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     KRAKOW 3-4 JUNE 2004.
   Theme 2 Friday , 4 June 2004

The Impact of Information and
Communication Technologies (ICT)
 on the Structure, Organization
and Administration of
 Social Security Schemes

Dr Adam H Mayingu
Dar es salaam, Tanzania
       This Presentation highlights;

 The alignment between business strategy and
 ICT deployment ; a PSPF case study.
 Challenges faced by developing countries in
  adopting ICT.
 How ICT development affects the structure and
  organisation of scheme administrators.
             1.0   Introduction

The demand for quick, efficient and secure
service delivery to clients as well as other
stakeholders’ expectations has made the
administration of social security schemes and
Governments adopt new business models that
embrace the use of ICT .
     2.0   Social Security Institutions from
            Corporate Perspectives.

Social security schemes like other organisations
develop their Corporate Strategic plans that
guide them for a particular planning horizon .
“A Strategy is a unified, comprehensive and
  integrated plan that relates the advantages of the
  firm to the challenges of the environment. It is
  designed to ensure that basic objectives of the
  entreprise are achieved through proper
  execution by the organisation” (Jauch and
    Strategic planning delivers amongst
                  others :-

· A plan that is aligned with the vision and
  objectives of the organisation.
· An assessment of business trends - How the
  functional mission is changing.
· An assessment of corporate trends -
  Organisation and Component directions.
· An assessment of technological trends - What
  will be economically feasible and relevant in
  the future.
· A plan to satisfy the critical information
  requirements of the organisation.
           3.0   ICT Development.

The cost of equipment going down and increase
of processing capacity .

Distributed systems- small systems, need for
resource sharing and up to date information

Diversity of networking options, LAN, WAN,
broadband,wireless which is faster to deploy.

Emergence of internet and World Wide Web.
            4.0   Typical use of ICT

4.1 Introduction to PSPF
  Established by the Parliament of the United
Republic of Tanzania through Act No.2 of 1999
to provide for contributions to and payment of
pensions, gratuities and other benefits in respect
of the service of officers in the Government and
employees of Executive Agencies.

  From July, 2004 the Fund will start to pay
various benefits to members.
 4.2 The Business and Administration
      Functions for Automation
Pensions and Benefits Administration.
 Finance/Accounts and Investment
  Integrated Payroll and Human resource
  Office automation systems, internet/intranet
  Document Image management system linked
to respective databases.
  4.2 The Business and Administration
       Functions for Automation

  Help desk management system/ problem-log
tracking system.
 Web site to facilitate information delivery to the
members, employers and the public in general.
 Having temper-proof Identification cards for
   4.3 The approach for software
   The Fund opted for off the shelf solutions
   because by buying from outside:
1.    The management will focus on core business
    rather than Information technology
2.    The services and support will be offered by
    specialist providers.
3.    There will be great flexibility through
    freedom of choice.
4.    More control due to customer-supplier
5.    The system will be up and running within a
    short time.
 4.4             Project management methodology.

The methodology adopted by PSPF and how it
fits in the overall project life-cycle is
conceptually shown in the figure below.
                              Oversight / Quality Control / Executive Review

                                        Project Management Processes
                                              Project Time Frame

                      Project        Planning &         Project          Project
                    Concept and                                                      Project
                                        Risk            Startup/        Execution
                     Definition                         Baseline                    Close-Out
 Business & IT                                                                                  Operations/
   Planning                                                                                     Maintenance
         4.5       Project Achievements.
         4.5.1 General Systems architecture

The Fund has decided to go for a 3-Tier Client/Server
In this model, a front-end application will communicate
with a dedicated application server process (agent) running
on a server on the network. .

The reasons that prompted the Fund to go the 3-Tier way
are improved system scalability, improved responsiveness,
real-time processing ability and much smaller (and
therefore easier to debug) front end-applications.
4.5.2 Application Software and Databases
Application/product                      Remarks
Pensions and Benefits Administration Operational, benefits awaits July
System(ComPen)                       2004.Upgraded to GUI and
Accounts/Investment system               Operational but investment not fully
(SmartStream)                            accommodated
Document                  Management Operational except the workflow
Payroll and Human resource               Operational except HR
(e-horizon)                              implementation still on going
Office Automation Products with            Operational
intranet and internet (including web site)
Enterprise Portal                        Operational

Help desk                                Operational
Smart cards-IDs                          Operational
  4.5.3 Pensions Administration System –
              Com_Pen 2000

Architecturally, The Com_Pen 2000 system will be
configured in a 3-Tier configuration.

A pictorial representation of the logical model of the
Com_Pen 2000 system to be put in place is depicted
here under:
4.5.3 Pensions Administration System – Com_Pen 2000
                                        Enterprise Portal (EP)/Enterprise Integration

                                                                                Application and User level Security

                                                                             Acu thin
                                          Workflow                           Report writer                     Cheque printing

                                          contr. update

                                                              Monthly Int.






    Tools & Utilities                    Help                 Letter                           Audit               Menu           Security
                                                              generator                        trail                              register

                                        Core              Defined        Defined          Fund           Pens.          Loan     Funeral     Document
    Fund    admin.                      module            contr.         Benefit.         Acc.           Payroll        Admn.    Benefit     Image Mgnt

                                                                                  Database & OS Security

    OS & RDBMS                                               AcConnect                                        cuCobo Runtime

                                          Sybase & Unix (Linux Red Hat)
4.5.4 Accounting System– SmartStream 6.5

SmartStream is an integrated accounting enterprise
resource planning (ERP) application designed for large

SmartStream is embedded with workflow technology
that facilitates the flow of work among users
automating manual and repetitive processes.
4.5.5 Document Image Management Application –

PSPF stores scanned images of Letter of first appointment, letter
of confirmation on pensionable terms and registration forms
bearing photograph and fingerprints for all members of the
Fund. The Fund has acquired a specialized software product
called LaserFiche for archiving, managing and retrieving of all
organizational documents with a view of creating a paperless
office environment. The system has in built workflow which
enables the users to send document on-line just as physical files
are handled.

Horizontally this application is integrated with other
applications, particularly the pension administration system
(Com_Pen) for easy of documents retrieval during pension
4.5.5 Document Image Management Application –
 Sybase Enterprise Portal (EP)

All the systems as described above are wrapped
together within the enterprise portal (EP).

Benefits of having the Portal in place
 Single sign-on facility ie seamless single point
 Simple integration
Architecture with EP (Horizontally &
         vertically integrated

 Compen   SmartStream   e-Horizon   DIM   Helpdesk

      Databases & Operating Systems:

 Oracle 9i Standard edition, unlimited users
 Sybase Adaptive Server Enterprise 12.5

Operating Systems:
    Red Hat Linux 7.3
    Windows 2000 Server
    Windows 2000
           Hardware Acquired

Flat monitor PCs with Cordless mouse and
  keyboards, radio/Tv tuner cards

  NAS and servers

  Broad band internet with security system.
                 What Happened?

 The Project Sponsor had been very supportive thus
 influencing other stakeholders.

 The project implementation is included in the CEO’s
 progress report to every meeting of the Board of Trustees.
 The Fund now has the capability of making prompt
 payments and members’ records are up to date.
                    Technical Issues
While we had planned to standardise on one type of RDBMS;
circumstances forced us to go for two.

For some reasons such as un-certification of some platforms by
contracted vendors we started with 2 tier and later on will move
on to 3-tier architecture.

The envisaged ICT infrastructure was to have an elaborate
Executive Information System that gives management an up to
date status of the operations.

On the pensions administration; we requested an upgrade to
GUI and change of database type which the supplier estimated it
will take 4 months but it ended up going on for 8 months.
It has been clear that our ICT strategy has been far ahead of
all suppliers especially the integration

The state of the art ICT also had problems being understood
by some consultants (e.g. wireless keyboards and mouse, the
3-tier architecture).

Getting competitive proven software application product for
pension administration was difficult.
    Human Resources and other people
 Referred to here are the fund administration
 staffs as well as the stakeholders.

• The Fund hired specialised computer training
  experts who carried out the training to all
  staff including the CEO on how to use
• Payment of benefits has been outsourced to
  financial institutions through competitive
Relation with partners

  So far with the exception of one supplier; the
  relations have been relatively good.

• Wireless equipment-at early days knowing
  that the equipment require batteries
  replacement was difficult especially the very
  early days
   5. Adoption of ICT and the Challenges to
            Developing Countries.

In developing countries ICT adoption faces a
number of obstacles
 such as absence of power, literacy among the
potential users, technical
 expertise to support and maintain ICT infrastructure
 and the major obstacles being poor
telecommunication and lack of Computers
5.1 Telecommunication
  There is quite a promising future as deployment of mobile
  phone infrastructure is moving fast rather than the land lines
  Africa Mobile phone subscribers increased by over 1000%
  between 1998 and 2003 to reach 51.8 million compared to
  fixed line, which stood at 25.1 million at the end of 2003.
  The continent’s rapid mobile sector expansion has been
  driven by a combination of factors: demand, sector reform,
  the licensing of new competition and the emergence of
  major strategic investors, such as Vodacom, MTN, Orascom
  and Celtel [African Telecommunication Indicators 2004].
 Developing countries –Telecommunications:
Indicator                                   Developing Countries   Tanzania
Daily newspapers per 1,000 people           49.1                   3.9
International Telecom, outgoing             144.4                  74.6
traffic(minutes per subscriber)
Mobile phones (per 1,000 people)            16                     5.5

Radios(per 1,000 people,1998)               257.2                  371.0
Telephone average cost of local call(US $   0.1                    0.1
per three minutes)

Telephone mainlines(per 1,000 people)       82.1                   5.3
Television sets(per 1,000 people)           196.5                  21.4

Source: World Bank Development Indicators (
            Mobile Phone usage in Africa
Global Mobile users                      1.32 Billion
GSM Usage in Africa                      95.61 %

GSM growth of users in Africa in         101.85%
the past 12 months
Global GSM growth of users in            52.49 %
the past 12 months
Total Number of African                  34.3 Million
subscribers (all technologies)
The biggest market is in South           14.4 Million users and
Africa                                   expected to 19 Million
                                         users by 2006
Source: BBC Focus in Africa, Jan-March 2004 pp20
5.2   ICT Equipment.
  In order to take advantage of the wireless technology,
  applications need be developed and integrated/interfaced to the
  current systems. "Mobile technology is the Information Society
  in Africa", explains Michael Minges, Head of ITU’s Market,
  Economics and Finance Unit and lead author of the African
  Telecommunications Indicators 2004 report.
    Mobile Phone usage in Africa

5.3 The Legal framework

 There is no adequate legislation to support
 electronic transactions typical of this is the
 evidence act, Bills of exchange act etc to some
5.4 The ICT life span

The changes in ICT happens everyday and at certain stage
confusing the scheme administrators of which technology or
solutions to adopt
6. How ICT affects the Structure and
Organisation of Social Security Administrators.

  With the adoption of ICT the move is
  towards centralised model office thus
  enabling administrators to limit their presence
  to every place where they do business.

  While it looks cost effective; the integration
  of various ICT applications to support this
  structure is not a simple one
We can report the impact of ICT on
organizations in the following key aspects:

    Efforts of being responsive to changes

    Changes to organisation structure
       changes in decision flows within the organisation
       the move towards less physical operations to tactical and strategic
       removal of geographical barriers, addition of time(24/7/365),
        cultural changes where global
       Changes in new directions from operational to core business
Impact on decision making and support system
   improved accuracy
   Greater control and efficiency in decision making process, MIS.
   shorter time frame and quality decision making
   data being tailored by relevance to the activities of the organisation

Changes to management structures
   Organisation adopt flat based against hierarchical structures to
    enhance compatibility of staff to available resources.
   The need for effective reallocation of resources
   Outsourcing
                 7.0     Conclusion.

Automation of business operations generally tends to
improve processing speed, accuracy and reduced cost per

It also enables organisations to systematically identify,
acquire, store, analyse, distribute and re-use information and
knowledge from all sources in order to enhance
organisational productivity and competitiveness .

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