EVALUATION OF PROPERTY MANAGEMENT 
SYSTEMS FOR USE WITHIN THE SOCIAL HOUSING 
SECTOR IN SOUTH AFRICA 
 
 
 
 
Clifford Hayim 
 
 
A dissertation submitted to the School of Construction Economics and 
Management in the Faculty of Engineering and the Built Environment, 
University of the Witwatersrand, in the fulfilment of the requirements for the 
degree of Master of Science in Building. 
 
Johannesburg, 2006  
 
DECLARATION 
 
I declare that this dissertation is my own, unaided work. It is being submitted 
for the Degree of Master of Science in the University of the Witwatersrand, 
Johannesburg. It has not been submitted before for any degree or examination in any 
other University. 
 
 
______________________ 
Signature 
 
______ day of ___________________ year______ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Page 3 of 200 
 
 
Abstract 
The purpose of this qualitative research project is to establish whether or not there is 
currently a property management system or systems available that meet the unique 
requirements of the overall ICT strategy for the Social Housing sector in South Africa. 
This included a detailed evaluation of candidate systems wherever possible. A 
generic functional specification was outlined in the report and these, together with 
other factors including conformance with the proposed strategic architecture, 
technology imperatives and vendor characteristics formed the basis of the evaluation 
and recommendation that followed. The state of Information Technology within a 
sample group of Housing Instititions was determined, together with an evaluation of 
available skills. The JD Edwards Financial Real Estate system owned by PeopleSoft 
and supported by Delloites, stood out as the leading commercial software package to 
satisfy the requirements of the overall ICT strategy for the sector. The IFCA Property 
Plus system ranked a close second.  
 
 
 
  Page 4 of 200 
 
 
 
 
i. - Acknowledgments 
 
Acknowledgement to the following people and organisations for the direct 
contribution to this research proposal must go to: 
 
? Barry Marcus and Antony Soicher of Strategy Architects 
? David Brand and Jaqus Pienaar of the Land and Housing Development 
Support Group 
 
Extra-special thanks must go to: 
 
? The various Social Housing Institutions (SHIs) - too many to mention by name 
? The National Department of Housing and its local and municipal siblings  
? The Support Programme for Social Housing (SPSH) 
? The National Housing Finance Corporation (NHFC) 
? The Social Housing Foundation (SHF) 
? And of course to the various software and services vendors 
 
 
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ii. - Index 
 
i. - Acknowledgments........................................................................................... 4 
ii. - Index................................................................................................................. 5 
iii. - Summary .......................................................................................................... 8 
iv. - List of Diagrams ........................................................................................... 11 
v. - List of Tables ................................................................................................ 12 
1. - Introduction................................................................................................... 13 
1.1 - Overview ................................................................................................. 13 
1.2 - Background to Research......................................................................... 14 
1.3 - Problem Statement ................................................................................. 14 
1.3.1 - The Sub Problems ............................................................................. 15 
1.4 - Why is it worth Investigating .................................................................... 15 
1.5 - The Objectives ........................................................................................ 16 
1.6 - The Hypotheses...................................................................................... 16 
1.7 - Scope and Limits of Research................................................................. 16 
1.8 - Research Methodology ........................................................................... 17 
1.9 - Literature Review .................................................................................... 20 
1.9.1 - Discussion of Literature Review ........................................................ 22 
1.10 - Definitions, Terms and Abbreviations.................................................... 33 
2. - South Africa?s National Housing Strategy ................................................. 34 
2.1 - The Overall Strategy ............................................................................... 34 
2.2 - The Information Technology Strategy...................................................... 37 
3. - The State of Information Technology at the SHIs...................................... 44 
3.1 - Existing Systems..................................................................................... 44 
3.2 - Review and Evaluation of Existing Systems ............................................ 45 
3.3 - ICT Skills Evaluation ............................................................................... 45 
3.4 - ICT Skills Gap ......................................................................................... 46 
4. - Generic Systems Specification................................................................... 49 
4.1 - Background.............................................................................................. 49 
4.2 - Generic Business Requirements .............................................................. 50 
4.3 - Functional Requirements ......................................................................... 53 
5. - Technology Requirements.......................................................................... 54 
6. - Discussion of ICT Options .......................................................................... 57 
 
 
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6.1 - Overview of Options (Rationale)............................................................... 57 
6.2 - Build or Buy?............................................................................................ 58 
6.3 - Vendor Selection...................................................................................... 60 
6.3.1 - Vendor Lock ...................................................................................... 62 
6.4 - Commercial Off the Shelf (COTS) Software ............................................. 63 
6.4.1 - Nicor ................................................................................................. 65 
6.4.2 - JD Edwards ...................................................................................... 70 
6.4.3 - MDA ................................................................................................. 73 
6.4.4 - Novtel ............................................................................................... 74 
6.4.5 - ManageIT ......................................................................................... 76 
6.4.6 - MIS Active Management Systems .................................................... 77 
6.4.7 - Sx3 ................................................................................................... 78 
6.4.8 - IFCA Property Plus ........................................................................... 80 
6.4.9 - MRI................................................................................................... 82 
6.4.10 - IBS OpenHousing ............................................................................. 84 
6.4.11 - FatFish (Cubit) .................................................................................. 88 
6.4.12 - Wocus4All......................................................................................... 89 
6.4.13 - Rascal .............................................................................................. 91 
6.4.14 - Compiere.......................................................................................... 92 
6.4.15 - Microsoft Excel and Pastel Accounting ............................................. 95 
6.4.16 - Microsoft Excel / SQL Monitoring System ......................................... 97 
6.5 - Summary of COTS (Package) Options..................................................... 98 
6.6 - Open Source Software........................................................................... 101 
6.7 - Business Process Outsourcing............................................................... 106 
7. - Analysis and Evaluation of Options......................................................... 114 
7.1 - Selection of a Decision Support Tool...................................................... 114 
7.2 - The Decision Model ............................................................................... 116 
7.3 - Results................................................................................................... 123 
7.4 - Sensitivity Analysis................................................................................. 124 
8. - Results ..................................................................................................... 127 
8.1 - Evaluation of Outcomes ......................................................................... 127 
8.2 - Test of the Hypotheses .......................................................................... 128 
8.2.1 - The Main Hypothesis ........................................................................ 128 
8.2.2 - The Sub Hypothesis ......................................................................... 129 
9. - Recommendations..................................................................................... 130 
10. - Conclusion............................................................................................... 131 
 
 
  Page 7 of 200 
 
Appendix A - National Housing Strategy ........................................................ 133 
Appendix B - Sample Group of Housing Institutions..................................... 141 
Appendix C - Functional Requirements of a Generic Specification.............. 142 
Appendix D - COTS Software Evaluation Forms ............................................ 151 
Appendix E - SHI Questionnaire ...................................................................... 179 
Appendix F - System Requirements............................................................... 184 
Appendix G  - Evaluation Model - Rating Scales ............................................. 186 
Appendix H - References ................................................................................ 197 
 
 
 
  Page 8 of 200 
 
 
iii. - Summary 
 
 
The South African Social Housing sector is still in its infancy, both in its legislative 
framework and in its maturity and efficiency. The Housing Act of 1997 devolves much 
of the responsibilities of housing to Provincial and Local Governments. The sector 
also relies on national housing agencies, established by Government, and on the 
private sector for the actual production of houses. 
It has been established that Government has developed an Information 
Communication Technology (ICT) strategy for the Social Housing sector, with a 
common goal to support the establishment of a viable, sustainable Social Housing 
sector in South Africa, and to provide the basis for its future expansion. 
Part of the overall strategy is to provide a computerised property management 
system via a centralised centre or hub, accessibly by all parties. The purpose of the 
centralised hub is to co-ordinate and to a degree control the sector through greater 
accountability and regulation.  
 
The purpose of this qualitative research project is therefore to establish whether or 
not there is currently a property management system or systems available that meet 
the unique requirements of the overall ICT strategy for the Social Housing sector in 
South Africa. Numerous options were examined to fulfil the strategic vision for the 
sector. This included a detailed evaluation of candidate systems wherever possible.  
 
The Internet as a delivery mechanism in the context of the Social Housing sector was 
examined in depth. From the point of view of installing and updating software for the 
individual Social Housing Institutions (SHI), the Internet can be seen as the most 
viable option. Alternatives in the client-server present obstacles in terms of roll-out, 
distribution and remote access. 
 
Open source software has received a lot of attention in recent years, and the range 
of packages available using open-source is increasing exponentially. Packages 
available include fully fledged Enterprise Resource Planning (ERP) systems, 
accounting systems and many others.  
 
While these may not currently incorporate full property-management functionality, the 
systems are rules based and capable of providing all of the required functionality 
 
 
  Page 9 of 200 
 
through this rule base. While strictly speaking these cannot yet be directly compared 
against more mature property management systems, open source solutions offer a 
viable alternative to the proprietary software packages on the market today, and the 
acknowledged benefits of open source supersede the fact that they are often license-
 free. Apart from the general absence of licence fees, the commitment to a vendor 
falls away, and the Social Housing sector would then be free to select alternative 
service providers for support or to grow its own competencies in this area, in line with 
numerous Government and private sector trends and initiatives. 
 
A generic functional specification was outlined in the report and these, together with 
other factors including conformance with the proposed strategic architecture, 
technology imperatives and vendor characteristics formed the basis of the evaluation 
and recommendation that followed. The state of Information Technology within a 
sample group of Housing Instititions was determined, together with an evaluation of 
available skills. 
 
A review of the various modelling and decision support tools was conducted resulting 
in a sophisticated evaluation methodology. The Analytical Hierarchy Process 
developed by Dr Thomas Saaty in the early 1970?s at the Wharton School of 
Business was selected to integrate the various criteria into a robust and defensible 
ranking model. The sensitivity to various assumptions in the evaluation model was 
also discussed. 
 
While many systems offer similar property management functionality, to varying 
degrees of architectural conformity with the centralised hub strategy presented in this 
report, many of them scored poorly on factors like local representation, risk and 
agility. 
 
The report concludes with the following: 
 
The JD Edwards Financial Real Estate system owned by PeopleSoft and supported 
by Delloites, stood out as the leading commercial software package to satisfy the 
requirements of the overall ICT strategy for the sector. 
 
The IFCA Property Plus system came a close second. While functionally slightly 
richer than JD Edwards, it fell short in terms of its technology and architectural fit. 
 
 
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The report concludes with the following key recommendations: 
 
? Engage key SHIs at both ends of the spectrum in discussions on participating 
in the formation of this hub. The importance of their deep involvement in a 
successful implementation cannot be overstated. 
? Appoint a dedicated head of ICT within the SPSH (Support Programme for 
Social Housing) to champion this initiative. It is critical that this is not a vendor 
resource nor a consultant, but someone with the requisite skills who is 
focused on and rewarded for this task alone. 
? Negotiate a phased release of the selected system consistent with the 
centralised hub model. 
 
 
 
 
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iv. - List of Diagrams 
 
Figure 1 ? High Level Process Map ......................................................................... 20 
Figure 2 ? Conflict Analysis Matrix........................................................................... 24 
Figure 3 ? Criteria Rating and Weighting Form........................................................ 25 
Figure 4 ? The Importance / Performance Matrix ..................................................... 27 
Figure 5 ? Uncertainties, Strategic Choice Approach............................................... 32 
Figure 6 ? Modes of Strategic Choice...................................................................... 32 
Figure 7 ? Overview of Stakeholder Relationships................................................... 38 
Figure 8 ? Overview of Stakeholder Relationships................................................... 39 
Figure 9 ? High Level ICT Architecture for Social Housing Sector ........................... 41 
Figure 10 ? Interdependence of Skills...................................................................... 47 
Figure 11 ? Levels of Competence .......................................................................... 49 
Figure 12 ? Functional Requirements Overview ...................................................... 53 
Figure 13 ? Sx3 Architecture ................................................................................... 79 
Figure 14 ? High Level ICT Architecture for Social Housing Sector ......................... 89 
Figure 15 ? Evaluation Model Hierarchy ................................................................ 118 
Figure 16 ? Evaluation Model Local and Global Weights ....................................... 119 
Figure 17 ? Evaluation Model Derived Weights ..................................................... 120 
Figure 18 ? Sample of Rating Scale ...................................................................... 120 
Figure 19 ? Data Grids .......................................................................................... 123 
Figure 20 ? Synthesised Results ........................................................................... 123 
Figure 21 ? Synthesised Results (Top 6) ............................................................... 124 
Figure 22 ? Overall Sensitivity Graph .................................................................... 124 
Figure 23 ? Sensitivity Graph - Functionality.......................................................... 125 
Figure 24 ? Sensitivity Graph - Architecture........................................................... 126 
Figure 25 ? Sensitivity Graph - Agility .................................................................... 127 
Figure 26 ? Accounting Systems ? Core Components........................................... 148 
  
 
 
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v. - List of Tables 
 
Table 1 ? Summary of ICT at SHIs .......................................................................... 44 
Table 2 ? Common Software Evaluation Factors ..................................................... 56 
Table 3 ? Essential Vendor Characteristics ............................................................. 60 
Table 4 ? Computer Economics Survey Results .................................................... 104 
Table 5 ? Urban and Rural Visions ........................................................................ 136 
Table 6 ? Summary of Policy Initiatives ................................................................. 137 
Table 7 ? Evaluation Form ? Nicor......................................................................... 151 
Table 8 ? Evaluation Form ? JD Edwards.............................................................. 154 
Table 9 ? Evaluation Form ? MDA ......................................................................... 156 
Table 10 ? Evaluation Form ? Novtel ..................................................................... 159 
Table 11 ? Evaluation Form ? ManageIT ............................................................... 161 
Table 12 ? Evaluation Form ? MIS Housing Solutions ........................................... 163 
Table 13 ? Evaluation Form ? Sx3......................................................................... 165 
Table 14 ? Evaluation Form ? IFCA....................................................................... 167 
Table 15 ? Evaluation Form ? MRI ........................................................................ 170 
Table 16 ? Evaluation Form ? IBIS OpenHousing.................................................. 172 
Table 17 ? Evaluation Form ? FatFish/Cubit .......................................................... 174 
Table 18 ? Evaluation Form ? Wocus4All .............................................................. 176 
 
 
 
  Page 13 of 200 
 
 
1. - Introduction 
 
1.1  - Overview 
 
The Social Housing Sector in South Africa consists of various diverse (both in terms 
of geography and organisational maturity and size) Social Housing Institutions (SHI) 
and a number of supporting organisations. While not targeted at the poorest of the 
poor, social housing is seen to be geared around the needs of households earning 
incomes of R1500 ? R3500 per month. (Social Housing Foundation, 1998, Page V) 
In comparison to many developed countries, the South African Social Housing sector 
is still in its infancy, both in its legislative framework and in its maturity and efficiency.  
The growth of the sector has been complicated by fragmented governance arising 
from various pieces of existing legislation, which has led to inefficiencies and housing 
delivery delays (Goodlad,1996). Furthermore, the various institutions and 
organisations involved in Social Housing are not well aligned in terms of their specific 
purpose and functions, which has led to initiatives and developments within the 
sector being delayed and/or duplicated.  
Governments vision of a ?nation housed is sustainable human settlements? was 
formally introduced 1994 White Paper on Housing (Tomlinson, 2001). 
State assisted housing development in South Africa is not centrally controlled. The 
Government?s defining characteristics for legal entities to be considered as SHIs are: 
? Institutions ensuring affordable, quality housing and maximum benefit for 
residents from public funding made available for rental housing (and other 
non individual ownership tenure options); 
? Institutions that are focused on managing housing stock over the long term; 
? Institutions that may be focused on developing housing stock together with 
the housing management function. 
There are approximately sixty SHIs operating throughout the country, many of whom 
are facing the problems described above, together with governance, management, 
skills shortages and financial difficulties. These difficulties are caused by many 
factors including inter alia: their relative inexperience in developing and managing 
housing stock for rental and other forms of tenure not conferring individual 
ownership; lack of critical mass; an over-eagerness to access institutional housing 
subsidies; inefficient regulation and; a lack of a supportive policy. 
 
 
 
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1.2 - Background to Research 
 
The Support Programme for Social Housing (SPSH) was set up by the European 
Union to facilitate improvements to the Social Housing sector. The SPSH together 
with the South African Government has developed an Information Communication 
Technology (ICT) strategy for the Social Housing sector in South Africa, with a 
common goal to support the establishment of a viable, sustainable Social Housing 
sector in South Africa, and to provide the basis for its future expansion. (Department 
of Housing 2004. Social Housing Policy Review, 2004).  
 
This strategy is based on the view that ICT systems will play a crucial role in the 
attainment of their objectives, as it is only through being able to accurately monitor 
and measure progress that National and Local Government can ensure that the 
strategic goals are met and that oversight, allocation of resources, interventions and 
policy setting are all informed by timeous and accurate information.  
 
While stakeholders like the European Union and various funders may require 
information for different reasons, to monitor subsidies and their effective 
administration and application, for example - their dependence on quality information 
is nevertheless similarly critical.  
 
This is also the case with the SHIs themselves, who need to manage and control 
their day to day affairs and planning more efficiently, especially as the Social Housing 
sector matures and consolidates, and compliance requirements become more 
stringent and competition more pronounced. 
 
1.3   - Problem Statement 
 
Part of the overall strategy (Hughes, SPSH, July 2005) is to provide a property 
management computer system via a centralised hub, accessible by all parties, in a 
manner suited to their specific requirements. The increased visibility and importance 
of a strong centre or hub to coordinate and to a degree control this sector, is 
consistent both with the strategic shift towards greater regulation and oversight, as 
well as the environmental demands of better governance and greater accountability. 
This network model of a centralised hub is also considered to be most appropriate for 
a maturing but still very new industry ? one in which there are few experts and very 
 
 
  Page 15 of 200 
 
thinly spread expertise (both in terms of business and ICT). This represents the most 
efficient utilisation of these scarce and valued resources ? not just to benefit one 
company but to set the standard for the industry. The problem identified is that it is 
not evident if such a system or systems, to meet these unique requirements is 
currently available. 
 
1.3.1 - The Sub Problems 
 
The sub problems of this study are to: 
? Analyse the requirements of the overall ICT strategy 
? Determine the state of information technology within a sample group of 
Housing Institutions, together with an evaluation of skills available. 
? Establish a generic functional specification for an ideal property management 
system together with other factors including conformance with the proposed 
strategic architecture, technology imperatives and vendor characteristics. 
? Identify, Commercial Off the Shelf (COTS) property management systems 
that are currently in use by Housing Institutions nationally and internationally, 
or any other options or alternatives that may be available. Furthermore to 
evaluate these systems in terms of the requirements of a generic functional 
specification. 
? The selection of one credible modelling and decision support tool to perform 
the overall evaluation and assessment. The model must be able to group 
decisions and make good, transparent and defendable decisions in a 
systematic and scientific manner. 
 
1.4  - Why is it worth Investigating 
 
Through comprehensive research into the availability of these management systems, 
together with a credible technique in evaluating them, we will be able to identify if 
there is in fact a system or systems that will meet the strategy requirements, and 
support the establishment of a viable, sustainable Social Housing sector in South 
Africa, to provide the basis for its future expansion.  
 
 
 
 
  Page 16 of 200 
 
1.5   - The Objectives 
 
By determining whether there is a system or systems that meet the strategy 
requirements, informed decisions can be made regarding the common goal to 
provide a suitable platform for the future expansion and growth of the Social Housing 
sector in South Africa. 
 
1.6  - The Hypotheses 
 
The main hypothesis of this research project is: 
? There are various property management systems available, but none that 
meet the unique requirements of the overall ICT strategy for the Social 
Housing sector in South Africa. 
 
The sub hypothesis is: 
? The state of information technology within the sample group of Housing 
Institutions, is varied in sophistication, depending on their level of experience, 
self-sufficiency and maturity. 
 
1.7   - Scope and Limits of Research 
 
This research project is subject to the following exclusions: 
 
? A critical analysis of Government housing policy. 
? Non-ICT related problems at the sample group of SHIs including general and 
specific business skills. 
? ICT systems not specifically related to the provision and development of the 
Social Housing sector, outside the scope of property management. 
? ICT systems relating to the provision of subsidies or other finance to the 
sector. 
? System requirements of the Department of Housing to meet their own 
strategic objectives. 
? Property development processes and systems. 
 
 
  Page 17 of 200 
 
? Management systems that have not been tried and tested within the Social 
Housing sector. 
 
1.8  - Research Methodology 
 
The methodology employed in this research comprises: 
? Analysis of the overall ICT Strategy for the sector. In order to analyse the strategy 
for the housing sector, informal qualitative research by means of discussion with 
key role players within the SPSH, together with recent Housing literature and 
policy prepared by the National Department of Housing.  
? The state of information technology within the sector. To establish the current 
state of Information Technology within the sector, qualitative research by means 
of case study using a sample group of eleven Social Housing Institutions was 
undertaken. (see Appendix B - Sample Group of Housing Institutions on page 
141). A nonprobability method of quota sampling (Leedy, 1997, p. 205) was the 
basis used for selection of the sample group. Data collection was in the format of 
a detailed questionnaire either telephonically or by personal interview. (see 
Appendix E - SHI Questionnaire on page 179). There are approximately sixty 
SHIs operating throughout the country, many of whom are facing the problems of 
governance, management, skills shortages and financial difficulties. The sample 
group was selected from both ends of the spectrum, from inexperienced start-up 
Institutions, to sophisticated and mature operations geographically spread around 
the country. All eleven of the sample group responded and completed the 
questionnaire. Reflective analysis (Leedy, 1997, p. 158) was used to analyze the 
data which was primarily an inductive process of organising the data into 
categories.  The sample group is listed below : 
 
1. Alexandra Social Housing Company (ASHCO) 
2. Cape Town Community Housing Company (CTCHC) 
3. First Metro Housing Company (FMHC) 
4. Greater Middleburg Housing Association (GMHA) 
5. Johannesburg Housing Company (JHC) 
6. Johannesburg Trust for the Homeless 
7. Mbombela Housing Association 
8. Msunduzi Housing Association (MHA) 
 
 
  Page 18 of 200 
 
9. Reahola Housing Association 
10. Social Housing Company (SOHCO) 
11. Yeast City Housing (YCH) 
 
? Establish a generic functional specification for an ideal property management 
system. The methodology relied on researching available literature around 
general business, functionality and technological requirements for conformance 
with the proposed strategic architecture, technology imperatives and vendor 
characteristics. 
 
? Identify Commercial Off the Shelf (COTS) property management systems that are 
currently in use by Housing Institutions nationally and internationally, or any other 
options or alternatives that may be available. In order to test the main hypothesis, 
qualitative research by means of case study into the various vendors and 
products was undertaken. In order to evaluate the systems in terms of a generic 
functional specification, the population or sample group included products that 
are currently used in one way or another specifically for the management of 
Social Housing, both locally and internationally. Data collection was in the format 
of a detailed questionnaire either telephonically or by personal interview. (see 
Appendix D - COTS Software Evaluation Forms on page 151). All fourteen of 
the population responded and completed the questionnaire. Reflective analysis 
(Leedy, 1997, p. 158) was used to analyze the data which was primarily an 
inductive process of organising the data into categories. The products 
investigated are listed below: 
1. Nicor 
2. JD Edwards Financial Real Estate 
3. MDA 
4. Novtel 
5. ManageIT 
6. MIS Active Management Systems 
7. Sx3 
8. IFCA Property Plus 
9. MRI 
10. IBS OpenHousing 
11. FatFish (Cubit) 
12. Wocus4All 
 
 
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13. Rascal 
14. Compiere 
 
? The selection of a modelling and decision support tool to perform the overall 
evaluation and assessment. Without a good decision support tool, decision 
makers usually simplify a decision - ignoring criteria that cannot easily be 
quantified. They may therefore oversimplify the decision structure and may 
select the wrong vendor or product. Research into available literature on the 
subject was conducted. Modelling and support tools are classified into the 
following (Institute for Manufacturing, 2005): 
 
1. Information Control - gathering, storage, retrieval, and organisation 
of data, information and knowledge. 
2. Paradigm Models - paradigms, frameworks or perspectives that help 
one `get a handle' on the situation. 
3. Simulation Models - models that enable answers to "What if?" 
questions. 
4. Ways of Choosing - techniques or tools that analyse or help to 
narrow the field of choice. 
5. Representation Aids - tools and techniques that aid visualisation of 
the data or problem space.  
6. Processes - these are not in themselves tools, rather, they are 
management techniques or philosophies. Their primary aims are to 
control or 'run' some part of a manufacturing operation. They may 
also provide, or be based on, particular perspectives rather like the 
paradigm models above.  
 
 
 
 
  Page 20 of 200 
 
Identify National
 Housing 
ICT Strategy
 Interview SHIs
 Investigate Ideal 
System Requirements
 Research available 
Systems
 Evaluation Process
 Conclusion and 
Recommendations
  
Figure 1 ? High Level Process Map 
 
 
1.9 - Literature Review 
 
Other than the literature by of Mouton and Leedy, which proved to be invaluable input 
necessary for the compilation of such a research project, the core literature used for 
the purposes of this research project focused on the following areas: 
 
Understanding of the key social housing principles and participants. Many of the 
circumstances and assumptions of the current legislation have changed dramatically 
from when they were first instituted in the 1990?s. At the time the Housing Policy and 
Strategy (1994) was focused on addressing the housing backlog as well as in 
stabilising the housing environment, which was complex, highly fragmented and 
racially segregated. Fundamental changes have subsequently taken place in the 
 
 
  Page 21 of 200 
 
sector, as well as a move towards more responsive and effective delivery. 
Government has made it quite clear about its intention to deliver houses. The 
Minister of Housing, Lindiwe Sisulu, National Assembly, Cape Town, June 2004, was 
recorded saying: 
?Housing is an area where the steep inequalities of our country are 
immediately visible??.Together, therefore, let us break new ground in 
housing delivery? 
The overall strategy that government intends, is largely found in Housing Policy 
documents. The following literature was drawn on: 
 
1. Department of Housing 2004 
?Breaking New Ground? A Comprehensive Plan for the Development 
of Sustainable Human Settlements, in particular business plan 4 on 
Social (medium density) housing. 
2. Department of Housing 2004 
A Social Housing Policy for South Africa. Towards an enabling 
environment for Social Housing Development. Revised draft, 
November 2004. 
3. Department of Housing 2004 Social Housing Policy Review: key 
issues. Version 12, dated 1 October 2004 
4. Goodlad, 1996, discussion and review of developments in Housing 
Policy 
5. Mackay, 1999, Principles of Housing Policy 
6. Tomlinson, 2001, New Housing Delivery Model 
7. Social Housing Foundation, Current Status of Social Housing in South 
Africa, Report to Housing, 1998 
8. Housing Strategy 
http://www.housing.gov.za/Content/Strategic%20Statement.htm#Strat
 egic%20Objectives 
9. Housing Code 
http://www.housing.gov.za/content/housing_code/part1/chapter3a.htm 
 
? The establishment of a generic functional specification for an ideal 
property management system was researched from literature of various 
sources listed:  
 
 
  Page 22 of 200 
 
1. The key characteristics to look for in Service Center Business 
Systems were located in 
http://swguide.computerworld.com/cwsoftware/search/viewabstract
 /64342/index.jsp 
2. Information Systems and Business Agility 
MBA Research Report, Wits Business School, University of the 
Witwatersrand 
3. Five Requirements for Business Agility 
Open Mission Critical Systems:  
http://www.sw.nec.co.jp/english/omcs/overview/01/overview01_04. 
4. Management Information Systems 
7th Edition ? O?Brien & Marakas 
5. Manifesto for Agile Software Development 
http://www.agilemanifesto.org/ 
6. The Secret to Software Success 
http://www.cio.com/archive/070101/secret.html 
7. Management and Organizational Behavior 
Cook, Hunsaker & Coffey, 1997 ? Irwin/McGraw Hill 
8. To quote from the survey analysis relating to open source  (Frank 
Scavo, Key Advantage of Open Source is Not Cost Savings) 
 
?For software buyers, the best strategy is to consider mature 
and established open source products as well as proprietary 
software products that adhere to open standards. In this way, 
buyers can choose the best software product for the job, 
knowing that the value of their investment will be preserved 
without locking the organization in to a single vendor solution.? 
 
 
1.9.1 - Discussion of Literature Review 
 
Numerous modelling and decision support tools were explored. Research into ways 
of choosing techniques or tools that analyse or help to narrow the field of choice was 
undertaken. This included the following models: 
? Analytical Hierarchy Process (Saaty TL, 1980) 
? Conflict Analysis (Lewin, 1951) 
 
 
  Page 23 of 200 
 
? Criteria Rating Form, Weighted Ranking (Chang, and Niedzwiecki,1993) 
? Gap Analysis 
? Importance / Performance Matrix (Slack, N, 1994) 
? Quantitative Decision Making (Levin, R, 1984) 
? Strategic Assessment Model (Tavana et al) 
? Strategic Assumptions Surfacing and Testing (Mason et al 1981) 
? Strategic Choice Approach (Friend, J, 1992) 
 
Modelling and decision support tools are classified into the following: 
 
1. Information Control - gathering, storage, retrieval, and organisation of data, 
information and knowledge.  
2. Paradigm Models - paradigms, frameworks or perspectives that help one `get a 
handle' on the situation.  
3. Simulation Models - models that enable answers to "What if?" questions. 
4. Ways of Choosing - techniques or tools that analyse or help to narrow the field 
of choice.  
5. Representation Aids - tools and techniques that aid visualisation of the data or 
problem space.  
 
Evaluating vendors or products can be a daunting task. Typically many factors or 
criteria would impact on the decision ? usually so many that they are hard to keep 
track of mentally. To further complicate the decision, a number of these factors may 
be hard to measure or quantify, yet can be crucial to the final decision.  
 
Without a good decision support tool, decision makers usually simplify a decision - 
ignoring criteria that cannot easily be quantified. They may therefore oversimplify the 
decision structure and may select the wrong vendor or product.  The following 
techniques or tools are available that analyse or help to narrow the field of choice.  
 
 
1.9.1.1 - Analytic Hierarchy Process 
 
The Analytic Hierarchy Process (AHP) was developed by Dr Thomas Saaty (Saaty 
TL, 1980) in the early 1970?s at the Wharton School of Business. It structures a 
 
 
  Page 24 of 200 
 
complex problem in a logical Hierarchy. It does not randomly assign weights to 
criteria, but rather derives these weights. This is done by using pair wise comparison 
between criteria. The relative importance or preference of any two criteria is a ratio 
scale. Using matrix algebra the pair wise comparisons are then used to calculate the 
weights of the individual criteria. The process involves building a hierarchy (ranking) 
of decision elements and then making comparisons between each possible pair in 
each cluster (as a matrix). This gives a weighting for each element within a cluster (or 
level of the hierarchy) and also a consistency ratio (useful for checking the 
consistency of the data). 
 
The software implementation of the AHP is called Expert Choice. This product is 
widely used internationally to facilitate group decisions and make good, transparent 
and defendable decisions in a systematic and scientific way. Application areas 
include vendor selection, risk analysis, strategic decision making, human resource 
allocation and project portfolio management. The evaluation of options for 
recommendation in this report was modelled in Expert Choice (Forman et al). 
 
 
1.9.1.2 - Conflict Analysis 
 
Possible methods of conflict analysis include the matrix method, force field analysis, 
and matrices similar to that shown below can also be used to examine potential 
conflicts (e.g. between performance measures). 
 
 
 
Figure 2 ? Conflict Analysis Matrix 
 
 
  Page 25 of 200 
 
 Force field analysis (Lewin, 1951) is widely used in change management and can be 
used to help understand most change processes in organisations. 
 
Thomas (1985) suggested that force field analysis is mainly used to provide new 
insights into the evaluation and implementation of corporate strategies. More 
specifically Maslen and Platts (1994) applied force field analysis to manufacturing 
strategy. Force field analysis is potentially a powerful technique to help an 
organisation realise a manufacturing vision, and not geared around evaluation of 
systems. The use of matrices is discussed on page 27 ? the Importance / 
Performance matrix. 
 
 
1.9.1.3 - Criteria Rating, Weighted Ranking 
 
According to Chang, and Niedzwiecki (1993), the criteria rating form is used when: 
? you have to select among several alternatives  
? you want to make a decision objectively  
 
  
 
   
Figure 3 ? Criteria Rating and Weighting Form 
The process is listed below: 
 
1. List the alternatives available 
2. Brainstorm decision criteria 
3. You will be judging your alternatives against what you feel are the most 
important qualities each one should have. These qualities are called 
decision criteria. Brainstorming may be a useful way for a group to agree 
appropriate criteria. 
 
 
  Page 26 of 200 
 
4. Determine the relative importance of each criterion. 
5. Rank the criteria and assign a relative importance (weight) to each. The 
total of the assigned weights should equal 100. 
6. Establish a rating scale; rate the alternatives. 
7. A suitable rating scale might be, for instance: 1= low, 10=high. each 
alternative should be weighed against each criterion, using the same scale 
for each. 
8. Calculate the final score. 
9. Multiply the weight for each alternative by the score and write this in 
brackets. Add up the numbers in brackets for each alternative and write the 
sums in the appropriate total boxes. Add any summary comments in the 
appropriate summary box. 
10. Select the best alternative. 
11. Select the alternative with the highest score. This alternative may not be the 
one ultimately chosen - if the group disagrees with the choice, they should 
review the weighting of the criteria and make the necessary changes.  
 
  
 
1.9.1.4 - Gap Analysis 
 
Gap analysis consists of defining the present state, the desired or `target' state and 
hence the gap between them. In the later stages of problem solving the aim is to look 
at ways to bridge the gap defined and this may often be accomplished by backward-
 chaining logical sequences of actions or intermediate states from the desired state to 
the present state. In other words, asking the question: 
"What (b) must be in place, or must have happened in order that this desired state (a) 
can exist?" 
- then - 
"What (c) must be in place, or must have happened in order that this desired state (b) 
can exist?" 
 
Gap analysis alone however is not adequate for all problem situations as goals may 
evolve and emerge during the course of problem solving, "what ought to be" can be a 
highly variable target. Also, some problems have many alternative solutions, in which 
case backward-chaining search strategies will have little practical use. 
 
 
 
  Page 27 of 200 
 
1.9.1.5 - Importance / Performance Matrix 
 
A 2x2 matrix of importance / performance can be used but may be found too crude. 
(Slack, N, 1994). The matrix uses the 9-point importance and performance scales 
reproduced below. The exact positions of the dividing lines between the zones 
"Excess", "Appropriate", "Improve" and "Urgent action" may need to be agreed by the 
group beforehand. 
 
 
 
Figure 4 ? The Importance / Performance Matrix  
 
 
This decision tool is more geared around evaluation of a strategy. The derivation of a 
ranked (or rated) list of competitive factors such as quality, flexibility, cost, etc needs 
to be formulated.  
 
 
 
1.9.1.6 - Quantitative Decision Making 
 
Quantitative decision making methods can be used when there is a clearly stated 
objective, with several alternative courses of action. This results in a calculable 
measure of the benefit or worth of the various alternatives (Levin, R, 1984).  
Uncertainties for which allowance must be made or probabilities calculated may 
include 
 
 
  Page 28 of 200 
 
? Events beyond the control of the decision maker.  
? Uncertainty concerning which outcome (or external events) will actually 
happen.  
Given the above conditions, standard statistical techniques using normal distribution 
data and probability calculation can be used to inform decision making. 
 
 
1.9.1.7 - Strategic Assessment Model 
 
Strategic Assessment Model (SAM) decomposes a strategic problem into clearly 
defined components in which all alternatives, factors, weights, and probabilities are 
depicted (Tavana et al).  Objective information and subjective judgements of experts 
are then integrated by utilising several methods of problem structuring and 
information processing. This decomposition and evaluation is not intended to replace 
the decision-makers, rather, it provides a systematic approach to support, 
supplement, and ensure the internal consistency of their judgements through a series 
of logically sound techniques. SAM divides the decision making environment into 
three parts: 
? Internal environment: The set of relevant factors that form the profile of the 
internal operations of the organisation 
? Task environment: the set of relevant factors that have direct transactions 
with the organisation. The influence between these factors is reciprocal 
? General environment: The set of relevant factors that can exert considerable 
influence on the organisation. The organisation, however, has little or no 
impact on such factors.  
 
The process consists of eight steps and uses an algebraic model together with a 
software version ("Expert Choice") of Saaty's Analytical Hierarchy process (AHP) to 
calculate risk adjusted strategic values for each alternative (Forman et al). 
 
The eight steps are: 
1. Generate strategic alternatives. (Brainstorming etc.) Alternatives are the set of 
potential means by which the stated objectives may be obtained. There must 
be at least two mutually exclusive alternatives in the set to permit a choice to 
be made.  
 
 
  Page 29 of 200 
 
2. Identify the relevant (those which can be exploited by the strategic alternatives) 
opportunities and threats and group them into internal, task and general sets of 
environmental factors.  
3. Define environmental weights (using AHP) 
4. Calculate the initial weights associated with the opportunities and threats.  
5. Develop subjective probabilities for each alternative.  
6. Calculate the overall importance weight for the opportunities and threats.  
7. Measure the Decision-Maker's risk-aversion constant for the opportunities 
and threats (using certainty equivalence rather than gain or loss equivalence)  
8. Calculate the risk adjusted strategic value for each alternative.  
 
 
1.9.1.8 - Strategic Assumptions Surfacing and Testing 
 
Strategic Assumptions Surfacing and Testing (SAST) is a process which reveals the 
underlying assumptions of a policy or plan and helps create a map for exploring them 
(Mason et al 1981). SAST was developed in the US by Richard Mason, Ian Mitroff, 
and Jim Emshoff, and incorporates the following principles: 
 
1. Adversarial - based on the premise that the best way to test an assumption is 
to oppose it.  
2. Participative - based on the premise that the knowledge and resources 
necessary to solve and implement the solution to a complex problem is 
distributed among a group of individuals.  
3. Integrative - based on the premise that a unified set of assumptions and action 
plan are needed to guide decision making, and that what comes out of the 
adversarial and participative elements can be unified. 
4. Managerial mind supporting - based on the premise that exposure to 
assumption deepens the manager's insight into an organisation and its policy, 
planning, and strategic problems.  
 
The above principles are employed through the following five phases of the SAST 
process: 
1. Group formation. Key individuals from across company functions are formed 
into small (6 - 8 person) groups. Each group should consist of individuals who 
get on well with one another (minimise conflict). Each group should differ in its 
particular knowledge and problem perspectives (maximise differences). Each 
 
 
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group should have a different orientation, perspective or policy option from 
which to tackle the issue. 
2. Assumption surfacing and rating. Each group meets separately and begins to 
identify the assumptions inherent in the issue (from their viewpoint). A way in 
may be to identify as many stakeholders as possible. List all the assumptions 
generated. 
3. Within group dialectic debate. Firstly, each group now eliminates irrelevant 
assumptions by asking themselves "If the opposite of this assumptions is true, 
does it have any significant bearing on the issue?" If the answer is "No", then 
the assumption is not very relevant to the problem. Any assumption accepted 
as a strategic premise must meet two criteria: 
? It should have a significant bearing on the outcome of the strategy 
chosen and implemented. (Importance) 
? It should be as "self evident" and "certain to be true" as possible. 
(Certainty) 
The assumptions are now ranked for importance by the group and entered in an 
Importance / Certainty matrix. If a more precise scaling is required here, the 
Analytical Hierarchy Process (AHP) is used to carry out pairwise comparison (each 
individual group member) and to calculate normalised weightings from the combined 
data. The individual data should also be open for discussion at this stage. 
The resulting data is now plotted on a graph or 2 x 2 matrix whose scales are 
(relatively important / unimportant) & (relatively certain / uncertain). 
Assumptions that are both important and certain become the pivotal or "bedrock" 
assumptions for the policy. Assumptions that are important but uncertain may require 
research. Assumptions in the other two quadrants may well be dropped. Using the 
graph as an aid, each group should debate "which are the pivotal assumptions?" and 
come up with a prioritised list of pivotal assumptions. 
 
4. Between groups dialectic debate. The groups are brought together and a 
spokesperson for each group presents their importance / certainty graph and 
pivotal assumptions. Only clarifying questions are permitted at this stage. When 
all the groups have presented, all the assumptions are combined on one slide 
and thrown open for evaluation, debate and discussion. Agreed assumptions 
are extracted as premises from which to proceed, while contentious 
assumptions are debated further and may be modified to achieve agreement. 
 
 
  Page 31 of 200 
 
 Final synthesis. All participants are asked to propose assumptions to resolve 
outstanding controversies. If no agreement is reached on an assumption it becomes 
an issue requiring further investigation. Each issue and key assumption is subjected 
to further analysis to adduce the data and warrants (what beliefs the assumption is 
based on) that underlie its claim. Where data is inadequate, business intelligence 
and management information systems activities are undertaken to acquire the 
specific data necessary to resolve the strategic issue.  
When the policy decision must be made, the results of the information producing 
activities are collected and related to the issues for which they were undertaken. A 
final debate is held and a judgement is made on the best set of assumptions from 
which to proceed. Finally, an appropriate policy is chosen, based on the new 
information and the synthesis that emerged. 
 
 
1.9.1.9 - Strategic Choice Approach 
 
The Strategic Choice Approach is used in face to face workshops of a decision 
making group. 
Strategic choice is viewed as an ongoing process in which the planned management 
of uncertainty plays a crucial role. (Friend, J, 1992) and (Friend, J et al, 1987). The 
Strategic Choice Approach 
? Focuses on decisions to be made in a particular planning situation, whatever 
their timescale and whatever their substance.  
? Highlights the subtle judgements involved in agreeing how to handle the 
uncertainties which surround the decision to be addressed - whether these be 
technical, political or procedural.  
? The approach is an incremental one, rather than one which looks towards an 
end product of a comprehensive strategy at some future point in time. This 
principle is expressed through a framework known as a `commitment 
package'. In this, an explicit balance is agreed between decisions to be made 
now and those to be left open until specified time horizons in the future.  
 
The approach is interactive, in the sense that it is designed not for use by experts in 
a backroom setting, but as a framework for communication and collaboration 
between people with different backgrounds and skills. There are three key elements 
of analysis which are used in structuring problems and working towards decisions 
 
 
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1. The Decision Area 
2. The Comparison Area 
3. The Uncertainty Area - divides into three broad categories  
? Uncertainties to do with the working environment 
? Uncertainties to do with guiding values 
? Uncertainties to do with related choices  
 
 
Figure 5 ? Uncertainties, Strategic Choice Approach 
 
There are four modes of strategic choice 
1. Shaping 
2. Designing 
3. Comparing 
4. Choosing  
 
 
Figure 6 ? Modes of Strategic Choice 
 
 
  Page 33 of 200 
 
The Strategic Choice Approach was originally developed using flip charts and wall 
space, however, a software package called "Strategic Advisor" or "STRAD" for short 
was developed and released in February 1991. The intention of this software 
package is to support individuals and small groups in the more informal use of the 
approach. 
 
 
1.10   - Definitions, Terms and Abbreviations 
 
Abbreviations 
AHP  - Analytical Hierarchy Process  
ASP  - Application Service Provider 
BPO  - Business Process Outsourcing 
COTS  - Commercially Off the Shelf Software 
DRP  - Disaster Recovery Procedure 
EFT  - Electronic Funds Transfer 
ERP  - Enterprise Resource Planning 
ERM  - Enterprise Resource Management 
ICT  - Information Communications Technology   
NHFC  - National Housing Finance Corporation 
SAM  - Strategic Assessment Model 
SAST  - Strategic Assumptions Surfacing and Testing 
SHI  - Social Housing Institution 
SPSH  - Support Programme for Social Housing 
STRAD - Strategic Advisor 
 
Definitions 
 
I.T.  Information technology can be defined broadly as any equipment or 
interconnected system or subsystem of equipment, that is used in the 
automatic acquisition, storage, manipulation, management, 
movement, control, display, switching, interchange, transmission, or 
reception of data or information as well as such infrastructure as wide-
 area networks, local-area networks, desktops and email.
 
 
  Page 34 of 200 
 
 
2. - South Africa?s National Housing Strategy 
 
 
2.1   - The Overall Strategy 
 
In comparison to many developed countries, the South African Social Housing sector 
is still in its infancy, both in its legislative framework and in its maturity and efficiency.  
 
The growth of the sector has been complicated by fragmented governance arising 
from various pieces of existing legislation, which has led to inefficiencies and housing 
delivery delays. Furthermore, the various institutions and organisations involved in 
Social Housing are not well aligned in terms of their specific purpose and functions, 
which has led to initiatives and developments within the sector being delayed and/or 
duplicated.  
 
State assisted housing development in South Africa is not centrally controlled. The 
Housing Act of 1997 devolves much of the responsibilities of housing to the 
Provincial and Local Governments. The sector also relies on national housing 
agencies, established by Government, and on the private sector for the actual 
production of houses.  Policy goal is to deliver a permanent residential structure with 
secure tenure, ensuring privacy and protection against the elements, potable water, 
adequate sanitary facilities, including waste disposal, and domestic electrical supply 
(Tomlinson, 2001, Pg 2). 
 
The various roles and responsibilities can be summarised as follows: 
 
? National Government:  
The Department of Housing maintains the national strategy, policy and 
programme guidelines for the administration of the Institutional Housing 
Programme by the lower two tiers of government. 
 
? Provincial Government:  
Maintains the provincial strategy and administers the provincial portion of 
capital grants for housing. 
 
 
 
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? Local Government: 
Maintains the local Housing Development Plans and administers capital 
grants for housing. Local Government also administers planning approvals 
and access to land and services. 
 
? National Housing Agencies:  
o The Social Housing Foundation (SHF) is mandated to increase the 
capacity of Social Housing Institutions through training and capacity 
building. 
o The National Finance Corporation (NHFC) is tasked to leverage 
debt financing from the private sector for the low and moderate 
housing market. 
 
? Housing Institutions (private sector):  
Social Housing Institutes (SHIs) are legal entities that are established with the 
primary objective of developing and/or managing housing stock that has been 
funded through the Government?s grant programmes. 
 
Recently, the Support Programme for Social Housing (SPSH) was setup as a 
temporary structure to facilitate improvements to the Social Housing sector. The 
current contract expired at the end of May 2005, but the contract has been renewed 
for a further 2 years, after which the SPSH falls away. 
 
Many of the circumstances and assumptions of the current legislation have changed 
dramatically from when they were first instituted in the 1990?s. At the time the 
Housing Policy and Strategy (1994) was focused on addressing the housing backlog 
as well as in stabilising the housing environment, which was complex, highly 
fragmented and racially segregated. Although Government believes that the 
fundamentals of the policy remain intact, it is redirecting and enhancing the existing 
mechanisms to cope with the changes that have subsequently taken place in the 
sector, as well as to move towards more responsive and effective delivery. 
 
Social Housing Institutions 
The Government?s defining characteristics for legal entities to be considered as SHIs 
are: 
 
 
  Page 36 of 200 
 
? Institutions ensuring affordable, quality housing and maximum benefit for 
residents from public funding made available for rental housing (and other 
non individual ownership tenure options); 
? Institutions that are focused on managing housing stock over the long term; 
? Institutions that may be focused on developing housing stock together with 
the housing management function. 
There are approximately sixty SHIs operating throughout the country, many of whom 
are facing governance, management and financial difficulties. These difficulties are 
caused by many factors including: their relative inexperience in developing and 
managing housing stock for rental and other forms of tenure not conferring individual 
ownership; lack of critical mass; an over-eagerness to access institutional housing 
subsidies; inefficient regulation and; a lack of a supportive policy. 
 
In an attempt to increase the performance of the SHIs, and therefore achieve its 
housing objectives, the Government has realised the need to regulate the sector 
more appropriately. As such, it is in the process of enhancing and streamlining the 
current legislation governing the sector. The future legislation and regulatory 
framework will be designed to ensure that the sector is equipped to provide sustained 
delivery of Social Housing at scale, as well as protect the financial investment that 
Government and the private sector makes to the sector. The Social Housing Bill will 
deal with the legal requirements for the promotion of a sustainable and viable Social 
Housing sector in South Africa. Inter alia, the Act will specify the functions and legal 
forms of SHIs, a method and legal framework for the accreditation of SHIs, definitions 
of the roles and functions of sector agencies as well as specify Government?s support 
mechanisms.  
 
Government will insist that each and every SHI is accredited and monitored so as to 
ensure that SHIs are robust and sustainable institutions. For accreditation, housing 
institutions will have to demonstrate financial and operational sustainability over time 
while adhering to the guiding principles for Social Housing, ultimately achieving an 
independent status within 5 years of accreditation. After accreditation, the SHIs will 
qualify for certain benefits. For the accreditation process Government will provide the 
appropriate legislative framework within which the SHIs can operate as well provide 
institutional capacity to the SHIs including training and materials. In this regard, the 
 
 
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SHF has been mandated to provide the SHIs and Local Governments with capacity 
building skills and technical support. 
 
It is envisioned that the accreditation process will reduce the number of SHIs from 
the current 60 to approximately 20, as it is Government?s stated policy that it should 
focus its Social Housing investments ?narrowly and strategically? as it believes that 
?depth? of investment will have a greater impact than investments of moderate 
amounts spread thinly over a wide area. By this it would seem that it is Government?s 
intention to whittle down the number of SHIs by the accreditation process. Through 
the accreditation process it will be able to monitor the SHIs and provide the relevant 
support where necessary. Those that are ultimately accredited will be viable and 
sustainable going concerns with a track record. Government will then invest heavily 
in these remaining institutions so as to succeed in its housing objectives.  
  
On the other hand, the increase in the value of subsidies, as well as the concurrent 
reduction in the income threshold, may well induce a higher demand for housing and 
therefore a larger space for SHIs. This may increase the number of SHIs entering the 
market in coming years. 
 
More details on key elements of the National Housing strategy are presented in 
Appendix A. 
 
 
2.2   - The Information Technology Strategy 
 
Information technology can be defined broadly as any equipment or interconnected 
system or subsystem of equipment, that is used in the automatic acquisition, storage, 
manipulation, management, movement, control, display, switching, interchange, 
transmission, or reception of data or information as well as such infrastructure as 
wide-area networks, local-area networks, desktops and email. 
 
The government?s seven strategies for housing do not specifically mention the role of 
ICT in the attainment of these goals, except in point seven ?Co-ordinating state 
investment in development? where one of the measures to achieve co-ordinated 
government is Integrated and Co-ordinated Information systems.  
 
 
 
  Page 38 of 200 
 
Key stakeholders and their interactions are illustrated in the diagram below. 
 
European
 Union
 SPSH
 SHIs Properties
 Tenants/Buyers
 NHFC
 Other funders
 SHF
 National
 Department
 of Housing
 Provincial/Municipal
 Departments
 Housing
  
Figure 7 ? Overview of Stakeholder Relationships 
 
Another more focused representation is presented below (figure 3), in which the SHIs 
are differentiated between the majority (by size) of small institutions, and the minority 
of large operators. It stands to reason that the requirements of these two groups, 
while functionally similar, would in practice be vastly different. In addition, Figure 2 
illustrates the inconsistent relationship between the various stakeholders and the 
SHIs. 
 
The ICT strategy addresses both of these groups without compromising the unique 
requirements of either one. It does not impose a standard system across the board ? 
something which would likely require the majority to stretch beyond their limited 
capacities and would similarly compel the larger, more established players to 
abandon their considerable investments to adopt what would conceivably be less 
functional and less suitable for their needs.  
 
 
 
  Page 39 of 200 
 
support
 support
 support
 finance
 feedbackfeedback
 feedbackfeedback
 subsidise
 set policy
 & monitor
 housing units
 tenants
 SHI SPSH
 EU
 SHF
 Funders
 Housing
 Depts
  
Figure 8 ? Overview of Stakeholder Relationships 
 
The Support Programme for Social Housing (SPSH) is in the process of making 
recommendations to National Government for an ICT strategy that requires a 
property management system to be provided via a centralised hub, accessible by all 
parties, in a manner suited to their specific requirements. 
 
A major goal of the SPSH is to increase the capacity and efficiency of the Social 
Housing sector and ultimately to enable the sector to provide housing on a broader 
basis. The National Housing Strategy as embedded in the Breaking New Ground 
document includes the provision of large scale housing within communities and 
includes incorporating the private sector in the initiative.  
 
The increased visibility and importance of a strong centre or hub to coordinate and to 
a degree control this sector, is consistent both with the strategic shift towards greater 
regulation and oversight, as well as the environmental demands of better governance 
and greater accountability.  
 
 
 
  Page 40 of 200 
 
This network model of a centralised hub is also considered to be most appropriate for 
a maturing but still very new industry ? one in which there are few experts and very 
thinly spread expertise (both in terms of business and ICT). This represents the most 
efficient utilisation of these scarce and valued resources ? not just to benefit one 
company but to set the standard for the industry. 
 
Importantly, although the model caters to both ends of the spectrum, from 
inexperienced start-up Institutions to sophisticated and mature businesses, it does 
not dictate that these common tools be imposed on anyone. The value proposition to 
smaller SHIs is self evident ? they simply cannot access this type of system on their 
own.  
 
It is not clear what budgets are available for such a model. It may be relatively 
irrelevant at this stage, in the context of Social Housing delivery imperatives and the 
scale of financial activity in the sector. Even a simplistic cost allocation model 
however would give any size SHI access to a world-class service at a fraction of the 
cost of a comparable solo effort ? and one that would not necessarily lock them into 
any contract or capital exposure. 
 
In addition to the reduced management overhead of doing this alone, it may further 
prove to be compelling for larger, more capable SHIs to subscribe to this model by 
dedicating some of their resources to the continued evolution of the hub. 
 
 
 
  Page 41 of 200 
 
High-Level ICT Architecture
 for the South African
 Social Housing Sector
 SPSH
 Accreditation Authority
 & Secretaria t
 feed required data from 
current systems to hub
 when required
 control access to 
own data including 
for key stakeholders
 and customers
 larger SHIs running
 their own systems
 larger SHIs running off
  centralised service
 SHIs play a role in 
refining and informing centre
 smaller SHIs running off
 centralised service
 Hub consists of core property management system, 
secondary support systems, logically partitioned and 
secure data pools (per SHI ) and key ICT skills 
along with sustained relevance of systems
 SPSH ?owns? hub - either directly or indirectly
 (numerous structural options)
 information
 for oversight
 customer access to info
 via  simple interfaces
 (SMS, ATM, phone, Web)
 generation & delivery
 of statements & 
correspondence
 QA
  ro
 le 
an
 d 
da
 ta 
dis
 trib
 uti
 on
  ro
 le
 SHI SHI
 SHI
 SHI
 National
 & Local
 Government
 Funders
 SHI
 SHI
 Centralised Property
 Management System
 Support
 System
 Support
 System
 Support
 System
 Logically Partitioned Databases
 pull information
 or subscribe to
 periodic updates
  
 Figure 9 ? High Level ICT Architecture for Social Housing Sector 
 
 
 
  Page 42 of 200 
 
So for SHIs of any size, participating in the centre, it is far more cost effective than 
going it alone, but this is not ruled out in the model since in any competitive business 
environment innovation needs to be encouraged, investments preserved and 
protected and freedom of choice guaranteed. The creation of a solid centre clearly 
offers some interesting opportunities but this directly raises some of the practical 
challenges of implementation. 
 
The map in figure 4 presents a centralised hub, controlled and perhaps managed by 
the SPSH or an external service provider. The hub will house (logically or physically) 
a property management system with a number of other support systems or 
specialised components emerging over time. SHIs ? large or small ? can utilise a 
wide range of functionality ? accessing this functionality in stages as their 
requirements and capabilities grow. SHIs may choose to continue running their own 
systems ? the only oversight requirement from the emerging accreditation authority / 
or the SPSH will be the SHI?s sustained compliance with required reporting.  
 
The hub will place a strong emphasis on security and privacy, not least around the 
careful partitioning of data so that only an SHI can see its own client and financial 
data until it chooses to release or open it up for managed access by select clients, 
funders, Government departments etc. In keeping with the growing sophistication of 
consumers ? and the growing requirement to utilise technology to service multiple 
channels, this diagram highlights the possible use of mobile messaging, bank ATMs, 
email, Internet and other technologies. 
 
The overall strategy is to achieve a critical mass of SHIs as a full-service model. This 
would preferably include some of the larger SHIs for a variety of reasons including 
their skills and knowledge being used to lift and indirectly mentor the smaller, less 
experienced SHIs. It is also clear in the overall Housing Sector ICT strategy that the 
ideal system is a web based system. A web application is any system that uses a 
web browser client (e.g. Firefox, Microsoft Internet Explorer) as the means of 
presenting the user interface (UI). In this way, a web application is similar to a web 
site with the important point being that the user can interact with a dynamic set of 
functionality rather than being primarily concerned with finding and reading content.  
 
Web based systems offer immense value. In instances where internal technical skills 
do not exist or cannot be guaranteed ? certainly the case with the majority of smaller 
 
 
  Page 43 of 200 
 
SHIs - then a hosted application, with centralised support is often the only option for 
high uptime. In addition, in widely dispersed businesses ? and again the loose 
network of SHIs qualifies in this regard ? centralised and hosted applications are 
ideal to achieve economies of scale and reduced overheads while still ensuring 
maximum availability of support and monitoring and a consistent system ensuring 
common standards and functionality for the sector. 
 
Web systems open up a wide range of hosting options, allowing for solutions to grow 
naturally without huge capital investments. In addition to the often prohibitively 
expensive proprietary technologies, there is a rich, proven, widely supported and 
broadly deployed base of open source technologies including operating systems, 
web servers and database management systems. 
 
The option of simple browser access without the need for any client side software is 
particularly important when considering the complexity and overhead of software 
distribution, configuration and support for remote users ? which in the case of the 
SHIs and the proposed strategy is the majority of the user base. This becomes an 
even greater consideration where the system is likely to be enhanced and refined 
frequently and where the business itself is changing. 
 
The requirement for a simple browser on most user workstations opens up a range of 
client side options without the need for high-end workstations, and open source is 
again a possible contender for many end users, depending of course on their other 
roles and requirements.  For the small SHIs in particular, access to an intuitive web-
 based system with minimal investment may be the key to greater success and 
efficiency. One of the key points to note when considering web applications is that 
the web based front-end to the system is merely one potential component of the 
larger enterprise system. That is to say that although common perception may see 
the term web application as all encompassing, an application may have many 
different interfaces of which the web based user interface is just one interface that 
the end user can interact with. 
 
 
 
  Page 44 of 200 
 
 
3. - The State of Information Technology at the SHIs 
 
3.1   - Existing Systems 
 
Results from completed questionnaires (Appendix E) show a clear dichotomy 
between SHIs. The larger of the SHIs have well established IT infrastructure with 
current hardware and property management software that either has integrated 
accounting capabilities or is supported by a stand alone, off the shelf accounting 
package (most commonly Pastel). The vast majority of these institutions outsourced 
their IT functions to third parties. These institutions are also able to employ people 
with appropriate IT skills when and where necessary. 
 
On the other hand, the smaller SHIs seem to be running budget hardware and 
software. Networking is rudimentary and connections to the internet are either 
through ADSL or dialup. Very few are running property management software and 
typically keep records using MS Excel, if computerised at all. Skill levels in 
applications range from very low to adequate. The general findings of the research 
are summarised in the table below. 
 
Table 1 ? Summary of ICT at SHIs 
Criterion 
 
Larger SHIs Smaller SHIs 
IT Support 
 
Mainly outsourced Basic in-house knowledge 
Workstations 
 
> 30 < 5 
Hardware Specifications 
 
Current Dated 
Hardware Ownership 
 
Owned Owned 
Networked 
 
Servers Rudimentary, if at all 
Internet Access 
 
Broadband ADSL or Dialup 
Licensing Fees Several Limited (some SHIs have not 
even licensed their Microsoft 
Operating Systems or 
Applications) 
 
Housing Systems Utilised ERP, Proprietary or Custom 
developed, Accounting 
Packages 
 
Pastel, MS Access, MS Excel 
 
 
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Reporting Functionality 
 
Adequate Minimal 
Software Application Skills 
 
Knowledge centres Adequate / Minimal 
 
This sets the scene for formulation of generic specifications ? especially those 
relating to I.T. 
 
 
 
3.2   - Review and Evaluation of Existing Systems 
 
Systems currently in use at the SHIs include: 
 
? Nicor ? this is in use at the Johannesburg Housing Company, Semag and 
JHB Trust for the Homeless, Own Haven, COPE Housing, North West 
Housing Corporation and First Metro. This is the most widely used property 
management system in the sector 
? JD Edwards ? in use by the Cape Town Housing Company 
? Novtel ? has been purchased by Middleburg Housing Association and 
Secunda Housing Association, but has not been in use extensively 
? Pastel Accounting and MS Excel ? not a property management system but 
widely in use in the smaller SHIs. One of these, SOCHO has commissioned 
custom add-ons for the Pastel accounting to facilitate full property 
management. This is currently under development. 
? SPSH Monitoring System ? The SPSH has instituted a monitoring system 
for the SHIs to provide information on the effectiveness of programmes that 
have been put in place. 
 
Details of these systems and a full evaluation thereof are included in the ICT Options 
area of this report in section 6 on page 57 
 
 
3.3  - ICT Skills Evaluation 
 
The skills and competency levels within various SHIs have been evaluated, in the 
use and support of their existing ICT Systems. The main systems identified were as 
follows: 
  
? Microsoft Office which includes Word, Excel, Access and PowerPoint 
 
 
  Page 46 of 200 
 
? Email and Internet connectivity 
? Accounting software 
? Property Management software 
It is evident from our research that most of the staff involved within the various SHIs 
have a basic knowledge and understanding of the applications provided within the 
Microsoft Office Suite enabling them to achieve their day to day outputs. However, 
there is a vast amount of functionality that is not being used, which could improve 
general productivity and efficiency. In some cases, staff have had the benefit of 
training in the use of the Microsoft applications, and the results are quite visible. 
 
It is apparent from the Interviews that the skill levels in both ICT and more pointedly 
in general business skills is particularly low, and a more comprehensive skill 
development plan should be attempted to address these deficiencies holistically. 
 
 
3.4  - ICT Skills Gap 
 
ICT skills cover a wide range of activities. IT skills needed at the most basic level 
include the ability to find and access information services and carry out online 
transactions. The ability to use a web-browser and email and to find, edit, save and 
print files. 
 
ICT skills are required at a number of different levels in any modern organisation. At 
the most basic level, most jobs today require a basic level of ICT skills. As the vast 
majority of transactions carried out in the housing industry are done with the help of 
computer systems, staff in the industry require skills to be able to capture, record and 
update client and property details on the computer systems in use. Most of the 
financial transactions ? including rent payments, payments for sales instalments are 
effected electronically through direct bank transfers. Payments to third parties are 
also managed electronically. In addition, much communication is managed through 
emails and faxes directly to a computer screen. Staff require the ability to not only 
access these but to be able to organise and retrieve such correspondence when 
required.  
The level of skills ? including ICT skills ? has a direct bearing on the productivity of 
staff. A recent study showed that the number of properties administered by each staff 
 
 
  Page 47 of 200 
 
member in the South African Social Housing sector was about 40% lower than the 
equivalent in Europe. This can partly be attributed to the availability of appropriate 
systems as well as the level of skills in the sector. 
 
The various systems available for the ICT sector should be able to integrate with the 
MS Office Suite ? in particular MS Excel. While the study revealed that most staff 
have some knowledge of Word and Excel, the general skills level was not very in-
 depth, thus limiting the use to which these tools can be used. With the right training, 
Excel can become a powerful analytical tool for use in the sector. 
 
Much of the ICT infrastructure management is currently outsourced. However, 
greater knowledge can enhance management?s ability to manage the outsource 
service provider. Skills are also empowering ? the greater the level of skills available, 
the more functions of the business that can be handled by a member of staff. 
 
Figure 10 ? Interdependence of Skills  
(Cook, Hunsaker & Coffey, 1997) 
 
The diagram illustrates the effect of greater levels of skills on a broader level. 
User interfaces should ideally incorporate a just-in-time knowledge approach where 
contextual help is available on demand rather than being included well in advance of 
it being required, used seldom, and often forgotten. User friendliness ? while highly 
subjective ? is part of the evaluation of any system and will be examined in light of 
the above. 
 
 
 
  Page 48 of 200 
 
The level of ICT skills is closely related to the usage made of ICT tools. The current 
level of tools usage is limited in some cases. In those SHIs where property 
management systems are in place, the skills levels are at a more acceptable level.  
 
The vendors of the packages evaluated provide system training as part of their 
implementation plan. Some of these provide the training on a need basis ? training 
on certain aspects of the system is provided when the client actually begins to use 
the system. This is the ideal method of training as the trainee is able to practice the 
required skills immediately rather than after a delay of days, weeks or even months. 
 
The effectiveness of vendor training will be enhanced by a general improvement in 
overall ICT Skills. The two main levels required initially are: 
 
? Basic computer literacy, which includes ? 
o Computer fundamentals ? finding one?s way around the operating 
system, familiarity with the various programs available 
o Keyboard and mouse skills 
o Use of a browser 
o Use of Email 
o Directories ? accessing, creating 
o Finding, editing, saving and printing files 
? MS Office 
o Excel 
o Word 
 
These are the more fundamental ICT skills that should be available to all staff 
working in the sector. The next level of ICT skills is that required for providing ICT 
facilities. While much of this is currently outsourced, there is an argument to have a 
certain amount of these skills available ?in-house?. It would then become possible to 
provide basic network and connectivity support, arranging for back-ups of systems 
and work-stations and to help ensure that the system is available as often as 
possible. 
 
The diagram below illustrates the levels of competence that are achieved with 
increasing levels of skills and education. 
 
 
 
  Page 49 of 200 
 
Level
 1
 Level
 2
 Level
 3
 Level
 4
 Level
 5
 Level
 6
 Level
 7
 Level
 8
 Some awareness 
of concepts and 
processes 
remaining 
fragmented and 
personal
 Elements are 
identified as 
discrete without 
interpretation or 
connection
 An awareness  of 
concepts and 
processes linking 
cause and effect
 An awareness  of 
concepts and 
processes with 
limited capacity to 
explain or interpret
 An awareness  of 
concepts, 
complexity and 
processes 
informing 
inferences and 
basic 
generalisations
 An ability to apply 
detailed 
understandings of 
concepts, 
complexity and 
processes to draw 
conclusions and 
propose solutions
 A well developed 
understanding of 
concepts, 
complexity and 
processes and 
generalise and 
draw conclusions
  
Figure 11 ? Levels of Competence 
(Adapted from Curriculum Framework Progress Maps) 
Many commercial training organisations are available to provide training on computer 
literacy and on MS Office. In addition, Services Seta has made courses available for 
the property management sector as well as for ICT skills development. This should 
be the first step in the development of skills. 
 
One common and increasingly popular way in which skills can be accessed is 
through business process outsourcing. When coupled with explicit skills transfer this 
is a powerful and low risk method of guaranteeing skills and service delivery, while 
also building competency into the organisation (e.g. the SPSH.) See Business 
Process Outsourcing on page 106 in more detail. 
 
4. - Generic Systems Specification 
 
4.1 - Background 
 
ICT systems are important enablers in any business initiative ? but their initial 
acquisition, customisation and implementation, as well as their ongoing utilisation, 
maintenance, development and enhancement is by no means a risk-free venture.  
 
 
 
  Page 50 of 200 
 
The first step in any systems specification process is to document the conceptual or 
logical requirements of the business free from any technology considerations. This is 
then followed by generic technology evaluation criteria, still largely at a conceptual 
level. 
 
These generic ? as opposed to specific - requirements are documented below, and 
express a minimum critical specification for a system to be used at a Social Housing 
Institution to manage its operations effectively. This is the final part of the business 
architecture as described above, and is illustrated in the functional map below. 
 
  
4.2 - Generic Business Requirements 
 
The generic requirements include space management, lease management and an 
accounting process. On an operational level, it maximises return, where minimum 
cost and risk are the cornerstones of any investment in real estate. It is necessary for 
a proven computerised system and management process that ensures high quality 
control with continuous improvement and innovation. On a strategic level, key 
performance indicators and investment indicators are required. The system must 
incorporate the following: 
? e-commerce and other features to take full advantage of the internet and 
cellular network technology 
? features such as electronic collection of rental through debit orders 
? tenant receipts from electronic bank statements 
? full email capability 
? electronic funds transfer (EFT) 
? retrieval of utilities electronically from third party meter reading companies 
? email of orders to suppliers and statements to tenants 
? short messaging through cellular network 
? professional and readable output forms and reports 
 
 
 
 
 
  Page 51 of 200 
 
The system must provide quick and easy access to the following: 
Housing Institution 
? Legal entity details 
? Banking details 
? Contact details 
? Domicilium 
Properties 
? Identification (erf no, physical address, size, location etc.) 
? Classification (retail, residential) 
? Construction areas and rentable units/areas 
? Accounting requirements 
? Metered services 
? Town planning and zoning details 
? Title deeds 
? Leases details such as 
? Commencement and expiry dates 
? Rental amounts 
? Escalation rates 
? Renewal conditions 
? Limitation on number of residents 
? Details of parking and storage facilities 
? Mortgage details and terms 
? Development information such as 
o Land value 
o Details of purchase agreement 
o Sellers details 
o Date of transaction 
 
 
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o Transferring attorney details 
o Date of transfer 
o Cost of improvements 
o Details of plans including planning permission 
o Development programme 
o Source of bridging funding and terms 
Contractor(s) 
Tenants 
? Identification 
? Contact details 
? Occupation 
? Banking details 
? Document control 
? Deposit control 
? Subsidy information 
? Credit record 
? General notes and reminders 
? Lease agreement details (renewal termination dates, options etc.) 
Suppliers 
? Identification 
? Classification (service provided) 
? Contact details 
? Vat numbers 
? Payment arrangements 
? Contractual particulars 
 
 
 
  Page 53 of 200 
 
4.3 - Functional Requirements 
 
Software development is a dynamic process and is characterised by change.   
Software projects often begin with unclear, ambiguous, and incomplete requirements 
which give rise to intrinsic volatility. Constant change in requirements is one of the 
main causes of software defects and a major issue faced by the software industry, 
but this is unavoidable in any evolving environment. (Association for Computing 
Machinery, 2004) 
 
An outline of the key functional requirements is represented in the following diagram 
with colours indicating functional groups. 
New Business 
Opportunities
 Security & 
Access Control
 Manage Space 
& Leases Bill Tenants
 Collection of 
Rental
 Other Tools and 
Utilities
 Projections & 
Budgets
 Instalment Sale 
/ Loan 
Management
 Asset 
Management
 Maintenance 
Management
 Control Cash 
Flow
 Asset Registers
 Investment 
Analysis
 Key 
Performance 
Indicators
 General 
Accounting
 Creditors 
Control 
(Accounts 
Payable)
 Debtors Control 
(Accounts 
Receivable)
 Property Management System Functional Requirements
  
Figure 12 ? Functional Requirements Overview 
 
The system must be designed around the general business process of a Social 
Housing Institution. 
 
1. On a day to day operational level to: 
 
 
  Page 54 of 200 
 
a. Bill tenants 
b. Collect money 
c. Process payments 
d. Control cash-flow 
e. Manage maintenance 
f. Administer leases 
g. Liaise with tenants 
h. Produce general ledger and cashbook 
 
2. On a strategic level to provide: 
a. Key performance indicators 
b. Projections and budgets 
c. Investment analysis 
d. New business opportunities 
See Appendix C - Functional Requirements of a Generic Specification on page 142 
for more detail. 
 
5. - Technology Requirements 
 
Like their general business maturity levels, the broad systems requirements for the 
various SHIs are extremely diverse. Some SHIs are staffed by computer-literate 
users managing high volumes of properties, with dedicated ICT support staff, while 
others are low intensity operations with a handful of employees who have limited 
formal computer skills at their disposal. 
 
The small SHIs are currently managing their portfolios without the assistance of 
sophisticated ICT skills, but their capacity and growth prospects are limited by the 
lack of adequate systems. In addition, their inability to produce information on 
demand may become a compliance obstacle for accreditation and a practical 
obstacle for sustained funding as the sector matures. In view of the diversity of the 
SHIs and the lack of ICT sophistication of many, any system introduced to benefit the 
entire sector should be easy of use with an intuitive user interface.  
 
The systems should preferably be web-based so as to minimise the hardware and 
network infrastructure requirements of at least the smaller SHIs ? but this in no way 
 
 
  Page 55 of 200 
 
excludes the larger SHIs who will play a leading role in stretching the systems to 
meet their needs, and thereby continuing to bring along the smaller SHIs? 
 
An added benefit of a centralised web based system is to enable even the smallest 
SHI to access sophisticated and functionally rich systems, growing their own skills 
along with their businesses to take advantage of more functionality as they require it.  
A simple interface to a system that allows for the capture and maintenance of 
property, rental, tenant, purchaser and accounting information is required by most 
with no requirement for an ICT infrastructure by the individual SHIs. The ICT system 
could be hosted and supported centrally for the entire sector. 
 
The system should be intuitive and easy to use. A web-based system hosted and 
supported centrally is the preferred option as this requires minimal ICT infrastructure 
and network maintenance for the individual SHIs. The dependence on specialised 
skills is also dramatically reduced ? local support to ensure baseline functionality and 
connectivity (browser access to the web) is all that is required. 
 
Ideally, the system should be rule driven so that each SHI can set up its own unique 
business rules to run the system. In addition the ability to start small and embrace 
functionality as required, as well as adding layers of users as roles within the SHI 
become more clearly differentiated, would be very valuable. Some of the more 
common software evaluation factors (other than functionality) are outlined below: 
 
 
 
 
  Page 56 of 200 
 
Table 2 ? Common Software Evaluation Factors 
Factor Typical Questions 
Compatibility ? Is it compatible with existing hardware and software? 
? Is it compatible with hardware and software provided by 
competing suppliers or is it proprietary? 
Connectivity ? Is it web-enabled so it can easily access the Internet, 
intranets and extranets on its own, or by working with 
other web browsers or other network software? 
? Can it be easily connected to wide area and local area 
networks that use different types of network technologies 
and bandwidth alternatives? 
Cost ? What is its lease or purchase price? 
? What will be its cost of operations and maintenance? 
? What are the secondary (indirect) costs? 
? What is the TCO (total cost of ownership)? 
Documentation ? Is the software well documented? 
? Does it include help screens and helpful software agents? 
Efficiency ? Is the software a well developed system of program code 
that does not use much CPU time, memory capacity or 
disk space? 
? Does the software automate repetitive tasks and assist 
the business in achieving its unique efficiency goals? 
Ergonomics ? Has it been ?human factor engineered? with the user in 
mind? 
? Is it user friendly, designed to be safe, comfortable and 
easy to use? 
Flexibility ? Can it handle existing business processes easily, without 
major modification? 
Hardware ? Does existing hardware have the features required to 
best use this software? 
Maintenance ? Will new features and bug fixes be easily implemented? 
? Who will do this and what skills are required? 
Performance ? What is its speed, capacity and throughput? 
Quality ? Is it bug free, or does it have many errors in its program 
 
 
  Page 57 of 200 
 
code? 
? What testing methodology was used, and does this 
remain in place as the product matures?  
Reliability ? What are the risks of malfunction and its maintenance 
requirements? 
? What are the error control and diagnostic features? 
? Does it support roll-back and recovery features, and at 
what level? 
Scalability ? Can it handle the processing demands of a wide range of 
end users, transactions, queries and other information 
processing requirements? 
? What are the bottlenecks in the growth of users, 
transaction volumes, properties, units, clients, leases etc? 
Security ? Does it provide control procedures for errors, 
malfunctions, and improper use? 
Support ? Are the services required to support and maintain it 
available? 
Technology ? In what year of its product life-cycle is it? 
? Does it use a new untested technology? 
? Does it run the risk of obsolescence? 
(Adapted from O?Brien & Marakas, 2001) 
 
6. - Discussion of ICT Options 
 
6.1 - Overview of Options (Rationale) 
 
The options available to the sector have been reviewed in the light of the needs of 
the SHIs and the sector as a whole, the National Housing Strategy and requirements 
of the SHF, SPSH and the Department of Housing. 
 
The National Housing Strategy is far reaching. The seven key strategies (as listed in 
Table 6 ? Summary of Policy Initiatives on page 137) require access to full 
information about the entire housing sector in South Africa. The Social Housing 
sector can be expected to play an increasing role within that sector, and accurate 
information is crucial to the achievement of the National Housing Strategy. 
 
 
 
  Page 58 of 200 
 
The Department of Housing?s own strategic objectives include the provision of full 
and accurate information, formulation and review of policy based on analysis of the 
sector using full information. That information can only be provided if information is 
available to the department from all parts of the sector. 
 
The ICT options available to the sector have therefore been reviewed not only in 
terms of their ability to assist the SHIs to improve capacity and efficiency but also in 
their ability to provide information to the Social Housing Foundation, the SPSH and 
the Department of Housing. The systems must therefore be ?open? or accessible 
(though secure) to appropriate bodies. The provision of management information that 
can be accessed to provide full information to the national bodies is therefore an 
important aspect of any systems that are available. 
 
Costs are always an integral part of any assessment. Related to this, affordability is 
another key consideration. Systems that may not be accessible in terms of cost to 
many of the organisations may become an option if made available on a wider basis, 
through a centralised hub. 
 
Usability and intuitive interfaces are considered as important components of any 
system, especially where availability of funds for training are not readily available and 
where it may be important to be able to replace personnel or introduce new staff as 
the SHIs grow without having a major impact on process. 
 
 
6.2 - Build or Buy? 
 
Software projects have a frighteningly poor success rate. This is not only limited to 
primary software development efforts, but also includes countless failed COTS 
(commercial off the shelf software) package implementations. Building software from 
scratch, assembling software from components, or even customising a package is 
therefore not something to be undertaken lightly. While initial capital costs may be 
reduced, and ongoing licensing costs largely avoided in a build project, these need to 
be evaluated against the costs associated with all stages of the development lifecycle 
including numerous iterations of analysis, design, project management, project team 
involvement, development, review, testing, implementation ? each stage having its 
own unique risks. 
 
 
  Page 59 of 200 
 
 
To counter this - and this is particularly relevant in South Africa - these licensing and 
maintenance costs are often priced in US dollars and therefore expose the 
organisation to currency fluctuations which could be dramatic. While exposure to this 
risk can be managed, it adds an overhead to the costs and cannot practically be 
ignored nor eliminated entirely. Another possible argument against packages is the 
issue of ownership ? not so much ownership in the sense of an asset but rather in 
the sense of control and prioritisation. This is a harder one to counter when the 
requirements are uncertain or likely to change, as is the case in the Social Housing 
sector. If the agile approaches discussed above are adopted - specifically where 
requirements are kept to a minimum - then this has a far greater chance of success. 
It does however require sustained access to appropriate skills which cannot be taken 
for granted anywhere, perhaps especially in South Africa where the skills pool is 
small and mobile. 
 
A further argument is that a COTS solutions work against innovation by imposing 
common practices and processes on all parties ? but in a sector which would benefit 
from best practice this is not an issue. In fact, the imposition of best practice is a 
positive factor ? especially where the expertise required to innovate (or even to 
specify the functional requirements in any depth) is not widely available. 
 
The debate over build vs. buy is not always so clear-cut though. Software package 
implementations ? especially of the larger ERP type systems ? often involves large 
scale customisation and extension, and this has all of the same challenges of 
bespoke development, albeit in a narrower frame since many of the foundation 
pieces can be implemented in their native form without modification. A more troubling 
concern is that agility is often compromised along with this extension and 
customisation. Add to this the very real risk of further releases to the packages being 
incompatible with some of the modifications and the balance may swing away from 
packages. 
 
Finally, the risk of vendor lock-in is something that needs to be carefully guarded 
against and well understood since it may well be unavoidable. 
 
While build options or variants thereof may be an option, the emphasis of the 
research has largely been on examining and reviewing existing systems. 
 
 
  Page 60 of 200 
 
6.3 - Vendor Selection 
 
While the emphasis on product evaluation usually centres on functionality, and 
occasionally stops there, it is also critical to evaluate the vendor. The following table 
highlights some of the essential vendor characteristics: 
Table 3 ? Essential Vendor Characteristics 
Vendor 
characteristic 
 
 
Why it?s important 
 
What to look for 
Single version 
of the product 
? When a software supplier 
maintains multiple 
versions of a product ? 
possibly for different 
technical environments or 
unrelated industries ? 
their R&D investment 
must be spread across 
those products and 
industries, reducing the 
number of new 
capabilities they can 
afford to develop for each 
one. 
? A single product suite 
and a single product 
direction that supports 
all customers 
 
? A focus on a closely 
related set of industries 
with common needs  
 
Track record of 
product 
improvement 
? Your business needs will 
always be evolving and 
you want your business 
system to evolve with 
them. 
? One of the biggest 
advantages of using a 
software package is to 
get improvements at 
nominal additional cost 
over time 
 
? A history of steady 
product releases with 
valuable 
enhancements. 
 
 
 
  Page 61 of 200 
 
Active user 
community 
? When other companies 
with similar needs to 
yours are using the 
software and providing 
input to its direction, it is 
more likely that it will 
continue to evolve to 
meet your needs 
? Indications that they 
encourage customer 
requests for 
enhancements as an 
important driver of 
product improvement. 
 
Periodic customer events 
where various companies 
share their experiences using 
the software with each other 
Structured 
approach to 
implementation 
and support 
? Implementation of a new 
business system is a 
major project with a 
significant impact on the 
company - you want to 
know that the risk and 
effort will be minimized 
? A clear implementation 
methodology with 
supporting people and 
tools. 
? Indications from 
references that they 
were happy with their 
project and the results. 
? A full range of support 
including: 
implementation 
consulting, Helpline, 
on-line self-service 
support, etc. 
(Table adapted from Software Evaluation Guide) 
 
Evaluation of the vendors included a process of assessing their stability. This was 
determined by assessing performance within the market place and whether they 
were considered viable based on their financial and competitive positioning. Market 
performance was considered by assessing the degree to which the vendor has 
successfully penetrated and won a share within target market segments.  
 
A final consideration was the vendors acceptance within the industry, whether 
industry and technology specialists have endorsed and favourably recognised the 
prospects of the vendor's product offering, market position and competitive strategies 
 
 
  Page 62 of 200 
 
? as well as the value they are perceived to add in terms of business knowledge and 
experience. 
 
 
6.3.1 - Vendor Lock 
 
The software market is driven by differentiation, not standardisation, and it is often 
innovative (i.e., non-standard) features that secure software sales. (Software 
Engineering Institute, Commercial-Off-The-Shelf Software). 
   
The temptation to take full advantage of unique product features is understandable, 
especially in high-end, expensive products. Using vendor-specific features can 
provide enhanced system capabilities, but on the other hand the sustainability of the 
system is then dependent upon a single supplier. There is a complementary 
temptation to insulate systems from specific products, usually as a hedge against 
market dynamism. For example, if a vendor goes out of business a new product can 
be inserted in place of the old, and clients will not be affected. Insulating products 
provides stability, but an abstract interface that can be mapped to competing 
products forces the system to rely on the common subset of features found in 
products. 
 
Although there is no universal answer to this very real trade-off, it is important that 
any decision is made in full recognition of the conditions in which unanticipated and 
de facto vendor lock can arise. One simple technique is to ensure that every product 
used in a system has a viable competitor that is commercially available. If 
competitors exist, then a separate design decision about whether or not to insulate 
the design from the product (through abstract interfaces, for example) can be made.  
 
If there are no viable competitors, however, no amount of insulation can hide the 
reality of vendor lock. Note that ?standards? are not guarantees; in some cases 
vendors extend standards (SQL is a classic example), while in other cases too few 
products may implement a standard to prevent de facto lock-in. Another technique for 
the designer to avoid vendor lock is to allow the use of product-specific features, but 
only for non-critical or discretionary parts of a system capabilities that can be 
sacrificed. This can be a good compromise, but it does introduce a very slippery 
slope. While vendor dependence is inevitable and unavoidable, especially in the 
 
 
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early stages of a project and an industry, care must be exercised to avoid 
overdependence ? but this is a thin line and difficult to see clearly except perhaps in 
hindsight.  
 
 
6.4 - Commercial Off the Shelf (COTS) Software 
 
A high-level checklist has been drawn up to enable data collection and easier 
comparison of different products. This is specifically not a weighting and scoring 
model ? the reasons for this approach and the actual evaluation model is presented 
in section 7 on page 63. The evaluation sheets have been included in Appendix D - 
COTS Software Evaluation Forms on page 151. 
 
The major advantages of purchasing a commercial off-the-shelf software package lie 
in the belief that: 
 
? The cost of software development has been borne by many 
? Bugs have been detected and fixed 
? There is a large saving in time and effort as against custom development 
? Many clients have contributed to an increased level of functionality 
 
In many cases these prove to be true. A ready-made package that suits the 
organisation?s needs with little customisation can usually be delivered much faster 
than a design and build equivalent. And of course, the cost of development can be 
recovered from many purchasers. Some software companies pride themselves on 
their responsiveness to the user groups and add a range of functionality suggested 
by clients. Extensive testing and wide usage have helped eliminate the bugs. But the 
truth of these varies from one package to another. It must be borne in mind that in 
some cases the costs of purchasing and implementing a software package can far 
exceed the costs of custom development. This can occur especially where the 
package does not meet all of the requirements of the client and large amounts of 
customisation have to take place. Experiences of major implementations of ERP and 
other systems where customisation has run into many years abound. In the case of 
new packages, the risk of bugs is as much evident as in a custom development. The 
 
 
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risks involved in the purchase of a software package should not be underestimated, 
and a number of questions should be asked throughout the evaluation process:  
 
? Does the package meet the needs of the organisation?  
? Can the system be used off-the-shelf or will a large amount of customisation 
be required?  
? Does the product fit with local conditions?  
? Does the vendor have a strong enough local presence to offer meaningful 
long-term support?  
? Is the technology base sound?  
? Is the system scalable? 
? What are the long term costs of ownership, and the cost of growth? 
? Can the organisation customise the product itself?  
 
Often, the purchase of a software package involves locking-in to the vendor that has 
supplied the package. Enhancements and customisation may only be executed by 
the supplier. In these cases, long term costs can far exceed those associated with 
providing in-house support for a custom designed system. Although there are risks 
associated with the purchase of a product, these can be minimised by adopting 
certain strategies:  
 
? Customisation must be limited to the bare essentials 
? A large part of the customisation can be carried out in-house (e.g. in a rules 
based system) 
? The vendor has a good track record and the chances of the vendor 
disappearing are minimal 
? Check that the system is scalable, the costs of growth and renewed licence 
fees 
? The technology basis is current and affordable 
? Wherever possible, select a platform independent option 
 
 
  Page 65 of 200 
 
A quality software package may indeed prove to be a time and cost saver, at least in 
the relatively short term. A well selected package can also score against custom 
development especially where there is no in-house expertise in the field. The risks 
associated with purchasing a package can be minimised through the use of a 
rigorous selection methodology.  
 
6.4.1  - Nicor 
 
6.4.1.1 - System Usage at SHIs 
 
The Nicor system is in use at a number of the SHIs either in-house or hosted. One 
site is the Johannesburg Housing Company (JHC) where Nicor was implemented 
about three years ago. JHC are running the system in-house through an outsource 
company ? PCB Technologies. Semag have approximately five staff members and a 
fairly substantial property portfolio. Nicor manage all of Semag?s administration as 
well as remotely hosting the system. The JHB Trust for the Homeless is another user 
of Nicor system using JHC?s facilities. First Metro in Durban is another user of the 
system. The other SHIs using the system at present all use the system on a bureau 
basis. 
 
Two main modules are used ? the property management module ?PropPro? and the 
financial management module ?FinPro?. Although the FinPro module can be run 
alone, it is required for the PropPro module which does not integrate to other 
accounting packages. Semag only have access to enquiry facilities from the system. 
They have applied for ADSL to attain faster access to the remotely hosted Nicor 
system. The new manager of this SHI had been awaiting access to the system for 
two months. The manager and staff were not unhappy with the system, but were 
concerned at the level of training and support. They expressed the view that they had 
little idea of what information they could access from the system. 
 
JHC has a relatively large and stable staff, who are at ease with the property 
management side of the system. They are able to use this effectively, and are happy 
with the facilities offered by the system. However, a number of shortfalls were 
identified ? rent increases must be applied to each building separately although JHC 
apply all rent increases simultaneously across the board. JHC?s financial manager 
 
 
  Page 66 of 200 
 
found the financial side of the system to be extremely difficult to use and to set up. 
She stated that it works in reverse to all other accounting packages, and took many 
months for her to manage to use the system as required for the business. The 
budgeting tool was also found to be very difficult to use, and the company resorted to 
using Excel to budget. 
JHC?s view was that while the system is able to handle rentals fairly efficiently, 
comments included strong criticism of the financial module. The system does not 
have an ?intuitive? user interface, has a ?legacy system? feel, requires fairly extensive 
training and does not include any facilities management. Excel is used to manage 
building maintenance. Much training is required to enable effective use of the system. 
Another major criticism is that information other than on standard reports is not 
accessible. The database design is based on old design methodology where both 
files and fields are given codes rather than meaningful names. 
 
On the positive side, Nicor have been sensitive to the needs of the Social Housing 
sector ? in particular JHC ? and have implemented a number of enhancements to 
accommodate the sector. One such enhancement was the addition of instalment sale 
functionality. This functionality has been limited to the calculation of interest on 
monthly balance and the use of a captured rather than system calculated. 
 
The system is not web-enabled but can be accessed remotely through cable network 
or MS Terminal Services through the Internet. The main focus of the system is on the 
commercial rental business, but Nicor has introduced customised changes to 
accommodate the Social Housing sector. 
 
 
6.4.1.2 - System Architecture 
 
The Nicor system is a client-server application built on a Progress database using the 
Progress tools. The system will run on all platforms except for Novell. The system is 
not web-enabled, but a dot net version is in the pipeline. Web access can be 
achieved using MS Terminal Services. Networking has traditionally been through 
diginet lines or call-back. Nicor are now making a network service available using 
ADSL. Nicor offer a selection of implementation options ? in-house where there is 
sufficient infrastructure and support, hosted by Nicor or hosted with full administration 
of the portfolio. 
 
 
  Page 67 of 200 
 
6.4.1.3 - Background 
 
The Nicor system was first implemented by JH Isaacs in 1977 as their in-house 
property management system. The system was later outsourced, further developed 
and made available to the real-estate property management sector. A number of 
enhancements have been made to the system specifically for the Social Housing 
sector.  
 
 
6.4.1.4 - Functionality 
 
The Nicor system covers most aspects of property management, especially for rental 
business.  
 
The functionality of the PropPro system includes: 
? Payment of commissions 
? Electronic receipting of tenant payments from multiple bank accounts directly 
from bank statement downloads 
? Automatic generation of recurring charges 
? Apportioning of bulk charges to tenants 
? Automatic generation of tenant invoices, rent-rolls and so on 
? Portfolio management enquiries 
? Credit control  
? Electronic meter reading capture 
? Integration with financial suite FinPro 
? Integration with Word & Excel 
? Loan / Instalment sale system 
 
The FinPro financial suite includes: 
? General Ledger 
? Cash Book 
? Creditors 
? Direct Cheques 
? Report Writer 
? Budgets 
 
 
  Page 68 of 200 
 
? Inter-company Loan Accounts  
? Group Consolidations 
 
A wide range of standard reports are available within the Nicor system. Most of these 
have extensive drill-down facilities. A facilities management module is currently under 
development. Additional modules that are available include Call Centre, Data 
Warehouse and Fixed Assets. 
 
 
6.4.1.5 - Pricing 
 
It must be stressed that these prices be used as a guideline only. Nicor own the 
software and are therefore able to negotiate much more favourable terms for the 
Social Housing sector. The system is available as an ?Outright Purchase? where the 
client purchases the right to use the software and hosts the system in-house. This 
involves a capital outlay and an annual renewal fee. 
 
The bureau option involves a monthly fee. The software is hosted on Nicor premises. 
Nicor take responsibility for the database and system administration as well as data 
back-ups. Pricing is per module per concurrent user. There is a reduction in the price 
where there are a greater number of users. 
 
The cost for 5 users on the purchase model is R 137,825. 
The renewal licence includes all upgrade is calculated at 17% p.a. on the initial 
licence fee escalating at 10%. The first year renewal is R 23,666 
 
The bureau option involves an upfront payment for the Progress database of R 8 625 
Thereafter a monthly fee of R 7 625 per 5 concurrent users. The Progress licence fee 
is renewable at 18% of the initial cost. Nicor are able to negotiate discounts on the 
Progress licence fee for start-up SHIs. 
 
 
6.4.1.6 - Conclusions 
 
 
 
  Page 69 of 200 
 
The Nicor system currently supplies a large portion of the Social Housing sector with 
a property management system. One of these runs the system in-house, the others 
use a bureau service. While the system does have some current limitations, there is 
a strong argument to retain the system for those that are using the system and to 
avoid the transfer costs learning curve associated with the implementation of a new 
system. Nicor are prepared to discount the software for the sector.  
 
The main limitations of the system can be summarised as: 
? the absence of facilities management 
? the system is not web-enabled 
? ?legacy system feel? 
? Difficult to use accounting system 
? Access to information outside of standard reports 
? No access to source code to make modifications 
 
In favour of the system are: 
? Open platform 
? Integration with MS Office 
? Integration with meter reading 
? Local support base 
? Flexible pricing for SHIs 
? Functionality of overall system works 
? Ability to run as bureau 
? Ability of vendor to do all administration 
 
Nicor have a fairly substantial support base of about 15 developers and an equal 
number of consultants. Nicor have developed a number of enhancements to their 
system to accommodate their clients in the Social Housing sector. The pricing 
structure of Nicor is user and module based. 
 
 
 
 
 
 
 
  Page 70 of 200 
 
6.4.2  - JD Edwards 
 
6.4.2.1 - Existing SHIs 
 
The JD Edwards package is in use by Cape Town Housing Company (CTCH) as a 
hosted service on a three year contract, expiring in June 2005.  The functionality of 
the system meets the requirements of CTCH. A new module to handle the instalment 
sales has just been added to the system ? this represents all of the business 
processes carried out by CTCH. CTCH found the process of adding enhancements 
to the system very lengthy. CTCH are currently reviewing other systems ? mainly 
with a view to saving on cost.  
 
The system has been looked at by other SHIs but has not been implemented. The 
main reason for this is the cost associated with individual ownership. While the cost 
of providing the system for individual SHIs remains prohibitive, the use of this system 
on a shared basis remains a viable possibility. 
 
 
6.4.2.2 - Background 
 
The JD Edwards Financial and Real Estate system is owned by PeopleSoft and 
supported by Deloittes. As such, a substantial support base is available. The JD 
Edwards system is an Enterprise Resource Planning (ERP) system. It is a fully 
fledged financial system and other industry-specific modules have been added 
around it. One of these is the real-estate module which provides a fully 
comprehensive property management system. Other modules available include 
Project Management and call-centre software. Being a full ERP system, JD Edwards 
features strong financial management and a rule based system allowing for great 
flexibility. The real-estate module is fully compliant with the South African legislative 
environment, can handle property development, project management, maintenance 
scheduling and creates job cards.  
 
 
 
 
 
  Page 71 of 200 
 
6.4.2.3 - Architecture 
 
JD Edwards is an open, platform independent web-based system. It can be run in-
 house or over the Internet. The system is predominantly rules based. Individual 
screens can be set-up to show information required in the sequence needed.  
The system is structured to manage multiple companies and multiple entities from 
within a single installation. Each can have its own configuration through the rules 
base. Implementation is limited to the server ? there is no need to install the software 
on individual work-stations.  
 
The system is fully web-based. It can be run in-house at a client, or may be hosted 
by a client or by Deloittes. A number of databases are suitable for JDE ? including 
SQL Server, DB2 or Oracle and the system is platform independent. Implementation 
is recommended on a stepped basis, especially for the smaller less sophisticated 
SHIs. Additional functionality may be added as the SHI grows and becomes familiar 
with using the application. 
 
 
6.4.2.4 - Functionality 
 
The system includes the automatic creation of invoicing, bank links and 
reconciliations, and has an accessible database that can be queried at various levels. 
Much of the system is rules based, and rules can be set up for each individual entity.  
The JDE system is able to calculate instalments for instalment sales, and is able to 
calculate interest on a daily, weekly, monthly or annual basis as required. It is able to 
apply global rent increases as well as per unit or per building.  
 
Functionality includes: 
? Lease maintenance 
? Rent capture from lease 
? Automatic invoicing 
? Rent increases may be captured for entire company 
? Other charges on invoice (meters, etc.) 
? Property maintenance ? repairs 
? Property maintenance ? routine 
 
 
  Page 72 of 200 
 
? Project management 
? Workflow 
? CRM 
? Document Management 
? Instalment sales functionality (limited) 
? Rules-based customisation 
 
 
6.4.2.5 - Pricing 
 
Pricing is based on the revenue of the company purchasing the software. As an 
indication of cost, a revenue basis of R500 million would cost in the region of R1m to 
R1.3 m for implementation of the full set of functionality including the workflow and 
project management modules, and the cost of implementation and training. Rental 
pricing is based on number of users, choice of hosting, and modules selected. 
 
 
6.4.2.6 - Conclusions 
 
The JD Edwards system is a strong contender for the Social Housing. Some of the 
advantages of the system for current and future use are: 
? Platform independence 
? Web-based 
? No installation on individual workstations 
? Comprehensive nature of system  
? Can manage multiple entities at several levels 
? Templates and views are easily customisable 
? Can be centrally hosted but retain full security for each SHI 
? Depth of local support 
? An unlimited number of users may use the system if bought centrally 
 
 
 
 
 
  Page 73 of 200 
 
6.4.3  - MDA 
 
6.4.3.1 - Architecture 
 
The MDA system is built on an MS SQL Server database. Most installations use the 
free MDSE version of the database. The system is written in Visual Basic. Reporting 
uses Crystal Reports. The Data Model was originally developed using Erwin. The 
system employs FailSafe to manage the detection and correction of bugs and errors 
in the system. MDA recommend a minimum of a Zeon or Dual Processors processor, 
1Gb+ Ram running Windows 2003 Server for the Server for more than 10 users.  
Workstations should be P3 500 MHz+, 256 Mb+ Ram running Windows XP or 2000. 
The system is not web-based but can be accessed over the Internet using MS 
Terminal Services.  
 
 
6.4.3.2 - Functionality 
 
The MDA system is a comprehensive property management system for commercial 
property rentals. It has full integrated accounting functions. It has all of the 
requirements for property rentals including full maintenance and facilities 
management, automating bank reconciliation, debit order and electronic receipting, 
automatic invoicing lease and tenant maintenance. The system is marketed as an 
off-the-shelf package and features over 60 pre-defined reports. The system is widely 
in use (at about 100 sites) for commercial property and is able to handle a 
combination of commercial and residential property rentals.  
 
The system does not currently deal with sales or sales by instalment, though sales 
and purchases can be shown through the accounting system. The system includes 
full maintenance and facilities management functionality. The system does not 
include project management. The system features a KPI system for evaluating the 
level of service provided by contractors and other service providers. The system 
integrates with MS Office and all reports may be exported into Excel. Work is used as 
a mail-merge facility with the system. The system is able to dispatch mail using 
email, fax or paper. 
 
 
 
  Page 74 of 200 
 
6.4.3.3 - Pricing 
 
Costing structure is based on the number of users. It consists of an initial licensing 
fee renewable annually. A 20% discount has been offered to Social Housing 
organisations wishing to make use of the system. 
 
The cost of the system is as follows: 
? Single User  R 49,500 
? 5 User   R104,000 
? 10 User  R170,500 
? 20 User  R302,500 
Renewal licence fees are 18% of the non-discounted initial licence fee, escalating at 
the higher of 9% and CPI per annum. If the full MS SQL Server is required (more 
than 3 GB of data) then additional licence fees apply. Hourly rates for consulting 
services range from R445 to R695. 
 
 
6.4.4  - Novtel 
 
6.4.4.1 - Architecture 
 
The Novtel system is built in Visual Basic on an Access data base. It is designed to 
be run on a single work-station, but can be accessed remotely by other networked 
users using MS Terminal Services. The system is not web-based, but web access is 
achievable using MS Terminal Services.  The system has been adapted from a car 
rental system. The system is integrated with Pastel accounting. 
 
6.4.4.2 - Background and Functionality 
 
Two SHIs (Middleburg and Secunda) are due to implement the Novtel system 
shortly. The Novtel system is a fairly comprehensive property rental system. The user 
interface is a ?grid? showing property units on rows and a calendar date for each 
column. The system is able to issue invoices and other reporting monthly, but these 
must be initiated for each rental unit by the user.  
 
 
  Page 75 of 200 
 
 
The user may set up his own invoice design. There is currently no facility for 
instalment sales or for linking to meter reading companies. The system does have 
the ability to schedule regular maintenance tasks as well as ad-hoc maintenance and 
will create the appropriate job cards. A variety of pre-defined reports are available 
from the system, but there is no facility for user defined reporting. Because of the 
Pastel Accounting integration, the system includes the full functionality that comes 
with Pastel. 
 
 
6.4.4.3 - Pricing 
 
The costing structure is based on a once of payment for the installation and for 
Pastel accounting, and a monthly payment to cover maintenance, enhancements and 
licencing costs. The cost structure makes the product suitable for small organisations 
that do not currently have access to a property management system. 
 
These is an initial outlay of R2 589 and a monthly fee of R299  plus a registration fee 
of R6 000 per workstation for Pastel. Additional costs (MS Terminal Service and MS 
Small Business Server) amount to over R40 000 as minimum set-up costs. 
 
 
6.4.4.4 - Conclusions 
 
While the up-front costs are low, the system?s limits are a concern. The user interface 
is a grid of property unit and a calendar. The system has adequate functionality for 
rentals, but has no capacity to handle sales. The vendor provides the assurance that 
whatever is required by the user will be built in at no additional cost. There is no 
guarantee that these requirements will be incorporated into the system. While the 
system may be adequate for very small SHIs, it is cumbersome to use and lacks 
automation of basic steps (e.g. invoices) that are included in other systems and seen 
as an essential basic feature. It was also felt that the system in its current form ? 
essentially a retasking of a system from another industry - would be of limited value 
to a broader user base and severely restricted for more demanding situations. In 
terms of scalability extreme limits are currently in place. The system is run using a 
 
 
  Page 76 of 200 
 
single instance of the program running on a server using an MS Access database 
accessbile through MS Terminal services.  
 
 
6.4.5  - ManageIT 
 
6.4.5.1 - Architecture 
 
Manage-IT is shipped in three versions: 
 
? Manage-IT Pro ? this is a single machine version of the product. Uses an MS 
Access database 
? Manage-IT is a client-server version of the product. Uses an MS Access 
database 
? Manage-IT Enterprise ? Uses an MS SQL Server database, but can also use 
MySQL, and can be used for an unlimited number of units 
? The ASP version also uses an MS Access database 
 
 
6.4.5.2 - Functionality 
 
Manage-IT is a comprehensive off-the-shelf rental and accounting system from the 
USA. The system is not a web-based system, but there is a hosted ASP service 
available over the Web, and Terminal Services may be used for remote internet 
access. Manage-IT incorporates all aspects of property management for rental 
accommodation. It Includes: 
? Automated invoicing 
? Credit control 
? Management of applications 
? Screening 
? Property maintenance 
? Document management 
 
 
  Page 77 of 200 
 
? Reporting 
? CAM (common area management) 
? A knowledgebase is included in the Advanced and Enterprise versions  
? Letter-Writing software 
There is no facility to accommodate sales or sale by instalment ? but these can be 
reflected through the accounting system. The system includes letter-writing software. 
The system is easy to use with a friendly intuitive interface. The accounting 
component is a full accounting system. Additional ledgers may be added for 
additional functionality ? e.g. a Loan ledger and instalment sales ledger can be setup 
to handle instalment sales.  The vendor is willing to partner with a South African 
company to provide support and see to the localisation of the product. 
 
 
6.4.5.3 - Pricing 
 
The cost is very low ? and based on the number of users. Apart from the client-server 
version, Logic-Built also offer a hosted service through the Internet for a monthly fee. 
 
Manage-IT Advanced   $1 725.00 for first user 
     $ 300.00 additional concurrent users 
 
 
6.4.5.4 - Conclusions 
 
Manage-IT presents a simple easy-to-use system for managing property. Although it 
lacks specific instalment sale functionality, the accounting functionality is flexible 
enough to be used for this purpose. In terms of cost, ease of use and training 
requirements this may present a viable alternative to the large ERP systems on offer. 
 
 
6.4.6  - MIS Active Management Systems 
 
Several attempts were made to establish contact with MIS. At this stage there has 
been no meaningful contact, and information available is limited to their web-site and 
 
 
  Page 78 of 200 
 
brochure. The MIS Housing Solutions offers a fully comprehensive package for 
Social Housing focussing mainly on the rental aspect of the business. Missing 
components are those that handle sales and instalment sales. The system uses an 
MS SQL database and is sold as an add-on to the MS GreatPlains package. The 
system uses browser technology and as such is web enabled. Inevitable, some 
localisation and customisation will be required as well as establishing a business 
partner to support the product in South Africa. The Housing Solutions include the 
following modules: 
 
?  Rents 
?  Asset Management 
?  Repairs 
?  Lettings 
?  Contractors 
?  Planned Maintenance 
?  CRM 
?  Services Charges 
?  Development 
?  Desktop 
?  Cash Receipting 
?  Workflow 
?  Document Imaging 
?  Web Portal 
?  Repairs Diagnostics 
?  Private Property Management 
?  Business Object Reporting 
?  Mobile Working 
 
 
6.4.7  - Sx3 
 
Although several attempts were made to contact Sx3 representatives, we did not 
receive any response. For the sake of completeness, Sx3 has been included here 
briefly. The only information available was the information on their web-site. Sx3 is a 
leading supplier of Social Housing solutions in the UK, and has a presence in 
 
 
  Page 79 of 200 
 
Australia and Canada. The software is comprehensive, but does not handle sales or 
instalment sales. A degree of localisation would be required.  
 
The Sx3 system?s functionality includes: 
? Allocations & Homelessness  
? Asset Planning  
? Choice-Based Lettings  
? Customer Services  
? Rents & Arrears  
? Service Charges  
? Estates & Voids  
? Property Purchase  
? Repairs  
? Repair Finder  
? Planned Maintenance  
? Private Leasing  
? System Control  
? Business Accelerators 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
(Sx3 Architecture) 
Figure 13 ? Sx3 Architecture 
 
 
 
  Page 80 of 200 
 
6.4.8   - IFCA Property Plus 
 
6.4.8.1 - Architecture 
 
The IFCA PropertyPlus system is a modular but fully integrated system built on an 
MS SQL Server data base using Power Builder. The suite is a client-server 
application and is not web-enabled although the MS SQL data-base is suited to web 
applications. One of the modules has recently been released in a web version, and a 
web version of the main PropertyPlus module is scheduled for release in December 
2005. The system must be installed on each workstation with the database on the 
server. Full details of the implementation procedures ? which include a gap analysis 
and identification of requirements - are available. 
 
 
6.4.8.2 - Background 
 
The system was originally designed 18 years ago as a property management 
system. Although based in Malaysia, the system has become well established 
around the world and is in use at over 1000 sites worldwide. IFCA have introduced 
their product to the Social Housing sector in Southern Africa in recent years. The 
system was implemented for Namibia?s Social Housing sector in 2003 under the 
auspices of their National Housing Enterprise. It is also in use for Transnet Housing 
and the Botswana Housing Corporation. The NHE are primarily using the Loans and 
Constriction modules, BHC are using the rental component and Transnet are using 
the system for Property Management (rentals) as well as for their hotels.  
 
 
6.4.8.3 - Functionality 
 
The IFCA Property Plus package is described by the vendor as ?comprehensive and 
fully integrated business software?. Unlike many of its competitors the software was 
built for anyone involved in ?building, selling or renting? property. The system includes 
full project management focusing on the financials of the project and the allocation of 
funds. Details of contractors, sub-contractors, charges, rates and track record are 
recorded in the system. The suite is designed to handle all aspects of property 
 
 
  Page 81 of 200 
 
management including managing development projects, property sales and rentals. 
Facilities management is a strength of the system. The system has its own financial 
module which is a fully functional accounting system. The financial system is fully 
integrated to the property system, but is optional ? the system can be used with other 
accounting packages through standard interfaces.  
 
The system has full functionality to handle instalment sales. Full mortgage loan 
facilities have been added to the system as a result of the company?s involvement 
with the NHE. The Property Plus suite comprises the following components: 
? Property Sales 
? Property Management 
? Construction Management 
? Customer Relationship Management 
? Business Intelligence, and the 
? IFCA Financial package 
 
In addition there is a Loans+ module which can be used to administer loans and 
calculate interest. This would be of use especially for instalment sales. Other aspects 
of the system are the document management, customer relationship management, 
workflow and built in Business Intelligence.  
 
 
6.4.8.4 - Client Feedback 
 
The General Manager of NHE was very enthusiastic about the system and its 
suitability for their needs. IFCA South Africa carried out a lot of customisation for the 
organisation initially, and now the system is running extremely well. Prior to the 
system implementation in July 2003, NHE was running most things manually and 
most staff were computer illiterate. However, with training and the right components 
being installed everything is going extremely well. NHE are focused on the provision 
of housing through sales. NHE build, sell and finance the provision of housing units. 
They provide finance to home buyers on a mortgage bond type basis. Much of the 
loan functionality in the IFCA system is in place as a result of this development. 
 
The CEO of BHC felt that the PropertyPlus module was very good and reliable and 
could handle the requirements for property rentals and maintenance extremely well. 
 
 
  Page 82 of 200 
 
The BHC business is involved in development of housing, and rentals or deferred 
sales. They had initial concerns about the local support base for IFCA, but this has 
been largely resolved with the establishment of IFCA South Africa and the growth of 
the local support base. 
 
 
6.4.8.5 - Pricing 
 
IFCA have quoted the following prices for the system: 
 
15 User System   R 174 000 (allowing a 50% Social Housing 
discount) 
 
Implementation:   R 287 000 based on 89 days. 
 
Annual renewal is quoted at 15% of initial licence fee. 
 
A plan for a 100 User system spread over 7 servers amounts to R 1 234 000 
 
 
6.4.9   - MRI 
 
6.4.9.1 - Architecture and Background 
 
MRI is an ERP system now owned by Intuit. As with other ERP systems, MRI is a 
rule based system. MRI uses an MS SQL Server as its database. The system can be 
installed using either SQL Server or MSDE depending on the volume of data. It is 
available in a Windows Client-Server or web version. MRI is a full ERP system in use 
in various organisations around the world. It is in use by Old Mutual PLC to manage 
their property portfolio, as well as Transnet Pension Fund, and other organisations in 
South Africa. The property management modules are primarily aimed at the 
administration of rentals. One of MRI?s clients was less than enthusiastic about the 
system, and advised us to get a test version to try out before making any decisions 
on purchase. He also advised that we would be better off using Acc-Pac than the 
system?s own accounting part. 
 
 
  Page 83 of 200 
 
 
6.4.9.2 - Functionality 
 
Automatic rent invoiced which include any other expenses (e.g. water and lights) can 
be generated from the system. Much of the system is rules based. Screens and 
reports can be customised to reflect the company?s own look and feel and to produce 
reports. There are 250 standard reports in the system, but there is also a facility for 
producing customised reports.  
The system does not have a specific project management component, but the task 
management module may be able to provide for these needs.  There is no facility for 
handling instalment sales but the system can calculate interest and this could 
conceivably be handled through accounting transactions. 
 
The system does include a full property maintenance component and is able to 
handle both ad hoc and planned preventative maintenance. Details of contractors, 
pricing, expected time taken for specific tasks can be captured up-front. The suite 
includes an asset management component to control the property portfolio and other 
assets of the company. 
? A complete, centralised IT solution for property and asset management 
? A comprehensive database ensures real-time access to important leasing and 
financial information, allowing you to make informed decisions.  
? Modular product suite, which includes specialised retail, facilities and asset 
management modules.  
? Complete accounting capabilities including portfolio level and corporate 
accounting.  
? Over 400 standard reports that can be modified to meet unique business 
needs.  
 
 
6.4.9.3 - Pricing 
 
A quote has apparently been sent but has not been received. An indication of pricing 
for 20 concurrent users is R 500 000 for the core modules using an MS SQL Server, 
plus approximately R500 000 for implementation, 
 
 
 
  Page 84 of 200 
 
6.4.9.4 - Conclusions 
 
The system does not include functionality for Instalment Sales or project 
management although it does include most functionality required for the rental 
business. Interestingly, Intuit advised that they do not use the residential module in 
South Africa but use the Commercial Property module instead. The system uses MS 
SQL Server which restricts usage of the system to a Windows environment. 
 
 
6.4.10 - IBS OpenHousing 
 
6.4.10.1 - Architecture 
 
The IBS OpenHousing system is built on a Progress database using the Progress 
language. The system runs on a Windows or UNIX platform. Web-enabling software 
is available as an additional module.  
  
6.4.10.2 - Functionality 
 
IBS provide a comprehensive range of 19 integrated modules. These are available 
as separate modules. Web-enablement is available for both staff and customers for 
remote access. Optional modules include Workflow, Call Centre.  
 
A wide range of functionality is available. 
? A central database of people and properties is retained in the core database. 
Information created and modified from any of the modules is saved centrally. 
Features include search facilities, navigation tools, audit facilities. 
? Waiting lists ? all aspects of housing allocations 
? Rent accounting and arrears monitoring 
? Cash receipting 
? Factoring of common expenses 
? Responsive repairs ? caters for the management of day to day requirements 
including documentation, invoicing,  
 
 
  Page 85 of 200 
 
? Planned Maintenance and Contract management ? used for planned and 
cyclical repairs 
? Development ? monitor the building and refurbishment schemes. 
? Contact management ? provides for recording and monitoring of all forms of 
communications. Provides instant access to the full case history of every 
communication logged 
? Workflow 
? Document image processing 
? Reporting ? a variety of reporting facilities are available including standard 
reports and letters, audit trails and data extracts. OPENQuery allows for full 
ad hoc reporting requirements 
? OPENFinancials  
 
The system includes a customer contact dashboard which pulls together all 
information held relating to any person or property. Each section of the screen 
contains summary information with full drill-down capabilities. The system is web-
 enabled through the OPENAccess module which allows the full system (or restricted 
views) to be accessed over the internet from anywhere. Tenants have access to 
information about their details of applications, tenancies and repair orders. 
 
A right to buy module is available that facilitates tenants ability to purchase properties 
which they are renting. The system does not currently provide for instalment sales. 
Other available modules include GIS. 
 
The full list of modules available is as follows: 
? Core Person and Property Database  
? Rent Accounting & Arrears 
? Void Management 
? Allocations & Waiting Lists 
? Responsive Repairs 
? Planned Maintenance 
? Supporting People 
? Homelessness 
 
 
  Page 86 of 200 
 
? Estate Management 
? Service Charges 
? Factoring 
? Development 
? Appointments 
? Choice Based Lettings 
? Workflow 
? DIP 
? OPENVue EIS 
? Temporary Accommodation 
? Right to Buy 
? Open Access 
? Web Enablement 
? Asset Register 
? Cash Receipting Software 
? Job Scheduling 
? Contact Management 
The IBS OPENHousing system is designed specifically for the UK Social Housing 
sector and would require customization to meet South African needs. 
 
 
6.4.10.3 - Pricing 
 
IBS is very keen to enter the South African market by partnering with Progress SA. 
Progress SA is very interested in partnering with IBS to provide the service to the 
local Social Housing sector. The prices below are for a selection of core modules.  
 
 
 
 
 
 
  Page 87 of 200 
 
ITEM       5 users  15 users  50 users 
  
Core Person & Property Database    ?5,000  ?7,500   ?10,000 
Cash Receipting     ?7,500   ?7,500   ?10,000 
Responsive Repairs     ?10,000  ?12,500  ?20,000 
Planned Maintenance      ?7,500  ?7,500   ?10,000 
OPENQuery (reporting)    ?10,000  ?15,000  ?15,000 
  
Rent Accounting and Arrears    ?12,500  ?15,000  ?17,500 
Allocations & Waiting Lists    ?10,000  ?12,500  ?15,000 
Service Charges      ?5,000   ?7,500   ?8,500 
  
Progress Run-Time Licence     ?3,725   ?11,175  ?30,000 
Financials Core Modules (4 Users)   ?16,000  ?16,000  ?16,000 
Implementation (Day rate ?800 + expenses)  100 days  100 days  100 days  
  
Implementation would likely be a collaborative effort with Progress SA picking up 
from an IBS advance team. 
 
 
6.4.10.4 - Conclusion 
 
IBS OPENHousing provides an impressive solution to Social Housing requirements. 
However, customization will be required for the South African version. One such 
requirement is to introduce the instalment sale functionality. The main obstacle to 
implementation in South Africa is that the proposed partner ? Progress SA ? has not 
previously managed an implementation this system nor provided any support. Much 
of the functionality is specific to the UK and customisation would be required. IBS 
proposes to do the first half of the implementation themselves ? a process that will 
attract additional costs of travel and accommodation. The lead time for a first 
implementation in a new country is also likely to be longer than for an implementation 
of a system already supported here. 
 
 
 
 
 
 
  Page 88 of 200 
 
6.4.11 - FatFish (Cubit) 
 
6.4.11.1 - Architecture 
 
Cubit and FatFish are built on a PostgreSql database using PHP as the development 
language. The system is browser based using the Mozilla Firefox browser as the 
preferred delivery mechanism. 
 
 
6.4.11.2 - Functionality 
 
Cubit covers the full accounting functions of General ledger, cash book, journals, 
receipting, and bank reconciliations and is able to handle payment of salaries, wages 
and so on. Some document management is included ? copies of original documents 
whether in image or electronic forms can be attached to any item. The system uses 
browser technology as the delivery mechanism and runs on the Mozilla Firewall 
browser. The database is PostgreSQL. The Fat Fish component is primarily aimed at 
commercial estate agents and handles sales, property listings and rentals. It is able 
to calculate interest for housing loans and to detail the costs associated with buying 
or selling property. The rental side includes lease details, owner and tenant 
information, details of the accommodation. Copies of lease agreements and so on 
can be attached to the property details. The system will produce invoices for rentals 
and other charges can be added on. However, each invoice must be requested 
separately each month. Invoices can be emailed, faxed or printed from the system. 
The system has no facility for managing or scheduling property maintenance or for 
handling sales by instalment.  
 
6.4.11.3 - Pricing 
 
Cubit is a commercially open-source accounting system developed and maintained in 
South Africa. Fat Fish is an estate agents system built onto the Cubit accounting 
system. Although cubit is open source, there is a licensing fee to cover updates ? 
including the annual tax tables and changes due to changes in South African 
legislation. The licence fee is waived for NGOs. FatFish charge an annual licence fee 
of R1400 per installation. 
 
 
  Page 89 of 200 
 
 
6.4.11.4 - Conclusions 
 
This system falls short of the requirements of the Social Housing sector, but 
represents a low cost option for smaller SHIs if some modifications to the system are 
put in place. The suppliers of FatFish will allow changes to be made to the system. 
 
 
6.4.12 - Wocus4All 
 
6.4.12.1 -  Architecture 
 
WOCUS4all Is built using an RAD/case tool BRE4all. This tool can be used to 
facilitate additional changes to the system either by Centric or by the user. System 
design is object oriented. The system runs on a Windows platform. Generic 
functionality is built into the system, and business specific functionality is added by 
means of business rules. The system is rules based which is a plus, although the 
underlying rules architecture and depth could not be evaluated. The system is based 
on three-tier architecture: 
 
MetaModel
 Model
 Data
 BRE4all
 WOCUS4 all
  
(Productinformatie WOCAS4all) 
Figure 14 ? High Level ICT Architecture for Social Housing Sector 
The structure is open allowing for simple links or integration with third party 
applications.  
 
 
  Page 90 of 200 
 
6.4.12.2 - Functionality 
 
There was little opportunity to examine the functionality of this system. However, the 
system appears to be very comprehensive in its functionality. 
 
? User access is secure, using user roles to define access to various aspects of 
the system. 
? The system is focused on the customer which forms a central part of the 
system. 
? The system includes functionality for budgeting, forecasting and scenario 
building. 
? Full financial functionality 
? Property maintenance ? repairs 
? Planned maintenance 
? Full rental functionality 
? GIS 
? Architectural drawings 
? Development (project management) 
? Work flow 
? Document management 
 
The system does not currently include instalment sale functionality. However, 
according to the information at hand, additional functionality can be added quickly 
and easily using the tools shipped with the product 
 
 
6.4.12.3 - Pricing 
 
Details of licensing costs of the system are not available at present. However, the 
task of translating the system to English was estimated at R4.5 million in 2001. Since 
then, the system has been further enhanced with new features.. 
 
 
 
 
  Page 91 of 200 
 
6.4.12.4 - Conclusions 
 
A product description in Dutch was received. From the documentation it appears that 
the product is very comprehensive, but would require some modifications for the 
South African market. These could probably be managed using the BRE4all engine.  
The major task facing implementation of the product is the translation of the entire 
module to English from Dutch. Apart from the cost associated with this, the lead time 
to implementation would be severely impacted.  
 
 
6.4.13 - Rascal 
 
This was one of two wildcard options included in the evaluation to test the thinking of 
COTS solutions and evaluation methodology. The second is covered in the next 
section. Neither one has any specific property management functionality, but 
represent very different approaches to the provision of property management 
functionality. 
 
The Rascal system is in essence a proprietary software engine managing a 
comprehensive open source set of business objects and business rules as the 
building blocks of rich, agile systems. Many of its key value propositions talk directly 
to pressures and requirements of the Social Housing sector.  
 
Rascal?s 
? methodology maximises economic value added 
? framework provides for business process re-engineering 
? implementation customises workflow systems 
? application repository contains decades of business knowledge 
 
Furthermore, Rascal 
? offers the best of object technology 
? makes expert systems practical 
? ensures easy access to up to date management information 
 
 
  Page 92 of 200 
 
? builds information hierarchies for drill-down enquiry 
 
It was not documented further here since there were some concerns over its pricing, 
especially in light of its lack of specific functionality and the frequency of updates to 
its technology base. It was however included in the evaluation model to test 
assumptions and set standards for criteria, many of which it scored well on. 
 
 
6.4.14 - Compiere 
 
Similar in its scope and application to JD Edwards and other ERP systems, the 
Compiere system represents a radical shift in the economics of software, and 
perhaps an even more dramatic change in the concept of vendor, developer and 
owner of the software. As an open source system ? with a broader user base than JD 
Edwards. Compiere is worth considering as a wildcard option even though it would 
require property management functionality to be defined and integrated.  
Some of its key features include: 
 
Fast Implementation without final decisions: 
 
? Implementing Compiere is a matter of hours, not weeks or months. 
Competitive products use templates to tailor the software to specific needs ? 
so does Compiere ? but unlike their competition, Compiere does not restrict 
functionality - no "cookie cutter" predefined system. 
? Compiere does not require any irreversible implementation time decision ? 
nor does it make such a decision for its customers. The dynamic nature of the 
product talks directly to business agility concerns ? meaning that changes can 
be made on the fly, long after implementation, including charts of account, 
business calendars or even the accounting currency or accounting principles. 
Importantly, these changes do not require any specific technical skills or 
intervention. 
? This allows customers to go into production fast and incrementally define or 
refine the system as required. 
 
 
  Page 93 of 200 
 
? Traditional ERP systems are often criticised for being easy to customise at 
the outset, but extremely difficult to change once in production ? likening the 
customisation to cutting channels for concrete to flow through, then having to 
chip out the set concrete to make any changes. 
 
True Multi-Client 
 
? Compiere offers two parallel user interfaces: A browser based DHTML web 
based interface designed to reach applications from anywhere on the Internet 
and a high performance Windows Application with a rich user interface - 
allowing high speed  (mouse-less) data entry.  
? Both user interfaces are generated using the same rules with the same look 
and feel, while exploiting the advantages of their platform. 
? Few competitive products were designed for and fully support both user 
interfaces. In environments, where fast reaction is key and where you need to 
access multiple information sources - like in order entry - the "traditional" 
Windows based user interface cannot be replaced (yet) by an HTML based 
application. The client application is self-installing and automatically 
upgrading, for easy operation. 
? For remote offices, at client sites or via wireless devices, you want to access 
the application fast. Compiere provides a light DHTML interface with low 
server requirements. The Client Application is used in production with just 
128k bandwidth - the browser interface provides reasonable response with 
just 56k. 
 
Smart User Interface (Personalisation) 
 
? Complex applications have a long learning curve as you need to know what 
the different options mean. Compiere uses a different approach. 
? Compiere uses context sensitive Personalization. You only see what you 
need! For example, if you don't use foreign currencies, you don't see it - but it 
is there in the situations where you need to transact in a foreign currency.  
 
 
  Page 94 of 200 
 
? Another example is the different processes and fields required for different 
payment options. You only see the information required in that specific 
situation and context.  
? All information entered is immediately validated; data entry tips are provided. 
The consistent user interface is generated based on rules, resulting in an 
extraordinarily stable application. Without hand-coding, Compiere provides 
cross field validation and supports field dependencies (e.g. the address is 
dependent on the customer selected). 
? You can rearrange the entry forms, hide fields, change colours and fonts as 
well as change labels and add customer specific help and hints. Advanced 
users can add fields and create validation rules. 
? The Compiere dynamic user interface makes the application easy to use and 
decreases the learning curve. The functionality is available in both, the HTML 
interface and the Windows Application. 
 
Rule Based Fail-Safe Architecture 
 
? Compiere is based on extensible business rules. Not only is the user interface 
rule based, but also processes and procedures.  
? The system provides an extensive set of rules and advanced users can refine 
and extend their business rules. The system always ensures its integrity, and 
a user cannot accidentally overwrite these rules.  
? In contrast to its competitors, Compiere was not designed assuming that 
everything works perfect and is fail-safe. Humans make mistakes, systems 
fail and there might even be the odd program bug. 
? Compiere allows the application to fail safely, always maintaining its integrity 
Failed transactions can be resubmitted or in the case of a process error (e.g. 
wrong rule) transactions can be reprocessed, correcting the previously 
unnoticed error. 
 
Truly Integrated Application 
 
 
 
  Page 95 of 200 
 
? Compiere's "Front Office" functionality - the customer relationship 
management - is fully integrated with the "Back Office" functionality - the 
traditional ERP. No interfaces, processes or time delays. 
? If you enable optional functionality like Project Management or Marketing 
Management functionality, the required details are captured directly at the 
source, providing you with the details required for exhaustive analysis. 
? The integrated OLAP Analysis functionality allows you to view your 
information in a slice and dice fashion. 
 
For the Global Market 
 
Today's marketplace - even for smaller business - is becoming global. You may need 
to provide additional languages - for customer and vendor interaction as well as your 
staff and you may need (or want) to accept foreign currencies. 
 
? Compiere is designed to provide all "multi" dimensions: 
? Multi-Language for Documents and User Interface 
? Multi-Currency for transacting or reporting foreign currencies 
? Multi-Tax supporting different tax systems (Sales, VAT, and combinations) 
? Multi-Costing in parallel (e.g. Standard Costing, Average, LIFO, ...) 
? Multi-Accounting for your legal reporting using different accounting principles 
(e.g. Cash/Accrual, International/US/German/.. GAAP) 
? Multi-Organization for different branches/outlets and/or legal entities 
 
 
6.4.15 - Microsoft Excel and Pastel Accounting 
 
SOCHO is using excel spreadsheets combined with Pastel with three custom add-on 
packages to manage their business. The add-on modules are: 
 
? interest fluctuations 
? client retention details 
 
 
  Page 96 of 200 
 
? an Invoice module 
 
The add-on modules are currently under development. The current systems handle 
some aspects of the business, and SOCHO are expecting the add-on modules to 
handle most of the required information. While very flexible and potentially rich in 
functionality, the Excel approach is not a desirable system in the longer term since it 
raises a number of important concerns: 
 
? skills required ? results can readily be obtained by anyone with basic skills but 
there are countless ways of doing things wrong or assuming results to be 
correct when they are not 
? consistency of business rules and process ? there is no way of embedding 
business logic short of convoluted programming of the Excel engine through 
VBA or Macros 
? security and control ? there is no way of limiting access to elements of the 
process, meaning that anyone can do anything (an all or nothing approach to 
security) 
? replication ? it is not uncommon for different versions of the Excel databases 
with different data to exist on different PC?s and servers, with versioning and 
lack of master copies becoming a nightmare 
 
This solution can at best be seen as a make-shift solution to allow small SHIs to 
function at their current levels of activity. Details are captured to some degree on 
Excel spreadsheets and accounting entries captured into Pastel Accounting. The 
process can be seen as a largely manual one allowing little potential for growth. In 
some cases, very little information is captured at all. Interestingly, Microsoft Excel in 
capable hands is a tremendously powerful ?expressive? system ? allowing for virtually 
anything to be done since it is so open. It is this openness and lack of structure 
however that also lets it down, especially in multi-user environments, where skills are 
of mixed and uncertain quality. It is therefore very valuable to model and refine 
business requirements ? appropriate in an evolving environment ? but has limited 
value where automation requirements are high, business processes need to be 
controlled and enforced, and where skills cannot be counted on. 
 
 
 
  Page 97 of 200 
 
6.4.16 - Microsoft Excel / SQL Monitoring System 
 
While not aiming to achieve the same as other systems, the SPSH has introduced a 
basic interim monitoring system consisting of a four page questionnaire using an 
Excel spreadsheet to facilitate the monitoring of the performance or non-performance 
of SHIs. The system has been developed by Praxis and is providing valuable 
feedback to the SPSH on the employment of funds aimed within the sector.  
25 SHIs are included in this system. The questionnaire is completed monthly by each 
participating SHI providing details of projects, instalment sales, rentals, arrears and 
financial position. The 25 participating SHIs are those that can be seen as the more 
successful SHIs in terms of providing housing. Information received from the SHIs is 
captured manually into an SQL database for analysis. While the purpose of the 
collection of information is to monitor the progress of the SHIs for the SPSH and the 
EU, the information collected is proving to be a valuable tool to the SHIs themselves 
? many had no prior financial information linked to activities. 
Because of a general lack of Property Management systems amongst the smaller of 
these SHIs, data must be captured manually by each SHI. Once an ICT system has 
been implemented if will be possible to simply map information from the application 
to the questionnaire thereby increasing the accuracy of the system. Information being 
captured and recorded by this system includes: 
 
? Monitoring of the progress of housing projects by SHIs 
? A summary of the performance of SHIs in terms of 
Housing stock management ? housing units completed, occupied and 
vacant 
Rents in arrears ? number and percentage 
Budgeted rental income 
Average cost of housing unit 
Average rent of housing unit 
Number of units per staff member 
Income ? rentals & other 
? Expenses 
 
 
  Page 98 of 200 
 
? Resources 
Development finance Secured 
Development financing used 
Capacity building grants ? secured, used, spent 
? Staff and tenants 
Number of staff and turnover 
Training and costs 
Tenants ? number, turnover 
Tenant training 
Tenant feedback 
 
Although the system was designed to provide information to the SPSH on the 
effectiveness of its programmes, the SHIs are finding the information of use since it 
provides them with a clearer picture of their own performance. 
 
 
6.5 - Summary of COTS (Package) Options 
 
The various packages reviewed above range from the very comprehensive to those 
that meet only some of the requirements specified for the Social Housing sector. The 
range included packages that may be used off-the-shelf without customisation or 
rules to differentiate one company from another to the super sophisticated.  
Off-the-shelf systems included FatFish ? a system for estate agents coupled with an 
open-source accounting package ? Cubit. Cubit allows a certain degree of flexibility 
including the ability to run a number of companies simultaneously from the same 
installation. Very attractively priced, the system included functionality to manage 
rentals, runs on the web and is platform independent but fell short in its ability to 
manage automatic invoicing, property maintenance and sales by instalment. It is 
certainly not designed for a large rental portfolio. 
 
Manage-IT is a competitively priced Windows based US system that manages not 
only the rental portfolio, but includes some functionality to handle property 
maintenance, automatic invoicing and even a letter writing feature. The shortfalls 
 
 
  Page 99 of 200 
 
included an inability to cope with any great flexibility or to handle sales. Made to be 
used as is, the system lacks any local support and is not web-enabled.  
 
Novtel is a new South African property management package attracting what looks 
like a competitive price but in fact turning out to be rather expensive. Its origins as a 
car-rental system clearly show through and the user interfaces are ugly. Written in 
Visual Basic, the program runs on an access database using MS Terminal Services 
for all networking requirements. The system lacks the ability to handle multiple 
companies, automatic invoicing, property maintenance or sales. It is not web-
 enabled. 
 
Nicor is the most widely used property-management software in the South African 
Social Housing sector. It has excellent functionality for managing rental portfolios and 
a comprehensive accounting system that works but is difficult to use. Its roots in JH 
Isaacs where a number of buildings were managed on behalf of various owners 
shows through, and the accounting system is very much geared to meet that 
scenario. The system does not currently have property management functionality. 
Functionality that was added for instalment sales is limited to calculation of interest 
on a monthly basis and cannot calculate the instalment. The system runs on a 
Progress database using the Progress development language. The system is not 
web enabled, but can be accessed on the web using MS Terminal Services. The 
system is platform independent. 
 
MDA was developed and designed primarily for commercial property management 
but is able to handle residential rentals very adequately. The property maintenance 
functionality includes performance measurement of service providers. The system 
uses an MS SQL Server database and will run on MSDE as a cheaper alternative. 
The system is very effective and works well, but is very much an off-the-shelf use-as-
 is type of system. There is no sales functionality in the system. 
 
The MRI system is an ERP system owned and marketed by Intuit. A property-
 management module has been added and the functionality for managing rental 
property is good. The residential property system is not used in South Africa as it is 
too US oriented, but the commercial property-management system works well as an 
alternative. There is no sales functionality in the system, and the price was amongst 
the highest of the locally available systems. 
 
 
  Page 100 of 200 
 
 
IFCA is a purpose built property system from Malaysia for anyone who builds, 
manages or sells property. The functionality is extensive and the company?s track 
record includes Social Housing initiatives in Namibia and Botswana. Pricing is by the 
modules chosen and the number of concurrent users. The system runs on an MS 
SQL Server database built with Power Builder. The system is not currently web-
 enabled, but a web version of the system is under development and expected in 
December 2005. The system is able to handle multiple entities with varying rule sets. 
Price-wise the system is rather expensive even after the generous 50% discount 
offered to the Social Housing sector. 
 
The JD Edwards ERP system is supported in South Africa by Deloitte and as such is 
probably the most strongly supported property management system available locally. 
The system is fully web-enabled, is platform independent and supports multiple 
entities at a number of levels. Deloitte have developed a number of templates and a 
fast track implementation methodology to deliver within three months. The 
functionality of the system is comprehensive and includes added functionality for 
managing instalment sales. The system is priced competitively and once purchased 
may be rolled out to an unlimited number of users without additional licensing costs. 
 
WOCUS4all is a Dutch system developed specifically for the Netherlands? Social 
Housing sector. The system was strongly recommended but unfortunately only 
limited information became available during the course of this project. The system is 
built using an RAD / case tool, and seems to have extensive functionality, although 
we could not identify any functionality for sales. The system is entirely in Dutch. 
Translating the system to English is a formidable task costing many millions of 
Rands. 
 
BSI OPENHousing and a number of supporting modules are available from the UK. 
This system was developed for the UK Social Housing sector. Functionality appears 
excellent, but sale by instalment is not currently available. The price by South African 
standards appears very high, and customisation to suit local conditions would be 
required. Not currently supported in South Africa, Progress SA is willing to partner 
with BSI to provide local support. The system is Windows based but includes an 
OPENAccess module that allows web access. 
 
 
 
  Page 101 of 200 
 
Two other UK systems ? Sx3 and MIS ? looked promising, but telephonic and email 
communication proved insufficient to provoke any response.  
 
RASCAL is a South African ERP system that is entirely rule-based and functionality 
would be provided through using the rules of the system. This offers total flexibility, 
but the system runs on old technology, is not specifically web-based or an ?open? 
system and proved to be rather expensive. The major part of implementation would 
revolve around setting up a comprehensive set of business processes and rules to fit 
the Social Housing sector which would involve all of the risks and challenges 
consistent with major software development efforts. 
 
Finally, Compiere is a web based open-source ERP application which offers many of 
the same advantages of JD Edwards, with some additional advantages in terms of its 
licensing and development models. It is supported in South Africa and is the only 
system reviewed which would tie in with the South African Government initiative to 
promote open source, and therefore raises some interesting possibilities. It must be 
highlighted though that although it has a solid accounting base and many of the 
generic features found in the other systems, it has no specific property management 
functionality and therefore must be evaluated as a higher risk, consistent with a major 
software development effort. 
 
While this is not an exhaustive review of all systems available world-wide, the main 
players in South Africa have all been adequately represented. 
 
 
6.6 - Open Source Software 
 
6.6.1 - Overview 
 
Open-Source software offers a very different paradigm for software users when 
compared to proprietary software. The key difference is, as the name implies, that 
the source code for the product is open and visible to the user. Coupled together with 
the fact that the software source code is openly available is the fact that the software 
itself is usually free. As a result of this vital difference between proprietary (closed-
 source) software and open-source software it is import to highlight many of the 
differences and advantages of using open-source software. 
 
 
  Page 102 of 200 
 
6.6.2 - Key Differences 
 
6.6.2.1 - Multiple Installation Bases 
 
Due to reduced license restrictions open-source software packages can be installed 
numerous times without additional costs. This has direct advantages for the users: 
 
? additional installations can be provided for training 
? developers or integrators can install their own copies in environments that 
best meet their needs  
? users can easily set up additional installations for disaster recovery 
procedures (DRP) 
? independent installations can be created for testing new functionality without 
affecting the production system 
 
Due to the freedom around installing the software most open-source software 
systems will run on a wide range of hardware and operating system platforms. Thus, 
although a production environment may run on high-end servers and use expensive 
proprietary operating systems, developers can often still work on standard desktop 
machines using operating systems of their choice. Similarly, test environments can 
be set up without the need for duplicating a possibly expensive and complex 
hardware environment. 
 
 
6.6.2.2 - Support 
 
Support is an important need when using any software and open-source software is 
no different. New users of open-source software often feel that there is not sufficient 
support. However, many of these products have a large user base. Additionally, the 
user bases associated with open-source products are often proactive and self 
supporting. Thus, although many of the support channels may be informal, many 
problems can often be solved within a few minutes by consulting the appropriate 
sources. That is to say that generally other users have already found solutions to the 
 
 
  Page 103 of 200 
 
given problem and a simple search via a search engine such as Google, or a search 
through user forums will often open uncover a suitable solution. 
 
This is in contrast to proprietary software that normally has more formal support 
structures. However, these support structures are often bureaucratic and layered. As 
such, a simple query will often take many hours, if not days or weeks before a 
suitable response is provided. Even then, this may require a lot of leg work on the 
part of the user to find the right channel of communication with the vendor.  
 
Furthermore, depending on the support contract or SLA this may result in direct 
additional expenses. These expenses would then need to be managed by the users? 
organisation and often the user (or administrator) simply leaves the problem 
unresolved. In addition to the informal support channels, many open-source products 
provide explicit support or customisations services as a means of generating 
revenue. In this way, the products will still have a core team of maintainers and 
developers that will extend and enhance the product. 
 
 
6.6.2.3 - Extensibility and Customisation 
 
It is very rare for a system to perform all the functions that are needed for by a user 
or organisation. Furthermore, there is a much greater likelihood that a large 
organisation will have complicated and unique requirements. When this occurs then 
the requirements either need to be met via third-party products or bespoke 
development. In either case this new functionality will need to be integrated into the 
system at large. Integration work is much easier to carry out when the system uses 
open standards and has a clear and rich set of APIs. Additionally, such integration 
work is facilitated by being able to see the source code so as to understand explicitly 
technical requirements and obstacles. 
 
Furthermore, many open-source projects inherently use a modular approach 
because these projects often reuse other open-source components that already exist 
and perform necessary tasks. This in turn results in open-source products exhibiting 
a clean internal design, architecture and code base that already caters for modular 
extensibility. 
 
 
 
  Page 104 of 200 
 
Inter-vendor politics can also inhibit the ease of integration of third party systems, 
whereas with open-source products it is unlikely that the maintainers or user 
community would try to prevent or inhibit the integration process. 
 
 
6.6.2.4 - Security 
 
Security is an inherently difficult aspect to ensure. One of the fundamental principals 
that has arisen in the security sector is that ?security through obscurity? simply does 
not work. That is, hiding the inner workings does not create a secure system. It 
merely means that more work must be carried out by an attacker to expose bugs that 
can be exploited. 
 
Table 4 ? Computer Economics Survey Results 
Perceived Advantage Percentage 
 
Less dependence on vendors 
Lower cost 
Easier to customize 
Better security 
No advantage 
 
 
44% 
22% 
17% 
3% 
14% 
(Scavo. F) 
The corollary to this is that if the inner workings of a system are totally visible to 
everybody then the security must be as a result of sound design, high quality 
implementation and good processes. In this way open-source products generally 
rapidly move towards a state of improved security. 
 
 
6.6.2.5 - Robustness and Quality 
 
No computing system is ever totally bug-free ? be they proprietary or open-source. 
However, many of the bugs are relatively simple to fix. With open-source software 
anybody with the requisite skills can attempt to fix a bug because the source code is 
available for inspection and changing. 
 
 
  Page 105 of 200 
 
 
As such, most open-source software maintainers receive a steady stream of small 
patches and fixes for their software. This obviously translates into direct benefits for 
the entire user community as all these bug fixes are incorporated into the next 
release or immediately made available as patches. 
 
With proprietary software, only the vendor (and maybe a few key partners) can 
access the source code and as such only they have any chance of fixing bugs. 
Therefore, there is a much smaller team involved in bug fixes. To compound this 
problem, many bugs only show up in particular settings and this makes it very difficult 
for the vendor to reproduce the bug in order to fix it. This also of course relates to 
vendor lock which is discussed on page 62. 
 
 
6.6.2.6 - Skills Availability 
 
Skills are needed to maintain and support products as well as to customise products. 
Ultimately individuals need to develop, maintain and grow their own skills base so as 
to make them available to the market place. 
 
To do this the individuals will need access to the tools and products in question. As 
discussed in above, open-source software is usually more freely available and can 
generally be installed on wider range of computing platforms. As such, is it easier for 
a prospective developer or system administrator to obtain a copy for themselves from 
which they can teach themselves the needed skills? 
This leads to a situation where the skills either more readily available or are acquired 
by individuals that are more proactive and very likely will be competent and as such a 
valuable asset to an organisation. By contrast, skills for proprietary products can 
often only be gained via explicit training courses and require the individual to gain 
access to expensive systems in order to learn. 
 
 
 
 
 
 
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6.6.2.7 - Independence 
 
In addition to the many valid points mentioned above it has come to light that an 
important consideration is ability of the buyer to reduce their dependence on the 
vendor. Computer Economics carried out a survey (Frank Scavo) of visitors to their 
website regarding the perceived advantages in the use of open source software. 
Table 4 ? Computer Economics Survey Results on page 104 reproduces the findings 
of the survey. To quote from the survey analysis (Frank Scavo, Key Advantage of 
Open Source is Not Cost Savings) 
 
?For software buyers, the best strategy is to consider mature and established 
open source products as well as proprietary software products that adhere to 
open standards. In this way, buyers can choose the best software product for 
the job, knowing that the value of their investment will be preserved without 
locking the organization in to a single vendor solution.? 
 
 
6.6.3 - Conclusion 
 
Open-source software offers many unique advantages to the end user and the 
community using the product. In addition to the advantages, open-source has cast 
light on different perspectives from which a product should be evaluated. In the end 
the most important point is that the business or organisation should attempt to 
understand all their needs and the implications of potential choices. In this way they 
are in a better position to ensure that the decisions they make provide the best 
opportunity to meet the immediate and future expectations and requirements that 
they have of an ICT system. 
 
 
6.7 - Business Process Outsourcing 
 
The biggest challenge that Social Housing in South Africa faces in the delivery of 
houses, is the shortage of skilled staff in management, finance and information 
technology. In this environment, some of the SHIs have opted for an outsourced 
solution which has become necessary for success. 
 
 
  Page 107 of 200 
 
 
Outsourcing is a management strategy by which an organisation outsources major, 
non-core functions to a specialised and efficient service provider. It is therefore the 
strategic use of outside resources to perform activities traditionally handled by 
internal staff and resources. 
 
Organisations outsource for various reasons, but some of the reasons might include: 
 
? Cost reduction. The Housing Institutions do not have to appoint and train 
personnel, implement and upgrade IT infrastructure, acquire and customise 
software, etc. Through the ?sharing? of the above with other outsourced 
clients, the Housing Institutions greatly reduce their costs related to the above 
functions. 
? High standards of service quality because the service provider is focussing on 
their core functions. 
? Gaining access to expertise that is difficult to acquire. These include specialist 
services such as legal, enterprise risk services, internal audit, forensics, etc. 
? Improving the Housing Institutions focus by encouraging management to 
focus on their core functions. Outsourcing provides management with extra 
time because they don?t have to focus on the non-core processes. 
  
The outsourcing solution provides for the financial, project and property management 
information system on an Application Service Provider (ASP) model. Thus the non-
 core activities are provided on a form of rental basis related to a monthly charge per 
unit. The daily management, control, decisions and customer interaction for the 
operation of the Organisation remain that of internal management employed by the 
SHI.  
 
The Application Service Provider (ASP) provides a highly cost-effective and efficient 
data management, processing and data storage solution to support the financial 
management function, through the use of cutting edge IT technology. 
 
 
 
 
 
 
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The service provision can be divided into four distinct areas.  
 
IT Systems Management Services 
 
? Hardware and software configuration. Advice on the supply of equipment to 
be used 
? System upgrades 
? WAN support 
? All maintenance to ensure the smooth and efficient operation of the system 
? Development of alterations or additions to the software to ensure the smooth 
and efficient operation of the system 
? Security - a security infrastructure to protect the integrity, confidentiality, 
availability, as well as access of the organisations data. This infrastructure 
should consist of dedicated protection components to ensure that the highest 
levels of security are implemented, maintained and controlled. The security 
infrastructure should consist of the following secure components: 
? Hosting - By hosting the hardware and software centrally the users can tap 
into the dedicated and customised application using Diginet, ISDN, or Telkom 
lines. Thus the institution does not need to invest in expensive resources, 
hardware or software and the costs associated in the maintenance thereof. 
The hosting facility must be protected by multiple access control systems to 
protect the confidentiality and security of the integrated business system. This 
will ensure that only restricted people have access to the hardware and 
software of the business system. 
? Firewall and Intrusion detection - The firewall and intrusion detection systems 
ensure secure level of access control to the business system. The firewall 
must offer complete firewall protection with IP Security (IPSec) Virtual Private 
Network (VPN) capabilities to provide secure communications between the 
ASP and the SHI. The firewall service should provide restricted Internet 
access to the secure servers on the VPN. The intrusion detection system 
must ensure that any attempts to gain unauthorised access to the systems 
will be detected and terminated in real time. This will ensure that unauthorised 
access to the systems are denied and repudiated. 
 
 
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? Application Security - Object-level application security such as user profiles, 
database security and operating system security must also be provided for. 
The object-level security ensures that application users are constantly 
validated to restrict information confidentiality to authorised users only. 
Security profiles must restrict users and to specific user roles and 
components of the software system. The operating system security must 
ensure restricted access to operating system functions to protect the system 
platform. This ensures that multiple tiers of protection measures have been 
implemented to protect confidentiality and access to the organisation?s 
information. 
? Technology planning 
? Daily data back-ups and disaster recovery 
? Application of the installation of data communication channels for the 
purposes of the operation of the system 
? Network administration and network monitoring and management for the 
provision of this outsourced function by the ASP 
? Training to the financial manager, or any other staff of the SHI, in the use of 
the application software and the workings of the internal control systems. A 
structured implementation methodology is crucial to the success of the 
implementation of software of this nature. The methodology should include 
tasks and deliverables. A project plan will must detail the stages of the 
implementation, together with the time scales and indicative effort of all 
parties involved. Product and technical consultants will be required throughout 
the implementation process to work alongside the staff and management of 
the SHI.  
 
The Application Service Provider (ASP) Service. 
 
This service offering should provide the SHI with a system that will enable the 
organisation to manage and administer all their financial transactions. The ERP 
(Enterprise Resource Planning) solution offered for this purpose should include a 
financial module, as well as the property management modules. These modules 
should be flexible enough to provide for them to be customised to cater for the 
unique needs of the organisation. Furthermore, as part of this service offering this 
 
 
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ERP solution must be hosted on behalf the SHI. This hosting will include aspects 
concerning, redundancy, back up, disaster recovery, etc. 
 
The ASP service offering should be seen as the base service offering provided to the 
Housing Institution. The ASP services should provide for the following: 
 
? Implementation of systems of internal control. 
? Payroll administration. A payroll system for the payment of all employees and 
contract workers, temporary staff and casual labour and for any expenses 
subject to PAYE. All current legislation, including that relating to public 
entities, must be applied in calculating PAYE. The ASP will be responsible for 
registering Semag for all relevant taxes and levies if and when required. All 
tax calculations, transfers and queries to and from SARS and the issue of 
IRP5 and IT 3 certificates, must be provided. 
? Management and reconciliation of bank accounts 
? Collection of monthly tenant payments electronically 
? Management of deposits by tenants or owners 
? Facilitation of payment of creditors. It must have the capability of effectively 
managing the procurement and payment process. The system must ensure 
that a payment can only take place if it has been budgeted for, if it has been 
matched to a previously approved order and invoice and if the payment itself 
has been authorised to take place. This will restrict unauthorised, fruitless and 
wasteful expenditure. 
? Preparation of monthly management accounts as when agreed. These 
reports must allow management to plan and make proper financial decisions, 
and should include: 
? Income Statement 
? Balance Sheet 
? Cash Flow 
? Debtors Age Analysis 
? Occupancy Levels 
? Amortisation schedules for outstanding capital on houses 
 
 
  Page 111 of 200 
 
? Variance reports 
The system must facilitate the monthly reconciliation of all general ledger accounts, 
including debtors and creditors, to ensure that monthly management accounts are 
produced within seven working days of month end. A solid system for the 
authorisation and validation of journal entries must be provided for. The funding of 
some of projects and contributions by Donor funding must be catered for. These 
funds would normally come with certain requirements. In some cases funds may be 
donated for a specific purpose and the Institutions will be required to report not only 
on the operational success but also on the way the funds were spent. The system 
must facilitate the required administration and reporting thereof. 
 
? Preparation of annual financial statements 
? Attendance of external audits 
? Preparation of annual budgets and cash flows. The sustainability and success 
of any organisation rests on its ability to manage its budget and cash flows 
effectively. To this extent the ASP will be required to work closely with 
management to put together an expenditure framework that will translate into 
meaningful budgets against which the SHI will be able to measure its 
performance. 
? Statutory secretarial work 
SHI?s generally obtain revenue from one main source, the provision of houses. This 
might either be rental or rent-to-buy or instalment sale or a combination of all three. It 
is important that adequate steps are taken to collect all funds timeously to ensure 
that the organisation maintains a positive cash flow position. The system should cater 
for electronic payment (either bank debit order, Electronic Funds Transfer (EFT) or 
Transwitch payments) rather than payment by cash. It must be flexible enough to 
cater for cash payments as and when they occur. These payments are to be 
automatically allocated against the debtors/ tenant (this allocation does depend on 
the correct details being ?attached? to the payment). Other bank deposits can be 
manually allocated on the system. It will be of utmost importance to ensure that the 
financial system promotes the vigorous collection of funds from tenants/owners. It is 
also submitted that a petty cash system will have to be implemented to take care of 
the minor, unexpected and incidental expenses that the Housing Institution is certain 
to incur. 
 
 
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The Business Process Outsourcing (BPO) Service.  
 
This service entails the performance or execution of certain business processes on 
behalf of the organisation e.g. financial advice, capturing of information, billing, 
posting, etc.  
 
The BPO service offering can be divided into the various business processes that 
can be outsourced by the SHI. Therefore, providing the organisation with the luxury 
of selecting these business processes for outsourcing and performing the remaining 
business processes in-house. The BPO services should provide for the following: 
 
? Financial support 
? Processing and capturing of data 
? Recording of movements in tenancy and ownership 
? Monthly movements of in owners/tenants charge updates and adjustments 
? Printing and delivery of monthly invoices and tenant statements 
? Rent roll, disbursement, arrears and vacancy reports 
? Registration of new tenants 
 
General Consulting Services  
 
These are generally performed on a project-by-project basis, for e.g. preparation of a 
business plan etc. The following additional services should be provided to 
management on request:  
 
? Advisory services - these services, are value-adding services available at a 
strategic level to capacitate management to make informed decisions when 
allocating limited resources to a variety of needs. Services include:  
? Strategic and financial policy advice, feasibility studies, business planning, 
performance management, benchmarking, risk analysis, capacity building and 
printing and posting of invoices.  
 
 
  Page 113 of 200 
 
? Financial Advice - should the SHI require the services of a Financial Manager 
or require additional assistance. This service would include: 
? Financial planning 
? Interpretation of the monthly management accounts 
? Strategic financial support to the General Manager 
? Contract drafting - Legal assistance with the drafting of the various legal 
agreements needed within the organisation. These documents may include: 
? Rental agreements 
? Supplier agreements 
? Documentation relating to the eviction process 
? Call centre - To assist with the business requirements to ensure effective 
communication. A call centre to deal with queries from the relevant business 
partners, when the volume of stock under management requires this function. 
To ensure effectiveness of this function the system should be integrated with 
the systems of the call centre.  
 
 
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7. - Analysis and Evaluation of Options 
 
7.1  - Selection of a Decision Support Tool 
 
Usually decisions are made by a group of people who first gather all the information, 
and then have a series of round table meetings to come to a consensus decision. In 
practice this process is usually painfully slow with a lot of time wasted by collecting 
data that in the end may have contributed very little to the final decision.  Often this 
process may involve using a spread sheet to allocate weights or scores ? in an 
attempt to deal with the complexities of the decision. There are many pitfalls using 
this approach ? firstly the misuse of numbers. 
 
When assigning weights, exactly what does the number mean? If alternatives are 
ranked according to preference, then it is meaningless to add various ranking 
numbers to get a total score. Usually interval scales are used - meaning that 
corresponding intervals on different parts of the scale has the same meaning, i.e. the 
difference between a score of 1 and 2 is the same as the difference between a score 
of 4 and 5. Interval scale numbers can be added and subtracted, but it is 
meaningless to multiply two or more interval numbers. When using weights and 
scores, ratio scale numbers should be used. (The same ratio on different parts of the 
scale has the same meaning).  If one uses the wrong type of scale the answers will 
not be accurate at best, or even meaningless.  The other problem with scores is that 
the assignment of weights is a somewhat arbitrary process. If a criterion scores a 3, 
why not a 4 or 2, and if I were to make that adjustment, how will it influence my final 
answer? 
 
After an evaluation of the various decision and support tools, the Analytical Hierachy 
Process was selected as the favourable method, as it includes both the rating and 
comparison methods of the other models. An important benefit of using this process 
is that it is much easier to compare more than two options at a time, and then to be 
able to justify the judgement, than to try to guess the relative importance of all the 
criteria, and then justify this decision. This method is capable of structuring a 
complex problem into a logical hierarchy, and has a credible track record of clients 
that have adopted this model as an evaluation tool. It is able to group decisions and 
make good, transparent and defendable decisions in a systematic and scientific way. 
 
 
  Page 115 of 200 
 
Application areas within the tool include vendor selection, risk analysis, strategic 
decision making, resource allocation and project portfolio management. 
 
The AHP method addresses the need to assess benefits, costs and the risks to the 
proposed solutions. AHP breaks the problem down and then aggregates the 
solutions of all the sub problems into a conclusion. It facilitates decision making by 
organising perceptions, feelings, judgements and memories into a framework that 
exhibits the forces that influence a decision. A further benefit is that there is a 
measure of how consistently pair wise judgments were made. This is called the 
inconsistency ratio. If someone says B is two times more important than A, and also 
say C is two times more important than B, then it is mathematically determined that 
the ratio between A and C has to be four. If the person were to compare A and C and 
give a judgement that deviates from this ratio, then they are inconsistent in their 
judgement. The inconsistency ratio can help us find an error in judgement, or identify 
if a person is trying to sway the decision by voting in a specific way. 
 
A disadvantage of the traditional decision making methods is that they require 
specialised expertise to design the appropriate structure to embed the decision 
making process.  
 
The AHP model is widely used with more than 15,000 users from around the world. 
International users include IBM, Ford, General Electric, America Online, US National 
Association of Home builders, and the United Nations. South African users include 
most universities, SA Defence Force, De Beers, SASOL, SA Reserve Bank, Liberty 
Life, ABSA, Standard Bank and the CSIR.  
 
The evaluation of options for recommendation in this report was modelled on Expert 
Choice, the software implementation of the AHP. This product is widely used 
internationally to facilitate group decisions and make good, transparent and 
defendable decisions in a systematic and scientific way.  
 
 
 
 
 
 
 
 
 
  Page 116 of 200 
 
7.2 - The Decision Model 
 
Alternatives were rated against the following model: 
Functionality 
How well the product or option in its current form ? i.e. without any customisation, 
development or enhancement ? satisfies the generic requirements. The functional 
assessment was conducted at a high level using the categories of: 
? Accounting 
? Property portfolio management 
? Property rental management 
? Managing property sales 
? Reporting 
Vendor 
This category looked at vendor characteristics, broken down into the following 
elements: 
? Local representation 
? Track record (in the Social Housing and property management arena, as well 
as beyond) 
? Business expertise ? especially relevant where that level of expertise may not 
exist or cannot be counted on at many of the SHIs. This is where the vendor 
can truly add value in terms of best practice, accounting and general business 
understanding. 
? Technology expertise ? since the evaluation is ultimately centred around 
software, this is also critical. 
Costs 
In an effort to represent the total cost of ownership, rather than just the simplistic 
initial license costs, this category looked at: 
? Capital costs ? initial licensing costs 
? Implementation costs ? in any large-scale system implementation (most 
notably research has centred around ERP implementation efforts) these can 
be between 2 and 10 times the initial capital cost. 
? Maintenance costs ? specifically contractual license fees 
 
 
  Page 117 of 200 
 
? Secondary costs ? looking at specific hardware (workstations & servers), 
software (databases, operating system, web enablement etc.) and 
infrastructure costs ? especially where any of these are unusually high since 
all systems have some secondary costs 
? Growth costs ? costs to scale the application to serve more users and costs 
to enhance functionality 
Skills 
This factor looked at the requirement of any specific technical skills to support the 
system in the hub model, as well as any specific user skills ? a function of the 
friendliness of the system and its interface design. 
 
Architecture 
The technical characteristics of the system including: 
? Whether the web was a part of the original design as opposed to an 
expensive afterthought ? this was also concerned with performance over 
South African network infrastructure (a system that performs well in the 
USA for example, where broadband is taken for granted, may simply not 
work here) 
? Openness ? and dependence on proprietary technologies 
? Maturity ? combining a number of software evaluation factors as 
discussed earlier in this report 
Agility ? an estimation of the ease of changing the system to track 
changing business requirements 
Political Considerations 
An assessment of some of the environmental factors that need to be considered in 
any decision ? namely: 
? Open source ? as discussed earlier 
? Empowerment 
? Skills development as a national imperative 
Risk 
An assessment of risk factors including: 
 
 
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? Technology risk ? especially relevant where older technologies are still 
being used (where support from the technology vendors has disappeared 
or at risk, and where skills  
? Financial risk ? especially exposure to foreign currency fluctuations in 
terms of ongoing costs 
? Operational risk 
? Strategic risk ? the risk of betting on the wrong solution / or solving the 
wrong problem 
? Vendor risk 
This model is represented in the hierarchy diagram below: 
 
Figure 15 ? Evaluation Model Hierarchy 
 
 
 
  Page 119 of 200 
 
Each of these criteria and sub criteria were rated with pair wise comparisons and 
Expert Choice derived the following weights: (L and G refer to Local and Global 
weights. The local weight is the normalized weight within a branch of the hierarchy. 
The global weight is how much the local weight contributes towards the goal. So all 
the global weights will add up to 1.) 
 
Figure 16 ? Evaluation Model Local and Global Weights 
 
 
 
  Page 120 of 200 
 
This is a graphic representation of the derived main criteria weights: 
 
 
Figure 17 ? Evaluation Model Derived Weights 
 
For each of the lowest nodes in the tree (in this case the sub criteria), a rating scale 
was developed. The wording and weight of these scales are as follows: 
 
Figure 18 ? Sample of Rating Scale 
 
The full set of rating scales has been included on page 186.  Each vendor is then 
rated against the sub criteria. The following is a record of the ratings: 
 
 
 
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  Page 122 of 200 
 
 
 
 
 
 
  Page 123 of 200 
 
 
Figure 19 ? Data Grids 
 
 
7.3 - Results 
 
The sub-objective values are then weighted according to the weights of the model. 
This then adds up to give each vendor a score ? the totals column. The results are as 
follows: 
 
Figure 20 ? Synthesised Results 
 
The top candidate is JD Edwards, followed by IFCA and Wocus4all. 
 
 
 
  Page 124 of 200 
 
 
7.4 - Sensitivity Analysis 
 
To perform sensitivity analysis, we extracted the top six candidates and normalized 
their respective scores. 
 
 
Figure 21 ? Synthesised Results (Top 6) 
 
The sensitivity graph is shown below: 
 
Figure 22 ? Overall Sensitivity Graph 
 
The eight main criteria are displayed at the bottom of the graph, with the bar height 
corresponding to the derived weight of that criterion. Scale for the criterion weight is 
on the left vertical axis.  The alternatives are shown on the right vertical axis, with the 
order of preference top to bottom.  
 
By adjusting the main criteria weight, one can do a what-if analysis to see how a 
variation in the main criteria weight would have affected the outcome.  In this case JD 
 
 
  Page 125 of 200 
 
Edwards would still be the preferred vendor even if any one criterion were to be 
changed considerably.  This excludes the Political consideration criterion. This is the 
only criterion where only one vendor ? Compiere scored high. 
 
The three criteria that received most importance, i.e. Functionality, Architecture and 
Agility will now similarly be examined.  
 
Functionality: 
 
Figure 23 ? Sensitivity Graph - Functionality 
 
The preferred vendor, considering functionality in isolation of all other factors, is 
IFCA. The reason is that it scored very high for the Managing Property Criterion. 
This was rated to be the least important sub criterion at .057. This value has to be 
increased to about .50 to make IFCA the overall preferred vendor. This is clearly not 
a reasonable increase. 
 
 
 
  Page 126 of 200 
 
Architecture: 
 
JD Edwards scores best on all the sub criteria, and the decision is therefore 
insensitive to variation of the sub criteria weights. 
 
Figure 24 ? Sensitivity Graph - Architecture 
 
 
 
  Page 127 of 200 
 
Agility 
 
In this graph, JD Edwards and IFCA both have the top score on all the sub criteria. 
The graph only displays the blue line, but the red for IFCA is underneath. Also it just 
displays the IFCA label higher than JD Edwards, but they have exactly the same 
score.  The effect of varying sub criteria will also not have an effect on the overall 
preferred vendor. 
 
 
Figure 25 ? Sensitivity Graph - Agility 
 
 
8.   - Results 
 
8.1 - Evaluation of Outcomes 
 
The value of the above approach is that it encourages decision makers to think more 
carefully about what is important in a particular decision, and how the alternatives 
perform with respect to objectives (Annotated Bibliography of COTS Software 
Evaluation). 
 
 
 
  Page 128 of 200 
 
Based on the evaluation outcomes, it is evident that JD Edwards ranks 1st above all 
the other vendor products, meeting the overall ICT strategy requirements for the 
housing sector in South Africa. This vendor is the preferred solution under each of 
the eight ranking criteria. 
 
Compiere is a web based open-source ERP application which offers many of the 
same advantages of JD Edwards, with some additional advantages in terms of its 
licensing and development models. It is supported in South Africa and is the only 
system reviewed which would tie in with the South African Government initiative to 
promote open source, and therefore raises some interesting possibilities. It must be 
highlighted though that although it has a solid accounting base and many of the 
generic features found in the other systems, it has no specific property management 
functionality and therefore must be evaluated as a possible higher risk, consistent 
with a major software development effort. 
Conducting a focused feasibility study into Compiere as a wild-card option ? before 
committing to JD Edwards - would be most beneficial, since it would open up some 
interesting opportunities as described earlier. This of course needs to be decided in 
light of budget constraints, service delivery pressures and capacity to drive such a 
study. 
 
 
8.2 - Test of the Hypotheses 
 
8.2.1 - The Main Hypothesis 
 
JD Edwards came through consistently as the leading system to meet the 
requirements of the strategic model for the housing sector in South Africa. The JD 
Edwards system complies with all of the requirements of the Social Housing sector in 
South Africa. It is web-based, easy to use, is an open system and is scalable enough 
to handle any number of housing units as may be required. Importantly, the system is 
capable of including many entities in the form of SHIs and can accommodate the 
different requirements of each of these. Based on the conclusions of the research, 
we can therefore deny the main hypothesis posited. 
 
 
 
 
 
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8.2.2 - The Sub Hypothesis 
 
Results from the research that was undertaken, reflect a clear dichotomy between 
SHIs. The larger of the SHIs have well established IT infrastructure with current 
hardware and property management software that either has integrated accounting 
capabilities or is supported by a stand alone, off the shelf accounting package.  
On the other hand, the smaller SHIs seem to be running budget hardware and 
software. Networking is rudimentary and connections to the internet are either 
through ADSL or dialup. Very few are running property management software and 
typically keep records using MS Excel, if computerised at all. Skill levels in 
applications range from very low to adequate.  
 
Based on the conclusions from the research, we can therefore confirm the sub 
hypothesis posited. 
 
 
 
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9. - Recommendations 
 
9.1 - Implementation 
 
The complexity of implementing an ERP package such as JD Edwards must not be 
underestimated. The political and contextual issues are as much of a risk in the case 
of an ERP implementation. In fact they are often exacerbated as the perceived 
inflexibility of such a system may be seen as a political tool to enforce compliance on 
the part of the users, who are in this case other organisations. In addition the 
implementation costs of an ERP are typically anywhere from two to ten times the cost 
of the actual software itself, and such projects often overrun on time.  The package 
?exists? but cannot function in the organisation without configuration, or even 
customisation. 
 
It is recommended that the minimum requirements are selected for the initial 
implementation. These are the financial and property management modules. This will 
both reduce the initial cost and the complexity of the implementation. A number of 
initial steps are recommended before commencing with the recommended 
implementation of the system. These are: 
 
? Identify those SHIs that are willing to participate  
? Identify the SHIs that are suitable candidates for participation ? including their 
current record of managing properties. SHIs that do not do any business 
should of course be excluded. 
? Identify the level of computer literacy of the staff in the selected SHIs, and the 
extent to which basic ICT skills training is required. 
? Identify where and by whom the system will be hosted ? this could be at the 
National Department of Housing, the SPSH or an outsourced partner able to 
provide the required level of support and service. 
? Selection of a platform (Linux is recommended for the server) 
? Selection of a database. 
 
 
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10. - Conclusion 
 
 
Housing in South Africa for many remains a critical issue and a huge backlog of 
affordable housing remains a priority of the Government?s National Housing Strategy 
and the more recent Breaking New Ground document. The solution has attracted 
funding and support from the European Union (EU) as well as the South African 
Government. The latter have committed large-scale financing to address the housing 
crisis more speedily than has been the case over the last ten years. 
 
The Social Housing sector is made up of a number of organisations, with the SHF 
and SPSH playing key roles in the provision of housing. What is required now is a 
delivery mechanism that will be able to accelerate the process of delivering housing 
where needed. The grass-roots of the housing initiatives in place in South Africa are 
the Social Housing Institutions (SHIs). These are essentially the delivery mechanism 
for the provision of Social Housing.  
 
To respond to this situation required a strategy that will assist the sector in its core 
business of providing housing. The strategy that has been developed recommends a 
central hub to allow for both large and small SHIs to use a system made available 
across the sector while allowing SHIs the choice of using their own system. In 
support of the strategy, the Internet was examined as an effective and efficient 
delivery mechanism for this strategy. Web based systems are both open and simpler 
to administer - especially for a widely distributed system.  
 
A wide range of options were examined to identify a suitable system. Using a 
sophisticated decision tool, the JD Edwards system was identified as the most 
suitable option available in South Africa. While a few of the other system evaluated 
displayed as much functionality, the JD Edwards system scored in terms of its open 
architecture, platform independence, the web-based nature of the system, the ability 
to handle multiple independent entities, flexibility, rule based and the pricing model. 
The product is priced at an enterprise level allowing for major growth without 
incurring additional licensing fees.  
 
 
  Page 132 of 200 
 
Open-sourced software options were also examined ? in particular Compiere ? a fully 
fledged ERP system capable of providing a solid basis for the ICT requirements of 
the sector, especially as these requirements are not yet stable. 
 
Compiere is fully rules based, providing the mechanism for adding property 
management functionality. The system offers great flexibility, platform and vendor 
independence, and supports business agility as discussed earlier. In terms of the 
strategic objectives, this could prove to be the most viable option for the sector 
allowing for a truly incremental approach, a lower overall cost-of-ownership and the 
development of skills to support the sector.  
 
 
  Page 133 of 200 
 
 
Appendix A - National Housing Strategy 
 
The National Housing Strategy originated from the 1994 Department of Housing 
White Paper - A New Housing Policy and Strategy for South Africa. This document 
outlined the government?s objectives, the current situation and a proposed housing 
strategy for the country (p23-24).  
 
Government's overall approach to the housing challenge is aimed at mobilising and 
harnessing the combined resources, efforts and initiative of communities, the private, 
commercial sector and the State. It seeks to do this through pursuing seven key 
strategies: 
 
? stabilizing the housing environment in order to ensure maximal benefit of 
State housing expenditure and mobilising private sector investment; 
? facilitating the establishment or directly establishing a range of institutional, 
technical and logistical housing support mechanisms to enable communities 
to, on a continuous basis, improve their housing circumstances; 
? mobilising private savings (whether by individuals or collectively) and housing 
credit at scale, on a sustainable basis and simultaneously ensuring adequate 
protection for consumers; 
? providing subsidy assistance to disadvantaged individuals to assist them to 
gain access to housing; 
? rationalising institutional capacities in the housing sector within a sustainable 
long term institutional framework; 
? facilitating the speedy release and servicing of land; 
? coordinating and integrating public sector investment and intervention on a 
multifunctional basis. 
 
The National Housing Strategy has been revised and is detailed in a new document ? 
?Breaking New Ground? released in September 2004. While rooted on the 1994 
White Paper new priorities have become important: 
 
? Integration and the building of secure communities  
? A three tier categorization of housing beneficiaries  
? Redefining the role of government in the housing market  
 
The document aims to facilitate increased capacity of the Social Housing Institutions 
?through the introduction of the new establishment grant which will provide 
operational support and through the establishment of a focused support institution in 
the form of the Social Housing Accreditation Institution? (Breaking New Ground, 
National Department of Housing, 2004) 
 
The information and communication requirement has ?been broadened to focus on 
the broader residential market?. 
 
Intervention to be undertaken to enhance data collection, management information, 
monitoring  
 
 
  Page 134 of 200 
 
 
?Performance Measurement - A comprehensive housing sector monitoring, 
information and reporting system based on key performance indicators must be 
developed, This system must be capable of regular, structured reporting on the 
performance (quantitative as well as qualitative) of the various housing programmes 
and housing institutions. This information should be used to support policy 
development and enhancements and should form the basis for developing reports to 
institutions established in terms of Chapter 9 of the Constitution (e.g. Human Rights 
Commission, Office for Women etc.), Parliament and international agencies such as 
UN Habitat.? (ibid p 27). 
 
The structure of the sector is set to change: 
There are three national housing agencies which are of specific relevance. They are:- 
 
1. The Social Housing Accreditation Corporation has been conceptualized under the 
Social Housing Policy and the Social Housing Bill. This corporation will accredit 
Social Housing Institutions to qualify for access to state grant support in the form of 
project capital grants through the Institutional Housing Subsidy Programme. 
However, most SHIs applying for accreditation and registration would not be 
successful in obtaining such accreditation unless they were provided with support in 
establishing or improving their operations. This support would be administered by the 
Social Housing Accreditation Corporation in the form of the pre-establishment grant, 
the establishment cost grant, and the capacity building grant as outlined in the Social 
Housing Policy. The combination of regulation and grant making functions would 
place the Social Housing Accreditation Corporation in a position to play a proactive, 
value adding roll rather than merely a reactive regulatory or policing roll. This is the 
model used by the British equivalent (Social Housing Corporation), and which has 
worked successfully for many years, 
 
2. The Social Housing Foundation (SHF) has a mandate from national government to 
build the capacity of Social Housing Institutions (SHIs), The SHF is geared chiefly as 
a training and capacity building organization However, consequent to the direct 
intervention of the Department in the administration of (he Social Housing Support 
Programme by the SHF, this organization has undergone some restructuring in an 
effort to define B clear roll for the future. The SHF has also lost 20% of its staff 
through resignations subsequent to the Intervention of the Department. In modelling 
the Social Housing Accreditation Corporation, the Department will consider assuming 
the SHF within the Social Housing Accreditation Corporation as the training and 
capacity building department of the corporation. Although this model is only a 
concept at this stage, and must be researched in detail as part of implementing this 
business plan, the opportunity of establishing the Corporation as "successor in title" 
to the SHF, but with a regulatory/accreditation function, a grant making function, and 
a capacity building function (rather than only a capacity support function), is attractive 
to the Department, and will therefore be pursued further under this business plan. 
 
3. The National Housing Finance Corporation (NHFC} was established by national 
government in 1995 in order to leverage debt financing from the private sector into 
the low to moderate housing market. Within the NHFC, the Alternative Tenure 
Division is responsible for processing applications for loans for Institutional Housing. 
The Institutional Housing Programme is reliant to a significant extent on the 
performance of the NHFC in both directly financing, and co-financing or leveraging 
loans for the construction of Institutional Housing. 
 
 
 
 
  Page 135 of 200 
 
 
Housing Institutions (private sector) 
 
Housing Institutions are the implementing agents for the development and 
management of Institutional Housing. Substantial reliance is placed upon these 
institutions (primarily private sector and local authority initiated Social Housing 
Institutions). To date, the expectations placed upon these institutions to deliver 
institutional housing has not been matched be adequate investment into ensuring 
that these Institutions are capacitated to the required level in order to carry the social 
and developmental mandate placed with them. The National Housing Strategy 
proposed here proposes investment into ensuring just such capacitation. 
 
CAPACITY REQUIREMENTS: 
 
Capacity shortfalls for the Institutional Housing Programme are strongly evident 
within the current reality. Government's programme must inflate the current capacity 
levels substantially so that the Institutional Housing Programme is successful.  
 
The most critical area requiring greater capacity is the area of housing management, 
This area of focus Is substantially more critical that the area of housing production. 
Although capacity levels of the housing construction sector have declined between 
1997/98 to 2004/05 and this is a matter of some concern, the capacity levels of local 
authorities and Social Housing Institutions (SHIs) or private housing management 
companies to competently and effectively maintain and manage Institutional Housing 
are inadequate by a sizeable margin. 
 
The Department will have to establish the proposed dedicated Social Housing Unit 
and provinces with high rental need should mirror such structures in their 
organisations. These structures will require intensive training  
 
The capacity of the Department's national agencies, such as the Soda Housing 
Foundation, will need to be built and improved through initiatives of the Department 
such as the Support Programme for Social Housing. Also, entirely new capacity on 
top of that easting within the SHF will be required in order to operationalise the Social 
Housing Accreditation Corporation. 
 
TIMEFRAMES: 
 
There are six (6) sub-programmes within the Institutional Housing Programme. 
Aspects of this programme are already under implementation through existing policy 
which had been in existence prior to the development of this national housing 
strategy (notably Social Housing, Transitional Housing, and Cooperative Housing), 
 
The Social Housing Bill will be promulgated in early 2005; 
 
Detailed implementation guidelines will be developed during November 2004 to 
March 2005 with s view to implementation in April 2005. 
 
The accreditation body will be established and operationalised during April 2005, 
Accreditation will commence in June 2005; 
 
Housing institutions will continue delivery of rental housing, and will experience 
enhanced performance in this area by late 2005, beginning of 2006. 
 
 
 
  Page 136 of 200 
 
 
MONITORING AND EVALUATION: 
 
Monitoring will be undertaken by the Accreditation regulator and the Social Housing 
Directorate through the accreditation process and evaluation initiatives. The Capacity 
building dimension will be monitored by the Social Housing Foundations and the 
Accreditation Corporation, 
 
KPI1: Promulgation of Social Housing Bill in March 2005. 
 
KP12. Approval of Social Housing Policy Review by Minmec in November 2004, 
 
KPI3: Approval of Social Housing Policy Guidelines by Minmec in March 2005. 
 
Table 5 ? Urban and Rural Visions 
Urban Vision Rural Vision 
Urban settlements that by 2020 will be:  
? Spatially and socio-economically 
integrated, non-segregated, free of racial 
and gender discrimination, enabling 
people to make residential and 
employment choices to pursue their 
ideals.  
? Centres of economic, environmental and 
social opportunity where people can live 
and work in safety and peace.  
? Centres of vibrant urban governance 
managed by democratic, efficient, 
sustainable and accountable metropolitan 
and local governments in close co-
 operation with civil society and geared 
towards innovative community-led 
development.  
? Environmentally sustainable, marked by a 
balance between quality built 
environment and open space; and 
between consumption needs and 
renewable and non-renewable resources. 
Sustainable development meets the 
needs of the present while not 
compromising the needs of future 
generations.  
? Planned for in a highly participative 
fashion that promotes the integration and 
sustainability of urban environments.  
? Marked by housing, infrastructure and 
effective services for households and 
business as the basis for an equitable 
standard of living.  
? Integrated industrial, commercial, 
residential, information and educational 
centres, which provide easy access to a 
range of urban resources.  
Rural settlements that by 2020 will ensure:  
? Much greater access for rural people to 
government support and information and 
to commercial services, with a more 
logical spatial network of towns, services, 
roads and transport systems serving both 
market traders and customers;  
? Close availability of water, sanitation and 
fuel sources, giving everyone more time 
for economic productivity and better 
health;  
? Dignity, safety and security of access for 
all, especially women, to useful 
employment, housing, and land, with 
people able to exercise control over their 
society, community and personal lives, 
and to invest in the future.  
 
 
  Page 137 of 200 
 
? Financed by government subsidies and by 
mobilising additional resources through 
partnership, more forceful tapping of 
capital markets, and via off-budget 
methods.  
 
(Housing Code) 
 
The Department of Housing intends to meet the following qualitative strategic goals 
in line with the mission: 
 
? To improve overall service efficiency and become a transformed, 
performance orientated Department;  
? To have a vision and strategic objectives that are at all times relevant to the 
political imperatives and to the housing environment;  
? To proactively guide housing policy development/review by precise analysis 
of the housing environment; and  
? To be the leading authority on housing and human settlement information in 
the country and to provide speedy, user-friendly access to information at all 
times.  
 
 
Table 6 ? Summary of Policy Initiatives 
Arising out of the Seven White Paper Strategies (Housing Code) 
 
STRATEGY POLICY INITIATIVE   
Record of Understanding 
? Banking Code of Conduct  
? Mortgage Indemnity 
Scheme  
? National Home Builders 
Registration Council  
? Servcon Housing 
Solutions  
? Masakhane Campaign  
?New Deal? Thubelisha Homes 
1. Stabilising the 
housing environment  
Housing Consumers Protection Measures Act 
2. Mobilising credit National Housing Finance Corporation ? Rural Housing Loan Fund  
? Niche Market Lenders 
Programme  
? Housing Equity Fund  
? Housing Institutions 
Development Fund  
? Gateway Home Loans  
 
 
  Page 138 of 200 
 
Nurcha 
? Guarantee Programmes  
? Joint Venture 
Development Fund  
Social Housing Foundation   
Housing Subsidy Programme 
? Project-linked  
? Individual  
? Consolidation  
? Institutional  
? Relocation  
? Rural  
Discount Benefit Scheme 
Hostels upgrading programme 
3. Providing subsidy 
assistance  
Bulk & Connector Infrastructure Grant (now part of CMIP)[1] 
National Housing Policy: 
supporting the People's Housing 
Process 
Institutional Arrangements:  
i. Support organisations  
ii. Funding  
iii. Decision-making  
  Project Application Process: 
Community workshops 
4. Supporting the 
people?s housing 
process  
  Peoples Housing Partnership Trust  
UTshani Fund  
5. Rationalising 
institutional 
capacities  
Housing Act, 1997   
6. Facilitating the Development Facilitation Act, 1995[2] 
Land Development Objectives 
 
 
  Page 139 of 200 
 
Legislation and Policy for the 
release of land[3] ? Less Formal Townships Establishment Act, 1991  
? Provision of Certain Land 
for Settlement Act, 1993  
? Settlement and Land 
Acquisition Grant  
? Extension of Tenure 
Security Act, 1997  
? Communal Property 
Association Act, 1996  
? Interim Protection of 
Land Rights Act, 1996  
? Land Reform (Labour 
Tenants) Act, 1996  
? Upgrading of Land 
Tenure Rights Act, 1991 
(amended in 1996)  
? Protection of Illegal 
Evictions from, and 
Unlawful Occupation of 
Land Act, 1998  
Housing and Infrastructure 
Services ? Norms & Standards  
? Environmental 
Standards[4]  
? Physical or Engineering 
Standards  
speedy release and 
servicing of land  
Technology choice and infrastructure on site 
Urban Development Framework 
? Integrating the City  
? Improving Housing and 
Infrastructure  
? Building Habitable and 
Safe Communities  
? Promoting Urban 
Economic Development  
Rural Development Framework[5] 
7. Co-ordinating state 
investment in 
development  
Local Government Transition 
Act[6] 
Integrated Development Plans 
 
 
  Page 140 of 200 
 
Co-ordinated Government 
? Housing Minmec  
? Heads of Housing 
Committee  
? Budget Management 
Committee  
? Integrated & Co-
 ordinated Information 
systems  
 
 
The Department of Housing?s qualitative strategic objectives rely on the availability of 
an accurate and up-to-date source of information for effective implementation. This 
implies that: 
 
1. The organizations involved in the provision of housing are able to keep 
accurate records of actual housing provided and the nature of that housing 
and  
2. That the information accumulated by these organizations is available in a 
meaningful way to the department of housing.  
 
The department is aiming to achieve improved overall service efficiency ? a goal that 
requires timeous access to the right information; to guide policy ?by precise analysis 
of the housing environment? and to ?be the leading authority on housing and human 
settlement information in the country and to provide speedy, user-friendly access to 
information at all times? both imply access to complete information of the housing 
sector. 
 
 
  Page 141 of 200 
 
 
Appendix B - Sample Group of Housing Institutions 
 
No. NAME OF SHI CONTACT PERSON 
PHYSICAL 
ADDRESS 
POSTAL 
ADDRESS TEL.NO. 
FAX. 
NO. 
1 
Alexandra Social 
Housing Company 
(ASHCO) 
Maneo 
Thelejane 
209 Smit street, 
UCS building, 
Braamfontein, 
2107 
 011-276 1459 
011-
 3761784 
2 
Cape Town 
Community Housing 
Company (CTCHC) 
Mervyn 
Bregman 
Block E, 
Belveder, 
Bellarosa street, 
Tyger valley, 
7530 
PO Box 5522, 
Tyger valley, 
7530 
021-914 
3990 
021-914 
3988 
3 First Metro Housing Company (FMHC) 
Patrick 
Lemmens 
Suite 201, 2nd 
floor, Salisbury 
Centre, 332-334 
Smith Street, 
Durban, 4001 
P.O. Box 6049 
Durban 
4001 
(031) 307 
7676 
(031) 
307 7656 
4 
Greater Middleburg 
Housing 
Association 
(GMHA) 
Thomas 
Ntuli 
148 Jan van 
Riebeeck str, 
Middelburg, 1050 
PO Box 1197, 
Middelburg, 
1050 
(013) 282 
9595 
(013) 
282 9599 
5 
Johannesburg 
Housing Company 
(JHC) 
Taffy Adler 
53 Main Str.JHB 
& Maclaren Str. 
Marshalltown, 
Johannesburg, 
2001 
P. O. Box 
61738 
Marshaltown 
2107 
(011) 241 
6900 
(011) 
836 6887 
6 Johannesburg Trust for the Homeless Chris Lund   
011 688 
7810 
011 688 
7801 
7 Mbombela Housing Association Ben Maseko 
3rd floor, Midcity 
Building, Cnr 
Brown & Paul 
Kruger street, 
Nelspruit  
P.O. Box 4612, 
Nelspruit, 1200 
013-
 7554897 
013-
 7554927 
8 Msunduzi Housing Association (MHA) 
Mayash 
Chetty 
303 Loop street, 
Pietermaritzburg 
P.O. Box 2318 
Pietermaritzburg 
3200 
033-345 
2184 
033-345 
2190 
9 Reahola Housing Association Simon Tlale 
38 Heeren street, 
Welkom, 9460 
PO Box 3932, 
Welkom, 9460 
057-352 
7143/4 
057-352 
7616 
10 Social Housing Company (SOHCO) 
Heather 
Maxwell Durban    
11 Yeast City Housing (YCH)  
Stewart 
Talbot / 
Stephen De 
Beer 
288 Burgerspark 
lane, Pretoria 
central, 0001 
P.O.Box 11047, 
Tramshed, 
Pretoria, 0126 
(012) 320 
7962 
(012) 
3207962 
 
 
 
  Page 142 of 200 
 
 
Appendix C - Functional Requirements of a Generic 
Specification 
 
C.1 - Manage Space and Leases 
 
? Tenant liaison and contact reports 
? Deal with vacating tenants and deposit refunds, termination costs 
? Occupancy rates per building or group of buildings 
? Vacancy schedules and ratios 
? Lease expiry profiles 
? Tenancy schedules 
? Arrears ratios 
? Diary reports 
? Lease checklists 
? Operating cost ratio reports 
? Tenant deposit reports 
? Tenant retention 
? Tenant renewal ratios 
? Insurance details and policy renewal dates 
 
C.2 - Bill Tenants 
 
? Automated invoicing of rentals and recoverable operating costs 
? Automated escalation in rental based on lease 
? Must provide for varying rent increase options 
? Bank deposit slips 
? Debit order collections 
? Customised bank deposit slips  
 
 
  Page 143 of 200 
 
 
C.3 - Collection of Rental 
 
? The amount of rent to be derived from the lease. Finalisation of the lease 
should activate the rent collections 
? Handling of cash and collection of rentals 
? Reconciliation and remittance advices on statements 
? Import tenant receipts from electronic bank statements 
On line, Bank download, ACB or EFT 
 
C.4 - Debtors Control (Accounts Receivable) 
 
? Statements to tenants 
? Record of accounts in dispute, credit ratings, attorney cases, black listings 
etc. 
? Late payment interest calculations and/or penalties 
? Age analysis 
? Tenant transaction history 
? Advance rent control 
? Arrears letters, letters of demand, arrears reports 
 
C.5 - Creditors Control (Accounts Payable) 
 
? Payment to suppliers and contractors 
? EFT or cheque run processing 
? Creditors reconciliation 
? Payment registers 
? Payment remittances 
? Payment to non registered suppliers 
? Regional Services Council (RSC) returns and payments 
 
 
  Page 144 of 200 
 
? VAT returns and payments 
? Facility to capture ad-hoc charges or adjustments 
? Must provide both accrual and cash based postings 
? Creditors reporting 
 
C.6 - Control Cash Flow 
 
? Manage disbursements 
? Supplier financial summary with age analysis 
? Supplier transaction history 
? Consolidated cash book 
? Per property cash book 
? Real time cash situation per property 
? Cash flow statements 
? Cash flow exposure 
 
C.7 - Maintenance Management 
 
? Management to be preventative and reactive 
? Must provide for recurring and ad-hoc 
? Maintenance management to be centralised 
? Record inspection details 
? Log service requests 
? Prioritise and monitor service requests 
? Issue requests for quotation 
? Status reports 
? Repairs and maintenance commitment 
? Interface to call centre 
 
 
  Page 145 of 200 
 
? Scheduling of routine maintenance tasks 
 
C.8 - Asset Management 
 
The objective of property asset management is to ensure that the property continues 
to provide maximum return on investment. In this process, the market demand, 
condition, performance, costs and projected returns are monitored. 
 
C.9 - Instalment Sale / Loan Management 
 
The sale of property units by instalment is undertaken by a number of SHIs. The 
system must be able to retain information and calculate variables. 
 
? Current rate of interest 
? Instalment amount 
? Amount of original loan (capital) 
? Loan balance 
? Interest rate basis 
? Interest accrual date 
? Payment Arrears 
? The system must be able to calculate the instalment amount based on the 
prevailing rate of interest, and to vary this with interest rate changes 
? Record of price of unit 
? Record of date of sale 
? Expected date of final payment 
? Copy of the agreement 
 
C.10 - Projections and Budgets 
 
? Contractual income and recoveries 
? Reversion of rentals to market on expiry 
 
 
  Page 146 of 200 
 
? Budgeting and forecasting 
Current year 
Revised current budgets 
Next years 
Last years 
5 year income projections 
? Actual versus budgeted 
 
C.11 - Key Performance Indicators 
 
? Profitability 
? Net income 
? Gross profit 
? Returns 
? Net present values 
? Internal rates of return 
? Age analysis 
? Arrears trends 
? Vacancy trends 
? Expiry profiles 
? Discrepancy reports 
? Statistical portfolio analysis 
 
C.12 - Investment Analysis 
 
? Contribution and investment returns 
? Exposure in terms of vacancies 
? Capital growth in asset 
? Discounted cash flow valuation 
 
 
  Page 147 of 200 
 
? Income capitalisation 
 
C.13 - General Accounting 
 
The ICT system requires the ability to retain details and history of accounting 
transactions and to manage all accounting functions. The accounting function should 
either be through a built-in accounting function or through a seamless interface to an 
adequate accounting package. 
 
? Flexible chart of accounts 
? Full double entry accounting procedures 
? Provision for multiple bank accounts with analysis per property or 
consolidated 
? Interface into external off the shelf accounting systems, general ledgers, 
cashbooks, salaries and wages systems 
? Automation of cash book reconciliations 
? Reconciliation of expenses to recoveries 
? Bank service fee calculations 
? VAT accounting dealing with both exempt and non exempt supplies 
? Provision for multi year end reporting 
? Unlimited financial periods with separate period controls for tenant statements 
? Controlled procedures for deleting transaction history 
? Income statement and balance sheet 
? Trial balances 
? Regional Services returns and automated payments 
? Corporate tax and allowances 
? Management of sinking funds 
 
 
 
  Page 148 of 200 
 
 
Figure 26 ? Accounting Systems ? Core Components 
 
C.14 - Asset Registers 
 
The Asset management component of the system must have the ability to maintain a 
complete register of all assets and their location.  
 
Details to be retained against assets include: 
 
? The cost of the asset 
? Depreciation and basis of depreciation calculation 
? Valuation details and frequency of valuations 
? Scheduling of valuations 
? Condition of assets and maintenance requirements 
? Additions 
? Disposals 
? Transfer of assets 
 
 
  Page 149 of 200 
 
? Write-offs 
 
C.15 - Security and Access Control 
 
? Profiles per user, including passwords and preferences 
? Detailed activity logs 
? Critical events to be logged with exception reporting 
? Audit trails for all financial transactions 
? Facility for roll back of database 
? Either single or multi user 
 
C.16 - New Business Opportunities 
 
? Waiting list management of prospective tenants 
Prioritisation according to need and affordability 
Name and contact details of applicant and dependents 
Accommodation required 
Gross monthly family income 
Details of subsidy eligibility 
Urgency of the request 
? Market information of similar properties 
? Opportunities arising from business contacts 
? Tenant surveys 
? Demographic information - age, income groups, range of ages per household, 
occupations etc. 
 
C.17 - Other Tools and Utilities 
 
? Built in financial calculator 
 
 
  Page 150 of 200 
 
? Flexible end user report writer. While a number of reports may be pre-defined, 
some of the reporting requirements are specific to specific organisations and 
time periods. A report definition (or an SQL reporting wizard) is useful to 
define reports required by a specific user. 
? Easy administration and management of the database 
? Optimisation of system backup and restoration 
? Interface to third party products e.g. Microsoft excel 
? On line help 
? Building images and video 
? Printing and spooling  
 
Appendix D - COTS Software Evaluation Forms 
 
Table 7 ? Evaluation Form ? Nicor 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
Nicor     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name Nicor         
  Product Name PolPro, FinPro         
  When Established 1977       
As part of JHI, 
Became 
independent 1997 
  Vendor Country (Base) South Africa         
  South African Representation & Support 
Nicor 
Outsourcing 
Holdings   A   
Wide client base - 
demands on 
support availability 
  Partners           
Customers             
  Social Housing Sector           
  International (#, sample) 0   C     
  South African (#, sample) 
JHC, SEMAG, 
First Metro and 
others   A   
JHC have used the 
system 
extensively. Others 
are using Nicor on 
an outsourced 
basis 
  Reference Sites JHC   B   
On the property 
management side, 
system handles 
most required 
functionality. 
Accounting system 
is comprehensive 
but very difficult to 
use 
  Customer Feedback Positive   B   Good 
  Other Property Related Customers           
  International (#, sample)           
  South African (#, sample) 
50, JHI, 
Investec   A   
50 operational 
sites 
Product             
  Licensing model           
  Nature of Model 
Based on 
number of 
users, modules 
chosen and 
whether 
hosted. In-
 house involves 
an initial capital 
investment and 
an annual 
licencing fee. 
The bureau 
option involves 
a monthly         
 
 
  Page 152 of 200 
 
charge. 
  Estimated Licensing Cost 
From R26000 
per user 
licence. 
(PropPro Lite 
available at 
R5000 per 
user)       
Rental model 
based on number 
of users - works 
out at +/- 2 times 
purchase cost  
  5 users     n/a     
  50 users     n/a     
  500 users     n/a     
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A   
Client Server 
system - can be 
used over web 
using MS Terminal 
Services 
  Web Based No   C     
  Database Management System Progress   A   User choice 
  Operating System Any   A   
Linux, Windows, 
UNIX 
  Client Requirements 
Workstation 
and Office 
software   A   
Client software 
must be installed 
on each w/s, or 
use Client Server 
  Server Requirements     ?   
Must be powerful 
enough to cope 
with bulk remote 
usage 
  Network Requirements 
Any Network 
configuration   A   
Using Diginet for 
remote 
connections. 
Trying out using 
ADSL 
  Reliability     A     
  Availability     A     
  Usability     B     
  Openness     B     
  Scalability     A     
  Manageability     B     
  Security     A     
  Ease of Implementation     B   
Client server 
environment client 
software - must be 
installed at each 
workstation. 
Requires fairly 
substantial training 
  Functionality           
  Core Functionality           
  Integration Yes   B     
  Property Portfolio           
 
 
  Page 153 of 200 
 
  Asset Management Strong   A     
  Project Management No   C   
Project 
management not 
included 
  Property development  No   C     
  
Tender process 
management     ?     
  Property purchase 
Can add new 
property   B     
  Property Improvements No   C     
  Property Maintenance No   C   
Full management 
system for 
managing 
maintenance tasks 
including task 
cards 
  
Preferred 
contractor selection           
  Rentals           
  Rent Collections Yes   A   
Auto links to other 
charges - meter 
reading, etc. 
  Management of Arrears     A     
  Annual rent increase     B   
At building level or 
unit level only 
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales 
Calculates 
interest on 
monthly 
balance only. 
Cannot 
calculate 
instalment 
amount   C   
Functionality has 
been added but is 
barely adequate 
  Accounting 
Full accounting 
functionality 
fully integrated 
with real-estate 
functionality   B   
Although the 
accounting system 
is quite 
comprehensive, it 
is very difficult to 
use 
  Full Accounting functionality     A     
  Automatic Invoicing     A     
  Budgeting     C   
Budgeting more 
difficult than in 
Excel according to 
one client 
  Customisable     B   
Invoices and 
accounting reports 
can be customised 
  Reporting 
Comprehensive 
reporting 
available   A   
Reports may be 
customised, can 
be exported to 
excel, and include 
powerful drill-down 
facilities. A letter-
 writing facility is 
also available 
  Ad-Hoc Reporting 
Able to create 
custom reports   B   
DB not user 
friendly - New Data 
Warehouse 
Module must be 
purchased to 
facilitate as hoc 
reporting 
 
 
  Page 154 of 200 
 
  Related Systems           
  Integrated workflow No   C     
  Document Management No   C     
  Rules Base No   C     
  Business Process Management No   C     
  CRM No   C     
 
 
 
Table 8 ? Evaluation Form ? JD Edwards 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
JD Edwards?     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name Deloittes         
  Product Name JD Edwards         
  When Established           
  Vendor Country (Base) USA         
  South African Representation & Support Partner/Channel   A     
  Partners 
Deloittes, IBM, 
EY         
Customers             
  Social Housing Sector           
  International (#, sample) 0   C     
  South African (#, sample) 1   B   
CTCH - have used 
the system 
  Reference Sites CTCH       
System does what 
they need, good 
support, but 
enhancement 
turnaround time 
longer than 
expected. 
Expensive for an 
independent SHI 
  Customer Feedback Positive   B   Good 
  Other Property Related Customers           
  International (#, sample)           
  South African (#, sample)           
Product             
  Licensing model           
  Nature of Model Revenue based       
A rental model also 
available 
  Estimated Licensing Cost 
R1.3 m 
complete       
Based on 
estimated revenue 
of R500 m p.a. 
Includes 
implementation, 
Real Estate, 
Financial, Project 
Management, 
CRM, Workflow & 
Training 
 
 
  Page 155 of 200 
 
  5 users     n/a   
Rental model 
based on number 
of users 
  50 users     n/a     
  500 users     n/a     
  Estimated Additional Costs 
Server, 
Software & 
Appropriate 
data base.         
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server           
  Web Based     A     
  Database Management System 
DB2, Oracle, 
SQL Server, etc   A   User choice 
  Operating System Any   A   
Linux, Windows, 
UNIX 
  Client Requirements 
Workstation 
with Browser 
and Office 
software   A   
No installation on 
individual W/S 
  Server Requirements     ?   
Must be powerful 
enough to cope 
with bulk remote 
usage 
  Network Requirements 
Internet or any 
network   A   
Can be run directly 
from the Internet or 
through a LAN or 
WAN 
  Reliability           
  Availability     A     
  Usability     A     
  Openness     A     
  Scalability     A     
  Manageability     A     
  Security     A     
  Ease of Implementation     B   
Rules must be set-
 up for each entity, 
but can be 
implemented at a 
central point 
  Functionality           
  Core Functionality           
  Integration           
  Property Portfolio           
  Asset Management Strong   A     
  Project Management Strong   A   
Includes project 
management with 
full financials 
  Property development  Strong   A     
  
Tender process 
management     ?     
  Property purchase Strong   A     
  Property Improvements     A     
  Property Maintenance     A   
Full management 
system for 
managing 
maintenance tasks 
including task 
cards 
  Preferred           
 
 
  Page 156 of 200 
 
contractor selection 
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales     B   
Interest calculation 
function added, but 
treated as a lease 
  Accounting 
Full accounting 
functionality 
fully integrated 
with real-estate 
functionality   A     
  Full Accounting functionality     A     
  Automatic Invoicing     A     
  Budgeting     A     
  Customisable     A     
  Reporting 
Wide range of 
reporting 
available   A     
  Ad-Hoc Reporting 
Able to create 
custom reports   A     
  Related Systems           
  Integrated workflow Option available   A     
  Document Management     A     
  Rules Base     A     
  Business Process Management     A     
  CRM     A     
 
 
 
Table 9 ? Evaluation Form ? MDA 
 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
MDA     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name 
MDA 
Property 
Systems         
  Product Name 
MDA 
Property 
Manager         
  When Established 1990         
  Vendor Country (Base) South Africa         
  South African Representation & Support MDA   A     
 
 
  Page 157 of 200 
 
  Partners MS         
Customers             
  Social Housing Sector           
  International (#, sample)    ?     
  South African (#, sample)     ?     
  Reference Sites           
  Customer Feedback    ?     
  Other Property Related Customers           
  International (#, sample)           
  South African (#, sample) 110   A     
Product             
  Licensing model           
  Nature of Model 
Number of 
users 
renewable 
annually       
Will give 20% 
discount to 
Social Housing 
  Estimated Licensing Cost           
  5 users     104500   
Renewable 
annually at 18% 
of initial non-
 discounted cost 
+ 9% escalation 
  10 users     170500   
Renewable 
annually at 18% 
of initial non-
 discounted cost 
+ 9% escalation 
  20 users     302500   
Renewable 
annually at 18% 
of initial non-
 discounted cost 
+ 9% escalation 
  Estimated Additional Costs 
Windows 
2000 Server, 
Server, & 
MS SQL 
Server   ?   
Can run on 
MSDE (most 
clients using 
this) 
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A     
  Web Based No   B   
Terminal 
Services 
  Database Management System 
MS SQL 
Server   B   
Restricts choice 
of operating 
system & 
platform 
  Operating System Windows   A   Windows  
  Client Requirements 
Workstation 
with Browser 
and Office 
software   A   
Client software 
on each 
workstation 
  Server Requirements     ?   
Must be 
powerful enough 
to cope with bulk 
remote usage 
  Network Requirements Lan, Wan   B     
  Reliability     A     
  Availability     A     
  Usability     A     
  Openness     A     
  Scalability     A     
 
 
  Page 158 of 200 
 
  Manageability     A     
  Security     A     
  Ease of Implementation     B   
Client Server 
environment 
  Functionality           
  Core Functionality           
  Integration           
  Property Portfolio           
  Asset Management Yes   A     
  Project Management No   C     
  Property development  No   C     
  
Tender process 
management     ?     
  Property purchase No   B   
Can be reflected 
through 
Accounting 
  Property Improvements Yes   A   
Good facilities 
management 
  Property Maintenance     A   
Full 
management 
system for 
managing 
maintenance 
tasks including 
task cards 
  
Preferred 
contractor selection 
KPIs on 
suppliers   A     
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales No   C     
  Accounting 
Full 
accounting 
functionality 
fully 
integrated 
with real-
 estate 
functionality   A   
Integrates with 
standard 
interface to 
many other 
accounting 
packages 
  Full Accounting functionality     A     
  Automatic Invoicing     A     
  Budgeting     A     
  Customisable     B     
  Reporting 
Wide range 
of reporting 
available   A   
over 60 
predefined 
reports 
  Ad-Hoc Reporting     B   
Can do SQL 
queries 
  Related Systems           
  Integrated workflow No   C     
  Document Management     B   
Can attach 
documents to 
clients 
  Rules Base     B   Limited 
  Business Process Management No   C     
  CRM No   C     
 
 
  Page 159 of 200 
 
Table 10 ? Evaluation Form ? Novtel 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
Novtel     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name Novtel         
  Product Name Novtel         
  When Established 2005         
  Vendor Country (Base) South Africa         
  South African Representation & Support Novtel   B     
  Partners 
Pastel 
Accounting         
Customers             
  Social Housing Sector           
  International (#, sample)    ?     
  South African (#, sample) 
Purchased 
by Secunda 
& 
Middleburg 
May 2005   ?     
  Reference Sites           
  Customer Feedback    ?     
  Other Property Related Customers           
  International (#, sample)           
  South African (#, sample)           
Product             
  Licensing model           
  Nature of Model 
Flat fee + 
Monthly 
charge   A     
  Estimated Licensing Cost R 10 897   A   Per workstation 
  5 users           
  50           
  500           
  Estimated Additional Costs     ?   
Cost of MS 
Terminal 
Services, MS 
Small Business 
Server 2003 
  5 users R40 000    C     
  50 users          
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server No   C   
Using MS 
Terminal 
Services from 
single instance 
of program 
 
 
  Page 160 of 200 
 
  Web Based No   C   
Using MS 
Terminal 
Services from 
single instance 
of program 
  Database Management System Access   B   
OK for small 
client base 
  Operating System Windows   B     
  Client Requirements     ?     
  Server Requirements PC   ?     
  Network Requirements 
Internet or 
Lan / Wan   A     
  Reliability     C   
Many crashes 
during demo 
  Availability     C     
  Usability     B   
Poor user 
interface 
  Openness     B     
  Scalability     C     
  Manageability     B     
  Security     ?     
  Ease of Implementation     A     
  Functionality           
  Core Functionality           
  Integration     B     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management No   C     
  Property development  No   C     
  
Tender process 
management     ?     
  Property purchase No   C   
Can be reflected 
through 
Accounting 
  Property Improvements No   C   
Good facilities 
management 
  Property Maintenance     B   
Has 
maintenance 
functionality 
  
Preferred 
contractor selection           
  Rentals           
  Rent Collections     B     
  Management of Arrears     B     
  Annual rent increase     B     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales No   C     
  Accounting 
Full 
accounting 
functionality 
fully 
integrated 
with real-
 estate 
functionality   A   
Using Pastel 
Accounting 
  Full Accounting functionality     A     
  Automatic Invoicing     B   Must request 
 
 
  Page 161 of 200 
 
monthly 
  Budgeting No   C     
  Customisable No   B   
Vendor will 
customise 
  Reporting     B     
  Ad-Hoc Reporting     C     
  Related Systems           
  Integrated workflow No   C     
  Document Management     B   
Can store 
documents 
connected to 
entity 
  Rules Base     B     
  Business Process Management No   C     
  CRM No   C     
 
 
 
Table 11 ? Evaluation Form ? ManageIT 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
Manage-IT     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name Logicbuilt         
  Product Name Manage-IT         
  When Established ?         
  Vendor Country (Base) USA         
  South African Representation & Support 
Not at 
Present   B   Willing to partner 
  Partners           
Customers             
  Social Housing Sector           
  International (#, sample)     ?     
  South African (#, sample)     ?     
  Reference Sites     ?     
  Customer Feedback    ?     
  Other Property Related Customers           
  International (#, sample) 
Many in US 
for property 
rentals         
  South African (#, sample)           
Product             
  Licensing model           
  Nature of Model User Base   A   Will phone me 
  Estimated Licensing Cost 
US $1725 
1st user, 
US$ 300 
subsequent 
users   ?     
  15 users           
  50           
 
 
  Page 162 of 200 
 
  500           
  Estimated Additional Costs     ?     
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A   
Using MS Terminal 
Services from single 
instance of program 
  Web Based No   B   
Have ASP system as 
well 
  Database Management System 
Access and 
MySQL for 
enterprise 
version   B     
  Operating System 
Windows 
98, 2000, 
XP, NT or 
Novell.   B     
  Client Requirements     ?     
  Server Requirements 
Pentium 
400 with 
128 MB of 
Ram and 
500 MB free 
disk space. 
Windows 
95, 98, 
2000, ME, 
NT, XP. 
Windows 
Compatible 
laser, inkjet, 
or dot 
matrix 
printer. CD-
 ROM drive.   ?     
  Network Requirements 
Internet or 
Lan / Wan   A   
MS Terminal Services 
or ASP for web 
  Reliability     A     
  Availability     A     
  Usability     A     
  Openness     A     
  Scalability     A     
  Manageability     A     
  Security     A     
  Ease of Implementation     A     
  Functionality           
  Core Functionality           
  Integration     A     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management No   C     
  Property development  No   C     
  
Tender process 
management No   C     
  Property purchase     B  
Can be reflected 
through Accounting 
  Property Improvements     B     
  Property Maintenance     A   
Has maintenance 
functionality 
 
 
  Page 163 of 200 
 
  
Preferred 
contractor selection           
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales     ?     
  Accounting 
Full 
accounting 
functionality 
fully 
integrated 
with real-
 estate 
functionality   A     
  Full Accounting functionality     A     
  Automatic Invoicing     A     
  Budgeting     A     
  Customisable     ?     
  Reporting     A     
  Ad-Hoc Reporting     ?     
  Related Systems           
  Integrated workflow No   C     
  Document Management     B   
Can store documents 
connected to entity 
  Rules Base     ?     
  Business Process Management No   C     
  CRM No   C     
 
 
 
Table 12 ? Evaluation Form ? MIS Housing Solutions 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
MIS Housing Solutions     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name 
MIS Active 
Management 
Systems         
  Product Name 
MIS Housing 
Solutions         
  When Established 1988         
  Vendor Country (Base) 
United 
Kingdom         
  South African Representation & Support 
Not at 
Present   C     
 
 
  Page 164 of 200 
 
  Partners MS         
Customers             
  Social Housing Sector           
  International (#, sample) 
UK - Medina 
Housing 
Ass. , 
Western 
Isles ?   A     
  South African (#, sample)     ?     
  Reference Sites     ?     
  Customer Feedback    ?     
  Other Property Related Customers           
  International (#, sample)           
  South African (#, sample)           
Product             
  Licensing model           
  Nature of Model     ?   
Awaiting 
response from 
UK 
  Estimated Licensing Cost     ?     
  5 users           
  50           
  500           
  Estimated Additional Costs     ?     
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A     
  Web Based No   B   
Customer web 
enablement 
facilities 
  Database Management System 
MS SQL 
Server & 
Great Plains   B     
  Operating System Windows   B     
  Client Requirements     ?     
  Server Requirements PC   ?     
  Network Requirements 
Internet or 
Lan / Wan   A     
  Reliability     A     
  Availability     A     
  Usability     A     
  Openness     A     
  Scalability     A     
  Manageability     A     
  Security     A     
  Ease of Implementation     ?     
  Functionality           
  Core Functionality           
  Integration     A     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management     A     
  Property development      A     
  
Tender process 
management     A     
 
 
  Page 165 of 200 
 
  Property purchase     B   
Can be reflected 
through 
Accounting 
  Property Improvements     A   
Good facilities 
management 
  Property Maintenance     A   
Has 
maintenance 
functionality 
  
Preferred 
contractor selection           
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales     ?     
  Accounting     A   MS Great Plains 
  Full Accounting functionality     A     
  Automatic Invoicing     A     
  Budgeting     A     
  Customisable     ?     
  Reporting     A     
  Ad-Hoc Reporting     A     
  Related Systems           
  Integrated workflow     A     
  Document Management     A   
Can store 
documents 
connected to 
entity 
  Rules Base     A     
  Business Process Management     A     
  CRM     A     
 
 
 
Table 13 ? Evaluation Form ? Sx3 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
Sx3     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name Sx3         
  Product Name Sx3         
  When Established ?         
  Vendor Country (Base) UK         
  South African Representation & Support No   C     
  Partners           
 
 
  Page 166 of 200 
 
Customers             
  Social Housing Sector           
  International (#, sample) 
Large 
Social 
Housing 
base in 
the UK   A     
  South African (#, sample) None   C     
  Reference Sites     ?     
  Customer Feedback    ?     
  Other Property Related Customers           
  International (#, sample)           
  South African (#, sample)           
Product             
  Licensing model           
  Nature of Model ?   ?     
  Estimated Licensing Cost     ?   
Requested more 
information, but no 
response 
  15 users           
  50           
  500           
  Estimated Additional Costs     ?     
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A   
Using MS Terminal 
Services from single 
instance of program 
  Web Based Yes   B   
Have internet enablement 
for queries etc 
  Database Management System     ?     
  Operating System     ?     
  Client Requirements     ?     
  Server Requirements     ?     
  Network Requirements     ?     
  Reliability     ?     
  Availability     ?     
  Usability     A   Claim to be intuitive 
  Openness     A     
  Scalability     A     
  Manageability     A     
  Security     A     
  Ease of Implementation     ?     
  Functionality           
  Core Functionality           
  Integration     A     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management Yes   A     
  Property development  Yes   A     
  Tender process management No   C     
  Property purchase     A     
  Property Improvements     A     
 
 
  Page 167 of 200 
 
  Property Maintenance     A     
  Preferred contractor selection           
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     ?     
  Owner Details     A     
  Instalment Sales     ?     
  Accounting     C     
  Full Accounting functionality     ?     
  Automatic Invoicing     A     
  Budgeting     A     
  Customisable     ?     
  Reporting     A     
  Ad-Hoc Reporting     ?     
  Related Systems           
  Integrated workflow     A     
  Document Management     A     
  Rules Base     ?     
  Business Process Management     ?     
  CRM     ?     
 
 
 
Table 14 ? Evaluation Form ? IFCA 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
IFCA      C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name IFCA MBS SA         
  Product Name PropertyPlus         
  When Established 1987         
  Vendor Country (Base) Malaysia         
  South African Representation & Support 
Subsidiary + 
Partner Co   A     
  Partners MBS         
Customers             
  Social Housing Sector           
  International (#, sample) 
Namibia - 
National Housing 
Enterprise, 
Botswana 
Housing 
Corporation   A     
  South African (#, sample) 
Transnet 
Housing,   A     
 
 
  Page 168 of 200 
 
  Reference Sites 
Transnet 
Housing, Namibia 
- National 
Housing 
Enterprise, 
Botswana 
Housing 
Corporation   A     
  Customer Feedback    A   
Enthusiastic 
feedback from 
NHE, 
reservations 
about support 
from Botswana 
Housing 
Corporation 
  Other Property Related Customers           
  International (#, sample) 
Over 1000 
worldwide users   A   
Some large 
international 
clients 
  South African (#, sample) ?         
Product             
  Licensing model           
  Nature of Model 
Number of users 
and Modules 
taken         
  Estimated Licensing Cost           
  15 users 174 000   ?   
Implementation 
287000 
  100 users 1234000   ?     
  500 users     ?     
  Estimated Additional Costs 
MS SQL Server, 
9750   ?     
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A     
  Web Based No   B   
Web version 
under 
development 12 
to 18 months 
  Database Management System MS SQL Server   B   
Restricts choice 
of operating 
system & 
platform 
  Operating System Windows   A   Windows  
  Client Requirements 
P3 450 MHZ, 
64MB RAM, 500 
MB Disk space, 
Windows   A   
Client software 
on each 
workstation 
  Server Requirements 
P3 450 MHZ, 256 
MB RAM, 4 GB 
SCSI HDD, 
Windows server, 
MS SQL Server   A   
Must be powerful 
enough to cope 
with bulk remote 
usage 
  Network Requirements Lan, Wan   B     
  Reliability     A     
  Availability     A     
  Usability     A     
  Openness     A     
  Scalability     A     
  Manageability     A     
  Security     A     
 
 
  Page 169 of 200 
 
  Ease of Implementation     B   
Client Server 
environment 
  Functionality           
  Core Functionality           
  Integration           
  Property Portfolio           
  Asset Management Strong   A     
  Project Management Strong   A   
Includes project 
management with 
full financials 
  Property development  Strong   A     
  
Tender process 
management     ?     
  Property purchase Strong   A     
  Property Improvements     A     
  Property Maintenance     A   
Full management 
system for 
managing 
maintenance 
tasks including 
task cards 
  
Preferred 
contractor selection     A     
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales     A   
Interest 
calculation 
function added, 
but treated as a 
lease 
  Accounting 
Full accounting 
functionality fully 
integrated with 
real-estate 
functionality   A   
Can run own or 
link to other 
accounting 
software  
  Full Accounting functionality     A     
  Automatic Invoicing     A     
  Budgeting     A     
  Customisable     A     
  Reporting 
Wide range of 
reporting 
available   A     
  Ad-Hoc Reporting 
Able to create 
custom reports   A     
  Related Systems           
  Integrated workflow Option available   A     
  Document Management     A     
  Rules Base     A     
  Business Process Management     A     
  CRM     A     
 
 
 
  Page 170 of 200 
 
Table 15 ? Evaluation Form ? MRI 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
MRI     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name Intuit         
  Product Name MRI         
  When Established 1969         
  Vendor Country (Base) USA         
  South African Representation & Support Yes   A     
  Partners           
Customers             
  Social Housing Sector           
  International (#, sample) No   C     
  South African (#, sample) None   C     
  Reference Sites     ?     
  Customer Feedback    ?   
Good - not for 
Social Housing 
  Other Property Related Customers           
  International (#, sample) 
Large 
number of 
Clients   A     
  South African (#, sample) 
Old Mutual 
PLC, 
Transnet 
Pension 
Fund   A     
Product             
  Licensing model           
  Nature of Model 
Modules + 
Users   A   
Either 
Concurrent or 
named users. 
Software is 
purchased. 
Support 
Agreement at 
17% p.a. of 
licence fees 
only. 
  Estimated Licensing Cost R500k   B   
Lower cost if 
MSDE used 
instead of full 
SQL Server, plus 
Approximately. 
R500k for 
implementation 
based on 20 
concurrent 
users. 
  15 users           
  50           
  500           
  Estimated Additional Costs     ?     
  5 users           
  50 users           
 
 
  Page 171 of 200 
 
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A     
  Web Based Yes   A   
Choice of Client-
 server or web-
 based 
  Database Management System MS SQL   B     
  Operating System Windows   B     
  Client Requirements     ?     
  Server Requirements 
Windows 
NT, 
Windows 
2000, Novell, 
Data base 
Server , 
SCSI drive , 
512 MB 
RAM   A     
  Network Requirements     ?   
MS Terminal 
Services or ASP 
for web 
  Reliability     A     
  Availability     A     
  Usability     A   
Claim to be 
intuitive 
  Openness     A     
  Scalability     A     
  Manageability     A     
  Security     A     
  Ease of Implementation     ?     
  Functionality           
  Core Functionality           
  Integration     A     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management Yes   A     
  Property development  Yes   A     
  
Tender process 
management No   C     
  Property purchase     A     
  Property Improvements     A     
  Property Maintenance     A     
  
Preferred 
contractor selection           
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     ?     
  Tenant information     A     
  Lease     A     
  Unit Swapping     ?     
  Owner Details     A     
  Instalment Sales N   C   
Can be handled 
through 
accounting 
  Accounting     A     
  Full Accounting functionality     A     
  Automatic Invoicing     A     
 
 
  Page 172 of 200 
 
  Budgeting     A     
  Customisable     A     
  Reporting     A     
  Ad-Hoc Reporting     A     
  Related Systems           
  Integrated workflow     A     
  Document Management     A     
  Rules Base     A     
  Business Process Management     A     
  CRM     ?     
 
 
 
Table 16 ? Evaluation Form ? IBIS OpenHousing 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
IBS OPENHousing     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name IBS         
  Product Name OpenHousing         
  When Established ?         
  Vendor Country (Base) UK         
  
South African Representation & 
Support No   B   
Keen to partner through 
Progress SA 
  Partners Progress         
Customers             
  Social Housing Sector           
  International (#, sample) Yes - 70+ UK   C     
  South African (#, sample) None   C     
  Reference Sites     ?     
  Customer Feedback    ?     
  
Other Property Related 
Customers           
              
              
Product             
  Licensing model           
  Nature of Model Modules + Concurrent Users   B     
  Estimated Licensing Cost ?       
See write-up for full 
details 
  40 concurrent users           
  80 concurrent users           
  120 concurrent users           
  Estimated Additional Costs     ?     
  5 users           
  50 users           
  500 users           
 
 
  Page 173 of 200 
 
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A     
  Web Based Yes   A     
  Database Management System Progress   B     
  Operating System Windows /Unix   B     
  Client Requirements     ?     
  Server Requirements Windows /Unix   A     
  Network Requirements     ?     
  Reliability     A     
  Availability     A     
  Usability     A   Claim to be intuitive 
  Openness     ?     
  Scalability     A     
  Manageability     A     
  Security     A     
  Ease of Implementation     ?     
  Functionality           
  Core Functionality           
  Integration     A     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management Yes   A     
  Property development  Yes   A     
  Tender process management     ?     
  Property purchase     A     
  Property Improvements     A     
  Property Maintenance     A     
  Preferred contractor selection     A     
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     A     
  Tenant information     A     
  Lease     A     
  Unit Swapping     ?     
  Owner Details     A     
  Instalment Sales     C   
Have facilities for sales 
and rent-to-buy. No 
instalment sales. 
  Accounting     A     
  Full Accounting functionality     A   
Can use own 
OPENFinancials or other 
  Automatic Invoicing     A     
  Budgeting     A     
  Customisable     A     
  Reporting     A     
  Ad-Hoc Reporting     A   
Additional modules provide 
additional query 
capabilities 
  Related Systems           
  Integrated workflow     A   Optional 
  Document Management     A   Optional 
 
 
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  Rules Base     A     
  Business Process Management     A     
  CRM     A     
 
 
 
Table 17 ? Evaluation Form ? FatFish/Cubit 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
FatFish / Cubit     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name 
Black Giant / 
Cubit         
  Product Name FatFish         
  When Established ?         
  Vendor Country (Base) South Africa         
  South African Representation & Support 
Black Giant / 
Cubit   A     
  Partners Cubit         
Customers             
  Social Housing Sector           
  International (#, sample)    ?     
  South African (#, sample)     ?     
  Reference Sites           
  Customer Feedback    ?     
  Other Property Related Customers           
  International (#, sample)           
  South African (#, sample) 
Rose 
Deubler 
Estate 
Agents   B     
Product             
  Licensing model           
  Nature of Model 
Flat fee per 
installation   A   
Cubit is free to 
NGOs, 
otherwise R950 
p.a. to cover 
changes 
  Estimated Licensing Cost R1400 p.a.   A   
Licence for 
enterprise 
  5 users           
  50           
  500           
  Estimated Additional Costs     ?     
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A   
Can be run as 
Client server 
 
 
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  Web Based Yes   A   
Uses Mozilla 
Firefox Browser 
  Database Management System PostgreSQL   B   
Stable database 
but few front-
 end tools 
  Operating System 
Windows / 
Linux   A     
  Client Requirements 
Mozilla 
Browser   A     
  Server Requirements     ?   
Must be 
powerful enough 
to cope with bulk 
remote usage 
  Network Requirements 
Internet or 
Lan / Wan   A     
  Reliability     ?     
  Availability     ?     
  Usability     A   Easy to use 
  Openness     A     
  Scalability     A   
Claim to be 
unlimited 
  Manageability     A     
  Security     A     
  Ease of Implementation     A     
  Functionality           
  Core Functionality         
Created for 
Estate Agents 
Handling Sales, 
Rentals, Deeds 
office lookup, 
SMS facility 
  Integration     B     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management No   C     
  Property development  No   C     
  
Tender process 
management No   C     
  Property purchase No   C   
Can be reflected 
through 
Accounting 
  Property Improvements No   C     
  Property Maintenance No   C     
  
Preferred 
contractor selection           
  Rentals           
  Rent Collections     B   
Invoices must 
be activated 
individually each 
month 
  Management of Arrears     B   
Yes - but 
manual 
  Annual rent increase     B     
  Manage a waiting list     C     
  Tenant information     A     
  Lease     A     
  Unit Swapping     A     
  Owner Details     A     
  Instalment Sales No   C   
Can calculate 
Interest and 
handle sales - 
not by 
instalment 
 
 
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  Accounting 
Full 
accounting 
functionality 
fully 
integrated 
with real-
 estate 
functionality   A     
  Full Accounting functionality     A     
  Automatic Invoicing     C     
  Budgeting     C     
  Customisable     C     
  Reporting     B     
  Ad-Hoc Reporting     B   
Can do SQL 
queries 
  Related Systems           
  Integrated workflow No   C     
  Document Management     B   
Can store 
documents 
connected to 
entity 
  Rules Base     C     
  Business Process Management No   C     
  CRM No   C     
 
 
 
Table 18 ? Evaluation Form ? Wocus4All 
          Key to ratings 
Property Management System - Evaluation Form   A Good 
       B Adequate 
WOCUS4all     C Poor 
        n/a 
         
    Details   Rating   Comments 
              
Vendor             
  Vendor Name Centric         
  Product Name WOCUS4all         
  When Established ?         
  Vendor Country (Base) Netherlands         
  
South African Representation & 
Support No   C   
Entire system must be 
customised and 
translated, and SA 
representation 
established 
  Partners           
Customers             
  Social Housing Sector           
  International (#, sample) Yes - Netherlands   A     
  South African (#, sample) None   C     
  Reference Sites     ?     
  Customer Feedback    ?     
  
Other Property Related 
Customers           
              
              
 
 
  Page 177 of 200 
 
Product             
  Licensing model           
  Nature of Model Modules + Concurrent Users   ?     
  Estimated Licensing Cost ?         
  40 concurrent users ?         
  80 concurrent users ?         
  120 concurrent users ?         
  Estimated Additional Costs     ?   
Estimated R4.5 million to 
translate in 2001. Since 
then the system has 
grown 
  5 users           
  50 users           
  500 users           
  Technology Architecture           
  Overview/Summary           
  Client/Server Yes   A     
  Web Based Yes   A     
  Database Management System BRE4all RAD/case tool   ?     
  Operating System Windows   B     
  Client Requirements     ?     
  Server Requirements Windows   A     
  Network Requirements     ?     
  Reliability     A   Claim by vendor 
  Availability     A     
  Usability     A   Claim to be intuitive 
  Openness     A     
  Scalability     A     
  Manageability     A     
  Security     A     
  Ease of Implementation     A     
  Functionality           
  Core Functionality           
  Integration     A     
  Property Portfolio           
  Asset Management Yes   A     
  Project Management Yes   A     
  Property development  Yes   A     
  Tender process management     ?     
  Property purchase     A     
  Property Improvements     A     
  Property Maintenance     A     
  Preferred contractor selection     A     
  Rentals           
  Rent Collections     A     
  Management of Arrears     A     
  Annual rent increase     A     
  Manage a waiting list     A     
  Tenant information     A     
  Lease     A     
  Unit Swapping     ?     
  Owner Details     A     
  Instalment Sales     C     
  Accounting     A     
  Full Accounting functionality     A     
  Automatic Invoicing     A     
 
 
  Page 178 of 200 
 
  Budgeting     A     
  Customisable     A     
  Reporting     A     
  Ad-Hoc Reporting     A   
Additional modules 
provide additional query 
capabilities 
  Related Systems           
  Integrated workflow     A   Optional 
  Document Management     A   Optional 
  Rules Base     A     
  Business Process Management     A     
  CRM     A     
 
 
 
  Page 179 of 200 
 
 
Appendix E - SHI Questionnaire 
 
Social Housing Initiatives 
Information & Communication Technology 
Questionnaire 
 
Systems - general 
 Details 
What system(s) do you 
use for property 
management? 
 
What system(s) do you 
use for accounting 
entries? 
 
Do you manage 
residential rentals? 
 
 Yes / 
No 
Details 
Does the system you 
are using facilitate 
accounting entries? 
  
Does the system 
handle property unit 
maintenance 
  
Does the system you 
are using handle the 
rentals? 
  
does the system 
schedule maintenance 
tasks 
  
Do you arrange for any 
sales? 
  
Does you system 
handle sales? 
  
Does the system 
handle instalment 
sales? 
  
Can the system keep 
track of vacancies 
  
 
Background 
Rentals 
 Yes / 
No / 
number 
Details 
How many rental units 
does your organisation 
manage? 
  
Do you have a property 
rental management 
system?  
  
 
 
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Is there any kind of rent 
subsidy system in place? 
  
Is your current system 
able to manage all 
aspects of rental 
business? 
  
 
Sales 
 Yes / 
No / 
number 
Details 
How many sales units 
does your organisation 
manage each year? 
  
Type of sales:   
Normal (housing loan 
through bank) 
  
Sale by instalment 
(deferred transfer) 
  
Other   
Do you have a property 
sales management 
system?  
  
Is your current system 
able to manage all 
aspects of property 
sales? 
  
 
Acquisitions 
 Yes / 
No  
Details 
Does your organisation 
buy properties to provide 
housing? 
  
Is the organisation 
involved in any property 
development schemes? 
  
Is your current system 
able to manage property 
acquisition and 
development? 
  
 
Stock Management 
 Yes / 
No  
Details 
Does the system maintain 
a registry of rental units? 
  
Does this keep the 
address of the property? 
  
Does it have details of 
accommodation? 
  
 
 
  Page 181 of 200 
 
 
Maintenance 
 Yes / 
No  
Details 
Does the system 
maintain records of 
maintenance history of 
each unit? 
  
Does the system have a 
scheduling facility for 
maintenance? 
  
Can you capture the cost 
of maintenance? 
  
Can you capture what 
was done? 
  
Is a detailed inventory of 
work and materials for 
maintenance retained? 
  
Can you capture what 
needs to be done? 
  
Is a record of when 
maintenance is carried 
out kept? 
  
Is there a maintenance 
request facility? 
  
Is there a maintenance 
management facility? 
  
 
Managing Vacancies 
 Yes / 
No  
Details 
Does the system manage 
vacancies? 
  
Does the system provide 
details of leases? 
  
Does the system record:   
Lease expiry date   
Lease renewal   
Rent increases   
Notice period   
Details of when the 
unit will become 
vacant? 
  
 
Collections 
Does the system provide details of: 
 Yes / 
No  
Details 
Rentals due   
Overdue rental payments   
Arrears   
 
 
  Page 182 of 200 
 
Deposits   
Payment dates   
 
Client Details 
Does the system maintain details of: 
 Yes / 
No  
Details 
Client Name   
Size of property required 
(accommodation 
requirements) 
  
Date of occupation   
ID number   
Credit record   
Waiting list   
Priorities in waiting list   
 
Tenants 
Does the system record: Yes/
 No 
Details / other information 
Date of occupation   
Notice period   
Unit occupied   
Client details    
Tenant History   
 
Reporting 
Is the system able to report on: Yes/
 No 
Details / How effective is this? 
Vacancies   
Number of units occupied   
Rental Arrears   
Costs of maintenance   
Rental Income   
Potential rental income   
Commissions (if these apply)   
Maintenance costs   
Other costs   
Condition of the units   
Maintenance summary   
How do you get your 
accounting details into the 
general ledger? 
 
 
 
 
ICT Skills 
Which of the following are you able to use: 
  
Package Yes/No Proficiency  Months System Name 
 
 
  Page 183 of 200 
 
Experience (where 
applicable) 
MS Office:     
Word     
Excel     
Access     
Other     
Open Office     
Email     
Internet     
Accounting Packages 
- specify  
 
    
 
Property Management System? 
- specify 
 
    
 
Other packages or systems 
- specify 
 
    
 
 
 
  
 
 
  Page 184 of 200 
 
 
Appendix F   - System Requirements 
 
The system requirements for the sector were defined below. This was used to check 
completeness of the generic specification. 
 
1. Technical infrastructure (architecture) 
? Systems (storage area network for shared systems, back-up system) 
? Connections (WAN, data lines) 
? Information management 
? In-house or ASP 
? Common and location specific aspects of the BIS 
 
2. Functionalities of the BIS 
? The primary system should contain the following components/modules and 
should be integrated and supported by workflow: 
? Letting (houses, commercial real estate, housing distribution/allocation) 
? Relation management (marketing, client contacts, client questions/profiles, 
(social) complaints registration) 
? Maintenance (change of tenant, repairs, planned maintenance) 
? Financial management (debtors, housing portfolio, loans/treasury) 
? Management information (statistical info, (key) indicators) 
? Strategic portfolio management (development, purchase, selling, renovation) 
? Services (development of new products and services) 
 
3. Overview of subsystems 
? Relation info system (tenants, buyer of services, tenant committees, 
contractors, etc.) 
? Performance agreements (spheres of government and tenant committees) 
? Complex/unit info system (including material lists and drawings, pictures, floor 
plans and maintenance data) 
? Warehouse info system 
? Social complaints info system 
? Planned maintenance and budget info system 
? Maintenance info system (including work orders, schedule of rates, facilities 
for inspections and works) 
? Area info system 
? Strategic housing portfolio info system (including financial scenario modelling) 
? Project development info system 
? Project realization info system 
? Services info system (including arrears management) 
? Contract info system (tenants and suppliers) 
? Rent price info system 
? Subsidy info system 
? Service charges info system 
? Turn over/transaction info system (termination of rental agreement) 
? Financial administration info system (ledger and accounting) 
? Financial administration info system (remaining debtors) 
? Financial administration info system (liabilities/obligations/creditors) 
? Cash and bank info system 
? Fixed assets info system 
 
 
  Page 185 of 200 
 
? Budget info system 
? Loans/investment info system 
? Treasury info system 
? Financial analysis and simulation 
? Management accounting/information. 
 
Of each subsystem the purpose, the input, the functionalities, the authorization and 
output will have to be determined.  
 
 
 
  Page 186 of 200 
 
 
Appendix G - Evaluation Model - Rating Scales 
 
 
 
 
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Appendix H   - References 
 
1 A Social Housing Policy for South Africa. Towards an enabling 
environment for Social Housing development, 2004, Department of 
Housing 2004 Revised draft 
2 A Study to Investigate the Impact of Requirements Instability 
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Software Engineering Notes, May 2004 Volume 29 Number 4 
http://portal.acm.org/citation.cfm?id=986727&CFID=11111111&CFTOKE
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3 Annotated Bibliography of COTS Software Evaluation 
Software Engineering Institute, Carnegie Mellon University 
http://www.sei.cmu.edu/cbs/papers/eval_bib.html 
4 ANSI/IEEE Std 1471-2000 and TOGAF 
http://www.opengroup.org/architecture/ 
5 Breaking New Ground, 2004, National Department of Housing, p23. 
 Chang, RY, and Niedzwiecki, ME., 1993, Continuous Improvement 
Tools, Volume 1, Kogan Page Ltd. London 
6 
 
Cook, Hunsaker & Coffey, 1997, Management and Organizational, 
Irwin/McGraw Hill 
7 Curriculum Framework Progress Maps ? Technology and 
Enterprise, 2005, Curriculum Council, Western Australia, 
www.curriculum.wa.edu.au 
8 Forman, EH., Saaty, TL., Selly, MA. & Waldom, R, 1990, Expert 
Choice. McLean, VA: Decision Support Software 
9 Friend, John, 1992, New directions in software for strategic choice, 
European Journal of Operational Research, pg 154-164.  
10 Friend, JK. & Hickling, A., 1987, Planning Under pressure: the Strategic 
Choice Approach, Pergamon (Urban and Regional Planning Series, 
Volume 37). Oxford. 
11 Goodlad. R, 1996, The Housing Challenge in South Africa, Routledge, 
Pg 1629-1646 
12 Housing Code 
http://www.housing.gov.za/content/housing_code/part1/chapter3a.htm 
  
 
 
  Page 198 of 200 
 
13 Housing Strategy, 
http://www.housing.gov.za/Content/Strategic%20Statement.htm#Strategi
 c%20Objectives 
14 IFCA Property Plus ? Financials - product brochure 
www.ifca.cc 
15 Information Systems and Business Agility: MBA Research Report, 
Wits Business School, University of the Witwatersrand 
16 Institute for Manufacturing, Department of Engineering, University of 
Cambridge, www.ifm.eng.cam.ac.uk 
17 Leedy. P, 1997, Practical Research, Planning and Design. 6th Edition. 
Merrill 
18 Levin. R. I, 1984, Statistics for Management, Prentice-Hall, New Jersey. 
(Prentice-hall International Series in Management)    
19 Lewin. K, 1951, Field Theory in Social Science, Harper and Row, New 
York. 
20 Mackay, C.J, 1999, Housing Policy in South Africa. The Challenge of 
Delivery, Routledge, Pg 387-399 
21 Manifesto for Agile Software Development 
http://www.agilemanifesto.org/ 
22 Maslen R, Platts K.W, 1994, Force Field Analysis: University of 
Cambridge, June, pp.587-588.  
23 Mason RO, Mitroff II, 1981, Challenging Strategic Planning 
Assumptions: theory, cases and techniques, New York, Wiley. 
24 Mouton. J, 2003, How to succeed in your Master?s and Doctoral Studies, 
Van Schaik 
25 Naked Objects 
http://www.nakedobjects.org/static.php?content=content.html 
26 NEC, Open Mission Critical Systems: Five Requirements for Business 
Agility, 
http://www.sw.nec.co.jp/english/omcs/overview/01/overview01_04.html 
27 O?Brien & Marakas, 2001, Management Information Systems ? 7th 
Edition 
28 Productinformatie WOCAS4all 
Centric IT Solutions 
29 Research Methodology, 2003, Construction Economics, University of 
the Witwatersrand 
 
 
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30 Saaty TL, 1980, The Analytic Hierarchy Process, NY, McGraw Hill.  
31 Sx3 Architecture 
http://www.sx3.com/Application%20Solutions/Housing/SystemControl.asp  
32 Scavo. F, Key Advantage of Open Source is Not Cost Savings. 
http://www.computereconomics.com/article.cfm?id=1043 
33 Slack, N, 1994, The Importance-Performance Matrix as a Determinant of 
Improvement Priority, Int. J. of operations and production Management, 
Vol. 14, No. 5, pp 59-75 
34 Software Engineering Institute: Commercial-Off-The-Shelf (COTS) 
Software: Five Key Implications for the System Architect 
http://www.softwaretechnews.com/technews2-3/cots.html 
35 Software Evaluation Guide - Key Characteristics to Look for in a 
New Service Center Business System 
http://swguide.computerworld.com/cwsoftware/search/viewabstract/6434
 2/index.jsp 
36 Social Housing Foundation, 1998, Current Status of Social Housing in 
South Africa, Report to Housing 
37 Social Housing Policy Review, 2004, key issues. Version 12, 
Department of Housing 2004 
38 Tavana, M., Banerjee, S., 1995, Strategic Assessment Model (SAM) - A 
Multiple Criteria Decision-Support System for Evaluation of Strategic 
Alternatives, Decision Sciences, Vol. 26, No. 1, 119-143 
39 The Secret to Software Success 
http://www.cio.com/archive/070101/secret.html 
40 The Standish Group: CHAOS Research 
http://www.standishgroup.com/ 
41 Thomas. J,.1985, Force Field Analysis: A New Way to Evaluate Your 
Strategy, Long Range Planning, Vol. 18, No. 6, pp. 54-59 
42 TOGAF, The Open Group Architecture Framework, Version 8.1 
Enterprise Edition 
http://www.opengroup.org/architecture/ 
43 Tomlinson. M, 2001, New Housing Delivery Model, The Presidential Job 
Summit Housing Pilot, Pg 2 
44 Which ERP Applications are currently in use or will be used at your 
company? http://mysql.mirror.luxadmin.org/tech-
 resources/quickpolls/erp-applications.html 
 
 
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