in collaboration with

The SABC Transforms to StrengthenPublic Service Broadcasting for TotalCitizen Empowerment!Capgemini drives strategy and transformation to help galvanize thebusiness and build a value proposition for the future

The SituationIn a culturally rich and diversecountry, the South AfricanBroadcasting Corporation (SABC)reaches over 24 million people everyday through its 18 radio stations andthree free TV channels. The SABC’sambition is to play an important rolein nation building and secure a stablefunding base for a sustainable future.

South Africa presents uniquechallenges to a public servicebroadcaster due to cultural andlingual diversity, and wide economicdisparity among a population of 48million. The SABC is charged by theGovernment to serve South Africawith content that reflects andpromotes that rich cultural diversity.

As wealth grows, more householdscan afford multi-channel TV. Greaterchannel choice eats into the SABC’saudience share. SABC’s share of radiolistening is also falling as competitorcommercial stations launch. Thesemultiple threats prompted theCorporation to

review the way it served audiencesand plan for a digital future in whicha growing proportion of mediaconsumption takes place online andvia mobile devices. Also, as marketleader, the SABC is expected to drivethe launch of Digital Terrestrial TV(DTT) in South Africa. Together, theseaspirations and increased competitivethreats mean that the SABC also needsto adjust its funding base and cut coststo deliver its public service ambitions.

The SolutionCapgemini in partnership with itsSouth African associate, GeminiConsulting, was invited to help withthe program to turn vision to reality.In collaboration, joint teams:

• developed a new audiencesegmentation as a tool toimprove the provision ofpublic servicebroadcasting to allSouth Africans

“The work thathas been carried out by

Capgemini has given theSABC new impetus and

resilience in its continuedendeavor of being the leading

African Broadcaster and leader indigital broadcasting.”

Sipho Sithole,Head of Strategy and Risk Management,

SABC

• positioned new channels andservices across TV, radio and newmedia

• refreshed the public service visionand measured the public value thatthe SABC creates through itsservices

• drove savings and efficiencies fromcore processes to contribute tofinancial sustainability

• enhanced people capabilities andmobilized the organization aroundthe transformation agenda.

The ResultThe Corporation testifies to positivebenefits of the partnership. A clearstrategy roadmap has been definedwith agreed tasks, activities andpriorities. Tracked milestones anddeliverables have involvedmanagement at all times, ensuringstrong buy-in to program goals. It hasalso mobilized the organization toadopt change as it ripples through thecorporation.

The new audience segmentationmodel developed by Capgemini hashelped the SABC to understand itsaudiences better and target moreclearly its radio and TV services toSouth Africa’s diverse population,including new media distributionplatforms. The advertising industryhas responded positively to thesegmentation and it is now beingadopted widely in the industry.

Detailed market research to askpeople about the value they attach tothe SABC has revealed that the publicvalue created by the SABCsubstantially exceeds the moniesreceived via the licence fee and directGovernment funding. This findingprovides a strong base for the SABC toengage with the Government andother stakeholders to identify a future,more sustainable funding solution.

How The SABC and CapgeminiWorked TogetherThe SABC identified a need to build astrategy and value proposition toplace its audience and their needs atthe heart of the organization.Management wanted to accelerateexecution by aligning the organization

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Copyright ©2009 Capgemini. No part of this document may be modified, deleted or expanded by any process or meanswithout prior written permission from Capgemini. Rightshore® is a trademark belonging to Capgemini.

In collaboration with

The SABC is South Africa’s national publicbroadcaster. Almost 24.6 million people tunein to a network of 18 radio stations every dayand 24.2 million South Africans watch threefree-to-air television channels. The SABCreaches every home in the country to people

of all walks of life, using available mediaplatforms. The SABC primarily creates andbroadcasts television and radio content, butis also involved in a myriad of otherentertainment—and education—relatedpursuits. It creates some of the most sought-after content in the continent through itsspecialist companies: SABC News, SABCSport, SABC Education, and SABC Religion.

For more information, please visit:www.sabc.co.za

and business initiatives to the newstrategy. Capgemini was called uponto help with the next stage in thattransformation. The team adopted anaggressive engagement strategy todeliver operational transformation sothat the Corporation was positionedas the broadcaster of the future.

The team, comprising over 30executives from various parts of theSABC, some 8 consultants fromCapgemini and about 12 from GeminiConsulting, worked in unison todeliver results. An 8-week Analysis &Design stage was followed by a seriesof workshops in Cape Town andJohannesburg. The latter helpedsharpen the strategy and develop theimplementation roadmap. In the

About Capgemini

Capgemini, one of the world's foremostproviders of consulting, technology andoutsourcing services, enables its clients totransform and perform through technologies.Capgemini provides its clients with insightsand capabilities that boost their freedom toachieve superior results through a unique wayof working, the Collaborative BusinessExperienceTM. The Group relies on its globaldelivery model called Rightshore®, whichaims to get the right balance of the best talentfrom multiple locations, working as one teamto create and deliver the optimum solution forclients. Present in more than 30 countries,Capgemini reported 2008 global revenues ofEUR 8.7 billion and employs over 92,000people worldwide.

Capgemini Consulting is the strategy andtransformation consulting division of theCapgemini Group, with a team of over 4,000consultants worldwide. Leveraging its deepsector and business expertise, CapgeminiConsulting advises and supports organizationsin transforming their business, from strategythrough to execution. Working side by sidewith its clients, Capgemini Consulting craftsinnovative strategies and transformationroadmaps to deliver sustainable performanceimprovement.

For more information:www.capgemini.com/consulting

Capgemini Consulting UKTelecom, Media & EntertainmentTransformation ConsultingBusiness Transformation

Approved by:Sipho Sithole, Head of Strategy and RiskManagement, SABC

David Candlin, Principal Consultant,Capgemini

T E L E C O M , M E D I A & E N T E R T A I N M E N T

subsequent stage, the team workedtowards procurement options, HRalignment and organizationalgovernance. The workshops helpeddefine priorities, mobilize the teamand secure business buy-in.

The final stage—implementation—allows the team to drive real savingsfrom operational efficiencies. Bringingthe Collaborative Business Experienceto life, it includes effective knowledgetransfer of methods and approaches tohelp the SABC drive business goalsforward. Transfer of accountabilityand ownership to SABC is critical tosuccess. The SABC is now geared upto deliver its commitment to “PublicService Plus” to the people of SouthAfrica.