducing the overall package price, it also confuses the purchaser who mistakenly falls into the trap of the marketing and thinks they are getting something good for free.
Many of these 70 modules will never be relevant to the sector (indeed they reveal Oracle’s underlying manufacturing and retail focus), but some modules may be good solutions to identified gaps. Where additional modules are a real option, we have included these in our evaluation. If they look to be very promising options, our recommendations will say so, and the option should be included in a formal systems selection process against a set of detailed functional system specifications.
That said, we caution both the sector and USAID very strongly not to implement any modules simply because they are already in the bundle purchased. The sunk (and effectively very small) cost of these
14 Supervisory Control and Data Acquisition systems of sensors and transducers used to monitor and control for instance the King Abdullah Canal. 15 Partly for this reason, and partly after identifying that two donor-funded initiatives were already underway in the sector, Geographical Information Systems (GIS) was not selected as a potential investment component. This was a decision endorsed by the ITMP Steering Committee. Subsequently, it became clear that a Working Group could usefully have been struck for this area, but this could not be acted upon with the available resources and time. A suggested Terms of Reference for such a Working Group is included as an Annex to this report.
Jordan Water Sector – IT Master Plan 11 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
incremental modules is not a sufficient and justifiable reason to implement them. The real costs are always in the implementation, and to spend hundreds of thousands, or even millions of dollars on implementing a sub-optimal system is simply not wise. No formal systems selection processes took place to define the purchased “bundle” – and the bundle’s existence is no warranty of a particular module’s suitability.
Other important messages relate to implementation constraints. While the ITMP makes recommendations for specific investments, the return on those investments will always depend on high quality implementation. While this is an obvious point, the sector has to make a lot of improvements in this area. The ITMP therefore proposes an extensive program of investment in IT staff and organization, and the adoption of widely accepted best practice international standards in IT operations, so that this quality can be assured in future through robust program management. A very clear ITMP priority is to build internal capacity in the IT organization to achieve excellence in implementation.
Equally the success of these investments may depend on simultaneous process reengineering and change management. No system can fix a bad business process – but they can enable much improved processes to be adopted. The process reengineering and change management around a systems implementation is often overlooked or sometimes deliberately resisted, but it is absolutely fundamental to realizing the full benefits of any system implementation. This point will be reinforced several times in describing our recommended systems investments.
Lastly, no system can completely overcome irrational behavior – whether this consists of perverse and counter-productive incentives in, say, a public-sector procurement process, or the common practice in the public sector of greatly inflating budget requests to overcome highly likely and sometimes irrational or sub-optimal cuts in subsequent approvals. Again the message is change management and process reengineering must accompany successful systems implementations. No system can overcome institutional flaws – the best it can do is highlight their impact and attempt to introduce controls to limit them.
6. APPROACH TO DEVELOPING THE ITMP
6.1. Structured process
All of our Working Groups followed a facilitated, structured process in developing their recommendations. A standardized process was applied by all systems Groups, and completed in detail for the major systems and hardware and communications investments that are recommended. Where the benefits of such investments could be clearly quantified, a benefit / cost business case has been developed. Where benefits could not be quantified, they are identified qualitatively. Note that the Back Office systems Group adopted a simplified approach – primarily because they identified a total of five systems gaps that had to be analyzed within the one Group.
The IT Organization Group was of course unique and followed its own structured process that focused on first on defining the roles of IT functions in the Headquarters Organizations and in the Operating Utilities, and then on optimizing the relationship between the two sets of entities. A high level design for a consolidated Headquarters IT (HQIT) organization was then agreed and a plan developed for its implementation.
The key steps in the structured process used for systems and hardware and communications are: Development, and approval by the Steering Committee, of a Scope of Work for each Group Analysis of the current “As-Is” situation – both in terms of the business processes in use and the
systems support currently provided to them Identification of major improvement areas Development of “To-Be” business requirements that are:
Jordan Water Sector – IT Master Plan 12 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Focused on future, not current, business needs Guided by best practices Appropriately adapted (“Jordanized”) to the often unique issues faced in the Jordan water
sector Identification, and quantification as a business case where possible, of the major benefits that
could be obtained from a quality implementation – avoiding double counting and ensuring that the benefits can be ascribed to the systems implementation and associated business process improvements and change management of staff
Development of potential solution options Evaluation of the pros and cons of these solution options Recommendation of the preferred solution option Estimation of the likely costs of implementing that solution options – including as relevant:
Technical assistance costs Software license costs Software maintenance and support costs (for 3 years) Software implementation costs and expenses Incremental hardware costs Other costs
Identification of risks that must be mitigated to ensure a quality implementation and fully realizes the targeted business benefits
Development of final deliverables in the form of an outline of the group’s recommendations and a short final presentation
Not all of the above steps could be completed by the Working Groups, and the Project Consultant Team assisted as necessary with items like development of estimated costs.
The Working Groups met formally five times on a five-weekly cycle for the Chief of Party to review progress, and explain and set the next steps for the Group to work on. Our Project Consulting Team facilitated the Groups through the approach between formal meetings, meeting internally and coaching individuals as necessary.
Wherever possible, we have tried to coordinate (through MoICT), take account of, and leverage our recommendations with IT initiatives underway or planned in other key Ministries. The same applies to work being carried out by GTZ as part of their SCWS, IIM and Capital Investment Planning projects. We have also been mindful of preferred vendor agreements already in place at a national level, and have used their discounted pricing wherever possible.
6.2. Solution Options
The solution options considered by the Groups in their recommendations are compared below in Table 1. Reviewing and fully understanding this table and the explanatory text below describing the options is important to appreciate fully the reasoning for the recommendations of our Working Groups. It constitutes an essential introduction to the rationale for those recommendations.
The really important point to note in this discussion is that no one solution will meet every new systems need. Organizations (public and private sector) operating in the “utilities” environment (water and electricity) tend to combine these options. They all have their pros and cons and no-one strategy fits all systems needs. While solutions generally become more sophisticated, capable of integration and lower in risk left-to-right in Table 1, specific circumstances are far more important in the end choice of a particular option. Quality assurance of implementation is also very important and, if missing, always has the potential to completely negate the optimum solution choice.
Jordan Water Sector – IT Master Plan 13 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
The solution options are now described below:
6.2.1. IN-HOUSE DEVELOPMENT
In one sense the options present an evolution of thinking by companies and organizations in many different sectors. Most organizations, including the Jordanian water sector, started with In-House (1) Development. They developed and supported applications, based often in COBOL or in simple database platforms like FoxPro, following their existing manual business processes. Systems development methodologies and tools were often developed in-house too, and not always tightly controlled. Integration was very limited if present at all. Supporting these “legacy” systems increasingly imposed a heavy workload on IT staff, and the quality of the systems often varied widely.
6.2.2. EMERGENCE OF BEST OF BREED SYSTEMS
As the software markets matured, outside vendors started to develop their own off-the-shelf solutions. Initially these were mostly in key back office areas like finance and accounting or HR and payroll. Over time, these stand-alone solutions also started to be tailored to the specific operational needs of a particular industry and came to be known as Best of Breed (BoB) systems (2). Development of these was sometimes initiated by operating utilities. They continually captured best practice business processes for particular industries as they developed – thereby fostering performance improvement. However, they were still often built with a variety of different software languages and data base platforms, requiring IT organizations to develop a variety of different technical support skills, and difficulties in integration – even to the point where the costs of integration exceeded the costs of purchase. The quality of systems certainly improved, but integrity was sometimes compromised unintentionally by customization of the applications (being the legacy of In-House development) leading vendors to withdraw their support.
6.2.3. LOCAL MARKET SOLUTIONS
As BoB applications, both back office and operational, became popular smaller local IT companies began to develop their own localized equivalents – particularly because of the need for local language interfaces and screens – so called Local Market (3) solutions. These also had the big advantage of being locally supported and often lower in cost – both considerations that are also a legacy of the tradition of In-House development.
6.2.4. ENTERPRISE RESOURCE PLANNING SYSTEMS
A major step forward came with the development of Enterprise Resource Planning (ERP) (4) systems – again initially for back office applications because of the market volume and development cost considerations. For similar reasons, they were also developed according to business processes in use in major industry sectors like manufacturing, retail and financial sector. However, to a large extent for most, but not all back office applications, this did not limit their use in utilities. ERPs used widely-accepted industry standard platforms such as Oracle databases and a modular design. Integration between different modules was designed in, and applications could be configured in a variety of ways to accommodate some custom business processes, and without impeding software upgrades. That said, the embedding (as with BoB systems) of best practices created strong incentives to standardize, reengineer and improve the organization’s own business processes and not to customize the software. Organizations that resisted this need to tailor process to system, not system to process, attempted to customize the ERP applications and again ran into integrity problems and sometimes even withdrawal of vendor support. Configuration would allow customer specific flexibility in the software functionality outside of costly software programming. These capabilities ensured the customers would be able to meet their requirements while still keeping the ability to move forward with new releases and upgrades to the ERP investment. The sophistication and evolution of the ERP vendors has reached a point where many of the ERP modules are now considered best of breed. However, this industry has faced stiff competition and many challenges and now there are only a few ERP vendors left that can meet a wide footprint of business application requirements.
Jordan Water Sector – IT Master Plan 14 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Over time the situation has improved. Vendors have consolidated; ERPs have increased their configuration options and continually added best practices; and some ERP modules are even considered “best of breed” in themselves. ERP scope has also widened to encompass more back office processes – especially in the supply chain and materials management areas. In some cases, operational processes like work order management have been added too and applications somewhat tailored to meet the needs of specific industries. The leader in this regard is without doubt SAP. Underlying most ERP platforms however remains the original manufacturing, retail and financial sector paradigms and it is very important to read beyond the vendors’ marketing literature and pitch, solicit independent ranking of solutions (e.g. from widely-regarded sources like Gartner) and confer with peer companies (in this case utilities) before committing to an ERP footprint that extends significantly beyond back office applications like financials, HR and supply chain.
6.2.5. ASSISTED IN-HOUSE DEVELOPMENT
Assisted In-House Development (5) has emerged partially in response to the limited customization capabilities of ERPs (generally for the very good reason that their embedded best practices should be properly leveraged). Another key driver in recognition, particularly in local markets, that ERP module solutions are sometimes over-complex with multi-layered, even convoluted GUI-based screen designs that do not lend themselves well to efficient use by lower skilled users. As an alternative to implementing a string of over-complicated modules, the development of standalone but fully ERP-integrated custom “add-on” applications providing the same functionality in a much simpler and easy to use way as the multiple module solution. These applications must be developed (or sometimes adapted from existing offerings) by experienced and appropriately certified ERP implementer/integrators. While this appears to be somewhat contradictory to the ERP modules, some vendors (including Oracle themselves) actually recommend this approach in appropriate situations, and ERPs have evolved to accommodate this trend more easily with the provision of features like “flex fields”.
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Jordan Water Sector – IT Master Plan 16 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
6.2.6. APPLICATION SERVICE PROVIDERS (ASPS)
The increasing availability of ever-higher bandwidth communications networks fostered development of today’s internet and intranet platforms. It is now quite realistic to outsource some business processes and applications to “Application Service Providers” who install, configure and maintain high transaction volume ERP platforms and deliver the systems functionality remotely to their contracted customer organizations through web-enabled portals. Experience of this outsourcing has been mixed, and organizations have tended mostly to only outsource business processes that are not essential “core-competencies”. Examples would be high volume customer call center and billing applications (for example among mobile providers), payroll and sometimes finance and accounting.
However, organizations do not typically outsource their critical operations processes. Utilities in particular, except when they are facing competition and deregulation which applies only to the electricity sector, have not aggressively embraced these models. In fact, the knowledge and wisdom necessary to operate organizations in the water sector does not lend itself to the ASP model and it has therefore not been included in our Solution Options evaluation. If it were to be applied to the sector, what would logically be outsourced would be the Oracle modules (with the exception of Supply Chain) that are currently being implemented under the FAS project.
One other comment here is that if IT in the sector cannot achieve sustainability and attract the increasing level of technical and management skills it needs, ASPs in principle become a more attractive option. Again, the specialist nature of many of the sector’s operations is still going to severely restrict the applicability of this option. Nor will it obviate the same sustainability issues for the IT specialists still required to service the operations that cannot be outsourced. In the opinion of the Consultant, the sector has to find a way to solve its sustainability issues itself.
6.2.7. OPEN SOURCE PLATFORMS
The final evolution, and very new in terms of applications rather than operating systems, is the emergence of “Open Source” platforms. This is an interesting development that the sector would do well to monitor as, along with modern systems development and application lifecycle tools, it offers a cheap and much more tightly controlled way to return to the traditions of custom development for specialist sector applications. License and support costs are very low (but not free), integration is generally relatively easy, and complete applications are increasingly offered as “starter packs” that can be readily customized to an organization’s specific needs. Again the need to quickly recover ongoing development costs through access to high volume markets However, the in-house technical skills required are substantial and, at least in the applications field, open source would still be considered “bleeding edge” and risky. Again we do not recommend it as a sensible option for the Jordan water sector within probably at least a 5 year planning horizon. It should however be placed “on-watch” and reconsidered for its suitability to support some applications areas when the ITMP is updated on this kind of timeframe.
6.2.8. THE SITUATION TODAY IN THE UTILITY SECTOR
Faced with all these choices, what then is the situation today in the water and utility sector worldwide? As stated above – the answer is an optimized mix that best fits solution to need. ERPs are rightly dominant in core back office process areas, and their reach is somewhat extended by the Assisted In-House Development strategy. BoBs (designed today, as a basic go-to-market requirement, to integrate well with standard ERP platforms) have evolved to best meet specific industry sector operational process needs – like maintenance management. Middleware, which developed first to allow easy migration of main-frame applications to client/server environments, then evolved to meet the need to better integrate BoB applications, is now embedded directly within BoBs facilitating this much easier integration. Local market solutions are sometimes still an option and custom-development is re-emerging but using industry-standard (e.g. Oracle Developer) standards under very tightly controlled development lifecycles facilitated by software tools that force development to widely-accepted international best practice standards. The experience and judgment of the Consultant team in reviewing a wide variety of utilities world-wide has been be applied to best determine the
Jordan Water Sector – IT Master Plan 17 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
optimum solution option for each identified systems requirement in our Working Groups.
As the implementation of IT and related technologies becomes more complex, reliance of the Jordan water sector on the availability of these systems will increase. Some of the sector leadership still has a limited awareness of the value that IT can provide and therefore naturally resists investing resources in IT. This must change. Sector restructuring is already exposing significant weaknesses in the Headquarters IT organizations. As expected the Operating Utilities who are the subject of the restructuring are better and more quickly able to respond to these challenges.
Fully realizing the value of internal IT capability is the first step the sector needs to make. Local marketplaces are still evolving to the point where can offer sufficiently viable options to selectively outsource IT services. The development and maintenance of sufficient internal skills to operate and maintain a quality IT environment must be the first priority for the sector.
6.3. Jordanian Water Sector IT concerns
A number of specific concerns exist in the Jordan water sector that are common to all solution options16. The most obvious is the essential requirement for Arabic language interfaces and screens (usually these are provided as dual-language interfaces) to facilitate easy data entry, and extend the reach of the system to lower-skilled workers such as stores attendants in more remote areas, or drivers and sweepers who need to complete a leave absence request.
Related to this requirement is the need for simple screen configuration and efficient data entry – discussed already above. This has been an issue recognized at AWC in its initial implementation of the X7 billing system where meter data entry that once took one person now takes three17.
On the maintenance and support side, the sector has had some significant challenges in obtaining timely maintenance and support of applications. If support cannot be provided locally, it tends to be expensive and time zone and calendar (both weekend and holidays) differences may severely restrict its timeliness.
The issue of support costs is related but not quite so easy to justify and support in the opinion of the Consultant. The sector is experiencing some “sticker shock” in dealing both with license costs18 and annual maintenance and support costs. Even though donors often fund the large capital outlays for new large-scale systems implementations, the ongoing support costs are seen as a “rope around the sector’s neck” that tends to get more and more expensive as time goes by. From a sector sustainability point of view (especially given widespread agreement that full O&M cost recovery should be a minimum target for all parts of the sector’s operations) such costs are no different from the ongoing operating costs of energy and chemicals consumption for a newly-constructed water or wastewater treatment works whose initial capital outlay has been donor-funded. The software costs are also much smaller in comparison.
Properly budgeted for, ongoing support and maintenance costs are not really a rational barrier to purchasing an additional ERP module or a new BoB system, and should be considered as the price of access to quality software applications – though of course carefully negotiated down wherever possible. The fact that these costs are considered so irksome19 is partly due to the legacy of custom in-house system development where ongoing maintenance and support was “free” by definition. It
16 These are different from unique business requirements for a specific systems area that are driven by “Jordanization” considerations described under each Working Group’s recommendations. 17 This situation is now being remedied, in part as an output of our CIS/Billing Group, by the vendor. 18 This argues the need for very careful specification of user numbers and appropriate legal due diligence in future systems purchases – another core capability that the proposed HQIT organization will need to develop. 19 The Senegalese Government recently opted to aggressively go “open source” because of this perceived issue of large vendors imposing ongoing support costs. While a brave move, its usefulness to the Jordan water sector is limited.
Jordan Water Sector – IT Master Plan 18 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
additionally reflects the often limited value the sector still ascribes to IT (described further in the Section on the IT Organization Working Group).
What is critically missing in sector thinking (and not just as far as support costs are concerned) is counting of the benefits of software implementation as opposed to just the costs. The private sector understands very well that if the benefits of any investment exceed its costs (discounted appropriately for differences in the timing of cash inflows and outflows), the investment is economically rational. Within Government organizations this kind of analysis is much rarer (though understood just the same) for the very simple reason that individuals of both high and low rank in the sector have their performance monitored largely by their ability to minimize spending and control costs. This is the whole public sector budgeting mentality. Properly incorporated in a business case for a proposed systems investment, if it is shown to by the business case to be a good investment, the support costs are more than covered by the benefits to the sector of installing the system. The problem is that Government organizations are only now beginning to count benefits, not just costs.
Another point to note on support costs is that the Jordanian Government through the efforts of MoICT is continually negotiating substantial pricing discounts with major systems and hardware vendors. These agreements should be considered and suitably weighted in the pricing criterion for all future systems selections, and fully leveraged where appropriate.
A final sector-specific concern is their wish for ownership of source code. While freeware and shareware, as well as open-source systems, do provide for this, few large applications vendors do – for intellectual property as well as systems integrity reasons. In the opinion of the Consultant it is not really a reasonable or even necessarily advisable expectation.
6.4. Importance of benefits and business cases
Experience of especially ERP and BoB implementations all over the world has clearly shown the importance of identifying desired benefits and developing a business case for a systems implementation upfront. A business case has two distinct purposes:
Justifying the proposed systems investment on solid economic grounds and ensuring the amount of the investment is appropriate to the need
Establishing a clear baseline for monitoring and evaluation of the quality of the systems implementation
While the former is perhaps more obvious, the latter is in many ways more important. When ERPs first became very popular (the “threat” of Y2K being a huge driver), many organizations spent tens, even hundreds, of millions on their rapid implementation. Two years after “go-live” these organizations were still asking where the real benefits are. Many implementation consultants reacted by offering so-called “second-wave” implementation services – a review of the benefits actually being realized against what potentially could be realized, followed by properly targeted and focused re-configuration often extensive process redesign, and additional training and change management of users. An organization’s first experience of a large ERP implementation is rarely a painless one – the organization is ill-prepared to digest the implementation. The most important people and process dimensions are overlooked in the rush to “go-live” with as “plain-vanilla” an implementation as possible to limit cost overruns.
Developing a clear and specific business case, as a part of the detailed systems specification phase, formation and constant nurturing of a true partnership between client, vendor and implementation consultant with targeted and continually monitoring skills and knowledge transfer, and aggressive targeting of the identified business benefits with formal post-implementation measurement is now clearly proven to be a necessary and best practice in systems implementation. Again these are essential skills the proposed HQIT will have to develop before the sector takes on further large implementations
As Peter Covey, the leading management writer, reminds us “begin with the end in mind”.
Jordan Water Sector – IT Master Plan 19 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
7. PROPOSED IMPLEMENTATION APPROACH FOR THE ITMP
7.1. Options for Implementation
The ITMP is intended to direct and funnel significant investments in systems, hardware and communications infrastructure into the Jordan Water sector over the next 5 years – in such a way that these investments significantly improve overall sector performance. If implementations of the investments proposed in the ITMP are carried out to a high standard, so that identified business benefits and business cases are achieved, the value that IT can provide will become obvious to the sector.
At this time the ITMP Steering Committee and the Working Groups are the only entities who truly understand and own the ITMP, and its underlying objectivity and framework for optimizing IT investment decisions. Transferring this ownership and objectivity to the proposed consolidated HQIT organization (described below), and making them the custodians and program managers of the plan, is the obvious and best way to maintain the integrity of the ITMP.
The alternative to implementation by the HQIT organization would be to rely heavily on outside consultants to implement each investment component independently. This is a familiar approach that would most likely result in significant loss of value, unnecessary rework of the plan, and much less control over quality assurance of implementations. Such an approach would also perpetuate the sector’s dependence on consultants and continue to constrain development of management and technical capacity within the sector. In short the value and sustainability that the ITMP can deliver would be jeopardized.
We therefore strongly recommend that the capacity to program manage and implement the plan be built internally within the HQIT. A fundamental tenet of development consulting is the transfer of skills and building of capacity to client organizations. Such an approach follows that tenet and reduces any dependency on consultants. The best development consultants should always be aiming to “do themselves out of a job”.
7.2. Role of HQIT in Implementation
We propose that a new consolidated Headquarters IT organization (HQIT) be established under a single long-term USAID technical assistance project to serve all three Headquarters Organizations (MWI, WAJ and JVA)20, The principal role of the consolidated HQIT, besides providing IT support services to the HQ Organizations, will be to own and manage the ITMP.
Our proposed implementation approach stresses the building of strong technical, business and management capacity within the IT Organizations in the sector. Sector leadership will first expect the new HQIT to prove itself capable of meeting or exceeding the current levels of IT service and support. The capacity-building program we propose will assure this. It will then equip the HQIT to manage and implement the ITMP components effectively to realize their anticipated business benefits. Staff salaries will also be addressed during the long term technical assistance (subject to corporatization being achieved21) in order to ensure sustainability of this enhanced IT capacity in the sector.
Implementation of most of the ITMP systems and hardware and communications initiatives should
20 Involvement of the PMU was considered but since we understand the intention is to devolve this unit to support development of an independent regulator for the sector, and it is already under programmed EU funding, this was considered unadvisable. 21 It may be possible to introduce performance bonus pools before corporatization if Jordanian laws completely limit across the board salary increases prior to corporatization and a way cannot be found around this. Note that there is a precedent established already in Jordan – with MoICT employees being paid outside Government salary scales in order to attract and retain quality talent.
Jordan Water Sector – IT Master Plan 20 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
not begin until such staff capacity is developed and proven. Technical assistance for the HQIT Organization may run for up to 5 years on a declining basis, with intensive training and capacity building being completed within the first 2 years, and the major part of the ITMP investments commencing thereafter.
It should also be noted that the existing scope of the Oracle e-Business suite implementation will be completed by July 07. A further focus of capacity building efforts within the HQIT will be on ensuring the internal capacity to support and improve configuration of the e-Business suite modules to realize their full business benefits.
Our recommended approach to the technical assistance – which includes regular and frequent monitoring and evaluation of both the HQIT staff and the Consultant to ensure that capacity building and skills transfer are happening properly - is described further under the IT Organization component in Section 8 below.
7.3. Short Term Actions Needed
The HQIT must be established as quickly as possible to protect the integrity of the ITMP, and USAID’s investment in it. A way must be found for USAID and the sector to preserve and capitalize on the strong momentum and ownership of the ITMP by its Steering Committee and Working Groups. Maintaining this momentum into rapid implementation provides the sector and USAID with an opportunity to substantially mitigate implementation risk. Conversely a significant gap in USAID’s contracting for ITMP implementation activities will inevitably dissipate this ownership and momentum as well as again likely lead to unnecessary rework of the plan, and loss of its integrity and value.
Obtaining and embedding an understanding of the value of the ITMP with the broad range of sector stakeholders, both internally, in other ministries and with the donor community will inevitably take some time. It is important to understand that the ITMP is much more than a set of optimized IT investment recommendations. It is also a set of principles to guide more objective systems selection and results-driven implementations. Subject of course to final acceptance of the ITMP, it is critical that both the sector and USAID adopt this framework as soon as possible, even if only on an interim basis at first, as the definitive framework for reviewing and refining all future project designs. It is important to note that the ITMP is fully consistent with USAID’s own ADS 548 and develops it further according to widely accepted best practice. Early adoption of the ITMP framework will avoid any danger of continuing sub-optimal systems selections and implementations and show an immediate return on USAID’s investment in the ITMP.
8. DESCRIPTION OF COMPONENTS
8.1. Headquarters IT Organization (HQIT)
8.1.1. EXECUTIVE SUMMARY OF WORKGROUP RECOMMENDATIONS
This component is the foundation for the entire ITMP. HQIT will be the custodian of implementation of the ITMP, with all investment components channeled through it and managed by it. HQIT will also be responsible for periodic updating of the ITMP. The vision here is to establish a single Headquarters IT organization, and to train, coach and build sustainable capacity within the organization in all the skills necessary to run an effective IT services organization according to internationally accepted best practices.
HQIT will primarily serve the IT needs of the Headquarters Organizations, but it will also provide services to the Operating Utilities’ IT organizations (e.g. in LEMA, AWC or NGWA) on an as-needs, arms-length basis. In addition, where in the sector’s overall interests, it will set and implement sector-wide data, systems, hardware, interface and communications standards. The HQIT is not envisaged as a very large unit – especially as WAJ and JVA continue to evolve towards stand-alone Operating Utilities and smaller Headquarters Organizations – but it must be a very effective unit. Its staffing
Jordan Water Sector – IT Master Plan 21 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
levels will be determined strictly according to identified needs drivers – and its focus will be more on quality of staff, not quantity. The aim is to create a small and fully accountable center of excellence that is a recognized and valued business partner for the whole sector.
Technical, business and management skills currently existing in the three separate HQ IT Directorates (MWI, WAJ and JVA) will all need to be deepened and widened. This will enable the HQIT to properly manage the full range of systems development strategies – from custom development (with or without outside assistance) to leveraging of the ongoing Oracle e-Business suite implementation, to additional large-scale, sector-wide systems implementations. HQIT will be the PMO, systems developer or selector, implementation manager and quality assurance provider for all sector-wide systems. They will advise and offer these skills and services to the Operating Utilities – as and when they require support from the center.
HQIT must also lead the way in all aspects of management practice – not just in technology skills. It will be the first “internal” demonstration user of many of the systems it will ultimately implement sector-wide – including HRM and performance management, budgeting and project management systems, and the collaboration suite. These will help enable the HQIT to be recognized for performance management from the outset.
The sections below first describe the “As-Is” situation in the Headquarters IT Organizations and their evolving role vis-à-vis the emerging Operating Utilities IT Departments. Opportunities for improvement that are essential if Headquarters IT is going to add real value to improving the performance of the sector are then described, and options for reorganization reviewed. A full description of the Group’s recommendations around the role and organization structure of the HQIT, and its relationships with the Operating Utilities is then provided. A detailed implementation “roadmap” is proposed – with issues still requiring resolution clearly identified. References to widely-accepted international best practice standards in IT operations are described next, and a suggested approach to adapting and implementing them to suit the needs of the water sector is described.
The final section describes how USAID could best support this component through a long-term technical assistance project that emphasizes capacity building through training that is focused and timed to meet the real business needs of implementing the ITMP, and reinforced by on-the-job coaching through these needs. This is a large commitment of USAID funds, and clear monitoring and evaluation procedures must be built in, with annual evaluation of both the contractor and HQIT staff against pre-agreed performance baselines to ensure that the capacity is actually being built.
8.1.2. CURRENT DEPLOYMENT OF IT RESOURCES IN HEADQUARTERS ORGANIZATIONS
A total of 57 IT staff is currently employed by the Headquarters Organizations of MWI, WAJ and JVA in three separate IT Directorates each reporting at the ASG level – generally to an ASG of Finance and Administration. About 50% of these staff are located in WAJ Headquarters. Another 19 staff (~ 33% of the total) are employed by JVA – but this total includes 7 data entry clerks. The remaining 10 staff are employed at MWI Headquarters. Annual turnover of IT staff is estimated at 15% - which is certainly high by public sector standards.
Over 50% of the IT staff in Headquarters Organizations hold a B.Sc. in Computer Science or a related field. Another 40% hold a 2 year diploma in IT. 38% of employees are between 20-29 years old, 36% are between 30 – 39 years old and 24% are between 40-50 years old.
Jordan Water Sector – IT Master Plan 22 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
The roles and position descriptions within the Headquarters Organizations IT Directorates are distributed as follows:
Role or Position % of total IT staff Programmers 28% Assistant Programmers. 23% Systems Analysts 23% System Engineers 12% Data-Entry 12% Maintenance Engineers 8% Network Administrators 5% Database Administrators (DBAs) 5% IT Manager 3% Reporting Officer 2%
Table 2 - Current Distribution of IT Staff
This distribution of staff with almost 75% of staff being related to programming and systems analysis clearly shows the legacy of custom development in the sector. As the mix of solution options adopted in the sector changes, initially with the introduction of FAS, this distribution of roles will have to change substantially.
8.1.3. THE EVOLVING RELATIONSHIP BETWEEN HEADQUARTERS AND OPERATING UTILITIES IT FUNCTIONS
The water sector in Jordan has now clearly taken on board the concept of corporatization. This effectively enables corporatized units to operate autonomously almost as a private sector operation would but still wholly owned by the GoJ. AWC led the way here, now that the LEMA management contract is coming to a close Amman Water and Wastewater Corporation will be established, and NGWA has just begun a management consultancy to prepare it for corporatization in two years. These corporatized entities have shown substantial performance improvements and are easily achieving O&M cost recovery. There is no reason to suggest the trend of corporatization will not continue – although several entities (both in WAJ and JVA) have a considerable performance gap still to address before they are ready for corporatization.
This trend to corporatization of Operating Utilities is already changing the role of IT in the sector. Broadly speaking the value of IT has been clearly recognized in the Operating Utilities. Senior management within the Operating Utilities has systematically addressed individual manager’s accountabilities, performance targets and reporting needs. Performance improvement imperatives are much clearer than at Headquarters Organizations. Processes are in place to continually identify business issues that need IT support.
IT Departments in the Operating Utilities are generally small, able to attract and retain more qualified IT staff, and focus their resources on business needs. Their manager generally reports direct to the General Manager of the Operating Utility – in a “Chief Information Officer (CIO)” role more typical of the private sector. The IT departments leverage existing custom applications well, and in some cases are building their own Management Information Systems to support continued performance improvement in operations. Other Operating Utilities IT departments are considering leading significant systems development initiatives of their own. IT staff are readily able to make fast, effective local purchasing decisions.
In contrast at the Headquarters Organizations, IT is foundering somewhat. In some cases, sector leadership still needs to be convinced of the real value of IT. IT Directors report low in the organization and in some cases are still viewed either as administrative support, or as “techies” working in the back room, supporting desktops, maintaining legacy systems and occasionally
Jordan Water Sector – IT Master Plan 23 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
developing new “point” legacy type applications. The sector focus on IT costs, not benefits/costs, is evidence of this. Morale is low, in part because of salary levels22 and the substitution in some cases by higher paid contract staff, but more importantly because their ability to apply their skills and experience to make a real contribution to the sector’s improvement, and be relevantly trained and skills-upgraded so they can progress their own career development, is extremely limited. Staff are often consumed by low value activities – sometimes even purchasing of routine IT supplies can be a major issue. While quality hardware is not always in short supply, creatively-functioning and motivated IT staff (the hallmark of a constantly progressing IT sector) are rare.
As the Operating Utilities continue to evolve, and their number increases, they will take increasing responsibility for developing and maintaining their own operational support systems. Headquarters Organizations will get smaller in size at the same time, reducing the need for a large IT department there. Not all IT will however be devolved, In the centre, besides specialist planning applications, development, maintenance and support of a number of common “backbone” systems needed to coordinate the sector will become more and more important. The most obvious of these is the Oracle FAS. Effectively this imposes common data and accounting standards across the sector, simplifying budgetary control and reporting, and facilitating easy consolidated reporting. A continuing challenge in implementing the FAS has been getting Headquarters Organizations IT staff to truly actively “partner”, at the high level of commitment required, in the ongoing Oracle FAS implementation. This is in part a symptom of the situation described above.
The sector is also increasingly expected to participate in emerging e-Government initiatives that the MoICT is leading. Both the need to maintain the new backbone systems, and the trend to more outside IT initiatives, are putting pressures on Headquarters IT Organizations that they are not well equipped to bear.
8.1.4. THE OPPORTUNITY FOR IMPROVEMENT
The relative strengths and weaknesses of IT in the sector, both in Headquarters Organizations and Operating Utilities were introduced in Section 4 and discussed further above. The opportunity to improve is clearly for Headquarters Organizations IT Departments to be able to add much more value to the sector’s planning and operations. Operating Utilities IT Departments may be able to do a lot in their own spheres of influence, but backbone systems will continue to need strong centralized IT support. There is clearly a need to better define the role of Headquarters IT Organizations vs. the Operating Utilities IT Departments (which is addressed below) but the first priority must be to leverage IT much better at the center.
In the short-term, the most significant opportunities for improvement are to: Assure greater availability and quality of information Formalize and follow a future business benefits-driven IT selection/development process Optimize IT expenditures and guarantee ROI Better utilize staff and improve service Establish a proper program management function Improve coordination of donor support for IT Improve the security of IT and related assets
In the medium to longer-term, additional improvements are possible including: Establishing and enforcing as sector-wide Unified Data Dictionary
22 We estimate these to be 40-60% below the relevant Jordanian IT market levels.
Jordan Water Sector – IT Master Plan 24 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
Developing a comprehensive Executive Information System (EIS) for planning and decision support
Thoroughly assuring the quality of IT project implementation Facilitating easy roll-out of E-Government Services Operation of IT functions to international standards Ownership & regular updating of the IT Master Plan Potentially, commercial revenues from selling IT services to regional utilities and municipalities
Achieving these improvements will require a sustainable cadre of high-quality IT personnel fully cognizant with and capable of directly supporting business needs through the provision of effective and efficient23 systems support.
8.1.5. OPTIONS FOR REORGANIZING HEADQUARTERS ORGANIZATIONS IT
Our initial “As-Is” assessment provided a high-level comparison of the options for reorganizing Headquarters Organizations IT. This is reproduced in its original form as Table 3 below. It strongly suggests that some form of “hybrid” organization that balances a strong centralized Headquarters IT Organization (HQIT) with largely autonomous decentralized IT Departments in the Operating Utilities.
• Still need strong leadership in center• Requires clear service level agreements• Internal / external market discipline
necessary
• Best of all worlds – still close to “utility” needs
• Balance risk and return• Corporatization would increase
sustainability• Generate revenue for sector?
Hybrid
• Who would support HQ/infrastructure needs?
• Mitigate risk by insisting on high quality data standards for sector MIS
• Closest to “utility” business needs• Easiest to escape Civil Service
Bureau limitations
Fully Decentralized
• Previous attempts at collaboration have not worked
• Would still have to focus hard on efficiency, adding value and sustainability
• Ignores sector evolution• Strong leadership by CIO essential
• Sector-wide focus• Reduced duplication & overlap• Better staff development• Improved accountability• Common standards enforceable• More sustainable
One Consolidated
• Not working very well• Not sustainable• Not close to business needs
• No change requiredAs-Is (4 IT Depts)
DisadvantagesAdvantages
• Still need strong leadership in center• Requires clear service level agreements• Internal / external market discipline
necessary
• Best of all worlds – still close to “utility” needs
• Balance risk and return• Corporatization would increase
sustainability• Generate revenue for sector?
Hybrid
• Who would support HQ/infrastructure needs?
• Mitigate risk by insisting on high quality data standards for sector MIS
• Closest to “utility” business needs• Easiest to escape Civil Service
Bureau limitations
Fully Decentralized
• Previous attempts at collaboration have not worked
• Would still have to focus hard on efficiency, adding value and sustainability
• Ignores sector evolution• Strong leadership by CIO essential
• Sector-wide focus• Reduced duplication & overlap• Better staff development• Improved accountability• Common standards enforceable• More sustainable
One Consolidated
• Not working very well• Not sustainable• Not close to business needs
• No change requiredAs-Is (4 IT Depts)
DisadvantagesAdvantages
Table 3 - Evaluation of Options for Reorganizing Headquarters IT Organizations
8.1.6. RECOMMENDATIONS
The IT Organization Working Group was able to develop this “hybrid” concept much further in the course of the last six months. The core of their recommendations involves:
Consolidating the existing three Headquarters IT Directorates into one unified HQIT Organization (see Figure 1 below) serving all the IT needs of the Headquarters Organizations (and, until their
23 Efficiency in the IT world is usually expressed in terms of lowering the Total Cost of Ownership (TCO).
Jordan Water Sector – IT Master Plan 25 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
ultimate corporatization, non-Amman based operational entities still closely tied to those Headquarters Organizations)
Clearly defining the roles and responsibilities between HQIT and Operating Utilities IT departments
Establishing a governing IT Board to ensure those roles are followed, and that excellent levels of IT service are provided to the Headquarters Organizations and available as needed to the rest of the sector.
A properly unified HQIT would serve the consolidated needs of MWI, WAJ and JVA, with its most senior manager reporting on a day to day basis in a “CIO” role directly to senior sector decision-maker(s). Policy and performance oversight would be provided by an IT Board with voting MWI, WAJ, and JVA representation from both Headquarters Organizations and Operating Utilities (IT users as well as IT staff). The Board’s involvement would be high during initial establishment of the HQIT, but would later reduce to normal board oversight responsibilities once the HQIT becomes fully effective. HQIT would be the custodian of applications and data, but the individual businesses would still own these.
UUnniiffiieedd IITT OOrrgg
Ministry of Water & Irrigation
(MWI) Sector-Wide
Ministry of Water & Irrigation
IT Directorate
Jordan Valley Authority
IT Directorate
Water Authority Of Jordan
IT Directorate
IITT BBooaarrdd
Figure 1 - Proposed HQIT
8.1.7. ROLES AND RESPONSIBILITIES OF HQIT
The principal roles and responsibilities of the HQIT would be to: Implement, maintain & support sector-wide backbone systems (e.g. Oracle FAS, GIS) and
infrastructure Maintain the integrity of all systems, data and information needed for MWI planning (e.g. water
situation, capital budgeting, O&M subsidies) & performance oversight (and / or regulation) Ensure pro-active & effective coordination with e-Government, MoICT, MoF, MoPIC and other
systems initiatives of external bodies Consolidate software licenses where this is in the interests of the sector Support Operating Utilities’ IT departments as requested Provide staff development, training and rotation to build sector-wide sustainability of IT Monitor & evaluate projects & conduct process quality tests Manage risk – backup, disaster recovery, access control and software development standards – all
to international best-practice standards Procure equipment according to applicable laws and bylaws – leveraging centralized purchasing
power where in sector interests
8.1.8. RELATIONSHIP BETWEEN THE HQIT AND OPERATING UTILITIES
The HQIT and the Operating Utilities IT Departments will need to collaborate especially closely and effectively in the following critical areas:
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Coordination of all shared IT activities and joint liaison with the IT Board for issues resolution as appropriate
Creation of core support teams for backbone systems support and implementation Provision of operating data and management information to Headquarters Organizations for EIS
dissemination and consolidated reporting Joint implementation of a business continuity and fail-over plan
8.1.9. ROLE OF THE IT BOARD
The Board will operate ultimately in a normal governance role, ensuring that an appropriate balance is maintained between the IT needs of the Headquarters Organizations and Operating Utilities, and ensuring that the sector’s overall interests are maintained within IT decision-making.
The Board would therefore: Monitor the performance of HQIT against agreed service levels to Headquarters Organizations
(and Operating Utilities where appropriate) as defined in Service Level Agreements (SLAs) Develop and monitor a broader set of key performance indicators (KPIs) for HQIT Oversee the continuity of implementing selected IT standards Act as a “regulator” for sector-wide IT projects Monitor the progress of major IT projects Ensure due ITMP process is followed in developing new systems recommendations Continue to be involved in backbone system selections Monitor HQIT’s operating program maintained by the PMO, and review and approve regular
updates Ensure the periodic update of the ITMP by HQIT and approve such updates Ensure that IT plans are generally maintained and coordinated within the sector, and with external
donors, other Ministries and stakeholders Monitor IT staff development plans sector-wide
8.1.10. THE EVOLVING ROLE OF THE IT BOARD
As identified above the role of the IT Board will be significantly different during the initial establishment of the HQIT and implementation of the ITMP components. The evolving role is summarized in Table 4 below.
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# During IT Master Plan Implementation Post Master Plan Implementation
1 Actively participate in backbone system selection and procurement
Continue to be involved in backbone system selections
2 Oversee implementation of backbone systems Monitor project(s) progress 3 Report on project progress, risks and obstacles
4 Actively be involved in selection and acquisition of common infrastructure components
5 Co-design Policies and Procedures, approve and implement Act as a “regulator” for IT projects sector-wide 6 Co-recommend New Systems Co-recommend New Systems
7 Review and approve IT related staff development plans sector-wide Monitor that plans are maintained
8 Co-setup PMO for water sector with Operating Utilities. (HQIT will keep updating PMO) Monitor PMO, review and approve updates
9 Monitor the performance of IT HQ and assist in KPI's definition Monitor KPI 10 Be responsible for successful implementation of IT Master Plan Update IT Master Plan
11 Co-implement best practices, standards in IT management, operations, security … etc
Oversee continuity of implementing selected standards
Table 4 - The Evolving Role of the IT Board
8.1.11. ORGANIZATION STRUCTURE
A proposed organization structure and descriptions of the proposed roles and staffing compositions for the HQIT is attached and described in detail as ANNEX 5 – PROPOSED HQIT ORGANIZATION DESIGN to this Volume. We propose four separate Directorates covering Business Applications, Infrastructure, Security and QA, and Strategic Planning and Program Management. Each Directorate is organized into Sections with 11 Sections proposed in all.
Developed by the IT Organization Working Group, this organization structure will have to be reviewed and developed further as part of detailed implementation planning for consolidating the three Headquarters IT Directorates into the HQIT. In particular optimum staffing levels will have to be confirmed. It is however a comprehensive proposal that properly expands but focuses the role of HQIT on the sector’s future IT needs and required skill sets. This will shift it from its present legacy systems focus to being able to properly cope with the demands of the many different solution options it now has to manage and manage well.
8.1.12. CORPORATIZATION
As has been demonstrated in the Operating Utilities, corporatization brings a new focus on operational improvements. Corporatizing the HQIT will force it to move from being a cost center to being a financially sustainable business in its own right. While it will still obtain the bulk of its revenues from providing services directly to the water sector (through fees charged after corporatization under the SLAs with each entity), this will necessarily be on an “arms length” market basis. In the same way, services HQIT provides to the Operating Utilities will be priced at arms length market prices and HQIT will have to demonstrate better value for money than outside private sector providers. Additional revenues from sales of its specialist water sector and expertise to other regional utilities and municipalities are also anticipated. Corporatizing HQIT will also help to raise Jordan’s IT competitiveness in the region and encourage foreign and domestic private investment opportunities in the country.
8.1.13. PROPOSED APPROACH TO IMPLEMENTATION OF THE HQIT
After a detailed planning phase, the existing three headquarters IT Directorates will be consolidated (within six months of commencement of the detailed planning phase) into one new HQIT serving the whole sector. Intensive needs-based training, coaching and capacity building will then begin with
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each staff member having agreed performance targets. Efforts will be made post-consolidation to provide for performance bonuses to begin to address the salaries issue. Subsequently, we recommend that the HQIT be corporatized, allowing it to set its own salary and benefits packages to enable it to compete for professional talent in the appropriate local and regional IT labor markets.
The major phases, and constituent activities, of the HQIT component are: Detailed Planning For Consolidation Of The Three Existing HQ IT Directorates
Review HQIT design proposed in ITMP Conduct a legal review to confirm the feasibility of in-sourcing of IT services to a common
HQIT, and identify and resolve any staff or asset transfer issues Recommend solution on outstanding implementation issues (see below for a full list) – these
include the organizational location of HQIT, reporting lines, and any staff salaries flexibility – and obtain the approval of sector leadership
Establish project oversight mechanisms Develop detailed inventory of current service scope and levels Develop improved target service scope and levels, and develop Service Level Agreements
(SLAs) with each HQ organization Establish monitoring and reporting mechanisms to track service levels Working from the ITMP HQIT design, develop a detailed staffing model and detailed job
descriptions and performance expectations at the individual staff member level Optimally match current staff to the new positions and roles, and prepare a Day Zero “cap-
badging” plan that reallocates staff into their new roles and/or transfer options for any residual staff
Review existing operating and capital budgets and develop an approach to preparing a consolidated HQ-wide budget
Identify common office facilities and prepare necessary infrastructure Identify critical systems that must be in place for Day Zero to maintain business continuity
and plan their availability Develop on-line Policies and Procedures Manual for HQIT operations – based on
international best practices (e.g. Information Technology Infrastructure Library (ITIL) Establish IT Board and conduct training in their role Consolidate all the above into a Day Zero consolidation plan – again to ensure seamless
business continuity during and after consolidation. Consolidation and Capacity Building
Implement the Day Zero consolidation plan – transferring staff into their new roles and departments
Set performance goals for each staff member Review the training plan developed during the ITMP24 Implement the training plan and track each staff member’s training progress Apply and continuously coach the skills learned in each training course Monitor and report service levels Conduct semi-annual and annual staff appraisals Review legislation applicable to corporatization and salaries
24 See Volume II, IT Organization Component
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Prepare corporatization plan Prepare post-corporatization business plan (with/without commercial service offerings) Establish internal administration unit (to become effective on corporatization) Manage hardware and infrastructure and communications upgrades and implementation of
infrastructure management tools Manage sector-wide centralized deployment of collaboration tools Begin working with outside Oracle vendor to develop selected Back Office applications, and
new Lands system. Corporatization
Complete legal transfer to new corporate entity Transfer SLAs to new entity Implement own salary and benefits packages Review staffing Monitor performance
Full HQIT Operations
Manage routine support according to SLA agreements Prepare annual operations and capital plans and budgets Manage implementation of all remaining ITMP components Prepare detailed systems specification Conduct formal systems selection Manage vendor implementations Ensure full realization of targeted business benefits Provide quality assurance for all operations and projects Monitor emerging trends in it (e.g. Availability of open source applications tailored to sector
needs) and incorporate as ready Review and update ITMP Begin to offer commercial it services to other regional utilities and municipalities (outside
scope of any USAID assistance)
8.1.14. DETAILED DESIGN ISSUES STILL NEEDING RESOLUTION
Sector leadership has now given formal approval in principle for consolidation of Headquarters Organizations IT Directorates to proceed. However, as described above, the Working Group identified a number of detailed design issues that still need to be resolved during the Detailed Planning for Consolidation phase. These are shown in Table 5 below:
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Where will HQIT initially be located, under MWI, WAJ or JVA? What is optimal to allow subsequent corporatization? How will budget funds be reallocated and annual operating and capital budgets be prepared? (latter will be guided by the ITMP) What will happen to any current open and signed contracts? What will be the status of software and other licenses? When is the time to do the consolidation? (we have proposed 6 months after the start of detailed planning for consolidation) What will happen with the current IT directors from both an organizational and functional perspective?
IT HQ Organization
What will be the future of IT staff in MWI, WAJ and JVA? What qualifications and experience should the new CIO have? What will be the selection process? To whom the CIO will report? What will be the job description and function of the new CIO?
Leadership
What are the expectations of Operating Utilities from the new CIO? What will be the right mechanism/legal and administrative process to consolidate the IT staff for Headquarters Organizations? How long will it take to finalize the Detailed Consolidation Plan and mechanism? Given that bylaw no 60 is on hold, what will happen to staff employed on the Social Security law when consolidating?
Staff Consolidation
Are Operating Utilities willing to accept some IT staff transferred from HQIT? Salaries need to be revised and raised to market level – does the law and associated bylaws allow for defining a new salary scale or performance- based bonus pool? What will be the new salary scale and how should it be related to individual performance? Who has to define/create the scale? How long will take to approve the new salary scale?
Salaries
Do Operating Utilities IT staff also need to follow the IT HQ new scale or can they use their own since they have O&M recovery responsibility? A proper team building mechanism needs to be developed prior to Consolidation – to create trust between staff, develop soft skills, and improve team dynamics
Team Dynamics and
Consolidation Approach
(As identified above) a detailed consolidation plan needs to be developed highlighting all Legal, Human Resources, Processes, Systems, Office Supplies and other logistics issues
Table 5 – Outstanding Detailed Design Issues
It is critical that an early start be made on Detailed Planning for Consolidation because of the need to maintain the momentum of the Working Group, and in recognition of the time needed to agree and gain approval on the above issues.
8.1.15. MOVING HQIT TO INTERNATIONAL BEST PRACTICE OPERATIONS
Once the HQIT has been established it will be important to set standards for its performance. These standards would be codified in a set of HQIT Policies and Procedures that would be made available in an on-line manual. Under its Integrated Information Management (IIM) project, GTZ has already tabled a high level Common Information Management Policy and a draft Information Management (IM) Handbook. These provide a foundation for developing HQIT Policies and Procedures (see ANNEX 12 – GTZ TENTATIVE IM HANDBOOK LAYOUT for the draft layout and GTZ’s suggested responsibilities for detailing each section). We propose this detailing be done, and additional policy areas added as appropriate, by referencing widely accepted international best
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practice standards for IT operations – adapting them accordingly to the situation and needs of the Jordanian water sector. Some key reference points are described below.
IT Infrastructure Library (ITIL)
ITIL is the most useful starting point for moving to best practice IT operations. An introductory overview is available at http://www.itsmf.no/bestpractice/itil_overview.pdf. ITIL provides a framework of best practice guidelines for IT Service Management. A roadmap for introducing ITIL is shown in Figure 2 below.
Figure 2 - ITIL Roadmap
ITIL is the most widely used and accepted approach to IT Service Management in the world. It covers the following areas:
Business Perspective: - this provides advice and guidance to help IT personnel to understand how they can best contribute to the business objectives and how their roles and services can be better aligned and exploited to maximize that contribution.
Service Management Implementation: - this is the fundamental definition and interpretation of the Service Management term used throughout the ITIL framework. It is a core principle of ITIL and covers all aspects of the provision and quality management of IT services.
Service Support: - this describes the processes associated with the day-to day support and maintenance activities associated with the provision of quality IT services.
Service Delivery: - covers the processes required for the planning and delivery of quality IT services and looks at the longer term processes associates with improving the quality of IT services delivered.
ICT Infrastructure Management: - covers all aspects of ICT Infrastructure Management from identification of business requirements through the tendering process, to the testing, installation, deployment, and ongoing operation and optimization of the ICT components and IT services.
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Applications Management: - examines the issues and tasks involved in planning, implementing and improving Service Management processes within an organization. It also addresses the issues associated with addressing Cultural and Organizational Change, the development of a vision and strategy and the most appropriate method of approach.
Security Management: - this details the process of planning and managing a defined level of security for information and IT services, including all aspects associated with reaction to security incidents. It also includes the assessment and management of risks and vulnerabilities, and the implementation of cost justifiable countermeasures.
ITIL is a comprehensive set of IT specific standards. Implementation of them should be done gradually in phases – with the standards being tailored to the sector’s needs and capabilities. ITIL standards should be fully embedded in the Service Level Agreements that HQIT would define with the Headquarters Organizations (and possibly the Operating Utilities) – and in fact offer a useful guideline for preparing these internal contracts.
ISO/IEC 27001 (http://www.iso.org) – Information Security
ISO/IEC 27001 is the International Standards Organization (the world’s most widely accepted quality standards body) standard on information security management system requirements, risk management, metrics and measurement, and implementation guidance. The standard is structured into the following domains:
Risk Assessment and Treatment Security Policy Organization of Information Security Asset Management Human Resources Security Physical and Environmental Security Communications and Operations Management Access Control Information Systems Acquisition, Development and Maintenance Information Security Incident Management Business Continuity Management Compliance
Again ISO 27001 needs to be implemented in gradual manner, starting from a sector-wide vision developed by HQIT and then extended later to the Operating Utilities.
Project Management Standards
The two most widely accepted standards for project and program management of IT (and in fact non-IT ) projects are:
Project Management Institute (PMI) - see http://www.pmi.org/. The Project Management Body of Knowledge (PMBOK) available here is a comprehensive reference for PMI project management standards detailing the various phases of a project lifecycle.
PRINCE2 (Projects in Controlled Environment) is an alternative methodology covering the organization, management and control of projects. PRINCE was first developed by the Central Computer and Telecommunications Agency (CCTA), now part of the Office of Government Commerce (OGC), in 1989 as a UK Government standard for IT project management – see http://www.ogc.gov.uk/prince2/index.html.,
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Either standard could be adopted by the HQIT.
Note that, as an integral part of quality program and project management, we also strongly recommend that upon the completion of all major IT projects a “lessons learned” document is prepared – ideally, in this case, by a neutral consultant. This will identify gaps in the implementation approach and benefits realization and recommend mitigation measures to be incorporated into future IT projects.
ISO 35.080 (/IEC 27001 – Software Development Life Cycle (SDLC)
This ISO standard establishes standards covering the SDLC including software development, documentation, and design and use of internet applications. (See http://iso.nocrew.org/iso/en/CatalogueListPage.CatalogueList?ICS1=35&ICS2=80&ICS3=&scopelist for a description of the standard). This will be an essential best practice for HQIT given it will still need to develop and maintain some applications in-house and/or work with outside vendors on an assisted in-house development basis.
ISO 17799:2005 - Business Continuity Management
Both ISO 17799:2005 and ITIL emphasize the need to plan and implement a business continuity management strategy. Such a strategy involves the development of recovery plans following any major incident causing, or potentially causing disruption, of service. Under business continuity, IT services are provided to an agreed level, within an agreed schedule. IT Service Continuity is therefore a component of Business Continuity Planning (BCP). A description of this standard is available at:
http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=39612&ICS1=35&ICS2=40&ICS3=. The standard contains best practices of control objectives and controls in the following areas of information security management:
Security policy; Organization of information security; Asset management; Human resources security; Physical and environmental security; Communications and operations management; Access control; Information systems acquisition, development and maintenance; Information security incident management; Business continuity management; Compliance
A business continuity management process should be implemented to minimize the impact on the organization and recover from loss of information assets (which may be the result of, for example, natural disasters, accidents, equipment failures, and deliberate actions) through a combination of preventive and recovery controls. This process should identify the critical business processes and integrate the information security management requirements of business continuity with other continuity requirements relating to such aspects as operations, staffing, materials, transport and facilities.
The sector should look carefully into business continuity management and develop plans that not only cover hardware, communication, software but also human resources, business processes and legal aspects. The ITMP (as part of its Infrastructure Working Group) provides a first line proposal for a secure infrastructure network design that allows building a fail-over strategy to allow operating
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entities and headquarters to use each other’s email and internet backbone in case a failure happens.
8.1.16. IMPLEMENTATION APPROACH FOR POLICIES AND PROCEDURES
Again, adopting the international standards, updating IT business processes, and developing the detailed IT Policies and Procedures needs to be done in a phased manner with expert involvement. We propose this be done as a part of the technical assistance to the HQIT proposed below. The laws of Jordan need to be applied wherever possible to ensure compatibility with the standards.
8.1.17. USAID’S ROLE – TECHNICAL ASSISTANCE TO THE HQIT
USAID has a pivotal and logical role to play in establishing the HQIT. By funding a long-term technical assistance project to explicitly build the sector’s IT technical and management capacity, USAID can properly reduce the sector’s dependence on consultants, build real sustainability, while all the time protecting its other investments in ITMP components. The development of the ITMP has clearly shown the success of a participatory approach and this would be continued into the technical assistance.
The long-term assistance project will establish the HQIT organization, comprehensively train its staff in key technical and management skills in a manner targeted to short-term work plans, build and transfer capacity to plan and manage IT projects, and provide on-the-job coaching to implement the ITMP systems, hardware and networking components. The technical assistance contractor will also provide assurance to USAID that the ITMP is properly implemented, and that its identified business benefits are realized.
We propose that this technical assistance run for a total of 5 years – but with declining technical assistance as HQIT capacity is built. An interim IT Manager for the HQIT (functioning in a “CIO” role) would be provided by the project through corporatization (which we envision would be possible 18-24 months after the start of the technical assistance). Ideally this individual should be a returning Jordanian American with strong IT and leadership experience. The CIO will be selected, according to predefined evaluation criteria, by members of the ITMP Steering Committee with the help of USAID. At corporatization this individual would hand over to an externally recruited or internally promoted CIO.
Given the size and duration of this investment - estimated at $8.6M over 5 years - it will be very important that regular evaluation of the project’s success be carried out in order to provide checkpoints for continuing with its funding. A continual monitoring and evaluation process would be established. Performance indicators (output-based as far as possible) would be established at the start of the technical assistance for both key HQIT staff and the Consultant. Progress against these should be evaluated at least annually. Note that the HQIT staff performance indicators will flow logically from their individual goals set annually as part of a formal performance appraisal process – and ideally linked to performance bonuses. Establishing best practice HRM processes and systems will be an important part of capacity building and will establish HQIT as a center of excellence not only in IT operations but also in its own management. Corporatization cannot happen if this is not achieved.
8.2. Asset Management - Maintenance Management (AM-MM)
8.2.1. EXECUTIVE SUMMARY OF WORKGROUP RECOMMENDATIONS
Asset and maintenance management is a fundamental core competence in any water utility or irrigation authority. Water and wastewater treatment plants and pumping stations (usually termed “facilities” in asset management – because of their discrete geographical location) must operate efficiently with very high availability, and at minimum maintenance cost. Tracking their condition and implementing advanced preventive maintenance strategies like condition based or reliability centered maintenance is the key to ensuring such performance.
Network assets are even more important and much more challenging to maintain because of their geographically distributed (and often underground) nature which requires strong GIS integration. Reducing non-revenue water (NRW) is the single most important performance issue in the Jordanian
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water sector and its technical component depends critically on the condition of network assets (pipes, valves, meters etc.). Network asset maintenance is a distinctive and defining requirement of utility operations. This is widely recognized in the sector and has resulted in a number of very effective donor-supported projects. However, systems support for effective planning and targeting of preventive maintenance remains very limited. Other important asset classes that must also be maintained in a utility include its vehicle fleet, buildings and offices, SCADA infrastructure, and IT assets.
Modern AM-MM systems can manage all the above asset classes in one application. They are also tightly integrated with (and sometimes even include their own) supply chain functionality. Again it is important to note that utilities operate on a “just-in-case” inventory policy – spare parts must be stocked in quantities to just meet anticipated repair and maintenance needs. This is quite different from the manufacturing inventory paradigm of “just-in-time” that most supply chain functionality supports. Operating and maintenance needs are the key driver of inventory management in utilities.
Our Working Groups were organized as separate AM-MM and Supply Chain Groups, so their recommendations are presented separately here. However, the business case is really is a combined one because of this need for tight integration between the two components. Implementation of the two components would also be done in parallel so that the integration schema between Oracle Supply Chain modules and the selected AM-MM solution can be optimized.
Major functionality and best practice embedded in these AM-MM systems includes: Condition-tracking and management of the maintenance of all sector assets – plant, network,
dams, vehicles, buildings etc. In one system Optimized management of maintenance schedules and planned shutoffs Optimized management of maintenance personnel and outside contractors Management of special tools and heavy equipment Tracking of maintenance costs – labor and parts Optimization of spare parts inventory on a “just-in-case” basis – with full visibility into all stores
sector-wide for appropriate parts sharing Full mobile-enabled work order management direct to the field crews Management of safety lockouts and clearances Automatic generation of preventative and reliability-centered (with scada integration) work-orders Maintenance budgeting Optimum targeting of maintenance and rehabilitation priorities
Note that AM-MM requirements are not driven by back office finance and accounting needs. We are not here discussing tracking just the financial value of assets, but their operational condition, maintenance needs and total cost of ownership25. Finance and accounting are only the recipients of asset values and maintenance costs – operations is the driver. While it is very important that any AM-MM system be fully integrated with the Oracle Financials modules currently under implementation, (including the comprehensive and detailed fixed assets register that we understand is now to be developed by the FAS project) AM-MM requirements should be specified by O&M users, not financial users.
25 Total cost of ownership monitors the full “cradle to grave” cost of deploying an asset over its entire life – from specification, design, operation and maintenance to retirement. Monitoring and minimizing the total cost of ownership enables better specification of future assets and better management of rehabilitation and replacement.
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This ITMP component discusses the “as-is” situation for asset and maintenance management – in terms both of business processes and systems support. It then identifies future business requirements, and develops a high-level benefits justification. Potential solution options are then identified and compared before making a recommendation, presenting cost estimates for implementation and summarizing the overall business case to justify funding.
The solution options evaluated included in-house development, assisted in-house development, implementing the Oracle e-Business suite EAM module and implementing a best of breed AM-MM system that can be optimally integrated to Oracle supply chain modules. Our evaluation of these options shows a best of breed solution is the preferred solution here, but the sector may want to include the Oracle e-Business Suite EAM module in a formal and objective systems selection to meet AM-MM requirements. Assuming a best-of-breed solution, total implementation costs across all Operating Utilities (including JVA) are estimated at approximately $4.7M.
The largest quantifiable improvements in sector performance and strongest business case identified in the ITMP will come from implementation, across all Operating Entities in the sector, of a best of breed AM-MM system that is optimally integrated with the appropriate set of Oracle e-Business suite Supply Chain modules. The business benefits derive principally from annually-recurring reductions in non-revenue water, energy savings and a large additional one-time inventory reduction.
Our analysis clearly shows that the AM-MM system has a strong benefit / cost case – even without counting the associated supply benefits, and after correcting for ongoing support costs. The real “cost” to the sector is actually a net cash inflow of some $2.7M (based on discounting the 10 year benefits stream at 10% and subtracting the estimated implementation costs). In fact, the combined AM-MM-Supply Chain benefit / cost case comes close to paying for the whole ITMP – even after deferring the benefits of its implementation because of its late phasing in our proposed implementation schedule.
8.2.2. AS-IS SITUATION
Business Processes
Example high level business process descriptions developed by the Working Group are provided in Volume II of this report. However, the current situation can be characterized overall (there are local exceptions in some cases) by the following points:
Separate maintenance processes are defined for wells, water and wastewater networks, pumping and booster stations, dams, reservoirs, water and wastewater treatment plants, vehicles, evaporation and monitoring stations, the King Abdullah canal and side-wadis, and other equipment including furniture and fixtures and communications and IT equipment
Often there are separate system for service management (customer complaints) and maintenance of meters is generally managed by Subscriber departments, not by O&M staff
Maintenance is overwhelmingly corrective based (vehicles are the one exception) Maintenance processes are not standardized across the sector Maintenance expenditures are not necessarily targeted well (a disproportionately high amount
goes to vehicles) Historical and current asset condition data is not generally available across the sector (although
e.g. For the last three years NGWA and LEMA have been using both GIS and the DCMMS system described below to track network asset condition and age)
Integration with supply chain is weak Maintenance budgets are developed primarily from experience, not from operational and
maintenance data
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While advantage is taken of vendor-supplied maintenance for some newly-commissioned assets, there are no sector-wide plans to outsource maintenance (although again NGWA is planning to use outside contractors for a meter replacement program)
Maintenance budgets are generally very limited – emphasizing the need to carefully optimize maintenance procedures and resources
Considerable technical support (notably through the German funded OMS project) has been provided for O&M process improvement - with some simple systems support included
NRW levels vary widely across the sector – with WAJ averaging around 46% (generally assumed to be split 50:50 between technical and administrative losses) – but lower NRW levels clearly correlate with the quality of maintenance processes in place
Energy costs in WAJ account represent close to 35% of total revenues
Systems Support
There are no standard asset or maintenance management systems in place sector-wide. Systems support varies widely from one Operating Utility to another, with individual point applications, often developed in-house or donated by donors, supporting individual asset classes. Not all classes of assets are covered in all Operating Utilities. There is increasing use of GIS tools (from the ESRI ArcGIS product suite) to track and communicate asset locations and provide asset type and some condition information – though standards for data management are not yet consistent across the sector and applications tend to be viewer type rather than directly-interfaced to asset and maintenance applications (DCMMS does have basic GIS integration).
Examples of point applications at LEMA include an Oracle based in-house developed Vehicle Maintenance Management System, ALFA which is a tailor made inventory application for spare parts tracking that is not integrated with LEMA, a Microsoft Access based system for facilities maintenance management and an ArcView based GIS driven customer complaint system.
At NGWA and at AWC, there is good use of DCMMS – see http://dcmms.sourceforge.net/ - an open-source web-based freeware application developed in Jordan which is used to support maintenance crew dispatch and record and analyze customer complaints and repairs in water supply networks. DCMMS is interfaced with the billing system COBUS-II and GIS – but there is no integration between DCMMS and Oracle Financials. While use of maintenance costing and resource consumption data is still limited, the DCMMS system provides a major benefit in tracking the location, type and assets involved of pipe bursts. This facilitates much improved rehabilitation planning.
JVA has a custom-built job costing system at its Central Workshops in Fannoush – this is interfaced with Oracle FAS but the Supply Chain modules are not currently in use because of a lack of key users and an ongoing change in the inventory coding system.
8.2.3. MAJOR IMPROVEMENT AREAS
Significant savings in NRW and energy costs can be achieved by implementing modern AM-MM applications with embedded best maintenance practices. Process reengineering would follow these practices. The major improvement areas include:
Institutionalizing a well planned and fully optimized preventative maintenance business cycle Better targeting of maintenance budgets and resources to optimize O&M benefit/cost Better planning of outages and increased availability of assets Improved repair/replace decisions and better rehabilitation plans Improved customer complaint response time
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Reduction and optimization of spare parts inventory stocks – recognizing that supply chain should be driven by maintenance activities (see supply chain component)
Improved maintenance resource allocation and contractor management Optimization of crew mobility and commuting time Better leverage of equipment warranties Extended asset lives Automated work order production and processing from financial and safety approvals with full
capture of labor and materials cost elements and appropriate capitalization
8.2.4. FUTURE BUSINESS REQUIREMENTS
Rather than simply automating current maintenance processes, an AM-MM system should meet anticipated future business needs, include best practices and be able to cope with any requirements specific to the Jordanian water sector. Future business requirements (almost all now accepted best practice) therefore include:
Reduction of technical NRW through more effective, preventative maintenance Assisting in the reduction of administrative NRW though improved meter maintenance Reduction of energy costs due to improved pump and equipment maintenance Full integration with existing and planned SCADA systems to support reliability-centered
maintenance strategies Ready availability of accurate information (historical, budget and actual) for maintenance
budgeting and rehabilitation studies Optimized scheduling of maintenance staff and special tools and equipment Full and easy capture of all job costing data Tight integration with supply chain and inventory management functionality in existing systems
with “just-in-case” optimization of spare parts stocks Full mobile support of maintenance crews from receipt of approved work orders, and provision of
asset condition and location information, and automated truck inventory management Support for bar code and radiofrequency identification device (RFID) tracking of critical assets Seamless integration with GIS, SCADA, CIS/Billing and Financials systems as required On-line parts catalogues and maintenance procedures Planned management of plant, pump and other equipment outages Support for the full range of maintenance strategies from corrective, through time based, to
preventative condition-based and reliability centered Comprehensive and fully and easily customizable reporting with full “drill-down” capability for
ad-hoc queries
From a Jordanization perspective, Arabization is essential along with simple, easy to quickly navigate screens to enable use of the system by all levels of O&M staff. Local vendor support is also a requirement. Compliance with GoJ procurement laws is a requirement also and may affect data exchange with the Oracle Purchasing module.
8.2.5. BENEFITS IDENTIFICATION
Tangible benefits from properly implementing an AM-MM system so that it fully realizes targeted improvements in the sector’s performance are primarily in reduction of NRW and energy savings. In the long run maintenance costs would also likely be reduced as the cumulative impact of switching
Jordan Water Sector – IT Master Plan 39 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
from corrective to preventive maintenance is realized – but although tangible this is very difficult to estimate so it has been left out of the business case calculation. Additional savings will also come from optimizing spare parts inventory levels, ensuring materials availability so corrective maintenance can always be completed quickly, and reducing inventory losses – but these are considered under the Supply Chain component that follows.
Less easily quantified benefits include better management of maintenance crews and outside contractors, reduction of plant and equipment outages, improved service response time, fuel savings and better targeting of maintenance and rehabilitation activity, and improved safety levels.
Estimation of Tangible Benefits
Our Working Group made two critical assumptions in estimating the benefits from an AM-MM implementation (discounting Supply Chain benefits for now – these will be consolidated in the Supply Chain component section):
NRW savings possible are estimated at 1.5% in absolute reduction terms Energy savings possible are estimated at 1%
The detailed benefits calculations are shown in ANNEX 6 – AM-MM-SUPPLY CHAIN BUSINESS CASE along with the full business case itself (discussed further below). Estimated total annual savings from NRW reduction and energy savings are ~ $1.6M with ~ $1.lM coming from the NRW savings component. Note that the calculations assume these benefits do not increase year on year as they are likely to in practice – up to some plateau value. It is quite correct and conservative to count the base savings annually.
It is impossible to estimate these savings with any precision in advance of the implementation, but our Working Group and NGWA leadership consider them to be conservative. NRW savings were valued at the average retail tariff and corrected for the contribution margin from associated wastewater billing. Ongoing software support costs beyond the initial 3 years assumed to be funded by USAID are netted out accordingly. Note that JVA makes very little contribution to the business case because of its very low realized revenue on NRW saved.
8.2.6. EVALUATION OF AVAILABLE SOLUTION OPTIONS
A number of different solution options were considered for the AM-MM system – from custom in-house development through assisted in-house development to implementing the Oracle e-Business suite Enterprise Asset Management (EAM) module to implementation of a Best of Breed system.
In-House or Assisted In-House Development
In-house development (assisted or not) is not a realistic option for an AM-MM system. The complexity of asset management does not lend itself well to this approach – especially with the high degree of implementation to GIS, SCADA, financials and CIS/Billing systems that may be required. The Consultant is not aware of any fully comprehensive AM-MM system capable of meeting the future business requirements defined above that has been developed in-house. While such an approach has the advantage of low cost it is a very high risk proposition unless software development lifecycle standards such as ISO 35.080 are thoroughly embedded and rigorously followed. In-house development would also take an inordinately long time and consume a very high level of programming resources. There are unlikely to be significant business process improvements resulting from such an approach – as AM-MM best practices knowledge resides outside the sector.
Assisted in-house development is likely just to increase the cost but not necessarily the quality of the solution in this case, and extensive due diligence would need to done on their ongoing support capacity. Ownership of the source code could probably be arranged but likely at substantial additional cost. These in-house approaches are not considered further.
Jordan Water Sector – IT Master Plan 40 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
Oracle e-Business suite Enterprise Asset Management (EAM) module
At first sight this appears to be a very attractive solution option. It has the obvious advantage of built in integration with all other components of the suite. It has also already been licensed as part of the e-Business suite bundle purchased by the FAS project. However, closer examination of its functionality reveals serious shortcomings when compared to best of breed offerings. As stated above, having already bought the module is no automatic justification for its implementation – especially since there was no formal systems selection for this module (or indeed any other) when the Oracle e-Business suite bundle was purchased. Implementation decisions should always be based on a careful examination of the functionality of each product. Implementation costs always significantly exceed license costs anyhow so the apparent cost advantage of Oracle EAM is smaller than it first appears.
Examination of Oracle’s data sheet for the EAM module readily confirms its underlying manufacturing (i.e. limited to plant facilities) paradigm. Some third party add-ons (e.g. Exor) are available to provide network asset capabilities but these are largely unproven, have limited functionality and have been implemented only by smaller utilities. Integration with financials is stressed – but as stated above AM-MM is an operation, not financials driven.
Independent market analysts constitute a more objective source than any vendors – the most well known of these being Gartner26 who publish their so-called “Magic Quadrant” periodically for all major systems areas. The quadrants rank vendor offerings on two dimensions – market presence and performance. To the best of the Consultant’s knowledge, Oracle EAM has not even featured in these rankings in recent years. With the exception of SAP (again more oriented to manufacturing industries), no major vendor of ERPs makes either the Leader or Challenger category. (Note of course that it would not generally be logical to try to integrate ERP modules from different vendors). The market share (across all industries, not specifically utilities) for Oracle EAM is believed to be in the 3% range compared to 10-14% for the Leader category products. Utility implementations are believed to be very few – and mainly restricted to smaller municipal utilities.
The Working Group’s view of the EAM module recognized its easy integration with Oracle FAS advantage, but found the product offering to be very generic with no specific business KPIs or domain expertise relevant to the water sector being offered. The total costs were considered to be likely very similar to a best of breed implementation because of increased customization required. Business case benefits were also viewed as likely to be lower than for a best of breed system.
Best of Breed AM-MM systems
Best of breed systems have typically been developed by large niche vendors who specialize in asset-intensive industries like utilities, chemicals and resource extraction. The AM-MM field is unusual among software products for the plethora of niche vendors it supports. The future functionality requirements identified above are easily met by most best of breed products. Best practices are deeply embedded in these systems and continually improved over time. Easy integration to standard ERP platforms like Oracle is now a market requirement. Best of breed systems are far and away the favored solution for AM-MM applications – which accounts for their majority ownership of the Leader category in independent market rankings. Well known vendors who are strongly positioned include:
MRO Software with their Maximo product – see http://www.mro.com/ Indus – see http://www.indus.com Mincom - see http://www.mincom.com
26 The latest Gartner Magic Quadrant for AM-MM systems “Magic Quadrant for Enterprise Asset Management, 1H06 was published in March 2006 and is available for purchase at www.gartner.com at a cost of $495
Jordan Water Sector – IT Master Plan 41 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
IFS (actually an ERP vendor that also offers a standalone AM-MM solution) – see www.ifsworld.com
A vendor presentation by MRO was given to our Working Group, based on their large Middle East presence (including implementations at Abu Dhabi Water and Electricity and Oman Wastewater) and Arabized product offering. As the ITMP is vendor-neutral, selection of MRO for the vendor presentation is in no way an endorsement of their particular product.
The Working Group saw the main advantages of a best of breed solution to be its embedded best practices specific to the utilities domain, the availability of built in KPIs, and good availability of user documentation specific to the domain. On the negative side, total implementation costs are high if not justified by a clear business case with and implementation quality assured by realization of that case. Arabization and local support may be an issue for some vendors and the implementation period can be long.
Final Recommendation – Formal Systems Selection (BoB vs. Oracle EAM)
On balance, our Working Group came out in favor of a best of breed solution. (See the detailed comparison (unweighted) in Table 6 below). While this is also the Consultant’s recommendation, there is no reason that Oracle EAM could not be included in a formal systems selection process facing off against a range of best of breed offerings27. Indeed, given the importance of optimum integration to Supply Chain functionality (in order to reap the large business benefits also available there from inventory and loss reduction) this may be a good choice to make.
The typical systems selection process has extensive end-user (i.e. O&M staff) involvement. It begins with the issuance of a Request for Information (RFI) which outlines the business requirements at a high level and may ask for a list of reference clients who have implemented the product as well as and specify some “drop dead” issues like proven Arabic interface. Generally analysis of the responses to an RFI allows a short list of vendors to be developed.
In parallel with the issuance of the RFI, detailed functional system specifications requirements should be prepared and weighted according to their importance. Upwards of 150-200 criteria specific to both current and future business requirements are included here, along with any critical best practices and “Jordanization” requirements. The functional systems specification is then issued as part of a formal RFP which also defines the relative weightings given to functionality and price (typically 80/20)28. Short-listed vendors are then asked to self-score their products (from 1 (does not meet requirement) to 5 (fully meets requirement)) against these criteria and a total weighted score is then calculated for each vendor response.
Careful analysis of vendor’s strengths and weaknesses are also made from the scorings. These enable the preparation of scripted demos that are used to compare vendor’s relative strengths and / or weaknesses. Typically the 2-3 most highly scoring vendors are invited to a demo and given 3-5 specific business requirements to demo on their system. There is no necessary requirement for all vendors to receive the same scripts but there should be some level playing field comparisons.
After writing up a detailed report on the evaluation and demos, the final step is to visit vendor reference sites before finalizing the selection. Particular attention should be paid during these visits to demonstrated realization of targeted business benefits, quality of implementation, effective transfer of skills to users and IT support staff and post go-live support.
27 We strongly recommend the use of a waiver to obtain permission to source all ITMP software components on a worldwide basis using Geographic Code 935 including Cooperating Countries. This will ensure the maximum available choice – particularly where best of breed solutions are recommended. 28 GoJ procurement regulations place a very heavy weighting on price. For a products as complex as operations and back office software this is not recommended. Use of USAID procurement rules allows the more appropriate weighting to be used, thereby ensuring a much better functional fit.
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CCuussttoomm DDeevveellooppmmeenntt EERRPP BBeesstt ooff BBrreeeedd Functionality Moderate 2.5 Generic 3 Best Practice 5 Ease of initial customization V.good 3.5 Moderate 2 Good 3 Best practices Limited 2 Moderate 3 V.good 4 Ease of integration Difficult and
time consuming
2 Good 3 Good 3
Ease of upgrade Difficult 2 Good 3 Good 3 Stability if changes made Low 2 Good 3 Good 3 Risk – Reverse Scale Logic High 1 Medium 2.5 Minimum 3.5 Documentation No guarantee 1 Good 3 Good 3 Total cost – Reverse Scale Logic Low 1 High with less
benefits 2 High but more
benefits 3
Arabic language support V.Good 4 No guarantee unless Oracle
2 No guarantee unless MAXIMO
2
Maintenance / local support Risky 1 Risky 1 Risky but safer than ERP
2
Total 22 30.5 34.5 Fitness = Total / (11*5 =55) 40% 55% 62%
Note: 11 is Number of Categories, 5 is the highest Score
Table 6 - Comparison of AM-MM Solution Options
8.2.7. COSTING ASSUMPTIONS
The cost estimates we developed include the estimated costs of integration with Supply Chain and the need to do additional configuration work on the Oracle PO and INV modules in order to realize the identified Supply Chain business benefits (again discussed in the Supply Chain section). The estimate was derived using both vendor inputs and benchmark multipliers common to most implementations. The total cost of implementation based on an estimated 156 users (covering all WAJ and JVA operations) is estimated to be in the $4.7M range.
Note that the final costs of implementation can only be determined during negotiations with the winning vendor. Effective negotiation skills are another HQIT requirement.
8.2.8. BUSINESS CASE
With benefits and costs both now estimated, the full business case can be developed – see ANNEX 6 – AM-MM-SUPPLY CHAIN BUSINESS CASE29. Assuming a very conservative 10% discount rate (easily justifiable as the opportunity cost of government funds which typically return much less), the net present value of the AM-MM implementation alone is estimated at $2.7 M. This is without any consideration of additional Supply Chain benefits (these are discussed later under that component). This number represents the net value of the projected benefits of the AM-MM implementation – i.e. there is no net “cost” to the sector of completing this implementation – instead benefits worth $2.7M at the time of implementation can be expected.
29 Note this business case presents both the aggregated AM-MM-Supply Chain case and the AM-MM and Supply Chain components separately.
Jordan Water Sector – IT Master Plan 43 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
The impact of the AM-MM implementation (combined with Supply Chain) on the overall business case for the ITMP is examined in Section 12. Together the combined system comes very close to paying for the whole ITMP (i.e. disregarding any tangible but difficult to quantify benefits from all other proposed systems implementation components in the ITMP).
8.2.9. RISK FACTORS AND THEIR MITIGATION
Whatever solution is finally selected, its success will only be as good as its implementation. A number of risk factors need to be mitigated to ensure this. Vendor and / or implementation consultant experience should be diligently checked as part of the selection process. HQIT will need to bring its best program management skills and a team of users and IT support staff will have to be committed full-time to the implementation effort. Sector readiness both in terms of human resources and hardware and communications infrastructure must be in place and proven before implementation starts. Warehouse consolidation and potential business process improvements to inventory management processes should be studied prior to implementation, and a detailed and accurate fixed assets register and inventory stock take (with elimination of any duplicate item names or codes) completed, and the inventory classification system reviewed.
We recommend a phased roll-out approach based on training a dedicated Core Support Team (CST) of O&M personnel, users and IT support personnel. A pilot implementation (with NGWA) being the most likely candidate would be program managed with full tracking of realized benefits against the business case. The CST would work closely with the vendor and / or implementation consultant to develop and sign off on appropriate detailed configuration and user-friendly screens and optimize Oracle integration and reconfiguration schema (to realize the identified Supply Chain benefits). HQIT would provide robust quality assurance and acceptance testing and ensure extensive training of users and support personnel by the vendor. Rollout of the system to other Operating Utilities would then be done by the fully trained CST.
Training plans and materials as well as reference documentation must be made readily available in Arabic by the vendor – for both technical and functional staff.
Other risks needing to be mitigated relate to post-implementation support. Recurring support costs are included in the business case so they can be absorbed without issue. However, appropriate due diligence must be carried out to assure the quality, cost and ready availability of both routine and special ad-hoc support.
8.2.10. TIMING OF IMPLEMENTATION
We do not recommend the sector take on this implementation until well into the ITMP period. (NGWA also prefers not to start implementation before mid-2008 at the earliest because it will be preoccupied with other initiatives in including completing and embedding its FAS implementation). The sector’s recent experience with systems implementations has not been very positive and it is clear that extensive capacity needs to be built internally to properly manage large scale implementations. This will take time. Our suggested phasing of the AM-MM implementation is discussed in Section 10.
8.2.11. USAID’S POTENTIAL ROLE
USAID would support AM-MM implementation through its long-term technical assistance to the HQIT. This would ensure a professional systems selection takes place, followed by quality implementation with full skills and knowledge transfer. The vendor implementation contract would be managed by HQIT according to USAID procurement procedures. USAID could finance all or part of the implementation cost themselves – but substantial co-financing of this initiative by GoJ is also justified by the business case.
8.3. Supply Chain
8.3.1. EXECUTIVE SUMMARY OF WORKGROUP RECOMMENDATIONS
The Supply Chain Working Group is closely linked to the AM-MM Group, because of the fact that
Jordan Water Sector – IT Master Plan 44 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
the real driver of inventory management in a utility environment is operations and maintenance. Experience of other utilities when implementing Supply Chain systems consistently shows that major benefits can be realized from optimizing supply chain processes and systems. The largest benefit is typically a one-time reduction of inventory. In most cases, “strategic sourcing” (leveraging centralized purchasing power) is another major (and annually recurring benefit) – however current GoJ procurement regulations severely restrict our potential to realize these benefits in Jordan.
Major improvement areas identified by the Working Group include potential consolidation of POs, reduction in the number of PO errors, and reduction of the PO cycle time. A large one-time reduction in inventory is possible, as are annual recurring reductions in inventory losses. Consolidation of Sub-Warehouses and providing the consolidated set with networking connectivity to enable access to supply chain systems functionality are also seen as opportunities.
A unique feature of this Working Group is that, to a limited extent, supply chain functionality is already being implemented across the sector using the Oracle e-Business Suite Purchase Order (PO) and Inventory (INV) (or Warehouse Management) module. However, the focus of this implementation is very much financial. Physical optimization (i.e. by item, not value) of purchasing and inventory management was not included in the FAS project’s scope and no business benefits were targeted at the outset of the implementation.
The solution options here therefore logically reduce to choosing between reconfiguring the PO and INV modules to optimize the physical side of supply chain, or using the proposed AM-MM system to do this instead. In practice a mixture of both options may be needed. In both cases, optimized integration between the AM-MM and PO and INV modules will be required, with mirroring of databases to keep the two systems in full synchronization. The final choice is actually a difficult one and early vendor input, once again through a formal systems selection process is the only way to objectively solve it. The sector should resist rushing to solve the supply chain issue immediately through standalone PO and INV module reconfiguration, until a full evaluation of the combined AM-MM-Supply Chain options has been made.
This ITMP component discusses the “as-is” situation in terms of business processes and systems support. It then identifies future business requirements, and develops a high-level benefits justification. Potential solution options are then identified and compared before making a recommendation, presenting cost estimates for implementation and summarizing the overall business case to justify funding.
Our business case analysis clearly shows that the Supply Chain opportunity is very large – with an estimated net benefit of $12.7M to the sector (based on the discounting, over 10 years at 10%, of a 5M JD one-time inventory reduction and annual inventory loss reductions of 1.05M JD, with an estimated implementation cost of $0.7M. All of these assumptions are considered conservative. Again, the combined AM-MM-Supply Chain benefit / cost case comes close to paying for the whole ITMP – even after deferring the benefits of its implementation because of its late phasing in our proposed implementation schedule.
8.3.2. AS-IS SITUATION
Business Processes
Supply Chain operations are centered on two business processes: A description of each follows:
Purchasing
The Purchasing process is decentralized among multiple entities: WAJ, NGWA, JVA, and LEMA. Each of these entities has their own Purchasing sub-department which follows the Finance Department of that entity
The Purchasing process follows four major steps: Purchase Requisition, Tendering, Evaluation, and PO Generation and Awarding
Jordan Water Sector – IT Master Plan 45 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
The Purchasing process follows very well defined procedures established by the “Supplies Act”, for material tenders, and the “General Works Bylaw” for works tenders. The procedures have defined purchasing methods and authorities. The Supplies Act is enforced by the General Supplies Department of the Ministry of Finance
Some minor variations exist between the 4 entities in the procedures followed during a procurement process. For example:
Committees’ authorities differ between WAJ and JVA. WAJ has a central committee with is authorized to handle tenders with a ceiling of 5 M JD. JVA forms multiple committees; their authority ceiling is 20,000 JD
At WAJ Direct Purchases is more decentralized, while at JVA it’s more centralized and controlled
WAJ has the authority to import material from other countries; JVA does not The annual Procurement Budget is estimated by each department separately, and sent to the
Ministry of Finance in the Dec – Jan timeframe. Departments implicitly expect that the Ministry of Finance will only grant 50% - 60% of the requested budget
Budget allocation is dependant on Parliamentary approval. The entities do not receive formal approval of the budgets until Apr - May of each year. This leaves the Purchasing Departments without a budget for almost 1.5 quarter of the year
If Purchasing departments do not spend the allocated budget by Dec of every year, they will loose the remaining allocated budget for that year. Therefore (absent reform of GoJ Procurement regulations and processes), Purchasing departments would benefit by greater speed and efficiency in processing Purchase Requests in general, but especially at year end, to avoid loosing the allocated budget
Inventory Management
Inventory management is decentralized among WAJ and JVA. NGWA is considered semi-independent, as they operate their own warehouses, but they are still governed by WAJ main warehouse
The Inventory process includes 5 major activities: Receiving, Issuance, Custody Management, Item Management, and Stock-taking
Inventory management is controlled by Central warehouses: Ein Ghazal for WAJ, and Houfa for NGWA. The Central warehouses are responsible for managing the Sub-Warehouses. The Sub-Warehouses are mainly used for inventory distribution. JVA does not have a Central warehouse, as they follow a specialized stores approach with each warehouse specializing in managing one material category
In WAJ, there are a total of 54 Central and Sub-Warehouses distributed roughly equally across the Northern, Southern, and Middle governorates. JVA has an additional 10 warehouses
The total value of inventory fluctuates throughout the year because of budget timing and funds availability – reaching its peak in mid-late summer and falling to a minimum in mid-winter. We estimate total sector inventory varies from 15 to 30M JD over the course of a year.
WAJ and its Operating Utilities account for approximately 13 to 27 M JD, while JVA accounts for 2 to 3 M JD approximately
Jordan Water Sector – IT Master Plan 46 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
Systems Support
Currently, Purchasing and Inventory Management across the sector are primarily supported manually (e.g. card indexes) or by using Excel sheets, but this situation is changing rapidly with the ongoing implementation of the Oracle e-Business suite Purchase Order (PO) and Inventory30 (INV) modules. This implementation primarily focuses on the financial aspects of Purchasing and Inventory, in order to prepare the data required for other financial modules. Optimum configuration of comprehensive Purchase Order and Inventory management modules from a physical item control perspective is out of scope for FAS.
Purchasing
At WAJ the FAS- PO module has been implemented to handle PO generation to closing. Tendering is still done manually.
At JVA and NGWA purchasing is still handled manually and supported by Excel sheets, FAS is still in testing phase.
At LEMA, purchasing is also handled manually and supported by Excel sheets. FAS implementation was stopped.
Inventory Management
Generally, systems support is focused on the Central warehouses, while Sub-Warehouses rely on manual card indexes. The geographical scope of the Oracle INV module covers 3 WAJ warehouses: WAJ - Ein Ghazal, JVA - Dirar, and NGWA – Houfa. Sub-Warehouses are out of scope for FAS.
At WAJ Central warehouse, 95% of operations are still handled using Cobol. Currently FAS is only used for 5% of operations.
User-friendliness is a major issue affecting this, but we understand that there are also integration issues between the PO and INV modules, the “stock on hand’ concept used by WAJ is not configured and invoices for transfers to Operating Utilities are not included. We understand that these items are being considered for inclusion in an extension of the FAS project, but were unable to obtain a SOW from USAID for this by the date of this report.
At WAJ Sub-Warehouses, inventory management is handled entirely using manual cards because of the lack of connectivity.
At JVA Central store, a combination of Excel sheets, manual card indexes, and the Oracle INV module is being used. Difficulties in identifying or hiring super-users, combined with ongoing changes in the inventory coding system, are understood to be the barriers. The remaining warehouses rely on manual card indexes – again for lack of connectivity reasons.
At NGWA, inventory management is done using manual cards but the FAS PO and INV modules are expected to go-live sometime later this year.
LEMA uses a combination of a simple Access database, and manual card indexes (it has so far been out of the FAS project scope – although this may change given its imminent corporatization)
8.3.3. MAJOR IMPROVEMENT AREAS
The following major improvement areas were identified:
30 Or Warehouse Management module
Jordan Water Sector – IT Master Plan 47 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
Purchasing
Optimize PO cycle time (from Needs Identification to PO Awarding) – to speed, and increase the efficiency of the PO process. Currently, the manual process causes delays in material requisition which could affect the performance of a project, or of the department requesting the material
Reduction of PO errors - errors in PO information are estimated at approximately 5%. Errors result from manually exchanging PO information between multiple parties (the Department originating the Purchase Request, the Purchasing Department, the Warehouse, and Finance Department). Typical errors include material specifications, number of items requested, value of requested items etc.
Automating the PO generation process would reduce the error rate. If limited desktop access is a barrier to broader deployment of the PO module (along with possible incremental license requirements, a simple way to do that would be to provide access to a Purchase Requisition e-Form through the self-service terminals suggested under the Collaboration component of the ITMP. These forms would be routed electronically to Central Purchasing and could be automatically sorted within the Collaboration suite to enable a consolidated PO to be raised.
Consolidation of POs – both within an entity (e.g. consolidating direct purchases in JVA), and potentially among multiple entities (WAJ and JVA). Currently, determining material requirements, and generating POs is decentralized among the entities, resulting in duplication of POs, and overstocking of some inventory items. The PO module could be reconfigured to support automatic consolidation of POs. This should assist in getting a better price and quality from the vendor. It will also reduce overstocking of items
Inventory Management
Optimize inventory levels to reduce excess inventory and avoid inventory shortages – as highlighted above, we estimate that 50% of the total inventory value is currently “just-in-case” inventory. While some of this is likely justifiable on the grounds of unexpected maintenance needs, there appears to be scope for significant (one-time) inventory reduction. When implementing supply chain systems, most utilities discover large potential inventory reductions are possible (see below), and they target configuration of their supply chain systems accordingly
Reducing inventory losses - from dead stock, damaged, expired, and lost inventory Consolidation of Sub-Warehouses – there appears to be scope for reducing the number of Sub-
Warehouses – but detailed optimization studies (trading off the cost of additional transfers between stores against inventory carrying costs) would need to be carried out to confirm this
Providing communications infrastructure to connect Sub-Warehouses with the Central warehouse within an entity, and potentially to connect Central warehouses between different departments – to reduce, and improve control over, total inventory levels, and to prevent overstocking in a Sub-Warehouse, while the Central warehouse sees a need to order this material.
8.3.4. FUTURE BUSINESS REQUIREMENTS
Future Needs
The workgroup identified the following future business requirements for Purchasing and Inventory Management. The group discussed these requirements with the Oracle FAS team, to determine if any of them will be achieved under the current FAS configuration. The FAS team indicated that, except for managing custody items and monitoring vendor performance, none of the following business requirements in Table 7 below are currently within their Scope of Work.
The requirements here represent what we believe to be applicable best practice for the Jordan water sector. To the extent they can be achieved through additional configuration of the Oracle PO and INV
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NNoo.. BBuussiinneessss RReeqquuiirreemmeenntt JJuussttiiffiiccaattiioonn Purchasing
1 Automate the purchasing process (from needs Identification to awarding of PO)
Accommodate flexible procedures but automate tender procedures as far as possible - including evaluation and award. Manage workflow for approvals and awards electronically with both internal staff and suppliers Would require Oracle Sourcing module (not currently licensed)
2 Maintain purchase item specifications Ensure specifications are consistent - and changes/overrides are properly approved through internal workflow management
3 Monitor vendor performance Provide supplier history on pricing and quality of items purchased (included in current Oracle FAS PO module configuration)
4 Consolidate POs wherever possible Leverage sector-wide purchasing power to reduce price and increase quality of purchased goods
5 Support e-Procurement Routine orders can be processed over the internet - subject to GoJ procurement regulations
6 Support e-Payment Following appropriate matching, pay supplier electronically Inventory
1 Defining, and complying with optimal safety stock levels by item Reduce inventory levels and avoid inventory shortages
2 Tracking losses by type (e.g. damaged, expired, dead stock, other loss)
Losses are not currently tracked, and the cost of losses is not estimated – tracking them will enable them to be reduced
3 Consolidating Sub-Warehouses Reduce inventory levels and carrying costs – improve control over items
4 Providing communications infrastructure to connect Sub-Warehouses31
Reduce overstock & non-moving items due to lack of connectivity between warehouses, reduce number of POs needed and improve availability of real-time inventory information
5 Managing custody items To be carried out under current Oracle INV module configuration
6 Improving item management, and tracking of sub-items Improve efficiency of item and assembly management
7 Use of bar coding or RFID Physical tracking of high value items Would require Oracle Warehouse Management (RFID) module (not currently licensed)
Table 7 - Future Business Requirements
modules already being implemented, they represent quick wins. Further detailed configuration, studies supported by additional business case development, should be done to provide justification for each requirement – especially where incremental Oracle module purchases or licenses for additional users of current modules would be needed.
Best Practices
Almost all of the future business requirements identified above are recognized supply chain best practices. During implementation of supply chain systems, typical targeted and realized benefits from
31 The costing implications of this requirement are considered further under the Infrastructure component. Implementation would be phased – starting with the stores with the highest total inventory values. Consolidation studies should be completed first to optimize store locations.
Jordan Water Sector – IT Master Plan 49 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
leveraging these best practices in other utilities are shown in Table 8 below.
Benefit Performance Improvement IInnvveennttoorryy rreedduuccttiioonn ttyyppiiccaallllyy 2200 –– 7755 %% oonnee--ttiimmee Inventory loss reduction typically 10 – 20% annually Shorter purchasing cycle (needs identification to delivery) typically 10 – 60% reduction Improved asset utilization typically 10 – 50% improvement
Table 8 - Typical Performance Improvements from Best Practices
Additional “Jordanization” Considerations
GoJ procurement regulations constrain the purchasing process as follows:
Non-competitive bidding is not permitted. The Purchasing Department is not allowed to contact a supplier directly based on a previous successful relationship, even though internal controls could be introduced through the supply chain system to prevent possible abuse
The basis for tender evaluation is solely “best price” – no consideration is given to quality, or any other criteria.
Multiple authorities are involved in monitoring the purchasing process including (Internal Accounting, Internal Monitoring Unit, General Supplies Department, and MWI Finance Department). This adds multiple checkpoints, and slows the required approvals for purchasing.
Rationalization of these constraints would likely require a change in the law. The economic case for this (especially across the whole Government sector appears strong). For the moment they must be accepted as constraints in any supply chain implementation but such implementation should also be flexible to accommodate possible future relaxation of these constraints.
Timing of budget disbursement – as discussed above, budgets are submitted to the Ministry of Finance in the Dec- Jan timeframe. Approval and budget allocation is received in the April – May timeframe. Purchasing Departments are not permitted to issue any POs for almost 1.5 quarters of the year, and they have to respond to all purchasing requests within 2.5 quarters of the year. This approach might result in overstocking inventory to face the lack of budget for 1.5 quarters of the month.
While budget planning and preparation is currently de-centralized, there is an opportunity to improve centralized consolidation of budgets, better track what the sector is spending on what, and consolidate and adjust budgets on a more rational basis with an audit trail of justifications for such adjustments. Support for such an approach would need to be provided in the Budgeting system (see Back Office component)
Human resources issues – the current employee base does not possess the necessary skills to fully support an Oracle e-Business Supply Chain system. This issue is more apparent in warehouses and sub-warehouses outside of Amman. Training is not a sufficient solution to this issue, as employees do not have the minimum skill requirements to receive the training
Organization politics – these considerations relate to inter-departmental relationships and control over sub-warehouses by Governorates. Departments prefer to manage their purchasing and inventory operations autonomously, to maintain their control, and independence in their decision making and budget spending. This should be encouraged and supported generally by supply chain systems – because it moves accountability for performance closer to the Operating Utilities while still allowing centralized monitoring and rational fully justified budget consolidation
Jordan Water Sector – IT Master Plan 50 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
8.3.5. BENEFITS IDENTIFICATION
Major Benefits Sources
Tangible Benefits
Optimization of inventory levels - define, plan, and implement rational maximum and minimum inventory levels, to avoid inventory shortages or overstocking
Reduction of inventory losses (e.g. through damage, expiry, dead stock) - measuring inventory losses in warehouses, and sub-warehouses across the sector, will assist the sector in understanding and controlling the causes of losses, which will result in minimizing the losses
Reducing PO cycle time - (needs identification – awarding) – automation of the PO cycle will assist in speeding and increasing the efficiency of this process. This becomes particularly important to manage the loss of 1.5 quarter of the year, during which the purchasing department is waiting for Parliamentary approvals. This will also assist the department in avoiding any budget loss at the end of the year, because it could not process the Purchase Requests by Dec
Other Intangible Benefits
Improving information sharing by providing communications infrastructure to connect Central and Sub-Warehouses with each other, and with the Purchasing Department – this will prevent inventory overstocking in certain sub-warehouses, and will assist the Central warehouse in monitoring and controlling inventory in Sub-Warehouses. Also, it will assist the Purchasing department in making informed decisions on purchasing requirements based on accurate understanding of inventory availability
Improving item management and the ability to track sub-items and assemblies – currently there is no effective tracking of sub-items. Improving overall item and sub-item management will help in measuring and controlling the cost of sub-item replacement, and avoiding warranty expiry before utilization
Improving the reliability and efficiency of the stock taking process – currently the purpose of the stock taking process in the water sector is very different from its purpose in the private sector. The purpose of this process in the sector is monitoring and loss reduction, while its focus should also be on planning and controlling
Improving reporting – both for regular management reports and for drill-down ad-hoc queries on individual items or sub-items
Estimation of Tangible Benefits
Optimization of inventory levels will result in an estimated one time 5 M JD saving
Current maximum total inventory value for the water sector is estimated at 30 M – with the minimum value being 15 M
50% of total stock value is therefore likely to be “just-in-case” inventory We assume that 33% of this “just-in-case” inventory could be eliminated for a one time
reduction of inventory levels of 5 M JD Reduction of inventory losses (damage, expiry, dead stock… etc) will result in a 1.05 M JD/year.
Total inventory losses across the sector are estimated at 10% of minimum inventory or 1.5M JD / year
Assuming a reduction in losses of 10% to 3% is possible will result in a saving of 1.05 M JD/year.
Jordan Water Sector – IT Master Plan 51 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
Reducing PO cycle time (Need Identification – Awarding) will reduce PO cycle time from 6 – 2 weeks (note this is a tangible benefit but it is not easily valued in monetary terms)
currently the average PO takes 30 days to process; while the average Pre - PO process takes another 60 days
The majority of the delay therefore lies in the Pre - PO process, (i.e. Needs Identification - PO Raising). The major reasons for delay are routine, lack of information, manual information collection... etc.
assuming the Pre - PO process can be cut to an average of 2 weeks, a four week saving in PO cycle time would result
8.3.6. EVALUATION OF AVAILABLE SOLUTION OPTIONS
The development of solution options in this case has to carefully consider the need for tight integration of AM-MM and Supply Chain functionality, already described above under the AM-MM component. This is difficult to do in advance without hearing from each of the AM-MM vendors what their suggested integration approach (which should be based on their extensive experience of such integration) would be. There are two main options (which are also illustrated in Figure 3 below):
Use the Oracle e-Business Suite PO and INV modules to continue to handle just the financial aspects of purchases and inventory management. The AM-MM system would handle optimization of the physical aspects (which a best of breed AM-MM system should be better able to do). Both physical and financial data by item and sub-item would be real-time “mirrored” between the two systems so they are always fully synchronized
Substantially reconfigure the Oracle e-Business Suite PO and INV modules to handle optimization of physical aspects (AM-MM would still provide the maintenance “intelligence” to define “just-in-case” safety stocks by item). Again mirroring would be used to keep the two systems synchronized. Note that, at least in principle, to a large extent this reconfiguration could be done in advance of the AM-MM implementation
The third option which is to do both financial and physical processing in the AM-MM system is also valid. In principle, while this would break the financial “integrity” of the Oracle e-Business Suite implementation, a parallel here can be drawn with CIS/Billing where customer account detail is maintained in a separate system to Oracle financials and updated to the latter in summary form periodically. Similar treatment could be applied to item management. From a purely rational economic perspective the sunk costs of already implementing the PO and INV modules to cover financial functionality should not affect a future decision on the best option to follow above. However, recognizing Oracle’s strong financial functionality and likely resistance from both the sector and the donors, we have not considered this option further.
Jordan Water Sector – IT Master Plan 52 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd
AM/MM
S/C – Financial & Physical
S/C – FinancialO
ptio
n 1:
O
ptio
n 2:
Ora
cle
Ora
cle
AM B
OB
AM B
OB
S/C - Physical AM/MM
Figure 3 - Supply Chain Solution Options
The key point to make here is that the vision of the combined AM-MM- Supply Chain project is far greater than the FAS project Scope of Work defined. This underscores the importance of the key ITMP principles of more process performance targeted, benefit / cost justified, tightly defined Scopes of Work, and benefits realization tracked systems implementations.
The pros and cons of options 1. and 2. are summarized in Table 9 below.
Table 9 - Comparison of Supply Chain Solution Options
Note that in-house development (assisted or not) is again simply not a realistic option here – it obviously makes more sense to better leverage the Oracle e-Business Suite implementation – with or without a best of breed AM-MM system (depending on the result of the AM-MM systems selection described above which might include the Oracle e-Business Suite EAM module).
OOppttiioonn AAddvvaannttaaggeess DDiissaaddvvaannttaaggeess 1. Appropriate integration of
Oracle PO and INV modules with the proposed AM-MM system – with the latter handling physical item optimization
Closer integration with AM/MM functionality
Substantially better physical item optimization, assuming a best of breed AM-MM solution
Possible small incremental cost of additional supply chain module for AM-MM system
Possible delay in implementation
2. Optimization of Oracle PO and INV modules to handle both financial and physical item aspects - in advance of AM-MM implementation
Possibly less cost Some user familiarity with the
Oracle system has been established (though it is still weak)
Leverages existing investment Can be done sooner
Physical item optimization likely to be much less effective
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
Rec
omm
enda
tion
– E
arly
Ven
dor
Invo
lvem
ent
Qui
te c
lear
ly th
is is
a d
iffic
ult c
hoic
e, b
ut th
e va
lue
of th
e be
nefit
s re
aliz
able
arg
ue s
trong
ly f
or a
n ea
rly s
tart
on f
orm
al s
yste
ms
sele
ctio
n so
that
det
aile
d so
lutio
n op
tions
can
be
deve
lope
d, a
nd p
roof
of c
once
pt p
rovi
ded,
by
a ra
nge
of A
M-M
M v
endo
rs a
nd O
racl
e. A
n ob
ject
ive
solu
tion
deci
sion
can
then
be
mad
e. A
stu
dy o
f th
e po
tent
ial
for
Sub-
War
ehou
se c
onso
lidat
ion,
and
ear
ly p
rovi
sion
of
full
com
mun
icat
ions
con
nect
ivity
(un
der
the
Infr
astru
ctur
e co
mpo
nent
of t
he IT
MP)
fol
low
ed b
y w
eb-e
nabl
emen
t of O
racl
e e-
Bus
ines
s Su
ite IN
V m
odul
e fu
nctio
nalit
y, c
an b
oth
be d
one
in p
aral
lel,
or e
ven
ahea
d of
th
is sy
stem
s sel
ectio
n, o
ffer
ing
a “q
uick
win
”.
8.3.
7.
CO
STIN
G A
SSU
MPT
ION
S
The
cost
s of i
mpl
emen
ting
a Su
pply
Cha
in so
lutio
n w
ill d
epen
d on
whi
ch o
ptio
n is
cho
sen,
and
on
wha
t the
opt
imiz
ed in
tegr
atio
n ap
proa
ch b
etw
een
AM
-MM
an
d Su
pply
Cha
in is
. Our
initi
al e
stim
ate,
allo
win
g fo
r som
e re
conf
igur
atio
n of
the
PO a
nd /
or IN
V m
odul
es, a
dditi
onal
lice
nse
fees
for O
racl
e e-
Bus
ines
s Su
ite m
odul
es n
eede
d to
mee
t all
the
futu
re b
usin
ess r
equi
rem
ents
def
ined
abo
ve, a
nd in
clud
ing
likel
y in
tegr
atio
n co
sts i
s $0.
7M.
8.3.
8.
BU
SIN
ESS
CA
SE
Bas
ed o
n th
e be
nefit
s and
cos
ts e
stim
ated
abo
ve, t
he b
usin
ess c
ase
for t
he S
uppl
y C
hain
impl
emen
tatio
n is
show
n in
AN
NEX
6 –
AM
-MM
-SU
PPLY
CH
AIN
B
USI
NES
S C
ASE
. Not
e th
at in
crem
enta
l ong
oing
sup
port
cost
s (d
efer
red
3 ye
ars
beca
use
it is
exp
ecte
d th
at IT
MP
fund
ing
shou
ld c
over
thes
e) a
re in
clud
ed,
even
tho
ugh
they
are
ess
entia
lly i
nsig
nific
ant.
We
have
als
o co
nser
vativ
ely
assu
med
tha
t th
e be
nefit
s of
im
plem
enta
tion
only
beg
in 2
yea
rs a
fter
impl
emen
tatio
n. T
he N
PV o
f th
e im
plem
enta
tion,
ass
umin
g a
10%
dis
coun
t rat
e, is
est
imat
ed to
be
$11.
2 M
. Thi
s re
pres
ents
the
net v
alue
of
the
bene
fits
stre
am a
t the
star
t of t
he im
plem
enta
tion.
The
impa
ct o
f th
e Su
pply
Cha
in im
plem
enta
tion
on th
e ov
eral
l bus
ines
s ca
se f
or th
e IT
MP
is e
xam
ined
in S
ectio
n 12
. Tog
ethe
r th
e co
mbi
ned
AM
-MM
-Su
pply
sys
tem
com
es v
ery
clos
e to
pay
ing
for
the
who
le I
TMP
(i.e.
dis
rega
rdin
g an
y ta
ngib
le b
ut d
iffic
ult
to q
uant
ify b
enef
its f
rom
all
othe
r pr
opos
ed
syst
ems i
mpl
emen
tatio
n co
mpo
nent
s in
the
ITM
P).
8.3.
9.
RIS
K F
AC
TO
RS
AN
D T
HE
IR M
ITIG
AT
ION
A s
igni
fican
t ris
k fa
ctor
in im
plem
entin
g ei
ther
Sup
ply
Cha
in s
olut
ion
optio
n is
use
r res
ista
nce
to O
racl
e so
lutio
ns a
s a
resu
lt of
the
chal
leng
es th
e se
ctor
has
ex
perie
nced
with
im
plem
entin
g FA
S. W
hile
thi
s re
sist
ance
is
not
alw
ays
ratio
nal,
proa
ctiv
e co
mm
unic
atio
n of
the
ben
efits
alre
ady
real
ized
by
the
FAS
impl
emen
tatio
n, i
ncre
asin
g aw
aren
ess
of t
he c
apab
ility
of
optim
ally
con
figur
ed O
racl
e m
odul
es,
soci
aliz
atio
n of
the
bus
ines
s ca
se f
or S
uppl
y C
hain
im
prov
emen
ts,
obje
ctiv
e as
sess
men
t of
“le
sson
s le
arne
d” f
rom
the
FA
S pr
ojec
t an
d th
eir
impl
icat
ions
for
the
HQ
IT o
rgan
izat
ion,
and
ful
l en
d-us
er
invo
lvem
ent i
n th
e fo
rmal
solu
tion
optio
n se
lect
ion
proc
ess d
escr
ibed
abo
ve w
ill a
ll he
lp to
miti
gate
this
resi
stan
ce.
The
qual
ity o
f im
plem
enta
tion
of a
sup
ply
chai
n so
lutio
n w
ill d
epen
d cr
itica
lly o
n th
e de
finiti
on o
f a v
ery
clea
r and
det
aile
d Sc
ope
of W
ork,
on
refin
emen
t of
the
busi
ness
cas
e de
scrib
ed a
bove
, and
on
form
al H
QIT
sig
noff
on
the
vend
or’s
pro
pose
d in
tegr
atio
n an
d/or
Ora
cle
reco
nfig
urat
ion
sche
ma.
As
stat
ed a
bove
w
e re
com
men
d th
at th
e A
M-M
M v
endo
r su
bcon
tract
any
Ora
cle
conf
igur
atio
n re
sour
ces
requ
ired.
We
also
enc
oura
ge th
e de
velo
pmen
t of
a fu
ll pr
oof
of
conc
ept a
nd a
full
and
fran
k di
scus
sion
of t
he in
tegr
atio
n an
d co
nfig
urat
ion
issu
es a
nd ri
sk w
ith th
e H
QIT
.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
Add
ition
ally
, it w
ill b
e im
porta
nt fo
r the
sect
or (t
hrou
gh H
QIT
) to
deve
lop
stro
ng O
racl
e re
conf
igur
atio
n sk
ills i
n or
der t
hat a
ll th
e be
nefit
s of i
mpl
emen
ting
it ca
n be
real
ized
. Tra
inin
g an
d co
achi
ng in
this
topi
c is
incl
uded
in th
e H
QIT
tech
nica
l ass
ista
nce
desi
gn. o
f a c
lear
Wha
teve
r sol
utio
n is
fina
lly s
elec
ted,
its
succ
ess
will
onl
y be
as
good
as
its im
plem
enta
tion.
A n
umbe
r of r
isk
fact
ors
need
to b
e m
itiga
ted
to e
nsur
e th
is. V
endo
r and
/ or
impl
emen
tatio
n co
nsul
tant
ex
perie
nce
shou
ld b
e di
ligen
tly c
heck
ed a
s pa
rt of
the
sele
ctio
n pr
oces
s. H
QIT
will
nee
d to
brin
g its
bes
t pro
gram
man
agem
ent s
kills
and
a te
am o
f use
rs a
nd
IT s
uppo
rt st
aff
will
hav
e to
be
com
mitt
ed f
ull-t
ime
to t
he i
mpl
emen
tatio
n ef
fort.
Sec
tor
read
ines
s bo
th i
n te
rms
of h
uman
res
ourc
es a
nd h
ardw
are
and
com
mun
icat
ions
inf
rast
ruct
ure
mus
t be
in
plac
e an
d pr
oven
bef
ore
impl
emen
tatio
n st
arts
. W
areh
ouse
con
solid
atio
n an
d po
tent
ial
busi
ness
pro
cess
im
prov
emen
ts to
inve
ntor
y m
anag
emen
t pro
cess
es s
houl
d be
stu
died
prio
r to
impl
emen
tatio
n, a
nd a
det
aile
d an
d ac
cura
te fi
xed
asse
ts re
gist
er a
nd in
vent
ory
stoc
k ta
ke (w
ith e
limin
atio
n of
any
dup
licat
e ite
m n
ames
or c
odes
) com
plet
ed, a
nd th
e in
vent
ory
clas
sific
atio
n sy
stem
revi
ewed
.
We
reco
mm
end
a ph
ased
roll-
out a
ppro
ach
base
d on
trai
ning
a d
edic
ated
Cor
e Su
ppor
t Tea
m (C
ST) o
f O&
M p
erso
nnel
, use
rs a
nd IT
sup
port
pers
onne
l. A
pi
lot i
mpl
emen
tatio
n (w
ith N
GW
A)
bein
g th
e m
ost l
ikel
y ca
ndid
ate
wou
ld b
e pr
ogra
m m
anag
ed w
ith f
ull t
rack
ing
of r
ealiz
ed b
enef
its a
gain
st th
e bu
sine
ss
case
. The
CST
wou
ld w
ork
clos
ely
with
the
vend
or a
nd /
or im
plem
enta
tion
cons
ulta
nt to
dev
elop
and
sign
off
on
appr
opria
te d
etai
led
conf
igur
atio
n an
d us
er-
frie
ndly
scr
eens
and
opt
imiz
e O
racl
e in
tegr
atio
n an
d re
conf
igur
atio
n sc
hem
a (to
rea
lize
the
iden
tifie
d Su
pply
Cha
in b
enef
its).
HQ
IT w
ould
pro
vide
rob
ust
qual
ity a
ssur
ance
and
acc
epta
nce
test
ing
and
ensu
re e
xten
sive
trai
ning
of u
sers
and
sup
port
pers
onne
l by
the
vend
or. R
ollo
ut o
f the
sys
tem
to o
ther
Ope
ratin
g U
tiliti
es w
ould
then
be
done
by
the
fully
trai
ned
CST
.
Trai
ning
pla
ns a
nd m
ater
ials
as
wel
l as
refe
renc
e do
cum
enta
tion
mus
t be
mad
e re
adily
ava
ilabl
e in
Ara
bic
by th
e ve
ndor
– fo
r bot
h te
chni
cal a
nd fu
nctio
nal
staf
f.
We
do n
ot re
com
men
d th
e se
ctor
take
on
this
impl
emen
tatio
n un
til w
ell i
nto
the
ITM
P pe
riod.
(NG
WA
als
o pr
efer
s no
t to
star
t im
plem
enta
tion
befo
re m
id-
2008
at t
he e
arlie
st b
ecau
se it
will
be
preo
ccup
ied
with
oth
er in
itiat
ives
in in
clud
ing
com
plet
ing
and
embe
ddin
g its
FA
S im
plem
enta
tion)
. The
sec
tor’
s re
cent
ex
perie
nce
with
sys
tem
s im
plem
enta
tions
has
not
bee
n ve
ry p
ositi
ve a
nd it
is c
lear
that
ext
ensi
ve c
apac
ity n
eeds
to b
e bu
ilt in
tern
ally
to p
rope
rly m
anag
e la
rge
scal
e im
plem
enta
tions
. Thi
s will
take
tim
e. O
ur su
gges
ted
phas
ing
of th
e A
M-M
M im
plem
enta
tion
is d
iscu
ssed
in S
ectio
n 10
.
Oth
er ri
sks
need
ing
to b
e m
itiga
ted
rela
te to
pos
t-im
plem
enta
tion
supp
ort.
Rec
urrin
g su
ppor
t cos
ts a
re in
clud
ed in
the
busi
ness
cas
e so
they
can
be
abso
rbed
w
ithou
t iss
ue. H
owev
er, a
ppro
pria
te d
ue d
ilige
nce
mus
t be
carr
ied
out t
o as
sure
the
qual
ity, c
ost a
nd r
eady
ava
ilabi
lity
of b
oth
rout
ine
and
spec
ial a
d-ho
c su
ppor
t.
8.3.
10.
TIM
ING
OF
IMPL
EM
EN
TA
TIO
N
Cle
arly
this
mus
t be
coor
dina
ted
with
the
AM
-MM
impl
emen
tatio
n if
Opt
ion
1 is
cho
sen
afte
r for
mal
sys
tem
s se
lect
ion.
For
the
reas
ons
stat
ed a
bove
in th
e A
M-M
M c
ompo
nent
, it i
s not
real
istic
to e
xpec
t im
plem
enta
tion
to st
art b
efor
e m
id 2
008.
If O
ptio
n 2
is c
hose
n th
ere
is a
sm
all p
ossi
bilit
y th
at o
ptim
izat
ion
of O
racl
e PO
and
IN
V c
onfig
urat
ion
coul
d st
art s
light
ly e
arlie
r. H
owev
er, b
uild
ing
the
capa
city
of t
he H
QIT
to d
o th
is fo
rmal
sys
tem
s se
lect
ion
and
effe
ctiv
ely
prog
ram
man
age
any
reco
nfig
urat
ion,
whi
le c
ompl
etin
g th
e re
orga
niza
tion,
is g
oing
to
take
tim
e. O
n ba
lanc
e w
e do
not
see
impl
emen
tatio
n of
eith
er o
ptio
n (a
ssum
ing
rigor
ous p
roce
ss is
dul
y fo
llow
ed) a
s fea
sibl
e to
star
t bef
ore
mid
200
8. T
his
is st
ill o
nly
just
one
yea
r afte
r com
plet
ion
of th
e FA
S pr
ojec
t whi
ch it
self
will
still
be
bein
g “e
mbe
dded
” at
that
tim
e.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
8.3.
11.
USA
ID’S
PO
TE
NT
IAL
RO
LE
USA
ID w
ould
aga
in s
uppo
rt Su
pply
Cha
in im
plem
enta
tion
thro
ugh
its lo
ng-te
rm te
chni
cal a
ssis
tanc
e to
the
HQ
IT to
ens
ure
a pr
ofes
sion
al s
olut
ion
sele
ctio
n ta
kes
plac
e, f
ollo
wed
by
qual
ity im
plem
enta
tion
with
ful
l ski
lls a
nd k
now
ledg
e tra
nsfe
r. Th
e ve
ndor
impl
emen
tatio
n co
ntra
ct w
ould
be
man
aged
by
HQ
IT
acco
rdin
g to
USA
ID p
rocu
rem
ent p
roce
dure
s. If
Opt
ion
2 w
ere
sele
cted
we
wou
ld a
dvis
e th
at a
ny O
racl
e re
conf
igur
atio
n as
sist
ance
requ
ired
from
out
side
be
subc
ontra
cted
und
er t
he A
M-M
M v
endo
r co
ntra
ct. T
his
will
ens
ure
sing
le v
endo
r ac
coun
tabi
lity
for
real
izat
ion
of t
he c
ombi
ned
AM
-MM
-Sup
ply
Cha
in
busi
ness
cas
e, a
nd w
ill a
lso
ease
the
prog
ram
man
agem
ent b
urde
n on
HQ
IT.
Aga
in, U
SAID
cou
ld fi
nanc
e al
l or p
art o
f the
impl
emen
tatio
n co
st th
em –
but
su
bsta
ntia
l co-
finan
cing
of t
his i
nitia
tive
by G
oJ is
read
ily ju
stifi
ed b
y th
e bu
sine
ss c
ase.
8.4.
Ex
ecut
ive
Info
rmat
ion
Syst
em (E
IS)
8.4.
1.
EX
EC
UT
IVE
SU
MM
AR
Y O
F W
OR
KG
RO
UP
RE
CO
MM
EN
DA
TIO
NS
Impr
ovin
g th
e av
aila
bilit
y of
tim
ely,
rele
vant
, acc
urat
e an
d ac
tiona
ble
info
rmat
ion
to s
enio
r dec
isio
n m
aker
s in
the
sect
or h
as th
e po
tent
ial t
o pr
oduc
e la
rge
bene
fits
thro
ugh
impr
oved
pla
nnin
g an
d de
cisi
on-m
akin
g an
d ea
sier
ove
rsig
ht o
f sec
tor p
erfo
rman
ce. B
ased
on
the
“wis
dom
” re
sour
ces
avai
labl
e to
us
over
th
e W
orki
ng G
roup
per
iod,
six
are
as w
ere
iden
tifie
d as
crit
ical
– w
ater
situ
atio
n, c
apita
l inv
estm
ents
, pro
ject
s pe
rfor
man
ce, f
inan
ce, a
dmin
istra
tive
and
lega
l, an
d op
erat
ions
and
mai
nten
ance
and
a c
once
pt (
not
in a
ny s
ense
the
fin
al)
desi
gn d
evel
oped
. Det
aile
d de
sign
wor
k is
a s
igni
fican
t ex
erci
se t
hat
will
be
com
plet
ed d
urin
g th
e im
plem
enta
tion
of th
e IT
MP.
The
visi
on fo
r the
EIS
is th
at it
will
ser
ve a
s th
e si
ngle
, cen
tral i
nfor
mat
ion
syst
em, p
rovi
ding
relia
ble,
tim
ely
data
for e
xecu
tives
and
dec
isio
n m
aker
s in
the
wat
er s
ecto
r. Th
e EI
S w
ill p
rovi
de a
com
plet
e pe
rfor
man
ce m
easu
rem
ent f
ram
ewor
k fo
r ex
ecut
ives
, thr
ough
a v
isua
l use
r-fr
iend
ly in
terf
ace.
It i
s pr
imar
ily
targ
eted
at H
eadq
uarte
rs O
rgan
izat
ions
, but
wou
ld a
lso
be a
vaila
ble
to th
e se
nior
man
agem
ent o
f Ope
ratin
g U
tiliti
es. O
pera
ting
Util
ities
will
(som
e al
read
y ar
e) w
ant
to d
evel
op t
heir
own
loca
l M
anag
emen
t In
form
atio
n Sy
stem
(M
IS)
equi
vale
nts
of t
he E
IS t
o su
ppor
t th
eir
own
mor
e de
taile
d op
erat
iona
l an
d pl
anni
ng n
eeds
and
the
perf
orm
ance
man
agem
ent o
f the
ir ut
ility
.
The
EIS
com
pone
nt w
ill b
e cu
stom
des
igne
d to
com
bine
and
app
ropr
iate
ly m
anip
ulat
e da
ta fr
om a
larg
e nu
mbe
r of d
ispa
rate
sour
ce sy
stem
s acr
oss t
he se
ctor
; an
d pr
esen
t se
nior
dec
isio
n m
aker
s w
ith t
he i
nfor
mat
ion
they
req
uire
to
mon
itor
the
sect
or’s
per
form
ance
, ac
t to
cor
rect
neg
ativ
e tre
nds,
and
mon
itor
regu
lato
ry c
ompl
ianc
e. A
wid
e va
riety
of
user
-frie
ndly
, se
lf-se
rvic
e au
thor
ed,
and
read
ily c
usto
miz
able
gra
phic
al o
utpu
ts w
ill b
e su
ppor
ted
– in
clud
ing
scor
ecar
ds,
dash
boar
ds,
ad-h
oc q
uerie
s, cr
oss
tabs
and
eve
nt a
lerts
and
man
agem
ent.
App
ropr
iate
dril
l-dow
n ca
pabi
litie
s w
ill b
e av
aila
ble
in a
ll ou
tput
fo
rmat
s. Fu
ll G
IS in
tegr
atio
n w
ill a
lso
be in
clud
ed.
Solu
tion
optio
ns fo
r an
EIS
use
com
mer
cial
ly a
vaila
ble
(and
qui
te c
ost-e
ffec
tive)
bus
ines
s in
telli
genc
e (B
I) to
ols.
Impl
emen
tatio
n co
sts
are
dom
inat
ed b
y th
e pr
epar
ator
y w
ork
need
ed to
inte
grat
e th
e va
rious
sour
ce d
ata
syst
ems a
nd a
ssur
e th
eir d
ata
qual
ity.
The
busi
ness
cas
e fo
r an
EIS
is li
kely
to b
e ve
ry s
trong
but
ver
y di
ffic
ult t
o qu
antit
ativ
ely
estim
ate
prio
r to
a de
taile
d de
sign
pha
se. A
t thi
s st
age,
it m
ay b
e po
ssib
le to
qua
ntify
the
valu
e of
cer
tain
type
s of d
ecis
ions
, dev
elop
targ
ets f
or th
eir i
mpr
ovem
ent a
nd
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
8.4.
2.
AS-
IS S
ITU
AT
ION
The
curr
ent s
ituat
ion
can
be c
hara
cter
ized
as f
ollo
ws:
The
sect
or’s
dat
a ar
e cu
rren
tly m
anag
ed b
y th
ree
diff
eren
t ent
ities
(WA
J, JV
A a
nd M
WI)
As a
resu
lt, re
dund
ant d
ata
stor
es e
xist
acr
oss t
he th
ree
entit
ies w
ith d
iffer
ent d
ata
form
ats a
nd re
latio
nshi
ps
So
me
data
are
stor
ed in
dat
abas
es -
how
ever
ther
e is
als
o si
gnifi
cant
relia
nce
on E
xcel
file
s and
pap
er re
cord
s
Ther
e is
no
sect
or-w
ide
stan
dard
dat
a di
ctio
nary
– e
xist
ing
data
ther
efor
e su
ffer
s fro
m b
oth
qual
ity a
nd in
tegr
ity is
sues
With
lim
ited
exce
ptio
ns32
, the
re a
re a
lso
no s
tand
ard
data
flo
w p
roce
dure
s co
ntro
lling
dat
a co
llect
ion
from
sou
rces
, and
dat
a tra
nsfe
r an
d ex
chan
ge
betw
een
conc
erne
d us
ers
La
ck o
f coo
rdin
atio
n an
d co
oper
atio
n be
twee
n th
e th
ree
entit
ies
has
resu
lted
in is
olat
ed is
land
s of
info
rmat
ion.
Em
ploy
ees
of o
ne e
ntity
do
not h
ave
any
know
ledg
e ab
out t
he in
form
atio
n av
aila
ble
in a
noth
er e
ntity
, eve
n at
the
mid
dle
man
ager
s lev
el
M
ultip
le a
nsw
ers a
re a
vaila
ble
to m
any
ques
tions
as a
resu
lt
The
deci
sion
to c
reat
e a
new
dat
a st
ore
is o
ften
depe
nden
t on
a de
partm
ent’s
Dire
ctor
, who
doe
s not
alw
ays s
tudy
the
avai
labl
e da
ta st
ores
, or c
onsu
lt w
ith
the
IT d
epar
tmen
t. Th
is h
as re
sulte
d in
info
rmat
ion
sour
ces d
uplic
atio
n an
d in
com
patib
ility
Som
e pr
omis
ing
Info
rmat
ion
Man
agem
ent
(IM
) in
itiat
ives
exi
st i
n th
e m
inis
try (
GTZ
’s S
CW
S /
IIM
pro
ject
s an
d th
e PM
Us
Perf
orm
ance
Ind
icat
ors
proj
ect).
How
ever
, the
sco
pe o
f tho
se in
itiat
ives
is n
arro
w a
nd fo
cuse
d on
MW
I in
the
case
of G
TZ, a
nd o
n W
AJ
oper
atio
ns in
the
case
of P
MU
. The
re is
no
ove
rarc
hing
vis
ion
of d
ata
and
info
rmat
ion
avai
labi
lity
So
me
info
rmat
ion
sour
ces d
o no
t cur
rent
ly e
xist
in a
n ef
fect
ive
form
– fo
r exa
mpl
e:
A
lega
l cas
e tra
ckin
g sy
stem
(cov
erin
g bo
th th
e st
atus
of c
ases
and
thei
r cos
ts a
nd c
ontin
gent
liab
ilitie
s)
A
cap
ital i
nves
tmen
ts -
pro
ject
s m
anag
emen
t sys
tem
(tra
ckin
g pr
ojec
t sta
tus
and
finan
cing
, and
com
parin
g a
ctua
l pro
ject
per
form
ance
to
desi
gn
spec
ifica
tions
8.4.
3.
FUT
UR
E B
USI
NE
SS R
EQ
UIR
EM
EN
TS
To b
uild
a c
once
pt d
esig
n fo
r a fu
ture
per
form
ance
man
agem
ent v
isio
n fo
r the
wat
er se
ctor
, the
Wor
king
Gro
up ta
pped
the
wis
dom
of s
enio
r sec
tor r
esou
rces
,
32 A
not
able
exa
mpl
e w
ould
be
the
Gro
undw
ater
Mon
itorin
g an
d Ev
alua
tion
Dep
artm
ent (
GM
ED) p
roje
ct, f
unde
d by
USA
ID, w
hich
is d
evel
opin
g da
ta in
tegr
ity sy
stem
s an
d st
anda
rds
for b
ulk
met
erin
g.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
who
are
rec
ogni
zed
for
thei
r lo
ng a
nd in
tens
ive
expe
rienc
e of
und
erst
andi
ng e
xecu
tive
deci
sion
-mak
ers
requ
irem
ents
in th
e Jo
rdan
ian
wat
er s
ecto
r. Th
ose
reco
gniz
ed so
urce
s of w
isdo
m a
re:
En
g. Y
ouse
f Has
san,
Dire
ctor
of P
lann
ing
Dep
artm
ent i
n JV
A, p
revi
ous A
SG fo
r Pla
nnin
g an
d In
form
atio
n at
JVA
, and
pre
viou
s WM
IS D
irect
or
En
g. S
uzan
Tah
a, D
irect
or o
f Nat
iona
l Wat
er M
aste
r Pla
n (N
atio
nal W
ater
Mas
ter P
lann
ing
and
Wat
er In
form
atio
n Sy
stem
), an
d Pr
ojec
t Coo
rdin
ator
for
the
Stee
ring
Com
pete
nce
(SC
WS)
pro
ject
fund
ed b
y G
TZ
Th
e gr
oup
also
sol
icite
d th
e in
put
of v
ario
us e
xper
t re
sour
ces
at N
GW
A,
WA
J, JV
A,
MW
I, G
TZ,
PMU
, an
d N
atio
nal
Age
nda
– G
over
nmen
t Pe
rfor
man
ce M
onito
ring
Uni
t.
The
grou
p us
ed th
e fo
llow
ing
appr
oach
to id
entif
y th
e fu
ture
bus
ines
s req
uire
men
ts:
It
first
iden
tifie
d 6
key
perf
orm
ance
man
agem
ent a
reas
(sub
ject
are
as) t
hat a
llow
us
to e
valu
ate
the
sect
or’s
per
form
ance
. Tho
se a
re li
sted
bel
ow in
Tab
le
10 b
elow
:
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
1. W
ater S
ituati
on
Meas
uring
the
perfo
rman
ce o
f the
wate
r bud
get i
nclud
ing re
sour
ces,
supp
ly, a
nd d
eman
d. Al
so m
easu
ring
the p
erfor
manc
e of
water
qua
lity,
non-
conv
entio
nal w
ater,
and
non-
reve
nue
water
, usin
g his
torica
l and
pr
ojecte
d data
.
2. Ca
pital
Inves
tmen
t Me
asur
ing th
e pe
rform
ance
of t
he c
apita
l inv
estm
ent p
lan, f
undin
g sta
tus, a
nd ex
pecte
d yiel
d.
3. Pr
ojects
Per
forma
nce
Meas
uring
the
perfo
rman
ce o
f sec
tor p
rojec
ts inc
luding
fina
ncial
and
no
n-fin
ancia
l per
forma
nce.
4. Fin
ance
Me
asur
ing th
e pe
rform
ance
of f
inanc
ial p
lannin
g, sp
endin
g, re
venu
e, co
st re
cove
ry, ta
riffs,
and o
vera
ll fina
ncial
susta
inabil
ity of
the s
ector
5. Op
erati
on &
Main
tenan
ce
Meas
uring
the
pe
rform
ance
of
plant
oper
ation
s, cu
stome
r ma
nage
ment,
netw
ork e
fficien
cy, a
nd en
ergy
cons
umpti
on
6. Ad
minis
trativ
e, HR
& Le
gal
Meas
uring
the
perfo
rman
ce o
f hum
an re
sour
ces,
includ
ing: m
anpo
wer
and
succ
essio
n pla
nning
, tra
ining
plan
s, an
d tur
nove
r and
reten
tion
statis
tics
Trac
king a
nd m
onito
ring l
egal
affair
s Me
asur
ing th
e per
forma
nce o
f any
othe
r key
admi
nistra
tive f
uncti
ons
Tabl
e 10
- EI
S Se
ctor
Per
form
ance
Man
agem
ent A
reas
Nex
t the
Gro
up:
Id
entif
ied
mor
e de
taile
d in
form
atio
n ne
eds f
or e
ach
of th
e 6
subj
ect a
reas
Det
erm
ined
futu
re re
porti
ng fr
eque
ncy
Id
entif
ied
curr
ent d
ata
sour
ces
acro
ss a
ll en
titie
s ( M
WI,
WA
J, JV
A, a
nd N
GW
A) a
nd k
ey is
sues
and
con
stra
ints
rela
ted
to d
ata
qual
ity, a
vaila
bilit
y, a
nd
freq
uenc
y
Col
lect
ed in
form
atio
n, a
nd d
ocum
ente
d A
s-Is
Dat
a flo
ws r
elat
ed to
the
6 ke
y pe
rfor
man
ce a
reas
acr
oss a
ll en
titie
s
Des
igne
d pr
otot
ype
scre
ens t
o so
licit
feed
back
and
refin
e th
e bu
sine
ss re
quire
men
ts
Id
entif
ied
curr
ent I
nfor
mat
ion
Man
agem
ent (
IM) i
nitia
tives
, and
map
ped/
docu
men
ted
thei
r rel
evan
ce to
the
EIS
initi
ativ
e
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
D
evel
oped
a c
once
ptua
l to
-be
visi
on d
escr
ibin
g th
e re
latio
nshi
p be
twee
n C
apita
l In
vest
men
t, Fi
nanc
e, a
nd P
roje
ct M
anag
emen
t as
an
exam
ple
of a
pe
rfor
man
ce m
anag
emen
t “cl
osed
loop
”
Met
with
the
follo
win
g ke
y re
pres
enta
tives
to d
iscu
ss a
nd re
fine
requ
irem
ents
:
G
TZ:
Dr.
Phili
p M
agie
ra
PM
U: W
alee
d Su
kkar
Gov
ernm
ent P
erfo
rman
ce M
onito
ring
Uni
t, Pr
ime
Min
istry
: May
soon
El-Z
oubi
8.4.
4.
BE
NE
FIT
S ID
EN
TIF
ICA
TIO
N
Diff
icul
ty in
Qua
ntify
ing
Tan
gibl
e B
enef
its
Impl
emen
tatio
ns o
f EI
S in
diff
eren
t or
gani
zatio
ns h
ave
prov
en t
o re
nder
mul
tiple
tan
gibl
e be
nefit
s. Th
e na
ture
of
the
bene
fits
diff
er b
ased
on
the
orga
niza
tion’
s na
ture
, siz
e, a
nd p
re-im
plem
enta
tions
’ sta
tus
(ava
ilabi
lity
of d
ata
in a
sta
ndar
dize
d an
d qu
ality
ass
ured
man
ner)
. Als
o, th
e ab
ility
to q
uant
ify
thos
e ta
ngib
le b
enef
its d
iffer
s fr
om o
ne o
rgan
izat
ion
to a
noth
er. T
here
fore
, the
typi
cal b
usin
ess
case
mod
el, u
sed
to c
alcu
late
the
retu
rn o
n in
vest
men
t for
an
appl
icat
ion
syst
ems R
OI d
oes n
ot a
lway
s app
ly to
the
EIS
situ
atio
n.
The
follo
win
g ar
e so
me
of th
e an
ticip
ated
tang
ible
ben
efits
from
impl
emen
ting
an E
IS in
the
Wat
er se
ctor
:
Mak
ing
mor
e in
form
ed a
nd b
ette
r pla
nnin
g an
d op
erat
iona
l dec
isio
ns o
n th
e ba
sis o
f com
mon
shar
ed in
form
atio
n
Incr
ease
d in
divi
dual
acc
ount
abili
ty a
nd r
espo
nsib
ility
for
man
agem
ent
actio
n ac
ross
the
org
aniz
atio
n th
roug
h th
e pr
ovis
ion
and
supp
ort
of a
co
mpr
ehen
sive
fram
ewor
k fo
r per
form
ance
mea
sure
men
t acr
oss t
he se
ctor
Avo
idin
g th
e co
sts o
f bad
dec
isio
ns b
ased
on
mul
tiple
unr
elia
ble
data
sour
ces
Fa
ster
iden
tific
atio
n an
d co
rrec
tion
of p
erfo
rman
ce a
nd c
ompl
ianc
e is
sues
Spee
dier
dec
isio
n m
akin
g an
d ap
prov
als e
nabl
ing
mor
e ra
pid
sect
or p
erfo
rman
ce im
prov
emen
t
Savi
ng o
f sec
tor l
eade
rshi
p’s t
ime
curr
ently
spen
t on
com
mun
icat
ion
with
staf
f or w
ith o
ther
exe
cutiv
es to
col
lect
or a
naly
ze d
ata
Sa
ving
the
cos
t of
pro
cess
ing
and
mai
ntai
ning
red
unda
nt d
ata
stor
es (
allo
win
g th
e al
loca
tion
of m
iddl
e le
vel
prof
essi
onal
sta
ff t
o m
ore
valu
e-ad
ded
dutie
s)
Sa
ving
s in
info
rmat
ion
dist
ribut
ion
cost
s, in
clud
ing
the
cost
s of m
emos
and
doc
umen
ts in
term
s of p
aper
, cop
ying
, bin
ding
and
mai
ling
Maj
or In
tang
ible
Ben
efits
The
follo
win
g ar
e m
ajor
inta
ngib
le b
enef
its e
xpec
ted
from
the
EIS
impl
emen
tatio
n:
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
Pr
ovid
ing
sect
or le
ader
ship
in g
aini
ng a
com
preh
ensi
ve (b
oth
broa
d an
d de
ep) u
nder
stan
ding
of t
he o
rgan
izat
ions
per
form
ance
, as o
ppos
ed to
focu
sing
on
som
e ar
eas d
ue to
lim
ited
time
or in
form
atio
n av
aila
bilit
y
Prov
idin
g a
clea
r in
sigh
t in
to o
rgan
izat
ions
per
form
ance
at
mul
tiple
lev
els,
star
ting
at t
he o
vera
ll se
ctor
s’ p
erfo
rman
ce,
and
drill
ing
dow
n to
a
depa
rtmen
tal,
utili
ty o
r geo
grap
hica
l per
form
ance
Bet
ter a
ligni
ng th
e se
ctor
’s o
bjec
tives
acr
oss t
he th
ree
entit
ies (
MW
I, W
AJ,
and
JVA
), an
d w
ith th
e N
atio
nal A
gend
a ob
ject
ives
Inte
grat
ing
info
rmat
ion
from
the
thre
e en
titie
s (M
WI,
WA
J, an
d JV
A),
into
one
sing
le in
form
atio
n sy
stem
Incr
easi
ng tr
ansp
aren
cy a
nd v
isib
ility
of i
nfor
mat
ion
M
onito
ring
and
cont
rolli
ng d
ata
qual
ity a
nd in
tegr
ity
R
educ
ing
busi
ness
dep
ende
ncy
on IT
for r
outin
e re
port
deve
lopm
ent a
nd a
d-ho
c in
form
atio
n an
alys
is
For t
he re
ason
s out
lined
abo
ve, w
e ha
ve n
ot b
een
to d
evel
op a
qua
ntita
tive
busi
ness
cas
e. H
owev
er, w
e re
com
men
d th
at d
urin
g th
e de
taile
d de
sign
stag
e so
me
spec
ific
quan
tifia
ble
deci
sion
type
s ar
e id
entif
ied
and
quan
tifie
d as
exa
mpl
e be
nchm
arks
for a
ssur
ing
the
qual
ity o
f the
impl
emen
tatio
n. T
his
is m
uch
mor
e lik
ely
to b
e dr
iven
by
the
data
pre
para
tion
wor
k (d
escr
ibed
furth
er b
elow
) tha
n by
the
actu
al p
rogr
amm
ing
and
impl
emen
tatio
n of
the
BI t
ool.
8.4.
5.
EV
AL
UA
TIO
N O
F A
VA
ILA
BL
E S
OL
UT
ION
OPT
ION
S
Unl
ike
spec
ializ
ed o
pera
tiona
l and
bac
k of
fice
appl
icat
ions
, Bus
ines
s In
telli
genc
e ap
plic
atio
ns a
re b
ecom
ing
com
mod
ity s
oftw
are
tool
s us
ed b
y al
l kin
ds o
f or
gani
zatio
ns. F
orm
al sy
stem
s sel
ectio
n is
still
nec
essa
ry to
com
pare
the
feat
ures
of d
iffer
ent p
rodu
ct o
ffer
ings
, but
the
qual
ity o
f ven
dor r
elat
ions
(in
term
s of
a tru
e pa
rtner
ship
) and
the
avai
labi
lity
of lo
cal s
uppo
rt m
ay b
e m
ore
impo
rtant
sele
ctio
n cr
iteria
than
just
pro
duct
feat
ures
for E
IS. T
he c
reat
ivity
of t
he to
ol is
lim
ited
only
by
the
avai
labi
lity
of q
ualit
y da
ta w
ithin
the
impl
emen
ting
orga
niza
tion.
A n
umbe
r of w
ell k
now
n in
dust
ry le
ader
s exi
st –
incl
udin
g:
C
ogno
s33
B
usin
ess O
bjec
ts
SA
S
Hyp
erio
n
33 A
ven
dor
dem
onst
ratio
n of
this
pro
duct
was
giv
en to
, and
wel
l rec
eive
d by
, a la
rge
audi
ence
of
sect
or s
taff
by
Bus
ines
s Sy
stem
s G
roup
(B
SG),
a M
iddl
e Ea
st p
artn
er f
or th
e pr
oduc
t. N
o en
dors
emen
t of t
his p
artic
ular
pro
duct
by
the
ITM
P sh
ould
be
impl
ied
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
BI
tool
s fo
rm t
he h
ighe
st l
ayer
of
the
busi
ness
sys
tem
s ar
chite
ctur
e –
sitti
ng o
n to
p of
the
dat
a w
areh
ouse
and
mid
dlew
are
laye
r. Th
e da
ta w
areh
ouse
co
ntin
ually
ext
ract
s, an
d st
ores
in
a qu
ickl
y ac
cess
ible
for
m,
a m
ultid
imen
sion
al s
ubse
t of
dat
a th
at i
s of
gre
ates
t in
tere
st t
o EP
exe
cutiv
es a
nd s
enio
r m
anag
emen
t. Th
ese
data
cou
ld b
e dr
awn
from
man
y so
urce
s in
clud
ing
Ora
cle
e-B
usin
ess
Suite
mod
ules
, cus
tom
er/b
illin
g, o
pera
tiona
l and
mai
nten
ance
and
H
R s
yste
ms,
and
even
pot
entia
lly S
CA
DA
sys
tem
s. A
wid
e va
riety
of
sour
ce f
orm
ats
shou
ld b
e su
ppor
ted
incl
udin
g al
l re
latio
nal
data
base
s, an
d O
LAP
sour
ces,
com
mon
ER
P pl
atfo
rms,
Exce
l, A
cces
s an
d ot
her f
lat f
iles,
and
all d
ata
war
ehou
ses
wha
teve
r the
ir da
ta s
chem
a. U
nico
de s
uppo
rt is
usu
ally
pro
vide
d fo
r “on
-the-
fly”
mul
tilin
gual
repo
rting
.
Each
EIS
use
r ha
s th
eir
own
fully
cus
tom
izab
le “
porta
l” s
cree
n th
at a
llow
s th
em to
rea
dily
acc
ess
and
man
age
the
info
rmat
ion
they
mos
t rou
tinel
y ne
ed.
Diff
eren
t ind
ivid
uals
will
hav
e di
ffer
ent p
orta
l des
igns
acc
ordi
ng to
thei
r nee
ds, b
ut a
ll po
rtals
are
read
ily c
usto
miz
able
by
the
user
(with
littl
e or
no
need
for
IT s
uppo
rt). T
he B
I to
ols
prov
ide
this
fle
xibi
lity
thro
ugh
a se
t of
ful
ly i
nteg
rate
d qu
ery,
ana
lysi
s an
d re
porti
ng t
ools
, bas
ed a
roun
d a
sing
le c
entra
lized
m
etad
ata
mod
el,
whi
ch d
eliv
ers
man
agem
ent
info
rmat
ion
thro
ugh
a w
eb p
orta
l. A
wid
e va
riety
of
user
-frie
ndly
, se
lf-se
rvic
e au
thor
ed,
and
read
ily
cust
omiz
able
gra
phic
al o
utpu
ts s
houl
d be
sup
porte
d –
incl
udin
g sc
orec
ards
, das
hboa
rds,
ad-h
oc q
uerie
s, cr
oss
tabs
and
eve
nt a
lerts
and
man
agem
ent.
Full
drill
-dow
n ca
pabi
litie
s sh
ould
be
avai
labl
e in
all
outp
ut f
orm
ats,
alon
g w
ith d
rag
and
drop
piv
ot a
nd f
ilter
cap
abili
ty. M
ore
adva
nced
com
pone
nts
ofte
n av
aila
ble
as o
ptio
ns in
clud
e an
alyt
ics
engi
nes
to fa
cilit
ate
busi
ness
pla
nnin
g an
d si
mul
atio
n, a
nd d
ata
min
ing
tool
s. Th
e ab
ility
to in
terf
ace
to G
IS s
yste
ms
is
also
an
impo
rtant
con
side
ratio
n fo
r the
wat
er se
ctor
.
BI t
ools
sho
uld
be fu
lly c
apab
le o
f acc
essi
ng a
ny c
ombi
natio
n of
dat
a so
urce
s (O
LAP34
or r
elat
iona
l) w
hile
hid
ing
this
com
plex
ity fr
om th
e us
er a
nd e
nsur
ing
cons
iste
ncy,
inte
grity
and
acc
urac
y of
info
rmat
ion.
Is s
hort
they
sup
port
an o
pen
data
stra
tegy
and
bei
ng fu
lly w
eb-e
nabl
ed e
nabl
e ra
pid
low
-cos
t dep
loym
ent
and
mai
nten
ance
and
lots
of f
lexi
bilit
y to
mee
t evo
lvin
g bu
sine
ss n
eeds
.
Whi
le a
ll ER
P-ba
sed
syst
ems
(incl
udin
g th
e O
racl
e e-
Bus
ines
s Su
ite) c
ome
with
thei
r ow
n re
porti
ng to
ols,
thes
e ar
e of
ten
limite
d in
thei
r fun
ctio
nalit
y an
d in
tegr
atio
n, a
nd m
ay p
ut s
igni
fican
t ove
rhea
d on
the
syst
ems
data
base
and
infr
astru
ctur
e. T
hey
still
typi
cally
requ
ire s
peci
alis
t IT
supp
ort f
or p
rodu
ctio
n of
cu
stom
repo
rts. A
lso
not a
ll su
ch to
ols s
uppo
rt 3r
d pa
rty O
LAP
(mul
tidim
ensi
onal
) too
ls o
r int
erfa
ces.
Crit
ical
ly su
ch re
porti
ng to
ols h
ave
very
lim
ited
abili
ty
to im
port
data
from
oth
er so
urce
s and
bec
ause
they
lack
the
data
war
ehou
se su
ppor
t, th
eir p
erfo
rman
ce is
slow
.
Rec
omm
enda
tion
– Fo
rmal
Sys
tem
s Sel
ectio
n af
ter
Iden
tific
atio
n of
a R
obus
t Dat
a Pl
atfo
rm
Unl
ike
man
y so
ftwar
e ap
plic
atio
ns, a
n EI
S ca
n be
impl
emen
ted
in a
n ev
olut
iona
ry w
ay. I
n ot
her w
ords
, a s
tart
can
be m
ade
with
wha
teve
r dat
a is
ava
ilabl
e pr
ovid
ed th
at u
sers
und
erst
and
the
limita
tions
of t
he d
ata
that
sup
ports
the
info
rmat
ion
prov
ided
by
the
EIS.
In th
e ca
se o
f the
Jor
dan
wat
er s
ecto
r, w
e do
not
re
com
men
d th
at a
form
al sy
stem
s sel
ectio
n of
a B
I pla
tform
be
carr
ied
out u
ntil
mor
e de
taile
d pr
epar
ator
y w
ork
is c
arrie
d ou
t tha
t ide
ntifi
es so
me
area
s whe
re
data
ava
ilabi
lity
is h
igh
and
data
qua
lity
is g
ood.
The
se a
reas
then
form
a ro
bust
pla
tform
to b
egin
an
evol
utio
nary
app
roac
h to
EIS
impl
emen
tatio
n, w
ithou
t ris
king
the
cred
ibili
ty o
f the
who
le sy
stem
.
34 O
n-Li
ne A
naly
tical
Pro
cess
ing
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
In th
e Jo
rdan
ian
wat
er s
ecto
r, th
ere
are
two
area
s th
at a
re a
lread
y w
ell o
rgan
ized
with
gen
eral
ly g
ood
data
qua
lity.
The
se a
re th
e N
atio
nal W
ater
Mas
ter P
lan
and
the
Wat
er S
ecto
r Inv
estm
ent P
lan.
The
Wat
er In
form
atio
n Sy
stem
(WIS
) and
an
ongo
ing
GTZ
initi
ativ
e to
bui
ld a
Pro
ject
s D
atab
ase
prov
ide
a po
tent
ial
robu
st p
latfo
rm. U
sing
this
pla
tform
to in
form
a B
I to
ol s
yste
m s
elec
tion
wou
ld e
nabl
e an
ear
ly s
tart
on a
n ev
olut
iona
ry E
IS a
ppro
ach.
Suc
h an
d ap
proa
ch
wou
ld a
lso
help
to so
lve
som
e of
the
exis
ting
data
inte
grat
ion
issu
es fa
ced
by th
e W
IS (e
.g. w
ith th
e W
MIS
), an
d w
ould
allo
w e
asy
and
flexi
ble
acce
ss to
WIS
an
d Pr
ojec
ts D
atab
ase
info
rmat
ion
(in f
act a
llow
ing
the
two
data
sou
rces
to
be c
ombi
ned
and
cons
olid
ated
vie
ws
(or
“OLA
P cu
bes”
) de
fined
tha
t re
late
pr
ojec
t ne
eds
and
perf
orm
ance
to
the
WIS
) by
sec
tor
lead
ersh
ip.
This
wou
ld h
ave
an i
mm
edia
te i
mpa
ct o
n in
form
atio
n av
aila
bilit
y an
d aw
aren
ess
and
impr
ove
deci
sion
-mak
ing.
In sh
ort,
ther
e is
pot
entia
l her
e fo
r a “
quic
k w
in”
limite
d m
ore
by th
e av
aila
bilit
y of
inte
rnal
reso
urce
s tha
n fu
nds35
.
8.4.
6.
CO
STIN
G A
SSU
MPT
ION
S
Cos
ting
assu
mpt
ions
hav
e to
add
ress
the
cost
s of
pre
para
tory
dat
a w
ork
as w
ell a
s th
e ac
tual
pur
chas
e, p
rogr
amm
ing
and
impl
emen
tatio
n of
the
BI t
ool s
uite
, as
wel
l as
des
ign
of t
he d
ata
war
ehou
se a
nd E
TL36
rou
tines
. Th
e co
sts
of t
he p
repa
rato
ry w
ork
will
sub
stan
tially
exc
eed
thos
e of
the
act
ual
EIS
impl
emen
tatio
n. O
ur e
stim
ated
tota
l cos
t for
the
EIS
initi
ativ
e is
$2.
42M
.
The
follo
win
g as
sum
ptio
ns w
ere
used
in d
evel
opin
g th
ese
cost
est
imat
es:
So
ftwar
e co
sts a
re e
stim
ated
bas
ed o
n 50
use
rs: w
hich
wou
ld in
clud
e th
e M
inis
ter,
SGs,
ASG
s, an
d K
ey D
irect
ors
Th
e M
inis
try w
ill u
tiliz
e ex
istin
g da
taba
se li
cens
es, a
nd w
ill n
ot n
eed
to a
cqui
re n
ew d
atab
ase
licen
ses t
o de
velo
p th
e EI
S ba
ck-e
nd
Fi
nal s
oftw
are
cost
will
var
y ba
sed
on n
egot
iatio
ns w
ith th
e se
lect
ed v
endo
r
Impl
emen
tatio
n co
sts
assu
me
that
all
sour
ce s
yste
ms
are
in p
lace
. Cos
t of s
ourc
e sy
stem
s de
velo
pmen
t is
not i
nclu
ded
(maj
or s
ourc
e sy
stem
s m
issi
ng a
re
bein
g co
vere
d by
the
Bac
k O
ffic
e IT
MP
com
pone
nt)
Im
plem
enta
tion
cost
is s
igni
fican
tly h
ighe
r tha
n so
ftwar
e co
st a
s im
plem
enta
tion
incl
udes
dev
elop
men
t of t
he E
IS d
ata
back
-end
(dat
a ar
chite
ctur
e), a
nd
fron
t-end
(sc
reen
s). D
evel
opin
g th
e EI
S ba
ck-e
nd is
by
far
the
mos
t sig
nific
ant a
nd ti
me
cons
umin
g ta
sk o
f th
is p
roje
ct, w
hich
incl
udes
the
follo
win
g ac
tiviti
es:
Id
entif
ying
dat
a so
urce
s, in
clud
ing
syst
ems,
tabl
es, a
nd fi
elds
Ana
lyzi
ng d
ata
read
ines
s in
term
s of a
vaila
bilit
y, in
tegr
ity, q
ualit
y, a
nd u
pdat
e fr
eque
ncy
D
esig
ning
EIS
dat
a sc
hem
a
35 U
SAID
’s p
ropo
sed
Wat
er D
eman
d M
anag
emen
t Uni
t Pro
gram
whi
ch p
lans
to le
vera
ge th
e W
IS a
nd o
ther
wat
er d
ata
sour
ces
may
pro
vide
a u
sefu
l pla
tform
to in
itiat
e su
ch a
n ef
fort
and
gene
rate
a “
quic
k w
in”
here
. 36
Ext
ract
ion,
Tra
nsfo
rmat
ion
and
Load
– ro
utin
es to
pop
ulat
e an
d re
gula
rly u
pdat
e th
e da
ta w
areh
ouse
from
oth
er so
urce
dat
a sy
stem
s
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
D
esig
ning
Ext
ract
ion,
Tra
nsfo
rmat
ion,
and
Loa
d pr
oced
ures
to p
opul
ate
the
EIS
data
sche
ma
Im
plem
enta
tion
cost
mig
ht v
ary
base
d on
ven
dor s
elec
ted
to p
rovi
de p
rofe
ssio
nal s
ervi
ces
Im
plem
enta
tion
cost
can
sig
nific
antly
var
y ba
sed
on fi
nal s
cope
and
requ
irem
ents
of t
he E
IS (N
o. o
f KPI
s, N
o. o
f scr
eens
... e
tc) –
our
est
imat
es a
re b
ased
on
reas
onab
le a
nd a
dequ
ate
cove
rage
of t
he si
x su
bjec
t are
as d
efin
ed
8.4.
7.
IMPL
EM
EN
TA
TIO
N A
PPR
OA
CH
Dat
a A
rchi
tect
ure
Pre-
Wor
k
Giv
en th
e as
-is s
tatu
s of
info
rmat
ion
in th
e w
ater
sec
tor,
a da
ta a
rchi
tect
ure
exer
cise
is e
ssen
tial t
o th
e su
cces
s an
d su
stai
nabi
lity
of th
e EI
S sy
stem
and
any
fu
ture
Inf
orm
atio
n M
anag
emen
t (IM
), or
Dec
isio
n Su
ppor
t Sys
tem
(D
SS)
initi
ativ
e. T
he f
ollo
win
g st
eps
repr
esen
t a p
rove
n ap
proa
ch to
a s
ucce
ssfu
l dat
a ar
chite
ctur
e ex
erci
se:
Id
entif
y an
d al
ign
Info
rmat
ion
Man
agem
ent i
nitia
tives
, and
coo
rdin
ate
dono
r eff
orts
Iden
tify
exis
ting
data
sour
ces,
dat
a flo
ws,
busi
ness
pro
cess
es, s
tand
ards
and
pol
icie
s
Ass
ess d
ata
read
ines
s in
term
s of a
vaila
bilit
y, q
ualit
y, a
nd u
pdat
e fr
eque
ncy
A
sses
smen
t aga
inst
bes
t pra
ctic
es
D
evel
opin
g of
futu
re p
erfo
rman
ce g
oals
, obj
ectiv
es, a
nd b
usin
ess r
equi
rem
ents
Dev
elop
futu
re d
ata
arch
itect
ure,
dat
a m
odel
s, an
d da
ta d
efin
ition
s
Perf
orm
gap
ana
lysi
s, an
d hi
ghlig
ht a
ny is
sues
Dev
elop
hig
h le
vel c
hang
e m
anag
emen
t and
trai
ning
pla
n
Esta
blis
h da
ta g
over
nanc
e st
anda
rds,
polic
ies,
and
proc
esse
s
Prio
ritiz
e ke
y pe
rfor
man
ce su
bjec
t are
as fr
om th
e ex
ecut
ives
poi
nt o
f vie
w, a
nd b
egin
impl
emen
ting
the
top
prio
rity
area
s37
37 W
hile
our
Wor
king
Gro
up h
as a
lread
y su
gges
ted
thes
e, se
ctor
lead
ersh
ip w
ill n
eed
to b
e ac
tivel
y in
volv
ed in
thei
r con
firm
atio
n an
d re
finem
ent
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
EIS
Des
ign
and
Prog
ram
min
g
The
succ
ess o
f thi
s sta
ge is
pre
dica
ted
on h
igh
qual
ity d
ata
arch
itect
ure
pre-
wor
k ha
ving
bee
n co
mpl
eted
. Act
ive
sect
or le
ader
ship
invo
lvem
ent i
n pr
otot
ypin
g of
scre
ens i
s a k
ey su
cces
s fac
tor.
The
maj
or a
ctiv
ities
requ
ired
are
to:
D
efin
e bu
sine
ss re
quire
men
ts, i
nclu
ding
Key
Per
form
ance
Indi
cato
rs (K
PIs)
, bus
ines
s dim
ensi
ons,
view
s, ac
cess
righ
ts...
etc
Iden
tify
data
sour
ces,
incl
udin
g ta
bles
, and
fiel
ds
D
esig
n EI
S D
ata
mod
el
D
esig
n pr
oced
ures
to e
xtra
ct d
ata
from
orig
inal
sour
ce a
nd tr
ansf
orm
it to
the
EIS
data
sche
ma
Pr
iorit
ize
busi
ness
requ
irem
ents
Dev
elop
a p
roto
type
to te
st th
e co
ncep
t with
the
busi
ness
use
rs
D
evel
op b
usin
ess d
ata
laye
r usi
ng th
e B
usin
ess I
ntel
ligen
ce (B
I) to
ol
D
evel
op E
IS sc
reen
s and
ana
lytic
al re
ports
Impl
emen
t sec
urity
con
trols
and
acc
ess r
ight
s
Test
the
solu
tion
8.4.
8.
RIS
K F
AC
TO
RS
AN
D T
HE
IR M
ITIG
AT
ION
A n
umbe
r of
ris
k fa
ctor
s ex
ist f
or th
is I
TMP
com
pone
nt. T
hey
are
liste
d in
Tab
le 1
1 be
low
alo
ng w
ith s
ugge
sted
miti
gatio
n ap
proa
ches
. Org
aniz
atio
nal
resi
stan
ce to
an
EIS
initi
ativ
e is
qui
te c
omm
on, b
ut th
e su
cces
s of
the
impl
emen
tatio
n de
pend
s cr
itica
lly o
n ov
erco
min
g th
is a
nd o
n en
surin
g th
e or
gani
zatio
n is
read
y in
term
s of
per
form
ance
man
agem
ent t
o re
ceiv
e th
e EI
S. A
s us
ers
gain
com
fort
and
expe
rienc
e w
ith a
n EI
S, o
rgan
izat
iona
l res
ista
nce
ofte
n qu
ickl
y re
duce
s.
RR iiss kk
MM
ii tt iigg aa
tt ii oonn
Lack
of
orga
nizati
onal
read
iness
fro
m a
mana
geme
nt,
busin
ess u
nder
stand
ing, o
r data
back
end p
ersp
ectiv
es
Ass
essm
ent o
f the o
rgan
izatio
n’s re
adine
ss pr
ior to
the
comm
ence
ment
of the
proje
ct.
Outl
ining
any g
aps,
issue
s and
deve
loping
a ch
ange
ma
nage
ment
plan t
o add
ress
the i
ssue
s Re
sistan
ce t
o inf
orma
tion
shar
ing a
mong
the
thr
ee
entiti
es (M
WI, W
AJ, J
VA)
“Ch
ange
Man
agem
ent”
to br
idge t
he ga
p betw
een t
he th
ree
entiti
es.
Deta
iled d
efinit
ion of
the i
nform
ation
requ
ired (
not a
ll inf
orma
tion w
ill ha
ve to
be sh
ared
)
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
RR iiss kk
MM
ii tt iigg aa
tt ii oonn
Resis
tance
to
settin
g ac
tiona
ble,
and
meas
urab
le pe
rform
ance
indic
ators
“Ch
ange
man
agem
ent”
to ed
ucate
exec
utive
decis
ion
make
rs on
the i
mpor
tance
of pe
rform
ance
indic
ators.
This
EI
S ca
n only
mak
e the
infor
matio
n ava
ilable
for d
ecisi
on
make
rs. T
he sy
stem
can t
ake a
ction
on th
e info
rmati
on –
only
perfo
rman
ce m
anag
emen
t can
enco
urag
e tha
t Pr
oduc
ing a
sys
tem w
ith d
ata in
tegrity
issu
es. T
his w
ill re
sult
in us
ers’
lack
of co
nfide
nce
in the
sys
tem, a
nd
grad
ual lo
ss of
supp
ort, o
r inter
est in
using
it.
Pro
viding
clea
r data
integ
rity an
d qua
lity st
anda
rds t
o sou
rce
depa
rtmen
ts or
IT di
vision
s P
erfor
ming
a se
cond
leve
l of d
ata in
tegrity
chec
ks du
ring
the E
TL pr
oces
s
Tabl
e 11
- EI
S Im
plem
enta
tion
Ris
ks
8.4.
9.
KE
Y S
UC
CE
SS F
AC
TO
RS
Ove
rall
key
succ
ess f
acto
rs in
clud
e:
Fi
ndin
g an
app
ropr
iate
inte
rnal
“ch
ampi
on”
with
in se
ctor
lead
ersh
ip to
bui
ld a
war
enes
s and
supp
ort f
or th
e va
lue
of th
e EI
S in
itiat
ive
En
surin
g ac
tive
and
cont
inuo
us in
volv
emen
t of a
ll en
d us
ers f
rom
sect
or le
ader
ship
to m
iddl
e m
anag
emen
t (a
role
for t
he c
ham
pion
to p
lay)
Del
iver
ing
a si
mpl
e pr
otot
ype
quic
kly
Cha
nge
man
agem
ent,
com
mun
icat
ion
and
train
ing
to o
verc
ome
resi
stan
ce
8.4.
10.
TIM
ING
OF
IMPL
EM
EN
TA
TIO
N
The
high
vis
ibili
ty a
nd s
trong
(if
diff
icul
t to
quan
tify
in a
dvan
ce)
busi
ness
cas
e fo
r an
EIS
impl
emen
tatio
n pr
ovid
es a
stro
ng c
ase
for e
arly
impl
emen
tatio
n w
ithin
the
con
stra
ints
of
avai
labl
e IT
res
ourc
es.
Dur
ing
and
imm
edia
tely
afte
r th
e or
gani
zatio
nal
rest
ruct
urin
g of
the
Hea
dqua
rters
Org
aniz
atio
ns I
T D
irect
orat
es to
form
the
HQ
IT, I
T re
sour
ces
will
be
seve
rely
con
stra
ined
and
bus
y w
ith tr
aini
ng a
nd c
apac
ity b
uild
ing.
A s
ugge
sted
evo
lutio
nary
app
roac
h to
im
plem
entin
g th
e EI
S w
as d
escr
ibed
abo
ve in
our
dis
cuss
ion
on so
lutio
n op
tions
.
If s
trong
inte
rnal
reso
urce
s ou
tsid
e th
e H
QIT
can
be
dedi
cate
d to
suc
h an
app
roac
h (p
erha
ps e
ven
seco
nded
to th
e H
QIT
), an
d si
mpl
y pr
ogra
m m
anag
ed b
y th
e H
QIT
, it m
ay w
ell b
e po
ssib
le to
ach
ieve
a q
uick
if p
artia
l win
. The
re m
ay b
e so
me
adva
ntag
e in
ear
ly p
rocu
rem
ent o
f th
e B
I to
ol to
sup
port
adva
nce
effo
rts o
n EI
S de
velo
pmen
t usi
ng n
on-H
QIT
sta
ff. T
his
coul
d he
lp s
olve
sho
rt-te
rm is
sues
with
, for
exa
mpl
e, W
IS/W
MIS
/Pro
ject
Dat
abas
e in
tegr
atio
n. W
e ha
ve r
efle
cted
this
pos
sibi
lity
in d
evel
opin
g ou
r su
gges
ted
phas
ing
in S
ectio
n 10
. How
ever
com
plet
e im
plem
enta
tion
of th
e EI
S is
unl
ikel
y to
be
achi
eved
in
side
of 3
yea
rs fr
om c
omm
ence
men
t of i
mpl
emen
tatio
n of
the
ITM
P.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
8.4.
11.
POT
EN
TIA
L U
SAID
INPU
TS
USA
ID s
uppo
rt fo
r thi
s pr
ojec
t will
be
prov
ided
thro
ugh
the
tech
nica
l ass
ista
nce
to th
e H
QIT
, and
like
all
othe
r ITM
P co
mpo
nent
s, th
e EI
S in
itiat
ive
wou
ld
be c
ontra
cted
thro
ugh
and
prog
ram
man
aged
by
the
HQ
IT. C
ontra
ctin
g ap
proa
ches
to s
uppo
rt an
ear
ly s
tart
on th
e ev
olut
iona
ry a
ppro
ach
may
hav
e to
be
furth
er e
xplo
red.
The
diff
icul
ty o
f id
entif
ying
in a
dvan
ce q
uant
ifiab
le b
enef
its f
or th
e EI
S m
ay m
ake
GoJ
co-
finan
cing
of
this
initi
ativ
e m
ore
diff
icul
t. H
owev
er th
e ac
tive
invo
lvem
ent o
f ou
tsid
e m
inis
tries
incl
udin
g M
oIC
T an
d th
e G
over
nmen
t Per
form
ance
Mon
itorin
g U
nit i
n th
e Pr
ime
Min
istry
may
pro
vide
an
aven
ue f
or
fund
ing
so th
at th
e w
ater
sect
or c
an p
rovi
de a
bes
t pra
ctic
e ex
ampl
e of
sect
or m
anag
emen
t with
in Jo
rdan
.
8.5.
C
IS/B
illin
g Sy
stem
8.5.
1.
EX
EC
UT
IVE
SU
MM
AR
Y O
F W
OR
KG
RO
UP
RE
CO
MM
EN
DA
TIO
NS
This
Gro
up s
tarte
d by
fol
low
ing
the
stan
dard
pro
cess
use
d by
all
the
Wor
king
Gro
ups
invo
lved
in s
yste
ms
initi
ativ
es. T
hey
quic
kly
deve
lope
d a
deta
iled
anal
ysis
of
curr
ent
busi
ness
pro
cess
es a
nd a
det
aile
d co
mpa
rison
of
the
lega
cy b
illin
g sy
stem
s in
use
– p
rimar
ily C
OB
OSS
II
and
X7.
CO
BO
SS I
I w
as
orig
inal
ly d
evel
oped
in-h
ouse
on
a C
obol
pla
tform
, and
sub
sequ
ently
upg
rade
d to
pro
duce
ver
sion
II. X
7 w
as in
trodu
ced
by L
EMA
und
er th
eir m
anag
emen
t co
ntra
ct to
ope
rate
the
Am
man
wat
er a
nd w
aste
wat
er s
yste
m. X
7 w
as a
lso
impl
emen
ted
at A
WC
and
a c
ontra
ct w
orth
aro
und
$450
K w
as s
igne
d in
Mar
ch
2005
with
the
Fren
ch v
endo
r to
rollo
ut th
e sy
stem
acr
oss t
he re
st o
f WA
J - b
ut th
e ro
llout
did
not
go
ahea
d at
that
tim
e.
The
Gro
up th
en c
ontin
ued
thei
r an
alys
is p
roce
ss to
dev
elop
aga
in a
ver
y de
taile
d se
t of
futu
re b
usin
ess
requ
irem
ents
that
incl
uded
man
y re
cogn
ized
bes
t pr
actic
es a
nd s
ever
al “
Jord
aniz
atio
n” fe
atur
es to
mee
t the
ver
y un
ique
requ
irem
ents
of t
he Jo
rdan
wat
er s
ecto
r – n
otab
ly th
e po
tent
ial t
o re
duce
adm
inis
trativ
e lo
sses
in N
RW
. In
addi
tion
the
Gro
up b
egan
dev
elop
ing
a bu
sine
ss c
ase
for a
new
CIS
/Bill
ing
syst
em.
The
Gro
up’s
wor
k qu
ickl
y co
nfirm
ed th
at X
7 ha
d re
ceiv
ed m
ixed
revi
ews
acro
ss th
e se
ctor
and
iden
tifie
d si
gnifi
cant
def
icie
ncie
s in
its
func
tiona
lity
agai
nst
the
deta
iled
set
of f
utur
e bu
sine
ss r
equi
rem
ents
the
y ha
d al
read
y de
velo
ped.
Mea
nwhi
le A
WC
wer
e ac
tivel
y co
nsid
erin
g a
priv
ate
join
t ve
ntur
e w
ith a
n ou
tsid
e sy
stem
s dev
elop
er to
bui
ld a
nd m
arke
t the
ir ow
n C
IS/B
illin
g so
lutio
n as
an
alte
rnat
ive
to c
ontin
uing
the
use
of X
7.
At
this
tim
e, s
ecto
r le
ader
ship
mad
e a
deci
sion
, w
ith U
SAID
’s s
uppo
rt fo
llow
ing
conc
erns
exp
ress
ed b
y th
e O
racl
e e-
Bus
ines
s Su
ite i
mpl
emen
tatio
n co
nsul
tant
tha
t de
lay
in i
mpl
emen
ting
X7
was
im
pact
ing
thei
r ow
n im
plem
enta
tion
sche
dule
, to
prec
ede
with
the
X7
rollo
ut a
ccor
ding
to
the
prev
ious
ly
sign
ed c
ontra
ct. T
he W
orki
ng G
roup
’s f
indi
ngs
wer
e no
t con
side
red
in m
akin
g th
is X
7 ro
llout
dec
isio
n an
d th
e IT
MP
Stee
ring
Com
mitt
ee w
as u
nabl
e to
ne
gotia
te su
ffic
ient
tim
e to
allo
w c
ompl
etio
n of
the
Wor
king
Gro
up p
roce
ss b
efor
e im
plem
enta
tion
of th
e ro
llout
.
This
had
an
imm
edia
te im
pact
on
the
Gro
up’s
cap
acity
to c
ontri
bute
to th
e an
alys
is p
roce
ss a
s m
any
of th
e sa
me
indi
vidu
als
wer
e ch
arge
d w
ith d
irect
ing
and
man
agin
g th
e X
7 ro
llout
. Due
dili
genc
e on
pot
entia
l bet
ter a
ltern
ativ
es to
X7
(bot
h be
st o
f bre
ed a
nd A
WC
’s p
ropo
sed
assi
sted
in-h
ouse
dev
elop
men
t eff
ort)
was
som
ewha
t cur
taile
d. H
owev
er, t
he G
roup
reco
gniz
ed a
nd q
uick
ly p
roce
eded
to ta
ke a
dvan
tage
of t
he o
ppor
tuni
ty to
feed
its
func
tiona
lity
conc
erns
to th
e X
7 ve
ndor
(Ade
lior)
who
resp
onde
d by
indi
catin
g th
at m
any
of th
ese
coul
d be
acc
omm
odat
ed d
urin
g ro
llout
subj
ect t
o so
me
cust
omiz
atio
n. W
hile
this
shou
ld
in n
o w
ay b
e ta
ken
as a
n en
dors
emen
t by
the
Gro
up o
f the
sui
tabi
lity
of X
7 to
fully
mee
t the
sec
tor’
s C
IS/B
illin
g ne
eds,
it do
es re
cogn
ize
the
prac
tical
ity o
f th
e si
tuat
ion
and
tries
to m
ake
the
best
of i
t.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
The
sect
or n
ow n
eeds
to se
e w
heth
er A
delio
r can
cos
t-eff
ectiv
ely
impr
ove
the
func
tiona
lity
of it
s X7
syst
em, a
nd w
heth
er it
can
ade
quat
ely
mee
t loc
al su
ppor
t ex
pect
atio
ns. R
egar
dles
s of
this
dec
isio
n, th
e G
roup
was
abl
e to
con
tinue
its
revi
ew o
f al
tern
ativ
e sy
stem
s at
leas
t to
the
poin
t of
cons
iste
ncy
with
oth
er
Gro
ups,
alth
ough
no
exam
ple
vend
or d
emon
stra
tions
wer
e po
ssib
le. S
houl
d X
7 fa
il to
ade
quat
ely
mee
t sec
tor e
xpec
tatio
ns, w
e re
com
men
d a
form
al s
yste
ms
sele
ctio
n be
twee
n re
gion
ally
dev
elop
ed “
best
of b
reed
” sy
stem
s and
AW
C’s
pro
pose
d as
sist
ed in
-hou
se d
evel
oped
pro
duct
be
mad
e –
givi
ng h
ighe
r wei
ghtin
g to
the
“Jor
dani
zatio
n” is
sues
iden
tifie
d in
the
Gro
up’s
wor
k.
Reg
ardl
ess
of a
ny u
ncer
tain
ty in
the
abili
ty o
f X7
to fu
lly m
eet s
ecto
r nee
ds, a
n op
portu
nity
als
o ex
ists
(tho
ugh
it is
not
yet
cle
ar th
at it
will
be
real
ized
) to
com
plet
e th
e de
velo
pmen
t of
the
bus
ines
s ca
se a
nd u
se t
his
as a
tar
get
perf
orm
ance
bas
elin
e fo
r th
e X
7 im
plem
enta
tion
– to
man
age
both
the
sys
tem
co
nfig
urat
ion
and
asso
ciat
ed p
roce
ss a
nd in
stitu
tiona
l cha
nges
requ
ired.
The
Con
sulta
nt h
as m
ade
som
e es
timat
es o
f the
mag
nitu
de o
f thi
s bus
ines
s cas
e ba
sed
on th
e G
roup
’s in
itial
wor
k. I
t wou
ld b
e irr
atio
nal t
o pr
ocee
d w
ith th
e X
7 ro
llout
with
out t
arge
ting
and
real
izin
g th
ese
bene
fits
as th
ey w
ould
con
tribu
te
sign
ifica
nt c
ash
savi
ngs
to t
he s
ecto
r. O
nce
embe
dded
, the
se p
roce
ss a
nd i
nstit
utio
nal
chan
ges
coul
d al
so e
asily
be
leve
rage
d by
any
fut
ure
CIS
/Bill
ing
syst
em.
In s
hort,
the
Gro
up h
as g
one
som
e w
ay, a
nd c
ould
eas
ily c
ompl
ete
the
proc
ess,
to a
chie
ving
a “
quic
k w
in”
for t
he s
ecto
r by
appl
ying
thei
r fin
ding
s to
the
X7
rollo
ut d
ecis
ion
that
was
giv
en. T
he G
roup
has
als
o de
velo
ped
an e
xcel
lent
set
of
syst
em s
peci
ficat
ions
that
wou
ld f
orm
a s
olid
fou
ndat
ion
for
any
futu
re
syst
ems
sele
ctio
n or
dev
elop
men
t eff
ort –
that
wou
ld a
nyw
ay b
e a
requ
irem
ent a
t im
plem
enta
tion.
Adv
anta
ge o
f th
is h
as a
lread
y be
en ta
ken
by A
WC
in
refin
ing
its R
FP fo
r its
pro
pose
d cu
stom
dev
elop
men
t eff
ort.
In th
e m
eant
ime,
ens
urin
g th
at th
ese
func
tiona
lity
requ
irem
ents
are
app
lied
in fu
ll to
the
X7,
and
th
at a
targ
eted
bus
ines
s ca
se is
bui
lt re
aliz
ed d
urin
g im
plem
enta
tion,
will
gre
atly
incr
ease
the
retu
rn o
n th
e X
7 ro
llout
and
on
any
futu
re C
IS/B
illin
g sy
stem
re
plac
emen
t.
8.5.
2.
AS-
IS S
ITU
AT
ION
Bus
ines
s Pro
cess
es a
nd S
yste
ms S
uppo
rt
A d
etai
led
desc
riptio
n of
cur
rent
met
er re
adin
g, b
illin
g, a
nd c
olle
ctio
ns p
roce
sses
is in
clud
ed in
Vol
ume
II in
the
CIS
/Bill
ing
sect
ion.
Tw
o ve
rsio
ns o
f an
in-
hous
e de
velo
ped
Cob
ol C
IS/B
illin
g sy
stem
are
cur
rent
ly in
use
acr
oss
the
sect
or, a
long
with
the
X7
billi
ng s
yste
m in
trodu
ced
unde
r the
LEM
A m
anag
emen
t co
ntra
ct.
The
proc
ess
desc
riptio
n in
clud
es a
det
aile
d co
mpa
rison
of
wha
t ac
tiviti
es a
re s
uppo
rted
by t
hese
diff
eren
t sy
stem
s. Th
e lis
t of
act
iviti
es w
as
deve
lope
d by
the
Gro
up, u
sing
a c
ompr
ehen
sive
list
of a
ccep
ted
best
pra
ctic
es in
CIS
/Bill
ing,
with
app
ropr
iate
“Jo
rdan
izat
ion”
.
Not
e th
at J
VA
use
s th
e W
ater
Man
agem
ent I
nfor
mat
ion
Syst
em (
WM
IS)
for
its b
illin
g (a
long
with
man
y ot
her
func
tions
that
incl
ude
plan
ning
as
wel
l as
trans
actio
n ca
ptur
e an
d m
anag
emen
t). J
VA
’s I
T D
irect
or s
aw n
o cu
rren
t ne
ed t
o up
grad
e th
is s
yste
m.
How
ever
, fu
ture
bill
ing
syst
em d
evel
opm
ent
or
impl
emen
tatio
n w
ithin
WA
J ca
n re
adily
be
adap
ted
to J
VA
. The
maj
or is
sue
at J
VA
rega
rdin
g w
ater
reve
nues
is m
ore
linke
d to
the
inst
itutio
nal i
ssue
s th
at
prod
uce
low
cos
t rec
over
y be
caus
e of
the
soci
al ta
riffs
, and
the
inab
ility
to d
isco
nnec
t non
-pay
ing
cust
omer
s, th
at a
re d
riven
by
JVA
’s b
road
er d
evel
opm
ent
man
date
. Th
ese
issu
es a
re o
utsi
de t
he s
cope
of
this
rep
ort
but
are
bein
g ad
dres
sed
in p
art
thro
ugh
farm
er’s
coo
pera
tives
tha
t ca
n he
lp s
elf-
polic
e no
n-pa
ymen
ts.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
CO
BO
SS B
illin
g Sy
stem
For
Ope
ratin
g U
tiliti
es t
hat
use
CO
BO
SS (
eith
er v
ersi
on),
the
met
er r
eadi
ng p
roce
ss i
s in
itiat
ed,
gene
rally
on
a qu
arte
rly b
asis
, by
the
Sub
scrib
ers
Dep
artm
ent.
Muc
h of
the
met
er re
adin
g da
ta c
olle
ctio
n is
stil
l don
e m
anua
lly u
sing
pre
-prin
ted
shee
ts, b
ut in
som
e ar
eas
GSM
met
er re
adin
g an
d ha
nd-h
eld
met
er re
ader
s are
bei
ng tr
iale
d. If
a m
eter
can
not b
e re
ad in
the
curr
ent c
ycle
, it i
s est
imat
ed a
nd si
mpl
y re
ad in
the
next
cyc
le.
Bill
prin
ting
is a
gain
ini
tiate
d by
req
uest
fro
m t
he S
ubsc
riber
s D
epar
tmen
t, an
d w
here
CO
BO
SS 2
is
in u
se,
incl
udes
a c
heck
of
the
bill
valu
e fo
r re
ason
able
ness
. Out
liers
are
che
cked
aga
inst
the
met
er re
adin
g (f
or d
ata
entry
err
ors)
, or t
he m
eter
is re
-rea
d by
man
ual i
ssua
nce
of a
wor
k or
der i
f the
read
ing
itsel
f app
ears
to b
e ou
t of l
imits
. Bill
s are
dis
tribu
ted
man
ually
be
colle
ctor
s with
bill
issu
ance
reco
rds a
lso
bein
g en
tere
d in
to th
e sy
stem
.
Cus
tom
ers
have
fou
r pa
ymen
t cha
nnel
s av
aila
ble
to th
em –
ban
ks, f
ield
col
lect
ion,
pos
t off
ices
and
res
iden
tial c
olle
ctio
n. R
ecei
pts
data
(in
the
bank
s ca
se
sum
mar
ized
and
upl
oade
d di
rect
ly b
y em
ail o
r flo
ppy
disk
) are
ent
ered
into
the
syst
em, c
usto
mer
bal
ance
s are
adj
uste
d an
d re
venu
e re
ports
pre
pare
d.
Whe
n co
mpa
red
to th
e lis
t of “
Jord
aniz
ed”
best
pra
ctic
e fu
nctio
nalit
y, C
OB
OSS
2 fu
lly c
over
s on
ly 9
of t
he 2
8 ke
y fu
nctio
nalit
ies
iden
tifie
d. A
noth
er fo
ur
(new
cus
tom
er a
pplic
atio
ns, p
aym
ent c
ontro
lling
, met
er d
ata
chan
ges,
and
cust
omer
pay
men
t his
tory
) are
par
tially
cov
ered
. Maj
or g
aps i
nclu
de:
H
and
held
supp
ort
Fl
exib
ility
in th
e m
eter
read
ing
cycl
e
Dec
isio
n m
atrix
supp
ort (
data
val
idat
ion
and
dete
rmin
atio
n of
cor
rect
ive
actio
n ne
eded
)
Abi
lity
to h
andl
e m
eter
cha
nge
outs
Elec
troni
c re
ceip
ts
B
ad c
heck
pro
cess
ing
C
usto
mer
reco
rds (
non-
finan
cial
dat
a)
O
n-lin
e in
terf
acin
g to
GIS
and
Ora
cle
finan
cial
s
Supp
ort f
or n
on re
venu
e w
ater
con
trol
Se
wer
age
billi
ng (t
his i
s cur
rent
ly h
andl
ed in
a se
para
te S
DS
syst
em)
M
anag
emen
t of c
usto
mer
car
e an
d ob
ject
ions
Trac
king
of n
ew c
onne
ctio
ns c
osts
Wat
er ta
nker
bill
ing
A
utom
atic
issu
e of
wor
k or
ders
Adj
ustm
ent o
f wat
er v
olum
e bi
lled
whe
n cu
stom
er b
ills a
re a
djus
ted
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
Add
ition
al s
treng
ths
note
d fo
r CO
BO
SS in
clud
e no
lice
nse
cost
s, gu
aran
teed
inte
rnal
sup
port,
and
abs
ence
of b
ugs
due
to lo
ng e
xper
ienc
e w
ith th
e sy
stem
, lo
w s
tora
ge n
eeds
, use
r-fr
iend
ly a
nd h
ighl
y pr
oduc
tive
inte
rfac
es a
nd o
fflin
e G
IS in
tegr
atio
n. E
xcha
nge
of d
ata
with
GIS
, fin
anci
als,
SDS,
and
the
DC
MM
S ap
plic
atio
n ar
e in
fact
all
poss
ible
but
onl
y of
fline
. Int
erna
l con
trols
app
ear t
o be
a si
gnifi
cant
wea
knes
s bot
h in
pro
cess
and
syst
em te
rms.
X7
CIS
/Bill
ing
Syst
em
X7
is c
urre
ntly
in u
se a
t LEM
A a
nd A
WC
, and
at W
AJ
Hea
dqua
rters
for p
rivat
e w
ell b
illin
g. X
7 fu
lly c
over
s 14
of t
he 2
8 ke
y fu
nctio
nalit
ies
iden
tifie
d as
“J
orda
nize
d” b
est p
ract
ices
, and
par
tially
mee
ts a
noth
er 4
requ
irem
ents
. It i
nclu
des s
ome
supp
ort f
or h
and
held
met
er re
ader
s, su
ppor
ts e
lect
roni
c re
ceip
ts, a
nd
hand
les
met
er d
ata,
cus
tom
er r
ecor
ds a
nd p
aym
ent
cont
rols
muc
h be
tter.
Bad
che
cks
are
also
han
dled
, bu
t th
e pr
oces
s is
not
eff
ectiv
e. W
hile
sep
arat
e cu
stom
er c
are
syst
ems a
re in
use
, X7
gene
rally
pro
vide
s goo
d re
al-ti
me
supp
ort t
o th
e fr
ont o
ffic
e to
han
dle
cust
omer
issu
es. I
ts u
se o
f del
iver
y po
int c
odes
as
a ge
ogra
phic
refe
renc
e ke
y to
man
age
all a
spec
ts o
f the
cus
tom
er re
latio
nshi
p is
ver
y fle
xibl
e an
d va
luab
le. T
he s
yste
m a
lso
has
muc
h be
tter a
cces
s co
ntro
l. H
owev
er, d
ata
entry
is m
uch
slow
er th
an in
CO
BO
SS b
ecau
se o
f com
plex
scre
en d
esig
n.
Maj
or g
aps i
n X
7 fu
nctio
nalit
y ag
ain
incl
ude:
Dec
isio
n m
atrix
supp
ort
O
n-lin
e in
terf
acin
g to
GIS
and
Ora
cle
finan
cial
s
Supp
ort f
or n
on re
venu
e w
ater
con
trol
Se
wer
age
billi
ng
M
anag
emen
t of c
usto
mer
car
e an
d ob
ject
ions
Trac
king
of n
ew c
onne
ctio
ns c
osts
Wat
er ta
nker
bill
ing
A
utom
atic
issu
e of
wor
k or
ders
Add
ition
al w
eakn
esse
s no
ted
for X
7 in
clud
e lo
w p
erfo
rman
ce a
nd s
low
dat
a en
try, h
igh
stor
age
need
s, no
acc
ess
for d
evel
oper
s to
mod
ify th
e so
urce
cod
e38,
licen
se c
osts
and
ver
y w
eak
loca
l sup
port.
Ove
rall
AW
C, w
ho p
rovi
ded
the
Gro
up w
ith a
com
preh
ensi
ve o
verv
iew
of t
heir
X7
expe
rienc
e, e
mph
asiz
ing
both
its
stre
ngth
s an
d w
eakn
esse
s an
d le
sson
s le
arne
d, fe
lt th
at X
7 pr
ovid
ed v
alua
ble
insi
ght i
nto
outs
ide
best
pra
ctic
es a
s a
“bes
t of b
reed
” sy
stem
. How
ever
, wea
knes
ses
in u
ser f
riend
lines
s an
d sy
stem
38 T
his i
s not
unt
ypic
al o
f mar
ket b
ased
syst
ems –
mod
ifica
tion
of so
urce
cod
e w
ithou
t ver
y tig
ht in
tern
al IT
con
trols
is n
ot a
reco
mm
ende
d pr
actic
e.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
supp
ort
detra
cted
sig
nific
antly
fro
m t
his.
Add
ition
al “
flex
field
s” d
o al
low
som
e di
rect
cus
tom
izat
ion
by I
T st
aff
but
cont
rols
ove
r da
ta i
nteg
rity
wer
e id
entif
ied
as a
con
cern
her
e to
o, a
s was
the
abili
ty to
dire
ctly
edi
t dat
abas
e re
cord
s.
LEM
A is
usi
ng o
fflin
e G
IS a
pplic
atio
ns to
opt
imiz
e its
met
er re
adin
g ro
utes
– a
gain
a re
cogn
ized
bes
t pra
ctic
e.
8.5.
3.
MA
JOR
IMPR
OV
EM
EN
T A
RE
AS
Maj
or im
prov
emen
t are
as id
entif
ied
by th
e G
roup
acr
oss b
oth
proc
esse
s and
syst
ems i
nclu
de:
A
bsen
ce o
f on-
line
acce
ss in
all
regi
onal
off
ices
Hig
h %
of e
stim
ated
met
er re
adin
gs
H
igh
% o
f uns
eale
d m
eter
s
Gro
wth
in a
rrea
rs
N
o ag
ing
repo
rts to
hel
p co
ntro
l arr
ears
Lim
ited
inte
rfac
ing
to o
ther
syst
ems (
finan
cial
s, G
IS, A
M-M
M, B
MFO
, SC
AD
A
Su
ppor
t for
ATM
, VIS
A a
nd o
ther
pay
men
t met
hods
Add
ition
al w
eakn
esse
s ap
pear
to
exis
t in
int
erna
l co
ntro
ls, a
nd i
n re
venu
e as
sura
nce
and
NR
W c
ontro
l. Id
eally
a C
IS/B
illin
g sy
stem
can
use
zon
al s
ub-
met
erin
g to
hel
p cr
oss-
chec
k th
at th
e sy
stem
is in
con
trol a
cros
s a
zone
. Whi
le d
iffer
ence
s in
tech
nica
l los
ses
mak
e it
diff
icul
t to
com
pare
zon
es, t
rend
s ov
er
time
may
stil
l hel
p id
entif
y ch
ange
s in
adm
inis
trativ
e lo
sses
. The
uni
que
oper
atio
nal i
ssue
s w
ithin
Jor
dan
(inte
rmitt
ent w
ater
dis
tribu
tion
lead
ing
to p
ipes
fil
ling
and
empt
ying
, and
met
ers
runn
ing
pote
ntia
lly f
ast
or s
low
). In
tegr
atio
n w
ith B
MFO
, SC
AD
A, A
M-M
M a
nd G
IS s
yste
ms
can
all h
elp
here
and
a
com
preh
ensi
ve sy
stem
s pla
n co
uld
be d
evel
oped
show
ing
how
ava
ilabl
e da
ta c
ould
bes
t be
anal
yzed
and
inte
grat
ed to
man
age
this
ver
y im
porta
nt is
sue.
Whi
le d
etai
led
activ
ity (i
.e. p
roce
ss c
onte
nt) c
ompa
rison
s aga
inst
bes
t pra
ctic
e he
lp id
entif
y im
prov
emen
t opp
ortu
nitie
s, m
easu
rem
ent o
f pro
cess
per
form
ance
an
d id
entif
icat
ion
of o
ppor
tuni
ties
to i
mpr
ove
that
per
form
ance
ofte
n pr
ovid
es l
arge
r op
portu
nitie
s. M
any
of t
hese
are
qui
te s
impl
e, b
ut t
hey
are
easi
ly
over
look
ed if
the
emph
asis
is a
lway
s on
proc
ess m
appi
ng, n
ot o
vera
ll pr
oces
s and
syst
em p
erfo
rman
ce.
Ther
e is
a m
ajor
opp
ortu
nity
acr
oss
the
sect
or to
sig
nific
antly
red
uce
the
met
er r
ead
to c
ash
colle
ctio
n cy
cle
time.
Thi
s ha
s al
read
y be
en r
ecog
nize
d, a
nd
impl
emen
ted
with
X7’
s su
ppor
t for
flex
ible
bill
ing
cycl
es, a
t AW
C w
here
mon
thly
inst
ead
of q
uarte
rly b
illin
g ju
st o
f the
top
50 c
usto
mer
s by
con
sum
ptio
n ga
ve a
one
-tim
e ca
sh in
flow
of
1M J
D. W
hile
Aqa
ba’s
cus
tom
er b
ase
is u
niqu
e in
the
Kin
gdom
, thi
s id
ea is
one
that
mus
t be
care
fully
con
side
red.
It i
s di
scus
sed
furth
er b
elow
, alo
ng w
ith o
ther
opp
ortu
nitie
s, un
der t
he B
enef
its Id
entif
icat
ion
sect
ion.
8.5.
4.
FUT
UR
E B
USI
NE
SS R
EQ
UIR
EM
EN
TS
The
Gro
up’s
fut
ure
busi
ness
req
uire
men
ts w
ere
deve
lope
d w
ith r
efer
ence
to f
utur
e ne
eds,
best
pra
ctic
es a
nd J
orda
n-sp
ecifi
c ne
eds,
and
are
deta
iled,
alo
ng
with
add
ition
al r
equi
rem
ents
sug
gest
ed b
y th
e C
onsu
ltant
, in
Vol
ume
II. A
s de
scrib
ed a
bove
they
wer
e us
ed to
eva
luat
e th
e as
-is p
erfo
rman
ce o
f th
e tw
o
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
billi
ng s
yste
ms
in u
se a
cros
s th
e se
ctor
. The
y pr
ovid
e a
valu
able
refe
renc
e po
int f
or a
ny fu
ture
sys
tem
s se
lect
ion.
AW
C h
as a
lso
prop
osed
ass
iste
d in
-hou
se
deve
lopm
ent o
f its
ow
n C
IS/B
illin
g sy
stem
as
a re
plac
emen
t for
X7.
A p
rivat
e se
ctor
dev
elop
er h
as b
een
iden
tifie
d as
a p
artn
er a
nd a
n R
FP a
nd d
etai
led
func
tiona
l sy
stem
s sp
ecifi
catio
n pr
epar
ed. W
hile
thi
s ha
s no
t be
en m
ade
avai
labl
e to
the
Gro
up f
or c
omm
erci
al r
easo
ns, i
nfor
mal
exc
hang
e of
bus
ines
s re
quire
men
ts b
etw
een
the
Gro
up a
nd A
WC
resu
lted
in im
prov
emen
ts to
bot
h se
ts o
f req
uire
men
ts.
In th
e M
arch
-Apr
il tim
efra
me,
a d
ecis
ion
was
mad
e by
sect
or le
ader
ship
to c
ompl
ete
the
roll
out o
f the
X7
billi
ng sy
stem
acr
oss t
he K
ingd
om p
er th
e co
ntra
ct
sign
ed in
Mar
ch 2
005.
Man
y of
the
Gro
up m
embe
rs w
ere
aske
d to
be
invo
lved
in th
e pr
ogra
m a
nd te
chni
cal m
anag
emen
t of t
his
rollo
ut –
wor
king
clo
sely
w
ith th
e ve
ndor
Ade
lior.
The
Gro
up th
eref
ore
took
the
oppo
rtuni
ty to
revi
sit t
heir
asse
ssm
ent o
f X7
func
tiona
lity
agai
nst t
heir
best
pra
ctic
e lis
t and
iden
tify
pote
ntia
l sys
tem
fixe
s, co
nfig
urat
ion
chan
ges,
cust
omiz
atio
ns, a
nd in
terf
acin
g re
quire
men
ts th
at c
ould
be
cons
ider
ed fo
r inc
orpo
ratio
n in
to th
e X
7 ro
llout
. The
re
vise
d X
7 as
sess
men
t is i
nclu
ded
in V
olum
e II
.
Whi
le s
ome
key
issu
es a
re s
till b
eing
neg
otia
ted
(incl
udin
g G
IS a
nd f
utur
e A
M-M
M in
terf
acin
g, c
aptu
re a
nd p
roce
ssin
g of
all
reve
nue
sour
ces
incl
udin
g se
wer
age,
and
pot
entia
l us
e in
NR
W c
ontro
l, an
d di
rect
CIS
and
cus
tom
er c
are
supp
ort)
ther
e ha
s be
en a
sig
nific
ant
impr
ovem
ent
in l
ever
agin
g th
e fu
nctio
nalit
y al
read
y av
aila
ble
with
in X
7. A
dditi
onal
feat
ures
may
requ
ire s
ome
reco
nfig
urat
ion
and/
or c
usto
miz
atio
n an
d es
timat
es fo
r the
cos
t of t
hese
are
be
ing
disc
usse
d an
d ne
gotia
ted.
Ove
rall
the
timel
y in
put o
f the
Gro
up’s
wor
k in
to th
e X
7 de
cisi
on h
as re
sulte
d in
sig
nific
ant i
mpr
ovem
ents
to th
e sy
stem
and
its
futu
re im
plem
enta
tion.
The
futu
re su
cces
s of t
he X
7 sy
stem
now
dep
ends
hea
vily
on
the
qual
ity a
nd re
spon
sive
ness
of i
ts su
ppor
t by
the
vend
or.
8.5.
5.
BE
NE
FIT
S ID
EN
TIF
ICA
TIO
N
Est
imat
ion
of T
angi
ble
Ben
efits
Maj
or p
oten
tial t
angi
ble
bene
fits
from
CIS
/Bill
ing
impl
emen
tatio
n ca
n re
sult
– if
the
impl
emen
tatio
n is
pro
perly
pro
gram
man
aged
and
thos
e be
nefit
s us
ed to
es
tabl
ish
a ta
rget
ed p
erfo
rman
ce im
prov
emen
t bas
elin
e to
con
tinua
lly m
onito
r the
qua
lity
of im
plem
enta
tion.
Thi
s is a
gain
a k
ey p
rinci
ple
of th
e IT
MP.
Not
e th
at t
he b
enef
its h
ere
depe
nd s
ubst
antia
lly o
n ac
com
pany
ing
inst
itutio
nal
chan
ges,
on p
roce
ss r
eeng
inee
ring,
and
on
chan
ge m
anag
emen
t. Th
ese
oppo
rtuni
ties
alw
ays
pres
ent t
hem
selv
es d
urin
g sy
stem
s im
plem
enta
tion,
and
it w
ill b
e th
e fu
ture
res
pons
ibili
ty o
f th
e H
QIT
that
thes
e fu
ture
per
form
ance
is
sues
be
cons
ider
ed f
ully
in
deve
lopi
ng d
etai
led
func
tiona
l sy
stem
s sp
ecifi
catio
ns, a
nd r
ealiz
ed f
ully
dur
ing
impl
emen
tatio
n. F
or n
ow t
houg
h, g
iven
the
on
goin
g ro
llout
of X
7, th
e op
portu
nity
shou
ld b
e ta
ken
to se
ize
them
now
.
The
maj
or p
oten
tial b
enef
its id
entif
ied
by th
e G
roup
incl
ude:
One
-tim
e ca
sh in
flow
from
cha
nge
in q
uarte
rly to
mon
thly
bill
ing
(pha
sed
if ne
cess
ary
in o
rder
of c
usto
mer
con
sum
ptio
n by
val
ue)
A
nnua
l rec
urrin
g re
duct
ion
in a
dmin
istra
tive
NR
W
O
ne-ti
me
cash
inje
ctio
n th
roug
h re
cove
ry o
f bad
deb
ts
Not
e th
at ta
rget
ing
an a
nnua
lly re
curr
ing
incr
ease
in c
olle
ctio
ns w
ould
be
doub
le c
ount
ing
the
bene
fit o
f ann
ually
recu
rrin
g re
duct
ion
in a
dmin
istra
tive
NR
W,
sinc
e th
is is
how
the
latte
r is r
ealiz
ed.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
Due
to th
e X
7 ro
llout
dec
isio
n, th
e G
roup
did
not
com
plet
e th
eir q
uant
itativ
e an
alys
is o
f the
se p
oten
tial b
enef
its. T
he C
onsu
ltant
has
ther
efor
e do
ne a
hig
h-le
vel a
naly
sis
of th
e m
ajor
cas
h flo
w c
ontri
butio
ns th
at c
ould
be
real
ized
. Thi
s sh
ould
be
valid
ated
fur
ther
by
the
Gro
up, a
nd u
sed
as a
targ
et p
erfo
rman
ce
base
line
for t
he X
7 im
plem
enta
tion.
Shift
to M
onth
ly B
illin
g
Cur
rent
ly, t
he to
tal m
eter
read
to c
ash
rece
ipt (
“met
er to
cas
h”) c
ycle
tim
e ca
n be
as m
uch
as 1
35 d
ays (
allo
win
g fo
r the
full
met
er re
ad c
ycle
, bill
prin
ting
and
dist
ribut
ion,
and
cus
tom
er p
aym
ent).
It a
vera
ges
120
days
. Bes
t pra
ctic
e is
45
– 60
day
s or
less
, but
75
days
mig
ht b
e a
reas
onab
le ta
rget
for W
AJ
initi
ally
. A
nnua
l cus
tom
er re
venu
es a
cros
s W
AJ
are
arou
nd 7
2M J
D (e
xclu
sive
of t
axes
col
lect
ed w
ithin
was
te w
ater
bill
ing)
. Thi
s m
eans
abo
ut a
third
of a
nnua
l cas
h in
flow
s (2
4M J
D) i
s “t
rapp
ed”
in a
n in
effic
ient
met
er re
ad to
cas
h re
ceip
t cyc
le).
A s
impl
e sh
ift fr
om q
uarte
rly to
mon
thly
(ide
ally
rolli
ng m
onth
ly) b
illin
g –
for t
he le
ss th
an 2
% o
f lar
ger c
usto
mer
s who
acc
ount
for s
ome
50%
of t
otal
reve
nues
– h
as th
e po
tent
ial t
o pr
ovid
e a
one-
time
cash
inflo
w o
f alm
ost 4
.5M
JD.
Red
ucin
g th
e bi
lling
freq
uenc
y al
so h
as o
ther
ben
efits
– s
ome
of w
hich
hav
e al
read
y be
en n
oted
at A
WC
. The
se ty
pica
lly in
clud
e in
crea
sed
prod
uctiv
ity o
f m
eter
read
ers
and
billi
ng s
taff
(wor
k is
eve
ned
out),
incr
ease
d co
llect
ions
(cus
tom
ers
face
sm
alle
r bill
s) a
nd re
duce
d “l
oss”
of c
usto
mer
s be
caus
e of
cha
nges
in
pro
perty
ow
ners
hip.
Incr
emen
tal c
osts
are
ver
y lo
w.
Red
uctio
n in
Non
Rev
enue
Wat
er
The
gene
rally
acc
epte
d de
finiti
on o
f Non
Rev
enue
Wat
er in
clud
es le
gal u
se o
f wat
er th
at is
not
pai
d fo
r (ei
ther
not
bill
ed, o
r not
col
lect
ed).
Una
ccou
nted
for
Wat
er d
oes
not i
nclu
de th
is c
ompo
nent
and
the
adm
inis
trativ
e pa
rt of
UFW
is th
eref
ore
all i
llega
l con
sum
ptio
n. 5
0% o
f N
RW
in J
orda
n is
ass
umed
to b
e ad
min
istra
tive
thou
gh d
etai
led
brea
kdow
ns a
re h
ard
to o
btai
n or
val
idat
e an
d of
ten
vary
wid
ely
from
are
a to
are
a. M
akin
g an
ass
umpt
ion
(that
the
Gro
up
shou
ld v
alid
ate)
that
onl
y 30
% o
f the
adm
inis
trativ
e pa
rt of
NR
W is
lega
l use
that
is n
ot p
aid
for,
this
is th
e po
tent
ial s
avin
gs th
at im
prov
emen
ts in
the
met
er
to c
ash
proc
ess c
an ta
rget
.
Giv
en to
tal N
RW
of 2
75M
m3 in
the
sect
or, t
he p
oten
tial s
avin
gs fr
om im
prov
ing
the
met
er to
cas
h pr
oces
s co
uld
in th
eory
be
as h
igh
as 1
4.4M
JD
, val
ued
at
the
aver
age
reta
il ta
riff f
or w
ater
and
add
ing
a ve
ry sm
all c
ontri
butio
n m
argi
n fr
om w
aste
wat
er b
illin
g. A
5%
rela
tive
redu
ctio
n in
this
am
ount
(app
roxi
mat
ely
equi
vale
nt to
a 1
.5%
abs
olut
e re
duct
ion
in to
tal N
RW
(whi
ch c
oinc
iden
tally
is th
e sa
me
in a
bsol
ute
term
s as
that
ass
umed
for A
M-M
M re
duct
ion
in te
chni
cal
loss
es) y
ield
s an
annu
al re
curr
ing
bene
fit o
f 0.8
2M JD
.
Rec
over
y of
Bad
Deb
ts
Bad
deb
ts o
n th
e ba
lanc
e sh
eet
curr
ently
tot
al a
roun
d 13
.5M
JD
or
alm
ost
19%
of
annu
al r
even
ues.
If a
n ad
ditio
nal
1.5%
of
thes
e ba
d de
bts
coul
d be
re
cove
red
(by
targ
etin
g th
e la
rges
t out
stan
ding
) –
i.e. a
10%
red
uctio
n in
bad
deb
ts o
utst
andi
ng, a
n ad
ditio
nal o
ne-ti
me
cash
inflo
w o
f 1.
35M
JD
cou
ld b
e re
aliz
ed. T
he p
ract
ical
feas
ibili
ty o
f thi
s re
cove
ry w
ould
hav
e to
be
asse
ssed
by
the
Gro
up. F
acto
ring
of b
ad d
ebts
is o
ften
used
in o
ther
situ
atio
ns –
with
the
bad
debt
res
pons
ibili
ty b
eing
out
sour
ced
to a
col
lect
ions
age
ncy.
The
y w
ould
be
expe
cted
to a
chie
ve m
uch
larg
er r
educ
tions
but
in e
xcha
nge
for k
eepi
ng a
su
bsta
ntia
l per
cent
age
of th
e ne
t rec
over
y.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
Sum
mar
y of
Pot
entia
l Tan
gibl
e B
enef
its
Th
e fu
ll ca
lcul
atio
n of
th
ese
bene
fits
is
prov
ided
in
lo
cal
curr
ency
in
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
NNEX 7
– C
IS-B
ILLI
NG
BU
SIN
ESS
CA
SE. B
enef
its a
re th
en c
onve
rted
to U
SD a
nd d
isco
unte
d ba
ck to
the
star
t of
impl
emen
tatio
n to
allo
w d
irect
com
paris
on
with
syst
ems c
osts
.
The
sim
ple
(and
ver
y co
nser
vativ
e) a
naly
sis
abov
e su
gges
ts th
at o
ne-ti
me
cash
inflo
ws
of 3
- 4
M J
D c
ould
be
achi
eved
in th
e fir
st tw
o ye
ars
of o
pera
tion
of
the
CIS
/Bill
ing
syst
em, w
ith a
noth
er 0
.8 M
JD c
ontin
uing
in p
erpe
tuity
.
Oth
er In
tang
ible
Ben
efits
Thes
e in
clud
e:
R
educ
tion
in th
e nu
mbe
r of c
usto
mer
com
plai
nts (
both
bill
ing
and
serv
ice)
Impr
oved
resp
onse
tim
e to
fix
cust
omer
issu
es
R
educ
ed ti
me
to c
onne
ct n
ew c
usto
mer
s
Bet
ter c
ontro
l ove
r cha
nge
of p
rope
rty o
wne
rshi
p
Whe
re p
ossi
ble
thes
e an
d ot
her i
ntan
gibl
e be
nefit
s sh
ould
be
valid
ated
by
the
Gro
up, a
nd n
umer
ical
targ
ets
esta
blis
hed
as im
plem
enta
tion
benc
hmar
ks –
or
qual
itativ
e ch
ange
s mad
e to
the
impl
emen
tatio
n de
sign
– to
ens
ure
thei
r rea
lizat
ion.
8.5.
6.
EV
AL
UA
TIO
N O
F A
VA
ILA
BL
E S
OL
UT
ION
OPT
ION
S
The
Gro
up b
egan
look
ing
at fo
ur o
ptio
ns:
In
-hou
se o
r as
sist
ed i
n-ho
use
deve
lopm
ent
of a
sec
tor-
spec
ific
CIS
/Bill
ing
solu
tion
that
wou
ld r
epla
ce a
nd s
ubst
antia
lly i
mpr
ove
the
very
rel
iabl
e
CO
BO
SS 2
syst
em
R
ollo
ut o
f the
X7
syst
em a
s orig
inal
ly p
lann
ed
Pu
rcha
se o
f an
inte
rnat
iona
l bes
t of b
reed
syst
em –
typi
cally
US
sour
ced
such
as P
eace
, SPL
, or I
ndus
;
Impl
emen
tatio
n of
a re
gion
ally
dev
elop
ed sy
stem
such
as E
DA
MS
or th
e sy
stem
dev
elop
ed b
y A
rab
Tech
nolo
gy S
ervi
ces
Whi
le fu
ll ev
alua
tion
of th
ese
optio
ns w
as n
ot c
ompl
eted
bec
ause
of t
he ro
llout
dec
isio
n fo
r X7,
som
e ob
viou
s pro
s and
con
s em
erge
d in
clud
ing:
Inte
rnat
iona
l bes
t of
bree
d sy
stem
s w
ere
gene
rally
too
focu
sed
on N
orth
Am
eric
an o
r Eu
rope
an u
tiliti
es w
hich
are
ver
y di
ffer
ent f
rom
the
Jord
ania
n si
tuat
ion.
The
y of
ten
have
not
bee
n A
rabi
zed,
and
loca
l sup
port
is h
ard
to o
btai
n w
hile
out
side
supp
ort i
s exp
ensi
ve
M
any
of th
e ab
ove
issu
es, w
ith th
e ex
cept
ion
of A
rabi
zatio
n, a
nd so
me
othe
r iss
ues d
escr
ibed
abo
ve, a
lso
cast
dou
bt o
n th
e su
itabi
lity
of th
e X
7 so
lutio
n –
thou
gh m
any
of th
e fu
nctio
nalit
y an
d pe
rfor
man
ce is
sues
do
now
seem
to b
e be
ing
addr
esse
d by
the
Ade
lior v
endo
r
Reg
iona
l sol
utio
ns sh
owed
som
e pr
omis
e, b
ut c
ould
not
be
rese
arch
ed in
dep
th a
nd w
ould
nee
d fu
rther
det
aile
d ev
alua
tion
befo
re re
com
men
ding
them
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
A
ssis
ted
in-h
ouse
dev
elop
men
t, as
sug
gest
ed a
nd in
vest
igat
ed, b
y A
WC
see
med
a g
ood
solu
tion
beca
use
of th
e Jo
rdan
-spe
cific
requ
irem
ents
– b
ut w
ould
ne
ed t
o be
com
plet
ed u
nder
ver
y ro
bust
qua
lity
assu
ranc
e co
nditi
ons
acro
ss t
he c
ompl
ete
SDLC
– p
artic
ular
ly g
iven
the
sec
tor’
s re
lativ
ely
com
plex
“J
orda
niza
tion”
requ
irem
ents
The
sect
or is
now
ado
ptin
g a
“wai
t and
see
” at
titud
e to
X7.
NG
WA
will
not
pro
ceed
with
X7
for
a ye
ar o
r m
ore,
giv
en it
s cu
rren
t ong
oing
Ora
cle
FAS
impl
emen
tatio
n. A
WC
’s d
ecis
ion
on g
oing
ahe
ad w
ith it
s jo
int v
entu
re fo
r ass
iste
d in
-hou
se d
evel
opm
ent a
lso
appe
ars
to b
e on
hol
d, p
endi
ng e
valu
atio
n of
th
e la
test
ver
sion
of X
7 no
w p
rovi
ded
by th
e ve
ndor
.
If th
e X
7 im
plem
enta
tion
can
be ti
ghtly
man
aged
to a
chie
ve th
e id
entif
ied
bene
fits
abov
e, a
nd th
e su
ppor
t iss
ues
that
hav
e do
gged
the
syst
em s
o fa
r can
be
over
com
e, X
7 m
ay y
et tu
rn o
ut to
be
an a
ccep
tabl
e so
lutio
n, d
espi
te th
e fa
ct it
pro
babl
y w
ould
not
win
a fo
rmal
sys
tem
s se
lect
ion
proc
ess.
The
acce
ptab
ility
of
X7
is h
owev
er fi
rmly
pre
dica
ted
on c
ompl
etin
g th
e pr
oces
s im
prov
emen
ts a
nd in
stitu
tiona
l cha
nges
that
und
erlie
the
iden
tifie
d be
nefit
s. It
is im
porta
nt to
no
te th
at th
e on
e-tim
e ca
sh in
flow
from
shi
fting
larg
e cu
stom
ers
to m
onth
ly b
illin
g an
d th
e po
tent
ial r
educ
tion
in a
rrea
rs a
re fu
lly s
uppo
rted
by X
7’s
curr
ent
func
tiona
lity.
Eve
n w
ithou
t sub
-met
erin
g of
dis
tribu
tion
zone
s an
d SC
AD
A/G
IS in
terf
acin
g, th
e ac
tivat
ion
or p
rogr
amm
ing
of s
ome
sim
ple
inte
rnal
reve
nue
assu
ranc
e co
ntro
ls o
n bi
lling
and
col
lect
ions
sho
uld
also
allo
w t
he N
RW
red
uctio
n to
be
achi
eved
. It
wou
ld b
e irr
atio
nal
to p
roce
ed w
ith t
he X
7 im
plem
enta
tion
with
out t
arge
ting
and
real
izin
g th
ese
bene
fits
as a
min
imum
– e
spec
ially
as
the
resu
lting
inst
itutio
nal a
nd p
roce
ss c
hang
es w
ould
then
be
embe
dded
and
cou
ld e
asily
be
leve
rage
d if
X7
subs
eque
ntly
did
hav
e to
be
repl
aced
.
If X
7 do
es n
ot m
eet t
he e
xpec
tatio
ns n
ow s
et, t
he G
roup
’s w
ork
on fu
ture
bus
ines
s re
quire
men
ts w
ill fo
rm a
goo
d ba
sis
for d
evel
opin
g a
fully
det
aile
d se
t of
func
tiona
l sys
tem
s sp
ecifi
catio
ns f
or a
for
mal
sys
tem
s se
lect
ion
proc
ess.
We
wou
ld s
ugge
st th
at s
elec
tion
incl
ude
both
reg
iona
lly d
evel
oped
sol
utio
ns a
nd
assi
sted
in-h
ouse
opt
ions
. Ful
l pro
of o
f co
ncep
t and
det
aile
d im
plem
enta
tion
refe
renc
e si
te v
isits
and
eva
luat
ions
sho
uld
be in
clud
ed in
suc
h a
proc
ess.
In
wei
ghtin
g th
e ev
alua
tion
crite
ria, t
he s
elec
tion
shou
ld e
mph
asiz
e si
mpl
icity
of u
se (s
cree
n co
nfig
urat
ion
and
data
ent
ry),
supp
ort f
or N
RW
redu
ctio
n, e
ase
of
GIS
inte
grat
ion,
stro
ng C
IS f
unct
iona
lity
(e.g
. ful
l cal
l cen
ter
inte
grat
ion)
, tig
ht i
nter
nal c
ontro
ls, a
nd g
ood
repo
rting
sup
port
for
reve
nue
assu
ranc
e. F
ull
Ara
biza
tion
and
timel
y an
d co
st-e
ffec
tive
loca
l sup
port
are
likel
y “m
ust-h
aves
”. A
lthou
gh th
e G
roup
was
not
abl
e to
exa
min
e th
e pr
oduc
t off
erin
g in
det
ail,
the
EDA
MS
prod
uct s
houl
d al
mos
t cer
tain
ly b
e in
clud
ed in
any
sele
ctio
n gr
oup
beca
use
of it
s stro
ng fo
cus o
n N
RW
redu
ctio
n.
8.5.
7.
CO
STIN
G A
SSU
MPT
ION
S
Det
aile
d co
stin
g as
sum
ptio
ns w
ere
not
deve
lope
d fu
rther
giv
en t
he r
ollo
ut d
ecis
ion
for
X7.
The
bas
e fo
r th
is i
s un
ders
tood
to
tota
l $7
75K
whe
n im
plem
enta
tion
and
licen
se c
osts
are
incl
uded
.
The
busi
ness
cas
e an
alys
is in
the
follo
win
g se
ctio
n cl
early
sho
ws
that
pro
vide
d im
plem
enta
tion
can
be p
rope
rly ta
rget
ed a
nd m
anag
ed to
real
ize
the
bene
fits
iden
tifie
d, th
ere
is a
bsol
utel
y no
reas
on w
hy th
e se
ctor
cou
ld n
ot p
ay u
p to
$3-
5 M
to im
plem
ent a
new
CIS
/Bill
ing
syst
em if
nec
essa
ry. H
owev
er, i
n te
rms o
f U
SAID
fun
ding
, th
is p
oint
is
larg
ely
moo
t gi
ven
the
X7
rollo
ut d
ecis
ion.
It
does
not
mak
e se
nse
for
USA
ID t
o fu
nd a
ny p
aral
lel
assi
sted
in-
hous
e de
velo
pmen
t eff
ort.
How
ever
, dep
endi
ng o
n th
e co
sts
of m
odifi
catio
ns to
X7
and
subj
ect t
o pr
oper
just
ifica
tion
by, a
nd c
omm
itmen
t to,
a b
usin
ess
case
it is
co
ncei
vabl
e th
at U
SAID
mig
ht h
elp
fund
suc
h m
odifi
catio
ns. H
owev
er, i
n th
e ab
senc
e of
har
d co
stin
g da
ta, n
o pr
ovis
ion
for
this
has
bee
n in
clud
ed in
the
over
all I
TMP
cost
est
imat
es.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
1 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
8.5.
8.
BU
SIN
ESS
CA
SE –
A Q
UIC
K W
IN O
PPO
RT
UN
ITY
TO
SH
APE
TH
E X
7 R
OL
LO
UT
Th
e fu
ll B
usin
ess
Cas
e an
alys
is
is
avai
labl
e in
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
ANNEX 7 – CIS-BILLING BUSINESS CASE. Discounting the benefits streams discussed above back to the start of the CIS/Billing implementation, assuming a conservative 10% discount rate, and an implementation period of 2 years with a further one year of operation to realize the initial benefits stream gives a present value (PV) of $11.6M. Given that the rollout contract for the X7 is ~ $775K and assuming a contingency of 30% to cover additional functionality and hardware needs (this is likely to be high), the total implementation cost in local currency is around 700K JD. Assuming this is spread over a two year implementation period gives a PV (again at a 10% discount rate) of $1.69M 38F
39. This can be directly compared to the PV of the benefits stream to give a potential (and conservative) net present value (NPV) of $9.9M – subject of course to the rollout and implementation being robustly completed and program managed to a standard that enables full realization of the targeted benefits. This is clearly a “quick win opportunity” that should be seized.
8.5.9. RISK FACTORS AND THEIR MITIGATION
The risk factors applicable to each generic solution option are described in 446HTable 1 above. The risk factors in the X7 rollout, that the sector is now committed to, have already been discussed above. Given the difficulty of identifying sufficient experienced and strong program management within the sector – especially given the sector’s lack of implementation experience according to a business case – argues strongly for consideration of outside program management assistance. Whether this is realistic given the implementation schedule which sees work being completed around April 2007 is not clear. USAID contracting procedures would effectively prevent their involvement on a useful timescale. However, the business case clearly shows that significant program management expenses can be incurred – provided that quality services are purchased that can hold themselves accountable on behalf of the sector to the benefits realization.
8.5.10. TIMING OF IMPLEMENTATION
Discussion of this issue is moot.
8.5.11. USAID’S POTENTIAL ROLE
As identified above, given timely and effective coordination between the sector and the donor community, outside assistance from a quality shop might have been funded by USAID to assist in the X7 rollout. Unfortunately this did not happen and the business benefits opportunity may have been missed unless the sector can identify internally, or hire regionally, resources of adequate quality itself.
The case for USAID to participate further in the X7 rollout is not strong, unless agreement could be reached with the vendor for substantial on-going on-site support and partnering to pursue the business case opportunity using a “second wave” approach. This might be possible given that two of the three benefits in this case (shift to monthly billing and bad debt reduction) do depend substantially on institutional and process changes that exercise the existing functionality of X7. Realization of the annual recurring NRW benefit would be more challenging as it would require very close vendor cooperation but again it is possible that USAID could help fund the functionality upgrades required here. Finding outside assistance that would be willing to take on accountability for these results, absent a “clean sheet” starting point, might also be very difficult.
As stated above, given that vendor negotiations are still in progress and detailed cost estimates are not available, funding of this ITMP component has not been considered further in our overall cost estimates.
39 Note the inclusion of ongoing support costs in the analysis.
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
8.6. Back Office Systems
8.6.1. EXECUTIVE SUMMARY OF WORKGROUP RECOMMENDATIONS
Back office systems are generally defined as systems needed to run any kind of business. Examples would include finance and accounting, HR and HRM, and supply chain. ERP vendors have traditionally focused their development efforts on such back office systems because of their broad appeal to a large market.
Five priority back office systems areas, that are currently not supported or supported only poorly, were identified by the Back Office Working Group. One of those (Lands) is in fact a core operational system for JVA.
Given that five systems had to be covered by one Group, less detail is available for individual Back Office systems than has been provided above for key operational systems. Business case benefits are anyway often smaller and difficult to quantify for many back office systems. Our focus here has therefore been on understanding the as-is situation, developing the future business requirements and developing and recommending the best solution option. Wherever possible, the solutions chosen here leverage ongoing USAID’s investment in sector-wide implementation of Oracle e-Business Suite – subject of course to the solution being appropriate and suited to the identified business needs.
8.6.2. BUDGET PREPARATION
8.6.2.1. Executive Summary of Workgroup Recommendations
We understand that the completed or ongoing implementation of the Oracle e-Business Suite General Ledger module across much of the sector entry of budget line items, allocation and transfers of budget funds, and budgetary control and fund checking. Budget preparation (up to the point of final budget line entry) is however also important. Budget preparation is the process that sets direction for management improvement and efficiency, and by which the sector entities (especially the Operating Utilities) communicate their decisions about priorities and expected performance. Well prepared and, planned budget is a key determinant of sector performance. Budgeting is also the process that supports the achievement of the identified national goals. Rational, efficient and effective allocation of resources is the very foundation of sector performance improvement.
A comprehensive budgeting solution should: Systematize budget preparation across all cost centers Standardize workflow for planning and budget preparation – including standard worksheets for
budget line item development, justification and consolidation Provide for standard worksheets with Capture all budget justification at source Provide a full audit trail of the entire budgeting process – from initial budget submission through
approvals and changes to the final agreed budget Manage and support unlimited budgeting cycles Support zero-based budgeting which is generally much more effective than incremental budgeting
based on last year’s spending Support consolidation at any point to a standard chart of accounts so that departmental budgets
can be developed at the lowest level and consolidated up hierarchically Ability to make standard worksheet with the customization ability for specific needs
Arguably, from a financial as opposed to an accounting perspective, effective budget preparation is even more important than tight budgetary control. In the extreme case, there is little point in tightly controlling the wrong resource allocation.
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
The objective of this component is to implement a distributed budgeting tool that supports budget creation and justification review, modification and consolidation. It will be tightly integrated with chart of accounts and cost-center structures maintained in the Oracle FAS GL module, and will provide easy access to historical data maintained there to support budget preparation. Data on budget drivers and justification, captured at source, should be maintained throughout subsequent consolidations and available by drill down. Combined with a full audit trail of approvals and changes and their justifications, the system will enable a more systematic and effective budgeting process across the sector.
There are a number of options currently being investigated for configuring such functionality within the Oracle e-Business Suite financials – mostly available within the existing license package. An experienced Oracle implementer / integrator will be needed to make the final choice and complete the required configuration and / or application development. To assure a return on systems investment, a parallel institutional and change management project focused on the top-down introduction of performance management is required, but the EIS component described above could be leveraged to provide this.
8.6.2.2. As-Is Situation
Business Processes
Preparation for the next fiscal year budget begins a few months prior to the current fiscal year budget release in mid-July – with the issuance of a "call memo" from the General Budget Department. All departments prepare their budget requirements which are reviewed and revised by supervisory managers. Salaries and overhead items are usually budgeted at last year's level plus inflation – but other expenses are built bottom up according to the current business needs.
The current budgeting process tends to be input based rather than output based – limiting accountability for results. It may also be siloed – with limited consideration of the interaction of different line items. Managers often lack clear direction on overall results priorities and their specific individual accountabilities. Rather than being performance focused, the budget process often wastes inordinate time on detail that is only very loosely tied to performance targets and improvements. This effort diverts time and energy from the tough policy and managerial judgments needed to move entities closer to full, or at least O&M cost recovery. A lot of emphasis is placed on justifying new spending proposals, rather than defining expected outputs which are easier to justify and harder to subsequently cut. There is a widespread expectation that many budget requests will be significantly reduced in the approvals process so typically more funds are requested than are needed. In short (and this is not untypical of many budgeting processes especially in public sector institutions) the budget process is “gamed”.
While a budgeting system cannot directly change budgeting behavior and culture, systematization of budget preparation can be used to encourage a more output based focus leading to more effective resource allocation. Inclusion of a full audit trail that requires proper justification for both initial inputs and subsequent changes ensures budgetary discipline is maintained up to final budget approval. When government funds are rationed, cuts can at least be done on a more prioritized and logical basis with increased transparency.
Systems Support
Current budget processes are supported only by manually prepared Excel and Word templates with the former providing the numerical inputs and the latter providing justification. Justification is often limited and not tied to specific outputs or performance targets. Beyond passage of these templates up and down the management hierarchy, there is no controlled and audited workflow that ensures the final budget amounts can be readily tracked back to their original justification.
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
8.6.2.3. Major Improvement Areas
Clearly there are significant opportunities to improve the budgeting process. This will require significant institutional changes as well as systems support. Budgeting should set clear output and performance based management direction. It should also ensure that accountability for those outputs flows back into individual performance appraisal. Effective budgeting begins with a clear and regularly updated strategic plan that sets long-term goals and annual performance targets. Beyond tangible operational performance improvements, consideration of softer targets like customer service should also be included. Priorities amongst competing demands should be defined. All of this should then be effectively communicated to the sector’s 8,600 or so employees in such a way that they can each understand what their own contribution to improving sector performance. Obviously this cannot all be done at once – hierarchical top-down development and roll-out of performance targets must be done on a prioritized basis according to the largest and most quickly realizable performance improvements.
Incorporating these performance objectives and results as key elements in budget preparation (and in subsequent management reviews) is an essential foundation for this performance improvement focus. Systematizing the budget process, providing standard budget workflow (ideally that encourages team-based collaboration) and providing a full audit trail of justification for all inputs and changes is an important enabler of this institutional change process.
8.6.2.4. Future Business Requirements
A budget preparation system should: Be fully integrated with the Oracle General Ledger (GL) module and its chart of accounts and
cost center structure Maintain multiple versions within the GL during budget development and approval, with
automatic final posting of the approved budget into the control accounts Be fully web-enabled so all departments can access it (even if initially only on one desktop) Support budget creation, review, modification and consolidation through standardized fully
automated “push” workflow with full access control Include and require definition of all budget drivers and justifications – both financial and non-
financial Provide a full range of analytical tools (e.g. what-if and scenario analysis tools) to support budget
preparation Provide forecasting capabilities for demand drivers like number of new connections Be able to pull historical data from the GL and/or Projects and Grants for reference as needed Define standard worksheets for budget entry and justification (with limited customization possible
for specific departmental needs) Be able to export budget worksheets to Excel or HTML for collaboration with remote users, as
well as import to Excel for offline users Maintain a full audit trail of the entire budgeting process, including approvals and changes with
required justifications for initial inputs and all changes Be able to seamlessly consolidate spreadsheets from a departmental level up to the standard chart
of accounts, as well as summarization and full drill down across an entire entity budget Support unlimited budgeting cycles – so for example a current budget could be modified while
next years budget is under preparation Maintain a full history of past budget submissions and revisions Support all budgeting methods including zero-based budgeting
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
Be supported by user-friendly reporting and graphing toolsets
8.6.2.5. Benefits Identification
A quantitative business case is very difficult to develop so discussion here is limited to qualitative benefits. At the highest level the business benefits are driven by optimal allocation of each JD of Government budget to improving sector planning and performance. As discussed above this is absolutely fundamental to sector operation. More detailed business benefits might be derived as implementation targets and performance baselines by examining specific performance parameters and their historical budget allocations.
8.6.2.6. Evaluation of Available Solution Options
The Group examined a number of potential solution options, all based around the Oracle e-Business Suite implementation. Some of these would leverage existing and already installed modules, others considered implementation of additional modules that are already licensed or could be purchased additionally, while still others considered customized standalone applications that integrate fully with Oracle modules using their “flex field” features.
More specifically, the following options were identified: Fully configure the Oracle Budgeting and Planning functionality which is already embedded
within the GL and the Oracle Financial Analyzer distributed reporting module (already licensed as part of the existing e-Business Suite) to fully support the budget preparation future business requirements identified above
Implement the Oracle Enterprise Planning and Budgeting module (which replaces Oracle Financial Analyzer) which is not licensed under the existing e-Business Suite
Implement Oracle Public Sector Budgeting (also not licensed under the existing e-Business Suite) Implement a standalone “best of breed” budget preparation system selected from another vendor
like ROSS, Great Plains, Fund ware or Microsoft Implement a standalone, web-enabled budget preparation application developed by an
experienced Oracle implementation / integration vendor that is fully integrated with the Oracle GL module
Implement an in-house developed standalone budget preparation application
The pros and cons of these options are as follows: In-house development can be ruled out by the sector’s lack of experience to date with developing
applications that integrate with the Oracle e-Business Suite Such development could be done by an experienced Oracle implementer/integrator using the “flex
field” functionality available in Oracle modules. Such a strategy is actually supported by Oracle where client needs demand it. Very careful specification of business requirements, vendor selection and detailed proof of concept would be needed for this option but it would be possible to meet all the identified business requirements in this way
Standalone “best of breed” system applicability would depend on their ability to fully integrate with the Oracle modules – and would again require proof of concept. It is unlikely to be a cost-effective solution in this case
Implement new (currently unlicensed) Oracle modules:
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
Oracle Enterprise Planning and Budgeting module39F
40 which has full analysis and forecasting capability and meets most of the identified future business requirements – except for requirement of budget justification
Oracle Public Sector Budgeting – we understand that this does meet all the future business requirements identified above, including tracking of budget justifications. However the international version of the Public Sector Financials module may be required (the standard version uses US Public Sector accounting). This is likely to be an expensive and possibly over complex solution
Fully configure the Budgeting and Planning functionality which is already embedded within the GL module. This would not be able to meet all the identified business needs (including justification tracking) and would require detailed review of the existing configurations of all the implemented financials modules to ensure they are optimizing to support budgeting
Final Recommendation – Further Detailed Study and Proof of Concept Needed
It is not possible to definitively state the optimum solution here. Most likely the optimal solution is some form of “hybrid” that would require full configuration of the budgeting and planning functionality already embedded in the GL module, supplemented by some customization and/or standalone application development to support justification tracking. Further detailed study and proof of concept is therefore needed.
While in principle, and subject to availability of funds and USAID contracting requirements, the existing Oracle FAS team could do this we recommend that an experienced Oracle implementer/integrator be engaged to carry out this work. Customization of Oracle configuration is generally not a best business practice but it may be the only cost-effective solution in this case. Again, very careful specification of business requirements, vendor selection and detailed proof of concept would be needed here.
8.6.2.7. Costing Assumptions
Our best estimate of the costs involved in completing the above work, assuming a “hybrid” solution of the kind described above, with input from an example experienced Oracle implementer/integrator is $300K.
8.6.2.8. Risk Factors and Their Mitigation
The major risk factor here is HQIT’s ability to provide tight program management of all stages of the solution development, proof of concept, and implementation. This will take time to build and may result in the budgeting preparation requirement being pushed back in the overall phasing of the ITMP components. A review of the configuration of the existing Oracle financials modules can be done in advance. Clear performance baselines for implementation will need to be agreed as part of this program management. A concerted and parallel effort on institutionalizing new budget procedures and performance management principles will also be needed to assure a return on the systems investment.
8.6.2.9. Timing of Implementation
For the reasons discussed above, implementation of this ITMP component is likely one of the later Back Office modules. This is not ideal, since the benefits of its implementation are likely to be very significant, but it is probably unavoidable. The detailed schedule for implementation should be coordinated carefully with the annual planning and budgeting cycle to allow parallel operation of the
40 Note that Oracle now includes this module in its current Oracle e-Business Suite offering. There may be scope to renegotiate the licensed module bundle.
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
current manual process with the budgeting systems solution over one cycle.
8.6.2.10. USAID’S Potential Role
The fundamental importance of effective and efficient resource allocation across the sector, the low initial outlay, and the significant benefits obtainable from this component argue strongly for USAID support. However, proper institutional and change management preparation will also need to be considered, likely in conjunction with the EIS component described above.
8.6.3. PROJECTS PERFORMANCE
8.6.3.1. Executive Summary of Workgroup Recommendations
Currently the sector has no systems in place to manage its often major capital investments from planning, selection, design and financing, through construction oversight (budget and schedule) to validation of final project performance. A closed loop needs to be supported that covers both capital investments and projects performance. A projects management system is also an essential prerequisite for the EIS component described above.
Working in conjunction with GTZ, a joint vision of such a process has been developed and systems functionality and possible options identified to support it. This is shown in 447HFigure 4. GTZ is already working on the development of a basic projects database (due to go-live in September 2006) and this development effort can be leveraged as the basis for development of a more comprehensive solution later. This system will likely be standalone but fully integrated with Oracle FAS. A standalone solution will provide a more cost-effective and user-friendly solution than integration of additional Oracle project management modules already included in the current license package. Basic project accounting functionality is already included under the Oracle Accounts Payable module implementation.
8.6.3.2. As-Is Situation
Business Processes
The typical project in the water sector will undergo a number of phases before it becomes operational. These inxlude:
Project identification and assessment by the executing authorities (WAJ and JVA) Evaluation of the project business case and prioritization of project investments against sector
objectives and resources and funds constraints Detailed project design and planning – including definition of projects activity and development
of overall project structure and work plan Funding – after project approval, financing agreements are signed by MoPIC and the project
owner if the project is funded by donors as grants or loans The SG of the entity owning the project sends a copy of these financing agreements to the SG of
MWI Implementation – the executing authority will receive the project documents and issue tenders for
preparatory studies or the construction and implementation as appropriate Follow up and evaluation – the executing authority receives progress reports from the contractors
and sends them to the Project Finance Department within the Ministry
MWI: The Projects Finance Directorate in the Ministry is responsible for preparing the overall sector’s capital investment plan. It also coordinates between WAJ, JVA and MoPIC to arrange donor and private sector financing support if needed.
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
WAJ: There are two Directorates concerned with projects management – the Water Projects Directorate and the Waste Water Projects Directorate. Each is responsible for developing, prioritizing and designing the projects required – and for following up the progress of projects after their approval by the Minister. A Project Manager is assigned for each project to monitor the contractor’s performance and approve progress payments. The Project Accounting department processes these payments.
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
85
Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
WIS
WM
IS
Inve
stm
ent
Plan
Cap
ital
Rat
ioni
ng
Coo
rdin
atin
g Fi
nanc
e So
urce
s
NB:
Add
ition
al v
alid
atio
n an
d ch
alle
nge
proc
esse
s ar
e no
t sho
wn
for c
larit
y
Figu
re 4
- C
apita
l Inv
estm
ent -
Pro
ject
Per
form
ance
To-
Be
Visi
on
Jordan Water Sector – IT Master Plan 86 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
JVA: There is no special unit within JVA for project management. Each Directorate in JVA is responsible for defining their own project needs and for monitoring of project progress.
Ministry of Planning and International Cooperation (MoPIC): MoPIC is responsible for coordinating project financing sources and for signing funding agreements with the donors for all sector projects.
Systems Support
Neither WAJ nor JVA have a projects database and a lot of project data is stored in Excel files. JVA has begun a projects database initiative but it is not yet implemented. MWI, with the support of GTZ is developing a projects database which should go-live in September. The Oracle database design was developed over two years ago but the project has now been restarted. There are no plans to integrate the database with Oracle financials and the database design captures only basic project information and funds disbursement. It does not include project objectives or tracking of actual performance against design parameters and it does not monitor project progress beyond financial tracking. Essentially it really is a database and not an application that really enables full project management. However, it is an excellent start to addressing the projects management area and can be leveraged in development of more sophisticated project management solutions under the ITMP.
MoPIC has purchased an application called ProgramOne to store and manage projects information across all governmental agencies. The applications focus is primarily on construction schedules and on management of tenders and contractors (see 208Hhttp://www.mopicone.gov.jo/Login.asp ). It does not monitor projects performance in the sense required by the sector. The application is web-based using and is maintained by an ASP. MoPIC was responsible for training users on the application, and three individuals from WAJ, JVA and MWI were trained almost two years ago. These individuals provided then provided paper-based project data to MoPIC to populate the system. However, full implementation has not been completed.
8.6.3.3. Major Improvement Areas
A full scope Project Management System available on a web-enabled basis to the whole sector is required. It should cover the full project life cycle (Planning, Tracking, Costing, Budgeting, Monitoring, and Closing) and ensure closure of the performance loop (both actual vs. design performance, and contractor performance against budget and schedule). Closure of the performance loop is needed to move from simple progress monitoring to actual progress management.
8.6.3.4. Future Business Requirements
A Project Management System (PMS) should include the following functionality: Project parameters and design data Specific project objectives Management of project approvals and their associated workflow Management of project funding (to ensure adequate amounts and mixes of funds are raised from
local, private, donor loan and / or donor grant sources Monitoring of project progress and management of progress payments and variation orders Monitoring of contractor performance Comparison of actual project performance against design considerations Management of project tendering and contracting Funds disbursements and loan servicing Project resourcing
Jordan Water Sector – IT Master Plan 87 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Consolidated project reporting Identification and incorporation of best practices and lessons learned from previous projects
While detailed project design and screening for prioritization are processes that require expert technical input, a PMS should include planned as well as in-progress projects so that design parameters can be compared.
The overall philosophy of the PMS is summarized in 448HFigure 5. The philosophy applies both to project design and to management of project construction.
Figure 5 - Project Performance Loop
8.6.3.5. Benefits Identification
Benefits are again difficult to estimate quantitatively in advance but design and implementation of the PMS should target the following qualitative performance dimensions:
Efficient planning and follow up for projects in the whole water sector as one unit Efficient planning for the water resources management for the Kingdom (this may require
integration with the NWMP / WIS) Effective prioritization of project spending according to the project portfolio developed Effective and efficient use of available donor and loan funds Better coordination of donors and stronger project justification Timely and properly justified allocation and tracking of funds disbursements Preparation of project budgets and budgetary control Preparation and monitoring of budget schedules Internal and external (e.g. MoPIC/donor) project reporting Support for ad-hoc project queries
8.6.3.6. Evaluation of Available Solution Options
The Group identified the following solution options: Implement the Project Costing, Billing and Resource Management modules already licensed
under the Oracle e-Business Suite module bundle Purchase or negotiate a new license for the Oracle Projects Management that is not included under
the current module bundle but is now included in the current Oracle e-Business Suite offering
Jordan Water Sector – IT Master Plan 88 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Implement the ProgramOne system (web-based application) already purchased by MoPIC and intended to be implemented across all Ministries
Implement (or customize an existing core application already developed) a standalone, but fully Oracle financials integrated web-based application developed and customized by an experienced Oracle implementation / integration vendor
Develop the same in-house
The pros and cons of these options are as follows: Examination of the functionality of Oracle’s e-Business Suite modules shows them to focus very
strongly on the financial aspects of projects. Billing and Resource Management have little relevance. Both Costing and Projects Management have a very strong financial focus and are over-complex solutions focused more on the needs of contractors themselves
Implementing the MOP application is without doubt the cheapest solution. However, its functionality is also very limited. Integration with its needs, assuming MoPIC completes its implementation, will need to be considered if any other solution option is chosen
A standalone, fully Oracle integrated solution is best likely to meet the sector’s needs is a simple and user-friendly manner. However, it will need to be specified, designed and program managed very carefully, and the developer carefully selected
In-house development is a possible option in the longer term once the capacity of the HQIT has reached the point where it can cover off Oracle e-Business Suite configuration management and integration, but it is not recommended as a short-term solution
Final Recommendation – Development by Experienced Oracle Implementer/Integrator
On balance, the best option is standalone development of a fully Oracle integrated solution. However, first the success of the GTZ database should be fully understood and MoPIC’s future plans for ProgramOne clarified. The design of the standalone application should fully leverage and integrate with both of these initiatives.
8.6.3.7. Costing Assumptions
Based on a demonstration and follow up discussions with an experienced Oracle implementer/integrator (Arab Technical Services), our best current estimate of the funds requirement for this initiative is $430K. This would need to be confirmed after systems selection during final negotiations.
8.6.3.8. Risk Factors and Their Mitigation
The major risk factor here again is HQIT’s ability to provide tight program management of all stages of the solution development, proof of concept, and implementation. Detailed functional system specifications and screen designs will need to be developed. Compatibility with MoF and MoPIC requirements will also need to be assured. Tight program management and quality assurance procedures will need to be agreed with the developer, and their long-term support for the product verified.
8.6.3.9. Timing of Implementation
Again development of this application will have to await building of effective program management and quality assurance procedures in the new HQIT. However, we suggest in this case, given the importance of having some kind of project management system available to the HQIT to monitor and manage its own portfolio of projects that vendor proof of concept might be advanced and a free demonstration version installed in HQIT for further evaluation. This would also provide a platform for development of detailed functional systems specification requirements with full involvement of
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project management departments in all entities.
8.6.3.10. USAID’S Potential Role
Given the current involvement of GTZ in this area, collaboration and/or co-funding could be considered in this case. USAID’s main contribution would be in building program management and technical skills in the new HQIT to assure quality design and implementation of the application.
8.6.4. HUMAN RESOURCES MANAGEMENT (HRM)
8.6.4.1. Executive Summary of Workgroup Recommendations
While HR (employee records) and Payroll modules are being implemented under the Oracle FAS project, there is no plan to extend HR functionality to the full HRM cycle. There are currently no clear career or human resources development tracks in the sector and no training plans tailored to individual needs. Training courses offered externally are not always allocated on a rational basis, but an annual survey of all employees is used to plan internal training programs.
The objective of this component is to provide the sector with comprehensive HRM functionality including performance management, career development and training planning, succession planning and manpower planning. This will greatly improve the effectiveness of training in the sector and relate it much more closely to performance achievement and career development.
Again, our recommendation is to implement a standalone, but fully Oracle FAS integrated, HRM solution developed by an experienced Oracle implementer / integrator.
8.6.4.2. As-Is Situation
Business Processes
Identification of this HRM requirement first came to light when the Group examined current training processes. It was first suggested that a new “training” application needed to be built. (Note that individual training records can be maintained in the HR module being implemented as part of the Oracle e-Business Suite).
Current training processes are described below: The Training Department plans annually for the training needs of all employees by distributing a
survey distributed to all employees with the training courses offered Survey data is received by the Training Department, analyzed and summarized into an Excel file,
and reviewed and approved by the Unit Head The Training Department then plans its Training Program based on the survey results and this is
reviewed and approved by the SG Training is delivered internally by the sector’s own training staff, outsourced, or provided by the
GoJ or donors.
Systems Support
There is no sector-wide systems support for training beyond the use of Excel spreadsheets, and certainly none for HRM as discussed further below.
8.6.4.3. Major Improvement Areas
Analysis of this training process revealed a number of improvement opportunities that properly position training with the Human Resources Management cycle as a programmed part of individual and sector human resource development. This is of course closely linked to the whole performance
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management agenda which has already been identified as missing in the Headquarters Organizations. Achievement of the full potential of its human resources, and their appropriate motivation, is essential to any organization and there appears to be a major opportunity within the Headquarters Organizations to introduce these concepts and adequately them with appropriate systems. Specific opportunities identified include:
Establishing and communicating clear goals and annual plans for each department, driven by the National Agenda and the sector’s Strategic Plans
Translating these into specific roles, responsibilities and job descriptions for each department and position that are clearly linked to sector performance improvements defined in the goals and annual plans
Further parsing these roles and responsibilities, considering individual capabilities and experience into annual performance goals and targets that are agreed with each individual
Developing individual training (and certification where appropriate) plans to support achievement of these goals and targets
Also developing standard career development and training tracks for typical entry routes (e.g. new graduate)
Monitor and track training courses completed by individuals Annually appraise individual performance, and ideally reward, achievement against the pre-
agreed annual goals
The above improvements constitute basic best practice in modern HRM. Training needs are explicitly and rationally linked to individual and departmental needs and properly aligned with the sector’s long-term plans and performance improvement needs. Subjective training allocations are eliminated and training budgets can be fully justified on a bottom-up needs basis. We do not suggest they can be implemented across the whole sector in one go, but they could be phased in on a “middle management out” basis given appropriate systems support.
8.6.4.4. Future Business Requirements
On the basis of the vision just described, a full scope but simple and user-friendly application is needed to cover the full HRM cycle. It should be fully integrated with employee records maintained in the Oracle HR module, and be able as core functionality to:
Define standard career development and succession paths Enter and record for each individual their agreed annual goals and performance targets Enter and record for each individual their annual appraisals against these goals and their review
by their supervisors and / or annual management Allow individuals to retrieve and review their training and performance records Provide a searchable e-Catalogue of training courses Track training and certifications completed Provide a competency and experience search engine to identify “best-fit” employees for specific
positions
Additional HR functionality identified by the Group that could either be included in this application or provided in other ways includes:
Maintenance of manpower planning needs Support for succession planning Full cycle support for recruitment –from needs identification, through advertising, application
receipt, and interviewing to job offer
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Integration of Oracle payroll with attendance clocks or finger print clocks (this was not investigated further as there appears to be no strong business case for it)
Making HR policies, procedures and forms available electronically (this is covered under the Collaboration component of the ITMP)
8.6.4.5. Benefits Identification
Once again, a quantitative business case is hard to define here. Qualitative benefits however include: Substantial increases in employee motivation and productivity Effective succession (and possibly job rotation) planning Effective and efficient allocation of training resources Increased focus on individual contributions to sector performance improvement
8.6.4.6. Evaluation of Available Solution Options
The Oracle E-Business Suite module bundle already licensed includes several additional HR modules beyond the two (HR and Payroll) that are currently being implemented. Licensed modules include:
HR Self-Service Advanced Benefits Training Administration (now Learning Management) HR Intelligence
Examination of the functionality of these modules suggests that it may be possible to satisfy the business requirements identified above in the following way:
Carrying out additional configuration in the HR module Implementing Learning Management and HR Self-Service (the latter for appraisal entry)
The main alternative to this solution is to implement (or customize from an existing application) a standalone HRM system that is fully integrated with the Oracle HR module. Many organizations that have implemented ERP solutions still find this the most cost-effective and simple way to manage the core performance management component of HRM and several best of breed standalone systems (unfortunately not yet Arabized) exist in the market because of this fact. Again an experienced Oracle implementer/integrator would be needed to do this (in-house development is not recommended). A demonstration by an example vendor (Arab Technical Services) of such a system was provided. Such standalone systems are supported by Oracle as appropriate in some cases according to client needs.
The pros and cons of these options are as follows: Additional proof of concept would be required before committing to the Oracle module solution
and care should be taken that the solution is not overly complex and that screens are user-friendly A standalone, fully Oracle integrated solution is more likely to cost-effectively meet the sector’s
needs is a simple and user-friendly manner. Again it will need to be specified, designed and program managed very carefully, and the developer carefully selected. However, proof of concept should again be sought.
Final Recommendation – Proof of Concept to Choose between an Oracle Module Approach and Standalone Solution Developed by an Experienced Oracle Implementer/Integrator
Without detailed proof of concept, it is difficult to choose between these options. On balance, we believe that the simplest and most cost-effective option is standalone development of a fully Oracle integrated solution. However, this would need to be confirmed through a systematic systems selection process that includes detailed proof of concept. Functionality should be weighted much higher than
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price in such a selection (80/20 being a good guide).
8.6.4.7. Costing Assumptions
Based on the demonstration received and on follow up discussions with the demonstration vendor, and assuming a standalone solution developed by an experienced Oracle implementer/integrator, our best current estimate of the funds requirement for this initiative is $470K. As the demonstration system included certain functionality already provided in the Oracle HR module implementation (HR record keeping and payroll), it may be possible to reduce this price somewhat during final negotiations. An Oracle module solution is likely to be feasible for a similar or possibly slightly higher cost but the final decision again should emphasize functionality and we consider the $470K to be a workable estimate at this stage.
8.6.4.8. Risk Factors and Their Mitigation
Once again, the major risk factor here again is HQIT’s ability to provide tight program management of all stages of the solution development, proof of concept, and implementation.
8.6.4.9. Timing of Implementation
As in the case of the Project Management System, the HRM system will be very useful to the HQIT implementation which puts great emphasis on effective capacity building, training and performance management of HQIT staff. We therefore again suggest that some vendors be approached to provide an early proof of concept and potentially a free demonstration version installed in HQIT for further evaluation and development of detailed functional systems specification requirements with full involvement of HR staff across all entities. Oracle should also be given the opportunity to demonstrate its module proof of concept at this time also – though it is less clear that Oracle would be willing to provide a free demonstration system for the exclusive short-term use of the HQIT.
8.6.4.10. USAID’S Potential Role
The case for USAID supporting this ITMP component is directly linked to its technical assistance support for the new HQIT. Effective and early implementation of an HRM solution would be a critical component for continual monitoring and evaluation, and periodic evaluation, of the success of that technical assistance – with the ability both to measure and track training inputs, but more importantly provide objective proof of individual development outputs.
8.6.5. LEGAL
8.6.5.1. Executive Summary of Workgroup Recommendations
Some 1,000 – 1,500 legal cases are open at any one time across the sector, relating to a variety of issues including land acquisition and compensation, personnel, construction and customer illegal connections. External legal services are employed to support some of these. A system is needed to manage electronically the extensive documentation generated in handling these cases, to manage the case workflow on a push basis, to track and manage financial implications both in terms of external costs and contingent liabilities, and to monitor win/loss rates.
While it has not been possible to definitively obtain details of the net amounts paid out by the sector in these cases, it clearly runs into several millions of JD. A 10% improvement in the win rate due to better organization and management of the case load aided by such a system has the potential to pay for the systems needed investment within 1 – 2 years. Legal case tracking has also been identified as a key input for the proposed EIS component of the ITMP.
The recommended solution option here leverages the Collaboration Suite component and would be internally developed by the HQIT at minimum cost.
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8.6.5.2. As-Is Situation
Business Processes
The sector currently has a total of 14 legal staff – four full time lawyers at both MWI and JVA, each assisted by 3 legal clerks. In addition, another six lawyers are on contract to MWI, and one to LEMA. WAJ does not employ or contract its own lawyers as they are covered by the MWI Legal Department. Legal cases managed by the sector fall into a number of different categories including:
Land acquisition and compensation Human resources cases (wrongful dismissal etc.) Wells Construction and other projects. Customer cases
The majority of cases relate to come form of compensation claim against the sector. Some 1,000 – 1,500 cases are open at any one time across the sector. There are no electronic records kept – only paper files. The legal department was unable to provide any recent data on the number of cases lost or won and the net compensation paid by the sector – except by referring directly to individual files as a specific data collection exercise.
Systems Support
An existing Oracle database application at WAJ records basic case data including the file number, case number, key dates, court, lawyers involved, and claim and judgment details. The full database schema is shown in 449HFigure 6 below.
Figure 6 - WAJ Legal Case Tracking Database Schema
There is currently no document management or workflow functionality but this could be provided
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through integration with other systems. The key functionality that is missing is the financial tracking aspect – which is essential in making accounting provisions for contingent liabilities.
JVA’s legal department currently has no legal systems support.
8.6.5.3. Major Improvement Areas
The Group identified three improvement areas as follows: Addition of full document management and “push” workflow functionality to better track and
manage cases and be easily able to review case histories (long lapses are not uncommon) Provision of selected financial tracking of claim and judgment amounts and payments and
external legal costs – note that there is no requirement for full integration with Oracle financials here
Better tracking and controlling external legal fees Reporting tools and ad-hoc query support to easily and accurately generate case reports and
monitor win/loss rates etc. as required by sector leadership
8.6.5.4. Future Business Requirements
The business requirements follow the major improvement areas above. Tight security controls on document and financial records access will also be needed with full audit trail capability to ensure that documents do not get into the public domain unintentionally.
8.6.5.5. Benefits Identification
A simple business case could be developed based on the amount of compensation paid out annually. While improvements in win rates may be hard to estimate, the system is bound to have some positive impact on this. It should be designed with this goal in mind and full involvement of the Legal Department obtained to get their insights on specific management and process performance and improvement issues, not just design another improved database. A very simple estimate – based on an assumption of a 10% win rate improvement would suggest the system investment is likely to pay for itself in 1 – 2 years.
8.6.5.6. Evaluation of Available Solution Options
Legal applications available in the market typically satisfy the needs of law firms, large and small. They are not so well suited to the sector’s legal situation, but could, at least in principle, be customized to do so. The best match identified in a market solutions search was Focus Power Legal – see 209Hwww.focuskm.com This legal workflow solution constitutes an advisory tool to respond to upper management enquiries in a timely and accurate manner. Focus Power Legal is specialized software that controls, distributes, monitors and manages the workflow of legal cases. It assists in efficiently completing the tasks, enables centralized monitoring of progress and supports benchmarking and smooth reporting in a concise manner.
A much better alternative in this case is probably in-house development. At one level this could just be further development of the existing database – leveraging the ImageLinks system for both document management and workflow functionality.
However, given the IMTP is proposing that the sector move to a full collaboration tool suite, it would be more effective to leverage the workflow and document management functionality available in that suite. Programming and database functionality is also supported by most collaboration systems so a full application could readily be developed internally.
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Final Recommendation – In-House Development of a new Legal Application using the Collaboration Suite Functionality
Besides being easy to develop, this approach has the advantage of being able to demonstrate an early “win” for the collaboration suite investment.
8.6.5.7. Costing Assumptions
Cost Estimation:
A local vendor suggested that customization of its already developed system targeting law firms might cost around $20K based on 6 users, and might take up to 2 months for implementation. This is clearly a low-cost solution, but better functionality is likely obtainable by in-house development and total costs can then be entirely met internally from staff salaries.
8.6.5.8. Risk Factors and Their Mitigation
In-house development must be carried out according to acceptable international software development standards, supported and fully documented using appropriate applications lifecycle management (ALM) tools.
8.6.5.9. Timing of Implementation
This development effort could start as soon as the collaboration tool suite, and appropriate parts of the ISO 35.080 software development standard and supporting ALM tools, are in place.
8.6.5.10. USAID’S Potential Role
External funding of this application is not required. Even if a market solution were adapted, internal budgets should be able to cover this need – especially since it should be fully justifiable by a simple business case.
8.6.6. LANDS
Effective management of the lands portfolio is critical particularly to JVA – both for its leasing revenue impacts and for achievement of its socio-economic goals. A large amount of diverse data has to be tracked and managed around lands – including land type, use, leases, and value. Such information needs to be fully integrated with GIS. The Lands system needs to go beyond being a simple database application to supporting more effective lands management processes and better decision-making across all the departments involved in lands management.
Further work on the business case and desired functionality for this system should be undertaken in preparing the detailed systems specification, as this is a complex system from which real business benefits must be extracted – especially given JVA’s current level of cost recovery. The final solution here will be a custom developed system appropriately integrated with Oracle FAS, GIS and WMIS. This will require careful specification and tight program management of the outside development partner. Example cost estimates have been obtained from an experienced Oracle systems implementer / integrator. In the short-term, enhancements to the current system (which the Group anyway considered as a valid solution option) should be undertaken as a stopgap measure.
8.6.6.1. As-Is Situation
Business Processes
The JVA Land Department expropriates land in the Jordan valley to divide into farming and housing units, to build dams, to build canals, and for other projects. JVA both compensates owners of expropriated land and receives compensation for the redistributed land, so former owners and
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purchasers alike are considered JVA “customers”. Customers have either debit or credit accounts with the JVA. Former owners have credit that the JVA pays off in installments over a period not to exceed ten years. Purchasers of land are in debt to the JVA; they must pay it off in no more than twenty years. In effect JVA is managing a portfolio of land investment and it is important that systems support is provided to do this optimally. Lands are a major revenue source – accounting for about 65% (or around 5-6M JD) of total revenues with sales of water40F
41 making up the remaining amount.
Additional business processes include lease management (mainly for tourism projects, but also for commercial and industrial use), allotment of agricultural land and housing units, aggregation of lands, change of ownership, management of irrigation network devices and power supply connections and change of zoning. Use of data contained within JVA’s Water Management Information System (which also supports billing for water at JVA) and within GIS systems is therefore needed also.
Systems Support
Transactions involving land are tracked on a computer system developed by ERNO/SMS under a 1988 contract. The system is organized as six modules: coding, database administration, land transactions, housing, accounting, and reporting. The system integrates with Oracle financials modules to track the capital value of the lands and share the plot number. Invoicing, and cash receipts and disbursements are tracked directly within Oracle financials.
8.6.6.2. Major Improvement Areas
A number of specific improvement areas for financial and accounting needs have been identified in previous studies including:
For sales of land:
Aging of customer accounts to identify and better manage bad debts Provision of credit notes for support of adjustments to farmer’s accounts Establishment of master accounts by farmer to help monitor accounts receivable and to be
able to tell the financial position of each farmer, his fees and payments, ability to pay, credit limit and water consumption forecasts
For lease of land for investments:
Track of accounts receivable and payable Treat the value of the land in accordance with international accounting standards – either as a
current or non-current asset depending on whether the land is expected to be sold within one year
Record interest earned and interest accrued on a monthly basis Generate proper subsidiary ledgers for regular posting to the general ledger Allow for revaluation of long-term land investments
More importantly, full document management and workflow functionality should be added in addition to simple land transaction capture and tracking. Ideally the system should contain tools for optimizing the lands portfolio based on balancing achievement of socio-economic indicators and revenue optimization according to land use options.
While water sales are tracked and managed by the WMIS, there should also be appropriate integration of the Lands system with WMIS, and indeed with GIS.
41 Managed through JVA’s Water Management Information System (WMIS) which supports a wide variety of functions including water budgeting (supply and demand), water allocation, management of water extraction and reservoir levels, irrigation scheduling, supply of water to Amman, and water distribution and billing .
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8.6.6.3. Future Business Requirements
As investment (especially in the tourism sector) in the Jordan Valley is becoming a very profitable business, a system that optimizes investment decisions across the entire lands portofolio has he potential to make a significant impact on JVA’s cost recovery. Access to the Lands system should be fully web-enabled so that the Lands Department, the Lands Authority (another GoJ entity), the Investment Department, Labs, WMIS staff and JVA leadership can all access the system.
Full document management functionality (leveraging the collaboration suite component) should be included (all records are currently kept on paper) and digitization capabilities provided. Workflow functionality should support all the different transaction types involved in lands management, and optimization routines and constraints should be developed and built into the application. Full GIS integration for land use is required, as is some WMIS integration because of the inherent link between land use and irrigation..
A high-level block diagram of the proposed application is shown below in 450HFigure 7:
Figure 7 - Lands System High Level Block Diagram
Significant additional effort is required to fully develop the detailed functional system specification for the Lands system to ensure that it is an effective management tool and not just a tracking database.
Consideration should also be given to including any specific lands management issues that WAJ faces –e.g. rights of way management and potential revenues from them.
8.6.6.4. Benefits Identification
With a better understanding of what optimization business rules can be applied to lands management in the Jordan Valley, it should be possible to develop a business case for the system. The Group was unable to do this in the time available. Full account of the increase in land value from improvements like the provision of roads and power should be included in the optimization. In this case, as well as
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justifying the investment and providing an implementation baseline, the business case should also aid in the detailed design of the application. In developing the revenue driven business case, account must be taken of any tradeoffs with socio-economic objectives mandated for JVA.
Besides revenue optimization through better portfolio management, additional cash inflows may be derived from better collections management if the Lands Department is provided with aged receivables and appropriate exception reports. Optimization of the irrigated land portfolio by crop type (revenue/m2) recognizing the constraint of soil type is another potential business case driver.
The prices of lands changes by time as enhancements on the lands “such as roads and power” is being done, the system would also help better evaluate prices and thus generate revenue for the JVA.
8.6.6.5. Evaluation of Available Solution Options
The Consultant was unable to identify in the time available any comparable and comprehensive systems for land management that would meet all of JVA’s specific needs. Customization of a market solution is therefore not a realistic option. Development must therefore be done either fully in-house, or with the assistance of an outside software developer.
One such development option is to enhance the existing system. It already meets some 80% of needs, and is fully internally developed and supported so that knowledge and wisdom about the system is still retained within JVA. It is not however integrated with either GIS or FAS, although plot numbers allow manual cross-reference to these systems. Internal development would also not require any outside donor support, and could be started immediately if it did not wish to benefit from the proposed HQIT capacity building effort. However, it is not clear to the Consultant that going down this particular development route would guarantee the best possible optimization of lands revenues.
Final Recommendation – Assisted In-House Development
A better alternative to enhancement of the existing system is to engage an outside vendor to work alongside the HQIT staff to develop a new system from the ground up. Parallel development of a business case with outside involvement is likely to produce a more highly developed and comprehensive set of detailed functional systems requirements that would do much more than just automate the existing business processes and track all relevant data elements of different transactions. Developing this system according to best systems development practices is also a very good learning and growth opportunity for HQIT staff as they work alongside outside developers.
8.6.6.6. Costing Assumptions Provisional cost estimates developed with input from an outside vendor, and inclusive of development costs, implementation fees, hardware, documentation and 3 years support and maintenance, suggest final costs might be around $510,000.
8.6.6.7. Risk Factors and Their Mitigation
Assisted in-house development must also be carried out according to acceptable international software development standards, supported and fully documented using appropriate applications lifecycle management (ALM) tools. HQIT will again need to provide tight program management and QA.
8.6.6.8. Timing of Implementation
Given the complexity of both adequately defining and designing this system, and the need for tight project management, we suggest that implementation should await demonstrated building of capacity within the HQIT. Engagement even of an experienced and trusted outside developer before that is unlikely to produce the same quality of results. In the meantime, upgrade of the existing system could be used as a stopgap measure.
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8.6.6.9. USAID’S Potential Role
USAID should fully support this development initiative through its technical assistance component of the HQIT with the outside developer contract being procured through and managed by the latter.
8.7. Collaboration and Web Presence
8.7.1. EXECUTIVE SUMMARY OF WORKGROUP RECOMMENDATIONS
The effective use of modern “collaboration” technology to improve personal and administrative productivity is a major opportunity in many public sector organizations. Its importance to the water sector is that it enables management staff to do more value-added work that target higher level goals like improving the sector’s performance. Collaboration tools functionality goes well beyond normal Microsoft Office programs that are already widely used in the sector. The functionality and the opportunities they provide include:
Document and knowledge management – developing, sharing, archiving, commenting and approving of internal documents (generally project-related) to increase information availability and enhance productivity
Work flow and correspondence management – automated electronic routing and “push-based” approval of internal memos and common forms (e.g. leave requests) – with full audit trail – to speed approvals and reduce unnecessary bureaucracy and paperwork
Communications (internal and external) including email, instant messaging, potentially remote access to documents, meeting coordination, common contacts database, internal news communication
Groupware to facilitate shared project work and easily collaboration through virtual shared intranet (or internet) sites
The financial investment required here is by far the smallest of the ITMP components, making a detailed business plan much less important. The latter is anyway very difficult to develop and soft factors may be more important than direct cost savings. Overall the benefits of this implementation in improved personal and sector productivity can be very significant, but substantial investment in internal staff time and training will be required to fully realize the benefits of this initiative and change deeply rooted work habits. Phased implementation, clear communication of use cases, innovative deployment strategies and solid training plans will all need to be developed by the new HQIT. HQIT should also be the “middle-out” launching ground for the sector-wide deployment.
The section begins by discussing the collaboration issues that the sector faces. A review of current collaboration systems support is presented next, followed by identification of the major improvement opportunities. The future business requirements and easy portal access to them is described, before available collaboration platform options are considered. While the functionality of the two major market offerings (IBM Workplace and Microsoft Sharepoint) is generally very similar, the Group opted for a formal systems selection during implementation to make the final choice, Price (driven in part by the availability of preferential pricing agreements negotiated with large vendors by MoICT should have a heavier than normal weighting in evaluation of commodity software offerings like collaboration platforms. Basic costings are then developed and risk factors discussed.
As far as web presence is concerned the sector has a site that is moving towards full compliance with the MoICT e-Portal standards. The beginnings of Government to Citizen (G2C) services are also available but there are probably unrealized opportunities to reengineer internal processes to better support these. Continuous upgrading of these services is largely an internal matter that does not require significant capital investment from donors or other outside sources. Close, regular and upwardly proactive coordination with the e-Government unit at MoICT is recommended.
8.7.2. COLLABORATION ISSUES
The sector currently faces a number of collaboration issues. The Group began their process by
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brainstorming these – from both a current and future perspective. The issues identified fall into four main categories and include:
Internal Communications
Email and instant messaging Remote access to internet, email and files Time management – shared calendar for meeting and event scheduling Contact management – shared contact list Task and resource allocation Use of intranet for sector news and events Net meeting and video-conferencing VOIP
External Communications
Internet access Remote access to internet, email and files e-Government portal e-Government G2C41F
42 functionality (G Work flow and correspondence management
Automated, pre-defined approval and routing processes for common procedures (e.g. leave requests) and memo.
On-line access to sector policies, procedures and forms Audit trail
Document and knowledge management
Sharing, working and commenting on, and approving of documents Knowledge management (capture of the “wisdom” in the sector before it retires) Provision of a search engine to find key content Control of access to documentation Multi-language capability – on-line dictionary and thesaurus
Not all of these issues need to be addressed immediately. In fact there is a good case for phased introduction of collaboration tools that address these issues. The sector has yet to demonstrate that it can absorb and use such tools proactively and widely. A number of barriers to such use are described below. But the overall and longer-term vision here is that the sector would move gradually towards a paperless office, with a “push” workflow culture, easy sharing of information and increased personal and organizational productivity.
8.7.3. AS-IS SYSTEMS SUPPORT
There has been some recognition of the collaboration issues in the sector, resulting in use of some collaboration tools (proprietary or in-house developed). However, user education has severely limited uptake of the more advanced applications, and the other tools are point solutions. To date there has been no attempt to implement and actively drive the use of an integrated suite of collaboration tools.
42 Government to Consumer
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Internal Communications Tools
The collaboration platform in use in the sector at this time is Lotus Notes. It is almost exclusively used as an email client, despite the fact that its integral Domino server can also offer advanced groupware features. Besides calendaring and scheduling, address book and other basic feature, Lotus Notes also has database, web server and programming capabilities. Knowledge of these advanced features is largely restricted to the IT Directorates, and there has been no recent or concerted effort to encourage much wider and deeper use, even though several applications have been built in the system. The update and maintenance agreement with the vendor has expired, and a major barrier is that the system has not been Arabized. Some employees elect to use free email services like Yahoo and Hotmail.
Workflow and Correspondence Management Systems
Jordanian law currently requires hardcopies of all key documents, including correspondence and internal memos, to be archived for legal and auditing reasons. While this may eventually be changed (such features are readily available electronically and can be made just as secure with appropriate back up and disaster recovery procedures), document management for now is overwhelmingly paper based. Whole “Diwan” departments are therefore dedicated to logging, tracking and archiving of documents using very basic software tools. The norm in the sector is to require a letter for even quite trivial internal requests and approvals. Approvals generally proceed at their own pace, with manual expediting if required. There is limited use in some departments of ImageLinks, an Arabic/English document capture and management system that also includes some basic work flow functionality, although the latter has really only been used in the PMU.
Knowledge Management
There is no electronic knowledge base at present, although again limited use of ImageLinks is being made in some departments. Instead multiple copies of paper documents are scattered all over the sector. Such documents contain valuable knowledge that needs to be shared with the water sector officials and other stakeholders. Those individuals may not always even be aware that a particular document exists. An initiative is in place to raise funds to create a water sector related document center that would archive all documents in the sector. However funding is not certain, and operational documentation and knowledge management would anyway fall outside of this initiative.
External Communications and Website Presence
The water sector currently has an informative web site at 210Hhttp://www.mwi.gov.jo. The site is bilingual. Under the MoICT’s e-Portal initiative, the site is moving actively towards a common look and feel with all Jordanian Ministry internet sites. However, content is not mirrored, server response is sometimes slow, and the site is not updated regularly.
Again under MoICT’s leadership, e-Government is well advanced at the strategy level but individual Ministry Plans are still being developed. In general the MoICT’s focus is on Government to Citizen (G2C) portals G2C, not yet Government to Business (G2B) or Government to Government (G2G). G2C initiatives in other Ministries have successfully driven internal process reengineering of service provision, very significantly improving customer service and reducing turnaround times (e.g. issue of visas and driving licences).
At WAJ and JVA, efforts are beginning to “e-enable” many customer-facing services. The functionality available currently through the MWI website appeared very limited however, and could not reliably be remotely accessed to review the functionality offered.
Upgrading and maintaining the sectors’ internet presence, and extending its e-Government services, is largely a matter of upwardly proactive coordination with MoICT, and compliance with e-Government standards and expectations as they are developed out in more detail by MoICT. Costs of doing these would be entirely funded internally as they essentially involve only staff support. Investments needs
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in this area are therefore not considered further.
8.7.4. MAJOR IMPROVEMENT AREAS
Collaboration as a concept is not addressed uniformly across the water sector – with MWI, WAJ and JVA all operating instead as separate islands. Although there is some common use of very basic collaboration tools like the Diwan software, in general the limited collaboration software initiatives are not well coordinated and there is no overarching vision of sector-wide collaboration.
Given that the three entities already share one network at the Headquarters building, a base for stronger collaboration in the sector exists that could easily be leveraged. Applying a unified collaboration across the water sector will help in creating a more efficient water sector. A gradual move to a paperless office will make the sector much more efficient, speed approvals, increase transparency and accountability, reduce costs of toner, stationary, and copier and printer maintenance as well as travel and lodging expenses, and, most importantly, achieve a much higher level of cooperation across the sector42F
43.
The following opportunities were highlighted by the Group: Reduce paperwork and speed approvals
Electronic forms: forms in common use – for example a vacation or leave request – could be made available through electronically, and completed on-line (as e-Forms), through a small number of self-service terminals on selected floors of the Headquarters building. The user interface here would be “ATM-style” with minimum data entry requirements driven by an employee number. Requests would flow automatically to the individual’s supervisor for electronic approval from their desktop. The individual requesting the leave would check back on the ATM next day for their approval - and receive a paper printout if necessary (again like an ATM slip).
Note that a review of the commonly used forms in the sector showed that many of these are HR-related and could perhaps be provided through the self-service HR module already licensed in the Oracle e-Business Suite. However, a more general and easily customizable e-Forms solution could have much wider use in the sector – and its incremental cost would also be very low as it comes as part of a full collaboration suite. Such a more general solution for example could easily support stores requests, in effect widening the electronic accessibility of the PO and INV modules.
Memos and correspondence: similar to leave requests these could all be prepared using standard Office tools and forwarded for electronic approval. Paper copy could be generated at any time on request, or routinely by the Diwan department if paper archives cannot be avoided. This will create a more efficient and transparent environment.
Work flow automation: All of the above functionality is driven by work flow automation. This will help the sector to specify, execute, monitor, and coordinate the flow of work within their environment according to the document routing required. This work flow functionality could also be used externally and tied to the e-Government services made available on the MWI web site. This would provide the basis for reengineering and streamlining many customer-facing processes. Work flow functionality has two main components:
- Workflow Modeling to enable administrators, leaders, and analysts to define processes activities and workflows, analyze and simulate them to
43 In this context, note that the simple act of bringing users and IT staff from across the sector in the ITMP Working Groups was widely recognized by the Group members themselves as beneficial. New and productive working relationships have been formed as a result.
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improve their performance and then assign them to specific individuals to oversee or participate in.
- Workflow Execution which provides the Work Flow engine to drive the coordination of processes and activities provide, and provides various forms of user interface including e-Forms and electronic messaging. All user interfaces operate under preset rules driven by the Work Flow engine.
As an example of the productivity increases that should be possible, the time requested to process a request an item from the supplies room would go down dramatically due to implementation of e-Forms and workflow. Currently, such a request usually requires 12 stages to be completed; with each stage done completely manually. Even if a better balance between control and efficiency cannot be struck, the time to process a supplies request can be cut drastically with much improved sector productivity.
These types of initiatives would likely be supported by the Government Performance Monitoring Unit in the Prime Ministry and there is an opportunity here for the water sector to show some leadership in increasing efficiency in the Jordanian public sector.
Communication and collaboration tools
Scheduling: this uses a Resource Allocation engine that will allow the water sector to book resources such as conference rooms, training rooms and other facilities electronically. The tool is fully integrated with users’ calendars, team sites (see below), and messaging systems. Meetings could be set up electronically with individuals’ availability checked in advance before a calendar entry is made in individual calendars and an email notification sent automatically to all attendees. Such systems can be used directly by the individuals or by their support staff.
Messaging: instant messaging and email offer real time communications for the water sector employees allowing different parts of the organization to communicate more efficiently. The appropriate method of communication is chosen by the user at the time of needing the communication – for example an urgent or small issue might be dealt with by instant messaging, whereas a larger issue that can be dealt with overnight, and requires a full audit trail, would use email. Email is a simple and effective messaging and communication platform that is used almost universally. If authorized as the principal form of communication instead of paper the sector would be much more efficient – without any necessary loss of audit trail.
Team sites and remote meeting: Team sites can be used to create virtual project teams that can collaborate and share expertise to resolve issues remotely and effectively. They are supported by remote meeting tools that use TCP/IP protocol to transmit voice and video over a network. Such tools would allow easier participation of AWC and NGWA in Headquarters Organizations projects, reducing the need for face-to-face meetings and helping to reduce travel and lodging expenses. In time this could be extended to video-conferencing.
Electronic Document Management: A Document Management System enables organizations to manage their documents in an electronic format. Typically a large number of documents are stored for subsequent retrieval. Document management systems commonly provide check-in, check-out, storage and retrieval of electronic documents. Electronic Document Management systems have three main components:
Archiving: Document are first created or fed into the system; then stored in a database and fully indexed by content, not just title, for fast retrieval.
Administration: Sector management will have administrative rights to fully control and secure document flow and ensure only authorized users have access to the documents within workflow and policies and procedures within the water sector.
Search and retrieval: A document management system must enable an authorized user to find and access a document with minimal time and efforts, thus helping the
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sector become more effective and efficient. A robust search engine merged with an user friendly user interface provides an easy and user-friendly way to do this.
451HFigure 8 below illustrates the document management system functionality:
Figure 8 - Document Management System Functionality
Policies and procedures: internal policies and procedures could all be made available on-line enabling easy distribution, reference and updating.
8.7.5. FUTURE BUSINESS REQUIREMENTS
Collaboration Suite
452HFigure 9 illustrates the structure of the collaboration suite that we propose be implemented across the sector:
Electronic Document Management System
Archiving Administration Retrieval
Feed
Store
Index
Control
Secure
Search
Access
Share
Ensure Return on Investment
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. Figure 9 - Proposed Collaboration Suite
The collaboration solution will be built on a stable database platform. All the solutions we have researched are database agnostic and allow use of most of the common databases in the market including Oracle, MS SQL, and MySQL. At the center of the solution resides a portal engine. The portal engine is the heart of the collaboration suite. Here all the collaboration suite components are driven and, as required, merged and integrated with other systems such as Oracle e-Business Suite Human Resources modules.
The portal itself is a user-friendly launching pad for employees in their day to day operations and provides access to elements such as e-Forms, document management, electronic correspondence, messaging, workflow and any other components identified above that are necessary to address the sector’s collaboration business needs. 453HFigure 10 below shows what our proposed portal might look like:
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8.7.6. BENEFITS IDENTIFICATION
A detailed benefits case for implementing a collaboration suite is very hard to develop – although elements of it can be quantified and estimated (see below). As widely-available market offerings, the benefits derived depend much more on the extent to which the product is ultimately used – and less on price and product features. Before attempting any quantification of benefits elements, the Group identified the main qualitative drivers that would help ensure a return on investment for a collaboration platform. The main drivers identified were:
Minimum (ideally zero!) cost Full and widespread use of the system by sector employees so that increases in personal and
group productivity result. This will require:
Easy to use, simple user-interfaces to encourage widespread use of the platform Appropriate training (continual, not just one-off) Change management to encourage use of the collaboration tools Policies and procedures to force use for certain workflows (e.g. all meetings and meeting
facilities can only be booked through the collaboration platform) Communication of the benefits of use – with practical examples
Security – since all users must know the system is secure
In effect, these drivers are critical risk factors that must be mitigated to ensure a return on investment.
8.7.7. VOICE OVER INTERNET PROTOCOL (VOIP)
VoIP uses internet technology to merge and integrate the data network with the voice network. It provides free voice communication for everyone that is connected to the same Wide Area Network. This has the potential to completely eliminate the need for landline based telecommunications voice networks (at this point in time mobile VoIP solutions have only very limited availability). VoIP can be integrated with other messaging platforms such as email and instant messaging; thus providing a better communication network VoIPs major advantage is in reducing international call costs. However special phone sets are required and at this stage of the technology they are still expensive. The two major providers of VoIP are Avaya and Cisco - both provide similar capabilities and are very comparable.
The Group discussed the merits and costs of implementing VoIP.in the water sector. Analysis of annual phone bills (see the business case in Volume II) did not give a clear business case for implementing VoIP. The high costs of VoIP handsets and the relatively limited international calling within the sector does not support a business case for VoIP. The Group discussed whether a phased implementation might enable a stronger business case, but the high initial fixed costs still make this doubtful. Ms. Ruba Kajo, our MoICT representative was not aware of any plans to explore VoIP across the Jordanian public sector. VoIP was not considered further but should be re-visited when the ITMP is updated in 3-5 years time, as handset prices will have reduced substantially by then.
8.7.8. EVALUATION OF AVAILABLE COLLABORATION PLATFORM SOLUTION OPTIONS
The Group examined three different proprietary and well known collaboration platforms: IBM Workplace – which includes as its email and groupware platform Lotus Notes/Domino MS Sharepoint43F
44 – which uses the Outlook Exchange platform
44 Note that WAJ has been actively exploring use of the Sharepoint platform.
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Oracle Collaboration Suite44F
45
The market is overwhelmingly dominated by the first two products – with the market analyst IDC estimating MS in late 2005 as having about a 50% share, and Lotus a 40% share. Oracle’s share at that time was 0.3% but this may have increased somewhat following a new release of their product and cheap introductory pricing. However the MS and IBM products still dominate the market by far. A number of open-source applications are also coming into wider use and these should be re-examined during formal systems selection for their potential use.
Broadly speaking the three major market offerings provide very similar functionality – with email, calendar and contact tools as well as groupware, document sharing and web conferencing. Lotus Notes with its additional groupware, web server, database, developer and programming capabilities will require a more technically able IT support. For e-Forms and work flow, the IBM and MS products are competitive and fully cover the business needs. However, Microsoft uses third party products to close the business cycle while IBM provides a total solution. The security features of the IBM product are also considered somewhat stronger.
Against that technical advantage, a high weighting should be given to price when selecting commodity software (as opposed to specialist systems like asset and maintenance management where technical functionality varies much more). Both the Microsoft and Oracle solutions are covered by MoICT national pricing agreements. While the limited market presence of the latter raises questions over its suitability, pricing is likely to be a significant advantage for the MS product.
Demonstrations of both the MS and IBM solutions were arranged by the Groups. However, the Group was enable to agree on the relative merits of the two products and recommends that normal best practice of a formal systems selection be followed.
Note that MoICT’s Collaboration suite is based around MS Sharepoint and also uses some third party plug-ins. At present there is no comprehensive collaboration suite in operation at MoICT. Collaboration features will be included in the proposed GRP initiative.
8.7.9. COSTING
Total Cost
Our total cost estimate includes the portal engine with all the required collaboration features, perpetual licenses for email, and improvements to email infrastructure and hardware. The e-Form generator is part of the portal engine in the Sharepoint software purchased last year by WAJ but not yet implemented. Additional software will need to be purchased to act as middleware between the client and the server. After inclusion of other costs such as hardware costs for the self-service terminals and 3 years support and maintenance, the total cost of the Collaboration initiative is around $190,000.
8.7.10. BUSINESS CASE
For illustrative purposes, a business case for a paperless office is included in Volume II. Savings in paper and toner are examined as well as savings in personnel time. Note that the latter only has value if staffing levels are reduced accordingly (likely through attrition) or redeployed to more productive duties.
45 Note that the Oracle Collaboration Suite is a standalone product that is distinct from some of the collaboration features already included in the Oracle e-Business Suite (mainly workflow modeling and workflow engine to model, optimize and manage the business processes covered by the Oracle e-Business Suite modules themselves).
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8.7.11. RISK FACTORS AND THEIR MITIGATION
Even though the total investment here is small, achievement of a return is still a priority – even moreso given its high sector visibility. The key risk factors are described below.
Ensuring Return on Investment
Clearly if the collaboration platform is implemented and very few staff use it, the benefits will be very small. It is therefore important to develop use cases that can be easily adopted and their benefits readily understood and communicated across the sector. A phased “middle-out” implementation is recommended – starting with the new HQIT organization, reaching out to IT departments in the Operating Utilities, then extending to middle and senior management in the Headquarters Organizations, followed finally by wider deployment to lower levels of staff for self-service e-Forms use. Benefits of implementation should be broadly communicated as they accrue and examples of specific success stories publicized in each functionality area.
Strengthening Computer Skills
Not all potential users have even the basic computer skills needed to take full advantage of the collaboration suite functionality. In some cases, this means more senior staff as well as more junior staff. This is quite typical in many organizations. Often the initial solution for senior staff is providing them with a dedicated and fully computer-literate secretary. Over time though, senior staff usage will increase naturally. For junior staff, a number of basic computer literacy courses are available which could be offered by the Training Department as indeed some already are. Self-service terminals should be designed to require little or no computer skills.
Deployment for Cost-Effective Access
In an ideal world, almost all sector staff would have access to the collaboration tools. In practice this is unrealistic and appropriate and cost-effective strategies to deliver access must be developed. Most professional and professional support staff already have desktop access so deployment to the user group that can extract the largest benefits is straightforward. As stated above, self-service terminals located strategically within the Headquarters building and Operating Utilities headquarters can readily extend access to more junior staff for e-Forms access.
Importance of Proactive Coordination with MoICT
Continuous and upwardly proactive coordination with MoICT is recommended on the collaboration suite. As MoICT plans unfold, there are likely to be opportunities to either leverage new initiatives or learn from their experiences and someone within the new HQIT should be expressly responsible for such coordination.
8.7.12. TIMING OF IMPLEMENTATION
Implementation of the collaboration suite is one of the earliest ITMP components. This is because of the need for the new HQIT to begin to immediately leverage its potential, and because of the broad reach of its benefits. Development of detailed functional specifications, systems selection, and program management of implementation here is also relatively straightforward – so this implementation will provide an ideal proving ground for HQIT to hone its new program management skills.
HQIT will however have to give careful thought to, and prepare detailed plans for, use cases and deployment strategies to ensure a return on investment. HQIT will be accountable for achieving that return – so indicators and monitoring processes (in this case largely input based) will need to be included in the planning. HQIT will also need to take on the communications role to broaden awareness of the suite and its impacts on sector productivity, and provide technical training to those who specifically require it.
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8.7.13. USAID’S POTENTIAL ROLE
USAID’s support of this initiative is low-cost, low-risk, easily contracted locally, and potentially high return if appropriate monitoring and check points are designed into the implementation. The technical assistance to the new HQIT organization will enable support and oversight of the selection and implementation process.
8.8. Infrastructure, E-readiness and E-Government
8.8.1. EXECUTIVE SUMMARY OF WORKGROUP RECOMMENDATIONS
Infrastructure investments usually follow systems investments that are defined by real business needs – since they enable the systems investments to be deployed. With the increasing move to web-enabled applications (even in the case of in-house developed specialist systems), network infrastructure and its management will become more important to the sector.
Generally, the backbone IT infrastructure of the sector is adequate for current and future needs and bandwidth can easily be expanded as required under operating budgets. Longer term there may also be an opportunity to leverage the MoICT’s fiber optics infrastructure investment under the Ministry of Education’s Jordan Education Initiative.
In the short-term however, there are some specific upgrades to the headquarters LAN that need to be completed to support future expansion and improve sustainability and performance. A comprehensive program of LAN/WAN and associated hardware upgrades covering remote locations was also defined – with the improved connectivity being a key enabler of the supply-chain benefits discussed above, as well as making backbone systems and collaboration tools available across all sector sites. There are also significant opportunities across the sector to standardize and better utilize hardware investments.
Additional funding requests from NGWA – primarily for additional hardware in the Regional Offices, support for hand-held meter readers, and implementation of a NGWA call center – were received after the formal closure of the Working Group process. These estimates were developed with input from the Severn-Trent management consultant with the aim of improving customer service, increasing cash collections, and reducing collections costs. While detailed due diligence on the need for, and costing of, these requirements could not be completed within the ITMP timeline, the incremental requirements have been added to the ITMP costing. They should however be reviewed in detail by HQIT before any procurement is initiated – and such review should include possible duplication with infrastructure upgrades carried out under the GMED and BMFO projects.
In addition, requirements for appropriately scaled and scoped but essential investments in both Infrastructure Management Tools and Application Lifecycle Management Tools are discussed.
Finally, e-Government initiatives, and their relevance to the ITMP, are also discussed in this section.
8.8.2. AS-IS IT INFRASTRUCTURE
Backbone Communications Infrastructure - WAN
The existing communications backbone for the water sector is built over widely-used frame relay technology provided by Batelco, a local telecoms and internet services provider. This is a blind network that functions as a packet transmitter providing a secure and reliable Wide Area Network. Frame relay is one of the most cost effective WAN designs for data transmission for intermittent traffic between local LANs and between end-points in a WAN.
Frame relay puts data in variable-size units called "frames" and leaves any necessary error-correction up to the end-points. This speeds up overall data transmission. For most services, the network provides a permanent virtual circuit (PVC), which means that the customer sees a continuous, dedicated connection without having to pay for a full-time leased line, while the service-provider figures out the route each frame travels to its destination and can charge based on usage. Frame relay is not generally suitable for voice or video data transmission.
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Frame relay networking is fully scalable depending on the ISP capabilities. When more bandwidth is needed, the ISP will increase the bandwidth limit. It is simple process that does not require any major new capital investment in backbone infrastructure, and is met instead from operating budgets.
Remote Site LAN/WAN connectivity
A number of remote sites exist across the sector (see Volume II for a full list by site type). They include Area Directorates or Regional Offices, other Customer Service locations, Central Labs, Remote Stores, Workshops, Treatment Plants, JVA Stage Offices, Dams and major Pumping Stations. The importance of LAN/WAN connectivity at these sites depends on the type of business processes carried out there, and the volume and frequency of data transfers to and from the site.
Many of these remote sites are connected to the sector’s WAN through the backbone frame relay system. While most of these sites also have the hardware to connect to the WAN, many of the connection have not actually been activated, apparently because of breakdown of management communications. (It is not uncommon in parts of the sector to have a surplus of unused hardware – this issue should be eliminated completely under the new HQIT initiative). Most of the remote offices also have at least a primitive LAN, but this may have been installed by a semi-IT-technical individual such as a mechanical engineer who happens to work at that remote location. As a result, at these locations, the number of LAN outlets may be inadequate, outdated and non-standard technology is in use, speed may be inadequate, security (both physical and network access) and data backup procedures are weak, and a variety of different communications protocols may be in use. A small number of remote locations have no LAN, or they have a LAN but either no WAN connection or just a dial up line.
Most of the remote locations do not have a proper server room or cabinet, and proper design and operating documentation is often missing. The LANs operate as isolated islands and do not communicate with each other. Remote locations will also need basic Infrastructure Management Tools (IMTs). While these could be provided centrally, the Operating Utilities may choose to deploy their own solutions.
Finally there is a serious shortage of qualified staff in remote locations. Most of the work is done manually and applications if present at all are very basic. There is little or no integration of remote applications with centralized systems (even between remote stores and the Oracle e-Business Suite INV module. WIS seems to have most coverage in the sector, but no real time integration is present.
Desktop Computers
In general the sector has up to date desktop computers. Most of the new desktops are located at the center and at the independent Operating Utilities. A total of some 800 desktop computers are deployed across a sector with some 8,600 permanent staff. The sector has a wide range of desktop computers distributed as follows:
The sector has a wide range of desktop computers distributed approximately as follows: Pentium IVs account for 80% of Headquarters machines and 70% of Operating Utilities machines
but only 15% of remote WAJ and JVA sites Pentium III’s account for 10% of Headquarters, 20% of Operating Utilities, and 30% of remote
office machines Older machines make up the remainder in each case – meaning 55% of remote office machines
are older than Pentium IIIs
Over time, newer desktops do find their way to the remote sites as brand new ones replace them elsewhere.
There is no standardization in terms of the software being run and many computers are not running basic utilities like anti-virus or firewall software.
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Servers
WAJ has the most up-to-date and consolidated servers as they have recently acquired blade servers (multiple servers housed in one chassis with dedicated management systems and power supplies). The WAJ blades are installed, but only 2 out of 11 servers are activated. Proper utilization of the new blade servers can be ensured by the new HQIT – this would save the sector a significant investment in servers as the blade servers are very powerful and leading edge.
Generally however, the sector is running on much older servers, even at the Operating Utilities. More than 50% of the servers are more than 2 years old. The server network for the sector will need a major upgrade under the ITMP because we will be deploying new and demanding applications. Server upgrades should generally be determined at the time of application implementation but in the meantime there is certainly an advantage to standardizing and consolidating server types. The number of types has multiplied because of GoJ procurement regulations emphasizing least cost. Procurement under the ITMP can therefore focus on standardization as well as cost.
MWI is currently using old desktops as servers – this needs to be rectified quickly and the servers consolidated. Such consolidation would save the sector money and help to create a network that is stable, fully scalable and highly available.
Infrastructure Management Tools
Infrastructure management tools support a wide variety of systems functions – from monitoring the operation and performance of networks, servers and other hardware, allowing IT administrators to manage the systems configuration (e.g. for security reasons), to deployment of software. Other tools support IT asset management and help desk support.
Currently, the sector’s infrastructure management is purely reactive. Network managers are constantly fighting fires and have very limited tools and resources to anticipate and troubleshoot problems. The sector has acquired the basic Network Node Management module from HP’s OpenView infrastructure management suite. However the module has not been fully activated and the training provided during implementation was inadequate. It therefore does not add much value at this time – and highlights the issue of choosing solutions appropriate to sector needs and capabilities, and again program managing implementations to ensure training is adequate and real skills transfer occurs.
A very basic help desk system was developed under Lotus Notes. It provided a tool to request technical support and follow up on such requests. The system was developed in association with a USAID funded project “WQICP – Water Quality Improvement and Conservation Project” and deployed sector-wide, but, except in the PMU, has not been utilized since 2000. Its use is limited by the Lotus Notes platform not being Arabized, and by the user-friendliness of some of the screens. Similarly a computer inventory system “Clicknet” was deployed but again has not been used since 2000. This has now been decommissioned due to lack of technical support.
Other
Other points relating to As-Is infrastructure include: The sector has a wide array of networking and communication devices – their performance being
dependent on the experience of the individual staff using it. At Headquarters Organizations and in the Operating Utilities, where most of the experienced employees are, In the center, there is generally good utilization of infrastructure. In remote locations, equipment has often been deployed but has either not been activated or is no longer in use.
The sector has also acquired printers, scanners, and hand held devices, and some water meters now use GSM technology for automatic meter reading. Expensive resources such as plotters are scattered throughout the sector. Such devices should be standardized, inventoried, and made more widely available where needed across the sector.
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SCADA infrastructure has been deployed in many locations across the kingdom with particular focus on the King Abdullah Canal in the Jordan Valley and in Amman. A comprehensive nation wide SCADA plan is being prepared by the PMU, and HQIT will need to coordinate with this plan.
There is no a comprehensive disaster recovery plan – only manual tape backups happening largely independently across the sector.
IT human resources vary widely in their skill level. Proper training and knowledge transfer plans have to be established – this will be a major thrust of the new HQIT initiative.
8.8.3. MOICT INFRASTRUCTURE PLANS
As in a number of other areas already discussed, it is important when planning infrastructure upgrades to consider MoICT’s plans. The two most important infrastructure initiatives are:
Secure Government Network
The Secure Government Network is a government initiative that will route all government electronic communication through one data center. The project is using Microsoft technology and is expected to fulfill the needs of the whole government within the next two years. Its scope is however limited to Amman.
Communications Infrastructure
As part of the Jordanian Education Initiative, MoICT is connecting over 3,000 schools, learning centers, colleges, and universities across the kingdom through a fiber optic network over 5,000 km in length. This network will be owned and operated by the Ministry of Education. Potentially, negotiating access to this geographically extensive network could save the sector future capital investment in expanding their communications network.
8.8.4. MOICT AND E-GOVERNMENT PLANS
e-Government is a National Program initiated by his Majesty King Abdullah II. The purpose of this program is to enhance the performance of government in terms of service provision, efficiency, accuracy, time and cost effectiveness, transparency, high level of customer satisfaction, cross-Governmental integration, and many more elements related to the style in which the GoJ works and the public’s perception of this.
e-Government Portal
MoICT’s e-Government unit is designing a government portal that will connect citizens, businesses, and government together. The vision here is that the portal will act as a one stop shop for all government services. A citizen will be able to contact and connect with any government official electronically and transparently in order to settle business with the government. The portal will be supported buy a payment gateway that will enable the settlement of financial issues online. The water sector can elect to serve clients directly through the MWI portal or they can connect through the general government portal.
GRP Software
MoF, MoPIC and MoICT are all involved in the planning phase for selecting and implementing a Government Resource Planning (GRP) system. Jordan’s Integrated Technology Group (ITG) has already deployed Phase One its GRP solution, WaveGRP™ at the Jordanian Ministry of Tourism & Antiquities. The goal of the GRP system is to connect the financial operations arm of each government office back to the Ministry of Planning. Such an initiative will help create more transparent and efficient government operations. Given that the water sector is already implementing Oracle Financials there will be a need to examine how this system integrates with the planned GRP –
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though this is unlikely be a big issue and could potentially be leveraged into the Budget Preparation support needs identified by the Back Office Group.
Other
The e-Government program is also sponsoring a multitude of initiatives to enhance the competitiveness of the Jordanian economy and the IT sector. These include continuous training and rehabilitation of the government workforce and increasing the operational efficiency of the different government offices all over the kingdom.
8.8.5. OPTIMUM IT ARCHITECTURE FOR THE SECTOR
The networking infrastructure architecture provides another essential foundation for the ITMP. Just as the HQIT addresses the human resources and capacity building needed to ensure the success of the ITMP, the network infrastructure is needed to assure maximum access and availability to applications as needed across the sector.
An optimum IT architecture that is proposed is shown in 454HFigure 11 below.
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Figure 11 – Proposed Architecture of the sector’s network
The proposed architecture adheres to industry security and quality standards including ISO 17799 and Information Technology Information Library (ITIL). It will continue to be based over a Frame Relay network - but one that now connects all entities together. The secure intranet will allow full integration of all applications and resources in the water sector. The collaboration solution (described in the previous section) will reside on the intranet as will other systems such as EIS.
The proposed architecture will be built to assure high availability of all applications and resources on the network. Single point network failure will be eliminated. The network design will utilize stringent security measures, isolating the intranet from outside dangers such as hackers. The public will not be able to access the sector’s network except in a controlled manner and on specific segments of the network known as demilitarized zones (DMZs).
Hardware and software solutions will be in place to detect and stop intrusion attempts, viruses, spam and any other threat that may affect the network’s performance. Such solutions will be deployed wherever necessary on the network, such as on internet gateways and between the entities and the headquarters.
8.8.6. CRITICAL INFRASTRUCTURE NEEDS
The Group identified four main infrastructure upgrade components. Each one is described below:
Headquarters LAN Upgrade
Additional detail on the As-Is situation at Headquarters is provided first, before describing the upgrades that are required below:
LAN
The Headquarters LAN is currently shared between all entities at the head quarters, and managed by Mahmoud Shloul. The LAN has now reached its full capacity in terms of the number of ports it can support. The network backbone switch that connects all the ports across the two adjacent
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Headquarters buildings is a layer 2 switch with a very limited number of ports and limited expandability.
On the plus side, the HQ LAN is interfaced to the internet through a hardware firewall box that provides full protection and servicing including
Anti Virus Anti Spam Intrusion detection and prevention Packet filtering Main relaying
Server Room
The power supplies and backup Uninterruptible Power Supplies (UPSs) for the main server room are not sized or stable enough to adequately sustain the hardware and systems at the Headquarters. Operational conditions for the main server room are also not up to international standards for the following reasons
Air-conditioning is inadequate for current needs Physical security and access rights are weak – there is no controlled access system and the server
room is not locked at all times Server room floor space is not adequate - parts of the server room are in fact used as staff
workspace Power and data hookups are substandard and need upgrading The server room does not have clear labeling and its configuration is not adequately documented.
Servers
The HQ LAN is managed by two non-clustered mid-range servers with insufficient fault tolerance. Two proxy servers are installed on top of the LAN to control internet access for all entities. One of the servers is a Pentium II desktop with very limited functionality. The front end servers are Pentium IIIs – again with limited fault tolerance. There are two mail servers - one for the sector and one for the PMU. One of these servers is new and the other is a Pentium a PIII. Again the design lacks redundancy. Applications servers support a wide range of applications at the Headquarters. Some of the application servers are Pentium II desktops, while others are premium blade server components.
Improvements Needed
The improvements recommended to the Headquarters LAN are summarized in 455HTable 12 below:
Item Justification Remarks Network outlets To add new key users to the LAN to improve their
productivity and share information and expertise.
Replacement of the current backbone layer 2 modular switch
To cover the existing needed ports for servers on the backbone, enable future expansion, and support VLANs to improve performance and maintain LAN sustainability through “layer 3 protocols”
The existing switch can be used elsewhere in the sector or traded in.
Upgrade server room To control servers access and ensure good operational conditions to avoid any faults
UPS for all Telecomms Cabinets To provide enough power for communication device to allow data recovery
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Item Justification Remarks Internet speed To improve the speed of communication with the
internet to normally accepted international standards
Firewall system To protect the LAN from hackers, viruses, spam, and any other source of intrusion
Training To enable local staff to manage the LAN professionally
Table 12 - HQ LAN Upgrades
The total costs of these upgrades are estimated at $0.21M.
Implementation Risks
HQIT will install and run the new Headquarters LAN – so there should no risks here.
Remote LAN/WAN upgrades (including associated hardware upgrades)
The As-Is situation here was described in some detail above. The suggested improvements are listed below:
Potential Improvements
Install standard LANs to normal professional standards where needed – including locations currently running legacy or sub-standard LANs
Provide WAN connectivity for remote sites where justified by the business needs – this should be a priority for locations that already have the communications hardware installed
Upgrade servers, server rooms and cabinets and desktop computers as appropriate Provide end user training
Estimated Costing
After carrying out an extensive inventory of existing remote site LAN/WAN connectivity and hardware, with very detailed inputs from JVA, NGWA and LEMA in particular, the total estimated cost of required remote site LAN/WAN and associated hardware upgrades is just over $1.1M.
Justification
The remote site upgrades are justified on the basis of making the collaboration tools and backbone applications available to all sites. In addition, upgrades at remote store locations will be critical to realizing the substantial supply chain benefits identified above in Section 456H8.3.
Additional hardware requests from NGWA
Additional incremental hardware requests were received from NGWA after the formal closure of the Working Group process. These were developed with input from the Severn Trent management consultant. They have not been subject to detailed due diligence by the Group, but have been included in the overall ITMP cost nevertheless. These requests should be reviewed in detail by HQIT before any procurement is initiated – and such review should include possible duplication with infrastructure upgrades carried out under the GMED and BMFO projects.
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Infrastructure Requests
New file, printer and domain servers in the Regional Offices plus additional PCs and associated peripherals
Server upgrades at the NGWA HQ office Incremental licenses for basic software installs required for the above - including antivirus,
firewall and anti-spam Installation of a call center at NGWA HQ – plus associated telecoms infrastructure and
interfacing to the legacy billing system Provision of handheld meter reading units and their interfacing to the legacy billing system
Justification
The remote site upgrades above will significantly improve customer service, increase collections and lower collections costs – in addition, again, to making the collaboration tools and backbone applications available to all sites.
Estimated Costing
NGWA’s cost estimate for this additional infrastructure is $0.7M.
Infrastructure Management Tools (IMT)
Current Situation
The As-Is situation here was described in some detail above.
Justification
An adequate suite of infrastructure management tools is essential for smooth operation of the LAN, WAN, servers, desktops and communications components in the sector. Such tools enable real-time assessment to enable predictive maintenance in anticipation of network bottlenecks. High availability of systems across the sector is essential – particularly for billing software, email and web services for example. IMTs will also be needed to manage rollout of more systems and systems upgrades across the sector. Deploying the ITMP systems components without proper IMTs could significantly impair their usefulness – especially given that most of the new applications will be web-enabled.
Recommendation
While IMT’s are clearly essential to the sector, we do need to find an appropriate balance between functionality and price and invest wisely as the price tag on such tools can very expensive. IMT suites can range widely in price according to the vendor who makes them and the capabilities provided. cost range for such a solution highly depends on the capabilities of such a system. Prices can range from $50,000 to $4M. Without further detailed study, it is difficult to estimate the costs of the requirements here. Independent specialist analysis is probably required to develop such estimates and this could readily be done at implementation. However, the group accepted that an investment of the order of $300K would be a significant step in the right direction – especially given the plans above to upgrade the network anyway. This would cover all HQIT infrastructure responsibilities – i.e. the Headquarters LAN and the WAN up to the Operating Utility’s firewall. The tools could also be made available to Operating Utilities if preferential licensing could be negotiated.
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Application Lifecycle Management Tools (ALM)
Current Situation
Although these tools do not strictly fit under the Infrastructure Group, having robust applications and maintaining their integrity through successive customizations and upgrades is just as important as maintaining network and communications infrastructure performance. This is especially true given that the sector will continue to need in-house developed systems, and these will now need to be routinely integrated with Oracle e-Business Suite modules. Currently the sector has neither standardized procedures nor supporting tools for application lifecycle management.
Justification
In order to bring standard processes, rigor and discipline to all aspects of software development and maintenance, it is important to establish appropriate policies and procedures. This point was made clear in the IT Organization discussion where the importance of referencing international standards was made. ALM tools complement these international standards in the same way that IMT would complement network and infrastructure management policies and procedures. The functionality included in ALM tool suites covers requirements management, configuration management, process and change management and IT project management. The newer tool suites are now also able to support and track Oracle e-Business Suite configuration changes which will be increasingly important also going forward.
Recommendation
An appropriate initial investment in ALM tools is estimated to be around $150K based on 20 users. Packaged solutions are readily available with low implementation and support costs.
8.8.7. COSTING ASSUMPTIONS
Inclusive of hardware, software, implementation and support costs the total cost of the infrastructure component is estimated at
8.8.8. IMPLEMENTATION RISKS
Implementation Risks
Based on past experiences, the main risks appear to be over-investment and under-use. The establishment of the HQIT and its effective management of both systems specification and selection and implementation and support will be the main way to mitigate this risk. Training in all the skills and tools involved in infrastructure management (and applications management) is an integral part of the HQIT proposal.
Implementation risk is also high in the case of IMT. Implementation should only be done by very highly qualified professionals. A previous attempt to acquire such tools failed because of under qualified installation engineers. To further mitigate risks, the implementation should be phased and rolled out on a modular basis according to prioritized needs. This is fully consistent with a phased investment in such tools.
8.8.9. TIMING OF IMPLEMENTATION
The importance of infrastructure upgrades as a foundation for other ITMP components means that this component is also one of the first to be completed under the plan. The Headquarters LAN upgrade is becoming urgent, and the remote site LAN/WAN upgrades are fundamental to extending the reach of applications and in particular realizing some of the benefits identified in the supply chain area. Similarly early embedding of both IMT and ALM tools will support the development of the foundation policies and procedures needed by the new HQIT. Lastly, with the exception of the IMT, infrastructure upgrades are generally straightforward and the program management burden on the
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HQIT in its early post-consolidation days will still be manageable.
8.8.10. POTENTIAL USAID INPUTS
USAID’s direct involvement in this component is important to facilitate standardization of hardware items that is difficult to achieve under GoJ procurement rules. Procurement could be done in this case under Geographic Source Code 899 which would allow both local and US-based procurement.
9. OTHER IT COMPONENTS NOT INCLUDED IN THE MASTER PLAN
A number of other IT components common in water sector operations were not identified as real priorities in the development of the ITMP, either because they are relatively small investments, require extensive specialist technical or engineering knowledge to develop them, or other projects are already extensively supporting them. The focus of the ITMP is on where to invest to achieve maximum return in absolute JD terms.
Specific areas that were not developed include GIS, SCADA, Laboratory Information Management Systems (LIMS) and hydraulic and network modeling tools. A SCADA master plan for WAJ is under development by the PMU funded by the EU, and the extensive SCADA systems for JVA’s management of the King Abdullah Canal are performing well though require some hardware upgrades which have been included in the ITMP Infrastructure component.
Hydraulic and network modeling tools are generally used by outside consultants for specific engineering studies. While some internal capacity to use these tools already exists and could be extended, the investments required are small and require specialist inputs that were not available to the project team.
The LIMS is a critical system for ensuring water quality and compliance with environmental standards across the sector (especially following centralization of the labs). The current system was supplied by Applied Bio Systems, a leading vendor of LIMS systems. It was implemented in 2001/2002 and uses an Oracle database. There appear still to be bugs and support issues with the new LIMS, which are clearly operational issues.
Other key issues include difficulty in uploading of historical data from other systems and labs (often necessitating patches), lack of appropriate integration with GIS, the need for development of sector-wide coding systems, and the need to develop one centralized database of water quality data with sophisticated reporting tools to analyze and manipulate that data. LIMS tools primarily manage the handling, processing and analysis of samples, and are not sophisticated data management tools.
Many of these issues are operational or institutional and are therefore considered outside the scope of the ITMP. The GIS integration issue should be addressed as part of a Working Group discussed below.
When the ITMP project selected the investment components it would detail, based on the Consultant’s as-is recommendations presented at a workshop in December 2005, GIS was identified as a backbone system for the sector. However, recognizing ongoing support of GIS by both the EU through the PMU and GTZ, the ITMP Steering Committee agreed with the Consultant not to include GIS as an ITMP component for further detailed. The GIS representative on the ITMP did express some concern over this decision – recognizing that the ITMP represented an opportunity to rejuvenate and better coordinate GIS initiatives. However, no GIS Working Group was established.
In March 2006, at a meeting in Aqaba, the Steering Committee questioned the progress and achievements of the sector’s GIS initiatives. Specific issues related to the organizational roles and responsibilities that the proposed HQIT should play in relation to GIS, to the apparently stalled efforts to establish a sector-wide GIS clearinghouse, and to the need for a larger vision of GIS that goes beyond viewer type applications to support systems integration across the sector to provide a spatial dimension where needed to improve planning, performance, and oversight of the sector. The Steering Committee requested that a follow-on Working Group be established (likely under USAID funding as
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an early part of the ITMP implementation phase) to address this issues. The Consultant was asked to develop a Terms of Reference for the proposed GIS Working Group – which is attached as 457HANNEX 8 – GIS WORKING GROUP TORS.
10. PHASING OF COMPONENTS
In recommending an appropriate phasing of the ITMP components, there are many factors to balance and trade off including:
Front-end loading as many components as possible that bring large benefits to the sector Quick win opportunities Front-end loading ITMP components that enable other components (e.g. Infrastructure and source
systems essential to the EIS) Management capacity of the HQIT to cope with a high workload from overlapping component
implementation
458HANNEX 9 – PHASING OF ITMP COMPONENTS provides an overview of the suggested phasing of each ITMP component. Essentially the ITMP is a series of investments over a four and a half year period that, if implemented well, will reap performance improvement benefits for the sector. We recommend that the ITMP be revisited every 3 – 4 years by the HQIT organization as sector needs evolve.
The HQIT technical assistance provides the foundation which runs through the entire program. The first components implemented are relatively straightforward hardware and networking infrastructure improvements, and implementation of an off-the-shelf collaboration suite. Implementation of these can begin even alongside the comprehensive training and capacity building program which continues into 2008.
Various Back-Office systems will be implemented next. The Legal application leverages the Collaboration Suite and is therefore an obvious starting point. HRM and Project Management applications can be centrally deployed, and will likely be custom-built in conjunction with an outside vendor who is experienced both in Oracle e-Business suite implementations and in design of custom-built solutions that are tightly integrated with that suite. Recognizing their importance to the effective operation of the new HQIT, we suggest that vendors be approached early to provide proof of concept and a small scale pilot application for early deployment at HQIT. This can then be evaluated and improved for broader rollout. Budget Preparation and Lands are likely the two most complicated components of Back Office and may need to be developed last when the management capacity, program management and QA skills have reached acceptable levels in the HQIT. Given the Lands system is core to JVA’s operations, there may be a need to identify some short-term fixes here as an interim measure. This was anyway recognized as a possible solution option here.
By this point, corporatization of the HQIT should have been achieved, and the problem of staff sustainability fully solved. The staff training program will be complete and the HQIT will have both the broad and deep management and IT skills needed to take on the remaining two major initiatives.
The first of these is the sector-wide implementation across all Operating Entities of a comprehensive Asset Management-Maintenance Management system that is tightly integrated with an optimally configured set of Oracle Supply Chain modules. The second is the detailed design and implementation, primarily across headquarters organizations, of the Executive Information System. The latter will require extensive preparation work – both on data flows and sources and on preparing headquarters staff for its effective use in performance management. As discussed under the EIS component, there may be some advantage in early procurement of the BI tool to support advance efforts on EIS development using non-HQIT staff. This could help solve short-term issues with for example WIS/WMIS/Project Database integration.
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11. CONSOLIDATED COST ESTIMATES
11.1. Assumptions
Cost estimates for technical assistance components have been estimated using standard USAID costing principles, rates and multipliers applicable under the current SEGIR II IQC contracting vehicle. Since all other ITMP components are routed through the HQIT Organization technical assistance, they are therefore subject to normal USAID G&A markups. No contingency is applied to the HQIT component.
The costs of other ITMP components have been estimated using standard IT costing benchmarks and vendor inputs. 15% contingency has been added to the labor, ODCs and G&A subtotal. This is considered appropriate given that final costings will be dependent on development of detailed functional systems specifications and formal selection of the best vendor.
Costs are stated throughout in 2006 dollars – i.e. there is no allowance for inflation
11.2. Cost Buildups
459HANNEX 10 – ESTIMATED FUNDING NEEDS BY COMPONENT presents cost estimates in summary form by ITMP component by year. Each cost element is estimated by calendar year, allowing consolidated funding requirements to be derived by year for USAID budgetary and programming purposes.
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12. OVERALL ITMP BUSINESS CASE
The overall business case for the ITMP is summarized in 460HANNEX 11 – OVERALL ITMP BUSINESS CASE. This aggregates the benefits streams where these have been quantified, discounts them further to correct for the fact that some components are not implemented immediately, and then compares the result with the PV of the ITMP disbursements.
A conservative discount factor of 10% is applied. This represents the opportunity cost of money provided by the government sector or the donors. In reality this is likely to be much lower than 10%, confirming our conservatism. Note also that ongoing support costs (widely perceived as a major issue in the sector) have been factored in appropriately. They are readily absorbed if the benefits of the systems implementations are fully realized and the sector’s belief that these are a barrier is shown to be unwarranted.
The ITMP is shown to have a net benefit of $7.1M based on the conservative assumptions used throughout. Significant additional benefits that cannot easily be estimated would accrue from other ITMP components such as EIS, Lands, Budget Preparation, and Legal, as well as the Collaboration Suite.
Note that the AM-MM-Supply Chain initiative alone covers almost 80% of the ITMP costs. While the major portion of these net benefits (from our individual component analyses above) derives from the Supply Chain portion, the two initiatives are interlinked and will reinforce one another in reality. CIS/Billing tips the balance of the ITMP firmly to the net benefit side. However, the benefits need to be captured during or possibly soon after the X7 implementation.
13. SUMMARY OF QUICK WINS POTENTIAL
The largest and most immediate quick win lies in improving the rollout and implementation of the X7 CIS/Billing System, largely through coordinating process improvement and institutional changes. However, unless robust program management and process skills can quickly be allocated within the sector, this quick win is “at-risk”.
Implementation of the Collaboration Suite is another significant quick win – although its benefits will have to be phased in over time. The e-Forms functionality and workflow may be a particularly quick win, speeding approvals and freeing up resources for more value-added activities.
Another potential quick win is providing early connectivity to the many remote stores thereby making the Oracle INV module available to those stores to begin better management and reduction of inventory.
Lastly the pilot implementation within HQIT of the HRM and Project Management tools will support quick wins in the capacity and performance of the HQIT organization.
14. CONCLUSIONS
An IT Master Plan founded on building strong and sustainable IT management and operations skills in the Jordanian water sector has been developed. The total program cost is estimated at some $21.6 million over the next five years. Funding requirements start out at around $8.5M in 2007 and peak at around $9 million a year in 2008 because of the high front end funding required for the HQIT, and the fact that a number of different systems initiatives kick in then.
While $21.6M may well seem high at first sight, the benefits that the ITMP can bring to the sector far exceed its costs. Based on conservative assumptions, and counting only the systems initiatives for which tangible benefits can be derived (Asset and Maintenance Management-Supply Chain and CIS/Billing) the ITMP has a potential net value of some $14M. Even without considering the substantial benefits that are likely to be gained from the EIS, Lands and Budget Preparation initiatives for example, if USAID were to fund the plan in full, they would give the sector $21.6M in grants,
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which the sector could then turn into an additional $11M in benefits from those grants. This suggests that the usual practice of GoJ co-financing normally required by the donors can easily be justified.
Early investment in building sustainable IT capacity in the sector underpins implementation of the whole ITMP. Establishing the HQIT and ensuring that it champions the philosophy and underlying principles of the ITMP across the sector and among the donors will bring real objectivity, rigor and consistency to IT investments and ensure they provide a guaranteed return. Systems must now be selected on the basis of business process improvement potential (not just business “needs” in the narrow activity sense). Equally systems implementations must be program managed much more robustly according to accepted best practices, with implementation quality measured on realized business benefits, and transfer of in-depth skills and knowledge to sector staff. The burden and responsibility of both world-class technical and program management of the ITMP falls on the HQIT, underpinning the need to ensure its capacity is adequately and quickly built. Building this capacity internally however, is much more likely in the long run to maintain the integrity of the ITMP and its principles and lead to sustainability of quality IT support to the sector.
Finally, the need for much more regular, detailed and upwardly proactive coordination with donors and MoICT regarding their IT initiatives and plans has also been identified. This will ensure that the sector can fully leverage, and ensure full compatibility with, other IT investments in the Jordanian government sector
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ANNEXES TO VOLUME I
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ANNEX 1 – PROJECT CONSULTANT TEAM
Name Title Company
Ian Driscall COP-Chief of Party Emerging Markets Group
Hussam Abu-Harthieh Business Process Analyst Emerging Markets Group
Ramez Mallouk Senior IT Consultant Emerging Markets Group
Sanabel El-Rayes IT Consultant Deloitte & Touche (M.E.) Jordan
Mohammad Musleh IT Consultant RazorView
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ANNEX 2 – ITMP STEERING COMMITTEE
Steering Committee
Eng. Khaldon Khashman NGWA
Ra'ed Hijazi NGWA
Mahmoud Shloul PMU
Naser Bataineh JVA
Isam Bataineh WAJ
Eng. Mohammad Bani Mustafa "Coordinator" MWI
Eng. Youssef Hassan MWI
Eng. Suzan Taha MWI
Nidal Saliba PMU
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ANNEX 3 – ITMP WORKING GROUPS
IT Organizational Structure Executive Information System” EIS
Eng. Khaldon Khashman* NGWA Eng. Youssef Hassan* JVA
Mahmoud Shloul PMU Ibtisam Al- Saleh MWI
Naser Bataineh JVA Eng. Suzan Taha* MWI
Eng. Mohammad Bani Mustafa MWI Eng. Wessam Yared WAJ
Isam Bataineh WAJ Back Office
Ra'ed Hijazi NGWA Naser Bataineh* JVA
Majid Qutaishat WAJ Ghalia Khaznakatbi JVA
Customer Information System "CIS" Ayda Jbour JVA
Isam Bataineh* WAJ Nadia Al-Ja'fari WAJ
Fayez Habarneh NGWA Moeen Barqawe WAJ
Yasser Jariri WAJ Mahmoud Zou'bi NGWA
Ahmad Abu-Saoud AWC Mohammad Muhaisen LEMA
Mohammad Al-Khateeb JVA Collaboration and Web Presence
Ahmad Al-Sadouni LEMA Mohammad Bani Mustafa* MWI
Eng.Tamer Al-Assad WAJ Inas Mohammad Zuraiqat MWI
Asset and Plant Management & Maintenance Aysha Abu Allan WAJ
Eng. Ahmad Abu-Sheikah* NGWA Firas Khallad LEMA
Jiryes Ghandoor LEMA Abdulqader Jaradat NGWA
Nidal Saliba PMU Hashem El-Naser MWI
Esmat Halaseh WAJ Infrastructure, e-Readiness & e-Government
Wa'el Abu-Taha WAJ Mahmoud Shloul* PMU
Esam Rahal JVA Ahmad Abu-Alkishk LEMA
Jamal Al-Khatib JVA Eng. Suzan Hamdan JVA
Supply Chain Reema Hamori MWI
Eng. Mahmoud Hakouz* JVA Eng. Qais Khashman WAJ
Eng. Eman Fakhouri WAJ Eng. Bassim Al-Khatib NGWA
Khalil Jammain WAJ
Husein Abu Nijim NGWA
Eng. Feda Muanes JVA
* Group Leader
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ANNEX 4 – SCOPE OF WORK
Scope of Work Information Technology (IT) Master Plan
Background
The potential for performance improvement in the Jordanian water sector through use of information –technology (IT) has been recognized for some time. Improving the flow of management information to decision –makers within MWI, WAJ and JVA allows performance improvement on many levels – for example, more timely and accurate billing, identification of principle sources of unaccounted for water, or overstock of supplies. At the same time, improved access to performance information for MWI facilities leads to better policy-making and supports the introduction of effective regulation.
Integrated Management Information Systems (MIS) are usually built around a data warehouse. This may accept outputs from of a wide range of IT applications (e.g., financial, revenue management, materials management, work management, HR and SCADA to populate the data warehouse. If a particular application does not easily interface to the data warehouse, “middleware” is available to build that interface. Suitable reporting, data interrogation, and even data mining tools allow an almost infinite variety of financial, operational, management, regulatory and other reports to be reproduced easily from the data warehouse. Such reports can be web-enabled with appropriate security.
Over the past several years, a number of projects have implemented new information systems and technologies in Jordan’s water sector. Examples include the Water Information System, the GIS database, and most recently ORACLE financials and Customer Relationship Management. These are funded by a variety of donors and have tended to be “point” solutions justified on the basis of their own benefit/cost business cases. The geographic and organizational scope of these systems varies and integration of them is limited. While this situation is not uncommon, the synergies of an integrated suite of IT applications that combine financial and operational data to provide management implementation costs are not as developed as they need to be.
Recently a number of developments in communications technology have increased the ways that data can be accessed and transmitted. They have also opened the possibility of using outsourced application Service Provider (ASP) approaches. Indeed, proposals have been made to introduce several additional ORACLE applications through a Unified Application Service Provider to serve all entities in the sector and to establish e-government capabilities.
Until now there has not been a systematic attempt to take a holistic view of the Jordan water and wastewater sector’s IT needs and to develop an IT Master Plan. Such a Master Plan is important in any enterprise or sector-wide IT initiative. It takes account of legacy and ongoing systems implementations but focuses on maximizing the functional benefits of all IT components at minimum cost. In effect it is a “least cost” investment plan for sector IT.
In short, an IT Master Plan is an essential prerequisite to further orderly and effective development of IT in Jordan’s water sector. IT commitments already made have long-term consequences. It is important that any new technology and systems choices build effectively on these post commitments. New IT choices should only be made after a careful analysis of the success (in return on IT investment terms) of previous systems projects. Careful analysis of the needs, options, integration and technology opportunities and challenges and long term costs and benefits of the options for new IT applications will ensure maximum return on future IT investments in the sector.
Several software applications currently exist in the MWI, WAJ and JVA. The following tables summarize these applications.
MWI
Application Name Description Type Tools Status
Attendees System Administration Internal Oracle Not Used
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Development Water Information System (WIS)
Water Management
Internal Development
Oracle Production
Expenditure System
Financial System External development
Oracle Production
WAJ
Application Name Description Vendor Tools Database Version COBOL Billing System
Financial-Billing Internal/WAJ COBOL COBOL file System
COBOSS0 COBOSS1 COBOSS2
X7 Billing System Financial-Billing Info Oracle Inventory System Inventory Internal/WAJ COBOL Cobol file
System
COBOL Personnel System
Personnel Internal/WAJ COBOL COBOL file System
COBOL Payroll System
Financial Payroll Internal/WAJ COBOL COBOL file System
Expropriation System
Expropriation Internal/WAJ COBOL COBOL file System
Tenders System Tenders Internal/WAJ COBOL COBOL file System
ACCPAC Financial System
Financial Ready Made Package
Oracle Pervasive .SQL Database
NGWA Oracle Personnel System
Personnel Internal/OMS Oracle Oracle Database
NGWA Sewerage System
Sewerage Internal/OMS Oracle Oracle Database
Job Costing System
Maintenance System
Externally Developed by the RSS
Oracle Oracle Database
SCADA System is still under development in Karak governorate and is expected to be in operation in 2004-2005. GIS system is in production in most governorates and is maintained separately within each governorate.
JVA
Application Name Description Type Tools Status HRMS & Payroll Administration Internal
Development Oracle Not Used
Water Management Information System (WMIS)
Water Management
Internal Development
Oracle Production
Financial Accounting System
Financial System Oracle e-business Suite
Oracle Production
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Application Name Description Type Tools Status Geographical Information System (GIS)
Packaged Application (ARC View)
Production
Objectives
This activity will critically review the IT systems already implemented or currently being implemented in Jordan’s water and wastewater sector. Based on an analysis of stakeholder reporting needs relative to the capabilities existing systems, the activity will prepare an IT Master Plan. The objective of the IT Master Plan is to ensure that optimal choices are made concerning the platform, application, configuration, and supporting technologies and resources to build commercially- oriented IT capability for Jordan’s water and wastewater sector.
At a minimum, an IT Master Plan:
Evaluates the reporting needs of sector stakeholders to establish clear goals for further IT implementation;
Sets appropriate standards for hardware, software, network and other communications infrastructure to provide “plug and play” functionality to ensure expandability in terms either of increased scope of existing applications, or implementation of new applications;
Analyzes and justifies the least cost networking and communications strategies providing maximum connectivity to sector stakeholders;
Analyzes strategic options for IT development in the sector (e.g., in- house systems development vs. integrated “best of breed” vs. enterprise resource planning (ERP) applications; or rapid vs. phased implementation) and justifies the optimum strategies; or outsourcings. Analyzes in-house IT functions;
Prioritizes new IT applications in benefit/cost terms and sets clear implementation targets to monitor and track implementation success;
Recommends software, hardware and human resource needs to support the plan’s implementation.
Recommends the preferred applications; and, Ensures the long term sustainability of sector–wide IT by planning for organizational
development and capacity building of IT functions and resources in the sector.
The IT Master Plan will clearly identify the priority IT applications and the integration within the sector. Experience of other developing country utilities suggests the maximum benefit/costs will likely come from improvements in:
MIS- especially in data warehousing and reporting tools (to the extent these are not already supported in the current Oracle implementation);
Metering technologies; Cost recovery; Billing, collection and customer relationship management systems; Regulatory and high level performance information management systems to support better
regulation and performance reporting; Human resource information systems (HRIS) to improve labor deployment and productivity
and manage skills upgrading; Network operations and asset management applications to minimize unaccounted for water;
and, Materials management applications to minimize inventory costs
These areas would be critically evaluated for potential “quick win” opportunities as well as for IT-
Jordan Water Sector – IT Master Plan 132 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
enabled re-engineering following systems selection.
Tasks Task 1: Assessment of The Current Systems and The Identification of Gaps
Inventory, map, review, assess and document to the degree necessary the existing/available IT systems in the water and wastewater sector that are possessed by MWI, WAJ and JVA, including LEMA, AWC and each governorate’s Water Authority.
Evaluate the extent of integration between these existing IT applications. Obtain a comprehensive understanding of the justifiable reporting needs. Determine the optimum current and future uses of IT human resources, hardware and systems
in fulfilling perceived operational, financial, and other business objectives of MWI, WAJ, JVA and other pertinent water establishments.
Identify the major “gaps” between current and planned IT functionality, and reporting and performance improvement needs to be addressed by new systems.
Identify the major performance improvement opportunities across the water and wastewater sector (production, conveyance, supply, groundwater monitoring, quality control and laboratories, etc).
Prioritize system applications and technology needs. Prioritize new systems using a high-level benefit/cost/risk business case basis, and identify
potential for small-scale pilot implementations to demonstrate “quick wins”. Task 2: Development of an IT Strategy to Support System Integration
Added after Mod. (2)) Establish a series of Working Groups, each with membership of 4-6 persons drawn from the Counterpart Committee and wider sector management as appropriate, to work with the Consultant to develop out the prioritized Master Plan components from Task 1 in more detail;
Facilitated by the Consultant, each Working Group would complete the data collection and analysis steps identified in Tasks 2 and 3 below to justify each component in terms of benefits, costs and risks, evaluate options to deliver each Master Plan component, recommend specific options, and develop high level budgets and implementation plans;
Understand the number of entities and sub-entities (e.g., Regional or Divisional Offices, Zones, Billing Centers etc.) to be covered;
Develop the conceptual design for the required communications and networking infrastructure-evaluating the cost of different communications options;
Establish appropriate hardware, software, communications and networking platform standards;
Specify system security, backup and disaster recovery standards; Develop and evaluate on a benefit/cost/risk basis the strategic options for implementing the
additional systems required (including the ASP model) and for integrating existing systems, and,
Review the IT organizations and skills levels across MWI, WAJ and JVA. Evaluate the IT “change readiness” of the entities and sub-entities where additional systems will be implemented and develop appropriate capacity-building plans.
Task 3: Selection of IT Applications
Carry out market surveys of available IT offerings that could help fill the identified gaps; Detail business cases for each target application; Develop high-level functional specifications for each application; Develop budgets for each application;
Jordan Water Sector – IT Master Plan 133 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Identify the future costs and personnel required to support the selected applications and platform;
Task 4: Prepare IT Master Plan Implementation Budget and Work Plan
Develop an implementation budget for the Master Plan. Develop an implementation work plan, including tasks, timetable and personnel requirements
Remarks:
USAID/Jordan would not restrict the design contractor from being the implementing contractor.
Time Schedule
After adding the Working Group activity, it is anticipated that the in-country effort will be completed within a nine months period starting from the signing of the Task Order. All work under the Task Order shall be completed within eleven months from the award date (see attached new project schedule).
Deliverables/ Report/ Outputs Progress Reporting
Develop work plan with benchmarks and targets for the IT assessment activities, and establish reporting systems to document progress in relation to the benchmarks and targets.
Prepare and maintain project records, conduct implementation workshops to report progress and resolve problem areas. Submittals:
It is required that close and clear communications be maintained between the contractor, USAID/Jordan and MWI, WAJ, JVA throughout the project. The Contractors shall submit sufficient status reports to MWI, WAJ, JVA and USAID/ Jordan to keep them fully informed of the project.
The Contractor shall submit monthly progress reports to USAID/Jordan. The reports shall, at a minimum, include the following:
A brief discussion of current activities for each major element of the project. This shall include status of each task and activity, progress, status of coordinating work with MWI, WAJ, JVA, cash flow status, recommendations issued, and other activities pertinent to the problems.
Presentation of major problem areas, current or foreseen, and recommendations for resolving these problems
Anticipated activities for the coming month.
A status report on the contractor staff, including arrival and departure dates of U.S. personnel, employment and termination dates of Jordanian personnel, a summary of man days to date and projected for each major task.
Presentation of actual progress to date versus scheduled progress in graphic form, and where appropriate, discuss reasons for slippage from schedule and actions being taken toward recovery.
Such supporting information as required to provide a concise and comprehensive report.
Monthly status reports shall be due on the tenth working day of the following month. Five copies of each report shall be delivered to the USAID/Jordan COTR.
An implementation schedule for the Contractor’s activities shall be required.
Demobilization Plan
One month prior to the estimated completion date of the Task Order, the Contractor shall submit a draft demobilization plan to the USAID COTR and Contracting officer for review and approval. The demobilization plan shall have a realistic time frame with a detailed schedule breakdown by task or deliverables, demonstrating compliance with the Task Order terms and requirements. The Plan shall
Jordan Water Sector – IT Master Plan 134 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
have three components:
Equipment: The plan for transfer of custody should be directly tied to the work required under the Task Order. Note that no equipment procurement is anticipated under this Task Order.
Staff: Demobilization of staff must be tied to the Task Order work plan
Programmatic: This aspect of the demobilization plan tracks the deliverables to be provided under the Task Order, indicating when the deliverables will be completed or at what stage of completion they will be when staff departs post. This component must track closely with the work plan.
At the conclusion of Task Order activities, a final report shall be produced requiring USAID review and approval that includes a review and discussion of the planning, implementation and outcomes of the Task Order activities.
Submitted to USAID for approval thirty days after the completion of the IT Plan, the Final Report shall include the IT Plan and summarize all Task Order activities and assess the progress made in fulfilling the Task Order purpose and include the following information:
Expatriate personnel (by name and job title); arrival and departure dates; man weeks of service in the performance of the work.
Jordanian personnel (by name and job title) with inclusive dates of work on the project.
Actual submission and approval dates; comments
Problem areas in Task Order administration and suggestions for improvements
All sources of data, information interviews, etc., and a bibliography of reference works used in carrying out the project.
A draft report shall be submitted to USAID for review and comment prior to submittal of the final report.
Ten copies of the Contractor’s final report shall be submitted to USAID.
For USAID/Washington, the Contractor should submit the following:
For EGAT/EG: one hard copy of the final report and close out report by mail to: Mark H. Karns, CFA
Sr. Privatization Advisor Agency for International Development Bureau for Economic Growth, Agriculture and Trade EGAT/EG Suite 2.11.115 1300 Pennsylvania Ave. NW Washington, DC 20523 – 2110 Direct (202) 712 5516 Fax (202) 216 3025 Email [email protected] Web 212Hhttp://inside.usaid.gov/eg
And
Yoon Joo Lee, Ph D, Economist & CTO
USAID EGAT/EG, Room RRB-2.11-72 Washington, DC 20523 Tel:202-712-4281; Fax: 202-216-3010 EM: [email protected] For CDIE: one hard copy of the final report and one electronic copy on diskette to:
Jordan Water Sector – IT Master Plan 135 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
U.S Agency for International Development PPC/CDIE/DI, Attention: Acquisitions 1300 Pennsylvania Avenue, N.W. Ronald Regan Building M.01-010 Washington, D.C 20523
Monitoring & Evaluation
In cooperation and coordination with the MWI Project Manager and the USAID/Jordan Team Leader will perform monitoring of contractor’s performance. Evaluation of the contractor’s performance at the completion of each of the four phases will be documented in the Task Order file.
Jordan Water Sector – IT Master Plan 136 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
ANNEX 5 – PROPOSED HQIT ORGANIZATION DESIGN
The proposed design of the new HQIT organization is shown below:
The HQIT is led by a Center/Unit Manager acting as the “Chief Information Officer (CIO)” of the water sector. This individual is responsible for monitoring and assuring the continuous development of IT in the sector according to the ITMP which will be updated every 3 – 5 years. The Center/Unit Manager will work jointly with sector leadership to provide them with consolidated reports and information aggregated by the Executive Information System.
Directorates and their roles
The HQIT will consist of four Directorates with the roles and responsibilities described below. Note that a full Administration, Finance and HR Directorate would need to be added when the HQIT is corporatized: Business Application Directorate
Communicate specific business needs and detailed requirements to the PMO Section for project initiation and procurement.
Provide technical implementation services and ongoing configuration support for backbone systems
Develop and maintain in-house built applications as required to formal international best practice standards
Maintain up to date documentation and change records for all backbone and Headquarters Organizations applications
Ensure that applications are available on a 24x7 basis Provide training services for backbone systems and other developed applications Monitor research and development trends for utility based business applications Liaise with other Directorates and Operating Utilities on applications-related issues Implement the recommendations of the Security and Quality Assurance for applications
HQIT Manager
InfrastructureDirectorate
Security & QADirectorate
Business Applications Directorate
Strategic Planning& PMO
Directorate
Applications R&D Section
Head
Tech SupportSection Head
ImplementationSection Head
Tech SupportSection Head
DeploymentSection Head
QASection Head
Info SecuritySection Head
PMOSection Head
Info MgmtSection Head
Strategic PlanningSection Head
GIS Systems & Integration
Section Head
HQIT Manager
InfrastructureDirectorate
Security & QADirectorate
Business Applications Directorate
Strategic Planning& PMO
Directorate
Applications R&D Section
Head
Tech SupportSection Head
ImplementationSection Head
Tech SupportSection Head
DeploymentSection Head
QASection Head
Info SecuritySection Head
PMOSection Head
Info MgmtSection Head
Strategic PlanningSection Head
GIS Systems & Integration
Section Head
Jordan Water Sector – IT Master Plan 137 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Update the sector-wide intranet and web portal from an applications perspective Infrastructure Directorate
Upgrade and support the HQ LAN and WAN as per the ITMP Co-plan and design in cooperation with Operating Utilities WAN upgrades and extensions,
again guided by the ITMP Implement the recommendations of the Security and Quality Assurance for infrastructure Efficiently and effectively procure properly justified HQ hardware, operating system and
infrastructure needs Ensure that the Headquarters Organizations IT environment is fully available on a 24x7 basis Liaise with other Directorates and Operating Utilities on infrastructure-related issues Cooperate with Operating Utilities to design business continuity and fail-over strategies Maintain the sector-wide intranet and web portal from an infrastructure perspective Provide technical support for end-users
Security and QA
Review and recommend best practice standards and procedures for other HQIT Directorates such as ITIL and SDLCs
Review, adapt and implement best practices in information security (example: ISO 17799) Identify, manage and mitigate all IT risks within HQ Directorates Conduct internal audits for security compliance and provide recommendations to all
Directorates Cooperate with Operating Utilities to encourage their adoption of, and compliance with, risk
management, risk mitigation and information security policies – developed again to best practice standards
Provide quality assurance for all IT HQ related projects, applications, processes and deliverables
Strategic Planning and Program Management Office (PMO)
Develop Project Management Practice policies, procedures and forms Act as the Program Management Office planning, managing and monitoring the
implementation of all large IT projects Manage and monitor progress against 6-monthly updated HQIT work plans Manage annual zero-based budget development by all Sections Be responsible for ensuring that PMO standards are adopted on all projects and properly
communicated to operating entities Cooperate with Operating Utilities to ensure endorsement of PMO Consolidate sector-wide information and be responsible for providing CIO and EIS with
decision-making data and related information. Prepare tender documents and be responsible for procurement and negotiation of services,
products and other IT commodities. Perform technology watch services and provide sector-wide with analyst reports on latest
technologies and standards.
Composition of Sections within each Directorate
The suggested staffing composition of each section under the four Directorates is as follows: Business Application Directorate
Solutions/Applications Implementation Section – this Section hosts functional consultants and system analysts who possess broad experience of business needs and their systems support solutions.
Jordan Water Sector – IT Master Plan 138 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
These individuals will work with business users to develop detailed business requirements and software specifications. They will also provide on-the-job functional training and post-implementation functional support.
Solutions/Applications Technical Support Section – this Section provides Help Desk and technical support services for all solutions/applications implemented by MWI, JVA and WAJ. It hosts purely application technical personnel such as database administrators, application technical administrators, and technical solution architects. and other. It does not provide any infrastructure related administration.
Applications Research and Development Section – primarily hosting a development team who are either responsible for developing internal applications, system interfaces, or customizing best of breed application, this Section acts as a second level support to the Technical Support Section above. It has no interaction with end users. The Section is also responsible for monitoring technology developments in the applications/software domain for the water and utilities sector, and for providing feedback to the HQIT Center/Unit Manager to be communicated across other Operating Utilities.
Geographical Information Systems Section – based on the request of the ITMP Steering Committee, this Section has been created to host technical support staff for GIS. It acts as a custodian of GIS not as an owner (this resides with the specialist end-user community). It has the following specific mandates – providing technical support to business users and owners of GIS data, managing and organizing technology agreements with the Department of Lands and Survey, the Royal Jordanian Geographical Center (RJGC) etc., and developing and ensuring compliance sector-wide with GIS meta data and applications interfacing standards suitable for the Jordan Water Sector. Finally it will also act as the unified repository for sector-wide GIS data. Infrastructure Directorate
Deployment Section – this Section is responsible for developing hardware and infrastructure specifications and for working collaboratively with the Applications/Solutions Section for infrastructure provisioning. The team is responsible for rolling out infrastructure environments, ensuring that all operational aspects are monitored and that 24x7 service is guaranteed.
Technical Support Section – this Section provides Help Desk and technical support to end users on all issues related to hardware, operating systems, email and related collaboration and office applications and infrastructure. The Section does not provide other applications/solutions support except that it works jointly and collaboratively with the relevant Applications/Solutions Technical Support Section. Security and QA
Information Security Section – this Section handles all aspects of security monitoring, reporting, resolving and escalation of threats, vulnerability, intrusion…etc. They monitor the audit files and logs of applications and infrastructure components and report violations in a prompt manner. The Section also works with the various business units in authorizing users and granting access privileges.
Quality Assurance Section – this Section ensures compliance of all IT operations with a comprehensive QA process. It is an integral element in assuring data integrity. The role of the QA Section is to test applications, ensure that all IT policies and procedures are followed. It will also assure the quality of systems implementations, monitor acceptance tests, and assure realization of targeted business benefits. Strategic Planning and PMO
Information Management Section - consolidating and presenting information to decision-makers is the primarily responsibility of this Section. It also assumes the role of monitoring developments in IT worldwide, organizing and watching important related events, and coordinating with other Sections and Operating Utilities.
Program Management Office Section – this Section sets project management and implementation standards, participates in project meetings and is empowered to make sure that all projects are on
Jordan Water Sector – IT Master Plan 139 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
track. It escalates risks and issues as quickly as possible to the HQIT Center/Unit Manager for further action as necessary.
Strategic Planning Section – this Section is responsible for drafting contracts, operational policies and procedures, preparing RFPs and monitoring contracts and budgets. The Section is also the custodian of the sector-wide ITMP and ensures its periodic update. Additionally it manages and monitors the 6-monthly workplans of each section and oversees the annual budget preparation process ensuring its consistency with the ITMP.
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days
By S
hifti
ng to
Mon
thly
Billi
ng, R
educ
e to
75
days
Tota
l Ann
ual R
even
ue fr
om W
ater
and
Was
tew
ater
Billi
ng (e
xc. T
axes
) / M
JD
72
O
ne-ti
me
Cas
h In
flow
/ M
JD
8.88
12
.68
Assu
me
only
larg
est c
usto
mer
s sh
ift to
mon
thly
billi
ng (1
.7%
of t
otal
cus
tom
ers
y4.
44
50%
6.34
CIS
- One
-Tim
e R
ecov
ery
of B
ad D
ebts
Out
stan
ding
Bad
Deb
ts /
M J
D13
,500
,000
Assu
me
one-
time
rela
tive
redu
ctio
n10
%O
ne-ti
me
Cas
h In
flow
/ M
JD
1,35
0,00
0
1.
93
DIS
CO
UN
TED
CAS
HFL
OW
CAL
CU
LATI
ON
IN U
SDU
SD/J
D =
0.
70Ye
ar1
23
45
67
89
10To
tal
Impl
emen
tatio
n C
osts
CIS
X7
rollo
ut ($
775K
+ 3
0% c
ontin
genc
y ov
er 2
yrs
)(0
.50)
(0.5
0)(1
.01)
Ong
oing
Sup
port
Cos
ts (5
inst
alls
@ $
25K/
yr)
(0.1
3)(0
.13)
(0.1
3)(0
.13)
(0.1
3)(0
.13)
(0.1
3)(0
.13)
(0.1
3)(0
.13)
(0.1
3)(1
.38)
Annu
al T
otal
Cos
t of O
wne
rshi
p(0
.63)
(0
.63)
(0
.13)
(0.1
3)
(0
.13)
(0.1
3)
(0
.13)
(0.1
3)
(0
.13)
(0.1
3)
(0
.13)
(2.3
8)
Ben
efits
-
Annu
ally
Rec
urrin
g R
educ
tion
of N
RW
1.17
1.
17
1.17
1.
17
1.17
1.
17
1.17
1.
17
1.17
10
.50
"One
-tim
e" In
flow
from
Shi
ft to
Mon
thly
Billi
ng (a
ssum
ed s
prea
d ov
er 2
yrs
)3.
17
3.17
6.
34
One
-tim
e re
cove
ry o
f Bad
Deb
ts1.
93
1.93
-
-
6.
27
4.34
1.
17
1.17
1.
17
1.17
1.
17
1.17
1.
17
18.7
6
NPV
AT
STAR
T O
F IM
PLEM
ENTA
TIO
NAs
sum
e D
isco
unt R
ate
= 10
%PV
of C
osts
(1.6
9)PV
of B
enef
its11
.55
Net
Pre
sent
Val
ue o
f Sys
tem
s Im
plem
enta
tion
9.86
Not
es:
1. B
enef
its a
nd c
osts
are
not
esc
alat
ed -
in p
rice
or v
olum
e2.
Ben
efits
are
ass
umed
not
to b
egin
for 2
yea
rs3.
Ben
efits
con
tinue
bey
ond
year
10
acco
rdin
g to
sys
tem
life
- th
ese
are
igno
red
but w
ould
any
way
hav
e on
ly a
sm
all P
V
Assu
me
Lega
l Not
Pai
d Fo
r =i.e
. Leg
al N
ot P
aid
For =
Assu
me
rela
tive
% re
duct
ion
achi
eved
=
Jordan Water Sector – IT Master Plan 142 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
ANNEX 8 – GIS WORKING GROUP TORS
Information Technology Master Plan Program For the Ministry of Water & Irrigation – Jordan
Technical Working Group Sector Wide “Geographical Information System”
Scope of Work June 2006 Version 1.1 DRAFT
Jordan Water Sector – IT Master Plan 143 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Table of Contents 213H1. INTRODUCTION..................................................................................................................... 461H144
214H2. COMMON OBJECTIVES....................................................................................................... 462H144
215H3. SPECIFIC WORKING GROUP OBJECTIVES................................................................... 463H144
216H4. TASKS AND APPROACH ...................................................................................................... 464H145
217H5. DELIVERABLES ..................................................................................................................... 465H146
218H6. TIME FRAME .......................................................................................................................... 466H146
219H7. COMMUNICATION AND MEETINGS................................................................................ 467H146
Jordan Water Sector – IT Master Plan 144 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
Introduction
Geographical/spatial Information is essential to the work of the different agencies comprising the Water Sector. In the full cycle of water exploitation, from the planning and management of water resources, to the extraction, transportation, storage, and purification of raw water, to the management and delivery of consumable water, and to the collection, transportation, treatment, and recycling of wastewater, there is an extensive need for reliable geographical information, supported with advanced spatially-based analysis functions, and seamlessly integrated with other types of information.
The water sector identified the potential benefits of Geographical Information Systems (GIS) over a decade ago. Over the years, many project-based and departmental GIS systems have developed all across the Sector. These systems varied in size, purpose, and achieved success and productivity, but all were limited to the needs, capacities, and perceptions of the concerned developing entities. This resulted in a large number of scattered and uncoordinated GIS arrangements spread all over the Sector. In WAJ, for example, independent GIS entities exist in the PMU, LEMA Company, NGWA, Aqaba Water Company, and several departments and directorates in WAJ-Central. In MWI, on the other hand, GIS is utilized as a tool by several end-users with inadequate collaboration and coordination.
The problems, deficiencies, and lost opportunities resulting from the situation described above have been widely recognized by the GIS community in the Sector, and have been discussed and described in several documents and venues. In addition, several initiatives have been taken to alleviate such problem by promoting the concepts of common standards, shared policies, and collaboration among GIS users but none have yet succeeded unequivocally.
The IT Master Plan has seen the need to establish a GIS Working Group, with the following main objectives:
• To review, consolidate, rejuvenate and build on previous initiatives in this regard • To integrate GIS with the overall IT Master Plan and the findings of the eight Working
Groups, especially where integration of GIS with other information systems is required (e.g., Asset and Maintenance Management, Customer Information and Billing Systems, Lands Management etc..)
• To develop a GIS road map for the Water Sector for establishing a Sector-wide GIS clearinghouse that meets the needs of the widest spectrum of GIS users in the Sector, whether in technical planning functions or in operations and maintenance
The Working Group shall consist of six people from MWI, WAJ (including its operating sub-entities) and JVA. This group will be headed by EE from the SC and KK from the IT Master Plan Project.
Common Objectives
This Working Group is formed to work under a continuation of the IT Master Plan project, funded by USAID, but yet to be defined and contracted. Following the goals of that original project, the objectives of this TOR are ultimately to:
• enable significant performance improvement across the Jordanian water and wastewater sector
• improve policy-making • support effective sector regulation
Specific Working Group Objectives
This Group has to work with the GIS community in MWI, WAJ, JVA, PMU, LEMA, NGWA and/or AWC to understand their current GIS activities and existing resources as well as
Jordan Water Sector – IT Master Plan 145 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
future needs.
The group also needs to be aware of the developments introduced by National GIS Strategy, and ensure that the Sector GIS road map is in agreement with this Strategy.
Accordingly, the Group needs to work on achieving the following specific objectives:
I. Review, build on, and consolidate the outcomes of previous activities in this regard, which include reports issued by the PMU GIS Department, the documentation of the April 2005 workshop, the finding of the four GIS task force groups, and the latest GIS Needs Assessment Report that was conducted by the external Consultant under the support of GTZ.
II. Assimilate the recommendations of the IT Master Plan and identify areas of integration/interaction between GIS and other information systems (including AM-MM, CIS/Billing, Lands, LIMS).
III. Identify and review, though literature review and other research current best practices in GIS utilization in water utilities and water planning authorities, and determine if and how these best practices could be applied to the Jordanian water sector.
IV. Develop a detailed GIS road map for the Jordan water sector, that should result finally in both a sector-wide GIS clearinghouse and a clear Vision for a fully-GIS enabled and leveraged water sector, by addressing the following aspects:
a. Identify existing and potential users of the envisaged GIS Clearinghouse
b. Define all ‘framework’ GIS data sets necessary for the Clearinghouse, including assessment of their current availability, status, and source (both internal and external), based on the recent inventory of existing GIS data sets
c. Define GIS standards to be implemented (data models, data dictionaries, metadata, coordinate systems, application integration standards and GIS middleware tools, …), including assessment of their current implementation status as appropriate
d. Propose an organizational structure for a unified GIS ‘overseeing’ entity (including how it should relate to the envisaged unified IT Org as well as to decentralized entities such as LEMA and NGWA), with a clear mandate and well-defined list of responsibilities
e. Identify areas where expansion of GIS implementation is needed
f. Specify the technical requirements for building the Clearinghouse including software, hardware, networking, internet/intranet, …etc
g. Develop a GIS information policy plan that would govern the propagation of GIS information both within the Sector and with external agencies
Tasks and Approach
To be fully defined once full agreement on the objectives above is reached – however the tasks required are likely to include some or all of the following:
• Review of documentation on existing GIS initiatives and future plans by all entities involved
• Interviews with sector leaders and thinkers involved in developing or using GIS the outputs of current GIS initiatives
• Inventorying of existing GIS initiatives, equipment, standards etc. where data is not already available
• Secondary research into GIS best practices as implemented to support both planning and operations in water utilities and planning and oversight bodies worldwide
Jordan Water Sector – IT Master Plan 146 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
• Identification of “Jordanization” priorities or needs that might cause these best practice standards to need to be adapted
• Development of a business case that captures and / or estimates both the tangible and intangible benefits that could be realized by effectively leveraging GIS in the sector, and a plan for how this could be used to direct and prioritize GIS budget allocations and donor support in the sector
• Synthesis of the above into an action plan, budget and timeline for implementing both the GIS Clearinghouse and the Vision for a fully GIS-enabled and leveraged water sector
Deliverables
The group should be able to provide the following deliverables:
1. An inventory of existing GIS implementations and resources in the Sector (human, IT and data resources)
2. GIS information needs and requirements: individual entities, the sector a whole, and the National GIS Strategy
3. Roadmap to implementation for both the GIS Clearinghouse and the Vision for a fully-GIS enabled and leveraged water sector
4. Final Report and Presentation
Time Frame
To be determined, but not less than six months (it is important to time bound the activities of the Group, and to ensure their adequate release from normal duties to complete this TOR)
Communication and Meetings
To be determined
Thinking Lines
Below is a list of questions that may help in this exercise, they are provided as guideline and the group need to add to or enhance.
• What are the top issues facing the GIS community in the Sector today due to lack of a holistic approach in implementing GIS?
• What aspects in implementing GIS should be handled by the envisaged unified IT Org and what should be the responsibility of the unified GIS ‘overseeing’ entity?
• Understand the interdependency with external agencies concerning GIS data and services
• What is the current and planned (within the IT Master Plan) IT infrastructure? How it should be tailored to suit the proposed GIS implementation
• How should the relationship be defined with decentralized entities such as utilities in other governorates?
• What are the GIS ‘framework’ layers needed for the Clearinghouse? N.B. ‘Framework’ GIS layers are usually characterized by the following:
1. Mostly used to geographically reference other GIS layers (e.g., administrative boundaries, localities, roads, land lots, ..)
2. Are needed by a majority of GIS users
3. Mostly have nation-wide coverage (not local)
• Cost / budget issues.
Jordan Water Sector – IT Master Plan 147 Final Report to USAID – Volume I Recommendations August 2006 Emerging Markets Group, Ltd.
• What is needed to make a shift in attitude from ‘My data ..’ to ‘Sector data ..’?
• Are efforts needed to raise awareness in the Sector on:
1. The importance and potential of GIS?
2. The need for the GIS project, and its incorporation into the IT Master Plan?
• What type of relationships are needed between GIS and other information systems (integration / interfacing / data exchange)? What are other system that would benefit from assigning a geographical/mapping dimension to their information sets and applications?
• How can GIS best contribute to better sector planning and operational performance improvement?
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
8 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
AN
NEX
9 –
PH
ASI
NG
OF
ITM
P C
OM
PON
ENTS
Sugg
este
d Ph
asin
g of
ITM
P C
ompo
nent
s
Not
es: *
= e
arly
pilo
t with
in H
QIT
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Exec
utive
Info
rmat
ion
Syst
em
KEY
Poss
ible e
arly
start
if sep
arate
reso
urce
s av
ailab
le
Budg
et P
repa
ratio
n
EIS
Conf
igur
atio
nHQ
IT O
rgan
izatio
n
Colla
bora
tion
& W
eb P
rese
nce
Supp
ly Ch
ain(O
racle
FAS
Re
conf
ign.
)
AM-M
MNG
WA
Pilo
t
Data
flow
& Pe
rform
ance
Mg
t. Pr
epar
atio
n
AM-M
MSe
ctor
Wid
e Rol
lout
Colla
bora
tion
Infra
stru
ctur
e
Hum
an R
esou
rces
Mgt
*
Lega
l
Proj
ects
Man
agem
ent*
Deta
iled
Cons
olid
atio
n P
lanni
ng
Capa
city
Build
ing
Full H
QIT
Oper
atio
n + P
MO an
d Co
ntra
ct M
anag
emen
t
2007
Year
Land
s
Infra
stru
ctur
e &
E-Go
vern
men
tBa
ck O
ffice
(& L
ands
)Su
pply
Chain
& A
sset
- Ma
inte
nanc
e Mgt
2008
2009
2010
2011
Cons
olida
tion
Corp
orati
zatio
n
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
14
9 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
AN
NEX
10
– ES
TIM
ATE
D F
UN
DIN
G N
EED
S B
Y C
OM
PON
ENT
$Mill
ions
YEA
RYE
AR
YEA
RYE
AR
YEA
RTO
TAL
12
34
5IT
MP
Com
pone
nt1.
HQ
IT O
rgan
izat
ion
3.65
2.54
1.41
0.67
0.35
8.63
2. A
sset
- M
aint
enan
ce M
anag
emen
t - S
uppl
y C
hain
-
3.
67
1.
40
0.
29
-
5.37
3. E
xecu
tive
Info
rmat
ion
Syst
em-
2.34
0.06
0.02
-
2.
42
4.
Bac
k O
ffice
Sys
tem
s1.
55
0.
07
0.
07
-
-
1.
70
4.
1 Bu
dget
Pre
para
tion
0.30
-
-
-
-
0.30
4.
2 Pr
ojec
ts M
anag
emen
t0.
39
0.
02
0.
02
-
-
0.
43
4.3
Hum
an R
esou
rces
Man
agem
ent
0.42
0.02
0.02
-
-
0.47
4.
4 Le
gal (
see
note
1)
-
-
-
-
-
-
4.5
Land
s0.
45
0.
03
0.
03
-
-
0.
51
5. C
olla
bora
tion
and
Web
Rea
dine
ss0.
17
0.
01
0.
01
-
-
0.
19
6.
Infr
astr
uctu
re, E
-Rea
dine
ss a
nd E
-Gov
ernm
ent
3.91
0.10
0.10
-
-
4.11
GR
AND
TO
TAL
9.28
8.
74
3.06
0.
99
0.35
22
.41
No
tes:
1. Gi
ven t
he se
ctor's
decis
ion to
proc
eed w
ith th
e X7 r
ollou
t, CIS
/Billi
ng (in
cludin
g any
proc
ess w
ork)
is as
sume
d to b
e inte
rnall
y fun
ded
2. Th
e Leg
al sy
stem
is de
velop
ed en
tirely
inter
nally
with
in the
Coll
abor
ation
suite
, so n
o exte
rnal
fundin
g is r
equir
ed.
3. Inf
rastr
uctur
e cos
t esti
mates
inclu
de th
e req
uest
rece
ived f
rom
NGW
A aft
er fo
rmal
closu
re of
the W
orkin
g Gro
up pr
oces
s
Jord
an W
ater
Sec
tor –
IT M
aste
r Plan
15
0 Fi
nal R
epor
t to U
SAID
– V
olum
e I R
ecom
men
datio
ns A
ugus
t 200
6
Emer
ging
Mar
kets
Grou
p, L
td.
AN
NEX
11
– O
VER
ALL
ITM
P B
USI
NES
S C
ASE
$M th
roug
hout
Assu
me
Dis
coun
t Rat
e =
10%
8
ITM
P C
OM
PON
ENT
TAN
GIB
LE B
ENEF
ITS
PV (B
enef
its O
nly)
at s
tart
of
impl
emen
tatio
nIm
plem
enta
tion
Def
erre
d (Y
rs)
PV (B
enef
its O
nly)
, Adj
uste
d fo
r D
elay
ed S
tart
of I
mpl
emen
tatio
nH
QIT
Not
App
licab
leAM
-MM
-Sup
ply
Cha
in19
.74
216
.31
CIS
/Billi
ng11
.55
011
.55
EIS
Not
Rea
dily
Qua
ntifi
able
Back
Offi
ce S
yste
ms
Not
Rea
dily
Qua
ntifi
able
Col
labo
ratio
nN
ot R
eadi
ly Q
uant
ifiab
leIn
frast
ruct
ure
Not
App
licab
leTo
tal P
V of
Ben
efits
, Adj
uste
d fo
r Del
ayed
Sta
rt o
f Im
plem
enta
tion
27.8
6
ITM
P C
OM
PON
ENT
DIS
BU
RSE
MEN
T SC
HED
ULE
Year 1
9.28
28.
74
3
3.06
40.
99
5
0.35
22
.41
To
tal P
V of
ITM
P C
osts
20.7
3
Estim
ated
NPV
of t
he IT
MP
7.13
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
ANNEX 12 – GTZ TENTATIVE IM HANDBOOK LAYOUT
# Chapter Responsible A Background and Purpose SCWS B General Information Management Rules and Regulations B.1 Data Management Roles and Responsibilities SCWS B.2 Intellectual Property and Copyright SCWS B.3 Data Classification and Use SCWS B.4 Public Communication Strategy SCWS B.5 Electronic Filing SCWS B.6 Data Sharing with External Users SCWS B.7 Individual Computer Use Rules IT Master Plan C IT Operations C.1 Information Resources IT Master Plan C.2 Risk Assessment and Treatment IT Master Plan C.3 IT Security IT Master Plan C.4 Data Access Control IT Master Plan C.5 Communications and Operations Management IT Master Plan C.6 Information Systems Acquisition, Development and Planning IT Master Plan C.7 Software Development IT Master Plan D Internet Use D.1 Internet Use Regulations SCWS D.2 Web Site Publication Standards IT Master Plan E Executive Information System IT Master Plan F Water Related Information Systems F.1 Water Sector Information SCWS F.2 Water Management Information System (WMIS) JVA F.3 Bulk Meter Flow Operation (BMFO) System SCWS F.4 Laboratory Information Management System WAJ Labs F.5 Water Information System (WIS) SCWS G Back Office Information Systems G.1 Financial Accounting System (FAS) IT Master Plan G.2 Human Resources Management IT Master Plan G.3 Payroll IT Master Plan G.4 Projects IT Master Plan G.5 Budget IT Master Plan G.6 Legal IT Master Plan G.7 Lands IT Master Plan G.8 Geographic Information System IT Master Plan H Asset Management IT Master Plan I Supply Chain IT Master Plan
Jordan Water Sector – IT Master Plan Final Report to USAID – Volume I Recommendations August 2006
# Chapter Responsible J CIS / Billing System IT Master Plan
The IM Handbook chapters are not final. They are only the starting point of a continuous process. The IM Handbook shall be implemented as a web document on the MWI intranet. SWSC may start the implementation activities. Whenever the ITMP project is operational it should continue the endeavour.