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The corporate world is currently debating the Protection of Personal Information Bill (PPI) which will soon be promulgated. Much of this debate centres on how onerous the minimum requirements for compliance will be, how long organisations will be given to comply and what the cost implications are likely to be.

Want to learn more about the Protection of Personal Information Bill? Visit the Deloitte Protection of Personal Information Bill website or contact Dean Chivers at dechivers@deloitte.co.za or Daniella Kafouris at dkafouris@deloitte.co.za.

Some companies have chosen to take a ‘wait and see’ approach. “Those companies that see regulatory changes as an opportunity for increasing business value adopt a more positive, proactive approach and also spend considerably less in achieving compliance over the long term,” comments Dean Chivers, Director Deloitte Legal, at Deloitte. “They are able to link compliance requirements to the entire value chain of the business so that each functional area buys into its importance, realises the value that can be delivered to the business and collectively bring about change to realise this value.”

Chivers cautions that companies should implement PPI compliance as prudently as possible. “Be realistic – your organisation may not be completely compliant by the time the Act is promulgated. PPI is not exclusively an IT or legal or a process or a security issue, it’s a combination of all of these. Create the framework within which PPI will be managed within your organisation, and then build awareness amongst staff around both PPI and your entities PPI compliance framework. This will start to drive PPI issues into your framework, thereby facilitating a proactive, self-regulating model.

Chivers recommends that a response strategy be established, with the responsible person being one who understands what the law requires.

“Decide on your corporate ethics policy and define and communicate it, teaching your organisation to look out for problems,” says Chivers. “If and when a problem arises, react quickly and correctly to deal with it and close the loophole. Look for triggers that indicate your processes are not working properly.”

According to Chivers, the PPI Bill will be the catalyst for companies to add value while achieving compliance. They should engage with their customers in the process and use it as an opportunity to build customer trust in the company by highlighting the company’s efforts to treat customer’s personal information with respect and confidentiality.

The following are just some of many opportunities:

There is tremendous advantage to be gained from proactively engaging customers ahead of promulgation, for example:

• Positive customer approvals are more likely to be obtained prior to promulgation and prior to the market being flooded with requests
• Valuable insights can be obtained from a company’s existing customer database now, ahead of customer requests for data deletion.
• Customers will become aware of the fact that PPI  will result in the protection of their personal information, something most  people will appreciate.
• Companies who lead the market in becoming PPI  compliant will gain customer respect and loyalty.

PPI can also deliver many potential positives within a company, to name a few:

• Technology gets the budget go-ahead for  middleware and data warehouses, new SAP modules, data security upgrades, etc, which  add value when linked to the overall business strategy.
• Data analysis of personal information for  purposes of PPI compliance can yield significant useful information around  customers and markets.
• Provides positive motivation to interface with  customers, alumni, potential employees, personal networks.
• Employee files get updated and remain up-to-date.
• Contracts are reviewed and updated and may even  be better than before.

Chivers recommends that the initial step should be a quick  start process prior to promulgation, followed by detailed design and implementation of value-adding initiatives. This will allow the company to gain  momentum and build a platform for future opportunities. Firstly, understand the  extent of PPI impact on customer and channel strategy, brand positioning and  employee proposition; determine possible impacts on people, processes,  technology and systems; and define key data requirements for business  sustainability.

Thereafter, look at the following opportunities:

• Identify value-adds beyond minimum compliance
• Design customer interactions to increase market share
• Realign processes for a more customer focused organisation
• Link to other initiatives such as process streamlining, productivity improvement and employee communication
• Select technology to support more than just data integration, e.g. non-intrusive technology options ranging from cloud technology, to separate software and simple upgrades
• Build the customer focused organisation by digging deeper into existing customer data
• Use an approach that first establishes the organisational needs and gaps before moving to an ‘all ends at once’ implementation
• Adopt a ‘build to last’ approach for ongoing organisational sustainability

In summary, organisations can gain measurable business performance improvements by approaching the Protection of Personal Information Bill as a strategic opportunity rather than an onerous compliance cost. Realising this potential value from the Bill, however, requires a shift in organisational mindset.

“Don’t be limited or restricted by your existing database,” says Chivers. “Use it as a contact list and first cut segmentation, design a meaningful database for future strategy and populate it by means of an automated permission campaign; don’t be restricted to a single tool or methodology – select those which are most appropriate for your needs; ensure your approach is strategic. Include change management in your implementation; don’t be purely focused on data analytics, ensure that your approach is aligned to your business priorities as well as people, process, technology and system enablers.

Chivers goes on to say “Understand how PPI affects your IT, legal, process and security options before jumping on the analysis bandwagon. Analyse the options and consider the best process for your company. There are a number of options, so give yourself the best chance of adopting the most appropriate one for your company.”

Want to learn more about the Protection of Personal Information Bill? Visit the Deloitte Protection of Personal Information Bill website or contact Dean Chivers at dechivers@deloitte.co.za or Daniella Kafouris at dkafouris@deloitte.co.za.

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Any experienced leader knows that little is accomplished by those who try to get things done. That’s because good leaders don’t confuse effort with results. Yet when it comes to security risks associated with technology, where a critical breach can bring a business to its knees, there’s a great deal of trying going on. And not nearly enough doing.

Not surprisingly, many executives today believe their organizations are well-protected. With broad policies in place for technology governance, risk and compliance, most have assigned responsibility for security to their IT shops, confident that their fiduciary and legal obligations are being met. But a closer look at the real risks and threats reveals a different picture. Organizations that take a compliance-oriented approach to enterprise and IT risk may not be managing many of the threats that matter most.

It’s not uncommon for companies to equate compliance and security. That’s what happened recently when a major retailer was hacked, exposing several million debit and credit card numbers to the risk of theft. The company appeared to have a rock-solid compliance program in place, asserting that they followed all the security requirements mandated by the credit card brands and others. But that wasn’t enough. A number of back-end systems were left unpatched, leaving some of their software vulnerable to exploitation. Hackers were able to penetrate the company’s systems despite their most diligent compliance efforts. Thousands of cases of fraud were linked to the breach, exposing the company to legal, reputational and financial risks.

A risk-based approach using a layered defense could have helped prevent such an incident.

Download the full article . . . .  Evolve or fail

We welcome you to visit the Deloitte South Africa Technology Risk Advisory website. If you have any questions or require a more detailed conversation, contact Cathy Gibson at cgibson@deloitte.co.za

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Restore the personal touch with employees by integrating social media and mobile with HR service delivery

Change is happening. Again. As social media and mobile devices quickly become essential parts of our daily lives, they are starting to influence how HR services are delivered and the direction HR transformation efforts take. Beyond just being the next new thing, integrating social media and mobile devices with HR service delivery can provide a real opportunity to restore some of the personal touch that was lost in previous pushes for improved HR efficiency.

Traditionally, HR service delivery has been based on structured and specialized interactions between the services HR provides and its customers (e.g., employees, managers, recruits). Typical scenarios might involve an employee who updates benefit options through an online a self-service system or who contacts an HR call center with specific questions about benefits.

Now, HR has an opportunity to use social media tools to create communities for sharing knowledge — and to support employees through direct, yet informal communication. Additionally, mobile devices can provide convenient, on-demand access to this knowledge and experience from almost anywhere in the world. Instead of contacting a call center, for example, an employee with benefits questions could use a smartphone to view and participate in a discussion thread where specialists and other community members share their own knowledge, opinions and questions.

The introduction of social and mobile technologies is not only expanding HR’s service delivery options, it is also increasing HR’s value to the business. Although social and mobile technologies will not entirely replace traditional HR channels, social and mobile tools are easing the burden while providing customers with a richer experience that is more engaging — and often more convenient.

What’s driving this trend?

Social media and mobile devices are effective tools that can help improve HR’s service and responsiveness.

• Breakthrough technologies. Mobile devices and social media are revolutionizing the way people interact, making it easy to communicate and share knowledge without regard to time, geographic location, or organizational boundaries.
• Business acceptance. Mobile devices and social media have become standard business tools. According to a recent study, less than 15 percent of business executives still view social media in business as a fad^.i
• Rising expectations. In their personal lives, many people have already come to expect the rich, engaging experiences that mobile devices and social media can deliver. Now, they are looking for the same thing from their interactions with current and potential employers. A recent article on Forbes.com featured a how to guide on using social media to land a job.ⁱⁱ

Click Here to download the full article

If you require a more detailed discussion around integrating social media and mobile with your workforce, contact Andre Hugo (Chief Marketing Officer and Director of Innovation at Deloitte South Africa) at anhugo@deloitte.co.za and Kamal Ramsingh (Technology Service Area Leader at Deloitte South Africa) at kramsingh@deloitte.co.za

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ⁱ “Capgemini Survey Reveals the Rising Importance of Social Media to Customer Care,” www.istockanalyst.com, July 25,
2011, http://www.istockanalyst.com/business/news/5311010/capgemini-survey-reveals-the-rising-importance-of-social-media-to-customer-care.

ⁱⁱ “How to Use Social Media Sites to Land a Job,” www.forbes.com , http://www.forbes.com/pictures/edej45lidk/how-to-use-social-media-sites-to-land-a-job#content.

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Rapid technology developments in wireless connectivity and mobile devices marked the beginning of the mobility revolution. Next came the apps renaissance, when intuitive, engaging pieces of software, tailored for smartphones and tablets, began to change our day-to-day lives. The revolution has now reached business. Many organizations today find mobile initiatives popping up in every business unit, in every region and in every department. The floodgates have opened. Now what?

For some, the path forward might begin by pushing existing solutions and processes to mobile channels, without blue-sky thinking of how business might change if location constraints disappeared. For others, disciplined experimentation can reveal compelling scenarios, which can lead to doing traditional things differently, as well as doing fundamentally different things. When left to its own devices, each faction – individual, department or organization – will struggle through the learning process towards its own vision of mobile enlightenment.

In this chaotic environment, CIOs face three challenges. First, they need to build capabilities to deliver intuitive, user-friendly mobile applications that can meet or exceed expectations set by consumer technologies. Mobile delivery requires new skills, new mindsets, new application architectures, new methodologies and new approaches to problem-solving. Above all, solutions must focus on usability – design-led thinking with mobile mentalities. Scope should be reined in to create well-defined, elegant solutions that address explicit problems, not broad collections of functionality. User experiences should be mobile-centric, based on touch/swipe/talk, not point/click/type. Leonardo da Vinci’s description of simplicity as the ultimate form of sophistication might be a foreign concept to many central IT departments today, but it is also a prime directive. As mobile becomes increasingly important in customer and employee interactions, the complexity of applications, or apps, will naturally grow with heightened integration, security and maintenance needs.

The second challenge for CIOs is to help the business deliver innovative applications with significant potential for positive disruption. Experimentation can be a good way to show progress and help crystalize opportunities, but many use cases remain uncharted. Until users interact with an early prototype, they may not know what they want, much less what they need. CIOs can become beacons of big-picture thinking and tactical adjudication by embracing the proliferation of mobile initiatives, and accelerating the mobile adoption learning curve across the organization.

The third challenge is that mobility introduces yet another level of complexity that CIOs must manage and support at an enterprise scale. What’s an effective way to deal with pressure to get behind each “next big thing”? Should employee-owned devices be allowed on enterprise networks? And if so, what data, applications and services should they be permitted to access? How should IT practices change to support mobile applications? True enterprise-class mobility requires governance, security, privacy and compliance policies – with effective management of mobile devices, enterprise app stores, mobile middleware and more. The trick is to build a solid foundational infrastructure without throttling the business. As you likely know, the business can’t – and won’t – wait for a fully formed mobile enablement roadmap to be defined and put into place.

If you have any questions relating to this article, or require a more detailed discussion, contact Kamal Ramsingh (Head of Technology – Deloitte South Africa) at kramsingh@deloitte.co.za

Would you like to read the full article? Click Here to download Deloitte Tech Trends 2012

Do you have any comment or feedback? We would love to hear from you!

Richard Mc Williams and Frank van Niekerk, directors at the Deloitte Consulting Technology practice have written a paper which lists key factors that executives and their boards need to consider when formulating their ongoing enterprise resource planning (ERP) investment strategies. An introduction is provided below with a link to download the full article.

If you have any questions relating to this article, contact Richard Mc Williams at rmcwilliams@deloitte.co.za or Frank van Niekerk at fvanniekerk@deloitte.co.za.

Download the the full article . . . . ERP investments are back on the agenda

Once the world had got past 1 January 2000, relatively unscathed, and the cumbersome ERP implementations were complete, bedded down and functioning as required, we saw the investment in ERP solutions taper off, and there were constant rumours about the demise of ERP, as discussed in Deloitte’s Tech Trends 2011: The End of the “Death of ERP”. However, according to this article, “ERP is seeing resurgence. SAP recently reported a 34% surge in licensing revenue at the end of 2010 to a new record, while Oracle projects licence sales will increase between 10% and 20% in their current fiscal quarter 4.”

Why is this? One of the reasons that we have identified is that the investments made in 1999 have become out-dated and require upgrading. Technology has progressed rapidly (in all areas, including ERP), and the external factors mentioned above – specifically increased competitiveness and globalisation – demand updated solutions. Another reason is that ERP choices, made 12 years ago, may not be relevant to future investments.

In some cases, ERP vendors who were around then are no longer in business. Investment in these solutions has been curtailed and a skills shortage of support consultants has developed, making the ongoing cost of ownership, of what was initially perceived to be an affordable alternative, increasingly expensive. Upgrade paths may be as expensive and challenging as implementing a new solution, leading many organisations to consider a large-scale investment in a new ERP solution.

So, for organisations that have recognised that the writing is on the wall and that they need to update their ERP, what is the major difference between then (1999) and now? In 1999, they simply had no choice. They had to implement a new solution. The justification was a well-known and widely accepted fact of life – it was a non-discretionary investment. Nowadays, many upper mid-tier and lower large-scale organisations do not have the budget or resources freely available to fund a large-scale ERP investment; and because there is no burning platform, they need to make a semi-discretionary investment decision.

These organisations need to review all the options and develop a robust business case. Some of these options include: should the current solution be upgraded, re-implemented or replaced? How does the organisation make the most of its already significant investment? What about concerns such as disruptions to the business and the impact on staff and other stakeholders such as customers and suppliers?”

Download the the full article . . . . ERP investments are back on the agenda

If you have any questions relating to this article, contact Richard Mc Williams at rmcwilliams@deloitte.co.za or Frank van Niekerk at fvanniekerk@deloitte.co.za.

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I have provided an introduction below to a publication (which applies to all members of the C-Suite) prepared by the Deloitte Integrated Reporting and Sustainability team, which discusses the state of Integrated Reporting practices in South Africa. The publication contains the key findings of the empirical research conducted on 100 companies listed on the Johannesburg Stock Exchange.

The analysis covered 7 subjects, 58 principles and 160 questions seeking to assess actual performance against good practice. The publication includes practical observations on certain topical subjects which appear to be a challenge for companies. I have provided an excerpt below and will send you the full report upon request.

If you would like to discuss the contents of the report in more detail, please contact Bertie Loots (bloots@deloitte.co.za), Nina le Riche (nleriche@deloitte.co.za), Johan Erasmus (jerasmus@deloitte.co.za) or Jaco Pretorius (japretorius@deloitte.co.za).

Integrated Reporting: Navigating your way to a truly Integrated Report

Integrated Reporting is the new kid on the block … and like many new kids there are great hopes for its future including the ultimate achievement of embedding a strategy that preserves long-term value, simplifying reporting and adding more meaningful information to a wide range of users. But where does the idea come from? What is it trying to do? And what is the current state of development?

And before you think this is just for the accountants, think again. Integrated Reporting aims to incorporate everything from strategy through to risk management; from financial reporting to the inclusion of usage of other capitals (think societal and environmental impacts). And it aspires to meet the needs of a wider group of stakeholders – employees, customers, suppliers and others. So everyone associated with an organisation in a significant way is likely to be touched by it.

At Deloitte, we see Integrated Reporting as enabling a process which enhances and preserves long-term sustainability in all its dimensions, without unduly sacrificing short-term performance. The Integrated Report is in turn an annual report that comprises a holistic and integrated representation of the entity’s efforts to enhance and preserve long-term sustainability in all its dimensions, without unduly sacrificing short-term performance.

Deloitte has released its second quarterly report on the state of Integrated Reporting in South Africa. The report reveals that Integrated Reporting standards have been adopted by more than half of South Africa’s listed companies. Although it is now necessary for these JSE-listed companies to include a statement of compliance with the principles set out in the King Code on Governance Principles (King III) in their annual reports, many companies are still scoring surprisingly low on corporate governance matters.

Download the publication . . . .  Integrated Reporting – Navigating your way to a truly Integrated Report

We value your comments and feedback. If you have any questions, do not hesitate to contact us!

This paper, written by Deloitte Consulting, provides board members and executive leaders with a practical approach and framework to evolve their relationship and optimise governance effectiveness. If you have any questions, contact Gert de Beer at gedebeer@deloitte.co.za, Garth Bell at gbell@deloitte.co.za or Carla Clamp at cclamp@deloitte.co.za.

Boards and Management renew their vows – A new era of collaborative leadership

A renewal of vows is a symbol of a renewed commitment between two parties. Sometimes parties renew their vows to celebrate relationship milestones and reaffirm their commitment to each other; other times, they renew their vows after a challenging period in their relationship, when their commitment to each other and their relationship has been tried and tested.

Arguably, the Board–Management relationship has been through a challenging time. It suffered a protracted period of scrutiny and tension due to various scandals over the past decade resulting from lack of oversight and accountability (Enron and Worldcom being the most notorious). This has resulted in corporate governance reform across a number of national and international jurisdictions, with a specific focus that boards and executive management be held increasingly accountable for the actions of their organisations. This heightened accountability has put a strain on the Board’s relationship with Management, a strain that has intensified during the recent financial crisis and which has resulted in the increase in Board oversight and involvement in corporate strategy, risk management, executive compensation and achieving sustainable, high-performance cultures. Although increased Board scrutiny on these dimensions is likely to improve business performance and better serve the interests of the shareholders, managing such a large agenda is challenging, and Boards cannot do it in isolation. The reality in this day and age is that Boards must work with Management to both inspire organisational performance and address the expanding accountability agenda. A significant challenge in this regard is the Board’s ability to engage and collaborate in a way that does not compromise its objectivity and independent oversight role.

To achieve the desired Board–Management relationship, a change from the status quo is most likely required for most private and public enterprises. For those organisations that aspire to strengthen longer-term performance and optimise governance effectiveness, the starting point is to understand the current governance culture and the Board–Management relationship, and how they need to evolve.

With this strategic opportunity in mind, this paper will provide Board members and executive leaders with a practical approach and framework to evolve their relationship and optimise governance effectiveness. Furthermore, it outlines an approach to collective leadership which should ultimately enhance organisational performance, increase shareholder value and address the need for increased accountability for inspiring and optimising the commitment of employees to strategic direction and operational performance.

Read the full article . . . . Boards and management renew their vows

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A new book from Deloitte cuts to the core of analytics excellence.

Are you prepared to see analytics in all its grubby, geeky, potentially revolutionary glory? It all starts with asking crunchy questions to tackle your most sticky business issues — and ends with getting answers you can trust.

Many business leaders already know the inherent value of analytics insights for improving operations and driving smarter decisions. But amid all that potential, companies continue struggling to build truly fact-based cultures. They talk a good game, but when you look deep inside their organizations, there’s not much under the hood.

The benefits of analytics seem clear, and many executives can rattle off a list of potential gains. Cost isn’t the issue. The best analytics investments are self-funding. And there’s no lack of affordable technology. So what’s missing?

Learn more about the practical steps to jump-start business analytics efforts that deliver uncommon insights and breakout value in our new book, Crunchy questions for sticky issues: Using analytics to outsmart competitors.

Download the book . . . Crunchy questions for sticky issues

Do you have any questions? Contact Ashleigh Theophanides at Deloitte South Africa at atheophanides@deloitte.co.za

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This article, written by Francois Burger and Pieter Louw of Deloitte Business Process Solutions, talks about the challenges associated with expansion into Africa in terms of technology infrastructure and resources and ways to address this. If you would like to find out more, contact Francois or Pieter at fburger@deloitte.co.za or pilouw@deloitte.co.za.

Foreign direct investment in Africa has increased strongly over the past decade, and capital inflows are forecast to reach US$ 150-billion by 2015. Inevitably, this improvement in investor perceptions is the basis for global business leaders to include Africa in their strategic plans.

However, this rapid expansion and capital investment are placing an intolerable pressure on the people, processes and technology currently available to organisations intending to participate in Africa’s development.

Too little too soon

When it comes to execution of expansion strategies, the desperate shortage of skilled management resources in Africa’s developing economies makes most organisations too dependent on a few key people, most of them being expatriates. Thus, the war on talent is becoming increasingly fierce, triggering a high staff turnover in business-critical areas such as financial, procurement, human resources and technology management. Succession planning is almost unattainable, putting business continuity at risk.

Without the skills and experience required to design and implement them and without the information systems to subsequently monitor them, business processes are woefully immature. Reporting is irregular and infrequent, controls are random and often ad hoc, and governance is theoretical at best. Process workarounds are the norm.

Technology, which should be the means of catapulting Africa into the mainstream global economy, is limited very often by ageing legacy systems, the lack of infrastructure to support high speed, the lack of secure data exchange, inadequate system and network support and insufficient direction of technology strategy.

Professional services are thin on the ground and highly fragmented, with limited integration across different functional service areas.

The answer already exists

As is often the case, however, the challenges of Africa’s growth contain within them their own solution.

Since there is fragmentation of people, processes, technology and professional services, the answer then is to tap into integrated capabilities across all four areas. There is also very little depth of strategic and operational experience. Why not take advantage of a single, coherent source of experience that has been garnered across all industry sectors in many differently sized organisations in many different areas of the world, including Africa?

And, if infrastructure is lacking, why not gain the Opex and Capex benefits of sharing infrastructure?

In other words, if one applies the opposite to each negative, one can begin to create a realistic, cost-effective way of being in Africa as it reaches its tipping point.

The approach we suggest when expanding into Africa:

• If you are unable to comfortably manage your own technology infrastructure and associated resource requirements, shared services is a viable option
• Work with a reputable organisation that already has a footprint in Africa and has the ability to attract and retain talent
• Things to look for in a shared service provider is the ability to combine centralised strategic skills with on-the-ground, in-country, operational specialisation
• The shared service provider should enable you to tap into collective, multi-disciplinary, integrated skills and experience and still get a solution tailored to your  own particular needs
• Look for a reputable service provider that has an established service delivery centre that provides flexible models from where you may draw integrated professional services
• You should have access to a central pool of subject matter experts and proven methodologies and operational resources through in-country specialists who are supported by local offices
• Work with a provider that has strategic partnerships in place with third-party suppliers, such as network operators and IT infrastructure providers, who have the same strategic approach and in-country operational experience

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Leana du Plessis from Deloitte has written a short piece on the impact of technology infrastructure when doing business in Africa. Contact Leana at lduplessis@deloitte.co.za should you have any questions or require additional information.

The Impact of Technology Infrastructure on doing business in Africa

The transformation and challenges that twenty-first-century organisations face are vast and varied. Whilst progressively more pressure is being placed on organisations to continually improve and increase productivity and revenue, the pace of change in the new global economy has brought about its own unique set of constraints and challenges. Integration of information systems, new structures, business processes and the reallocation of functions and powers, to name but a few, have indeed created a new and challenging business environment. ICT is seen as the magic wand that can increase efficiency, provide access to new markets or services and create new opportunities for income generation and improving governance.

But what if you are in Africa? Africa has had its own challenges with inter alia diversity, political instabilities and the lack of proper IT infrastructure. Is this still true, and what challenges can you expect if you intend doing business in Africa?

The South African mobile phone companies’ success stories of mobile technology (200-million subscribers in early 2007) and telephony in Africa have changed the landscape and infrastructure availability radically. Network infrastructure has increased significantly over the past 12 to 18 months, and the cost has decreased as more players entered the market. However, it is still less affordable than in South Africa with limited options.

The lack of proper data centres and management of infrastructure is still a concern, and there is a serious skills shortage in the IT market. Legislation and regulations are limited in most of the countries, and this can open a risk for organisations that operate from South Africa, especially around privacy and protection of data. 

Service providers in many African countries are not used to Service Level Agreements (SLAs) and delivering or managing according to agreed SLAs. A number of organisations are managing the infrastructure from South Africa, but that has its own challenges with the delivery of services from a distance.

Did you find this useful? Is there anything you would like to add? We welcome your comments and feedback!