Local Government ServicesEnabling Service DeliveryAugust 2011
EOH at a glance •   Leader in Technology and Business Solutions          Key Findings:                                    ...
EOH at a glance •   Leader in Technology and Business Solutions          Key Findings:                                    ...
Some of our South African Clients
Key Message• Local government is critical to service delivery in South  Africa• However, Local Government is failing• ICT ...
One of the most pressing challenges facing South    Africa is the need to strengthen local government.•   Local government...
Causes include• Lack of / Poor service delivery (water, sanitation, electricity, refuse  removal)• Lack of communication w...
Outstanding debt payments for municipal services                                         How was the benefit realised?    ...
Financial mismanagement and Maladministration Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04.        ...
Lack of Capacity     Average Daily Value               R744,201                    No Txns per Day     Average Daily No. o...
Lack of / Poor service delivery (water, sanitation,                  electricity, refuse removal)If all Services / Works R...
Lack of communication with communities         Creating Citizen Value creates Citizen Loyalty.• Citizens demand Private Se...
Lack of communication with communities         Creating Citizen Value creates Citizen Loyalty.• Citizens demand Private Se...
Government officials who spend time focusing on their personal     business interests at the expense of service delivery.
Help deal with poverty and unemployment• Large disparity in the socio-economic status of citizens.  Systems assist with   ...
Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels  corruption, erodes confidence in municipal...
Implementing effective ICT in the Public Sector can help                      deal with• Lack of / Poor service delivery (...
The Conditions & Challenges impacting                                 Local Government Today                              ...
EOH Solutions for Local Government             EOH offers preconfigured solutions with    fixed-scope implementation servi...
EOH Value Propositionimplementation                               Customer                                Value     Post- ...
The EOH Enablement Approach                   EOH Municipal Solution          EOH Centre of           Excellence
Municipality Process Enabled by EOH                                                  Property Management Value Chain     P...
Property Management Value Chain                            Property Management Value ChainPlanning                 Deeds  ...
Revenue Management Value Chain                                        Revenue Management Value ChainRevenue Planning      ...
Revenue Management Value Chain (cont.)                                       Revenue Management Value ChainRevenue Plannin...
Revenue Management Value Chain (cont.)                                       Revenue Management Value ChainRevenue Plannin...
Revenue Management Value Chain (cont.)                                         Revenue Management Value ChainRevenue Plann...
Citizen Relationship Management Value Chain                                           Citizen Relationship                ...
CRM Value Chain (cont.)                                         Citizen Relationship                                      ...
Mobile Solution Overview  Municipality District          Pothole Identified   Citizen Log via USSD   Call routed to munici...
TRY  THIS!!! EOH MOBILE MUNICIPAL SOLUTION    *120*494*12345#                Advantages:Works with ALL phones (not only sm...
EOH Municipality in a Box E-Government platform                       Available free to South African Municipalities!!!•  ...
Predefined Municipal Solutions Offering
EOH Value Proposition                                         Local Govt Value          EOH                               ...
EOH Centre of Excellence Enablement             Approach                                                                  ...
What makes the EOH difference?                     Integrated approach to deliver a complete end-to-end solution          ...
A dedicated consulting arm thatLocal Governmentknowledge                   understands the Local Government               ...
Summary of EOH Value PropositionThe service offering includes preconfigured software and fixed-scope implementationservice...
Key Message• Local government is critical to service delivery in South  Africa• However, Local Government is failing• ICT ...
Discussion/ Comments               Integrated solution improving time-to-value, reducing Total Cost of                Int...
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EOH Local Government Services

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Overview of EOH Local Government Services. How we see the challenges facing local government in South Africa, and how we can assist.

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  1. 1. Local Government ServicesEnabling Service DeliveryAugust 2011
  2. 2. EOH at a glance • Leader in Technology and Business Solutions Key Findings: The South African IT services market is • Largest implementer of ERP solutions dominated by local players (Dimension Data, GijimaAst, Business Connexion • Widest range of applications and Enterprise Outsourcing Holdings [EOH]) which increased their combined • One of Top 4 IT service providers in SA market share by 1.4% to nearly 27% in • End-to-end offering 2009. Gartner: • Strong Black Economic Empowerment profile Market Share Analysis: IT Services Rankings, Middle East and Africa, 2009 • Operates in Africa (South Africa, Botswana, Kenya, Nigeria) and UK The EOH Vision To be the best technology and • Listed on JSE since 1998 business solutions company to • 1700 + staff, > 2200 customers work for, partner with and invest inEOH provides specialised consulting, technology andoutsourcing services to the following industries: Financial Services Mining Manufacturing Industry Public Sector, Telecommunications, Retail Industry
  3. 3. EOH at a glance • Leader in Technology and Business Solutions Key Findings: The South African IT services market is • Largest implementer of ERP solutions dominated by local players (Dimension Data, GijimaAst, Business Connexion • Widest range of applications and Enterprise Outsourcing Holdings [EOH]) which increased their combined • One of Top 4 IT service providers in SA market share by 1.4% to nearly 27% in • End-to-end offering 2009. Gartner: • Strong Black Economic Empowerment profile Market Share Analysis: IT Services Rankings, Middle East and Africa, 2009 • Operates in Africa (South Africa, Botswana, Kenya, Nigeria) and UK The EOH Vision To be the best technology and • Listed on JSE since 1998 business solutions company to • 1700 + staff, > 2200 customers work for, partner with and invest inEOH provides specialised consulting, technology andoutsourcing services to the following industries: Financial Services Mining Manufacturing Industry Public Sector, Telecommunications, Retail Industry
  4. 4. Some of our South African Clients
  5. 5. Key Message• Local government is critical to service delivery in South Africa• However, Local Government is failing• ICT is a great tool assist in turning this around• However ICT on its own will not do this – need an integrated municipal turnaround strategy – strategy, people, process, technology• Need to do things radically different – more of the same will not work.• EOH Local Government Services has tremendous experience and skill in the municipal space. – Offers new perspectives and innovative approaches – Operates across strategy, people, process & technology – Should be YOUR partner in helping you enable service delivery
  6. 6. One of the most pressing challenges facing South Africa is the need to strengthen local government.• Local government is key to the service delivery strategy of the government as it is the sphere of government with deals with the implementation of national and provincial policies, in a way that is tangible to people “on the ground”. It is the sphere of government where the “rubber hits the road”.• Although the lives of many South Africans have improved since 1994, major challenges still lie ahead.• Part of these challenges is that Service delivery many municipalities, which are central to the implementation of protests!!! government policies, still do not have the necessary capacity to implement government programmes and ensure that there is sustainable delivery of basic services - even when resources are available
  7. 7. Causes include• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)• Lack of communication with communities• Corruption and Nepotism• Financial mismanagement and Maladministration• Outstanding debt payments for municipal services• Lack of capacity – poor project planning, poor management and/or under- spending by municipalities• Government officials who spend time focusing on their personal business interests at the expense of service delivery.• Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.• Poverty and unemployment A REPORT ON THE CURRENT ‘SERVICE DELIVERY So, the key question is: Can ICT be thePROTESTS’ INhelp AFRICA. Commissioned by usedChairperson Committees, House to SOUTH government deal with these issues? Oversight and ICT, Parliament of South Africa, 2009
  8. 8. Outstanding debt payments for municipal services How was the benefit realised? • Improved visibility and transparency of information on the new invoice, the ability for citizens to pay their accounts at any municipal pay point and the implementation of a call center to address billing queries. • Revenue Services performed significant data alignment duties in converting data to SAP. • Revenue enhancement interventions have received priority attention. Calculation: 12 Month Moving Average - Payment Ratio • 1% increase in the payment ration = R6 mil100.00% 98.00% per month. 96.00% • ROI option: 90 % payment ratio was used 94.00% as the baseline for this ROI study and only 92.00% 90.00% 11% of financial value of the increase 88.00% above baseline has been used. = R224.6 86.00% mil. Payment Ratio 84.00% ROI Baseline 82.00% • 100% option: Instead of allocating only 11% - if 100% allocation over 90% base is Jul-03 Nov-03 Jun-04 Jul-04 Nov-04 Aug-03 Jan-04 May-04 Aug-04 Jan-05 Oct-03 Mar-04 Apr-04 Mar-05 Apr-05 Sep-03 Dec-03 Feb-04 Sep-04 Oct-04 Dec-04 Feb-05 to be used the financial value would be = R794 mil.Source: City of Cape Town
  9. 9. Financial mismanagement and Maladministration Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04. Cash Position - City of Cape Town June 2002 to July 2006 2,500 2,000 R 000 000 1,500 Go-live 1,000 500 Planned loan of R300 mil not 0 taken up Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Dec-02 Dec-03 Dec-04 Dec-05Source: City of Cape Town Budget Actual Cash Position
  10. 10. Lack of Capacity Average Daily Value R744,201 No Txns per Day Average Daily No. of Transactions 1140 8 000 7 000Andre Stelzner, Director: IS&T, City of CT 6 000“Another interesting area has been the 5 000automation of fuel payments through e-fuel 4 000 3 000system and interface into SAP. Through this 2 000we pay approximately R750 000 per day for 1 000fuel to the respective suppliers without any 0human intervention...... 3 500 000 Inv Value per Day Sum of No Txns 3 000 000 2 500 000 ......What makes things even better 2 000 000 is that the price is checked against 1 500 000 contract pricing and payment is 1 000 000 optimised to ensure that we only 500 000 pay on due date. In the past we had 0 the fuel supply cut to the city due to late payment, now nobody Sum of Inv Value worries about it.”Source: City of Cape Town
  11. 11. Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)If all Services / Works Request follow the same process it becomes easyto Record, Initiate action and track progress across the diversity ofservices government is responsible for:This can also be spatially enabled
  12. 12. Lack of communication with communities Creating Citizen Value creates Citizen Loyalty.• Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online
  13. 13. Lack of communication with communities Creating Citizen Value creates Citizen Loyalty.• Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online
  14. 14. Government officials who spend time focusing on their personal business interests at the expense of service delivery.
  15. 15. Help deal with poverty and unemployment• Large disparity in the socio-economic status of citizens. Systems assist with – Identifying citizens which can – but don’t pay; versus – Citizens which do not have the means to pay. – Support the vulnerable members of society.• Examples of social responsible Policies and Tariff- structures enable via the ERP Program: – Free Basic Utility Services. – Grants for the Indigent – Debt relief through arrangements and incentives• Other ICT initatives – Public Internet facilities– reducing the digital divide and empowering communities – Digital Business Centres – assisting small businesses – Learnerships, volunteerism and skills development
  16. 16. Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.
  17. 17. Implementing effective ICT in the Public Sector can help deal with• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)• Lack of communication with communities• Corruption and Nepotism Strategy• Financial mismanagement and Maladministration• Outstanding debt payments for municipal services• Lack of capacity – poor project planning, poor management and/or under-spending by municipalities• Government officials who spend time focusing on their personal Tech business interests at the expense of service delivery.• Violation of MFMA & Supply Chain Mgt - results in tender Process People irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.• Poverty and unemployment A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA. Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009
  18. 18. The Conditions & Challenges impacting Local Government Today • Ensure that municipalities meet the basic service needs of communities • Build clean, effective, efficient, responsive and accountable local governmentLocal Government Factors • Improve performance and professionalism in municipalities • Improve national and provincial policy, oversight and support • Strengthen partnerships between local government, communities and civil Challenge society Utilise ICT to restore the confidence of the majority of citizens in the municipalities, as the primary expression of the developmental state at a local level • Pre-configured solutions that can be implemented rapidly • Simplified IT solutions, Shorter time-to-value • Innovative commercial model with scalability options Opportunity • Centralized and/or on-site services allowing quicker implementations • Service Delivery Excellence • Improved Customer Service and Convenience • Greater Transparency on decision making and administrative issues Citizen • Increased participation Benefits
  19. 19. EOH Solutions for Local Government EOH offers preconfigured solutions with fixed-scope implementation services, flexible commercial options and scalability for future extension Immediate value to Local Government with fast deployable solutions Built-in benefit justifying investment Easy to deploy ‘Building-block’ implementation approach End-to-end processesdelivering process integration and operational efficiency
  20. 20. EOH Value Propositionimplementation Customer Value Post- • Streamlined processes Efficiency • Increased SLA accountability at all levels • Move to zero Audit Customer Qualifications Value • Budget spend according to plan • Service Delivery Project Lifecycle Excellence Implementation € 17.4 Bn Costs Implementation Costs SLA Infrastructure Infrastructure Aquisition Aquisition Value Typical Implementation EOH Municipal Solutions for Project s today… Local Government
  21. 21. The EOH Enablement Approach EOH Municipal Solution EOH Centre of Excellence
  22. 22. Municipality Process Enabled by EOH Property Management Value Chain Planning Deeds GIS Valuations Building Street Valuation Register Transfer Maps Land Use Control Addresses Roll Revenue Management Value ChainRevenue Planning Invoicing & Collections Loss ManagmtManage Admin Financial / Develop Measure Collect CreditRevenue Customer Billing Technical Tariffs Usage Revenues ManagementTargets Base Loss Citizen Relationship CRM Acquire Deliver Customer Customer Services Care Management Value Chain
  23. 23. Property Management Value Chain Property Management Value ChainPlanning Deeds GIS ValuationsBuilding Street Valuation Register Transfer Maps Land UseControl Addresses Roll Integrated Solution
  24. 24. Revenue Management Value Chain Revenue Management Value ChainRevenue Planning Invoicing & Collections Loss ManagmtManage Admin Financial / Develop Measure Collect CreditRevenue Customer Billing Technical Tariffs Usage Revenues ManagementTargets Base Loss Process Definition KPIManage Set targets/quotas for billing revenue and forecasting product • Revenue Actual vs. Target (Rands)Revenue usage in line with a designed sales plan and business unit • % achievement of target billings revenue and surplus attainment objectives. It also includes theTargets use of analytical tools to improve the accuracy of revenue projections and to track revenue and to ensure that it is effectively managed.Develop Setting of tariff policies, applicable tariffs/rates to be charged • Adherence to government inflation and the controlling and monitoring of the application thereof objectives.Targets and to ensure that it is effectively managed. • Adherence to Citys objectives • % achievement of revenue targets • Publication of tariffs on time
  25. 25. Revenue Management Value Chain (cont.) Revenue Management Value ChainRevenue Planning Invoicing & Collections Loss ManagmtManage Admin Financial / Develop Measure Collect CreditRevenue Customer Billing Technical Tariffs Usage Revenues ManagementTargets Base Loss Process Definition KPI Admin Maintenance of the customer accounts including • Turnaround time for updated customer data Customer opening, changes to and closure s. This includes updating • % Accurate customer data on billing data such as on meter installations, repairs, Base replacements and maintenance inspections. Measure Determining of consumption on products in order to • % of accurate meter readings per cycle Product accurately bill customers • Cycle time to finalise readings Usage • Cycle time to complete out-of-cycle readings Billing Ensure that services rendered are effective, accurate and • % Bills prepared and printed on time billed on time. This also includes the timely delivery of % Bills delivered on time the bills to the consumers by various means. • Cycle time to have Bills ready for delivery
  26. 26. Revenue Management Value Chain (cont.) Revenue Management Value ChainRevenue Planning Invoicing & Collections Loss ManagmtManage Admin Financial / Develop Measure Collect CreditRevenue Customer Billing Technical Tariffs Usage Revenues ManagementTargets Base Loss Process Definition KPI Collect Ensure effectively management by making sure that all • % of Amount billed Received that for all services billed, the revenues collected are on Revenues time and in full. Credit The management of credit monitoring and control, legal • No. of days outstanding Managem recovery and cut-off processes. • % of overdue amounts recovered. ent • % of overdue accounts on which services are terminated
  27. 27. Revenue Management Value Chain (cont.) Revenue Management Value ChainRevenue Planning Invoicing & Collections Loss ManagmtManage Admin Financial / Develop Measure Collect CreditRevenue Customer Billing Technical Tariffs Usage Revenues ManagementTargets Base Loss Process Definition KPI Financial / The identification, evaluation and the management of • Value of losses identified Technical financial and technical losses. • % correction on identified losses Loss
  28. 28. Citizen Relationship Management Value Chain Citizen Relationship CRM Acquire Deliver Customer Customer Services Care Management Value Chain Process Definition KPI Establishing and providing a strategic framework • Status of Audit reports for accepting, managing and delivering the service • Channel Utilisation Acquire interaction between the City and its citizens. • Customer satisfaction Customer • Customer awareness pertaining to the city’s available interactive channels Accepting, executing and monitoring information • % First call resolution (FCR) requests, new service requests and complaints • % Staff declared competent made by citizens, businesses and visitors related • Waiting time / queue time to City offerings. • Ageing analysis for all logged "tickets" • % Dropped calls Deliver • Average handle time Services • Hours spent per 100 interactions • Fault lifecycle • Call Centre utilisation per FTE • Average speed of answer • % Of customer interactions self serviced • Channel usage ratio
  29. 29. CRM Value Chain (cont.) Citizen Relationship CRM Acquire Deliver Customer Customer Services Care Management Value ChainProcess Definition KPI In order to enhance service delivery, focus needs • % First call resolution (FCR) to be placed on Customer Care in order to further • % Staff declared competent improve the customer experience. Managing • Waiting time / queue time (all channels specified customer relationships by means of our ability to identify customers, segment customers in order independently) to develop services and manage customers and • Ageing analysis for all logged "tickets" obtain feedback and monitor feedback. • % Dropped callsCustomer • Average handle time Care • Hours spent per 100 interactions • Fault lifecycle • Call Centre utilisation per FTE • Average speed of answer • % Of customer interactions self serviced • Channel usage ratio • Customer Survey results
  30. 30. Mobile Solution Overview Municipality District Pothole Identified Citizen Log via USSD Call routed to municipality (department) Server Central Control MIS reports updated
  31. 31. TRY THIS!!! EOH MOBILE MUNICIPAL SOLUTION *120*494*12345# Advantages:Works with ALL phones (not only smartphones) Do not need data bundles Cheaper than sms
  32. 32. EOH Municipality in a Box E-Government platform Available free to South African Municipalities!!!• Partnership with SAFIPA (South Africa - E-Government Finland knowledge partnership on ICT) & Tightly Platform EOH integrated Council officials and politicians •Supply Chain• Management/ e- Key emphasis on improving the effectiveness with EOH Citizens and communities of local government by utilising a people, tendering process and systems approach – good, solid, Municipal •Council Secretariat repeatable processes enabled by a system (including Agenda executed by trained people. Solution Management and Council Meeting• To deliver a package (toolbox) comprising of a Management) systems architecture, process maps, implementation methodology and templates •Document that will be used by municipalities to improve Or Management their service delivery. •Knowledge Management and• Tightly integrated to EOH Municipal systems Knowledge platform consisting of Operational systems Repository (for day to day running of the municipality), Integrate with (legislation, reports, Business Intelligence systems (to enhance etc.) information visibility and decision making) , existing •Municipal Incident performance management systems (increased accountability) and an e-Government back-end reporting and management system platform to enhance citizen participation and transactional •Etc. oversight systems• Hosted by EOH Local Government Services
  33. 33. Predefined Municipal Solutions Offering
  34. 34. EOH Value Proposition Local Govt Value EOH Skilled Expertise commitment to Knowledge Transfer Local government success Proven PracticesSubject Matter Expertise Right 1st Time culture Actionable Recommendations Customer Enablement Process Optimization Via EOH Academy Business Support Enablement Quality Management
  35. 35. EOH Centre of Excellence Enablement Approach MUNICIPALITY OBJECTIVES LOCAL GOVERNMENT  Ensure that municipalities meet the basic service needs of Run municipality as a business communities Use local resources to drive revenue –  Build clean, effective, efficient, responsive and accountable local attract industry / tourism government  Improve performance and accountability Business Requirements CollaborationSolution platformMatching EOH VALUE OFFERING Knowledge transfer thru’ EOH Academy  Provides business relevant content Proven practices  Fully understands Local Government operating model and processes  Shared commitment to service delivery EOH
  36. 36. What makes the EOH difference? Integrated approach to deliver a complete end-to-end solution SOLUTION OFFERING FEATURESFlexibility predefined solution optionsPrice flexible pricing optionsHardware can be includedSoftware / Data optionally at customer site or hostedLegacy Integration includedImplementation services deployment package by EOHDelivery Concept Customer relevant pre-configured business processes delivered on building block principle for quick time to value and predictable costs while retaining flexibility
  37. 37. A dedicated consulting arm thatLocal Governmentknowledge understands the Local Government Domain with a proven track record designed to start small addressing theScalable immediate issues while allowing forImplementation later growth along increasing business requirements reduced implementation costs and timePreconfigure & allows for easy and quick extension ofPredefined the solution landscape along new business requirements simplify complex system landscapesEase of Use adopting integrated solutions access to support personnel either on-Support site and/or through the EOH Centre of Excellence
  38. 38. Summary of EOH Value PropositionThe service offering includes preconfigured software and fixed-scope implementationservices at a predictable price. It also combines the ability to address your service deliveryrequirements with the flexibility to accommodate future growth. This service offering canlower your cost and risk of solution implementation and accelerate your time to value. SUMMARIZED VALUE PROPOSITION Public Sector Preconfigured software Predefined service Rapid Deployment ConsultingDiagnostics Preconfigured software A templatised Leverage pre-(Grand Plans/Route addressing Local methodology of configuredMaps) Government priorities delivering defined results municipal specificImplementation with end-to-end within predictable costs content.through BPI of processes and time ofLegislation/ Policies implementation
  39. 39. Key Message• Local government is critical to service delivery in South Africa• However, Local Government is failing• ICT is a great tool assist in turning this around• However ICT on its own will not do this – need an integrated municipal turnaround strategy – strategy, people, process, technology• Need to do things radically different – more of the same will not work.• EOH Local Government Services has tremendous experience and skill in the municipal space. – Offers new perspectives and innovative approaches – Operates across strategy, people, process & technology – Should be YOUR partner in helping you enable service delivery
  40. 40. Discussion/ Comments  Integrated solution improving time-to-value, reducing Total Cost of Integration (TCI) and increasing ease-of-implementation by combining Local Government Expertise, preconfigured solution and flexible BENEFITS implementation servicesSTATEMENT  Innovative and scalable delivery model offering additional benefits in deployment  www.EOH.co.zaFIND OUT  Nirvesh Sooful Enoch Makhubo MORE nirvesh.sooful@eoh.co.za enoch.makhubo@eoh.co.za +27 84 909 9284 +27 72 907 6342 Wayne Noble Lucky Mondlani wayne.noble@eoh.co.za lucky.mondlani@eoh.co.za +27 72 510 4668 +27 82 570 4691
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