Enterprise Applications Program Review

1
Enterprise Applications Program Review
Modernizing the Commonwealths Administrative
Processes and Systems

• ITIB
• July 19, 2007
• Peggy.Feldmann_at_governor.virginia.gov

2
Executive Summary

• At the April 2007 ITIB, the following questions
  were asked
• What is the vision for EA?
• What revenues will be spent after the planning
  dollars are expended?
• What value have you achieved so far?

3
What is the Vision for EA?

• Program (based on projects) to provide the
  Commonwealth with modern, effective and efficient
  business processes and systems
• Data Centric vice Application Centric
• Near term focus on Financials business processes
• Performance Budgeting
• Financial Management
• Common Reporting tools
• Data Consolidation
• Long term, continuous upgrades of the systems

4
Enterprise Applications Objective
5
CoVA Enterprise Programs (Future State)
Agencies
Service Center
Service Center
Service Center
Service Center
CoVA Business Applications Center of
Excellence (Functional and Technical Expertise
within the Commonwealth)
Contractor support to supplement CoVA team
Benefits Streams will support the Life Cycle
Costs of the EA Program
Mandates
6
What Revenues will be Spent after the Planning
Dollars are Expended?

• Benefits / Revenue Stream
• Stand alone projects that can be accomplished
  within the Working Capital Advance (Line of
  Credit)
• Projects that can spiral to the larger
  Enterprise
• Possibilities Budgeting, reporting, portals
• Projects that will lower the FM ERP risk
• Long term maintenance of the EA program

• General Assembly
• Complete FM ERP planning phase in April 2008
• No scope change, complete PMD requirements for
  entrance
• into development phase
• Coincide with the consideration of the
  2008-2010 Biannual Budget
• Determine if sufficient dollars are available
  for successful development

7
EA Projects and Benefits Timeline
Jun 2009
Oct 2007
Jan 2009
Jan 2007
Jul 2007
Jan 2008
Jun 2008
Apr 2008
Sign Recoveries Agreement
Recoveries Checkpoint
Recoveries Checkpoint
Recoveries Checkpoint
GA in Session
Oct 2007
Jan 2008
Apr 2008
Jul 2007
Future TBD Milestones
Jan 2007
Planning Phase
Projects Development Phase
Priorities And costs
Benefits Projects Authorized
Business Cases Signed
Jul 07 ITIB Vision / Strategy High level
Concepts Authorization to continue planning
OCT 07 ITIB Projects priorities and costs Project
Milestones Planning Status
JAN 08 ITIB Authorization for projects within
Working Capital Advance
Apr 08 ITIB Spiral Status
8
FM ERP Planning Timeline
General Assembly - 11M for EA Planning
General Assembly funding for FM ERP Development
FY08 - 5.5M
FY07 - 5.5M
Dec 2006
Jul 2007
Jan 2008
Jun 2008
Dec 2008
Jun 2009
GA in Session
Dec 2008
Oct 2007
Jan 2008
Apr 2008
Jul 2007
Jun 2009
Jan 2007
Planning Phase
FM ERP Development Phase
FM ERP costs fine tuned
SW Integrator RFP proposals Out / In
3rd Party Cost Estimate
FM ERP Authorized
FM ERP Planning complete
Jul 07 ITIB Vision / Strategy Status Authorization
to continue planning
OCT 07 ITIB 3rd party Estimate Planning Status
JAN 08 ITIB Planning Status
Apr 08 ITIB Funds available for development FM
ERP authorization
RFP
9
What value have you achieved so far?

• Business Processes
• Planning Framework
• Requirements
• Process Improvements
• Organizational changes

Commonwealth
FY08
FY07

• Technical Planning
• Conversion
• Interfaces
• Data Management
• Infrastructure

FY08
FY07
10
FY07 EA Planning (ITIB Approval for Planning to
June 30, 2007)

• Change Management
• Change Management Plan
• Stakeholders matrix development
• Change Impact Survey
• Facilitator training for functional validation
• Implementation training strategy
• Project Management Office
• Project plan
• Project management methodology
• Deliverables/work products repository
• Risk management and issue resolution process
• Data Gathering
• Lessons learned from our research
• RFP process
• Agency interactions and requirements
• Agency phasing data

• Functional
• 8 Future State Business Process documents
• To-be business process flows
• Detailed business requirements
• Draft Business Process Improvements
• Procurement Assessment / Industry Best Practices
• Enterprise Wide Participation
• 30 Core team members from across the state
• 43 Agencies participating in validation workshops
• Over 120 agency staff validation future state
  documents via workshops
• Technical
• Current state systems architecture
• Current state interfaces (integration)
• High level conversion requirements
• Future State Architecture (conceptual model)
• Business Intelligence model / approach
• Database, data warehouse data store

AR Example
11
FY08 EA Planning

• Change Management and Communications
• Policy and Legislative Actions
• Continued stakeholder management through
  leadership action plans
• Change management preparation and training
• Solutions training plan through multiple delivery
  means--classroom, self-study, Web
• Populate and maintain an informative and
  interactive program Web site
• Communication outreach efforts
• Project Management Office
• FM SW / Implementation RFP execution
• Performance Budget implementation plan
• Risk and Issues Management
• Work Plan Management
• Data Gathering
• Agency interactions and requirements
• Lessons learned research

• Functional
• QA 8 Future State Business Process document
• QA Agency data and reporting requirements
• Enterprise wide participation
• Business Process Improvements Impacts
• FM SW / Implementation RFP evaluations
• Data Cataloging and Reporting Plan
• Technical
• Future state technical architecture
• Future state application architecture,
  requirements costs
• Future state integration architecture,
  requirements costs
• Future state business intelligence architecture,
  requirements costs
• Database, data warehouse data store
• Reporting
• Future state conversion requirements/costs
• Technical training plan
• Legacy disposition plan

12
Request Approval of FY08 Budget
FY07 Budget
Motion
Detailed FY08 Budget
13
Hyperlinks
14
Application Centric to Data Centric
App
data
App
Reports
CoVA Data
data
data
App
App
Moving to
data
App
App
App
App
data
data
data
Reports
Application Centric
Data Centric
15

Performance

• Current Effort
• Budget
• All Agencies
• Financial Management Phase 1
• All CARS users
• VITA, VEC, VDOT, DGS,DOA

16
Future State Documents

• Functional blue prints for the future state
• Define improved business processes
• Outline organizational structure to support the
  processes
• Identify functional software solution
  requirements

Functional Business Areas
Performance Budgeting General Accounting Cost
Accounting Accounts Payable
Accounts Receivable Purchasing Fixed Assets Time
and Attendance
17
Future State Documents

• Guiding principles used in the development
• Incorporate best business practices
• Look for opportunities to gain efficiency and
  effectiveness
• Ensure business needs are met
• Challenge status quo
• Ensure adequate internal controls remain in place
• Take advantage of technology
• Workflow
• Security
• Consolidation opportunities

18
Future State Documents

• Validation (Internal)
• Build in direction/vision from the Commonwealth
  business owners
• Obtain input/verification from the Commonwealth
  subject matter experts
• Incorporate feedback from consulting experts
• Ensure process integration across business areas
• Employ lessons learned from other similar
  initiatives
• Reconcile against proven best business
  practices
• Validation (External)
• The Hackett Group (Best Practices)
• Forrester (Procurement (eVA) study on
  integration)
• Gartner (Total Cost Ownership, Maintenance
  strategies)
• Other States Lessons Learned
• Ohio, Florida, Pennsylvania, New York, Tennessee
• North Highland (IVV)

Validation is a continuous process!!!
.
19
FY 08 Functional Planning Areas
Enterprise Outreach July October 07
Workshops April May 07
Core Team January March 07
Judicial Branch
DOA VEC DHRM APA DPB
VDOT VITA DGS
Legislative Branch
33 Participants Across 7 agencies
120 Participants Across 43 agencies
Remaining Executive Branch Agencies

• Refine Future State Business Process documents
• Enterprise wide participation
• FM SW / Implementation RFP evaluations
• Business Process Improvements Impacts
• Data Cataloging and Reporting Plan

20
COTS Procurement

• RFP 2007-17 cancelled on May 25
• Procurement Scope Change
• Team agreed with VITA Supply Chain Management
  (SCM) that expanding the scope to incorporate
  Fit/Gap and other related activity would be in
  the Commonwealths best interest
• Currently discussions underway with VITA SCM on
  ERP RFP way forward
• Financials application (software and
  implementation)
• Options

21
Current Technical State

• Manual, inefficient and redundant business
  processes
• Approaching end-of-life supportability
• Limited (or no) business intelligence (reporting)
  capability
• Lacks enterprise capability (workflow,
  integration, analysis)
• Application Centric

Financial Management
CARS
FAACS
CIPPS
Metafile (Client) Reportline (Web) Mantissa
(Mainframe)
FINDS
Budgeting
22
Current State Financial Management and
BudgetInterfaces

• 409 Interfaces
• 261 involve manual intervention (64)
• 148 fully automated (36)
• 316 are flat files
• Over 80 identified as unnecessary with an ERP
  (and growing)
• Many interfaces are in support of a reporting
  requirement
• Current transfer methods include email, FTP,
  magnetic tape, database to database
• Current file formats include text, Excel, Access,
  paper

23
Current State Financial Management Reports

• Tools in use today vary by agency, but include
• EasyTrieve - MS Analytical Service
• nVision - Crystal
• Mantissa - Viador
• Cognos - Business Objects
• SQR
• Requirements gathering underway
• Analysis in August

24
Current State Financial Management and Budgeting
Tools (DOA, DPB, DGS, VEC, VDOT VITA )
4
Denotes transitional / contained technology
Denotes obsolescent / rejected technology
ITRM Standard EA225-00
25
Future Technical State

• Standardization reduced reporting and analysis
  costs
• Increased control lower operational expenses
• Improved service delivery increases customer
  satisfaction
• Data Centric

ERP Transactional Engine
DB
BI Tool
BI Tool
Data Store
Data Warehouse
26
Current vs Future State Comparison
27
Technical Architecture Conceptual Model Diagram
Enterprise Security
Business Process Integration
Infrastructure Services
Identity Management
Content Management
Presentation
Internal/External Systems and Data Sources
Process Server
Search
COTS Apps
Legacy Apps
BI
Specialized Apps
Business Transformation Methodologies
End Users
ERP
Platform, Tools
FM
PB
Development Framework
ERP
SCM
HR
ADMIN
External Interfaces
Self Service
Enterprise Service Bus
Integrated Data View
External Data Sources
Business Intelligence Data Repository
Enterprise Data Repository
System Management
Hardware and Software Platform
28
Technical Architecture Implementation Model
Diagram
Corporate Data Center
Enterprise Servers
Data Warehouse
Policy Server
Polling Correlation Aggregation Root Cause
Analysis
Auto Tape Storage
Real Time Server
Border Security (DMZ)
System Monitoring
Data Storage
Backup and Recovery
29
Application vs. Data Centric
Old Application Centric
New Data Centric
Financial Management
ERP Transactional Engine
CARS
FAACS
DB
CIPPS
BI Tool
Metafile (Client) Reportline (Web) Mantissa
(Mainframe)
BI Tool
FINDS
Data Store
Budgeting
Data Warehouse
30
FY 07 Change Management and Communications
Planning Area

• Change Management Plan
• Change Impact Assessment
• Stakeholder Map
• Communications
• Training Strategy
• Facilitator training

31
Change Readiness Assessment

• Focus group exercises with Future State Business
  Process workshop teams
• Leadership interviews
• Change readiness survey of Phase 1 users
• Agency information review
• Agency focus groups

32
Stakeholder Engagement Matrix

• Type of influence
• Needs and expectations
• Success criteria
• Key challenges, issues, or concerns
• Risk if not addressed
• Level of interest (low, medium, high)
• Action required, when, and by whom
• Status and action taken

33
Communications

• Message development
• Audience analysis
• Delivery methods
• Name, logo, and tag line
• Web site

34
Training

• Comprehensive training plan
• Influenced by software solution selected
• Agency information review

35
Enterprise Standards and Mandates

• From an Enterprise perspective, standardization
  and mandated processes and tools benefit the
  Commonwealth
•  

• Direct benefits of standards
• Reduced project costs
• Reduced technical infrastructure costs
• Greater leverage with vendors
• Reduced reconciliation costs
•  

• Indirect benefits of standards
• Higher end-user acceptance
• Greater IT user satisfaction
• Better use of the application
• Better data analysis
•  

• EA program will mandate the enterprise standard
• CIO will execute the toolset standards
• Business owners will execute the process
  standards
•  

36
Revenues for the EA Program

• A number of CGI initiatives have been discussed
  to generate resources for the EA Program
• Enhanced Tax Collection is the most viable
  revenue stream at this time
• Two possible candidates are
• Spend Management Initiatives
• Revenue Reimbursement Initiatives

37
Enhanced Tax Recoveries
Year 1 Year 2 Year 3 Year 4
Year 5 Year 6 Year 7
Total Net Revenue
Current VATAX Net Baseline
Variance Above Baseline
Assumptions
1. Each Series is 230M in new tax
delinquencies 2. Payfile estimate and
Returns (2nds) derived from accounts now in
repayment, those not in repayment returned to VA
Tax to be reworked as 2nd placements 3.
Uncollectible pool contains 310M in accounts
designated presently as uncollectible per
VATAX 4. Project year 1 begins March 1,
2007 (this is flexible) 5. Current
VATAX Net Baseline calculated as 39.8M gross
collections minus 14.5 average fee per
VATAX 6. Servicing fee at 20 for
Series I through VII, 22 for Returns (2nds), and
35 for Uncollectible Accounts 7.
Liquidation rates of 21.6 for Series I and II,
25.0 Series III through VII, 6 for Returns
(2nds), and 3 for Uncollectible