WCO ICT Conference Developing IT Project Proposals A Strategic Perspective

Transcription

1 WCO ICT Conference Developing IT Project Proposals A Strategic Perspective June 2016 E X P E R I E N C E I N N O V A T I O N D E L I V E R Y

2 2 Challenges Shaping Customs Context SERVICE LEVELS INCREASING TRADE VOLUMES CAPACITY BUILDING INCREASING THREATS CUSTOMS REGULATORY / LEGAL TRADER COMPLIANCE

3 3 Key Principles for Modernising Customs Coordinated Processes Re-Architected Ports Embedded Security Knowledge Sharing and Collaboration CUSTOMS Focused Resources Innovative Technology

4 4 Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty, lies opportunity Albert Einstein E X P E R I E N C E I N N O V A T I O N D E L I V E R Y

5 5 Realising the Value Proposition Employ a comprehensive methodology starting with a diagnostic to establish a baseline for business transformation. Establish Baseline This is followed by a progressive and iterative process that involves: 1. Defining a future strategy; 2. The capacity to deliver; and, Implement Programs & Initiatives Build Delivery Vehicle 3. Ensuring that innovation and performance continuously improves. CONTINUOUS IMPROVEMENT

6 6 Strategy Driven and Results Orientated DIAGNOSTIC STRATEGY & BLUEPRINT SOLUTION DESIGN BUILD PILOT IMPLEMENT SBS MODERNISATION LIFECYCLE You cannot change what you don t understand. Understanding a problem is the first step to finding a solution Understand the context Structured Approach Rapid development and deployment methodology Deliver stable, on the ground results.

7 7 Strategy Driven and Results Orientated A structured framework to analyse the domain of Customs, Excise & Border Management METHODOLOGY A Compendium of worldclass leading Customs & Excise practices and modernisation principles EXPERIENCE PAIN POINTS CURRENT CAPABILITIES STRATEGY & PRIORITIES BUSINESS SYSTEMS GAPS & OPPORTUNITIES QUICK WINS Cloud-based application to quickly map capabilities and identify pain points INNOVATIVE APP TRANFORMATION ROADMAP A comprehensive exercise to establish the requisite data points that will inform and shape the future strategy, innovations and programs It provides answers to the following questions: What is the organisation doing well (and not well)? What are the main pain points? What systems can be kept & which need to be replaced? Do the current structures support the future state? How will success be measured? What are the key priorities and in what order should transformation initiatives be implemented?

8 [244] Diagnostic Process DIAGNOSTIQ Evaluate Analyse Report Improve 41 Cu Customs 31 Ex Excise 73 Ic Customs & Excise ICT 44 Tf Trade Facilitation 94 Dc Customs Data Cube Analysis 92 Sw Single Window Insight into the state of the agency versus the outcomes it seeks Evaluation and mapping of the Agency s capabilities Definition and quantification of pertinent issues and problems A set of options to address issues and improve performance A roadmap for Modernization Diagnostic provides: Context and Understanding Critical Strategic Direction

9 9 DiagnostIQ Customs Data Cube Analysis Establishing the DIQ Data Fact Base 1 Cleanse & Prepare Identify System landscape & Data Sources Acquire, Profile, Assess Data Quality, Cleanse, Transform & Augment Data 2 Profiles & Baseline Stats Trade and port profiles Heat Maps Risk Management Perf. Trader Analysis Commodity Analysis DIQ Customs Data Cube Insights & Analysis 3 Data Cube Analysis Multi-dimension analysis Correlation with additional data sources Key Findings & insights for follow-up Trader OUTPUTS Strategic Insights Supports key decision making and strategy development Fact Base Understanding the Agency s performance baseline Business Intelligence Key trends and findings relevant to the Agency across domains of risk, operations and systems

10 SPREAD OF CAPABILITY RATINGS 10 Output from DiagnostIQ Capability Benchmark 100% Leading Leading Advanced Leading Advanced 75% Advanced Advanced 50% Basic Basic Basic 25% Basic 0% Strategy Risk ICT Ops.Enforcement Management Management Customs Basic Advanced Leading Leading Advanced Basic Ops.Enforcement Tax Leading Advanced Basic Org Management Benchmarks Strategic insights and a fact base Operational measures and KPI s Opportunities for improvement Inform development Provides a comprehensive data analysis of agency performance Core Customs Process Entity Management Cargo Management Declaration Processing Risk Assessment Inspections Release Audit IT & Automation Risk Management Integrity Controls Key Performance Indicators Customs Control - Knowledge & Training Key Issues / Comments Possible Solutions Limited view of entities as measure of risk Entity risk is not part of declaration risk scoring Entity risk is very relevant in Customs, e.g., smuggling, Ghost Exports Analyses of registration data for currency and accuracy against transactions history. Further Segmentation of trader base to inform risk management. Transit control system is basic and can be easily circumvented Transit risk (-$$$) is typically very common in relevant benchmarks Data Analyses required to estimate extent of problem. Strengthen transit controls and inspections via transit system and risk engine? Current system embodies Gatekeeper mentality is 100% paper based and 100% control based Provides Customs a false sense of control Risk based or even random document checks Paper based controls Risk engine is simple rules based and hit rate volume is too high and yield is too low Few analytical tools for assessment (e.g., valuation data base) Review risk engine functionality and governance. Begin establishment of Customs risk knowledge base. High potential to embody culture of collusive corruption (-$$$) Inland clearance sites rely on few inspections. Agent chooses inspector based on current paradigm Land borders? Assembly line approach to desk processing Everyone can make system changes not monitored/audited. Paper based, dependent on broker processing even for no/low risk. Customs specific knowledge is lacking. Poor appreciation for the difference between Customs and tax audits. Merging audit functions and systems needs to be done carefully. TRADE PROFILE PORT PROFILES PROCESSING TURN AROUND TIMES STAFF THROUGH PUT INTERVENTIONS INSPECTION YIELDS INTEGRITY MEASURES

11 Resource Distribution 11 Strategy Driven and Results Orientated STRATEGY Solution Concepts PROCESS & POLICY Business Processes & Procedures PEOPLE Capability Requirements TECHNOLOGY Functional Specifications Trader Management Declaration Processing Resource Distribution across Customs Process Lifecycle Systems Designs Inspection Management Risk Management Manual Acquittal of Manifests Data Capture Errors Manual workflow Paper Doc Checks Manual Reporting Filing Paper System Work Around Manual KPI tracking Paper-based audit selection Multiple Registrations Paper Based Registrations Registration Targeting Cargo Control Value-Adding Effort Declare Assessment Inspect Audit Systems Architecture Core Functions/Processes Risk Indicators: Score: 68 Type: Counterfeit Intervention: Tailboard & Sample A sound solution blueprint must include all components to ensure benefits are realised. LEGISLATION

12 12 Strategy Driven and Results Orientated ASSUMPTIONS Underpinning project benefits, sequencing and dependencies DEPENDENCIES Inter-dependencies between activities that determine sequencies to be monitored and managed START MONTH 3 MONTH 6 MONTH 9 MONTH 12 MONTH 15 MONTH 18 INITIATIVE PRIORITISATION & TIMELINE PROGRAMME TIMELINE Gannt Chart Visually see dependencies between activities to identify and manage the modernisation critical path PROGRAMME COST MNGT. Estimate of initiative costing as input for budget management and control 100 EFFORT ESTIMATE 75 Underpinning project benefits, 50 RESOURCE UTILISATION sequencing and dependencies Total (100%) External (70%) Customs (30%) YRS RESOURCE UTILISATION Assigned teams, available capacity and utilisation for transformation activities

13 13 Strategy Driven and Results Orientated Organization x Value chain Detailed process map and data flow KPIs for each part of the value chain Business Operations Business value chain 1 Product development 2 Marketing and sales 3 Policy issuance 4 Policy servicing 5 Product development Product analysis Support value chain Marketing/CRM Channel management Sales Information collection and check Authorization/exception management Quotation/negotiation Risk assessment, coverage, underwriting, pricing Policy issuance Group life and other special products (specific to life) Customer information requests on existing policies (e.g., call center, Web) Changes in existing policies (data and conditions) Policy termination (by customers and by insurer) Collections and payments Renewals (specific to P&C) Claims management Notification and contact Segmentation and assignment Investigation and loss assessment Negotiation and settlement Litigation Recovery (specific to P&C) Coordination with external legal counsel and other experts 6 IT: IT architecture management; applications development and maintenance; infrastructure management, and data centers 7 Basic support services: postage and logistics, facility management 8 Other support services Investment management/asset management Definition of client 8.1 mandate Setup of mandate Management of and allocation client assets Settlement and transaction administration Accounting Asset-based reporting Risk management 8.2 Risk identification Risk measurement Risk reporting Risk management 8.3 Others: CEO office; supply chain management; HR; communication; finance/controlling/accounting/treasury/tax Functional domain map Business capabilities & data Data model Business Capabilities IT Applications Application domain map Target application and integration architecture Business object map IT Integration Platform

14 14 Strategy Driven and Results Orientated PEOPLE PROCESS Big Data Track and Trace Single Window Crowd Sourcing Cloud Computing One Stop Border AEO TECHNOLOGY LEGAL

15 15 Strategy Driven and Results Orientated PEOPLE PROCESS TECHNOLOGY LEGAL STRATEGY

16 16 Strategy Checklist Informed by facts and aligned with values Clearly defined and unambiguous Realistic Understood at all levels Inspire action Implementable Measurable Sustainable

17 MANAGEMENT CONSULTING FOR CUSTOMS, EXCISE & BORDER MANAGEMENT Sovereign Border Solution is a boutique consultancy that brings together real-world experience, progressive thinking and proprietary tools and methodologies to deliver tangible results for our clients. Strategy & Advice We serve as objective advisors to clients in both the public and private sectors, including Governments, private solution providers and system vendors and NGOs. Knowledge & Expertise Our staff brings deep domain knowledge in the field of Customs, Excise and Border Control, combined with leadingedge business management and information technology expertise. Leading Tools & Methdologies Together with our proprietary tools and methodologies, we deliver strategic analysis that drives the optimization or modernization of operations, systems and procedures. Ziyaad Butler Director: Business Strategy Tel: Zbutler@sbordersolutions.com