A case study of the Revenue Management & Enhancement Programme undertaken by Ekurhuleni Metropolitan Municipality (EMM)
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1 A case study of the & Enhancement Programme undertaken by Ekurhuleni Metropolitan Municipality (EMM) Thinking Out Of the Box 29 July 2010
2 OUTLINE Introduction & Background Statement of challenges Financial Sustainability The customer The & Enhancement Programme Where are we heading Conclusion
3 INTRODUCTION Ekurhuleni Metropolitan Municipality (EMM) was established in 2000 from 9 former Councils A diversified industrial hub of South Africa Biggest rail hub and the busiest interchange in Africa EMM has 800, 000+ customers Divided into 20 Care Areas
4 COMPOSITION OF OPERATING INCOME (2008/09)
5 STATEMENT OF CHALLENGES # Challenge Impact 1. Economic downturn Payment levels reduced 2. Moderate spending levels over the years 3. Having to eradicate service delivery backlogs 4. Institutional reconfiguration Increased service delivery backlogs Surge in capital expenditure and tapping into savings Increased spending on salaries
6 DEALING WITH CHALLENGES Enhancement Funding Strategies Investment Protection Cash Cost Generation Financial Sustainability Robust Budgeting 6 Model
7 WALKING IN THE SHOES OF THE CUSTOMER Multiple owners of similar or same processes Multiple owners of revenue P e o p l e Strategy Policy Process Data & Information Systems Multiple owners of the customer...who takes ultimate accountability? Ownership of services is largely clear Product & Services
8 Operational Efficiency Strategic interventions REVENUE MANAGEMENT & ENHANCEMENT enhancement protection management generation 8
9 REVENUE PROTECTION Recognise that the CUSTOMER is the reason why we exist Align policy, process and technology to overall financial sustainability strategy Completeness of revenue (billing and collection) Removing any obstacles that would prevent the customer from paying us
10 Credit Control Monitoring & Evaluation PRIORITY PROJECTS Infrastructure ICT, Systems & Resources services 0 6m 6-12m CRM Meter Reading Bus Process Mngmt 12-18m Credit Control standardization Billing Integrity (Data Cleansing) Water Loss Selling of Debtors Automated BookMeter Reading (AMR) Integration Prepaid vending with GL Telephone Query Mngmt Including Financial call Centre Central Property Mgt System, Indigent Register System & Waste Mgt System Oracle Single View of Venus Electronic Bill Present Project Improve Master Data (CIS) OR Tambo IA Audit Accurate Data Key Accounts Top 500 Water & Electricity Consumers Landfill Gas Recovery Clean Development Mechanism - Carbon Credits Unmetered Areas Update of Indigent Register Indigent Leak Repair Siyakhokha Siyathuthuka Waste Service Point Audit EMPD revenue Property Valuation
11 CUSTOMER OPERATING MODEL Care Areas Contact Centre Fax Website (Online) SMS / MMS Twitter Facebook 1 2 Master Data General Queries Process Accounts Queries Fault Reporting Finance Water Electricity Relationship Auto / Standard Response Analytics & Intelligence Service Request Urban GIS & GPS Complaints & Feedback Emergency FAQs Booking of Facilities Political 3 4 Billing & Metering Community Relations Operations Centre & Dispatch Enforcement Political Office City (HODs, Dir, Managers) Performance City Secretariat
12 CUSTOMER PAYMENT CHANNELS Cash or equivalent ATM Internet Transfer Third Parties & Kiosks Card ACB / Debit Order Cheque Master Data General Ledger Payment Engine Automated Bank Recons Electronic Billing and Payment & Payment Analytics Service catalogue & pricing Accounts Enquiries Pre-paid electricity Account settlement Account Pre-payment Debt Collection Credit Control Business Platform + Billing Engine
13 PROJECTED REVENUE FROM Projected (Rand) PROJECTS Projected From Projects By Financial Year /11 to 2015/ / / / / / /16 Financial Year 13
14 PROJECTIONS FOR 2010/11 PROJECT NAME YEAR POTENTIAL ACTUAL REVENUE (PTD) RECEIPT (PTD) MPRA 2009/10 R 65,874, R 10, 430, ORTIA 2009/10 R 10,413, R 3, MINING OF BILLING DATA 2010/11 R30, 000, R9, 874, LANDFILL GAS RECOVERY EMM GAS RECOVERY 2011/ /13 R 30,574, EMM REAL ESTATE PROJECT 2009/10 R 43,000, R 3, 300, INTEREST WAIVER CAMPAIGN (1 October 10) 2010/11 R538, 000, EXPLORING SALE OF DEBTORS BOOK (30 June 11) 2010/11 R300, 000, Grand Total R 1,049, 712, R 27,
15 THE RMEP WILL DELIVER FINANCIAL BENEFITS AND QUALITATIVE ONES... Opportunity to integrate the organisation and break silos Identify bottlenecks and put in place solutions that will fix them permanently Identify new projects to enhance revenue and influence the strategic path of EMM Develop an internal consulting competency to ensure financial sustainability (process improvements, cost management etc.) 15
16 THANK YOU.
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