BusinessTechnology Level Set

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Business/Technology Level Set Horizon Scan
Information Technology Investment Board June 1,
2004
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Todays Topics

• Commonwealth Business Planning
• The Vision That Drives Us
• VITAs Long-Term Goals
• Scanning the Road Ahead
• Plan for remainder of transition period
• Financial goals
• Short-termQuick Wins
• Long-term--Transformation
• ITIB Strategic Discussions
• Well cover that at the planning session

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Commonwealth Business Planning

• Historically focused at agency level
• Council on Virginias Future
• Established by 2003 General Assembly
• Chaired by Governor members from legislature,
  private sector, cabinet
• Charges
• Develop Roadmap for Virginias Future
• Establish scorecards to track progress

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Council on Virginias Future--Vision

• Be the best managed state
• Outstanding financial management
• Open and accountable government
• Long-range planning/performance management
• High quality workforce
• Effective information systems management

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Governors 2004-05 Objectives

• Virginia ExcelsBest-Managed State Initiative

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The Vision That Drives Us

• Create value
• Improve the Commonwealth's competitive position
• Create accountability for how public funds are
  spent on technology
• Grow our employees
• Serve as the model for customer-
  citizen-centric government

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State/Local New IT Strategies
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VITAs Long-Term Goals

• Ingrain the build once, use many times approach
  to service improvement.
• Be the catalyst for customer citizen-centric
  state business transformations.
• Continually demonstrate improved service and
  savings benefits for citizens, customers, and
  taxpayers.
• Achieve true transparency as the states IT
  utility.
• Become the model of IT excellence in government.

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Measuring VITAs SuccessProspective Metrics

• 90 state services available electronically
• 75 citizen response--technology delivers
  services effectively
• Top 10 ranking in Digital State Survey
• 100 replacement of legacy administrative/finance
  systems
• --From the Council on Virginias Future
• Best Managed State Vision Team
• Draft Report

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The Road Ahead--Transition

• Short-term
• July 1Medium agencies/VDOT
• Quick Wins process underway, organizing teams
  to pursue
• Large agencies by January 1
• Long-term
• PPEA process continues through 2004
• Published attributes frame initiatives
  prospective partnerships
• Posting June 1, 2004

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The Road Ahead--Financial

• Short-TermQuick Wins
• Process
• Targets
• Potential Value
• Long-TermTransformation
• Process
• Targets
• Potential Value

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FY05 Savings Investment Analysis

• Identified FY05 cost savings opportunities and
  candidate investment opportunities with long-term
  savings potential.
• Analyzed opportunities using the following
  criteria
• Size and timing of savings
• Contribution towards VITAs goal to transform
  integrate
• Ease of execution
• Selected and ranked opportunities

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FY05 Savings Investment Highlights

• Cost savings are projected savings using
  currently available information.
• Cost savings opportunity portfolio is dynamic and
  is managed on an ongoing basis.
• Creation of VITA enabled 13 of 15 FY05 cost
  savings opportunities.
• 75 of the cost savings projects are not hard to
  implement.
• FY05 investment projects can provide significant
  long-term savings.
• FY06 estimated savings can significantly exceed
  FY05 estimated savings.

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Comparison of Selected Opportunities
Mainframe Upgrades
ImagePort Broadcast Fax
Local Phone Service Consolidation
Easy
Small Server Consolidation
Relocate 411 to Richmond Plaza
Offsite Storage Contracts Consolidation
Standard Core Desktop Bulk Licensing
Operations Automation Production Control
Migrate Customers to CoVaNet
Board of Elections Lines Consolidation
Contractor Conversions
Level of Difficulty
Restructure Operations Shifts Coverage
Relocate/ Consolidate Mainframe Print Site
VITA Host Web Based Business Licensing
Applications
Oracle Financials Application Consoli-dation
Hard
Low
High
Achieves Consolidation Future Positioning
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Savings Summary FY05 Opportunities
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Investments for Future Savings
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Project Sequencing
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Strategic Savings Opportunities

• Major Re-engineering Initiatives
• State-of-the-art Data Center with disaster backup
• Enterprise Desktop Management
• Enterprise Messaging
• Enterprise Customer Care Center
• Electronic Government Business Transformation
• Comprehensive Statewide Network Services
• Enterprise Systems, Process, and Application
  Management
• gtestimated total 100M - 165M savings
  over 6 yearslt

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Total Savings By Category Year
(Thousands)
6-Yr Baseline Benefit
(Thousands)
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Cumulative Savings By Year
(Thousands)
(Thousands)
Note total includes both savings and cost
avoidance.
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ITIB Strategic Discussions

• What is the Boards thinking on strategic vs.
  operational roles?
• What is the relationship of Board initiatives to
  Virginias Roadmap for the Future?
• How can the Board be more proactive in setting
  the strategic direction for enterprise systems?

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Strategic Issues for the ITIB (contd)

• How can agencies business leadership (not just
  IT) be collaboratively engaged?
• What solutions can be pursued for under-funded
  oversight responsibilities in project management
  and security?

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Well cover that at the planning session.

• Role/positioning of VITA internal auditor
• No layoffs policy/implications
• Facilitating funding for agency-specific IT
  projects (PPEAs, bonds, loans, etc.)
• Board operations best practices
• Frequency of Board meetings

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Revised slides follow..

• Following are slides modified 6/8 per Lems
  request

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Savings and Avoidance by Year
(Thousands)
(Thousands)
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Total Savings By Category Year
(Thousands)
6-Yr Baseline Benefit
(Thousands)
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Cost Savings and Avoidance
(Thousands)
Savings 2,968 8,175 35,662
52,149 57,025 57,425
56,648 Avoidance 9,788 25,472
33,320 39,977 45,052 45,127
45,202 Total 12,756 33,647
68,982 92,126 102,077
102,552 101,850 Cumulative 12,756
46,403 115,385 207,511 309,588
412,140 513,990
(Thousands)